WTH do you start??? No seriously, planned for years, now what?

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WTH do you start??? No seriously, planned for years, now what?

Daniel Kiran
Parrish, FL · Member since 2016 · 1 post · 0 votes

Hey everybody!  Long time reader & listener, first time typer.  I currently own and operate a pool service and repair company in Florida, I am 6 months removed from the W2 workforce of slave labor.  I have wanted to be on my own my whole life and I was for a number of years but I got suckered into a bad marriage, a bad job, lots of other stuff, now I'm in good marriage, two awesome little girls and all the support and reason to succeed in the world.  It's been a heck of a learning experience to take the route that I have but I want to get into real estate.  

Being a property owner is a special satisfaction as I think most people on this forum probably know already.  To make money off of that property and to be able to repeat that while providing value to others in some way shape or form sounds like a level of utopia that I have not gotten directions to yet, but I know it exists.  

I have so many questions I have no idea where to start - I have read on real estate for years, I have a basic understanding of the different ways to invest and earn money, but besides the generic "there are many routes you have to decide what works for you answer", what's the answer?!  IMO you have to try the different routes instead of just saying yeah I think a 40 unit apartment complex sounds like fun.  

So I currently have limited capital, but with some effort and cashing out of the business I could have a decent amount, let's just say $150k.  I want to try different things; I want a flexible lifestyle in the sense that I can travel and be with my family, but I also don't mind working 70-80 hour weeks when necessary.  I have basic construction experience but nothing close to being a knowledgeable contractor.  

So....wth do I do??????   I don't mean what do I read or research at this point, something actionable that won't result in guaranteed bankruptcy.  That's my frustration now, what's the real (get guts get off the pot take action here's next step stop reading and planning do something) answer.

Thank you if you made it this far into my ranting thoughts that haunt me on a daily basis!

Dan.

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Nicole A.Pro Member
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
8y
I would not recommend you liquidate your pool business nor heavily put it in debt. Obviously you wouldn't start out jumping right into something like 40 units. You might not like the answer but it's true that YOU have to decide how to start. No one will do this for you. But I recommend you save up enough cash to buy one rental property. While saving up, get yourself a good real estate agent who knows local rental markets. Research areas nearby where you live and start analyzing them to see if they cash flow and be good deals. This will be your practice while you save up the down payment. Go to local REIA meetings and learn even more and network. Get locals to tell you what banks they use. All these suggestions are actionable and will get you started. Good luck!
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  • Alexander FelicePro Member
    Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
    8y

    No one knows what YOU should do, more than you.

    you said you've been reading for years, what strategy do you think you want to follow?

    you have AMPLE capital to get started. Are you analyzing properties?

    have you spoken to lenders to decide your debt strategy?

    are you actively networking and meeting people local in your area?

    your question was quite vague, hard to give direct advice.

    if you don't want to do more research and just want to take action, go buy a house and figure it out. nothing holding you back

    [email protected]Podcast Guest on Show #301
    1Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    8y

    I am very happy owning rentals. They provide recurring Revenue that will pay you as long as you own them. If you decide to try that route remember that you will need several to really make it worth your while. That means you will need access to Capital whether it be through the banks friends or hard money lenders. You might also consider getting your license which will open up many more doors for you. 

    0Reply
  • Alina Trigub
    Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
    8y

    @Daniel Kiran As @Alexander Felice said, you have to decide for yourself what would work best in your case. 

    Hypothetically speaking, let's say you decided to start with residential multi-family (2-4 units.) Find out the price range for these properties in the area where you want to invest. Then go to a few lenders to determine 1) how much cash you'd need to put down and 2) whether you're qualified to get a loan. This step alone will create more questions/items to follow up upon. Also once you start networking with like-minded investors, you'll be able to determine what are other steps needed to take in your journey. Feel free to ask questions here on BP and read some RE books. Plenty of recommendations under Education section of BP. 

    Best!

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  • Nicole A.Pro Member
    Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
    8y
    I would not recommend you liquidate your pool business nor heavily put it in debt. Obviously you wouldn't start out jumping right into something like 40 units. You might not like the answer but it's true that YOU have to decide how to start. No one will do this for you. But I recommend you save up enough cash to buy one rental property. While saving up, get yourself a good real estate agent who knows local rental markets. Research areas nearby where you live and start analyzing them to see if they cash flow and be good deals. This will be your practice while you save up the down payment. Go to local REIA meetings and learn even more and network. Get locals to tell you what banks they use. All these suggestions are actionable and will get you started. Good luck!
    2Reply
  • Daniel Haberkost
    Rental Property Investor · Colorado Springs, CO · Member since 2018 · 682 posts · 729 votes
    8y

    @Daniel Kiran

    Hi Dan, I was in the same boat as you are for quite a while. I had spent an enormous amount of time reading/listening to podcasts and felt lost because there were so many different routes to take. Eventually, I decided I was just going to decide what route to pursue and take action. I settled on small multi-family (2-4 units) and purchased my first duplex a few months ago. In hindsight, I wish I had done this six months ago! The amount of knowledge/confidence I've gained from this first small deal has been absolutely invaluable. 

    Even if something ends up going wrong with this property or with a tenant it's not going to bankrupt me and the education I've received will allow me to go out and find more deals. There are many ways to make money in real estate. Pick one and pursue it with a passion and I'm sure you, like me, will be very happy that you did!

    -Dan Haberkost

    1Reply
  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    8y

    I started with house hacking a duplex, and remodeling and adding a 3rd bed and 2nd bath to the side I lived in. Then when that was done, I rented out my side (other side was already rented of course). Then, I bought a SFH to move into. Now, I'm looking for a 2-4 plex to purchase and rent out.

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  • Thomas Long
    Columbia, TN · Member since 2018 · 20 posts · 2 votes
    8y
    Hey Dan, I definitely agree with Nicole that you shouldn’t put your primary means of income at risk initially. From what I’ve read, if you’re willing to put in the time and legwork, you don’t need a ton of money to start investing. Find a wealthy uncle or an ambitious friend and see if they’re willing to put up a bit of capital with a pretty much guaranteed nice return. If you own your house, buy another one, put some work into it for a few months, and sell it for a little more. Boom, you’re an investor. If you don’t own a house, then buy a duplex or triplex, clean it up, then rent out the other units and pay the mortgage with the rent payments. Boom, you’re an investor. Again, from what I’ve read, and I’ve seen and heard this just about everywhere, simply doing something is more important than what you do when starting out. Unless you know for sure the direction you want to head in, throw a dart at a list of options and just go in that direction, you’ll make money in any case if you do it smart. If you don’t like it, try something else. But no one can tell you one way is better for you than any others because we know only one post’s worth of information about you haha So get off your butt and go buy a cheap house.
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