Work for a real estate investor?

[Curtis Thygerson]

Hi guys,

So I'm really torn between a couple decisions here, I have been flipping houses for the past couple years with marginal success, have learned a ton and feel like as I keep going I get better and better at it. That said my wife is pregnant and wants me to get a job for a couple years to build a little more cushion in the bank before continuing. Our long term goal is to buy enough units as rentals to retire, we are aiming for around 100 units in the next 15 years. 

Ok so here is the decision I have to make. 

I have a job offer from Freddie Mac, for around $75,000 a year, and we can live with my mother-in-law to and live super cheap. So all in all the work wouldn't be super related but we would be making some good money.

I have another job offer from a real estate investor who BRRRs properties out in Kansas, I would be his project manager on the ground in Kansas. He is doing exactly what I want to be doing in the future, he lives in San Diego and invests in the mid west from afar where the purchase prices are lower and the 2% rule is readily attainable. I am sure I would be getting awesome hands on experience finding, managing, and renting out properties and such. The bottom line is though, he wants to pay me a base salary of around $40,000 and then add some commissions which I can expect will be anywhere from 10 - 20K. So all in all 50-60K but no insurance and I would have to pay self employment tax, so in reality I would end up with 40 - 50K. Oh also I would have to pay more in rent so that would be another expense difference of about 8K 

So Great experience for half the pay? or get more pay and have more capital to just try doing it on my own with the help of other resources I find (youtube, biggerpockets, local REITs)

I'm planning on working for 2 years either way, so i believe I would have around $80,000 more after 2 years working with Freddie mac. 

I would love to hear your advice,

Thanks!

[Lee Ripma]

@Curtis Thygerson

So it seems like you're working for 2 years for someone else regardless. I'll give you the advice I give friends and family which is only take a job with someone else to learn valuable skills. Never pick a job for the money only pick a job for the skills you'll gain. Those have way more value than money. You may be able to do the BRRRR thing yourself but it's much easier if you have some capital. The thing you didn't post about the BRRRR job is that you'll be an RE professional so you won't pay taxes if you own properies you can't do cost segs on and get losses on. So that job probably pays about the same when no taxes taken into account. Also this person is doing exactly what you want to do so you can learn on his dime then go do it yourself! Seems like that's what you WANT to do anyway from reading your post.