With honest effort and diligent discipline

[dcaz4moores]

The business vision is to have 24 doors within 5 years:



Starting with very little in the way of capital...how does this look?



Purchase one positive cash flow property (using the REIN principles) in the first year, the second year we would purchase 2, giving us a total of 3 properties by the end of year 2. In the 3rd year would implement a strategy of buying as many doors by end of the year that we held the year prior, which would see us buy 3 positive cash flow properties bringing us to 6, by the end of year 3. Year 4 we would buy another 6 (trying to stay to our plan, and would put us at a total of 12 positive cash flowing doors by the end of year 4. Year 5, buy the previous years total of 12 bringing us to a total of 24 revenue properties.



Totally out to lunch? Or just a grand vision that will require significant effort on the front end so the back end can take a rest



It seems very doable...developing the capital to make such purchases, in the first two years should be no problem, but the the remaining years the total acquisitions begin to rise to a number that, to a novice, appears to be reaching...but it is my vision.



I have laid this 5 year plan out, along with other personal/ spiritual and vocational goals on that time frame. I have then broken that time frame into annual achievements (year 1 year 2 year 3 and so on), and then broke the annual achievements into monthly action items (January of year 1 etc), weekly action items and then finally daily action items.



This process has been very exhausting, but equally empowering and eye opening.

I look forward to watching it unfold and staying the course day by day to reach the goal 5 years from now.



Regards,



Dave.

 

[Thomas Beyer]

[quote user=dcaz4moores]I have laid this 5 year plan out,


Good plan !!



However, keep in mind: Man plans .. and God laughs !



Therefore I am not a big fan of long term plans. It is good to have goals. However, a lot of things could happen tomorrow, 2 months from now or 2 1/2 year from now that are so totally weird, or scary, "wow" or unforseeable that it will derail any plan: divorce, health, financial crisis, interest rate hikes or drops, oil price hikes or drops, closing of factories, explosions, terrorist attacks, death ..



Many a Wall Street banker with a sight on a 2nd home in the Hamptons now is divorced and in foreclosure .. so let's be mindful of our own weaknesses and events in life we cannot influence !



Go for it man .. but be flexible !!

 

[RandyDalton]

Hi Dave,



I have been reading your posts and have to say I love your enthusiasm and excitement for Real Estate Investing. Great plan and go for it.



However with Thomas's comments I have to include the addage about "Best made plans of mice and men". Of course you have to start somewhere but also plan for contingencies and focus on the details in Year 1. 5 years out, not so much.



I have to tell you I started two years ago. I had about 200K for downpayments and with CMHC mortgages available with 5% down planned to buy 4 million in real estate. Then came fall 2009 and CMHC said you have bought two properties, we need to see 6 months of operating with 2 before we consider you for a third. And before the 6 months were up, Government of Canada stepped up and said 20% down. Period.



Since then I have reevaluated my plan. Do it every year at the beginning of the year. Will I get to 4M? Probably not. But then I don't really need that much either.



Just remember to enjoy the journey.

 

[JoeRagona]

Dave, Have you read the 5 year action plan from Peter Kinch? It will certainly help you become clear on how you can try to achieve this. Basically, there is nothing that impossible to reach, just impossible timelines.



I too have the same amount of doors needed to achieve my Belize. But I went through a full week of non-stop analyzing to get to my gap number and the total number to live my lifestyle.



Why do you want 24 doors?



The way to achieve this is by other people's money because I'm almost certain you would not have enough capital to purchase them yourself. So, the start of the plan is to do what you say - buy your first two or three or whatever capital amount you are WILING to invest. Create your system and build a portfolio that you can prove to others is working. You then share your opportunities with others along the way to help you get to your doors.



Keep in mind, when you bring on partners, your interest in the property is lowered (usually to half) so that will double the amount of doors needed.



Make sense?