Have you set your goals? Here's mine.

Goal setting is one of the key things to really get you on your way in the real estate journey. Without goals, what are you aiming for? You are basically playing darts in the dark without a goal. Throwing your efforts against a wall and hoping to hit some kind of target.

This is me without any set goals.

Okay so goal setting isn't hard. Most of us have a goal somewhat floating around in our head when we start anything. I want to be rich, I want to buy a Ferrari every year, I want to quit my job, I want to buy a mansion, or I want financial freedom.

While these goals are a great starting point, they need to be more specific and have a basic plan to back them up. Math doesn't lie, and while not every plan goes according to plan, its better than throwing darts in the dark! So lets use math to help break down our goals. Don't worry, this will be very simple math that you can do on any basic calculator.

Let's say your goal is to be rich. What is rich to you? Let's say it's $1,000,000 in passive income a year. That's $83,333 a month in passive income. ($1,000,000 / 12 months) How much cash flow (money in your pocket) does 1 unit bring you in your area? For easy math sake, lets pretend it's $400 in cash flow. Now just divide your goal of $83,333 a month in passive income by $400. That gives you a total of 209 units producing $400 in cash flow each.

Now you have a goal and high level plan!

Your goal and accompanying plan is now: I want to be rich and make $1,000,000 in passive income a year. To achieve this, I will need to make $83,333 a month in passive income and this will take 209 units with $400 in cash flow per unit.

Feel like a math wiz? I do!

Next step? Give your goal a time.

So how long do you want to take to achieve this goal? That goal is great but if you achieve it in 200 years... well... you won't really be there to reap the benefits would you?

Set a goal to something realistic. This will require you to do some more math, but I'm sure you can see it's pretty simple. Everyone's time goal will be different. Those starting off with more capital will have a leg up. But those who can get creative with financing their real estate deals can also get started, and may benefit better in the long run!

To end, I'll share my goal with you all.

My Goal

I want to be financially free in 10 years. To my family, this means having $15-20,000 a month in passive income. This will require 75 units positively cash flowing $200 per unit. That means I have to purchase 7-8 units a year. In years 1-3 I will work on buying 2-4 units a year. In years 4-6 I will work on buying 7-8 units a year. Finally, in years 7-10 I will work on trading up or buying 12-14 units a year. This may entail trading SFHs or small 1-4 unit MFHs for an apartment complex(es).

I hope this was helpful for you in setting up your own goals to aim for. Don't play darts in the dark! See y'all next time!