Up until 2018, I didn’t give much thought to goal setting. Without goals, I was a bit of a drifter. Working as an electrical contractor, I was drifting along without any direction.

My savings were going down rapidly, and my personal finances were a joke. Basically, I spent more than I earned, and my plan was to worry about it later. If this continued, I was heading for financial pain in my later years.

After watching a lot of Tony Robbins material at the end of 2018, I finally wrote my goals down. And a big part of my goals were my property goals. Basically, I want to be Financially Independent, and my aim is to do property full-time.

My biggest mistake to date

Part of DUFFMONEY is lessons learned. Like a recent post about How NOT to invest. There are quite a few lessons or mistakes as I have been poor with personal finances in the past.

Looking back, not writing my goals down was possibly my biggest mistake. I spent 10 years being negative about money but didn’t know what to do about it? I had no goals and no financial plan in-place.

After writing my goals down in late 2018, things have improved. Like buying another 4 rental properties and learning how to do index investing with confidence. Now I have my goals written down, I have clarity and know exactly what I want. This means I have a target to aim for.

Before getting started with property goals, I started with the figure needed to get some early FI. For you, this might be £2k pcm or even £10k pcm. We are all different. My target is £4k pcm.

How to get the target figure

Once you have your target figure, you need to understand The figures. This is if you are like me and are looking to get a property portfolio so you can be a full-time property investor.

How much you make per property pcm depends on the type of property (single let, HMO etc) and the area (how much rent can be achieved).

From my experience, I can make a conservative £250 pcm from each property. This is based on a 2-3 bed single let in the North East. That is x16 properties to get my target of £4k pcm. But I want it to be passive as possible and want to hand my properties over to a letting agent. See below for a brief summary of how I will eventually hand my properties over to a letting agent:

  • Stage 1 – work and be part-time landlord
  • Stage 2 – do less hours at work and property investing
  • Stage 3 – do property investing full-time
  • Stage 4 – get properties managed

With my current portfolio, I have x7 single let properties. To get to my target figure of £4k pcm, I need another 9 single let’s to get to 16 single let properties. With no spare money, I am at a point where I need to get creative. I do have some index funds and crypto, but I am reluctant to cash in as I like to have diversification with my investments.

Getting creative

Even if I manage to scrape £25,000 per year (from remortgages for example), that is x1 property a year. This means another 9 years to get to my target of £4k pcm. I am patient, but I’m not that patient.

A fellow property investor (Gary) who I have built up a good relationship with, has given me a little kick up the ass. And this is the benefit of having a property network – like what I was discussing last week.

Gary is doing deals with HMOs and is talking about Serviced accommodation. He even mentioned doing a JV (Joint Venture) with me on an HMO a few months ago. Unfortunately, I had my hands full with an extension on my home and couldn’t commit. After speaking to him in recent weeks, I have decided I need to up my game and get more cashflow coming into DUFF PROPERTIES.

I have a solid foundation with 19 years’ experience of single let’s, and it is time for a little change. It’s time to get creative and increase my cashflow. Like a 6-bed HMO that has the potential to bring in £1k pcm in profit. This is the equivalent to x4 single lets and means I reach my property targets much sooner.

What if

If I get creative, I might just be able to secure x3 HMOs in the next 3 years. It’s not crazy. It’s very achievable and it is a conservative target.

Let us imagine the x3 HMOs bring in £1k pcm in profit. That is £3k pcm profit coming into DUFF PROPERTIES. With my existing cash flow of £1750 pcm (x7 single lets), this means I smash through my property goals and achieve £4.75k pcm within the next 3 years.

This means that I have FI (Financial Independence) in 3 years instead of 9 years (if I continue doing what I’m doing).

What to do

From my experience, writing your goals down will have a positive effect on your life. Focusing on your property goals will have the same effect if you are a property investor or potential property investor.

Get them property goals written down and start heading towards them with clarity and focus. If you like this weeks blog, please leave a comment and let me know what your property goals are.

Book of the week: Rent 2 Rent success, by Stephanie Taylor and Nicky Taylor. This is the book for you if you are just starting out in property or have run out of funds. It offer’s creative solutions to help you build a successful property business with little or no deposit money. An excellent read that demonstrates what is possible in property with a change in mindset.

For a hard copy visit the excellent Imagined Things Bookshop: Imagined Things.

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