Feeling overwhelmed

15 Replies

Hi everyone my name is Lorenzo I am new to BP and real estate investing. I will try and make this short, but I currently work full time in the insurance industry selling home, renters and condos insurance. I am also enrolled in real estate school for my sales license only about 5 classes away before I take my state and natl exam. I am in a bit of a funk tho asking myself did I make the right choice by going to school and getting my license or should I have just built money over the next couple years at my day job and start investing from there. I make about 80k a year currently and just feel I am stretching myself thin between school, work and family, Oh and btw I currently rent myself. I am looking to buy a home within a year for me my wife and our new born.I guess I am just in a bit of frustration and feel like I am losing time as each day passes by. Any input would be helpful and thank yo 

Lorenzo, when you get a moment give me a call. What you need is a real person that will help you see the different paths you can take as Realtor or a Real Estate Investor or both. It's all about understanding what's ahead of you when you decide to take a certain path. Perhaps I can shed some light. I'll wait for your call. 

You'll learn a lot in those classes compared to the price you pay...even if you don't end up using your license to actively represent buyers/ sellers.  I work full time, taking my license classes as well, and have an 18 month old :)  Major difference is I started a few years ago and i'm trying to close on my 3rd property.  Your job sounds like some math is required...that plus some common sense is mostly what you're getting into for rentals.

In my opinion you could kill two birds with one stone and get a duplex and live in one half and rent the other.  You can get a traditional loan this way, get a taste of the rental business, give yourself a great way to move out and continue renting it with cheaper holding costs.

@Phillip Gonzales  

Congrats on deciding to be a real estate investor. It is a great career. Now to your questions. There is a division of opinion on should you get your RE license. My OPINION is that you should not as it is a lot easier to acquire some properties without a commission getting in the way. Sometimes in this market, 6% can kill a deal. The knowledge that you have learned in those classes puts you heads and shoulders above 90% of the investing public and you should use your knowledge to your long term benefit. Acquire some money, spend time with your family and build a good foundation. As far as you renting; go learn some zero money down methods and go get your house under a lease/option or subject2 and start your life out anew in 2015. Hope this helps.

Thank you for the responses..Idk why BP wont let me tag names so thank you and Scott I will definitely reach out to you. @Joshua Springer  feels like I am on the same path with you and yes I have even thought of furthering my options with my re license and property casualty license maybe opening a firm I am not sure I should look into a duplex especially if I plan on moving out in 4 years to a home, but thanks for the info and best of luck to you! Bill P. Thanks for the feedback I have never really thought about the info I am getting but you are right! 

why would you not want to get a duplex if your going to move in 4 years?   Not sure how that factors in. You buy it, rent out half live in other. . Assuming monthly costs are lower based on shared burden. . Save more money buy a house in 4 years and then rent both sides of duplex to make it cash flow. This assumes you do the math ahead of time to make sure it can support itself without you living there. 

The duplex idea is an excellent one! I have attempted to do this, but the duplexs in The Bay Area is upwards of 750k...not to feasible. @Phillip Gonzales  from what I know, you are in a pretty good part of the country for real estate, I think you should consider that option, if the family will go for it of course! 

Originally posted by @Eric Giovannucci:

The duplex idea is an excellent one! I have attempted to do this, but the duplexs in The Bay Area is upwards of 750k...not to feasible. @Phillip Gonzales  from what I know, you are in a pretty good part of the country for real estate, I think you should consider that option, if the family will go for it of course! 

Eric, if you use an FHA loan, they use 75% of the rents from the other unit to add to your gross income to qualify you for the loan (for the debt-to-income ratio, or "DTI.). Sometimes you'll find that you're paying LESS mortgage and qualify for a bigger place than you would otherwise be able to afford. (Duplexes are usually cheaper than SFH, per square foot..) Just FYI. That's what I did because the SFH options were so much money out of pocket every month on the mortgage (without tenants to help pay it *all in my case*)..

@Joshua Springer  you are right I mean max would be five years I want my baby to go to a certain school district. It would make more sense to do that then get a single family home and rent it out. twice the profit in the long run! @Eric Giovannucci  wow that is insane my friend, but I have a few friends who have gotten some really nice duplexes in the arizona market so I would have to agree with you on that. 

Hey @Lorenzo Gonzales, I feel your pain. As a fairly new investor I get overwhelmed too. I want to move forward in five directions at once sometimes. As a family guy who wants to get more into investing I'm familiar with your status. I would maximize the fact that you have a steady W-2 job. An FHA loan with 3-5% down on a 2-4 unit place would seem like a great place to start to me. I bought a triplex with an FHA loan a couple years ago and now it is producing cash which I am socking away for our next down payment. I too am working on getting my license. I feel it will expand my options. I would also suggest getting savvy on finding and recognizing great deals. I'm working on that myself right now. I figure if I start digging up some great deals, that will open a lot of doors/opportunities. And of course, doing what you are doing right now, being active on BP (adding that picture on your profile would be a good little next step too).

Good luck, stay positive.

Once you are licensed, you are obligated to comply with the Arizona Department of Real Estate rules and regs.  Particularly in the area of disclosing that you are licensed (active or not active) in all your real estate dealings.  

@Orion Walker  thanks for the positive feedback! Yes you are right I do not plan on leaving a job like I have for a while until I have a better opportunity to do so with my real estate investing or other business and I was looking at properties with what you said and I actually found some decent and really nice properties even some 4 plex's for 180k. I am just trying to learn as much as I can though and thanks again best of luck to you on your venture. @Arch Jeffery  Yes that I am familiar with I guess I am just more concerned I am wasting time on the license then actually looking for real estate investments 

@Phillip Gonzales  Don't forget. You have a newborn. It's impossible to not feel overwhelmed when you're not getting a full night of sleep and everyone in the family is learning how to exists with the new tiny addition. 

This is not about work or your license. The classes are not that time consuming and will be over soon. Get some rest. You'll feel better!

Congrats on the baby. It will be the best thing to have ever happened to you (and sometimes the worst) :)

@Phillip Gonzales hang in there. With W2 income it is much easier to buy real estate. It is also a more stable income with the little one. I second the buy a duplex idea, it would achieve multiple goals. The knowledge you gain from the classes is helpful even if you don't get your license. You can also take the CRS 2 day classes which are intended for Realtors even if you don't have a license. At least you could when I did about 7 or 8 years ago. They were a little confused about non realtors taking the classes but checked and confirmed it was ok. The investment class was a favorite of mine.

I am really happy to have found this community.  When I first started in real estate acess to good information was much harder to find.

@Dawn Brenengen  you are very right its been a hectic schedule for me and the family thank you I am really happy. @Anna Shaver  I have heard from a few people that a w2 makes a pretty big difference vs self employment. I can't complain the job I do is working from home too so I love it! Do you have your RE license? I have a few more to finish and then we'll see what happens :) 

@Lorenzo Gonzales   I did have my license but I let it go and went back to what I did before I did real estate.  I enjoy buying and holding houses more than being a realtor and my w2 income supports my real estate habit/hobby lol.. my husband laughs at me because my hobby makes us money.  He isn't complaining though.  I don't regret it because I worked with both buyers and sellers and was able to get good experience to understand the process from both sides.  By following through with it I have a better appreciation for the work involved.

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