Teacher: New to REI-Wholesale; Sub To; Airbnb; Flips; Rentals
Greetings!!
My name is Janice R. Currently, I work as a math, special needs, and ESL teacher. I am certified both in NJ and NY states holding Masters' degrees. I live in the northern NJ, Hackensack area. FYI, before teaching I worked in Corporate America for major global companies, i.e. JP Morgan Chase, Citi-Group, UBS to name a few in various roles, such as, Accounting, Project Management, Business Analysis, Strategy. I also hold a BS in Accounting from Fairleigh Dickinson University, Graduate level Tech certification in Analysis & Design of Information Systems from Columbia University in NYC.
I plan to start my REI journey/career on a part time basis while teaching. My most immediate goal is liquidity!!! Let's get my 1st deal done and get some cash in my pockets while obtaining some experience. I am open to obtaining my NJ RE license, but after listening to some of gurus on You Tube, it appears that it's "nice to have"; but not a necessity as I am interested more in the "investment" side of the business. What are your thoughts?!!
My current REIs focus is on Wholesaling, Subject To, Airbnb, flips, short/long term rentals, tiny homes, and RVs and mobile homes.
I am open to suggestions, advice, to meet up and team up.
Thanks to all!!!
we've had plenty of prior posts on the license. Don't forget it costs about $2k-$3k annually just to keep your license active normally. So, if you aren't doing many on-market deals through the MLS it won't be worth it. Plus, there is the concept that being a real estate agent is still a profession. When will you have time to truly learn the profession? Find a good agent and let him/her do the work for you.
That being said, much of what you are looking for doesn't immediately lend itself to on-market stuff. As with all a REI, you make your money when you buy the property normally.
Remember that many of your interested (e.g. wholesaling, Airbnb, flips) will be considered active income and tax at your regular ordinary tax rate. Profit on flips will be subject to self employment tax. New investors think its a great way to generate cash, but its also tax inefficient. Also, they actually are somewhat more "advanced" investing avenues and not necessarily the eaisest. As with most anything in life, its about "who you know." And you need to know a lot to get the leads to get these deals.
What is "liquidity" to you? At least you have a solid full time job. Its good for being able to obtaining financing. You'll need to generate more seasoned income to get more financing to keep leveraging. However, you do need cash to start.
That's the REAL short of it. I'd be happy to chat. Good luck.
Wow!!! You have made some excellent points all around. I didn't know that to keep your license active the cost is $2K-$3K!!! OUCH!!! Definitely, need to chat with you on this point. I keep getting different advice, such as, if you get your RE license, then it's a good way to get MLS access, data and comps free otherwise you have to pay for me it. I understand Zillow is not reliable. Is that true?
Because you work for a RE broker, you get info first before other REI investors know about the property therefore you have an advantage.
Taxes: I am highly concerned with this subject even before REI. I need to understand what I can and can't write off, deduct, etc for real estate, especially working out of the home office set up. I understand that REI get great tax breaks. Is that true? If so, can you tell me a couple. Or better yet, is there a book on this subject you recommend? If I am taxed at ordinary tax rate or self-employment tax rate, I am in big trouble.
Nevertheless, if Donald Trump can pay next to nothing in taxes, then I need to learn from the Pros/him and to set up my biz properly via LLCs and other intelligent tax advantaged vehicles.
"Who you know": When you are right... you are right!!! Let's discuss liquidity from both a short term immediate cash flow perspective and a medium to long term cashflow experience to build financial independence.
Solid Full time Job: To be determined.... I am changing school districts this year and currently job hunting. Yep... gotta have $$$ for sure. I am doing this because as a teacher I don't make enough income vs what it took me to become a teacher with student loans around $150,000. OUCH!!!
I am off for the summer and have more time to focus on my new biz. I will reach out tomorrow.
BTW, I would like to know more about you and your REI experience/journey.
Thanks in advance for taking the time to respond and willingness to educate.
With Kind Regards,
Janice
Quote from @Janice Reaves:
Greetings!!
My name is Janice R. Currently, I work as a math, special needs, and ESL teacher. I am certified both in NJ and NY states holding Masters' degrees. I live in the northern NJ, Hackensack area. FYI, before teaching I worked in Corporate America for major global companies, i.e. JP Morgan Chase, Citi-Group, UBS to name a few in various roles, such as, Accounting, Project Management, Business Analysis, Strategy. I also hold a BS in Accounting from Fairleigh Dickinson University, Graduate level Tech certification in Analysis & Design of Information Systems from Columbia University in NYC.
I plan to start my REI journey/career on a part time basis while teaching. My most immediate goal is liquidity!!! Let's get my 1st deal done and get some cash in my pockets while obtaining some experience. I am open to obtaining my NJ RE license, but after listening to some of gurus on You Tube, it appears that it's "nice to have"; but not a necessity as I am interested more in the "investment" side of the business. What are your thoughts?!!
My current REIs focus is on Wholesaling, Subject To, Airbnb, flips, short/long term rentals, tiny homes, and RVs and mobile homes.
I am open to suggestions, advice, to meet up and team up.
Thanks to all!!!
Regarding getting a Real Estate license- I've had one for over 20 years and it hasn't gotten in the way of investing. It's not necessary to have one to become an investor. Pros- Access to the MLS; usually the 1st to hear about changes in laws that may affect deal structure, landlord/tenant laws, networking,..... Cons- This is only a con if you're not making any $- There's a cost to maintain a license. Again this is only a con if you're not making any $. If you decide to get the license, great. If not make sure you stay plugged into investment organizations who advocate on behalf of investors.
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Real Estate Agent Illinois (#475. 112189)
- 3126817487
- https://www.chicagodiscountproperties.com/
Thanks Crystal for the input. Yes, it appears that if I get my real estate license it will cost me several thousand dollars to maintain each year. This of course means that I need to make $$$ for cost-benefit to be profitable. It is my sole intent to be highly profitable as a REI.
What is your journey so far? Are you an investor? Any suggestions on how/where/who to get started?
Janice, I can relate to much of your initial post. Let's connect and I'm happy to share my experiences.
@Janice Reaves You definitely don't need your RE license to invest (most agents don't invest and many don't know much about the subject tbh) People have probably commented on the cost of holding a license, but their numbers are probably low, here's why.
In NJ there are several different MLS' each one covers a different territory (though some overlap) each one comes with a different fee so if you live in JC for instance and want local deals you could join the HCMLS, but if after a while you want deals out of your territory you may need to join a different MLS all together and, depending on the brokerage you're a part of that may not be an option (your broker may not be a member of the MLS you're interested in).
The last bit of advice id give you is two fold, learn one strategy at a time and work on executing (you mentioned 8 focuses) also be careful how much YouTube, Podcasts and IG content you consume, it all sounds great and its all very exiting but often times people are left confused, frustrated and terrified as they don't quite know what to do next or what works in their target market
@Vaughn Smith Great Information!!! I did not know this at all. Yes, I do consume alot of content-You Tube, Podcasts. So can you tell me how a newbie can get started to get her 1st deal then. I need help. Feel free to give me a call to discuss this at 551-337-1961
@Janice Reaves send me a DM, you might want to take your number out of that post.
@Janice Reaves I think the biggest way you can increase liquidity is by reducing expenses. What is your current living situation and can you get into househacking?
