What Is Your Net Worth Or Passive Income Goal?

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What Is Your Net Worth Or Passive Income Goal?

Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

This post was just inspired by @Jason Scott who just posted on FB how most people will never achieve $10 million, $100 million net worth etc (and theres nothing wrong with that) (Also, in like a decade on here Ive never been able to tag Jason even though I have super power moderating capabilities).

So I was curious what is everyones net worth goals? Or your passive income goals? My net worth goal is $7 million.

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Bjorn AhlbladPro Member
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
6y

@Russell Brazil I am 75 so no empire building. I have a net worth of about 4 mil and 8k rental income. I have 2 goals left: 1. never learn to say "Welcome to Walmart" and 2. never learn how to operate a cash register!

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    well I got north of 10 million prior to 08 melt down  ( ON PAPER OF COURSE).. After meltdown not so much.

    goals right now is simply to stack free and clear property.. At my age I dont want debt.. so does not have to be a monster number 3 million in paid for assets  Like first trust deeds at 10% plus my SSI and medicare and all my homes paid for that would be a comfortable life I think .. for me we did all our big travel over the last 25 years.. so a nice mountain cabin a little fly fishing.. some sun in the winter..   Gone were the asperations of a private jet.. that was always my number one goal. And i did have a deposit on the Cirrus Jet in 06  when they were suppose to only be 800k.. Well they did not get built until about 5 years ago or so and they are now 3 million..  Any way just musing.
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  • Mel Berg
    Member since 2018 · 4 posts · 29 votes
    6y

    My goal is $2,400/mo in passive income, and no debt or debt that pays for itself. By that I mean it would be okay in my mind to have mortgages on properties that rent for more than the mortgage payment. At that point I'll be able to quit my job and just focus on the (future) kids. 

    21Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    6y

    @Russell Brazil I am 75 so no empire building. I have a net worth of about 4 mil and 8k rental income. I have 2 goals left: 1. never learn to say "Welcome to Walmart" and 2. never learn how to operate a cash register!

    85Reply
  • Account Closed
    Rental Property Investor · Silver Spring, MD · Member since 2017 · 4 posts · 13 votes
    6y

    My goal is to have a net worth of a million dollars by the time I am 35(currently 27) and at around 10% of my goal.

    12Reply
  • Scott Passman
    Rental Property Investor · Batavia, IL · Member since 2018 · 452 posts · 672 votes
    6y

    My goal is to hit $5,000/month of income from real estate so I can reduce down to part-time at my main job in order to have more time with my family.  I want to create a life for myself where I can be flexible with my time so I don't have to miss my children's games, recitals, etc.  I want to be there for as much as I can with my kids!

    19Reply
  • Todd Rasmussen
    Rental Property Investor · Clarksville, TN · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    My goal is 25K monthly which means we'll need a net worth around 3.5 mil. Currently 59% (gross scheduled) and 31% of goal, shooting for retirement in twelve years at 45.

    17Reply
  • Erik W.
    Real Estate Investor · Springfield, MO · Member since 2017 · 1k+ posts · 2k+ votes
    6y

    My goal is to be content with whatever I have, whether an abundance or just enough to get by.  I prefer to have an abundance because then I can use the wealth at my disposal to serve others.....and it would be fun to install a keg-o-rator in my bar.

    I'm 44.  Our house got paid off in December 2018, and I have zero personal debt.  Have enough in the bank to live without any income for 6 months.  Enough in investments to live 10 years without bringing in a dime even if all I do is cash it out and spend it.  If I just lived on cash flow from rentals, I'd probably never need to touch my investments unless an emergency came up.  In truth, whatever my "goal" is, I surpassed it long ago from a personal needs and wants level.  A good bottle of bourbon and time on the lake or hiking in the mountains with friends is about as fancy as my heart desires.

    But when you're asking what is my goal for being a more generous person, and does the process of acquiring more wealth to be a blessing to others interest me, then I would say my goal is fairly limitless.  If I can help others and have fun in the process, then I will continue to acquire wealth and dispose of it as I see fit until the day I die.

    53Reply
  • Jai Reddy
    Edmond, OK · Member since 2012 · 456 posts · 270 votes
    6y

    @Jay Hinrichs

    You are so open. Most successful seniors like you would hold back. Thanks for your contributions

    1Reply
  • Jai Reddy
    Edmond, OK · Member since 2012 · 456 posts · 270 votes
    6y

    I’d like to point out something when people think of net worth.

    Paper networth fluctuates, so please sprinkle with some grains of salt. A real estate of 1M will appraise at a much lesser value when there is less demand for such property. Its never really its claimed value unless it’s been converted into cash in the bank. Which is probably why @Jay Hinrichs says, ‘10M value on paper, before 2008’.

    3Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Jai Reddy:

    I’d like to point out something when people think of net worth.

    Paper networth fluctuates, so please sprinkle with some grains of salt. A real estate of 1M will appraise at a much lesser value when there is less demand for such property. Its never really its claimed value unless it’s been converted into cash in the bank. Which is probably why @Jay Hinrichs says, ‘10M value on paper, before 2008’. 

    Yup there one day gone the next.  Hopefully values wont crash like what happened in those days..  

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  • Jai Reddy
    Edmond, OK · Member since 2012 · 456 posts · 270 votes
    6y

    Also, in theory, one can have 100K/yr passive income but a networth (assets-liabilities) of only 100K (with a bunch of debt), and is likely to go broke and lose all networth if passive income dries up due to situations like Covid-19, Covid-20 and s on....

    0Reply
  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    6y

    @Russell Brazil I don’t have an income goal as someone at my age (mid 20s) doesn’t really know what the world will look like in 25-30 years when I look to “retire”.

    My net worth goal is pretty high but I won’t disclose it publicly. Where I’m at currently (compared to my peers) is pretty good, and due to how wealth building in the US works (the more you have the easier it is to keep going), I am in pretty good shape (even with the corona thing).

    I recently started dabbling in stock picking some and it’s a whole new world. My best performer so far is marathon oil. I’m up 25 percent in 2 weeks. No tenants, hammers or evictions required. Lol.

    8Reply
  • Steven FlemingPro Member
    Rental Property Investor · Columbia, MD · Member since 2018 · 9 posts · 16 votes
    6y

    I read the same thing this morning.  It was an excellent read, as always.  My goal had been to hit a $1mil net worth in the next 3 years, but now I am feeling like I need to up my game and set some longer term goals as well.   

    4Reply
  • Kevin Paglia
    New to Real Estate · Las Vegas NV · Member since 2020 · 90 posts · 46 votes
    6y

    My personal goal is 25 doors completely paid of.  After that i can invest as i want on solid projects and buy-hold homes

    4Reply
  • Taylor L.
    Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    6y

    When the time comes I want to be prepared to support my parents in their old age (if I need to). My numerical goal is six figures in net income per year. More than enough to live a life of abundance, help others, and continue to grow.

    2Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    $240,000/year passive income (net)

    3Reply
  • Carmichael Lewis
    Chicago · Member since 2019 · 75 posts · 49 votes
    6y

    Monthly cashflow 10k. Net worth 1 million. Own 10 rentals free and clear. I have 6 more to go.  

    18Reply
  • Charles D Cruz
    Pueblo West, CO · Member since 2017 · 69 posts · 53 votes
    6y

    I think that none investment income effects everyones goals to a significant amount. Easier to build passive income with 400k w2 income than 50k w2 income.

    but goal is $30k/mo within 10 years.

    0Reply
  • Eric Bilderback
    Real Estate Agent · Sisters, OR · Member since 2014 · 1k+ posts · 1k+ votes
    6y

    Current goal don’t lose what I have now.

    If we were not in the middle of a pandemic I would say 15k a month.  Quit working all the time so I can be a great dad, catch more fish, kill more bucks!  @Jay Hinrichs have you ever fished the Metolius?  

    5Reply
  • Lynnette E.
    Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
    6y

    I always hear, and kind of believed, that people who have goals are more likely to do well.  But...my financial goal was always just to pay my bills and have some left over for fun, to save, to help others.  I always have seemed to meet that goal.

    I never really had a goal of a specific net worth or even a monthly income.  Maybe because my regular job was with the federal government and we really had no ability to change our monthly income.  If Congress gave us a raise, we got one...unless the medical insurance costs rose more then the raise.  If they wanted me to work overtime, I had to, no declining was allowed and I got more money.  But I loved to jobs I got to do and loved the retirement and ability to save for it.

    So now I am 60 years old, retired.  I don't really need money from real estate, but I enjoy it.

    I am in the process of adopting a baby, and just filled out the monthly income / net worth paperwork and was really surprised!  I think that I have far exceeded any goal I would have made.  

    I do buy foreclosed, trashed houses and with some money and tons of work they are worth much more than  initially paid.  And even though the stock market is not what it was, it is still much, much more than I put into it over the years. 

    Oh, and that baby, well I am not totally crazy to adopt a baby at 60 years old.  Its a relative, and it will be spoiled rotten, but well behaved.  BTW, all my kids are adopted, 2 domestically from foster care when they were ten years old.  They are now 37 and 35.  The other two international adoptions and they are both 16.  So its the third time I started over with kids!  I just have to decide if one is enough or if I should foster another after the teens move on.  Sometimes two is easier!  Sometimes...

    19Reply
  • Andrew Carlson
    Rental Property Investor · Rochester, MN · Member since 2017 · 224 posts · 323 votes
    6y

    @Russell Brazil

    $10,000,000 In assets by age 40 earning a net of 4% yearly. I call it 400 by 40. ($400k income by the time I hit 40). I have ten years to do it. Thanks for posing the question, it’s good for us to get our dreams out there!

    5Reply
  • Brian Ploszay
    Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
    6y

    Passive income?  Not real estate.  Running rental properties is a business and takes attention.  If you set up your investments with a property manager and don't pay attention to them much, you'll have financial leakage.

    There is a lot of goal setting and people who give great encouragement on Bigger Pockets.  Also some inevitable posturing.  I like realism.  It takes strong business goals and execution to reach a high net worth.

    Let's say you want to have a net worth of $5 million by operating cash flowing properties.  Probably you're going to have to purchase and hold more than $5 million of real estate.  Remember, it takes awhile to get properties paid down.  Maybe you'll make some of your return on appreciation.  Still takes substantial time.

    For most middle markets, you're going to need 50 units, or maybe 100 to have a shot at that sized goal.  That's a non passive business!

    For most of us, it takes awhile to build such a portfolio.   You can leap frog in size by syndicating / forming partnerships, but then you're giving away (often large) portions of the deal. So you have to grow even bigger.

    Landloring, for the majority, is a middle class profession.  The majority of landlords are mom and pop firms own modest amounts of real estate.  These people usually have a great retirement if they retained and paid down their assets.  Very common they end up as millionaires. 

    I've found most of the wealthier real estate guys either do large transactions or bought and long-term held properties that were in highly appreciating areas.  Easier done in select East and West Coast locations.  Today these prime locations have steep barriers of entry.  

    In conclusion, I think that a multi million dollar net worth is very attainable for most folks who accumulate properties and do long term holds.  If your wealth goals are higher, you'll have to run a rental business.  These non passive businesses literally operate 24/7 /365 days.  There is no retirement until you sell them.

    18Reply
  • Aaron Barber
    Rental Property Investor · Las Cruces, NM · Member since 2017 · 65 posts · 38 votes
    6y

    $5,000/month of income from real estate

    3Reply
  • Synthia B.
    New to Real Estate · Member since 2019 · 23 posts · 35 votes
    6y

    Thanks for the question, I have enjoyed reading all the responses. 

    Considering my husband and I are late 20s, there is too much unknown to give you an estimate. Actually, we haven't even created an estimate, instead just goals in terms of lifestyle. We live way below our means with no debt other than $90K on first investment property. We would like the freedom to work per diem, parent, pursue passion projects/community service, be able to assist with aging parents, and travel. However many doors will get us there is the goal.

    4Reply
  • Darius White
    New to Real Estate · Detroit, MI · Member since 2019 · 41 posts · 21 votes
    6y

    @Russell Brazil our goal is 20k a month in 11 years. Currently 26 & 28 years old. So by 40 at the latest we hope to shift to all passive income.

    2Reply
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