Here's my backgroun, How should i proceed?
Hey guys, my name is Blake Catanzano and I live / invest in Oklahoma City. I've been browsing the forums for months and am now ready to get myself involved with this awesome community! I wanted to share with you guys my financial position and some of my goals so I can then ask you guys how you suggest I proceed.
First of all I turned 27 years old this June and live in Moore Oklahoma. From a financial perspective I have zero debt. The house I live in is approximately $220K and paid off. I have a new truck which is also paid off. I work as a roofing salesman and earn 200-300K per year. Once my remaining commissions come in this year I will be at around $315K cash in the bank. I do have some large projects in the pipeline which could increase that number by another 100K or so but its safe to say low 300's and I will have a tax bill of about 50K this year so ultimately it is very safe to say I am liquid for 250K right now that I'm ready to invest.
Due to my job I have access to subcontractors of all trades... roofing, tile, granite, flooring, paint etc at pretty much cost (day rates of the actual laborers).
I have flipped two houses in the past. Both were homes i purchased with cash after the tornadoes in 2013 and one i sold for a 49K profit and the other one i live in which is worth well over 100K more than I have in it.
My brother is currently working on getting his real estate license so we have access to the MLS and can write our own bids. I had him get started on this due to suggestions by this community saying having your own license is the way to go. He is currently working a hail storm in Dallas and will be back in Oklahoma by the end of October. Due to a family tragedy I had to end working that hailstorm early and head back home. However he is there wrapping up his jobs & my jobs so we won't be ready to start flipping for about 60-75 days.
These are my goals / long term / short term situation. I have earned over 200K for the last 4 years as a roofing salesman. I work in an area where there are a lot of hail storms and I also chase storms so from an earning perspective I am able to go hard for about 4-6 months and make my money. For the rest of the year I have a ton of free time. I am 1099'd and have several LLC's which I have taxed as an S corp. I do a lot of write offs through this and one thing im curious about is how i can structure house / flipping & rentals in my business.
I plan on continuing to work in the industry i am in due to the flexibility and earning potential... on good years i will very likely be able to earn north of 350-400K and still have 4-6 months I can dedicate to REI.
***What I would like to do***
I would like to be able to retire in the next 15 or so years on a mountain of rentals. I have paid cash for things my whole life and never finance. I do have credit but for the last 3-4 years I have always paid cash and used a debit card. I did take out a 3 secured CD's to keep my credit revolving and increase my score in case I wanted to leverage.
For the immediate I would like to get started flipping homes once my brother finish's his real estate license and gets back to Oklahoma. I would also like to start building myself a rental portfolio. The house I live in is paid off and fully remodeled so I am comfortable staying here for the next 10+ years. I have the dream truck I want and don't have the desire to spend on a vehicle. So essentially I would like to funnel all of my cash + future cash towards building a rental portfolio and flipping homes during the downtime at work (storm season starts around march and typically ends by November).
What do you guys think? Sorry if this post seems scattered my idea was just to lay my situation out on the table and see what the brilliant REI minds of this community think!
Best regards,
Blake