The Big Picture

4 Replies

Hello again biggerpockets community!

From my last posts, I have had a change of plans. I first wanted to invest before I graduated college, or maybe got an owner occupied property out of college after I have worked at my job, but I have now came to the conclusion that I am dropping out of college to move to Tuscon, AZ. I would like to be a real estate agent, and do investment properties. I am hesitant to call it my "side business" because I would like to be able to do it full time, and actually start a company by doing this. My main goal is to be a millionaire in 10 years. 

I have a rough outline, and I hope that I could have some help solidifying this so I can use it as more of a guide than just an outline. I was thinking after working at my job for a year or so, I can save up enough money to buy an owner-occupied flip/rental using a FHA 203k loan, and starting off there. I then would want to do about 2 flips per rental property. I have read "No (and Low) Money Down Real Estate Investing" by Brandon Turner, and I am dedicated to use my creativity instead of cash by using various methods to accomplish this.

Do you guys think doing 2 flips per rental is a good strategy? If I wanted to make this my full time job, and company, what would be the best way to automate and delegate tasks so I can focus on other ventures? I was thinking of a wholesale manager that basically generates leads along with a marketing team, and take the great properties and pass it through an acquisition manager to see if we would want to purchase it though the business. We would then take the other contracts and sell them to other investors. I believe this as a rough outline but this is sort of the route I would want to go.

Thanks again for your time,

Kyle

I think the outline while rough is workable. I would not quit the day job or college until you have your business well underway, but certainly that is a very personal choice to make. I love the concept of flips or wholesaling to the cash needed to acquire a buy and hold portfolio. The marketing pipeline and system you put in place for your wholesale or flipping business will allow you to cherry pick the best deals to keep as your long term rentals. Good luck.

Sounds questionable to me. But, I don't know all your details.

How much capital do you have? How much is your annual income? How will you qualify for loans with no job? Why Tuscon? What's plan B if the RE market goes soft? How much revenue do you think it will take to pay all that staff you're planning?

@Chris Stromdahl Thank you for your response to my post. I am not looking into starting a wholesale business directly, I am going to save that for when I have more capital and a good marketing plan. I will definitely keep those tools in mind though, because it looks like they could be extremely useful.

@Dylan W.   Also, thank you for your response. I am definitely not quitting my day job until I can provide sufficient income for the bare minimum, and also some money for investing. I am leaving college to get a head start on my business, because this business has no ceiling, and I believe the earlier I start, the more money I will make in the long run, and earlier I can retire or do other business ventures. Though I could just save up money for years to buy a rental property, I also believe it is a good idea to flip or wholesale for cash to acquire my buy-and-holds, and sort of speed up the process of achieving my goals.

@David Hood It is questionable now. I am not saying I am going to do this right now, I am going to take my plan of action over the course of a year or two. I do not know how much capital I would have, though I would like to acquire at least $10,000-$15,000 in cash for my FHA 203k loan, as well as having an emergency fund for minor repairs, capital expenditures, vacancy, and so on. I chose Tucson just because my brother is there, and he said he will help me get on my feet while I get started in the real world. The plan B if the RE market goes soft and I am not able to invest, is to get still save up cash for the market to bounce back. I do not believe there is anything else I can do investing wise. If the market is bad and I am failing as a real estate agent, then I will work as sales in another industry primarily for the unlimited potential of income. How much revenue will it take to staff my employees? I am not sure, this is something I will have to think about 8-10 years down the line when I actually need my first employee.

Thanks again guys!

Kyle

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