Want To Go Full Time, Advice Needed Please
I am not working at a job, and want to devote full time to REI. I'm still doing quite a bit of heavy studying, and this is really like school. I feel it requires a full time effort, not part time. During the time I'm not studying, I've begun constructing deals for prospects who are starting to call more and more. It's getting to be maybe half and half spending my time between these two activities.
I just got a modest amount of cash which I made from my own house, after selling out a chunk of my equity. I want to use this: (1) to live off of, (2) for marketing expenses and (3) some more modestly priced RE courses here and there.
I figure this could carry me for several months.
Is it reasonable to think that after several months (and hopefully quite a bit less) I could possibly have SOME profits and some cash flow going, and can I refrain from working at a dumb job, wasting my time (what I feel would be completely wasteful) while I'm trying to get things rolling?
Although a job would stretch out my cash a bit, I feel that it would slow my progress down a lot, if not ruin it altogether. If the job were full time, I don't feel I'd have much remaining time for real estate investing at all.
For example, the last job I had involved sales, where they not only expected me to do sales in the day, but also paperwork and organizing leads at all other times, and then providing the info to them in a "report." In their minds, time I spent doing paperwork was not really work, and they were extremely jealous of any free time I might have had, and figured that I owed it to them without getting paid anything above my commissions. I had been there a year, and before I started, I had it in mind to do REI in my spare time, but of course it never happened, so I'm at least one year behind already because of this.
In case you haven't guessed, I'm really serious about investing, and want to make a go of it FULL TIME. I was just sitting down at my computer getting ready to write out a plan, although I'm not great at doing that. I thought I would post here first, in the hopes that someone could give me some insight, and some helpful advice. Please respond, thanks.
Here is a historic view.
REI rarely provides cash flow to live as opposed to capital gains. People talk about being rich on paper but having no cash to live.
There are strategies that are more aligned with bringing in regular cash. Flipping or other such things. Even then it is hit or miss rather then something you can count on.
If you do not have a steady job the lenders will rate you as a higher risk so you will have issues on that front.
It is really your call what you do.
A compromise vote would be to find a day job (or evening being better) that is fixed. Loading boxes as UPS for instance pays well and keeps your days free. You would be doing it so you have steady income but only doing something that stays out of the way of the free time.
Remember that if you are changing fields you still might have some slight issues with the loan applications. A pay stub goes a long way. Being in the same industry could be better other then it looks like you were in sales. Sales and commission income can be an issue as the income might not be steady.
One other idea that might help solve the question. Get over to a book store or library and look up the book "The Weekend Millionaire's Secrets to Investing in Real Estate: How to Become Wealthy in Your Spare Time." If you do need to work a normal job this covers how you can still do very well with limited time.
John
[addsig]
Lenders? Loan applications? For what? I'm not planning on doing any conventional financing at all. Also, I'm way to old to be loading boxes at UPS.
Okay, I think I need to make myself a little more clear. I'm probably either going to do this full time, or probably not at all. I really would like some more optimistic, positive responses, instead of someone who adivses me to go and load boxes at UPS, when I'm in my fifties, and then tells me that real estate investing is too hit and miss to depend upon, ever.
On the other hand, if this is really the bottom line, or the consensus of most people, then I suppose I'll look for another endeavor, as it certainly would not be worth wasting my time here.
Rambler- I don't believe John was trying to discourage you. He was giving you an option to look at. I think you've made up your mind and want someone to tell you to do it. So draw up your plan and get busy investing. Good luck
Not me, man, I'm headed down to UPS this morning. I'm all brown.
Rambler-
You are not specific about your experience on TCI. Take some time & tour the Forums - especially the Beginner Forum. Read ALL of the postings and replies. Take notes. You are in class - and this is the premier class. You are being taught by the best of the best creative investors.
When you are finished, you should have a better idea of where you are and where you want to go. Post questions here to clarify that which you are unsure of.
Find and attend local REI clubs. You will make invaluable contacts. Perhaps also you will find a mentor at one or another of the club meetings who will teach you and point you to potential deals and/or areas in which to research and invest.
However, the biggest bang for your buck will come from TCI. Read, ask questions, read again, post, read again. You'll get there!! Remember, you're learning not from those who just write books, but from those who do - every day.
Break a leg(means good luck)!!
Alan
Hey Rambler,
I think you need to calm down.
I read your first post and you asked for some heplful advice on creating a plan. You were given some advice, but instead of saying "Thanks, but..." you bite their head off. Not the way to make friends. No one here knows you or how old you are or if you have a bad back or anything about you.
REI is either for you or not. You need to decide. In one post you say you want to go FULL TIME and in another you say you may not do it all (I guess you were saying part time is not an option).
Personally, I don't think a night time job is a good idea; you would have to sleep in the daytime. A part time job is not a bad idea, but it depends on the hours, etc.
You have to tell people A LOT more about your situation, etc before anyone can recommend a plan to you.
Id recomend home depot or lowes. They are good about working with hours, pay is decent, and they'll hire anything that moves.
Thanks, but no thanks. I have much experience in business, and I might reopen one of them. I was hoping to make this real estate business my new business, but according to opinion it won't work.
I can restart my landscaping business which I had for 10 years, and make a living at it full time, but I won't have a whole lot of time to devote to real estate.
Plus, it will take up most of my funds to reopen it and I won't be able to do marketing.
What area of investing will you go into?
I will be doing sub2. I will decide how much money I need to make each year via downpayments, and figure out how many properties I need to buy and sell each year. Then I will tailor my advertising to this. If I can count on a certain % of people to respond to my ads, and a certain % of those to have a house worth buying (and the motivation to sell it to me), then I can easily figure out how much advertising to do in order to make my required yearly income.
Maybe this approach will help you plan to do this full time. So .. what area of investing are you interested in?
I would also like to do sub2, and I want to get into foreclosures, as well as wholesaling/flipping, which would be better for cash flow.
What have you been studying? Have you bought JohnLocke's manual or course?
As long as we know the business we're going into like the back of our hand, and we create a realistic plan for making the income we need, I think we'll do well.
For starting out, I have chosen to stick with sub2's, but I may add things like wholesaling at a later time.
I think it all comes down to advertising, making sure we reach enough people to create the desired return on investment.
I guess I would figure out how much I planned to make from each type of transaction (sub2, wholesaling, etc.), and figure out how many of each I needed to do each year, then advertise accordingly.
Also, it sounds like you have time on your hands at the moment. I would use this time to visit county auctions, find out how much people are usually paying for downpayments, rent rates, find out how many foreclosures there are each month, how long does it usually take to sell a house, go to a REI meeting, go ahead and find a good RE attorney, etc.
I'm not sure why others are simply telling you to get a job without much thought but I'll throw in my two cents.
One of the greatest self-help books ever written is a book called "Think and Grow Rich" by Napolean Hill. Most other books on this subject repeat his teachings but usually in a more easy going style (I find the book somewhat difficult to read).
The fact is that if you want to be sucessful at something you have to obsess over it. Every waking hour should be spent thinking or doing something about real estate investing. Overwhelm yourself. You must become very focused to what you want and be determined to get what you want even if you fail miserably at it. You can't be cautious. You must stake everything on your decisions.
This is my plan--I've been investing for about two years although it has really been paying off until the past 3-4 months when things have started picking up very well.
I'm young and single and I don't have anyone to worry about besides myself. I am sure it would be much harder if you have a wife and children.
Quite frankly, you can't look to anyone else to make your decision to go into real estate investing. You will likely not get support and encouragement for what you decide to do from much anyone other than others on this board.
Well now I'm just rambing...lol
If you have any specific questions feel free to ask--this are the ones that get answered the best. These vauge questions are hard to answer because it is impossible to know your situation from your short text.
GOOD LUCK
Yes, I have purchased John's complete course, and have been "getting my ducks in order." There are a ton of foreclosures here, and I do want to do a lot of advertising.
After reading this thread, I don't know, though.
Thanks for your input, Mr. Frogman.
Rambler -
Don't get too discouraged. Everyone has different ideas and business plans and if you have created a business plan that you think will work for you then go for it. The worst that could happen is that your plan doesn't work exactly the way you anticipated and you have to adjust the strategy a little and maybe take a part time job if the finances get tough down the road.
You have already made an intelligent commitment to REI by joining this site - dont' give up now.
I would also like to go REI full time at some point and I am in the process of crafting a plan to reach that goal. My plan is to start out doing Sub To deals with lease options to tennant/buyers. After building up some capital and "filling up the pipeline" for a couple of years I plan on also investing in apartment buildings to boost up the monthly cash flow so eventually I will have enough passive income to live off of comfortably.
My point is - with a good business plan that can be flexible and changed when needed there shouldn't be anything stopping you from acheiving your goals. It might take time but it will be time spent well.
Good luck - you are taking the necessary steps now go for it...
Rambler,
Keep in mind that the people telling you to get a job have no idea how much money you have put away or how many months you can make it without working.
I wouldn't get discouraged because of this thread. What have you got to lose? Make a plan and do it.