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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  • Joel OwensBusiness Member
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    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    9y

    Why a property manager? Property management sucks unless you enjoy it and it is very low pay. For example on commercial real estate for a smaller retail center I might make 100,000 in commission on a deal as a principal broker and I get to keep it all. The management fee for the center might be 17,000 a year and if you work for somebody they get most of that. So basically you are working for peanuts. The PM's try to boost returns by getting paid in lease renewals and new lease ups as that money is often far more substantial then the property management fee.

    With property management people complain all the time as the owners. That business is almost a loss leader for real estate companies. I know some that manage millions of sq ft and with infrastructure it's almost  a break even for them. Some do it as a goodwill thing to make money off of the lease ups and maybe get an inside track when an owner wants to sell so they can purchase off of them. Sometimes also what I see is the property management company makes their PM fees but then negotiates a 5 or 10% equity kicker on the back end when it exits.

    I transact commercial real estate and then use that as a springboard to other investments.

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

    @Michael Swan Thanks!

    @Michael Kalis Thanks!

    @Abraham Anderson Thanks!

    @Don Konipol That is true, I do try and take only well calculated risks though.

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

    @Ian Walsh Thanks!

    @Joel Owens Good to know! I thought about PM to give myself more experience for doing it for my own properties. 

    @Account Closed Good luck!

  • Investor · Cleveland, OH · Member since 2016 · 118 posts · 147 votes
    9y

    All I can say is be smart --- you hear stories for example Jim Koch quitting a 250k/ year consulting job with no plan. Boston Beer Company was born soon after (Sam Adams). This is not the norm. 

    From what you've provided I feel you are at the beginning of the curve with real estate investing and can do both in parallel until it makes sense. I work in banking with people who own ~70 units countrywide and still keep their day job because they are good at managing both and want the income to drive additional investments. 

    I vote doing both until its smart not to. 

  • Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    9y

    Hiring a PM would probably give you far more purchasing power then leaving your job to become a PM... Plus, you have documented income with history which can help you secure financing easier.

  • Investor · Front Royal, VA · Member since 2013 · 586 posts · 418 votes
    9y

    @Daniel J. I know a bunch of property management companies that look for candidates with retail and service backgrounds. Generally, none of them will care about how driven you are about investing, they want someone who can sell and close a deal. It is a great way to learn about the management side and it will really help when interviewing property managers down the road when you actually have a property. 

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