Best Use Of Time: Activate RE License or Start Pressure Washing?

Question

Hey guys,

I graduated recently, so I have more time to devote to getting into my first deal (a triplex or fourplex that I will live in). I'm working full time at a property management company to save money and have a limited amount of time, so I'm deciding on either activating my inactive RE license (hopefully for a brokerage with agents that invest in RE themselves) or starting a pressure washing business, because I don't think I'll have time for both. Any advice for me or pros/cons of either? My highest priority is to save enough money as quickly as possible.

Steve W. · Answer

Hi Christopher,

I started a pressure washing business as a side hustle to save money for investment properties.  Last year I decided to sell my PW business and focus on my FT job and real estate investing.  Here is what I learned:

Pressure washing can be lucrative and a great way to make a very high hourly rate.  However, it is difficult to build consistent and dependable income, especially in the beginning. It takes a lot of time, advertising, and reviews to build a PW business.  I recommend also including gutter cleaning if you aren't afraid to be on a ladder; this can also help build a consistent customer base and upsell pressure washing.  Overall, I think PW is an amazing part-time business with high revenue potential.  It allowed me to reach my goals of getting into the RE game and I think it could help you do the same.

Feel free to PM me with any additional questions.

Good luck with your decision!

Shawn Mcenteer · Answer

@Christopher Holt commit to one or another and stay with it until you win, don't expect major results for first 1-2 year (although completely capable of getting major results) Take massive action.  Easiest formula I know for success.

Eliott Elias · Answer

Only one of those will build you long term wealth.

Eric Bilderback · Answer

I would get my license to buy the 4 plex and then go ahead and pressure wash.  If you use a FHA loan your commission would get your down payment back almost.  Maybe try and buy one plex a year if you can do that keep your license and do it yourself.

Lawrence Potts · Answer

@Christopher Holt, I think the better thing is not whether which one is better to start but that you just choose one and go for it. Commit to one and run with it. Truly commit. Being an agent is hard to do on the side. So is pressure washing. And so is any business.

We've identified your goal is to house hack a triplex or 4plex. So which one is going to get you there? Honestly, if you go self-employed, yes, your income is limitless and you can generate a lot in a short amount of time whether you decide PW or as an agent. HOWEVER, you need at least 2 years of solid income verified on tax returns to become qualified to use a FHA mortgage to owner occupy a triplex or 4plex. So if you only make $15,000 your first year as a PW, that doesn't help you get to your REI goals because now you still need another 2 years of qualifying income (most likely more than $15,000).

I think some would argue against side hustling as an agent or some other service industry. It's very hard to do. But I would highly recommend doing something on the side while working in your W2 in property management. Get that W2 income up and get qualified for a owner-occupied mortgage and house hack a SFR or multifamily! Here's my perspective on it from your shoes:

If I were working for a property management company, I would recognize that this is a huge opportunity to grow my network. Your network is one of your defining factors in success as a property manager and in real estate in general. Whether it's contractors you know, property owners, third parties that bring you qualified tenants/property owners, etc., your network is going to be vast. Identify a problem those people are facing and provide a solution!

If property owners are having a hard time finding a deal or don't know what to do with their money and want to try to park it somewhere to beat inflation, find deals and partner with them!

Or if you know contractors are trying to grow their brand, market for them! Do some graphic design for others. Maybe that need is pressure washing to help present vacant properties for lease!

I think your best use of time is where there is the most demand that you can serve. Any business you choose can fail if there's no demand for it. Even if you identify demand, it doesn't always guarantee success. Marketing is key though (outside of doing a good job at what you do). Service industries take a lot of your time, so maybe a product-based business if time is important for you to protect? Or something you can do from home on your computer (lead generation, cleaning prospective lists, graphic designing, creating content, etc.).

I hope that helps answer your questions. I worked full time and had a side hustle doing junk removal and that helped save money on the side but it was very difficult to do. Not that difficulty should be something to avoid. But it was stressful. And that made me a better entrepreneur which helped me become a better real estate investor and real estate agent. Choose your hard, don't avoid hard.

Jacob St. Martin · Answer

Hello Christopher, which one of those ideas are you more excited about? and do you want to do either long term? If you do want to do either of those long term then great, go all in. If you don't then I would identify what it is that you want to do long term, and work backward from that to the steps you need to be taking now. For instance, if you want to get into multifamily real estate investing (which doesn't really have to do with being an agent or pressure washing), then think: how can I get more involved in multifamily real estate and learn while I build capital? Maybe you go work as an agent for a brokerage that specializes in multifamily? Maybe you go work in acquisitions, investor relations, or asset management for a syndicator and ask to be involved in other parts of the deal so that you can learn. Maybe you find a multifamily investor in your area and ask them if there are having any problems in their business and see if you can solve them to get your foot in the door? I think at this point building your knowledge and skills is going to be more valuable then just trying to save to get into your first property. If this is not necessarily your goal that is fine too! I would just apply a similar line of questioning to whatever it is you want to do and go from there!

Jay Thomas · Answer

Pressure washing is a great form of maintenance for Real Estate properties. Not only will it make the exterior look appealing to potential buyers or renters, but it can also help you build your business and reputation as an effective worker and project-builder. Pressure washing allows you to measure how many homes you've serviced, how much external square footage has been cleaned, and even scale up to a team if needed. All these metrics showcase the success of your Real Estate business and demonstrate that you're capable of taking on bigger projects without hesitation. So don't underestimate the power of pressure washing - it could be what makes or breaks future collaborations!

Stephen Dispensa · Answer

Definitely Pressure Washing. You've got an excuse to door knock and gain clients for that business. While you're there you can let them know you're also involved in real estate, and see if they know anyone looking to sell or invest. If you find sellers in particular, team up with an investor or flipper that will cut you in on the deal. Legally you can't take a referral fee for the sale transaction, however they an give you a small ownership in the deal which would allow you to share in the profit.

Once you're in a deal, offer to do everything you can to help the project along. Supervise the rehab, maybe you have some contacts in the maintenance division at the property management company where you work. Maybe you can give those guys some side work redoing kitchens and bathrooms, flooring, painting, etc. to help drive construction costs down.

Best part is, you can invest TIME in your real estate business while making CASH from power washing.

Marcus Auerbach · Answer

@Christopher Holt PW all the way! Your age will work against you as an agent - real estate clients are looking for experience and guidance from an agent, it's hard to portrait that when you are young. It can be done, but you'll feel like you are dragging an a ball and chain behind you.

But here is the part that I think really matters: with a PW business you get to practice how to talk to strangers, how to be disarming and how to handle objections. I could not think of a better way to prepare yourself for a career as an agent, then in a sales job. Robert Kiyosaki (Rich Dad) would agree!

Best Use Of Time: Activate RE License or Start Pressure Washing?

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