Transitioning into real estate. What do you think of my plan?

[Jeremiah Russell]

I’m starting my real estate journey this year!!! I don’t have a lot of skills or knowledge for the business, but I’m reading and taking in content everyday. My plan to start is to get a job working as a handyman to get the ropes in fixing houses, and possibly get a real estate license to get in touch with the local market. The goal for these two jobs is to gain knowledge and supplement my job I desperately want to leave. Now a little back ground in what I do and how much money I currently make.

I am currently an assistant reset supervisor for a local grocery store chain. I build/remodel the interior of the stores. I currently make $700 a week or $17.5/hr. In 27 months I’ll be promoted( my boss is retiring), and I’ll make $24 hr with little room to make more money. With no overtime and I work around 60 hours a week salary. The amount of time I work leaves me little time to spend on my real estate dream and time with family.

The average handyman in Chattanooga makes $15/$20 hr. Once I get involved in the community I may even be able to work with/for a flipper.

I know being a real estate agent can be hard and cost money to keep up with. I like to sell and I love real estate so I think it would be a good fit to gain knowledge, work with the people in real estate, and find deals.

With all this said I think transitioning into these two jobs will help me grow and meet people in the community, while also maintaining the money I need to make. Once transitioned I plan to start flipping and buying rental properties.

Let me know what you think of my plan, and any input would be greatly appreciated.

[Jeffrey Holst]

@Jeremiah Russell it's not a bad plan but you definitely need to make sure that you aren't jumping ship on a good job until you have a solid prospective income to replace it. Quiting to be a handyman only works if you can get and keep a handyman job.

In my experience the vast majority of Realtors don't make enough money to cover their costs the first year so you definitely shouldn't count on that income at least not initially.

Also make sure you are networking as much as possible even before you quit you job. Meet other investors and people doing what you want to do to see what they think.

Best of luck.

[Jerryll Noorden]

Here is the strategy I am developing.
It is really simple:

0. Save about 2K to 3K. 

1. Get a domain name

2. Link it to investor carrot.

3. Work on SEO

4. Work on Credibility. Although SEO can take  you 3,4,5 months to rank#1, Credibility can be done to completion in 3 days.

5. Drive traffic to your site (DMM, PPC, CC, D4D, FB Ads)

6. Get just ONE deal. Just one! Now you made a money. It could be luck, you could have made mistakes, you could have avoided headaches, you could have done things differently. And you know what? That is OK! You made money.

7. Now you learn from the  experience and you improve the procedure. You eliminate all the bottlenecks. You avoid the delay traps, and you make things more efficiently, and you do it again. just ONE more deal. You are not focusing on getting 5 or 6 deals. You are not looking to scale (just yet). Just get ONE stinkin lousy deal and that is it. Now that you eliminated all the negatives from the process you WILL make an other deal. Now... guess what. One deal can be sheer dumb luck. But 2 deals ... is a system. Now you have money.

8. Keep working on SEO.

Now that you have more money, your money making strategy is self sustaining. You no longer are spending money from your pocket to make more money. 

So now you scale. put 70% of the deal money into more marketing. Now you make 3 deals 

again you identify the bottlenecks and you correct it, and again this time you spent 40% of the money you made from these 3 deals into marketing.

Why 40%? You will be getting more leads than you can handle being just a a person team. You spend the 40% on marketing to get your deal flow coming and you invest about 40% on hiring.

Now you can spend more money on marketing as now you can handle more deals coming in.

You keep hiring, you keep marketing.

Within 4 to 5 months you have over 100K made, you have hired 2 to 4 people and you are on the way to become a filthy douche rich person that will call honest kind people .. "The Help" as they massage your stinky toes.

And that my friends is how you make it in this business. This is (almost) a fool proof plan.

I am developing and equating this strategy to make it absolutely 100% fool proof. I am using 3 of my new clients as test bunnies. They started from 0. no website no nothing. One of them already made a huge check from one deal. But I can not count this in because that was seriously out of the norm. But we'll see.

This is if you want to make money immediately as in by next month having a deal done.

Then SEO will start to kick in. You can not eliminate all your marketing budget if you want to.

I do not spend a cent on marketing and I get a ton of highly motivated seller leads.

I know talk is easy.. so I will show you this is actually real and it works:

This goes on day in day out! Every day!

Be careful trying to use your specific situation thinking you are "special" or in a good position to do something. Chances are you ARE in a good position, but I would prefer a system over anything else.

Good luck. Anyone that wants data, numbers updates on this strategy just say "Jerryll you are so friggin handsome I want a piece of your hair" ... in public and I will help you out as much as I can. 

Good luck dude!

[Amit P.]

@Jeremiah Russell to echo what @Jeffrey Holst I would be sure to spend time networking ASAP.  With time and a little effort you'll make some great connections and learn a lot of things.  You said you will be promoted in 27 months?  That seems like quite a while away.  A 60 hour work week is definitely tough with the goals that you have.  Are you able to find other work which you can do within 40 hours (to free up time)?  I suspect if you get prompted while the money may increase it may end up talking more of your time!

[Josh Brown]

@Jeremiah Russell having switched careers and now looking to make RE a part of our supplemented income I would avoid just jumping ship. Continue doing your research, set some networking and short term goals. Prove to yourself that this is something you want by having to achieve certain steps in the process before you can leave your current field. Get a mentor, do some side work as part of your side hustle and get your feet wet. Set finance goals as well so you know when it makes sense to leave the field you're in. Calculated risk is the name of this game. 

[Dennis Rootes]

"Jerryll you are so friggin handsome I want a piece of your hair"

And I'd love to hear the details of how your strategy is playing out. :)

[Jerryll Noorden]

Originally posted by @Dennis Rootes:

"Jerryll you are so friggin handsome I want a piece of your hair"

And I'd love to hear the details of how your strategy is playing out. :)

 Gaaadammit

I didnt think anyone would actually say this in public.

Fine fine  I am the genie in the lamp. You have 3 wishes. How can I be of service you silly little yooman you!

:)

no no good for you. I can definitely put you in my small super group of super friends where we all apply amazing strategies to get super leads in the inbox. if you allow it I will pvt you.

Get a pen and paper ready, it will blow your mind!

[Dennis Rootes]

Hi Jerryll,

I just hit the connect button. Not really sure what it does but hopefully it will allow us to connect with each other. :)

I was expecting something more like a private message function. Maybe I need to be a pro member first?

Dennis

[Jerryll Noorden]

Originally posted by @Dennis Rootes:

Hi Jerryll,

I just hit the connect button. Not really sure what it does but hopefully it will allow us to connect with each other. :)

I was expecting something more like a private message function. Maybe I need to be a pro member first?

Dennis

No worries Dennis. I mean seriously.. how many Dennisses ... sesses... Denni? Dennissi?!

are in this crazy country? 

What the freck is the plural of a Dennis anyways..

Here is the logic behind it all.

The general equation is as follows.

Deals = Traffic + Conversion

Now lets look into this with some practical glasses on..

SEO gives traffic, as does DMM, FB, D4D etc. etc.... right? (Remember though... here comes a singularity (you mathlovers are getting turned on right?) Perverts!

Not all Traffic is equal!! Just consider that. But that is for an other story. So focus!

Deals = SEO + Credibility

Now SEO is not instant. It can take months and months before you rank#1. Heck if I am not helping you, chances are you will never rank #1. There!

So Traffic without credibility gets you nowhere

Credibility without traffic.. again gets you nowhere. You absolutely need both!

Again... look what happens when you have traffic + Credibility:

People fill in the form on my website like crazy! But do you really HAVE to rank #1? No you do not. You need traffic. Period! Ranking #1 gives you FREE traffic. But you can certainly pay for traffic. Like FB ads and what not.

It is simply math. It is numbers.

You substitute traffic for traffic and the equation holds! DEALS!

Just follow the simple logic Blueprint of this equation

Deals=Traffic+Conversion

Which is the same as:

Deals = Traffic + Credibility 

and you WILL make money! 

I guarantee and promise you this!

[Anthony Rosa]

Handyman is a good job especially if you do real estate as well. Those two go hand in hand with respect to repairs on your investment properties. You will save yourself hefty labor costs doing the work.

My initial goal was like yours except 20 + years later I still have the same W2 job and investment properties in NYC with no regrets.  Excellent benefits and excellent retirement is why I kept my W2.

[Jeremiah Russell]

@Josh Brown @Jeffrey Holst @Amit P. Thanks for the great input. Calculated risk is a great way to put it, and what I’ve been trying to weigh. The job I’m looking for with handyman/renovation contractor helper has to be dependable meaning 40 hrs /week all year, and a place I can learn how to do multiple things. What I’m staying clear from is jobs with uncertainty, which is why for now REA is a no go.

Im spending a lot time learning from books, podcasts, and forums. I want to get out and meet up with locals, and I will when I can. With my current job another problem I’m having is that I’m out of town in a hotel about half the year, and I work third shift. This limits the even more the amount of time I can spend locally.

My job may suck and I want to get out, but on a lighter note in 12 months from now my wife and I will be debt free and we plan to buy our first rental property. Until then I will I’ll continue to study and meet people. I will also look for other jobs that pay and give me more time, whether handyman or just another job that fits.

[Brian Levredge]

@Jeremiah Russell, I own a local PM company here in Chattanooga.  We have the work load as we are expanding and always looking for handy men or a project manager type that can run his own crew.  Feel free to PM me.  

[Josh Brown]

You might find a lot of value connecting at Meet-ups in the other cities you're in. Even though that might not be your ideal market it will get you use to networking and how to hold those types of conversations. Plus you NEVER know what might come out of those connections. 

Originally posted by @Jeremiah Russell:

@Josh Brown @Jeffrey Holst @Amit P. Thanks for the great input. Calculated risk is a great way to put it, and what I’ve been trying to weigh. The job I’m looking for with handyman/renovation contractor helper has to be dependable meaning 40 hrs /week all year, and a place I can learn how to do multiple things. What I’m staying clear from is jobs with uncertainty, which is why for now REA is a no go.

Im spending a lot time learning from books, podcasts, and forums. I want to get out and meet up with locals, and I will when I can. With my current job another problem I’m having is that I’m out of town in a hotel about half the year, and I work third shift. This limits the even more the amount of time I can spend locally.

My job may suck and I want to get out, but on a lighter note in 12 months from now my wife and I will be debt free and we plan to buy our first rental property. Until then I will I’ll continue to study and meet people. I will also look for other jobs that pay and give me more time, whether handyman or just another job that fits.

[Jeremiah Russell]

@Josh Brown So what your saying is use my current situation and manage it fit my current goals. At least until I find a good job to jump from that fits or I make my current situation work. I will makes some moves to see what I can do. I have been looking at other markets when I’m out of town to see what the housing market looks like, but I will also try to reach out to local investors in those areas as well. Thanks for the feedback.

[Thomas DeMoss]

@Brian Levredge I said the same thing and BP said I was soliciting and removed my post . You must know someone there 😉.

[Carrie K.]

It sounds like you're thinking in the right direction. I have a couple thoughts that may or may not be useful: 

1) You're working 60 hours / week and making $17.50 / hour? Or am I reading this right that you're working 60 hours / week and would be making $17.50 / hour ( $700 / week divided by 40 hours / week), but since you work 60 hours / week, that comes out to more like $11.67? It seems like you're getting good, relevant experience, and I'm sure you've thought about this, but is there any way that you could make more and/or work less? That would give you more time to pursue all this and/or more pay to get out of debt faster.

2) Good handypeople are hard to find, especially for people who don't use them that often, like homeowners or small mom-and-pop investors who don't use property management companies. That's a really smart side gig that could turn into a full-time gig if you have the skills, especially since you say you're good at sales. Then again, you may want to keep your W2 job for health insurance and/or to make it easier to qualify for mortgages.

3) A key thing about rehabbing houses is knowing the right tradespeople. Hopefully you're meeting them in your job; if not, maybe think about how setting up your handyman business could be a way to meet them.

4) If you want to hear a funny story about starting to flip houses with no money, check out Bigger Pockets podcast #77 with Michael Quarles.

Good luck!

[Michael Krosky]

@Jerryll Noorden

How long did it take you to develop this plan and how long have you been using this plan?

[Jerryll Noorden]

Originally posted by @Michael Krosky:

@Jerryll Noorden

How long did it take you to develop this plan and how long have you been using this plan?

Michael,

Let me answer these 2 questions the best as I can.

So first: 



how long have you been using this plan?


In all honesty, I am not using this plan myself, my clients are. But before you judge me let me explain.

I am already getting more leads than I can handle. And I am not exaggerating. 

These are the leads coming in this week:

Notice that most of them from this week are still unopened.

Now lets go back to last month.

Look how many leads are still unopend from a month ago. So why would I pay for traffic when I get it all for free. So this strategy wouldn't apply to my case when I have everything I need for free.

Everyone tells me "Ohh this is a good problem to have". NO it isn't.

We are starting to get angry calls from people why they have not yet received their offer and I truly have a people phobia. This literally is giving me a TON of anxiety. I know most of you think I am bragging, but I am truly trying to help and inspire people to take SEO seriously. And talking a good talk is one thing, but showing pictures of my crazy inbox really get people believing this is not just talk!

How long did it take you to develop this plan?

Well let me first tell you WHY I developed this strategy. (I call this strategy the FT&C Strategy BTW, Forced Traffic & Conversion)

I "developed" this strategy (probably existed before?), due to a need... a Gap in the system.

I realized that many people didn't have the money to really dive into SEO. So here lies the problem. Here is what I hear a lot.

"Oh wow I never knew how awesome SEO really is... but I have no money now to hire anyone, let me make a deal first".

This is completely wrong. You shouldn't wait to spend money until you have money. You need to SPEND money TO make money. How are you going to wait for a deal (so you can make money), when you need money to make a deal. So it is a trap.

Those that will wait for an opportunity, those that wait till the planets will magically align simply will NEVER be successful!

So I started looking into this when I started my consulting business (4 months ago), and I started to hear all the wholesaling newbies that approach me for my services that they have no money now to do SEO.

:)

Don't you love adventure stories?

[Michael Masterson]

@Jeremiah Russell hi Jeremiah-I’d suggest finding a local flipper who will let you work hourly and at nights perhaps on construction clean up, having supplies on site for next day, etc. You won’t make a ton but you definitely will learn what handyman skills are important to learn, and what others are worth subbing out.

From there you’ll be able to gain some credibility as well. It sounds like you’re a hard worker so that probably won’t be an issue.

Personally went this route and it has paid me dividends on my own deals knowing what my strengths and weaknesses are in the labor department.

[Jeremiah Russell]

@Michael Masterson I will definitely look into this. Thanks for the input.