Should I quit and go all in?!

Should I quit and go all in?!

Conroe, TX · Member since 2016 · 237 posts · 43 votes

I am wondering if I should stick with my current restaurant manager job while I get into small multi family investments or if it would be worthwhile to pursue a job in property management or another aspect of the business?

I have a good job with a flexible schedule and good pay, but I also see the value in being involved in RE, especially property management, in my day job as well. I have no experience to speak of in PM, though I do manage 70-90 employees and engage with guests all day. I have a good amount of financial knowledge and handle all of our in store financials and payroll. It would be a challenge to take much of a pay cut, and with my lack of experience I'm not sure I would be able to command the same level of salary  I do now. I'm not sure a PM company would count my year's worth of reading BP and listening to almost all of the podcasts as much experience lol. If it isn't pertitnant I am located in the North Houston, Texas area in Conroe.

Thanks!

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Real Estate Agent · Camarillo, CA · Member since 2016 · 40 posts · 36 votes
9y
Daniel Jarvis Why not do both? Keep your restaurant job and do PM part time on the side. It's probably safe to say you will be pretty far off on your salary as a PM vs your current management position. Plus if you do take a large pay cut that will both steal from potential savings you could have acquired as well as possibly put you in a stressful financial situation depending on your monthly expenses. On top of that if you're goal is to start purchasing rentals, investment properties that savings will play a big role more so then PM experience. It sounds like you've gained a bunch of knowledge from BP already. Just my 2 cents! Good luck with your decision!
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  • Real Estate Agent · Camarillo, CA · Member since 2016 · 40 posts · 36 votes
    9y
    Daniel Jarvis Why not do both? Keep your restaurant job and do PM part time on the side. It's probably safe to say you will be pretty far off on your salary as a PM vs your current management position. Plus if you do take a large pay cut that will both steal from potential savings you could have acquired as well as possibly put you in a stressful financial situation depending on your monthly expenses. On top of that if you're goal is to start purchasing rentals, investment properties that savings will play a big role more so then PM experience. It sounds like you've gained a bunch of knowledge from BP already. Just my 2 cents! Good luck with your decision!
  • Cameron TopePro Member
    Property Manager · Katy, TX · Member since 2015 · 1k+ posts · 1k+ votes
    9y

    @Daniel J. I second @Takeo Kingi, do both. Your steady job will help you with financing and you'll gain experience in PM. Unless you're the kind of person that needs to face adversity to try your best, then quit and burn your proverbial boats. 

    I found a big benefit to keeping my W2 job. 

    Best of luck!

  • Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
    9y

    Flexible schedule + good pay = stay in your current job

    That is a great recipe for real estate investing...you have time and financing on your side.  Good luck and keep us posted.

  • El Segundo, CA · Member since 2017 · 43 posts · 48 votes
    9y
    Keep your job and invest on the side. You'll thank the steady paycheck and security when you run into inevitable snags with real estate investing. Once you're successful enough with real estate feel free to quit your current job, but no need to do that now when you don't have as much experience.
  • Dallas, TX · Member since 2016 · 1k+ posts · 745 votes
    9y
    Originally posted by @Daniel J.:

    I am wondering if I should stick with my current restaurant manager job while I get into small multi family investments or if it would be worthwhile to pursue a job in property management or another aspect of the business?

    I have a good job with a flexible schedule and good pay, but I also see the value in being involved in RE, especially property management, in my day job as well. I have no experience to speak of in PM, though I do manage 70-90 employees and engage with guests all day. I have a good amount of financial knowledge and handle all of our in store financials and payroll. It would be a challenge to take much of a pay cut, and with my lack of experience I'm not sure I would be able to command the same level of salary  I do now. I'm not sure a PM company would count my year's worth of reading BP and listening to almost all of the podcasts as much experience lol. If it isn't pertitnant I am located in the North Houston, Texas area in Conroe.

    Thanks!

    I am a huge fan of REI. MY wife and I have been very blessed over the last 4-5 years with our small amount of investing. (one or two deals a year). WE are just now getting to the point where one of us might be able to leave our day jobs and go into investing full time.

    The reality is much of what we are able to do is facilitated by our W2 incomes.

    I think overall its important to get the boat close to the dock,  ie get the real estate going with some success and then look to leave your day job. that is what I personally am doing, and what I would recommend that you do as well.  Especially because you have a job that presumably you could work in off hours while dedicating regular working hours to RE.

    Best of luck to you

  • Conroe, TX · Member since 2016 · 237 posts · 43 votes
    9y

    @Takeo Kingi @Cameron Tope How would y'all recommend doing both? Just seeing if they have a part time position that would fit my schedule?

  • Conroe, TX · Member since 2016 · 237 posts · 43 votes
    9y

    @David Carte Thanks!

  • Conroe, TX · Member since 2016 · 237 posts · 43 votes
    9y

    @Mike Dymski Thanks!

    @Bart H. Thanks!

  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    9y

    You need to have a clearer idea of your objective. Do you want to be an investor or a real-estate related employee? If the former, you should definitely keep your current job. If the latter (that's what a PM, agent, etc is), then you can either transition by working part-time, getting your RE license on the side, etc., or you can just jump ship and start over and accept that a reduction in salary may be the price you pay to change careers. 

    Being an investor and working in this field is really not the same thing. In the former, you (generally) have your own capital tied up in a venture that provides (passive, but not really) income, while in the latter you exchange your time and expertise for compensation. If you don't have any capital to start with, that generally brings you to either saving some up or changing careers. 

    Skyline Properties
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  • Member since 2016 · 13k+ posts · 12k+ votes
    9y

    Stick strictly with what you have, it sounds perfect for a investor.

    Money is more important that any other factor in investing aside from understand how to use it. 

    Stay where the money is.

  • Conroe, TX · Member since 2016 · 237 posts · 43 votes
    9y

    @JD Martin I want to be an investor. The only reason I would change would be if I could speed up my investing by the additional hands on knowledge.

    @Thomas S. Thanks! I have as well contemplated trying to take a step up in my industry but to do it justice I would need to put investing on hold for 6-8 months so that's not as ideal even if it did come with a pay raise.

  • Dallas, TX · Member since 2016 · 1k+ posts · 745 votes
    9y
    Originally posted by @Daniel J.:

    @JD Martin I want to be an investor. The only reason I would change would be if I could speed up my investing by the additional hands on knowledge.

    @Thomas S. Thanks! I have as well contemplated trying to take a step up in my industry but to do it justice I would need to put investing on hold for 6-8 months so that's not as ideal even if it did come with a pay raise.

     I would highly recommend picking an area and drive it, learn it, walk thru as many open houses etc in the area.  Get to know a mile or two square in your city.  That way when a deal becomes available, you immediately know it and are able to pull the trigger on the property.

    Maybe I am biased, but I think the best way to go about things is to get your first deal under your belt and see how it goes.  You will learn a ton about being  a landlord, where you go for repairs.  And honestly you will get comfortable with the ups and downs of a property.

    Over time real estate ends up being a great investment, in the short term there are huge highs and large lows.  In our case within 60 days of buying our first duplex, we had the sale of a property fall thru, one tenant who didnt renew and another who had lost a spouse that requested we let her out of her lease (we did).  Oh and we got sued and ended up settling out of court with a less than scrupulous real estate agent.  Oh that cost us an additional $5K of cash out of pocket.

    It was a couple months of slim pickings in our household until we could get our properties rented, us moved into one of the units and basically dig out of what was otherwise a tight situation.  And going into the purchase, our D/I ratios werent all that high.

    Had we been going full bore with multiple deals etc, =we would have had to sell, or maybe worse even have been unable to make payments.

    I think we are close to a near term top in the real estate market, I think as a new investor, the best thing you can do is to learn the ropes, get a deal under your belt and see how it goes.  IMO you will learn a lot, and have a better understanding of what you want your next deal to look like.

    Best of luck to you!!!

  • Investor · Scottsdale, AZ · Member since 2016 · 1k+ posts · 885 votes
    9y

    @Daniel J. If I remember correctly, restaurant managers work long hours in the evenings and weekends. That makes it a little hard to be available when most people want to meet. You'd be a good candidate for doing some joint ventures to get your feet wet. Once you have some experience you can quit and go full time.

  • DFW, TX · Member since 2016 · 58 posts · 68 votes
    9y

    @Daniel J. depends on your goals and how cash flush you are. MF is not a "no money no problem" industry. Seems like you have a pretty good gig if your job pays decent and is flexible.

    There are many roles within the MF industry. If you're not certain to what would be a good fit take the time to go to meet ups and find mentors to figure out what interests you. 

  • Fort Lauderdale, FL · Member since 2016 · 214 posts · 95 votes
    9y

    High risk can lead to high rewards!  But it can also lead to the neigh sayers saying "I told you so".

  • Austin, TX · Member since 2017 · 7 posts · 6 votes
    9y

    @Daniel J. Congrats on reading so much of BP, considering, and learning about RE.  It is a beautiful thing.  

    I'd recommend sticking with your current job if you are still satisfied with it.  Work on ways to look for the deals and spend some time networking with other successful investors and just talk to them about it. Turn investing into that other part time job, so that eventually you can have another stream of glorious passive income.  

  • Multifamily Investor and Syndicator · Lake Ronkonkoma, NY · Member since 2017 · 139 posts · 8 votes
    9y

    Never quit your current job to begin with until you have enough work to keep you busy for whole day.  Keep networking, keep investing. When you reach a comfortable level, quit. None of gurus asks you to quit in the beginning. With the current W2, you bring financing for your smaller deals.

  • Rental Property Investor · Knoxville, TN · Member since 2011 · 701 posts · 531 votes
    9y

    I quit a $40k+ job and went to work for an apartment complex making $9hr/20hrs week. That was 5yrs ago, I've been full-time for 4yrs now and doing well. For me, I knew what I wanted to do and that was the leap I needed to make. 

  • Conroe, TX · Member since 2016 · 237 posts · 43 votes
    9y

    @Bart H. I have pretty well picked the neighborhood I want to focus in, and have driven it some. I need to pursue some more open houses though. Thanks!

    @Account Closed Thanks!

  • Conroe, TX · Member since 2016 · 237 posts · 43 votes
    9y

    @Jason Goretzki Very true!

    @Tom Reul Thanks!

    @Prashant Kumar Thanks!

  • Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
    9y

    Replace all your w2 earned income after taxes and keep your job a while to qualify for more RE.  Then retire when you have doubled your w2 earned income (after taxes of course) with passive tax deferred cash flow.

    Then retire.  The lenders love to see you have W2 earned income to qualify you.

    Swanny

  • Investor · Plymouth, MI · Member since 2016 · 48 posts · 70 votes
    9y

    There is one question you need to ask, what are you most passionate about?  If you love restaurants, then do that.  If you love real estate then do that.  If you are unsure, then neither is right and you need to keep searching for the thing that makes your soul ignite with passion.  

    I've been in real estate for 10 years.  I have made and lost millions a couple times over during that period.  But I LOVE real estate, I love deals, I love people... I just love the entire thing.  When poo hits the fan, you need to step back and know that even if you don't make any money doing what ever you do, that you love it.  If you got paid nothing would you stay in restaurants?  If you got paid nothing would you still do real estate?  

    I love that you are searching for the answer, that is the first step!  I wish you success and a soul that is fulfilled with purpose and drive.  

  • Investor · Sevierville, TN · Member since 2015 · 121 posts · 674 votes
    9y

    Grant Cardone talks about not getting rid of your first stream of income. Like others have said, keep your dayjob and do real estate on the side.

  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    9y

    In life, the only risks we regret are the ones we don't take.

    Private Mortgage Financing Partners, LLC
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    9y

    If you have to ask the question, you are not ready.  Work RE on your off hours and burn the candle at both ends. At some point, if you are meant to be in RE, your income will be more than the restaurant and the picture is much clearer.  

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