Beginning investor looking for advice on becoming a broker

2 Replies

Hello everyone! 

Iv'e been on here on and off over the years. I attempted wholesaling for a good while but had no success, I also tried finding multi families with no success mostly due to the fact that I was in the Military and found that going on the road so much was affecting my business, and the time spent on business was affecting my job, although it was a means to an end, the job was important. I'm now out of the military, and decided to get back involved in REI.

Im currently looking for flips, and marketing for wholesale deals. Im very confident ill find both. But i'm curious about getting a brokers license? Iv'e been doing this for the past month and although I haven't gotten any deals, I enjoy it. I feel like iv'e made progress. Im currently not working and living off of saving's, and unemployment benefits. I start College in January for nursing. Im honestly going to school for a couple reasons: 

1) make momma proud 

2) GI bill pays $1700.00/mo for living expenses + U/e will continue to cover me while I got to school...until I get some deals..then ill get cut off lol. 

3) When people go crazy and hurt other people, or some natural disaster happens, nurses are needed. Plus nurses are needed generally as well...but I really don't want to depend on it as a source of financial security. 

So im thinking about taking this time off and becoming an agent full time, while I invest on the side. I would either invest and go to school providing my self with funds from benefits. Or I can be a real estate agent, sell homes full time, while investing on the side. 

It seems like it could only be a positive thing to my growth in the business. But I also wonder if i'm stretching my self thin? am I beginning to focus my attention in to many different avenues wile marketing for properties to wholesale or flip and being a broker? School will always be there as well, and it would be nice to go to school just to learn and not to go for a way to make money. 

I just wanted to get peoples opinions on the subject. My goal is to generate enough income that I can retire my parents....cause I don't think they have a plan, and be able to have the freedom in life i'm looking for (travel, build my car, no one to answer to). I calculated that out to about $300k a year, or 25k a month....for a good lifestyle. My goal is to do this by the end of 2018. From there I would like to reach to become a millionaire in 12 months...I just don't know why I would need all that money yet? I probably could live pretty happy on 300k a year. I think the biggest thing for me is becoming a professional, and the dollar amount is kinda like a ticker but thats far out. 

so with that info what do you guys think? would it help to push my investing career forward to be a full time agent? or should I just stick with school and invest on the side? I just wonder about the time commitment. Will I be spending more time being a broker than a full time student? Where will I have the most control? 

James, 

#1 stay in school.  Finish your degree.  I always advise a technical degree  (nursing is good) followed by or concurrent with a business degree.  This way no matter what happens you have a fallback position where you can put food on the table. 

Degrees in and of themselves are only a starting point.  They provide the function of opening doors for you instead of you having to go around them or kick them in. 

I wouldn't advise being an agent (you generally start as an agent under a broker then work up to being a broker) unless you have at least 12 months or more of your petsonal expenses saved and a good whack of your businesses expenses as well.

Your nursing job will provide you with a good base to start investing.  Besides which you never know if a doctor will want to invest with you. 

I think your goals are great,  but your time line is unrealistic.  To make 25k per month CLEAR you would need at least 3 million worth of  real estate at a 10% cap rate  (clear).  Actually you would probably need much more than that. 

Bottom line finish school,  invest on the side. 

Good luck, 

Jim 

Jim, 

Thank you for the response. I really appreciate the honesty! To give you the rest of the story.  I spent all night chewing on the idea of being a broker and decided to follow your advice and to continue with a plan to get a degree as a nurse and invest on the side. The biggest reason was just the fact that I don't really see my self as a Real Estate Agent. In the past Iv'e made decisions that weren't genuine to who I am, and found that it never pays, gotta stick to your gut. 

You may be right about the timeline on my goals. But non the less they are goals and they stretch my mind to achieve them. Im going to continue with them unrealistic or not, and if I don't reach it by 2018 i'm okay with that, but if I do I would be pretty stoked about the whole darn thing. It just sets up a foundation of questions to explore also. How does a 300k a year investor think? What does a 300k investor spend his time on? What does a 300k a year investor work ethic look like? etc. etc. etc. Heck if I hit it in 2 years I would be happy, but pushing my self to move at that pace as quickly as possible is what i'm shooting for. 

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