Posted almost 5 years ago

Changing My Direction.

    Real estate investing has provided me many opportunities over the years. The most important has been the ability to approach work the way I wanted to. I was trained as a pharmacist. I was attracted to that profession for several reasons and I held some pharmacist positions that I really liked.

      I started my career as a nuclear pharmacist. I liked the science and the pace of the work. The pharmacists on the first shift would determine their own starting schedule—the goal was to come in as late as possible to handle the work load. The later one started, the less radiation exposure one received. I liked the challenge of improving my technique so I could come in later (maybe a 1:30 am start instead of 1:00 am). I moved on to other types of pharmacist work that allowed me to control my work schedule. Once my real estate income approached my income as a pharmacist, I cut my hours way back. Many years, I worked less than a dozen shifts. I never cared much for the routine—the requirement of having to go in to work at specific times and having to report to layers of management.

     Most of my real estate income came from a portfolio of single family rentals. My first RE deal was the sale of a personal residence on land contract terms. That home had no underlying mortgage so when I began adding rental houses I always had, at least, one more payment coming in than I had to make. That emboldened me when opportunities arose. I participated in some flips and a couple new home construction projects. The last several years, I have pared my rental portfolio and deployed the funds that were freed in projects managed by a talented group of borrowers. I think of these borrowers as partners—some have led me to areas of real estate that I may not have found on my own.

     The projects I have participated in have given me insight into the housing market. I have seen market cycles and how demand changes during cycles. I have witnessed the rise and fall of the McMansions. I have seen potential first time homeowners move back in with their parents as the available housing stock became unaffordable. I have seen seniors move out of their homes because they have become difficult to navigate and maintain. I have seen improvements in manufactured housing materials and processes.

      Manufactured houses can be built at significant savings compared to stick built. This can allow the construction of an excellent starter home at an affordable price. Most recent new construction has been geared for those trading up—these houses are very profitable for the builders. The first time homeowner market has been largely ignored. More attention has been paid to senior housing but not enough. (Lowering the height of cabinets, eliminating thresholds, raising toilets, widening hallways, and installing walk in tubs can make it easier for seniors to remain in their homes.)

     I have found a builder/partner who would like to enter this market. We plan on building several houses so we must purchase adjacent lots and/or splittable lots. We prefer to build in a city where the planning department shares our vision. We have explored potential sites and are nearing the purchase of one. We have the initial funding. I look forward to this new direction.

                                             

                                               Please subscribe to this blog with the button below.



Comments (2)

  1. Jeff I'm enjoying your thoughts on paper thank you


    1. Thanks for stopping by and taking the time to let me know.