Let me start with a little background
>Live in SE Wisconsin
>Dropped out of College in 2015 because wasn’t sure my direction
>4 yrs working full time for family owned HVAC business (730-430 M-F)
-HIGHLY Interested in real estate and land development for 2-3 years
>Last year bought 2, 2-fam lots
-Built/sold 2, 2 fam condos
-Gained capital that I want to reinvest
>Just closed on my 3rd duplex lot going to begin building in May
>Just purchased my first rental property:(Hartford Wi duplex)
-Trying to diversify portfolio
-Paid 200k 10% down
-Rents 850 per side (thinking about upping rents, also want to incorporate a BRRR process)
This is currently where I’m at^. I’m basically at a point where I don’t want to stick my neck out too far while starting out, without proper knowledge/experience. Met with a few great people while networking and searching for mentors. Some suggest I go back to school to apply my current knowledge and build around that with some sort of business/real estate investing classes/courses/certificates/associates degrees.
I currently am reading books, forums, listening to BP podcasts daily trying to gain as much knowledge while still handling my “9-5” and also my portfolio I mentioned above.
I want to keep growing, but I don’t want to get ahead of myself, are there any degrees or programs that I can take to kind of get a better grip on analyzing markets, valuing assets, and gain other essential skills needed for a real estate investment career? At some point I’d be interested in getting my realtor license as well.
If you guys can provide me with any advice I’d really appreciate it. Keep buying rentals with capital and financing & diversifying & building my portfolio while learning on the fly or step back and sharpen some corners in my brain so I go at it with a more fundamental and knowledgeable approach??
Thank you & I love this page/BP community!!
Sounds like you have a start, What I have found is buying value add has been huge for me, the fact that you have worked in HVAC you have some understanding of construction, so why not buy what others cant and do the repairs up front to your liking? I buy stuff that needs full rehabs at deep discounts, and do full rehabs, New furnace, water heater, electrical panel if needed, flooring, kitchens, roof, windows, ect as needed and force the value up, so I tend to buy between $20-50K so $10-30K rehab and get an ARV between $80-120K with rents at unusually .8-1% of ARV or 2%+of my all in cost, this spring boards you forward, doing BRRR without needing more cash, because you can get all your money back out, I try to keep my equity high and debt low with the prospect of economic changes over the terms of a loan, lots can happen in 15+ years. let me know if i can help, I have 24 locations, 27 doors Im in West Bend and have stuff all over WI. Also do you have your 608? I have been looking for a guy to vac and charge if I install an AC when I do a furnace, ( I am licensed just havent taken my 608 yet no vac pump or charge scale either.)
@Steven Nitschke congratulations to your success so far! You are 23, you own rentals and you have built - that is HUGE for you age! I would say you are past the steepest part of the learning curve! It get's easier from here.
I would not encourage you to go back to college, unless this is something you crave and you feel like studying would make you happy. I have a degree in mechnaical engineering and one in automation and never worked as an engineer. College education is usually a requirement, if you want to climb the corporate ladder and are looking for a W2 career in management. Which is something I did for almost 20 years and will not go back to!
If you are looking to aqcuire skills that help you grow personally and intelectually you have two options. One is to pick specific classes and seminars that teach skills you need. For example, if you want to better understand the financial side of business take a 6 week accounting class for business owners (not one for bean counters) and learn how to read a balance sheet, a profit and loss statement and how to manage a business based on numbers.
If you want to advanace you real estate skills and push your envelope, take a job with a large real estate developer or builder. You could work as a project manager, expeditor or field tech. The most interesting jobs are on the interface between jobsites and the office. People who can bridge the gap between white collar and blue collar worlds are always in demand and the jobs are very interesting. Always try to work for the skills you can obtain, don't work for money. On that note, if you have not yet, read Rich Dad Poor Dad.
Meanwhile keep growing your portfolio, reading and networking. If you have any questions feel free to reach out and time! Good luck!
What a start! I think it sounds like you're going to keep going, so maybe start thinking bigger. You've got the development going already, if you like it then keep going with it. Start focusing on scaling that business, get with someone who has done it and learn from them. That's my $.02 anyway.