Blue collar Career change
Rental Property Investor · Coopersburg, PA · Member since 2023 · 4 posts · 2 votes
Blue collar Career change
Most Popular Reply
Member since 2021 · 116 posts · 79 votes
3yShawn,
There is always a need for good, reliable contractors. Do you have any experience with contracting? What is your specialty? Does your state require a license? These are all important questions to answer before you change careers.
You can also look at opportunities for joint venturing with someone who has money but no time or experience to get a rehab done. If you attend your local REIAs, you have the opportunity to network with investors who may need your skills.
Feel free to reach out if you have any questions
4 Replies
- Member since 2021 · 116 posts · 79 votes3y
Shawn,
There is always a need for good, reliable contractors. Do you have any experience with contracting? What is your specialty? Does your state require a license? These are all important questions to answer before you change careers.
You can also look at opportunities for joint venturing with someone who has money but no time or experience to get a rehab done. If you attend your local REIAs, you have the opportunity to network with investors who may need your skills.
Feel free to reach out if you have any questions
Try it on the side on your days off (and after hours as needed) before you bet the farm on it.
Be upfront with customers about this.
If you are good (and can communicate effectively) you can build up a customer base before deciding to go at it full time.
Maybe use helpers who also do good work, and make a little markup on them on the job.
Bank all of the money you make from this. $100,000 is a lot more powerful than $10,000.
Just my 2 cents.
- 3yScott TrenchPro MemberRental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
@Shawn Prushinski - In your shoes, I'd be thinking to myself about how (relatively speaking) easy it is to be a successful contractor and small business owner. I'd be building up a cash position by working as many extra hours as possible, and then setting up and working both IN and ON a small contracting business. If you show up on time, quote accurately and are honest and straightforward, with great documentation, I'd bet you can build a seven figure contracting business in a few years at 30% margin or more (hundreds of thousands per year in PROFIT).
With the proceeds, you can buy all the real estate you want, and/or have your crews work on your real estate projects when they are more profitable than client facing work, or when your pipeline is running low.
I'd honestly consider this approach, and then use the income from 2-3 years from now as you get your business going to buy real estate.
And, yes, if you go into a contracting field that will give you broad exposure to residential construction, that will be more synergistic with a future flipping/BRRRR strategy than industrial maintenance. Although, industrial maintenance is also not a bad option, if you set your sights on buying industrial properties.
- 3yMatthew MorrowBusiness MemberInvestor · PA - NY - NJ · Member since 2019 · 627 posts · 219 votes
Good Contractors are VERY difficult to find. Once you find one- we stick with them.
With 10 years experience, you definitely have some valuable skills that can translate well into contracting for residential real estate investors. Here are a few points to consider as you contemplate this transition:
- Skill Utilization: Your experience as a tradesman equips you with a strong understanding of construction and maintenance, which are crucial aspects of real estate investing. Investors often seek contractors who not only perform quality work but also understand cost-effective solutions and time management.
- Local Relationships: Your plan to build local relationships is spot-on. Networking with real estate investors, property managers, and other professionals in the field can open up opportunities for collaboration. As a contractor, you can showcase your skills and reliability, which could lead to partnerships and referrals.
- Adding Value: Investors are always on the lookout for contractors who can add value to their investment properties. Whether it's renovating a property to increase its value or ensuring timely maintenance, your ability to enhance the properties will be a significant selling point.
- Market Knowledge: Transitioning to contracting for real estate investors will require a solid understanding of the local real estate market. This includes knowing about property trends, rental rates, and demand in different neighborhoods.
- Risk Management: While the potential rewards are appealing, it's important to be aware of the risks involved. Fluctuations in the real estate market, project delays, and unexpected costs are all factors to consider. Building a solid business plan and financial buffer can help mitigate these risks.
- Education and Licensing: Depending on your location, there might be specific licenses or certifications required for contracting in the real estate sector. Make sure to research and comply with any legal requirements.
- Continuous Learning: Real estate is a dynamic field, and staying updated on industry trends, construction techniques, and design innovations will enhance your appeal to investors.
Before making the leap, I recommend doing further research and seeking advice from professionals who have experience in both real estate investing and contracting. Consider talking to local real estate investment groups, attending workshops, and reading up on relevant resources. If possible, you could also consider starting small by taking on a few smaller projects to get a feel for the real estate contracting landscape.
Remember, every career change comes with its challenges, but your background provides you with a solid foundation to thrive in the real estate industry. Best of luck on your journey, and feel free to ask if you have any more questions!
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