From senior engineer to real estate investor: journey begins!

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From senior engineer to real estate investor: journey begins!

Chris Vair
Issaquah, WA · Member since 2016 · 15 posts · 7 votes

Hi!

Just joined bigger pockets and I can't explain how excited I am!  I am a 35 yr old senior engineer for a fortune 500 here in the Seattle area.  I have realized that over the last 12+ years in corporate america that the stress, bureaucracy, and increasing hours are taking time away from my family, friends, hobbies, and myself.  the thought of 25-30 more years of unsatisfying, unfulfilling work just so that I can retire (hopefully) seems deplorable and quite frankly, is not how I want to live my life.

My goal is to find an outlet for investment.  I bought my first house at 26, sold it and bought a second at 31.  I have always enjoyed real estate (sometimes I even go to open houses just to look and evaluate the market).  I believe that with the help of this site, the knowledge from others, and my personal drive and motivation, that I can make the life changes that I want.

I envision a scenario where my wife and I can go on more vacations and enjoy our relationship with less stress and more fun through fulfilling work and financial freedom.

Thanks! 

4Reply
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Most Popular Reply

Greg Harriman
Investor · Bothell, WA · Member since 2016 · 38 posts · 21 votes
9y
Chris Vair you and I are almost in the same boat. I'd say I'm a few years ahead of you BUT I'm not any closer to where I want to be! My problem is that while I've made a lot of money on real estate in the last 5-7 years, I've done a very poor job of measuring my successes and failures. 90% of my success has been pure luck. I own multiple SFRs, none of which would have been cash flow positive if I hadn't put 25% down up-front. The appreciation and rise in rents is the only reason I've made a dime on these investments. If the market had stayed flat and for some reason I had to sell, I would have actually lost money because of transaction costs. It's time I open my eyes and use the "BRRRN" method - BACK AWAY, REALIZE my mistakes, RE-ANALYZE my situation, RESTRUCTURE my portfolio, and NOT REPEAT! (Brandon Turner isn't the only one who can come up with catchy acronyms!) I know my current investments are not in line with my goals yet I do nothing about it. I continue to get rent checks. I continue to stare blankly at my net worth on mint.com but not think what steps I can take to build a steady stream of income into perpetuity. I know if I don't act soon, that number will decrease 10-25% the next time we see a correction AND if rents go down I'll end up with negative cash flow from my rentals, essentially leading to a unstoppable downward spiral. All this and I'm a CPA and CFO. I successfully control millions of dollars on a daily basis and yet a handful of SFRs could be my downfall. Heck, I've gotten away with this ho-hum attitude for 5 years now and it's increased my net worth 5 fold. I realize, now, that I'm going insane (in a good way). I know that soon, if I continue to do the same thing over and over I'm going to get different results. Maybe it's time I did something different. I live just a few towns over from you so if you ever want to meet up and chat, let me know. Best of luck to you and your future!
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  • Umar JavaidPro Member
    BiggerPockets Support · São Paulo, São Paulo · Member since 2015 · 548 posts · 79 votes
    9y

    Welcome to BiggerPockets @Chris Vair

    BiggerPockets
    0Reply
  • Debra Batterson
    Real Estate Agent · Renton, WA · Member since 2016 · 10 posts · 9 votes
    9y

    Good for you@Chris Vair.  I believe you, and salute 2017 as the year for commitment towards change.  No more corporate America!  I am also a new investor and real estate agent.  I will purchase my 2nd and 3rd home in 2017:)

    0Reply
  • Timothy Tooker
    Real Estate Agent · Puyallup, WA · Member since 2012 · 240 posts · 95 votes
    9y

    @Chris Vair

    I think you have your WHY!!! Congratulations on the first step..... Welcome to BP, this is an amazing place to learn and get involved. Good luck and GOD bless.

    0Reply
  • Jeff B.
    Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    9y

    hmm;  B&H operations will not give you all the free time you might assume(see my profile).

    Go full tilt and form a JV or Limited Partnership where you provide management advice and financing and the partner provides operational aspects. Split 50/50 because the partner WILL earn his/her keep.

    1Reply
  • Chris Vair
    OP
    Issaquah, WA · Member since 2016 · 15 posts · 7 votes
    9y

    @Jeff B. I had not thought of that and would like to know more about it.  Interesting idea and once I am armed with a little more education, I may hit you up for some Q&A.  Thanks!

    0Reply
  • Greg Harriman
    Investor · Bothell, WA · Member since 2016 · 38 posts · 21 votes
    9y
    Chris Vair you and I are almost in the same boat. I'd say I'm a few years ahead of you BUT I'm not any closer to where I want to be! My problem is that while I've made a lot of money on real estate in the last 5-7 years, I've done a very poor job of measuring my successes and failures. 90% of my success has been pure luck. I own multiple SFRs, none of which would have been cash flow positive if I hadn't put 25% down up-front. The appreciation and rise in rents is the only reason I've made a dime on these investments. If the market had stayed flat and for some reason I had to sell, I would have actually lost money because of transaction costs. It's time I open my eyes and use the "BRRRN" method - BACK AWAY, REALIZE my mistakes, RE-ANALYZE my situation, RESTRUCTURE my portfolio, and NOT REPEAT! (Brandon Turner isn't the only one who can come up with catchy acronyms!) I know my current investments are not in line with my goals yet I do nothing about it. I continue to get rent checks. I continue to stare blankly at my net worth on mint.com but not think what steps I can take to build a steady stream of income into perpetuity. I know if I don't act soon, that number will decrease 10-25% the next time we see a correction AND if rents go down I'll end up with negative cash flow from my rentals, essentially leading to a unstoppable downward spiral. All this and I'm a CPA and CFO. I successfully control millions of dollars on a daily basis and yet a handful of SFRs could be my downfall. Heck, I've gotten away with this ho-hum attitude for 5 years now and it's increased my net worth 5 fold. I realize, now, that I'm going insane (in a good way). I know that soon, if I continue to do the same thing over and over I'm going to get different results. Maybe it's time I did something different. I live just a few towns over from you so if you ever want to meet up and chat, let me know. Best of luck to you and your future!
    2Reply
  • Malcolm Boston
    Titusville, FL · Member since 2016 · 55 posts · 40 votes
    9y
    Lot of Engineers on here. We share sentiments. This forum is invaluable. Avoid analysis paralysis. Learn a reasonable amount and pull the trigger on your first deal! Good luck!
    0Reply
  • Alan Grobmeier
    Rental Property Investor · Phoenix, AZ · Member since 2013 · 919 posts · 911 votes
    9y

    @Greg Harriman

    Many of us end up successful by 'accident'.  I can attest to my own mistakes not hurting me.

    I have 9 SFRs, 6 of which cash flow $500 or more per month, 1 @ $300, & 2 @ 'break even'.  The 'bottom 3' are tying up about 300k in equity and not in good areas like the 'top 6'.  Not a worthwhile deal, to say the least. My goal is to sell them to my renters in the next year and buy a different place using all cash from the sales.  My cash flow would be +1200 a month and cash reserves increased.  By selling them to my renters I can dodge the real estate agents commission fees. ;-)

    1Reply
  • Adam M.
    Rental Property Investor · Fort Collins, CO · Member since 2008 · 168 posts · 105 votes
    9y

    @Chris Vair What's your plan? Would love to hear about your market. 

    0Reply
  • Michael Lam
    Real Estate Investor · San Jose, CA · Member since 2016 · 80 posts · 35 votes
    9y

    Welcome

    @Chris Vair,  As a fellow engineer your embarking on an amazing opportunity,  what we are all excited about or atleast IMHO, is the volatility in 2017 with the Trump presidency taking into affect.  He's laughing his way to the bank.  Love to connect with you.

    Just like any journey, it'll get rough, bumpy ..but at the end its the sunset you'll enjoy (we all seek to enjoy),

    0Reply
  • Billy Smith
    Shawnee Mission, KS · Member since 2016 · 719 posts · 313 votes
    9y

    This looks like a deal that is not working. If the deal is not generating even emergency fund money that is a sign to sale or rework the deal.

    0Reply
  • Chris Vair
    OP
    Issaquah, WA · Member since 2016 · 15 posts · 7 votes
    9y

    @Greg Harriman:  Thanks for the very honest and humbling story.  I find that the most successful people are the one's who are honest and the most inspirational people are the one's who share.  I would love to meet up, but give me a few weeks to further educate myself :)

    @Adam M.:  I'd love to connect as well, but give me a few weeks to continue to educate and refine my plan that way I can at least have an intelligent conversation with a fellow investor.  :)

    0Reply
  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    9y
    Chris Vair Greg Harriman 11 sfhs and just about there. What is it with engineers 😉 I have theorized that since we are so away from helping people and Separated from that we don't find fulfillment with the occupation.
    0Reply
  • Jonathan S.Pro Member
    Engineer · Montclair, NJ · Member since 2015 · 103 posts · 57 votes
    9y

    Always great to see another engineer here. Wishing you the best of luck as you embark on this new journey. As others have said try to avoid analysis paralysis and get out to meetups and network to get the ball rolling. 

    0Reply
  • Alan Grobmeier
    Rental Property Investor · Phoenix, AZ · Member since 2013 · 919 posts · 911 votes
    9y

    @Lane Kawaoka

    I created a bunch of my own systems to grow my business while working as an engineer for Cisco Systems.  Everything had to be 'automatic' for me to continue my career.  I was/am involved.  Just not daily.  ;-)

    For me It all worked out.  Today I am retired.  My former peers are still working.

    @Michael Lam

    I think you have to go into any 2017 long term hold property with the idea that you will probably lose money in the short term.  If you don't have the stomach (and the cash reserves), I'd stay out until I see prices/values fall.  

    But the thing to think about is that the best time to buy real estate was 20 years ago.  The second best time is today.  ;-)

    Even if you bought at the very top of the market in 2008, you could still be making some good money.  It really depends on the situation.  What screwed most people was greed without fear.  You need a good dose of both.  ;-)  Leverage was out of control.  And no one saw an end in sight.  Then, oooooops.   

    My advice, fwiw, is don't buy all your properties in any one year.  Get rich/wealthy slowly.  After all, you have your whole life to create this, but you can make multiple mistakes and mess it up.

    0Reply
  • Adam M.
    Rental Property Investor · Fort Collins, CO · Member since 2008 · 168 posts · 105 votes
    9y

    @Chris Vair 

    Good thoughts. The way we started and our big picture plan was to do rehabs and wholesale to raise capital and then execute a buy and hold strategy. Rehab margins now are so small that it's too risky in my opinion. Don't get me wrong, there are always deals to be found, just not as abundant as it was between 09-13. I'm sure it will swing back in a few years, it always does. Go to as many of those investor meetups as possible. You'll be a fly on the wall for a while, but that's a good thing. 

    I think @Alan Grobmeier is right on for 2017 outlook for buy and hold. Come to closing with a large down payment and ride it out for a few years or sit on the sidelines if you can't stomach it. Grow sloooooowww. 

    I'm an engineer also, haha! 

    0Reply
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