How to Set Specific Business Goals and Take Action

We are going to discuss multifamily, but today we're going to think about it slightly differently. We’re going to build it with the end in mind. I had a discussion with an individual the other day, someone who is looking to jump into multifamily, we were talking about what his goals were and what he wanted and ultimately where he wanted to be. What we discovered is that he just wasn't actively being as specific as he needs to be. Ultimately, if you're going to have a goal in mind it needs to be actionable. It needs to be something that you can create steps to get to because there's a lot of talk today about “how many units do you currently have”, and I'll hear people have a thousand units or 2000 units and we're all these numbers, but ultimately they're just numbers on paper.

If you only have half a percent of a thousand units is that creating financial freedom for you? What is it going to take and what is your ultimate goal? Your ultimate goal is within five years to have enough income coming in to cover your current income or to have enough income coming in that covers your expenses. You can actually ultimately be free. That's buildable. We would have to look at what our expenses are, what our monthly burn rate is and what we need to accomplish. If we needed to accomplish say $5,000 and we were able to get that having 20 units in those 20 units, we're now ultimately a couple hundred dollars a month. Is that achievable? If we need 20 units, are we going to do that in one 20 unit building five fourplexes ten duplexes? What does that look like?

Ultimately if we have a goal in mind we can get specific. We need five fourplexes, where are we investing? are we investing here in New Jersey? what areas have fourplexes in my town? there's not a lot of multifamily properties, but neighboring towns have that, maybe I'm going to look in a neighboring town. We're going to look at your fourplexes and I want to have more than two one or two units at a time because with the taxes so high and expenses so high, you need to make sense of it and making sense of it only can be accomplished when you have multiple units on board. So now I have a plan in mind. I want to cover my $5,000 in expenses with my income generated from the rent from properties and I need 20 units to be able to accomplish that.

Anything over 20 units is going to be gravy. So what is that get going to look like? How many conversations am I going to need to have with brokers? How many properties am I going to have to look at and analyse? How many offers am I going to have to write? How much funding am I going to have to raise or find? How much money am I going to have to put away to cover these down payments? How many banks am I going to have to talk to get multiple loans? If I'm going to create this journey and create these steps that can then become reality, I can write down my big five today. I need to have five talks with brokers. I need to have three money talks, I need to analyse five properties, I need to potentially write one offer.

Ultimately I have to read 10 pages in the book, something related to multifamily investing, five actionable steps now that I can do. If I do that 250 days out of the next year, do you think I'm going to be closer to my goal? Instead of just saying “I want a thousand units with no end in mind” and no actionable steps or guidance, not even knowing what that looks like. Think about where you're going and what you want and what your actionable steps are and start writing down your journey so it becomes real. Take this time, write it down, be as specific as possible. Ultimately when you find it and you've already been so specific in your mind that you know if that is it. That's your goal today. Write down your big picture goal, write down why you want it, and build back what you need to do to get there, and then write down five actual steps you're going to take daily to accomplish that goal and check them off as you get there.

Learn more about business and how to buy large multifamily apartments here: https://www.multifamilyfoundation.com/order-28415099