Hi Bigger Pockets Family!
28 Y/OI am a big listener since 2015 and I am just dying to begin my career to invest in real estate someday. I do not usually ask for help for stuff like life advice but, I believe this is a community that can give me some great feedback since I am serious about working towards being an owner of many properties one day. I don't really have many people to turn to since most of my friends do not work in Estate and aren't extremely wealthy. Infact many of them keep telling me to get a governent job like them or a blue collar job and just put in my "hours" and save!!!! But thats not me! I want to work hard and make stuff happen by investing and waiting for that day when the wait was worth it! Thank you in advance for reading and I would greatly appreciate some feedback from anyone who has been in my shoes at some point.
- Family owns a 4 unit which I grew up doing basic remodeling with my family. Currently finishing a full remodel of a unit; new everything-kitchen, hardwood floors, the works. 11K investment with hired labor. First complete remodel in the apartment (Ton of sweat equity, 70% labor completed by myself over 5 months, very handy person)
- Started a small lawn-mowing business at 14, ran it until 24 after college, began internships-corporate entry. First experience building a business system, have been trying to do it again since but, needed money plus had a serious loss in the family...
- Age 21 began flipping anything I can. Most successfully, I have been flipping cars/vehicles. Have become very skilled in many ways at this since I am very handy and learned from a mentor from a massive privately owned dealership that a family friend owns..
- Age 22 Father passed away from Cancer, move into apartment with mother. Take over man of the house responsibility.
- Age 26-Present Begin working corporate in the transportation industry. not a good fit but, make 52K a year, Net 38K. Invest much of this into flipping/hustling. Has been successful, hoping to turn this into a 20% down payment on a multifamily. Coupled with flipping, this will take me 4-6 more months for the 20% and to have cash on reserve.
I had the opportunity to work for a Real Estate Title insurance company before I got into corporate after school. I chose to get a job that is a guaranteed pay biweekly, experience, and also insurance. The amount of hours we do are just ridiculous and after 2 years, the industry is just not for me. The amount of profit I make off one vehicle which takes me 2-3 days to get up for sale is the same amount of money I make from work in one month working income net (23 days of work 9 hours VS. 3 days of work = same profit).
Not learning much towards my goals and ambitions at my current job. In-fact it motivates me after hours to work even harder when I leave work. I keep thinking though that I passed up a great opportunity to meet people in my local area who can help me begin to build my dream of owning a portfolio of properties. It is not too late to go back because I have a good relationship with the owner and am a great salesman but, it does not pay as well as my current job from what I gather.
Here is my question - what would be more beneficial to me? - getting the experience of seeing how transactions work in Real Estate and meeting the agents/lawyers/banks to solicit Title Insurance but, not making as much in the short term -OR- Finding a different job that doesn't suck as bad that pays much more and just figure everything out as I go along. In the short term, I will have more money to be able to secure a deal quicker. In either scenarios, I would still be flipping like crazy, in-fact 2018 i'm literally going to snap since I will have a ton of capital to work with and will be spending even less time on units.
The philosophy of my close friends that I have followed was go where the money is and security. Many of them in-fact now have government jobs. However, my closest friend at this point owns a dealership and is a hidden multimillionaire with investments in many things. He is in fact pointing me in a different direction entirely in the car business.
SO yea, I have a lot that I am constantly thinking about. I need a plan and after I do, I am going to crush it but just do not know which route to go... Thank you so much for taking the time to read this and I appreciate any feedback you can offer me.
Should I leave my 52K a year job to do Real Estate Title Insurance and meet people in the industry as I begin my Real Estate Portfolio but make less money OR Should I just find a better paying job and figure it out as I go along once I have money.
I look at these two things as really being the "thrust" and "vector" of your life plan, money propels you into new deals (good and bad ones) but the experience and knowledge is your vector directing the flow of events to great heights. If you have one and not the other you will not likely succeed.
If you are happy enough where you are working currently and are saving enough now/have enough capital to begin then changing jobs would not be the best plan. I say that because the time and effort you are using to do that could be better spent using the free time you have now to go to meet ups, reading a book or analyzing a deal.
The stability you have now is also attractive to banks, if you change jobs it will be harder to get loans that way, harder still if you take a job for less money. I like what Robert Kiyosaki has to say about jobs, "never do something for the money, do it for the experience you will gain." I am paraphrasing a bit but I think you get the gist. Do you stand to really learn that much at a title company that you couldn't otherwise learn here or from a mentor?
If I were you i would stay the course, stay on bigger pockets, go to meet ups when you can, save you money and spend all the extra time you have analyzing deals that you can't do right now. It will make you hungry to do a deal and the more time you spend doing it the more natural it will feel. You will find that if you have deals, true deals, money can find you.
Awesome! Thanks Zach, I appreciate you taking the time to read my post and sending something over that you took the time to think about.... You bring up a lot of points, I read this a few minutes ago and needed a few minutes to digest. You bring up a good point and its something my friend that owns many properties told me, "don't switch jobs until you bought something". It sucks to hear that because I really dont like what I do, but it is true. Facing the truth sucks in general. but, maybe your right, I may need to face the music and suck it up for a little while longer... The only thing is with the job I currently have is it not in line with what I want to do and we work 50-70 hour weeks for i would say 50% of the year. This is a big reason why I want to change jobs as well... But, I understand what you mean, I need to have both. I think I position that you are looking at this from is a long term position. Im glad I put this out and that you shared this with me, I see it a little different now. :)
Sure, I am glad it was at least a little helpful. If I were you I would set some goals that I could work on while I maintained the job I had. Honestly having a job you dislike it actually a great motivator and is a good thing. Comfortable people don't take risks nearly as often as uncomfortable ones. How about some concrete suggestions rather than abstracts, keep in mind these are examples and you can modify them anyway you want.
1) Read or listen to 2 books a month
2) Listen to every podcast from BP
3) Analyze one deal everyday
4) Find your local REIG (Real Estate Investor Group) and attend one event a month
5) Seek one avenue of real estate you have never really done and research the crap out of it
6) Start talking to banks, get prequalified if you can, be ready to move on anything you find
7) Make a point to mention to everyone your meet that you are interested in investment property
8) Get on a few real estate agent's lists and get a feel for what properties are going for in certain areas
9) Call bandit signs of we buy houses people, get on wholesaler's lists
10) Research property management companies in your area
11) Spend your weekends driving for dollars (possibly while uber/lyft driving to make money while you do it)
12) Read a real estate investment article every day
13) Sign up for a webinar every week on BP
14) Keep asking questions here!
These are just some things you can do in the meantime, start building your side hustle as a real business. Start investing hours into it like you would a real job, that way when you are ready to make the jump you won't be starting cold! You will have already been doing the things you need to do and increasing your knowledge every day. By the time you do the first deal you will feel like you have already done more! (hopefully, haha) Good luck!
Haha, awesome! You know what Zach I didn't think much would come out of putting something out here on BP since its about just somethings that have been personally bugging me lately, but you sir came through! Those are awesome recommendations; the fact that I am not happy with what I am doing for work truly motivates me and its part of the reason why after work im putting in all these hours solo towards my apartment and my side projects.
Its crazy, your summing up what ive been doing but bringing it to context! For example I used to flip something and just take the money, pay the expenses, and go on to the next one. I eventually started doing excel sheets, but reading what you said its true! I shouldn't just think of it as a side thing but, if its working then to go all in and expand it!
Also, I do want to mention that I felt like I should work at a Real Estate Title company since I do not know many people in the industry. But your right! I dont have to make less money at frickin title company, I just need to stay the course and get capital and just meet people at groups! I haven't joined any real estate groups. I will keep you updated with any good news as it comes up. Thanks man. If your in Chicago ever, let me know :) Thanks again Zach.
@Robert Lisak That is great to hear man, it is why I love this community and the website so much. I find my expectations constantly exceeded, glad I could be a part of that for you! I really hope that you get out there and meet some great people, I know there are more than a few deals out there and I have no doubt that with your drive you will be a success! If I am ever up that way I will definitely want to hear how things are going for you!
I think its good that you have a job in which you're making money. That is good that you're putting those funds into savings and investing them. Don't stop that.
Now to get rid of that to make some connections and to get a lower pay. I don't think thats the right move. You can meet hundreds of people who are in the real estate game just through networking. No need to move jobs just to network with others. There are millions of other ways to network. I think you should keep doing what you're doing and saving. Maybe just add networking to your weekly schedule.
I think you can draw on past experiences here; when you spoke of flipping vehicles, you said "Have become very skilled in many ways at this since I am very handy and learned from a mentor from a massive privately owned dealership that a family friend owns.." You attribute being successful to having a mentor.
In real estate, perhaps more than other industries, learning from people who have done deals (successfully) is hugely beneficial. In my opinion, keep your secure job (for now) and use all of your free time to network, soak up knowledge, gain a mentor, etc that you possibly can until you have the capital for your first deal. The list that @Zachery Buffin provided is an awesome starting point.
Good luck and welcome to BP!
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