Business strategy

8 Replies

New member to BiggerPockets, and looking for some overall advice on how to get started.  A little background:  I am 47, and just recently retired.  I have had several rental units over the years, and am somewhat experienced in that component of RE investing.  I have also flipped 4 houses in 2014.  So, some experience there as well.  I squeezed this "part time" activity in around my 60-70 work weeks.  Now that I am free of that commitment, I am making RE my full time career.  Obviously, I have some options and my thoughts right now are as follows:

1. Continue to rehab and flip SFH at the rate of 1 per quarter, while I learn more and get trained on the other options in RE investing. Move that number to 2 per quarter in 2016.

2.  Start to pick up some buy & hold rental properties for that passive monthly income that is crucial in between the big flip pay days.  

3.  Once I get more knowledgeable on the subject, start wholesaling deals.  Time frame:  9 to 12 months from now (4th Q, 2015)

4.  Ditto for lease options/buy to own.  Get trained and comfortable, then ease myself into this.  Time frame: an additional 9-12 months. (4th Q, 2016)

I would appreciate any comments, feedback, anecdotes or general advice on whether this seems to be a practical strategy moving forward.

Thanks!

@Joe Hughes 

I personally love buy and holds. Passive income is (in my opinion) simply the best. Having money in your pocket every month is a great feeling. Congratulations on retiring! 

Troy

Congrats on being able to quit the day job at 47.  That's awesome.  I think it sounds like a solid plan but it seems like if you were doing 4 flips while working it seems like you could have more bandwidth, so why not challenge yourself a little more?

 Also, how are you find your flips?

Keep doing the flips until you realize you can make as much with a year or two in rents to match the profit on the flips.

Start a rental empire of cheap houses.

How do you flip houses working 60-70 hours a week? 

Welcome @Joe Hughes . Plan looks good and even better that you wrote it down!

Congrats on going it on your own! As @Chris C.  asked, I would love to hear how you pulled of 4 flips a year working similar hours as I do. I'm hoping to buy and hold four this coming year with 60-70hr work weeks and weekends with my kids. Flipping a home is a stretch goal for me with this schedule. 

Thanks for all of the great feedback guys !  It is much appreciated and gives me some clarity on my plan going forward.

To answer some questions posted:

Where do I find flips to buy? It's been all auctions so far. 2 have been from a Sheriff's Auction and 2 have been from Auction.com. I just bought three more properties this week alone, and 2 of them have been from Auction.com and 1 was a FSBO. The 2 auction properties will be rehab and flip, and the FSBO is a Tri-plex that I am going to hold onto as a rental.

How did I find time to flip houses will working 60-70 hours per week?

The simple answer is that I was partners with my brother in a family-owned business and I had a lot of flexibility.  Yes, I worked VERY hard and VERY long, but if I needed to go to an auction at the courthouse, I was the owner and I could do that.  Also, the time spent working was rarely behind a desk.  I was in the field a lot.

Thanks again for the great advice !!!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.