MY 2013 AND 2014 GOALS AND WHAT I ACCOMPLISHED. NOW TELL ME HOW YOU DID!

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In reviewing my posted goals for 2013 and 2014 I have the following results.

2013 My goal was to buy a fix and flip and add 1-3 cash flowing rentals.  I bought a fix and flip in a nearby town that needed a lot of work.  It had one large and 1 small house on it.   The price was only $36K as it needed huge amounts of work.  I sold it in less than 2 months to another investor for $50K with no real work put into it.  I promptly bought a much nicer fix and flip that the work is going very slowly on due to it being about 35 miles away.  At this speed I will be lucky to get it on the market by 2015.  I did not add a rental in 2013.

    In 2014 I did pay off one nice rental but immediately did a line of credit against it and bought one rental house in Indiana and partnered on a fix and flip and one rental in Ohio.  The jury is still out on the fix and flip as it has not sold and has been on the market for 90 days.  I also bought a rental with a lot of potential to cash flow, but resold it to my handyman for a small profit (about net of $6K).  I then bought a property with one large 3 bedroom house and 2 small 1 bedroom houses on it (on my birthday).  Purchase price was $105,000.  I was able to rent the big house for $750 per month, and plan to have both small houses rented by the same tenant starting in October as her parents will move into those.  The 2 small houses will rent for a total of $750 which is slightly below market.  I am giving a price break in exchange for having only 1 renter rent all 3.  I was able to borrow the full purchase price by redoing a loan on another property that only had $17K owed on it.  The payments for the loan on all 4 houses is now $1030 per month and I will be getting $1500 on the new acquisition.  I am doing a rehab on the other house that I hope to have done by November and hope it will rent for around $600.  That house has been in the fix process for about 3 years.  Due to a very large number of turnovers and repairs I am at a standstill on acquiring more properties until I get all of my large repairs done and empty houses rehabbed and rented.  I had an additional private goal of trying to add 25 doors this year.  I don't think I will make that goal.  

Time to start thinking about 2015 goals.

Please let the rest of us know how you did on your 2013, and 2014 goals and what you plan for 2015.

I don't think I wrote my 2013 goals. I did write up my 2014 but its late and I'm using that as an excuse to not assess myself.

That being said, I've had some positive movement this year. I've started my own meetup group that has been growing since its beginning. At this point I've got to figure out how to get more seasoned pros on board attending the meetings. Its a lot of newbies at the moment. I found many local 'investors' in the area now and I have partnered with one on a rehab we just fixed up. I was only in my sweat equity and some 0% interest credit cards. It was an extremely extensive flip, and by extremely I mean intense. We fixed the foundation, installed new drain tile, new electrical and plumbing, new roof, siding, insulation throughout, new kitchen and bath, refinished original woodwork, new windows, I can keep going. We just sold it this week after a < 3 month flip. In my eyes it was successful. Together we also wholesaled two deals - waiting to close on that second one. I've got one deal currently under contract which will fall through unfortunately, but I'll be connecting the seller with another solution to his problem. I have started my marketing to probate leads and have developed systems for some of my marketing.

Its slow going but its movement forward.

My goal for 2014 is to finally jump in and try a fix and flip opportunity.  I'm in the process of trying to make an offer right now so here's to hoping everything works out! 

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Way to go @Steven J. and @Matt Riley .  I have found looking back helps put things in perspective and pushes you to keep your momentum up.  Thanks for sharing.

@Jerry W - I think you have done fantastic!  What a significant amount of experience gained in a .  If I remember right you are in an area of wyo where deals must be few and far, I think the out of state attempts you have made might be the best education available!  Congrats!

@Jerry W.   My 2013 goals were to get started with one rental, accomplished. 

My 2014 goals were higher. I planned on selling what was previously my residence, and investing in 4 rentals and begin flipping a few properties to increase seed money. That goal was a flop since that residence is just now scheduled to close in a few weeks. Life happens, and there are a number of reasons. Some within my control, most not. I added one rental, and have a flip almost completed. I expect to add a second rental for the year, and second flip minimum before end of year.

2015 goals: Add at least 4 new rentals.  Ramp up flip business by mid-year to get to at least one per month and continue building that side of the business, and therefore build rental inventory also. And most significant is to "retire" end of year. Or at least retire from my current job to be a full time investor, that is.

My 2013 was to find a new household in Washington (I had to move for my job ) that would eventually transtion to a rental; rent ou my old primary residence in Georgia, and rebuild my reserve / cash available that i used to put down a dopwn payment . Didnt get into specific REI goals since had a new job and would spend most of my time concentrating on taht.

 For 2014 .  it was to build up my cash reserves and look for invvestmetn opportunities;  also use teh excess flow from my other properties to pay down the mortgage on my 2nd rental; witht he goal of getting it paid off by the time i retire in 2015.  

  Have built up the my cash reserves again but put on hold the paying off teh mortgage on the rental.  the rate is only 5%, and with the balance left ($20K) think it would be a better use of the cash flow to build up a deposit for next investment preoprty than paying off old one.

In June of 2012 we bought land adjoining the land our home is on for a new 1/2 mile long driveway. It came with a house we didn't want. A friend asked if we were planning to rent it out and we weren't sure, but said we might. The next week the house he was living in sold, and he asked if he could rent ours. We became accidental landlords.

At about the same time we started thinking and talking about retirement. We came up with a landlord retirement plan. We set a goal of buying and renting 10 houses in 10 years and then we'd retire.

So in 2013 we bought, rehabbed & rented a house - barely! The lease was signed between Christmas & New Years. Goal for 2013 met.

For 2014 our goal was 2 houses.

House A we bought in February & we're still working on it. The goal is to finish before Thanksgiving.

House B we bought the last week of March. We spent 8 weeks doing extensive rehab and rented it right before Memorial Day.

House C we bought mid-June. It didn't need much work, but there were multiple delays. We have a deposit holding it, but no signed lease yet. We'll know by Monday if it's rented.

House D closed Wednesday. We need to put appliances in it, and that's about it. We've had two people ask about renting it already. It will be ready for move in by the 1st.

Two years into our 10 year plan and we're halfway to the finish line!

2014 

4 Rental properties by the end of 2014. (1/2 way)
Get MA Realtor License (done)
Flip one house

I got those from my profile page :)

Still 1/2 way on owning 4 rentals, but I'm set close on the 2 more that I need by mid november.

Flipping... maybe.  I may end up with a fix and hold (for #5) rather than a fix and flip.  We shall see.

2015 Goals:

Own 10 Rentals
Flip 2 Properties within 2015
Buy primary residence
Get VT Realtor License

Alright, I'll give this a go:

2013 goal: To finish the rehab on my condo so I could sell it (hopefully for a profit). - Done. I did make a nice profit and although closing took way too long, I did it.

2014 goal: To buy my first buy and hold rental unit. - Done and dusted. In fact, I"m midway through buying my second and closing should happen in 4-6 weeks.

2015 goal: To buy a third buy and hold rental unit. I'm saving up like a crazy person at the moment to be ready for at. - Watch this space...

@Jesse B. , thank you for the kind words.  I am not sure I was very wise in my out of state investing, but pretty lucky so far.  The educational curve has been huge.  I forgot one of my goals was to go visit Ohio and Indiana but got so busy on my local rentals I cannot possibly do it until winter and I don't want that.  Its funny I was so disgusted at no local opportunity that I went out of state, now at least 5 possible deals have popped up in my hometown but I am too busy and too cash poor to jump on any of them.  If I get my last 4 houses rented out and get my flip house in Worland buttoned down for the winter maybe I can take a breather.

@Walt Payne   those are big goals and it looks like you are going to meet them.  That is amazing.  What kind of financing did you use to get them?  Will you have to slow your acquisition schedule for 2015 because of lack of funds like me?

@Kenneth Hynes   good job and I like that you are already planning for another property in the very near future.  Have you considered making an offer or 2 on a house and asking the owner to carry 20% of the price on a note and 2nd mortgage at 2 or 3 %?  It would allow you purchase a 3rd property with nothing down.  Great job.

@Sylvia B. WOW at this rate you will complete you 10 year goal in only 3 years, and may exceed it.  How are you doing on cashflow?  I notice you talk about retiring in 10 years was that based on age or receiving income from 10 houses?  It is amazing how fast you turned one accidental landlord into 5 properties in 2 years.  What is your goal for next year?

@Jerry W.   I am doing something different from most. Partly because I can. Partly because I plan to semi-retire at the end of next year. 

Because I have a good cash base to start with I am building up a core set of 5 properties with no financing. Those will be my hedge against anything going wrong and they will provide expansion funding. When I get to the 6th, etc I will have cash flow (~$2500/month after reserves) from those plus profit from my flips. 

My son and nephew are working with us and saving their earnings to invest. Once they are going strong as partners and understand the business, my brother and I will turn the management over to them and find a nice beach to park ourselves on.

Originally posted by @Jerry W.:

@Kenneth Hynes   good job and I like that you are already planning for another property in the very near future.  Have you considered making an offer or 2 on a house and asking the owner to carry 20% of the price on a note and 2nd mortgage at 2 or 3 %?  It would allow you purchase a 3rd property with nothing down.  Great job.

 Jerry, would this mean the seller would get nothing down? Basically carrying the entire amount with no skin in the game from the buyer? Or a 20% note from the seller, and then a lender for the balance? How would a lender accept being in 2nd position with a borrowed down payment? I'm not familiar with this strategy but curious. Thanks.

I tend to set ambitious goals that really stretch me. They keep me out of my comfort zone.  My main real estate business is building spec homes, now.  It had been buy and hold until the last couple of years. 

At the beginning of this year (end of last year), I set a goal of building (starting) 25 spec homes over the next 18 months.  Wow, 9 months in already,  I have 6 starts so far with 4 essentially finished.  2  should be done in November-December. 

I have lots for 10 more. Should be able to start on 7 of the doors by first quarter of 2015.  3 more later in 2015.  That's 16, short of the 25.  I thought I'd have a higher density deal in there, but it hasn't happened, and they take a while in predevelopment. 

I've ramped up efforts to buy more lots, but it's blood sport to get the right dirt, at the right place, at the right price. 

With the length of the cycle, from looking for lots, to selling finished homes, being so long, I really need to think in terms of two year goals.  25 would be good over the next two year, if the market stays strong and I don't hit a wall somewhere else. 

@Jerry W.  

Great job accomplishing what you accomplished !

In 2014 I wanted to purchasing 5 rentals and find long term tenants on all. I was able to purchase 5 and have potential long term (2+ year) tenants in 3 of them. I also wanted to eliminate my debt on my primary mortgage. The good news is thanks to a small loan from my 401k it should be paid off next week freing up debt to income and $800/month less payments :)

In 2015 - I would like to purchase an additional 4 rentals with long term tenants and maybe flip a property to gain some cash to aid in the purchase of the 4 new properties. :)

Congrats again on your year and on the great thread

Originally posted by @Jerry W.:

@Sylvia B.WOW at this rate you will complete you 10 year goal in only 3 years, and may exceed it.  How are you doing on cashflow?  I notice you talk about retiring in 10 years was that based on age or receiving income from 10 houses?  It is amazing how fast you turned one accidental landlord into 5 properties in 2 years.  What is your goal for next year?

Yes, we are very excited about reaching that goal early. We're having a blast with the rehabs, (we do much of the work ourselves) but it has been a very hectic year.

Cashflow is good. We own all of our properties outright, property taxes are pretty low, and with most everything fixed during rehab we don't have a lot of maintenance expense. We have a good CapEx/emergency fund set aside so we don't get caught short, and we have access to $150k through a line of credit at our bank if we need it.

Retirement plans came about this way: We own our own business, and we got into a conversation about "If I died would you keep working in the business?" Both of us said no, we'd close it down, so we said, "Why wait for one of us to die?" We needed a way to have money coming in each month, and rentals seemed perfect. 10 would provide enough monthly income to meet our budget, 1 per year seemed doable, and Hubby will turn 65 on year 10.

We haven't set next year's goals yet, but we do have 4 houses on our "if we can get it at the right price" list. ;-)

2014 hasn't ended yet so can't comment yet as to a final tally. Likely will buy a retail strip center in the next few months.

I want to set up a blind pool to go after value add retail investments.

Want to buy one to two more retail strips in 2015 myself. Then I will have 20% equity with the blind pool deals with funds from investors and make commission going in and out plus some cash flow after they are paid first and reserves are met. I will buy some properties cash and then just resell them right away.

I will also keep working with existing commercial clients and new clients transacting more deals. 

So what I am saying is to buy one retail center myself this year. Next year buy two more for three retail centers all owned by me.

Then additionally have the blind pool of investors and the 20% interest in many others purchased through the fund.

Continue on top of that to close deals with my clients one on one.  

I'm just beginning my REI journey, so I'm still in the research & planning phase...

My goals for 2014 (what's left of it anyway) are to:

  1. 1. Become a CA Real Estate Licensee (1/2 way there)
  2. 2. Get a new W2 job (to fund future investments)
  3. 3. Learn about construction (I'm starting a Construction Management program next month and have been volunteering at Habitat for Humanity)
  4. 4. Become an active member on BP (read everything I can here and elsewhere; the pod casts are also great)
  5. 5. Connect with other local investors (possibly through meetup.com or here)

The biggest goal I have for 2015 is to get involved in some sort of real estate investment opportunity - I'm still debating whether that will be to flip or buy and hold.

In my heart of hearts I want to flip (while I'm still young), and invest in some buy and hold properties for retirement. I'd love to leave the W2 job opportunities behind and purely focus on real estate, however I understand that it takes money to make money and will use the project management experience I have to rack in as much start up cash as possible to fund my initial investments.

This is where I begin...

Just remember a successful investment is BUYING RIGHT on the front end. If not it can sink your real estate investment career or stall if for years or decades saddled with bad debt.

Never get emotionally involved in a deal. It  either works or it doesn't and there are always more properties to evaluate.  

@Aaron Montague   way to go on hitting your goal.  Especially since you had pretty aggressive goals.  I understand the fix and flip vs fix and rent problem.  I hate to let them go because I know I can make more money in the long run renting.  The problem is the rental part needs money generated from the fix and flip to pay the 20% down to get a rental property.  Good luck whichever way you decide to go.

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