Enough is enough and I've had enough
Hello fellow BP members. I currently live in Sarasota, FL area and have really had enough.
I've been working a J.O.B. for long enough. I read RDPD a couple years ago and it definitely piqued my interest into REI. I've tried starting a few times but keep getting held up by either paralysis by analysis or that fear of failure. I've decided that it's time to stop letting those two roadblocks keep me from the financial freedom I want for my wife's and my future and I have simply had enough of working a J.O.B.
I live in Sarasota, FL and am wanting to start by either wholesaling or flipping (I don't want to BRRRR yet simply because I want to get at least 15 deals under my belt before I even look at that). I want to connect with other investors in the area (Bradenton, Sarasota, Lakewood Ranch, Venice, North Port, etc.) and start learning and growing. So if you are in the area and do wholesaling or flips, I want to connect with you and see how I can best help YOU (and in turn help myself). I'm ready to learn and grow!
Originally posted by @Jim K.:Originally posted by @Samuel McCart:I appreciate all your feedback and advice/tips!
I am well aware that REI is not a get rich quick or that it is a "work 2 hours a day" type of business. The main goal of my post was to seek out investors in my area to network with through this wonderful community. @Scott Wolf that is a fantastic idea of the meetup type app and utilize that.
The nice part is that I'm definitely not going to be quitting my job until I get to a place where I feel comfortable doing so and jumping into REI full time. I don't like my job, however, I can still perform it enough to pay the bills and use that extra cash to start investing.
In that case, it might help to look closely at strategies to start minimizing those bills so you can maximize how much investment capital you can put together.
You are in good company. I don't like my job, either. And to explain the reaction of the community to your initial post, you would probably have difficulty believing how many newbies these forums get on a weekly basis that are dying to quit their jobs immediately, IMMEDIATELY so they can go on to what they believe is the easier money and shorter hours of real estate investing. It's nuts, Sam. Anyway, good luck to you!
@Nick C. 💯 % accurate. Also don't get overleveraged and get wiped out in a slump. Slow and steady, build generational wealth.
I'll echo what many others are saying in their responses. I'd advise to not quit the job but rather figure out a way to start your RE investing journey while you still have income it will be much easier that way. Whether it's investing in your first deal or whatever angle, there is going to be a lot less stress if you have a day job as it can take years to really see yields on RE investments.
Bravo @Samuel McCart ! I hear you and I'm with you!!!! I made that same decision a few months ago and am on the hunt for my first -plex rental. I made some really good connections through BP, but also watching podcasts on YouTube and other social media. Find your local REI group to meet like-minded folks. We have a group on the Orlando area and I read a posting of one of the hosts and reached out to him here on BP. That led me to the group's Slack and on there an invite to a group meeting at one of the investor's investment property rehab. Made good connections there, found a realtor, other folks who do rentals (as I said), even a notary! Hope this encourages you to keep your fire and momentum. You will find your connections and your first deal. Just keep going. No one knows your story, your strategy, or your plan but you. Go get 'em! And congratulations on making the decision!
I have seen many guys building spec homes that have made a good amount of money in a year not because of anything they did as much as the market went up about 20% while they were building. You just can't count on it. The less sexy, longer why to build wealth through real estate is about as sound and guaranteed as an investment can be.
@Samuel McCart You might want to check in with @John Thedford to talk about the legality of unlicensed wholesaling in Florida. (Hint: it's illegal).
As others have said, you might consider getting licensed as a Realtor. The barriers to entry (at least in MA and ME where I was licensed) are VERY low, but you have to invest a lot of money in marketing yourself and probably 3-4 months to your first paycheck.
One other piece of unsolicited advice, gained from painful personal experience. Reading your posts, it sounds like you have a severe case of the "hardly waits", as in "I can hardly wait to quit my 9-5 and become financially independent." The hardly waits is a disease the will cost you money.
I've been there. I could hardly wait to date that girl, take that job, make that investment, etc, etc, etc. I have come to learn that when my brain is in that mode, I don't make good decisions. I overlook pitfalls and minimize others, because all I can see is that greener grass.
It might be worth taking a step back and taking a deep breath. Maybe put together a solid game plan with a couple of trusted friends or advisors. In fact, you might want to have a meeting with www.SCORE.org. (Service Corps of Retired Executives). That's a free service that, depending on who you get as a mentor, can be an enormous help.
Good luck in whatever you decide.
Originally posted by Peter McKernan:@Samuel McCart sounds like you are ready to move on and get educated to be able to take on the real estate world in full force. I would get your hands on as many books, keep listening to podcasts, go to local meetups, meet with local investors, and hire a coach if possible when you get to a place that you can afford it. Those things will put you on the fast track to being a true professional that is successful in your own market and in real estate!
Trouble with books is that they're out of date by the time they hit the press.
Podcasts are just more, as @Joe Villeneuve said, info - and mostly anecdotal.
Local meetups, etc. will help you build your network of contacts.
There is some serious education available. Here in this forum, however, that's all I can say. Private message me and we can discuss.
I wouldn't actually recommend hiring a coach until you get educated and have some value to offer in return for what you might learn or develop with a local mentor. Use your networking to find someone you can work with.
My $0.02 ...
@Joe Villeneuve so what would you suggest? I am a nurse by W2 and I work 50-55 hours a week so do not feel I can take on a major rehab without a partner running the project.
I have a REI mentor but I feel like I am just getting "bits and pieces" ….not a clear path forward. I am not discouraged, just unsure how to clarify my next best step.
I have one SF and I am house hacking. My goal is to obtain a HELOC this next summer, take the equity as a down for a duplex or SF with an ADU to break into the STR market which is good in my area.
Any advice on a upper division "class" on REI to put the pieces together?
@Samuel McCart
Sam,
I think it is great that you want to start in RE. Like many others that have responded I think you should look into house hacking, brrring etc. For house hacking I would get a 4-plex and live in one unit. Flipping houses is just a high paid job that is taxed at a very high rate.
I think you’ll find it will be more beneficial to own rentals and be a buy and hold investor. Also no matter how much you know real estate you want to study macro so you know any potential cross currents. Cash flow also allows you to hold the investments.
Originally posted by @Lesley Resnick:"I an't gunna work on Maggies Farm no more" Is the battle cry of BP.
Be careful jumping off that bridge.
Things to consider:
1. If you leave is there a path back to that job or industry? Many careers do not allow you to jump back in.
2. What will you do for health care?
3. Do you have enough cash to pay your bills for 6-9 months until your first deal is completed?
4. Will you have enough working capital to complete the project?
5. What happens if your first full time deal goes sideways or does not yield much?
6. Have you taken as much Fannie Mae conventional / HELOC money as you can get. Have you open as many credit cards as you can based on your w2 income.
7. Should you sell your primary home? You may consider selling, renting or downsizing? Should you try to buy a duplex and live in one side. Can you take on a room-mate?
8. Could you do something to make the J.O.B more tolerable.
9. Could you do both? Perhaps be less focused on the day job and more attention to the RE.
10. Will you / spouse be able to sleep if this is not a home-run from day one? It takes time to really figure out how to make money consistently. It is likely you will struggle for a period of time.
If the only reason you are leaving your job is because you hate it and have not been planning the move for 6 to 12 months. Don't do it, unless you are flush with cash and didn't really need the job in the first place. There are no podcasts on, "it did not work out and I went back to my J.O.B." No one tells that stroy, except your angry aunt who, "told you so".
Dang Leslie, but everyone says I can be a millionaire without a dime in my pocket doing wholesaling and using "OPM" if only Id just go do it. Its supposed to be EASY dammit!
@Rebekah Hitt I think your STR strategy is a great idea. The key to profitability is learning how to self manage. There's a ton of info about that on the Short Term Rental forum. Reach out if you want to connect. Good luck!
#4 All Forums Contributor
- Plymouth, MI
Originally posted by @Rebekah Hitt:@Joe Villeneuve so what would you suggest? I am a nurse by W2 and I work 50-55 hours a week so do not feel I can take on a major rehab without a partner running the project.
I have a REI mentor but I feel like I am just getting "bits and pieces" ….not a clear path forward. I am not discouraged, just unsure how to clarify my next best step.
I have one SF and I am house hacking. My goal is to obtain a HELOC this next summer, take the equity as a down for a duplex or SF with an ADU to break into the STR market which is good in my area.
Any advice on a upper division "class" on REI to put the pieces together?
you answered your own question. You're just getting pieces. What you need is to be able to put together an actual plan based on a series of financial criteria leading to the ultimate financial goal. Every step of that plan leads directly to the next step, and so on. You should never say the words, "I just closed on property number (fill in any number here). Now what do I do"?
First, you need to define your specific financial goal. Notice I said the words "specific" and "financial". So your answer would not be, or any form of, "I want to be financially independent", or "I want to be able to quit my job", or "I want to get out of the rat race". Remember, I said "financial" and "specific". Those three common answers to the question of "what's your goal", are the results of what your financial goals will deliver.
I would say, at this point, don't do anything more until you've designed that REI Plan.
#4 All Forums Contributor
- Plymouth, MI
Originally posted by @David Dachtera:Originally posted by Peter McKernan:@Samuel McCart sounds like you are ready to move on and get educated to be able to take on the real estate world in full force. I would get your hands on as many books, keep listening to podcasts, go to local meetups, meet with local investors, and hire a coach if possible when you get to a place that you can afford it. Those things will put you on the fast track to being a true professional that is successful in your own market and in real estate!
Trouble with books is that they're out of date by the time they hit the press.
Podcasts are just more, as @Joe Villeneuve said, info - and mostly anecdotal.
Local meetups, etc. will help you build your network of contacts.
There is some serious education available. Here in this forum, however, that's all I can say. Private message me and we can discuss.
I wouldn't actually recommend hiring a coach until you get educated and have some value to offer in return for what you might learn or develop with a local mentor. Use your networking to find someone you can work with.
My $0.02 ...
My added two cents...
The last thing you need to do before you start moving forward buying is to develop a Financial REI Plan that is specific to you, where each step along the way carries a specific set of financial criteria that must be accomplished before moving on, because the next financial step is based on the previous financial step leading directly into it.
You think too much, and you are motivated by a hatred of your day job. So you dont have the right mindset and are bound to fail.
take a step back. Breath and relax. Stop setting criteria, like no brrrs, until you've done 15 transactions. That's rediculous. You should do as many brrs as possible.
you want to be a real estate investor? Go buy a house, paint it, and rent it out to a nice family. After 1 year, I guarantee you'll have all the experience you can handle.
Take a look at the County Foreclosure Auctions. It is just another facet of learning Real Estate. Many flippers purchase properties at these auctions. Good luck!
- PropertyOnion.com
- (561) 430-2616
- https://propertyonion.com/
Hello Mr. McCart,
I'm glad I cam across this post, as I am a Loan Analyst located in the Sarasota, Florida area.If you would like to connect on some of these deals and possible pathways forward for you (and your wife) please send me a message!
Thanks and have a great day!
-Nick Jacobs
Wholesaling and flipping are both jobs. RDPD was written around the concept of investing, not just trading one job for another.
As @Bill F. pointed out, we are in the hottest job market in a generation. As companies are desperate for qualified people, so now is great time to change employers and get a higher wage.
I would also argue that now is the worst time to wholesale or flip in a generation. These businesses are saturated with experienced people, who are seeing margins deteriorate due to competition. I am not saying someone can't be successful, but if you are picking up a new job, why not focus on your area of expertise?
If you want to leave your job, focus on acquiring cash flowing real estate. There are many ways to do this. Nothing wrong with wholesaling or flipping, but most anyone who gets into that eventually transitions to buy and hold (or they are only doing it to fund buy and hold investing).
@Joe Villeneuve thanks for the honest reply: definitely gave me some things to consider and think about moving forward. I want to make the next best step for me......not just a step!
I would say my financial goals are to replace the $3000 settlement amount that will end in February 2023 by that time for now.
My longer term goals are to own 6 properties through BRRR by 2028: one property by this summer 2022 using a HELOC on my primary residence. I have a pretty good W2 and my goal is to save $40,000 by July this year to either use in addition or keep as cushion for the rental property. I plan to rent either long term or STR depending on where the property is. I plan to focus on renting to nurses and medical professionals and would consider rent by room to give me another option. My primary residence is about 3 minutes from AR Children's Hospital and about 10-15 minutes from two other hospitals in the area as well as UAMS medical school.
#4 All Forums Contributor
- Plymouth, MI
Why 6 properties? Why not one, or 20? How did you arrive at that number?