It’s the end of June already. 6 months have flown by and with half the year over, I like to revisit where I’m at with the goals I set for myself this year.
In a nutshell, here are my top level 2016 real estate related goals. I had 2 major results-oriented goals: pick up 3 rentals and launch a real estate blog. Underneath each major goal, I list out specific action-oriented steps that are essentially mini-goals that are needed to reach each major goal.
Adding 3 More Properties
My primary goal this year is to add more rentals to my portfolio. Specifically, I’m looking to add 3 additional units, but so far I have not added a single door. It’s not that I’m not taking action. Believe me, I’m analyzing properties nearly everyday and offering on every potential deal I come across.
My biggest challenge has been a lack of inventory with stiff competition willing to accept lower cap rates. I’ve been outbid on every offer this year. Even on some of my all cash offers. The closest call was a property in Indianapolis I had under contract back in April while I was in Japan. That one fell through for reasons that you can read in this post.
On another occasion, I had actually won a Hubzu online auction only to be informed a day later that my bid did not meet their minimum reserve price. If anyone is familiar with Hubzu, they’ve probably seen their attractive low list prices. The problem is that Hubzu does not publicly show what their minimum reserve price is. This means that a buyer such as myself, can actually win an auction and have the highest bid, only to be rejected later by the seller because that winning bid did not meet their minimum price. A frustrating scenario that wastes time for any buyer. That property I technically won, got relisted over 2 auction periods and finally sold for over $15k over my winning price.
I’ve also gone out to both Indianapolis and Kansas City this year. I’ve been in KC for a couple years now and I always enjoy flying out there to meet with my team. I like to visit KC at least once a year. The purpose of the KC trip this year was to continue researching various neighborhoods, look for a rental property to acquire, and strengthen my relationship with my local team there.
Since I’ve been having a tough time finding any real deals in KC, I also made a trip out to Indianapolis as well. I don’t have a team there so the main purpose was to begin building a team. I met with local professionals there including: property management companies, real estate agents, wholesalers, an inspector, and a project/rehab manager. Overall, the trip was very informative and I made some good contacts.
Though not lacking the effort, I’ve added 0 properties to my portfolio this year!
Launching this Blog
On the bright side, I launched this blog!
I bought the domain in late January, designed my site, and launched it by the end of March. It’s not fancy, but I’m proud to say that I designed my website along with all the logos and graphics myself! I’ve taken baby steps to improve this site little by little since this is all new to me.
Having a full-time job makes it tough to write articles more than once per week. So for now, I’m sticking to my one post a week goal. Hope you don’t all mind.
Despite the learning curve in designing and managing a website, it’s been a lot of fun and I’m so glad I decided to jump in to blogging. Not to mention, connecting with other real estate investors and finance bloggers is incredibly helpful.
Not Giving Up And Focusing on Action
As I head into the 2nd half of 2016, I’m reminding myself to stay focused and continue taking action. Just because I haven’t seen certain results, you think I’m going to quit? — Heck no!
Are your goals based on results or based on action? Mine were a mix of both. Picking up 3 rentals was a results-oriented goal. To hit this top-level goal, I had set more specific action-oriented sub-goals such as visiting my market.
Why does this matter?
With results-oriented goals, it’s easy to get fixated on the end result that we set for ourselves. For instance, pick up 3 rentals, land that new job, get a $20k pay raise, etc. The danger in focusing solely on results is that when you haven’t achieved it, you may feel that you haven’t made any progress. For me personally, being halfway through the year and not having closed a single property definitely made me feel as if I’m no closer than I was back in January. A discouraging feeling indeed.
It’s exactly at this point that many people give up. People quit when they feel that their effort is not translating into the results that they want to see. They want to see that their effort is bringing them closer to their end goal — the 3 houses, the $20k raise, or that new job.
If we only focus on the end goal, we may undervalue the progress that we are actually making. Without noticing that progress, we then get discouraged and start to lose momentum to keep taking massive amounts of action. With less and less action, we then actually fall further away from our goals.
In my case, there’s a ton of upfront work that’s required before hitting my goal to close on 3 properties. In the past 6 months, I’ve put in massive effort in conducting market research, analyzing properties, making connections, and taking trips. In terms of results, I have 0 added properties to show for 2016. Though in terms of action, I’ve made a lot of progress.
And if I keep taking action, I believe the results will eventually come. Maybe not tomorrow or this month, but eventually. I’m only one “yes” away from getting a property under contract. Once I get that, I have my team ready and my funds in place to follow through.
Despite not seeing the results yet, I’m focused on continuing to take action. I’ll keep looking at deals, analyzing properties, and making offers. Something’s bound to stick.
I won’t concern myself with the lack of results because I can’t afford to get discouraged, lose momentum, and stop taking massive action because doing that won’t get me to hit my goals.
Here’s to a successful 2nd half of 2016!
How have you done with your 2016 goals so far? I’d love to hear them. Leave a comment to share below.