Contractor that wants out of the Construction game!

Long Island, New York
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Contractor that wants out of the Construction game!

Jason Harty
Contractor 路 Long Island, NY 路 Member since 2022 路 42 posts 路 23 votes

Hey everyone! 

My name is Jason Harty and I have been in residential construction for 17 years. I started my own company 6-1/2 years ago because my back was against the wall and its a skill that I possess. The past 2-1/2 years I have been on a journey of self discovery and searching for my purpose and life goals. I have set some lofty goals for myself and plan to get there through gratitude, selflessness, selfishness and love. 

I successfully flipped one home and used those profits in currently building myself a home for me, my wife and two dogs. The building process slowed with the rising material costs with the COVID inflation, yet we still press on. I have been using my own home building process to showcase our skills to attract larger projects along with higher class clients, it has been working. I am getting tired of working this industry as I study more and more about building a business and becoming and owner as opposed to an operator. My goal has been to have this company nearly self sustaining by 2023, sell it or keep as an asset. 

Real Estate has always been that shiny object to me that I wanted to dive into and create wealth so that my family is taken care of for the long term. From juggling clients and personalities over the last 17 years in my industry, I feel strongly that commercial real estate is the path for me. The self-storage and industrial buildings has been what is attracting me the most, though I am hesitant to jump in on any deals. 

My situation is as follows, and I am looking for guidance. 

In 6-8 months I will have likely $0 in the bank but nearly $600,000 in equity on the home I am building. "
My thoughts are to somehow leverage my equity to get into my first deal. 

OR 

I am in construction! Is there anyone I can help out there that is in the commercial/self-storage game that will be willing to guide me on these endeavors. I believe my construction knowledge can be beneficial to anyone who does not possess this particular background. 

Open to feedback and I am excited to meet many of you! 

-Jason Harty


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Pat L.
Rental Property Investor 路 Upstate, NY 路 Member since 2012 路 3k+ posts 路 3k+ votes
4y

I agree with Jay. The build, stay, sell every couple of years strategy would net you the highest return & you're in control. We have several friends who have done exactly that, one retired to Naples Florida in 2000 & is on their 3rd million++ home, all paid for from previous builds/rehabs. 

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker 路 Cody, WY 路 Member since 2010 路 28k+ posts 路 41k+ votes
    4y

    I think you'll be better off meeting local investors to network and help you get started. You sound ripe for a partnership because many investors have money and knowledge, but can't swing a hammer. Go to NETWORK at the top of your screen and you can search for other investors and investment groups in your area. You can also check meetup.com or search facebook for real estate investment groups, clubs, or meetings in your area.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant 路 Summerlin, NV 路 Member since 2014 路 45k+ posts 路 66k+ votes
    4y

    many builders do this  build a home get nice equity live there 2 years then sell and pocket the 500K tax free for life..  thats what i would do if you dont mind moving every 30 months or so.. 500k tax free over a 10 year run would be quite the nest egg .. !!!  

    I agree with nathan partner with money and go forth and succeed. 

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  • Pat L.
    Rental Property Investor 路 Upstate, NY 路 Member since 2012 路 3k+ posts 路 3k+ votes
    4y

    I agree with Jay. The build, stay, sell every couple of years strategy would net you the highest return & you're in control. We have several friends who have done exactly that, one retired to Naples Florida in 2000 & is on their 3rd million++ home, all paid for from previous builds/rehabs. 

    2Reply
  • Steve Vaughan
    Rental Property Investor 路 East Wenatchee, WA 路 Member since 2014 路 10k+ posts 路 16k+ votes
    4y
    Quote from @Jason Harty:

    My name is Jason Harty and I have been in residential construction for 17 years. The past 2-1/2 years I have been on a journey of self discovery and searching for my purpose and life goals. I have set some lofty goals for myself and plan to get there through gratitude, selflessness, selfishness and love...becoming and owner as opposed to an operator...by 2023 

     In 6-8 months I will have likely $0 in the bank but nearly $600,000 equity in the home I am building.

    To add on to what Pat and Jay said, my uncle-in-law did the build then sell then build 4 times.  How many until no mortgage at all we asked him.  3 was the answer.  So probably 10 years. 
    As a buy and hold landlord,  it took me 14 years of hunting and grinding to have a paid off home and be able to coast.  Just for reference.
    It's definitely difficult to remove yourself when you're the one that makes it work.  I thought I was done but find myself to be the one to prevent my PM from having to call an electrician then a plumber to replace a stupid hard-wired garbage disposal, or any licensee to swap a light fixture, wall heater or water tank.  I did the disposal in an hour and saved $430. My get back in my business rate is at about the $200/hr savings rate. 
    No amount of working 'on your business' will change the fact that sometimes it will need to be you.  But you can get more selective and honestly it's kinda nice to have a project every now and then. 
    Purpose searching is a worthy and healthy endeavour.  I'm doing similar and am about to begin reading Finding Your Why.  A purpose involving gratitude and selflessness as you mentioned will work itself out whether you get into SS or industrial or not and I applaud it 馃憤

    1Reply
  • Jason Harty
    OP
    Contractor 路 Long Island, NY 路 Member since 2022 路 42 posts 路 23 votes
    4y

    Awesome responses! I have considered that method of moving every couple years. My wife and I would like our current home to remain as a home base for a while. We have moved 6 times in the last 10 years juggling buying, selling, renting in between, living in temp housing while building, etc.. Frankly, we would like some stability. 

    We consider getting into flipping homes to kick it off with the construction knowledge abd quite a few employees to make a reno very speedy as well as cost effective. 

    Our end goal is cash flow, large assets, primarily commercial. Maybe flipping a handful of homes up front can generate some traction with getting into the game. 

    Either way, I would definitely appreciate some guidance on leveraging our equity upon our homes completion. 

    0Reply
  • Justin WindhamPro Member
    Banker 路 Nationwide 路 Member since 2015 路 4k+ posts 路 1k+ votes
    4y

    @Jason Harty

    It鈥檚 nice to have you here!

    This is a great forum with very knowledgeable members that will help to guide you in the right direction.

    The site has quite a few tools that can be helpful for new members. For example, if you are looking to connect with other members near you, want to learn from people in a specific area you鈥檇 like to invest in, or have a desire to find people interested in certain topics, you could use the search feature here: https://www.biggerpockets.com/search/users


    I really like the alerts feature that can quickly guide you to current topics that may be of interest: http://www.biggerpockets.com/alerts

    1Reply
  • Suzanne PlayerPro Member
    Attorney 路 New York City / Long Island, NY 路 Member since 2020 路 597 posts 路 248 votes
    4y

    Hi Jason

    You are on Long Island, in NY?  I didn't see a place on your profile page, perhaps I'm scanning too quickly but if you are, you can join us at our event, posted on Bigger Pockets here:

    https://www.biggerpockets.com/...

    I post our meetups every month on Bigger Pockets, you can also join us to get notified automatically at https://www.meetup.com/real-es... (choose Allow Group Leader to send You Messages, or whatever it's called, I really only message when posting a new event, no spam )

    516-503-7959
    1Reply
  • Jason Harty
    OP
    Contractor 路 Long Island, NY 路 Member since 2022 路 42 posts 路 23 votes
    4y
    Quote from @Jason Harty:

    Awesome responses! I have considered that method of moving every couple years. My wife and I would like our current home to remain as a home base for a while. We have moved 6 times in the last 10 years juggling buying, selling, renting in between, living in temp housing while building, etc.. Frankly, we would like some stability. 

    We consider getting into flipping homes to kick it off with the construction knowledge abd quite a few employees to make a reno very speedy as well as cost effective. 

    Our end goal is cash flow, large assets, primarily commercial. Maybe flipping a handful of homes up front can generate some traction with getting into the game. 

    Either way, I would definitely appreciate some guidance on leveraging our equity upon our homes completion. 

    Thanks so much for pointing out my incomplete profile. I just updated some info! I just signed up this past week and haven't fully set up yet. And, thank you very much for the new information about meet-ups!

    0Reply
  • Sarah Esposito
    Real Estate Agent 路 Long Island, NY 路 Member since 2021 路 22 posts 路 6 votes
    4y
    Hello! I am also from Long Island. I would love to help you. Long Island is a very "hot"  market right now. I am sure that you know that. A lot of people are moving from the city to Long Island right now. Have you ever thought about taking a HELOC out on you home and investing in a flip? After flipping a residence then using the money that you have made on it to use in investing in a long term rental that needs to renovated so that you can do the BRRR method?
    1Reply
  • Jason Harty
    OP
    Contractor 路 Long Island, NY 路 Member since 2022 路 42 posts 路 23 votes
    4y
    Quote from @Sarah Esposito:
    Hello! I am also from Long Island. I would love to help you. Long Island is a very "hot"  market right now. I am sure that you know that. A lot of people are moving from the city to Long Island right now. Have you ever thought about taking a HELOC out on you home and investing in a flip? After flipping a residence then using the money that you have made on it to use in investing in a long term rental that needs to renovated so that you can do the BRRR method?

     Hey @Sarah Esposito!!

    Yes! That is a very good possibility on the direction I'm going to head. My current home is still under construction and would not qualify for a HELOC in its current condition. This particular situation will be viable at the end of this year.

    I鈥檇 love to connect with more local investors to continue my learning and see how it is that I could help out and get into some deals myself! 


    0Reply
  • Sarah Esposito
    Real Estate Agent 路 Long Island, NY 路 Member since 2021 路 22 posts 路 6 votes
    4y
    I would love to help you! I am actually a registered nurse  and an real estate agent. I work out of long Island. I am looking to grow my rental portfolio and work with investors. If you need any advice or help on getting started please let me know!
    1Reply
  • Jason Harty
    OP
    Contractor 路 Long Island, NY 路 Member since 2022 路 42 posts 路 23 votes
    4y
    Quote from @Sarah Esposito:
    I would love to help you! I am actually a registered nurse  and an real estate agent. I work out of long Island. I am looking to grow my rental portfolio and work with investors. If you need any advice or help on getting started please let me know!

     That sounds great! Would be happy to discuss how I could get started and how this could be mutually beneficial! 

    0Reply
  • Mohammed Rahman
    Real Estate Broker 路 New York, NY 路 Member since 2020 路 2k+ posts 路 1k+ votes
    4y

    Hey @Jason Harty - congratulations on the long history and reputation that you've built for yourself, that's awesome and not everyone can say that! 

    If I'm in your shoes, I would start learning from a very helpful youtube channel that's geared towards people transitioning into commercial real estate. 

    It's called Commercial Property Advisors: https://www.youtube.com/c/Comm...

    The channel itself also advertises the coaching classes of the speaker, but the content is still gold for people like us that are trying to break into commercial. There are a lot of videos on the channel pertaining to running/owning/managing a self storage business. 

    0Reply
  • Jason Harty
    OP
    Contractor 路 Long Island, NY 路 Member since 2022 路 42 posts 路 23 votes
    4y
    Quote from @Mohammed Rahman:

    Hey @Jason Harty - congratulations on the long history and reputation that you've built for yourself, that's awesome and not everyone can say that! 

    If I'm in your shoes, I would start learning from a very helpful youtube channel that's geared towards people transitioning into commercial real estate. 

    It's called Commercial Property Advisors: https://www.youtube.com/c/Comm...

    The channel itself also advertises the coaching classes of the speaker, but the content is still gold for people like us that are trying to break into commercial. There are a lot of videos on the channel pertaining to running/owning/managing a self storage business. 

    Thank you for the comment! I will definitely check out the YouTube channel!
    0Reply
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