Quick question, or what would you do? If you had a lot of money in the bank to fund flips would you do it while still working a 9-5 or don’t even bother getting a 9-5?
Sacramento CA · Member since 2019 · 25 posts · 23 votes
7y
If you have that much free time you are not doing enough. Every moment I have that is not with my family or in my businesses I am networking and cultivating business realtionships.
Flipper/Rehabber · Pompton Plains, NJ · Member since 2019 · 39 posts · 36 votes
7y
It’s a struggle I deal with weekly as I don’t have a 9-5 and I flip homes full time. Sometimes I feel like I have a lot of time on my hands and feel like I should at least get a part time job also but not a 9-5, I’m done with that. Health insurance is nice but if you make enough money you can buy your own health insurance.
Sacramento CA · Member since 2019 · 25 posts · 23 votes
7y
If you have that much free time you are not doing enough. Every moment I have that is not with my family or in my businesses I am networking and cultivating business realtionships.
Rental Property Investor · CT · Member since 2016 · 258 posts · 227 votes
7y
I would keep the 9-5 for as long as mentally and emotionally possible lol. Based on this question I suggest paying down all debt if possible, save up 6-12 month cash reserves in case you lost your job. And on the side focus on completing a house-hack first, and a couple BRRRR investments..
The BRRRR method fits a full-time schedule a little easier in my opinion. It could be a safer method, you could get great practice basically completing a flip, and then cash-out while retaining the asset and building up some passive income if done properly.
Continue improving your BRRRR process until you either:
A) Have enough passive income to request to work part-time for your employer
B) Find a partner to work with while you keep your job and leverage being a strong(er) borrower then you would be if you were self-employed
C) Quit your full-time job and move on to scaling your BRRRR business, or completing flips, or anything else you want
Usually if you keep your head down and work hard while always seeking experience and knowledge.. everything sorts itself out. You find an investment, you find a partner, lenders find you as you gain experience etc..
Rental Property Investor · Cleveland, MN · Member since 2017 · 518 posts · 354 votes
7y
Have have you been flipping for a while, or are you just contemplating it? I wouldn't quit my day job until I've done it for a while and know that that's what I want to do. I flip houses for my living (for fun) but my husband has a full-time job with health insurance, and I also own a 8-plex.
You should just sit down and make yourself a plan, and figure out how all the finances would work and what your strategy is. Good luck!
@Jennifer Rysdam..I don’t have a 9-5 right now, just a part time job. I want to flip houses to be financially free, and not work a job I hate, or work 40 hours a week. But I’ll be doing my first flip soon. I want to do 4 houses a year and aim for 35k profit or each. My question is should I even bother getting a 9-5.
Rental Property Investor · Tucson AZ / Nice FR / Washington DC · Member since 2016 · 1k+ posts · 1k+ votes
7y
Seen somewhere most flippers pull around 20k net when said and done, tho they likely think they do more on average.
You should keep it as a side gig till you have some experience. Flipping follows demand, and it will dry up, even for the pros.
I’ve been around long enough to watch the flipping cycle come and go. When it’s good it’s good, when it’s not, flippers are looking for work to make ends meet.
A good flipper has a rental portfolio or other business backing their income.
Flipper/Rehabber · Pompton Plains, NJ · Member since 2019 · 39 posts · 36 votes
7y
The thing is Paul when I got started in real estate was is to give me the quality of life that I want. I’ve reached a point in my career where my money makes more money on its own and my real estate investment provide for me and my family so I don’t need the hustle and bustle anymore. Money finds you when you reach a certain level.
@Bruno Nunes ya freedom is a big thing for me. To do whatever I want. Do a couple of deals a year, live within my means. Not to be stuck at a 9-5 I hate.
Flipper/Rehabber · Pompton Plains, NJ · Member since 2019 · 39 posts · 36 votes
7y
I try to aim for a minimum 50-60k on each @Joseph Nardiello minimum. I don’t do a deal if I can’t make that and there are a few I do that I hit 100k. 9-5 is not necessary once you do at least 3 or 4 of these a year and I have so much free time to play with my kids or go on vacation whenever I want because thats the kind of life real estate can make for you but you have to work hard to get to this level. It doesn’t come easy. I came from a poor family that had nothing and made something much more than I could’ve imagined. I’m not saying I’ve reached my goal but I well on the way. I made some smart choices and got a lucky a few times but I also made mistakes along the way like everyone else. Work hard, make smart choices and take some risks and you’ll find success.
Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
7y
@Joseph Nardiello - given that you're using a watermarked headshot photo currently, I'm assuming you don't have a lot of money. If you don't have a lot of money, I highly recommend a 9-5 salaried job with promotion upside. With a decent w2, you can get a loan to buy a house to live in where you can rent out spare bedrooms like I did at 25. At 25, I lived in the crappiest room in my own 5/3 house rent free (actually made $500/mo more than mortgage and utilities) and saved 80%+ of my engineering salary to invest in stocks, etc. I should have bought more investment properties but I didn't realize how great of a deal I got by buying at the bottom of my local market in 2009. I got into rehabbing in 2017 and my first project only profited about 9k after buying for 87 and selling for 145 within 11 weeks because there are lots of closing costs, holding costs, contractor disappointments and redos, etc. I was on site a lot and picked/bought materials but I didn't do much actual construction. The real wealth building strategy is to buy ugly, fix (with good, vetted contractors) and hold (rent out) in highly ranked school districts which tend to appreciate or highly desirable locations with high job growth and slow apartment growth. For you, probably a good idea to join your local REIA and volunteer at someone else's flip or two to learn the ropes. Good luck.
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
7y
@Joseph Nardiello. The way you talk about wanting “freedom” so you don’t have to work a job you hate is the most unoriginal reason for getting into real estate. As others have said it’s not easy, so I recommend you have a different reason for doing this.
@Syed H. Thank you.and I do have a lot of capital. I was born into some money.
That’s great, congrats!
Honestly, than you don’t even have to flip. Partner with flippers and invest in other passive methods. Let them do all the work, you take a piece. You can do no work and collect a nice return. If you have enough money, $140k/year is easily achievable just by investing.
What are your goals? (Work [can be REI or your 9-5], Relationship, Spirituality, and Generativity [Legacy or Contribution to others or community])
Why are you doing this?
What are you looking to gain after you hit your goals?
What is your temperament like?
I have flipped houses and after doing it, I learnt a ton about myself, people, entrepreneurship, and life. You really do!
I don't want to over-personalize your question, but to be precise, flipping requires knowing what your goals are in those 4 aspects I've stated above in #1. ☝️
A few notes:
Flipping is an extremely active form of real estate investing and can take a lot of you as a person. Flipping + 9-5 is not the wisest idea. In addition, dealing with other people, especially shady CONtractors, note the CON [sorry to all the contracts on here (not really 🙃)] and city inspectors were not my cup of tea 🍵. The emotional rollercoasters, in my opinion, felt like a future heart attack waiting to happen. No point of making if one cannot spend it lol 💰💰
If you are doing this specifically for freedom of time, believe me, you will be running around for the most part AND yes you can get a PM or a great contractor to mitigate this. However, anything can still happen in which you may need to jump in.
When you hit your fiscal goals, you still need to make money and if you flip, then you need to flip more houses, right? Or you can parlay that money into a somewhat passive REI asset class. You might as you well consider other asset classes today to see if there is a fit for you.
Temperament is the one attribute no one will tell you about in Flipping! If you are overly nice, this is not the game for you. I learnt this in so many ways! 🤨Know your temperament and be ready to manage it constantly.
Scale. For you to really flip a lot of houses and at scale, you will need a great contractor or you become one and build a solid team, basically, you create a business for yourself.
Undoubtedly, I am not a champion of flipping. However, I am just one person, LOL. One perspective, a ton of successful flippers out there. I interview a bunch on my podcast. All I am saying is know thyself 🤗
All I'm saying is that people almost subconsciously think Flipping is the one way to get started [not sure if this is the HGTV factor]. Interestingly, you should always start with why am I doing this?
A good place to start is to strive to truly understand the end goal before starting the journey.
Flipper/Rehabber · Atlanta, GA · Member since 2018 · 49 posts · 31 votes
7y
There are arguments to go both ways on this. It ultimately depends on YOU and what YOU want. With having a 9-5, you have the ability to get financing a little bit easier, which is great if you want to start building your passive income through rentals. And, if your job pays well, it gives you another source of income to put into real estate. You can always quit your 9-5 if you prove to like and be good at flipping once you've done a few. Or, you can quit your job now and dive in full time and possibly make more money flipping than you would have made at your job. If you fail, you can always get back to the 9-5 game if you need.
Personally, I am in a similar situation job wise and financially. I am deciding to quit my 9-5 right out of the gate because I love real estate and I want more control over my own life with having a young family at home.
Just depends on YOU and your situation.
I hope you gain some clarity from everyone's feedback.
uick question, or what would you do? If you had a lot of money in the bank to fund flips would you do it while still working a 9-5 or don’t even bother getting a 9-5?