076: 1,000 Units by 2020 Update

SHOW NOTES FOR EPISODE 076 –  1000X2020 GOAL UPDATE

In this episode, Bill shares an update on his personal goal to acquire 1,000 units by the year 2020.  He also outlines his real estate activities in the last few months and lessons learned.

For those of you who have listened for a while, you know my goal has been and continues to be “to purchase/acquire 1000 units (or doors) by the end of the year 2020.”  Through this podcast I share exactly what I am doing (the good, the bad and the ugly) to achieve that goal.  My intention is to help you gain from my successes and to hopefully avoid the mistakes I make.

But before I get started, I have a couple of quick announcements:

We now have a:

Facebook Group where fellow investors can gather/meet to

• share information
• ask questions about investing, podcasts anything related to the network
• get special teaching and training
• And network (afterall, we are the Old Dawg’s REI Network)

We also have a new YouTube channel now where we have:

• All of our podcast episodes
• I will utilize videos to explain things where audio doesn’t quite do it

Finally, as this is episode #076, we are rapidly approaching our first 100 episodes.  We thing the 100th episode will occur in May.  We want to do something special for episode #100 and have decided to have our 2017 Old Dawg Howl Awards.

Now, for those of you who have listened for a while, you know that each of our guests close out the show with their best old hound dog howl.  Well, we have listened to all the howls since the first show and are narrowing down our top 10.  Over the next month or so, we are going to post the Top 10 howls on our website, where you can listen and vote.

Then, the top three will receive the coveted Golden Howl Awards!

So watch out for this red carpet event!

So, on to the update:

So, here is the goal:  in order to achieve my goal of 1000 units by 2020, I will need to double my cumulative total number of units each year.  So, whether I actually acquire the target acquisition goal number or not, I still have to make up for deficiencies in the next year or two for this to happen.

Here’s my status to-date:

In 2014, I started with three properties, totally 4 units– 2 single family homes and a duplex.  The duplex and single family properties were in Memphis.  I also bought a single family home in Atlanta.

In 2015, I was supposed to buy 8 units (doubling the number of target units I was supposed to have at the end of 2014) but I only bought a duplex (2 units) in Indianapolis. (We were moving from Port-au-Prince, Haiti to Southern California, finalizing adoptions and a bunch of other stuff  so it was a tough year to search and acquire properties) So, at the end of 2015, I was 6 shy of goal.

In 2016, I purchased a 22-unit apartment.  My goal was to double the 4units from 2014 plus the 8 units in 2015.  8 plus 4 is 12, double that and you have 24 was my target goal for the end of 2016.  However, I was 2 units shy of my goal of 24, plus the 6 units I was shy in 2014, had me at 8 under goal by the end of 2015.

Currently, I have 28 units, consisting of 2 single family homes, 2 duplexes and a 22-unit.  I am technically, 8 units behind my goal which, at the end of 2016, should have been 36 cumulative units total.

My written goal for 2017 is to acquire 72 units, which will give me a cumulative goal of 108 units by year-end.  But I am targeting 100 plus, so I will surpass my goal and make up for prior year deficiencies, plus be 20 units over my goal going into 2018.

I have all of this on an Excel spreadsheet that you can download here: 1000X2020_WORKSHEET.  The spreadsheet also allows you to set your own goals and to see what you need to acquire each year to make your goals.  It also shows the dollar goals at $100 per unit as well.

A few highlights since out last update:

The end of 2016 was rough:

• Had to fly to Indy to live in my apartment for a month to speed up rehab/upgrades and do some “stealth tenant marketing” to fill the place up
• I have had a number of evictions in other properties and a few at the 22-unit
• No rental income for a couple months and that hurt!
• Had to tap into IRA funds for repairs/rehab/upgrades.  I didn’t really want to touch those funds for that purpose but live and learn
• Now, I have tenants in place in all properties and am focusing on finishing the upgrades on my 22 unit, which is at 91% occupancy, soon to be 95%.
• I’m looking forward to the cash flow again
• I am also spending a lot of time researching various markets – potential where we can purchase the 100plus units
• I’m also talking with potential investors
• This will be the first project where I will bring in outside investors
• Very busy. Very exciting time.
• And I hope you are doing well on your goals…

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