Starting and managing a business is not for me. Thoughts?

Starting and managing a business is not for me. Thoughts?

Dublin, OH · Member since 2015 · 41 posts · 9 votes

Hey fellas!

I have been in engaged in deep reflection and being honest with myself as to why I want to buy apartments and multiplexes.  I discovered that buying apartments or multiplexes is not a good fit for my personality. The reason is because I don't like to “manage things.”  Even if I got a property management company to manage it. I would have to manage them.

Managing causes me a lot of stress and anxiety. Some are very good at managing and others fail at it.

I remember being a teacher years ago and I disliked it because most of the job entailed managing students, attending meetings, grading papers, attending parent-teacher conferences, coaching basketball, managing my time, and managing my classroom.

Teaching was like running a business 24/7.  I wasn't an effective classroom manager, however I was a decent teacher. But being a full time teacher/manager was not a good fit for me. The kids loved me, but the stress was enormous. I didn't feel comfortable with it.

After I left teaching in 2011 I felt the weight of a 100lb pack taken off me. I did return to substitute teaching and loved that much better. At the end of the day---my day was done.  No grading papers, no coaching, no managing, and no calling parents. There is no managing as a substitute teacher--except for making sure the students stay on task, are behaving etc.(some light managing). I am a good fit for substitute teaching.

So after much reflection........

I would rather “do something” and walk away from it at end of the day. I want to set it and forget it.

Create something and sell it.

Example side jobs include.....driving a limo, acting a role in a movie, substitute teaching a class, performing in a sales role, and creating something and selling it.

Ironically some people are born managers. Some learn managing and enjoy it. I am neither.

About 10 years ago I was offered a sales position for a company and excelled at it and enjoyed it. After 1 year they promoted me to manager. I failed miserably. 

This is the same for real estate. In real estate you have to "manage your property" or you will fail. Even if you get a property management company--you have to know what they are doing. 

So what are some good properties to invest in that offers ZERO managing? I like making deals. I just don't care for managing them. 

I know "as to why" I invest in the stock market. 

Thanks folks.

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Investor · Dallas, TX · Member since 2016 · 168 posts · 195 votes
9y

@Todd Hensy  Hi Jack!!  If you don’t want to manage properties or the property management company, you have a couple options.

1) Just invest passively, but if you do this you will have very little input on anything as the deal sponsor/lead investor will be the one making the decisions and you won’t be involved much in finding deals or negotiating them.

2) Become a deal sponsor yourself -- where you find deals, negotiate the deal, raise money, etc…but have a partner that you trust that likes and knows how to manage the property management company. There is nothing to say you can’t turn over the asset management to someone else.  You can be a lead investor...but then bring in someone else to be the asset manager of the property after you close on the deal.  Let me know if you need more clarity how this could be structured so you will have passive equity in the deal while someone else manages the managers.

Happy Investing!!!

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  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    9y

    IMO, that implies transactions - - like Flipping.  Acquire, rehab, resell, relax ... repeat.

    BTW: congrats on understanding yourself.  I see so many that have no handle on themselves or what they are trying to do.

    Best wishes.

  • Rental Property Investor · Augusta, GA · Member since 2016 · 348 posts · 171 votes
    9y
    Jack Hensy ever thought of wholesaling?
  • Dublin, OH · Member since 2015 · 41 posts · 9 votes
    9y

    I thought of flipping -- but its too risky. I never thought of wholesaling. How does that work?

    I want to make money on the side.

  • Investor · Dallas, TX · Member since 2016 · 168 posts · 195 votes
    9y

    @Todd Hensy  Hi Jack!!  If you don’t want to manage properties or the property management company, you have a couple options.

    1) Just invest passively, but if you do this you will have very little input on anything as the deal sponsor/lead investor will be the one making the decisions and you won’t be involved much in finding deals or negotiating them.

    2) Become a deal sponsor yourself -- where you find deals, negotiate the deal, raise money, etc…but have a partner that you trust that likes and knows how to manage the property management company. There is nothing to say you can’t turn over the asset management to someone else.  You can be a lead investor...but then bring in someone else to be the asset manager of the property after you close on the deal.  Let me know if you need more clarity how this could be structured so you will have passive equity in the deal while someone else manages the managers.

    Happy Investing!!!

  • Dublin, OH · Member since 2015 · 41 posts · 9 votes
    9y

    Cool.

  • Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    9y

    @Todd Hensy

    Determine what your ideal "occupation" would be. You gave us some ideas when you mentioned a "set it and forget it" position you could walk away from at quitting time.

    How much did you enjoy sales? I may have a suggestion for you, if that's what "lights you up".

  • Syndicator and Fund Manager · Victor, NY · Member since 2012 · 760 posts · 345 votes
    9y
    Guess it depends on how much capital you have to deploy. Sounds to me like single tenant net leased properties would be your cup of tea (STNL). Some of these require absolutely zero landlord responsibility and as such are very hands off. You simply collect your annual reports. Be careful though because some have landlord responsibility to keep rood and structure in good shape, which is fine but at some point can or will require some involvement at some point (asset manager can handle this). You can also look into investing in syndications as I and many others on here do that. Also look into REITS. Similar to stocks l. Maybe crowdfunding sites works for you? Also can look into ground leases. Lastly might want to consider private lending. All of these will require different levels of involvement if any at all.
  • Syndicator and Fund Manager · Victor, NY · Member since 2012 · 760 posts · 345 votes
    9y
    I will also say that the best salespeople never turn off, especially if you're selling anything high value which will provide high commissions. If you want to work retail store sales or something like that, entirely different story.
  • Contractor · Glen Cove, NY · Member since 2016 · 209 posts · 89 votes
    9y

    Hello Jack. It sounds like you would be a perfect candidate as a hit man. You just find a victim. Take aim, Shoot and leave. No emotion and just a clean hit. See different places and leave town. Interesting work and no back talk. No arguments. Just shoot them in the head and vamoose. LOL

  • Ian IppolitoBusiness Member
    Investor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
    9y

    @Todd Hensy,  your personality is custom-made for real estate crowdfunding. The one drawback of crowd funding for many people is that they are not in control/managing it. For you that would be a plus. Are you a non-accredited investor? If so, there are several possible options for you. 

    The Real Estate Crowdfunding Review
    View Page
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    9y

    @Todd Hensy , I've started making private loans recently, and it's about as hands-off as you can get. Of course, I vet the person and deal like crazy and am VERY particular about who I lend to. Due diligence upfront can get you some great returns.

    I'm leery of the current valuation of the stock market. While I could withstand a big hit, I don't really want to. So I've removed much of my pre-tax investments, started a SD solo 401(k) and use that to make private loans.

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