Thread: 2nd part of the plan...how to get to your dreams?

I've spent a lot of time over the past year really getting to know myself and taking a lot of time to think about my life. I've come up with a very clear picture of what I want my life to look like in all areas (career, financial, home, family, friends, travel, give-back, etc).

What am I struggling with is the 2nd part of the plan. Now that I know what I want, how do I get there? How do I evaluate all the possible ways to make my dream come true?

How do you go about creating this part of your plan?

I'd love to hear any advice, structure, ideas or other ways you guys went about putting this part of the plan together. I feel like I can see my goals clearly, but I also feel like I'm completely spinning my wheels trying to get there.

And I'm not really asking specifically what I should do, more interested in the thought process, planning stages, plan creation that you did and what types of questions you asked yourself and what type of market analysis you did.

Thanks,
Sid23

Sid - - - sounds to me as if you know the "vehicle" that you would like to use to grow your net worth - is that right???? (or is that part of the question?)

Originally Posted by AroundTheWorld

Sid - - - sounds to me as if you know the "vehicle" that you would like to use to grow your net worth - is that right???? (or is that part of the question?)

That is kind of the question. I've worked in real estate for the past 5 years so I think that would be the smartest vehicle for me to use.

SteveO is right. I have to analyze each of my opportunities on paper and see which ones pencil out.

I guess I was trying ask what types of analysis questions of each opportunity would you ask yourself??

I live in Bay Area, California. I feel like all of these would be good ideas, but not sure which would get me to my goals the quickest. These are what I need to analyze.

1) Continue working at my development firm as a project mgr; learn the ropes and with the hopes of taking over this firm in 5 or 10 years.
(I kind of feel like I work for the smartest RE people I've met yet - feel like they know much more than me so why would I leave?)
2) Try to start my own company doing out of state aquisition deals
3) Put an investment group together and start buying up SFHs around Napa or another area that I can rent out and eventually sell when the market turns around
4) Figure out a way to take my obsession with modern architecture and make money with it
5) Move to San Diego, start a lemonade stand and be a beach bum (which today sounds more fun than anything...rough day)



Thanks.

Ah, gotcha. Thanks!

I look at it 3-fold:

FINANCIAL ANALYSIS: I really liked SteveO's post on this one. It is in the numbers! Which area of RE will give you the best return? Which has the biggest potential (to grow net worth)? Do your research. You hang out here.... I'm sure you know the areas in real estate the can return the BIG MONEY (Apartments, SteveO Style, Self Storage, Big Commercial Deals, or Developments). Pick One.... Make a Decision. Almost sounds like you might be stuck in analysis paralysis? Do your research - - - based on potential and your own skills and knowledge base - - - and PICK ONE!

LIFESTYLE ANALYSIS: Can you do both? (Continue to work and build a REI biz on the side) Do you have the time? Resources? For most people, this is what makes sense..... Stay at your day job, and start the financial freedom activity on the side. Then, you can make the "jump" down the road from the JOB.

Which area will bring you a satisfactory lifestyle WHILE YOU BUILD and AFTER YOU CONVERT to cashflow. This area is not one that we considered at first. We did deals without taking this into consideration and our lifestyle has been impacted at times because of that.

EDUCATION. Sounds like you are already thinking about this.... You know that you are hanging out with some smart dudes. Which brings me back to... Does it have to be either/or?

Originally Posted by AroundTheWorld

EDUCATION. Sounds like you are already thinking about this.... You know that you are hanging out with some smart dudes. Which brings me back to... Does it have to be either/or?

ATW, thanks for a great post. What did you mean by the above paragraph?

I need to dig further into the numbers and maybe I'll surprise myself, but I don't see how anything will make me more money than development. My boss always says, "I like apartment deals because I'll make a million, but I LOVE development deals because I'll make 5 million!"

In general, I tend to underestimate what I'm capable of...and I think you are right. I'm definitely in "analysis paralysis." I'm scared to decide on anything other than development and sell myself short (might not be the truth, but that's how it feels).

I also have a tendency walk away from opportunities too soon. I've done that a couple of times in my past and I'm making sure I don't do that here. I kind of feel that to excel at this development firm, I have to give it 110% and that honestly I won't have much, if any, time to build a side business. I feel like if I start and work a side business, that is my way of telling myself I've decided against staying on the development path.

The problem I see though is that development in my area has to be done thru big firm or firm with lots of resources and connections (we are only 6 people, but my bosses ran 2 of the big national firms for years so have plenty of contacts, connections, etc.). These are not connections I could gain in the next few years. You also need to be able to wait 5-7 years for return of capital.

My bosses have told me they want me to take over someday (if firm is still alive)...but that is probably 7-10 years away minimum. Plus, I want to be on my terms and kind of feel like i'll always be "under them", even if i'm running the firm.

Owning cashflowing apartments seem like the best fit for my lifestyle, especially because my fiancee and I both have family spread all over the country that we want to visit as much as possible.

I guess I'm just confused and after reading my post, a bit scared of making the wrong decision. I want my freedom, but I don't want to leave a golden opportunity on the table, either.

What is the worst thing that could happen if you make the wrong decision.....

Say you pick apartments. And, say - - - it is the "wrong" decision.

First of all: How would you know that it was the wrong decision?
Secondly: What is the worst thing that could happen?
Thirdly: And then what would you do if that happened?

Originally Posted by AroundTheWorld

What is the worst thing that could happen if you make the wrong decision.....

Say you pick apartments. And, say - - - it is the "wrong" decision.

First of all: How would you know that it was the wrong decision?
Secondly: What is the worst thing that could happen?
Thirdly: And then what would you do if that happened?

1) Probably if I left to try my own deals only to see my old firm cashing out huge on the projects we are currently working on and not getting a cut of that.

2) The worst thing that could happen as I see it is that if I picked apartments (example), that I work at my firm for another 2-3 years and then start my own apartment deals. I see worst case scenario as realizing that had I stayed in my firm and continued to work on our deals, I could have been a millionaire without making major life changes. We have several deals that are ongoing, but won't know anything for 3-4 years minimum profit wise.

3) Not sure what I do. I would like to say "Make sure without I doubt I make whatever venture I am working on at the time successful" but I worry that I would just beat myself up over making the wrong decision.

Originally Posted by Sid23

1) Probably if I left to try my own deals only to see my old firm cashing out huge on the projects we are currently working on and not getting a cut of that.

Would you feel that way if you stayed at your firm, and then someone you knew... such as someone on this board... cashed in big time on an apartment project? Or, what if you stayed and your firm didn't survive the next 2 years? Or what if.... nevermind.

It is impossible to know what will happen.

It is also impossible to measure YOUR success based on the success or failure of someone else.

A savvy investor in the stock market knows that he will never hit the exact bottom or the exact top of the market. He/she will be happy to catch the trend. It is hard to "leave money" on the table until you realize that the world is abundantly full of both opportunity and money. Once you know that, you see that there is no right and wrong decision. There is only the choice you make and the action that you follow. It will lead you to the next choice and the next circumstance and the next action. Rather than looking at what you might miss out on (a scarcity world view) focus on what abundance you can create for yourself (and it sounds to me as if you have two great choices for creating abundance).

Originally Posted by Sid23

2) The worst thing that could happen as I see it is that if I picked apartments (example), that I work at my firm for another 2-3 years and then start my own apartment deals. I see worst case scenario as realizing that had I stayed in my firm and continued to work on our deals, I could have been a millionaire without making major life changes. We have several deals that are ongoing, but won't know anything for 3-4 years minimum profit wise.

3) Not sure what I do. I would like to say "Make sure without I doubt I make whatever venture I am working on at the time successful" but I worry that I would just beat myself up over making the wrong decision.

Really? That is the worst case scenario? I was waiting for.... I would find myself living in a cardboard box under a bridge in the freezing rain.


Also - - more importantly... this sounds like "scarcity" language again.

• I moved to a new town a few years ago, and someone that I know tells me that my old town is booming.
• I ate out at the Olive Garden on Thursday, and someone told me that a really cute waiter was working on Friday.
• I went skiing on Sunday, but it snowed on Sunday night and I missed out on some great powder runs.

or

• I moved to a new town a few years ago, and I have been creating some great opportunities for myself here. I enjoy my new lifestyle and my new town.
• I ate at the Olive Garden and had the best meal that I have had in a month. It was great food, nice atmosphere, and awesome conversation with my hubby.
• I went skiing on Sunday. The sun was shining and it almost felt like a spring day.

How does one change their thinking from a scarcity mindset? ATW, your points are dead on...

Originally Posted by Runum

Dog gone, ATW, you're good.

Agreed!

My thoughts on scarcity vs. abundance:

http://www.thefastlanetomillions.com...your-mind.html

So, Sid...

How are things going for you?

Sid.... update dude!

Originally Posted by AroundTheWorld

Sid.... update dude!

Sorry, sorry! Will updated soon...really busy day.

Still really busy?

Originally Posted by AroundTheWorld

Still really busy?

Uh oh Sid. She's on to you now, better answer.