Our 3 Investing Goals for 2015 & What I’m Nervous About

 

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Happy New Year! I hope that you had a wonderful holiday with your family and friends and are eager to jump into the exciting opportunities 2015 has in store for you.

While I'm not so much of a resolution type of person, I am a big fan of setting goals.  Some of you may be chuckling and thinking 'Emily isn't a goal and a resolution the same thing'?  I've had people ask me this which is why I know some may think this.

However, I think of a resolution as fixing something I've already been doing.  Meaning I'm thinking about the past and focusing on what not to do.  Whereas, with goal setting I'm looking optimistically to the future and planning what I will do.

 

Yes, there is some reflection involved with setting my goals- Kirk and I spent our 3 hour car ride to VA reflecting and goal setting- but the focus with goals is much more about what is to come.

So, during this 3 hour car ride reflection/goal session, we reflected a lot on 2014 and the great things that happened for us.  We bought another investment property, watched our daughter grow from an infant to a fun loving toddler, moved to a new state taking on new jobs and continuing to grow this site to reaching many new investors across the country.

 

Talk about a great year.  We are truly thankful and blessed for the great things that we made happen this past year.

In looking ahead, we have set some goals that I thought would be beneficial to share with all of you.

While we made a variety of personal and family goals, I want to share with you our investing goals.  One of my own goals with this site is to be as transparent as possible so that you can truly see what the investing process is like.

With that, I give you our investing goals for 2015.

#1 Buy a Multi-Unit Property

This has been something we have been talking about wanting to pursue over the last year. The properties that we do own all fall under the single unit dwellings and we are ready to diversity our portfolio and start down the path of multi-units.

While we aren't necessarily picky on what type, I think we'd like to try a duplex or triplex so that we can still get residential financing.  With units that are typically five or more you start running into commercial lending and we aren't quite ready to go down that road yet.  However, if a great deal comes up we wouldn't not go after it just because of the financing aspect.

What are we nervous about?

Just like anytime you go after something that's a little different, we are slightly nervous about now knowing what to expect in the buying process.  Different things that might come up that we haven't accounted for or thought about.

Another thing that has made us drag our feet in the past is usually the multi units we've looked at, where the numbers work, are typically listed at a higher price than where we've typically shopped before.

Obviously going after a property that is higher priced means that running the numbers and making sure the return meets our goals is so important. But, a higher purchase price also means a higher down payment-which brings me to goal #2.

 

#2 Create Partnerships for Investing 

Yes, in the relationship of my husband and me, he is the conservative investor and I am the "shark"- or at least that's what he calls me.  🙂  While I would love to go after every deal ourselves and keep all of the cash flow in our pockets, he has slowly convinced me to see the value in adding partners.

One of the reasons is because as we continue to buy properties, we must continue to have capital not only to buy the property but also we must have money in our reserves if we are going after any kind of financing.  Having a partner helps alleviate the pressure for us to be constantly coming up with our own capital to make a deal happen.

The second reason he has helped me to see is the importance of diversifying our risk.  If we continue to be putting all of our money and assets into these properties, we are taking on 100% of the risk as well.  Bringing in a partner allows us to continue to invest without all of the risk being placed on us.

What am I scared about?

A Lot.

One of the biggest things that makes me nervous about investing with partners is the fear of screwing up a deal and the partner losing money.  Although, the reality of investing in real estate is that at some point this is going to happen if you start to make a career out of this.  It's being prepared for this to happen is where a solid partnership can weather the bumps and storms and continue working together.  Nevertheless, it makes me nervous.

The other thing that scares me is that we have some family that is interested in partnering up on some deals-which makes me even more nervous.  I've been raised as someone who values family above all else.  I've made great effort in my life to make sure to put family first.

It makes me nervous to potentially get into a financial contract with them and for money, greed or power to tear a family relationship apart.  Although, I'm confident that our relationships with family our extremely strong, I'm also sure many individuals who invested with family and had instances of major fall outs felt the same way too.

Either way, it is one of our goals and I will keep you posted as the year goes on with the ins and outs of how we find partners.

 

#3 Have 8 Units in Our Portfolio by 2016

One of the first things I hope you realize with this site is that, while I'm not a rookie with investing in buy and holds, we are still early in our investing journey.  I created this website because I wanted to share with those of you who want to invest but feel like you can't because you don't know anything.

A few years ago, I knew nothing about real estate, property, financing or property management.  Literally nothing.

In just a few years, I've learned so much and I want to show those of you who are nervous that you too can get out there and buy rentals and be successful.

With that, our 3rd goal is to have 8 units by 2016.  Currently we own 5 properties and are actively looking for our next one.  We hope that in combining our first two goals that we will be able to accomplish this goal.

In buying a multi-unit it can get us to reach this goal much faster. With partnering, it frees up some of our own capital to buy more properties as well.

Now that we are in a place where our cash flow that comes in from our properties is seen as income in the bank's eyes we have the chance to continue buying more properties, just like the snowball effect.  We cash flow money on our properties each year and we save it to reinvest in another property.

With reaching 8 units in our portfolio, we will be able to reach some of our own personal and family goals as well.  Which makes us both excited and determined to make 2015 the best year yet.

 

What are your goals for 2015?  How can I help you reach your goals for investing in buy and hold properties?  Leave a comment below!!

 

Happy Investing!

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