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<\/a><\/p>\nFor the aspiring fix and flipper looking for a 1099, the ones I have seen do well are those who\u00a0also own or work for a licensed construction company. One day they are adding a deck to your home with their crew, the next they are installing a new kitchen on that flip property they bought at the Sheriff sale.<\/p>\n
Related:<\/strong> 3 Reasons to Quit Your 9-5 to Invest in Real Estate Full-Time<\/a><\/em><\/p>\n Wholesalers on the other hand seem to have their hands tied. I can\u2019t seem to think of any 1099 positions that make sense for a wholesaler! I may receive some disagreement in the comments here, but it is my understanding that licensed agents have a hard time wholesaling deals because they are making money on the sale of a property outside of their brokerage. Even if it\u2019s ok with the Real Estate Commission, it is probably not ok with the owner of their brokerage. Feel free to debate me on this one or offer up some ideas that do work for wholesalers looking for a 1099!<\/p>\n So this path is not actually doing the business full time, I acknowledge that. It is, however, doing it as much as you can while you work the 1099 just enough to pay your bills. Most of those I know who\u00a0started out this way were able to leverage their relationships and income from their 1099 position,\u00a0and\u00a0within two to three years they had shifted to running their investing business as their primary focus. The 1099 became something they did either did to \u201ckeep the license active\u201d or for a change of pace every here and again.<\/p>\n So this one is the big roll of the dice. It goes like this: You live off savings, cash, credit, etc. and do this full time. It takes a humongous shot of courage, but it\u2019s one of the best motivators out there.<\/p>\n Interested? Read on.<\/p>\n Take all your liquid assets–cash, lines of credit, credit cards, and even your retirement accounts–and total up how much money you can come up with. Take your annual living expenses, living as lean as you can, and divide it into the first number. The number you come up with is how long you can live off your liquid cash and focus completely on your RE business. If you can\u2019t figure out how to do this for a year, I would not recommend it. This method is the one I see most aspiring wholesalers go for. As wholesaling doesn\u2019t require a huge cash outlay up front aside from some marketing expenses, you can push all your available cash to your living expenses. Whatever your investment strategy, this path requires a solid plan, a super strict and conservative personal budget, and lots of courage to stick with it even when you have a dry spell!<\/p>\nPath #2: Hold Your Breath<\/h3>\n
\nMy wife and I did the \u201chold your breath\u201d method to have her join me full time in 2009, and it didn\u2019t work. That was a tough year for us, but we gave it a go. After a year of living on our savings and a sporadic income from the business, we decided the best thing was for her to go back to work. I know several people who\u00a0made it work, although it was extremely stressful at the time for them!<\/p>\n
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