2018 Goals - Learn, BRRRR, Network

[Tom Murray]

@Brandon Turner, @Joshua Dorkin, @Mindy Jensen, @Scott Trench: Long time listener...first time caller.

First, I owe a big shout out to @Jeffrey Holst for the motivation to post about my goals (or at all, for that matter).  He's got a great discussion going about his goals and is motivating others daily.  Check it out here.  He also wrote a blog post that you can find here.

Like so many others on BP, I'm on the journey toward passive income. My wife and I have partnered with another couple - we're all W-2 earners today - with the goal of generating enough passive income through REI to offset and/or replace W-2 income in about 7 years.

After some initial research, we knew we wanted to be in MFR. We got started about 11 months ago, in March 2017, and our second offer (amazingly) was accepted. We closed on that 4-unit (SoCal property) in July 2017. In addition to learning as we go on that property, we spent most of 2017 listening to podcasts, reading books and blogs, and trying to learn from anyone and everyone. We made 9 other offers last year. While we missed out on the #bp90days challenge, we did have an offer accepted on December 22, 2017, and we're in escrow now. That property is an old (vacant) 13-unit hotel. The place has a ton of character, but it needs some work. We're closing later this month, and then it's off to the races on our first BRRRR (turning it into 13 long term rental units). We're very optimistic, and occasionally intimidated, but we'll continue leaning into this adventure in our attempt to scale into mid-size MFR.

So about those goals...

In 2018, I've got three primary REI goals:

1) Learn. As with any hobby, business, or passion, I believe the desire to learn is the single most important factor in determining one's success or failure. I pledge to spend 2018 continuing to learn about real estate investing - through books, podcasts, other investors, experiences, and any other way I can. I'm specifically interested in learning about the MFR sector, tax strategies, hard and private money lending, BRRRR, short term rentals, SDIRAs, and other investment markets.

2) BRRRR. I've been enamored of the BRRRR concept since I first heard the term. My wife and I had a BRRRR-like experience with the home we own (bought, rehab'd, and did a cash out refinance). As I mentioned above, we're in escrow on a 13-unit property that is currently vacant. We've got a detailed plan for how we intend to get units fixed up and online - piece by piece - with the long term (~24 month) goal of stabilizing and then refinancing some of our capital back out. The longer term goal, of course, is to then reinvest that capital in another property ("repeat").

3) Network. I am a huge believer in the power of networking. Phrases like "it's all about relationships" allude to the importance of constantly nurturing and growing your circle. This year, I plan to host at least 2 networking events. The first will likely be in my garage bar, assembling like-minded people to exchange ideas. In time, I'd like to grow into a regular networking event for REI. I also want to take advantage of the amazing networking opportunities here at BP to meet other investors, learn from other investors, and maybe even motivate somebody else. Hence this post.

Good luck to you all in 2018!  Here goes nothing...

-Tom Murray