Newbie here looking for some guidelines for goal setting.
The notion of goal setting has come up in my reading here, other forums, and books on the subject. They all stress the importance of goal setting and some have examples of how to build backwards from an overall goal to a monthly goal etc. My problem is that I don't have a grasp on a reasonable range for goal setting....is $3k per month cash flow reasonable? $10k/month? $500k over a lifetime? $2M? When I start to think about where my goals might fit in or what is reasonable to expect, I get overwhelmed. So, I guess I'm looking for some guidelines to get the process started.
A little about myself to help the process. My wife and would like our investments to eventually become a full time job for her along with a $80-100k yearly income. Our current starting capital is $0, though she makes $45k/yr and I'll be making $90-110k/yr in a two years. Please don't hesitate to ask for more info on anything....I'm expecting to learn quite a bit about goal setting through picking this example apart. Hopefull, it'll be helpful to others in the same shoes too.
Goal setting is like drawing the route of a treasure map, from where you are today to where you want to be in the future.
Before going on the treasure hunt, you'll need to look your current resources. Meaning:
What knowledge and experiences do you have about the journey you want to take? (In the beginning, most likely none. That's the starting point of most people!)
How can you acquire the knowledge needed?
Who do know that possess the knowledge needed?
What can you offer in exchange of the knowledge needed? (That's call partnering!)
Then, you need to determine as many events (also known as milestones) as possible needed to happen before you can get to your final goal. (They help us track our progress and keep us on track.)
Try to estimate the time needed to accomplish the very first event. (When achieved, estimate the next one, and repeat the process!) You can't really estimate the time needed for the final event (We all try!)
And don't be too hard on you if your estimations are not right! (Either you took longer or less!) What matters is that you achieved it or that you're working toward achieving it!
No matter how longer it takes, when you achieve a milestone event, it feels great knowing that you are closer to your goal than before! (And you usually become an inspiration to someone watching you go through the process.)
I hope this help! Even if luck has little to do with things. Good luck on your journey!
I am in a similar situation with similar numbers. I will be watching this thread. Good luck to you.
@Travis White ...I'm detailed oriented, so setting goals is priority.
1. Write them down(a plan)
2. View them everyday(can share with others for accountability) I'm careful who I share them with
3. Take steps to execute..(research properties,call realtors, network with other investor,attend classes, etc)
This works for professional and personal goals..You will find your motivation while taking action. I don't have it all figured out but I make the most of every day!!!.It's amazing how it keeps flowing!!!
Often an initial goal is to replace one's income. Once you identify the dollar amount you review the steps needed to get you there.
In apts you target $100 a month per unit. If your goal is 10K a month cashflow then you need 100 units, if investors get 50% then you need 200 units.
Goals are something you shoot for. Plans are something that get executed.
@Pierre Thernize - Thanks for all the encouragement in your post! The focus on knowledge acquisition and developing skills/abilities that I can bring to the table was helpful to hear. Being in a position where I'm not ready to purchase anything right now, its good to hear that research/learning/preperation are valuable and important parts of the process...makes me feel less like I'm spinning my wheels!
Account Closed - This is the type of number I've been looking for. I know it's just a rough estimate, but that helps me to get an idea of what's possible, or, to ballpark what I'll need to own to get to where I wanna be.
Is there a similar ballpark number for flipping properties? My wife and I may be moving in the next five years, so we're kicking around the pros and cons of multis vs. flips. I feel like I can use the $100/unit to mock up a rough strategy for multis....is there anything like that for flips?
Cashflow provides a set income coming in month after month after doing the work once.
Flipping once you cash out you don't get anymore cash coming in till the next one is done. Depending on the area of country flippers will target 30K +
I don't have any great answer, but I would try not to overanalyze it. What sounds like a good goal? Or better yet, what are you trying to achieve? Do you want financial freedom, or an Aston Martin or to travel the world or just provide for your family? Figure out what you want, then work backwards. What do you need to get there? Then, what is the least amount of time you could reasonably get there. Once you've done that, you basically have your goals.
Thanks again Account Closed , I feel like using those basic building blocks I can start to put together what I'd want a month, a year, five years to look like in a very rough way.
We always put down all materialistic and non materialistic goals on paper with a very short time frame to achieve them.
if you walked into our office you would think its a scene with Russell Crowe from the "Beautiful Mind" lollol
We never get disheartened if we don't hit these goals in the desired time frame. They are pretty much there to push us to do more, better and are the key driver to get up and go every morning.
Its a great journey and real estate is a huge passion for us. I believe we would still want to be involved even if no $$$ were involved.
Maybe my post triggers a few ideas.
Thanks for reading and have a great day.
I also started out less than a year ago. 20k in hand, and wanted to develop long-term passive income. My "WHY" dictated that I needed about $1k per year to reach a 3 year goal of 3k per year.
I basically ran through all the podcasts to soak up as much knowledge as possible in about 4 months. After that, my goals started taking better short and long term shape as I learned what tools I needed. So, I agree with the "don't overanalyze it" too much. Just set up the basics and outline the steps to get there. Clarity will come with action and experience!
"Move at the speed of instruction!"
I love real estate investing catch phrases.. After running though all those podcasts, I now listen to each one and try to perform at least one step I learn within that podcast before moving on.
Hope that helps!
My goal was 3 times my income before I would even consider letting my FT job go and retire, it was very scary!! But now I am out of the Matrix I feel like "Neo" I can make it happen, I am the ONE!!! LOL!!
Good Luck you will be fine!!
Hey Travis, just checking to see what did you end up doing? I mean did you started with some plans on paper or something or are you already investing?
So based on what Rafeal said is 3,000 to 5,000 cashflow per month a reasonable goal? Im just starting out like some of you guys and figured that this goal is achievable. Figured that with a time frame of six years I would have to earn 500 monthly cashflow more each year to reach minimum or 850 for max. Does this seem realistic or a pipe dream haha?
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!