BiggerPockets

Beginning With The End In Mind

Everyone knows how important goals are and how they should be written and read daily. The problem is that most goals are not detailed and long term enough.

Everyone should sit down this week and make their end goals. How will your life look 20 years from now? How many rental properties will you own? What will you be worth? What type of lifestyle will you enjoy?

For example, do you want to own 20 properties free and clear that generate at least $20,000 a month in passive income? Everyone should have the goal of generating passive income as an end goal. You don't want to be 80 years old having to flip properties, or do lease options. Instead, all you should want is to have to walk to your mail box on the first of the month and collect your $20,000.

So if you want to own 20 properties free and clear how do you do that? There are several options to achieve this goal.

1. Buy one house a year for the next 20 years. Pay down the mortgages on these houses from the money you make from wholesaling and lease options. (This is very easy and a conservative approach.)
2. Buy two houses a year for the next 20 years, so you will own a total of 40 properties. After the 20 years is up, sell off 20 of your houses and pay off the mortgages of the 20 you plan to keep.
3. Buy 20 houses in one year via subject-to and other creative means. Hold onto these houses forever and never purchase another buy and hold property again. Pay down the houses from your other deals.

In addition to the lifestyle this will provide you, think of the legacy you will be able to leave to your families. So please make your 20 year goals and start buying and holding properties because that is the key to true wealth.

By the way, two of the best books every written on buying and holding real estate are David Shumacher's "Buy and Hold: Seven Steps To a Real Estate Fortune" and John Schaub's "Building Wealth One House At a Time."

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