Here is the goal statement I established in 2002. It worked for me then and every year since. This goal statement will still be valid five or ten years from now.
My annual goal is to increase my net worth by 5% over the previous year.
Since I am primarily a landlord, investing in rental property, objectives that will help me achieve this goal are:
- Reduce debt.- Increase Cash Flow.
Some actions that I might consider in reaching my objectives are:
- Make extra principal reduction payments each month, - Use 1031 exchange to improve the quality of my portfolio when an exchange will increase my equity position,- Acquire more rental property, - Refinance current debt to lower debt service,- Increase rents, and, - Take proactive steps to reduce vacancy rate.
As I look at where I am today, and what I can do immediately to accomplish my objectives, success may in part depend upon my ability to acquire property below market and to finance it quickly. The buyer likely secures the best acquisition opportunities when he has the ability to quickly bring cash to the deal. To gain this ability, I plan to secure a working line of credit then renew it annually.
During the coming year, I will increase rents as leases come up for renewal, and, attention to tenant relation’s activities will hopefully reduce my turnover. Excess cash flow will be applied to principal reduction.