How To Eat an Elephant - A Beginner Sets His 1 Year Goal

What do eating an elephant and goal setting have in common?  Maybe the better question to be asking right now is why are you eating an elephant!?

Hungry anyone? Good luck and don't suck! Photo credit: Apple

All jokes aside, we've all heard the proverb, "How do you eat an elephant? One bite at a time".  Or maybe you'd rather be motivated by "A journey of a thousand miles begins with a single step".  The point is, when it comes to making a vision a reality, we need to break down our elephant-sized, scary, audacious and daunting vision in to small, bite sized pieces.  (If you haven't already, read about creating your own Dumbo-sized vision in my previous blog post).  If we don't break down the tasks into single, achievable steps, we're overwhelmed by the big picture and aren't likely to succeed.

So in this post I'm going to walk you through the process I've used to take my vision and break it down into a singular, 1 year goal that will move me toward the future I can see so clearly in my mind.  I've based a lot of the process on Brandon Turner's "Clarity" series however I've added a lot of my own techniques and viewpoint.  So grab a fork, bring an appetite (maybe a friend or two) and let's eat this elephant!

THE PROCESS

There have been countless blogs written on goal setting so I won't claim to know more than the next nascent blogger but what I will do is share what's worked for me and the thought process behind setting my particular goal for this case study.

So here's my goal setting process:

1. 1. Define YOUR VALUES
2. 2. Determine THE FACTS
3. 3. Accept THE ASSUMPTIONS
4. 4. Set THE GOAL
5. 5. Clearly define the Intent, Priority, Restrictions and Resources to make it all happen

Let's start with step 1.  It's usually a good place to start.

1. Define YOUR VALUES - I could write an entire separate blog about the importance of values based goal setting (until I write that blog, this is a really good read), but for now let's keep it simple.  If your personal values don't align with the goal you set, you will fail.  I think a lot of people fail to realize how hugely important the previous statement is.  

I was only slightly kidding when I asked, "Why are you eating an elephant?"  While it involves a bit of hyperbole, that question gets to the heart of the importance of defining your values in the goal setting process.  If you value the lives of elephants because they're  rare, endangered and majestic creatures, I highly doubt you would kill one and want to eat an elephant steak, let alone the entire elephant!  You will fail to eat the elephant.

So before you set a goal, get very clear on your top 3 values.  The goal you set will need to align with and be a stepping stone towards living your values.  If you don't know your values, you can't set a goal that will get you there.  In my case, I spent a few hours contemplating what my values were that motivate me to want success in real estate. Keep in mind that your values in one area of life can be different than in others.  What I came up with was Time Flexibility, Financial Independence and Family.

Once I determined my values it was time to determine the facts about my current situation.

2. Determine THE FACTS - Creating a vision focuses on WHAT the future will look like, setting a goal charts HOW you will get there.  But before you can determine HOW, you need to determine THE FACTS of your current situation.  So here's an example of the facts I'm facing:

• - My current employment contract ends in July of 2021.
  - My monthly living expenses for all subsistence and mortgage is $3900/month.  If necessary I can reduce this to $3000/month.
  - I have saved $15k to use for marketing, a down payment or rehab costs.  I have an additional emergency fund that can cover my living expenses for 6-9 months.
  - COVID-19 will cause uncertainty in the RE market and uncertainty presents opportunity.

With these facts in mind, it's easier to build a framework for my goal.  The last piece before crafting my goal is filling in the gaps by accepting the assumptions.

3. Accepting THE ASSUMPTIONS - It's all to easy to be a victim of analysis paralysis, however at some point you have to accept the risks associated with investing.  This is especially true during the uncertainty of the current market.  I find that clearly defining the assumptions that you're basing your decisions upon helps to gain clarity and ultimately make an informed decision rather than a wild guess.  So here are my assumptions that are relevant to my RE goal:

•  - I will need to travel for work (and be gone 3-6 months at a time) once travel is allowed again.
• - There will be a market downturn due to to COVID-19.  Las Vegas will be harder hit than other metro areas however we won't see the true effects for another 3-4 months.
• - Flipping and rehabs will decrease in the short term but a deal in any market is still a deal.  If I can secure deals and prove to investors that the numbers result in a profit, I will still be able to wholesale deals.
• - The number of deals will increase as people face financial hardships due to unemployment.  This will present opportunities to both find deals and help people in difficult financial situations.

Assumptions are a slippery slope; they need to be made in order to take the next step but should also be based on research and experience.  Frankly I'm lacking in experience as a RE investor however I've used the BP Forums to reach out to local investors.  They have years of experience and also data that informs their decisions.  Learn as much as you can from trusted sources then outline the assumptions so you can move forward.

Speaking of moving forward, it's time to set the goal!

4. Set THE GOAL - With my values clearly defined, the facts outlined and assumptions accepted, I could finally set my 1 year goal.  So here it is:

Replace my salary income by generating at least $4000/month in profit by wholesaling properties in Las Vegas.

I made sure to make it SMARTER (Specific, Measurable, Achievable, Realistic, Timely, Exciting and Risky).  It also aligns with my values; if I achieve this goal I will have greater time flexibility than my current job, more independence in the long run and more time to spend with family.  It also accounts for the facts of my situation and allows me to accommodate for the assumptions. 

And now for my unique twist on goal setting.  I don't just stop with setting the goal, I use all of the information and work that I've already put into the goal setting process to clearly define my IPRR.

5. Clearly define the Intent, Priority, Restrictions and Resources to make it all happen - This is as simple as it sounds and helps to further clarify the goal.  It's the final step but it's also one that most people don't think about.  Here's my example using the goal I wrote in step 4.:

• Intent - Generate income through real estate wholesaling in Las Vegas
• Priority - There are hundreds of priorities that might help me achieve my goal.  I could focus on fostering relationships, building a buyers list, attending seminars, reading wholesaling books, etc.  However at the root of achieving my goal is GENERATING LEADS, CREATING DEAL FLOW, and TAKING ACTION.  If I prioritize those three things, everything else will follow.
• Restrictions - I will conduct myself ethically and legally.  I need to be able to meet the priority while also still fulfilling my day job responsibilities (made more difficult by the requirement to travel).  I have a limited knowledge base/experience with wholesaling.  Lastly, COVID-19 makes it difficult to physically interact with other people.  With the restrictions clearly defined, it's a lot easier to mitigate them.
• Resources - I've got ton's of resources to help me chow down on this elephant.  I've got BP forums, the $$$ I've saved, I've got supportive friends and family and I'm a fairly quick learner.  I don't have real estate experience but I have prior business experience and what I think it really comes down to is grit, tenacity and hustle.  It's also very helpful that COVID-19 and work from home have given me additional time resources!

Alright we've finally completed the goal setting process!  It might have felt like trying to walk a thousand miles to read through this entire blog but I'm hoping you benefited from it.  Deliberate and values-based goal setting have been a game changer for me in my life and previous businesses.  I'm confident that goal setting will also be a useful skill in real estate and my intent is to share the journey with you as well.

Now instead of trying to eat that elephant, I suggest you use your time to accomplish a different goal that's more in line with your own values.  Lace up those shoes and get to taking that first step!

Thanks for reading and see you on the flip side!

Justin