The Power of Having a Vision and Asking What and Why

I will start by saying that this may be an odd post.. but I am going to put this up as I feel the ideas have had a major impact in my life and I hope they can for others. 

Life is a precarious thing. I have seen it yield me experiences where I have had to pinch myself to know if what was happening was real. There also that times where I have sat in my living room staring at the coffee table wondering what the hell I am doing with my life. For me, life's experiences come in ebbs and flows. But as of lately, I have noticed that the more pressure, and consistant focused pressure I have put on achieving the things I want to achieve the more I end up having to pinch myself(thats a good thing).

Some who read this(if anyone does) may have read my post on being 22, and building my portfolio to 20 units in just 10 months. Needless to say it has been a roller coaster of a ride, but it didn't just happen out of dumb luck. It was deliberate and thought through. My steps I have taken to mentally approach my life, and investing can be summed up in the following. 

1. Have a vision of what you want your life to be. 

I know exactly what I want to be in my life in the next 3 years, 5 years, and 10 years. Obviously my path will take some gnarly twists and turns but there are some distinct things that at this point in my life, I believe I need to have if I am to feel like I am getting the most out of this blue planet and the precious thing we call life. Ill try to paint a picture for you. 

- I want to be on the water. I want to spend my days exercising by swimming, cliff jumping, and paddle boarding. These things are a part of my life now, but my day job pulls me away from having them be a daily activity for me. 

- Sailing will be a priority in my life. I want to regularly leave on one week, 3 week, and the occasional extended 2 to 4 month cruise each year. I have been blessed to have opportunities to experience sailing in so many ways that I understand I never really feel totally like me until I am on the water chasing the horizon. 

- I want to be surrounded by friends and family. I want to go racing with the local yacht club followed with food, drinks, and relaxing by the water telling stories and appreciating the good things around us. 

- I want to know that my work matters. I want what I have worked to build to employ people, help people profit from my work, and make a positive difference in my community. It doesn't need to be life changing but it needs to be a positive influencer in the network around me. 

- I want to be able to give back. This can be through scholarships, providing money for parks or other unique projects. I want to work with schools to help others understand that their own potential is only limited by their mindset. 

- I want to feel like I am in control of my life and that I am living a life of adventure. When I am confined to a cubical and provided with only 2 weeks of time off to do as I please I feel like I am locked behind bars. Its restricting.

So I have these clear visions of things in my life that I want. At my 3 year, 5 year, and 10 year marker I have income goals that I want to achieve. So I begin asking my why and what questions. They help me to narrow my focus and define how I will achieve my goals. 

What: What do you want to do to make your money in life. 

Answer: I wan to own a business. 

Why:  Why do you want to own a business?

Answer: CashFlow Quadrant can explain this reasoning in detail.

What: What type of business do you want to own?

Answer: Real Estate

Why: Why do you want own a real estate business?

Answer: I have prior experience in real estate, have a strong passion for design, renovation, and new construction projects. Its also a business that you can make money owning one home, vs. owning 1000's of homes, or sky scrapers. You can get to billionaire status or stay small if you choose. 

What: What type of real estate business?

Answer: A buy and hold investment company. 

Why: Why a buy and hold investment company?

Answer: I want to to build long term wealth and create a business that allows me to make money even when I am not managing the day to day operations. 

What: What type of buy and hold investing?

Answer: Multi family properties

Why: Why multi family

Answer: It allows me to scale my assets faster then single family homes so over time my payout is greater. I also want to be in residential vs. commercial space due to my familiarity with renting residential space. 

What: What market do I want to invest in?

Answer: Marquette MI, and Iron Mountain to start. 

Why: Why these markets?

Answer: It will allow me to call the UP a home base for my investing and always tie me back to the area which I love. The economies are small enough that large scale investors dont focus on these markets keeping the competition only local. The economies are diverse enough that any economic down turn typically wont devastate the area. 

Other questions I ask. 

What neighborhoods. What amenities. What property. What sellers am I targeting. What financing structure. What systems will I put in place. 

This is a very laborious process at times given the what question often requires lots of research. The why question forces you to always tie back to your vision for you life. The goal is that by the end of the process you can take action by developing your how questions to make your vision a reality. 

Maybe everyone already knew this, but I can tell you I didnt get it when I first started my journey. To close my latest deal I was questioned by bankers, and investors on all of these questions. Having gone through the activity myself meant that I showed I was prepared and being very deliberate in my choices.