Should I let my real estate goals influence my job search?

21 Replies

Hi BP,

I am graduating from university at the end of this month and am interviewing for jobs all over the country. My current goal is to generate enough cashflow through MFP to be able to "retire" by the time I am 30, and am looking for a job purely so I can fund deals. General consensus seems to be that especially when starting out you should invest where you know/local to where you live, so my question is: How much should I let my interest in REI influence where I am looking for jobs? Thanks.

Gunya

Well, if you are going to invest locally then it probably plays pretty heavily into where you accept a job. A better question, though, that I would ask is this: why is someone so young, just starting out in life, already so disillusioned with what they do that they want to quit in a few years? 

If you do something you like doing, you never really work. That's probably a better use of focus than focusing on not working any more. Even owning rental property is work to some extent. Surely your goal is not to sit on the couch all day and eat Cheetos, so why not get started from the beginning in a rich career? 

If your problem is you hate what you got your degree in (and if you do, I hope you realized that at the end), why not get a decent job in that field, and proceed to work on doing what you love in the meantime? If what you love is real estate, then great, but there's other options - go back and get a different degree; apprentice in some field; start your own business; etc. 

@JD Martin Good questions! I could have framed mine a bit better...

I have a few mentors and family friends that have started their own successful real estate companies and my dream is to follow in their footsteps. To do this I need to first get a job to get cash and gain experience in business ops, finances, etc. In this sense I want to follow a traditional career path as a means to an end, and I see from one of your blog posts that you feel the same to a degree. My degree is in Leadership and Entrepreneurship, both of which I love and are very broadly applicable. 

If I can ask, how did you get started in real estate? What drew you to it?

It is a good idea to invest where you work so given you are free to go anywhere try to find a job where you will be investing. Choose as high of paying job as you can find, if it's a job you like all the better since you will need it to qualify for financing. Do not plan on "retiring" by 30. Probably unrealistic and keeping the income flowing will allow you to invest even more. A job is nothing more that a trade of time for money. Go to work, shut your brain off and take your paycheck. 

Originally posted by @Alex Gunya :

@JD Martin Good questions! I could have framed mine a bit better...

I have a few mentors and family friends that have started their own successful real estate companies and my dream is to follow in their footsteps. To do this I need to first get a job to get cash and gain experience in business ops, finances, etc. In this sense I want to follow a traditional career path as a means to an end, and I see from one of your blog posts that you feel the same to a degree. My degree is in Leadership and Entrepreneurship, both of which I love and are very broadly applicable. 

If I can ask, how did you get started in real estate? What drew you to it?

 Alex,

If you click that "Podcast guest on Episode 243" link at the bottom of my post, you can hear the whole sordid tale, and it does not take longer than an hour :)  Cliff notes version, I did a new construction, lost a bunch of money, worked like hell to rebuild my balance sheet, and then started buying rental property when I needed someplace to park cash that had a better return than what I was getting elsewhere. It just grew from there. 

@Alex Gunya To start go where you can make the most money the fastest. Then invest where it makes sense.

This what GC preaches and this is what I have done myself. Note some of the other stuff cardone says I don’t agree with lol

@Thomas S.  Thanks for the input! 

@Caleb Heimsoth I feel the same, GC can be a polarizing figure at times. What do you think of his advice to "go as big as possible, as quickly as possible, as safely as possible?" Since I am young I am less risk averse than most so it's pretty enticing..

@JD Martin   I'll check it out, I listen to those podcasts almost every day! I appreciate your help.

@Alex Gunya well GC started with around 350k...so if you can somehow start with that much of your own money then maybe do that...but even if you did have that much money if start with maybe a single family rental or some duplexes to get the hang of things first, then go big.

At our age (I’m 23) there is no rush.  I can buy a couple properties a year and still have a ton by 30.  Slow and steady wins the race (and ends up rich) lol

@Caleb Heimsoth Wow I didn't realize he started with that haha. Yea I want to start with a 3 or 4 unit and scale to commercial MF. Brandon Turner talks about "stacking" a lot which I think is a great concept. 

What are your goals with investing? What property types are you interested in?

@Alex Gunya I plan on really just doing single family for now.  I want to get to around 7-10 properties in the next 18 months or so.  Then pay 1-2 of them off.  A lot of this is contrarian to what BP members preach.  

From there I will then likely go into residential multifamily or just keep buying single family and jump into small apartments.  After doing that for a couple years I’ll pay down more debt aggressively and then start diversifying into notes.  

@Alex Gunya what would you consider to be conventional?

I think my conventional path ended when I purchased my first out of state rental at 22 lol. I want to do this REI route because I think is the easiest and lays a solid foundation for bigger deals later on

Alex, I love your goals and in fact I know someone who did exactly what your referring to on your thread. At 22 he graduated from college went to work for one of the DOW  30's. He quit at age 26 ( hated corp America ) and at age 28 left to travel the world with his wife. that was 8 months ago he was able to do this because of his J O B that allowed him to finance the 10 properties he now owns. Himself similar to yourself had family in the business that helped him along the way. Go get em and Happy Hunting.

I started slow by paying off my primary and then purchased a larger live-in flip for my family to move into and rented the recently paid off unit. All while paying off as much of the mortgage as possible. Then 3 years later had a job promotion in new location and again got a loan on a new house and then had 2 rentals (one paid off. One w note). After that another job relocation and then I harvested equity from live-in flip because there was tons in that house and sold it and used that as seed money to pick up 5 multi family properties in a lower cost of living location where I felt I could get more bang for my buck.....

It depends on the your pain threshold.  Can you afford to learn how to get into real estate investing while being cash strapped?  When I did it,  I did both.  I got a job and invested after/before my day job until the pay between the two gigs was so clear that I had to be a full time investor.

@Caleb Heimsoth Conventional in terms of what "most BP members preach." Paying off 1-2 properties would increase cash flow a decent amount but would limit your short term scalability would it not?

@Chris Youssi Thank you for the support! That is exactly the path I want to take.

@Grant Rothenburger My degree is in Leadership and Entrepreneurship which I love and which has taught me a lot but does not give me a specific "field" to go into. Thank you for the advice!

@Alex Gunya  yes it would,  but only for or so.  I’m 23, what’s the rush? Lol.  A year to me or you who are in our 20s is different than someone in their 60s or 70s

I think you establish a good job you love and then from there start working on your real estate goals. Its important to have a source of funding to make these goals happen quicker. GoodLuck!

I'm 30, so a few years and 2 houses (a duplex plus the single family place I live in) ahead of you, but not too far off. I don't have a degree, and in hindsight, I would be better off now if I had chosen to prioritize a decent paying job, with or without a degree, to help afford investing earlier/faster than my chosen fun but relatively low-paying field. That said, I am perfectly content with how things have gone so far...but it is hard to save/invest quickly when your main gig is only ~$30k/year.

I personally would try to strike a balance between choosing somewhere you want to live AND invest while also having a decent income. I think there are plenty of places to achieve that happy medium, especially if you are the sort of person who doesn't have to live in an ultra-hip part of the country for either professional or preferential reasons.

30 was my "retirement" goal, but I've amended it to "as soon as practical" :) For me, that is $30k+ yearly "passive" cashflow, since I can personally live on that and remove the necessity for a conventional job.