Quitting Job to Pursue Real Estate: Documenting my Journey

Quitting Job to Pursue Real Estate: Documenting my Journey

Property Manager · Huntingdon Valley, PA · Member since 2016 · 81 posts · 92 votes

Hello all, my name is John. I am 24 years old, and I have decided to quit my job (which is managing flips for a fairly big flipper in the area) and pursue real estate full-time in Philadelphia and PA (Montgomery and Bucks County). I initially wanted to start in the business about 3 years ago, but instead ended up working for someone because I was too scared to take the leap.

I planned on pursuing real estate on the side, but I was working 12-16 hours a day for his company and it became very difficult for me to focus on both my real estate side hustle and full-time job. After a while of doing this, I decided that I had enough basic knowledge, and I could invest my time into myself. My last day working for this company will be 11-15-19 and that's when I'm going to start pursuing this journey full-time.

I know I am taking a risk by quitting my job. Yes, I do have about 2 years of experience managing flips, but I am planning on pursuing wholesaling to make a full-time income because I don't have enough capital to risk on a flip that might not work out. Wholesaling might not work out either, but what's the worst that can happen? I really asked myself this question, and decided that there is really nothing to lose.

I want to create this post to document my journey especially for people around the same age as I am. Most of the people I have gotten to know in the business are much older than I am, and I do not see many young investors. Hopefully the documentation of this journey can inspire some others around me to take action for themselves, though I'm not advocating anyone to quit their job like I am.

Also, I will keep this post updated weekly, and even if no one is watching, I think it will still hold me accountable.

Thanks for reading. In a week I will post with an action plan of exactly what I am planning on doing after I quit my job.

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Flipper/Rehabber · Dallas, TX · Member since 2017 · 174 posts · 157 votes
7y

@John Oh

You should get some lines of credit while you still have good job history. I made this mistake by quiting my job without thinking about the ramifications. I had a house with 90k in equity that I could have easily set a heloc on but I tried a month or two after quiting and no one would help because I didn't have a job to pay back the potential loan. Also you should be doing a live in flip first renting out your rooms that's where that 90k in equity came from a house I lived in for free for over 4 years. Use the FHA loan while you can then quit your job

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  • Rental Property Investor · NC · Member since 2018 · 776 posts · 776 votes
    7y

    24 is a good age to take a big risk like this. I question if you understand the financing aspect of flipping and wholesaling from your statement about not having much money. My advice would be to start wholesaling now before you totally leave. It may take a while to close deals and adjust your marketing strategy. Additionally, really educate yourself on how you plan on funding these deals. If the construction costs go up and you are trying to pay holding costs with no income, there is a chance to get caught flat footed. But I wish you all the best and I am sure your project management experience will come out handy.

  • Property Manager · Huntingdon Valley, PA · Member since 2016 · 81 posts · 92 votes
    7y

    Thanks @Frank Geiger! You are correct; I do not have much experience regarding the financial aspects of flipping and wholesaling. I am planning on learning that as I go. 

    I have begun marketing in the hopes that I can find a deal. 

    Thank you for taking the time to respond to my post. I really appreciate it. 

  • Rental Property Investor · NC · Member since 2018 · 776 posts · 776 votes
    7y

    @John Oh definitely reach out on here with the numbers and people will be pretty blunt about what to expect. I imagine with not much cash you will lean towards HM which can be a pain to learn about in the moment. 

    A lot of investors will throw a bunch of money from credit cards, lines of credit, etc. to complete their first few deals. But with no job, you will have to be extra careful on how you approach this and have plenty of reserves for contingencies. Reach out if you need any help 

  • Wholesaler · Greenville, SC · Member since 2019 · 15 posts · 10 votes
    7y

    Best of luck @John Oh! I’m new to the game and planning to kick off my investing career in the new year. I’ll be following your story to see how you’re getting on. 

  • Horsham, PA · Member since 2019 · 5 posts · 3 votes
    7y

    John - I commend you on taking the plunge, being confident in yourself, and just doing something for progress.  
    I am in the Huntingdon Valley are myself and am just starting out.  Trying to figure out what strategy works best for me still.

  • Specialist · San Antonio, TX · Member since 2012 · 865 posts · 351 votes
    7y

    @John Oh you may have to find another JOB in order just to have money to live on and market.

    It takes months on the low end to produce money through Real estate. Whole selling is mentioned by many as a way to make a quick buck, but for most of the successful wholesalers it took a long time to build traction. Of course if your single the cost of living is less. 

    Wish you well:)

  • Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    7y

    John,

    When a student is ready, the teacher appears. You need just one investor/partner to help with the funding, then you’re set IMO. 

    I’m speaking from personal experience. I partner with a couple of young guys in their late 20’s and early 30’s in my nose bleeding expensive market to flip, do some buy-and-hold as well as dabbling into development. You just need that one person to back you up. Maybe, just maybe, @Jay Hinrichs knows your market and may consider giving you a chance with his funding sources. I wish you the best. 

    Hope to see you at the top. Fingers

  • Property Manager · Philadelphia, PA · Member since 2015 · 515 posts · 196 votes
    7y

    Best of luck. I will be watching for your updates.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Account Closed:

    John,

    When a student is ready, the teacher appears. You need just one investor/partner to help with the funding, then you’re set IMO. 

    I’m speaking from personal experience. I partner with a couple of young guys in their late 20’s and early 30’s in my nose bleeding expensive market to flip, do some buy-and-hold as well as dabbling into development. You just need that one person to back you up. Maybe, just maybe, @Jay Hinrichs knows your market and may consider giving you a chance with his funding sources. I wish you the best. 

    Hope to see you at the top. Fingers

    Its fairly common knowledge that any entrance into real estate no matter which niche you decide to do.. One should have at least a years worth of living expenses saved up in cash.. and then some ability to market and operate on top of that.. undercapitalized business fail every day..  These are small business's  nothing different.. and with real estate it takes time to prime the pump.. 

  • Flipper/Rehabber · Dallas, TX · Member since 2017 · 174 posts · 157 votes
    7y

    @John Oh

    You should get some lines of credit while you still have good job history. I made this mistake by quiting my job without thinking about the ramifications. I had a house with 90k in equity that I could have easily set a heloc on but I tried a month or two after quiting and no one would help because I didn't have a job to pay back the potential loan. Also you should be doing a live in flip first renting out your rooms that's where that 90k in equity came from a house I lived in for free for over 4 years. Use the FHA loan while you can then quit your job

  • Philadelphia, PA · Member since 2018 · 26 posts · 13 votes
    7y

    @John Oh

    Hey John! Best of luck with your pursuits. Please DM me to connect about potential properties as you go forward. I’m new to this but I’m ready to go in the next few months.

  • Property Manager · Huntingdon Valley, PA · Member since 2016 · 81 posts · 92 votes
    7y
    Originally posted by @Simon Burton:

    Best of luck @John Oh! I’m new to the game and planning to kick off my investing career in the new year. I’ll be following your story to see how you’re getting on. 

     Thanks Simon! Good luck to you as well.

  • Property Manager · Huntingdon Valley, PA · Member since 2016 · 81 posts · 92 votes
    7y
    Originally posted by @Brian Palme:

    John - I commend you on taking the plunge, being confident in yourself, and just doing something for progress.  
    I am in the Huntingdon Valley are myself and am just starting out.  Trying to figure out what strategy works best for me still.

    Great Brian. I would love to connect and have a conversation sometime.

  • Property Manager · Huntingdon Valley, PA · Member since 2016 · 81 posts · 92 votes
    7y

     Thanks for the advice Joel! I have heard many people say that wholesaling takes quite a bit of traction. I'm hoping that my risk pays off. Appreciate your kind wishes and advice!

  • Property Manager · Huntingdon Valley, PA · Member since 2016 · 81 posts · 92 votes
    7y
    Originally posted by @Jimmy Lin:

    @John Oh Put me on your buyer's list lol. Two years of experience managing flips is way ahead of most people, especially at 24.  Good luck and god speed on this road to financial freedom!

     Thanks Jimmy! I will do that. I'd love to connect with you as well!

  • Property Manager · Huntingdon Valley, PA · Member since 2016 · 81 posts · 92 votes
    7y
    Originally posted by @Account Closed:

    John,

    When a student is ready, the teacher appears. You need just one investor/partner to help with the funding, then you’re set IMO. 

    I’m speaking from personal experience. I partner with a couple of young guys in their late 20’s and early 30’s in my nose bleeding expensive market to flip, do some buy-and-hold as well as dabbling into development. You just need that one person to back you up. Maybe, just maybe, @Jay Hinrichs knows your market and may consider giving you a chance with his funding sources. I wish you the best. 

    Hope to see you at the top. Fingers

     Great tips! Thank you so much for the advice. I will be on the lookout. I do have connections with people who I have a feeling would help me fund a deal. I just need to find one. Thank you for your referral with Jay! I will reach out to him.

  • Property Manager · Huntingdon Valley, PA · Member since 2016 · 81 posts · 92 votes
    7y
    Originally posted by @Joe White:

    Best of luck. I will be watching for your updates.

     Thanks Joe.

  • Property Manager · Huntingdon Valley, PA · Member since 2016 · 81 posts · 92 votes
    7y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Account Closed:

    John,

    When a student is ready, the teacher appears. You need just one investor/partner to help with the funding, then you’re set IMO. 

    I’m speaking from personal experience. I partner with a couple of young guys in their late 20’s and early 30’s in my nose bleeding expensive market to flip, do some buy-and-hold as well as dabbling into development. You just need that one person to back you up. Maybe, just maybe, @Jay Hinrichs knows your market and may consider giving you a chance with his funding sources. I wish you the best. 

    Hope to see you at the top. Fingers

    Its fairly common knowledge that any entrance into real estate no matter which niche you decide to do.. One should have at least a years worth of living expenses saved up in cash.. and then some ability to market and operate on top of that.. undercapitalized business fail every day..  These are small business's  nothing different.. and with real estate it takes time to prime the pump.. 

    Great advice. Thank you.

  • Property Manager · Huntingdon Valley, PA · Member since 2016 · 81 posts · 92 votes
    7y
    Originally posted by @Dustin Mathenia:

    @John Oh

    You should get some lines of credit while you still have good job history. I made this mistake by quiting my job without thinking about the ramifications. I had a house with 90k in equity that I could have easily set a heloc on but I tried a month or two after quiting and no one would help because I didn't have a job to pay back the potential loan. Also you should be doing a live in flip first renting out your rooms that's where that 90k in equity came from a house I lived in for free for over 4 years. Use the FHA loan while you can then quit your job

     Great advice Dustin!! Duly noted. Thanks for taking the time to respond to this post. Much, much appreciated.

  • Property Manager · Huntingdon Valley, PA · Member since 2016 · 81 posts · 92 votes
    7y
    Originally posted by @Kimberly Fisher:

    @John Oh

    Hey John! Best of luck with your pursuits. Please DM me to connect about potential properties as you go forward. I’m new to this but I’m ready to go in the next few months.

    Thanks Kimberly! Will do. Good luck on your journey as well.

  • Reston, VA · Member since 2017 · 67 posts · 68 votes
    7y

    Good luck, I'm in a similar place in my journey.  Excited to see how things go for you.

  • Rental Property Investor · New York City · Member since 2019 · 703 posts · 538 votes
    7y

    Good luck with your plan.  With wholesaling I hear that you need a RE license and have to be backed by a broker to do wholesaling unless you plan on being the actual title holding buyer.  I'm not a wholesaler so i don't know the ins and outs,  just saying.

    Hopefully, you know not to burn bridges with your former employers because you never know if you will need them again or have to do business with them.

  • Rental Property Investor · Augusta, GA · Member since 2016 · 348 posts · 171 votes
    7y

    @John Oh good luck!

  • Realtor · Boston, MA · Member since 2019 · 244 posts · 275 votes
    7y

    I agree with the others here. You're at a good age for taking risks. You have a solid background on the flipping side. You're not (quite) ready to quit.

    Before you quit, I'd urge you to do as others have said and do your first flip for yourself as a househack. Find someplace you know you can rehab, use your W2 job to qualify for a rehab loan with a small down payment, renovate it and get roommates in there to cover your expenses and give you more runway, then either refinance out or get a HELOC *before* you quit your job. Once you are at a place where you are living for free and have access to some capital and the ability to float for 12 months without income, then you can quit.

    Yes it sucks to defer your plans for maybe 6 more months, but you will be learning important parts of the business the whole time and at the same time making sure that you have a better chance of success for those crucial first few deals.

  • Atlanta , GA · Member since 2014 · 43 posts · 10 votes
    7y

    Follow your heart and use the tools around you (BiggerPockects etc.) as a guide on your journey! I encourage you to get on here daily and connect with some locals. Tons of great information on BP and check out the podcast! Blessings!

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