Completely new to REI, Quitting career, looking for advice.

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Completely new to REI, Quitting career, looking for advice.

Josh Pulley
Member since 2022 · 39 posts · 23 votes

So here’s the story, I am currently a Firefighter/ Paramedic in Las Vegas Nv. I have been in EMS for 12 years, and am completely burnt out with the first responder career in general, ( mandatory 96 hour shifts, massive call volume, constant exposure to human tragedy, lack of sleep). My wife and I have decided to move to the Raleigh NC area seeking to slow life down a bit, we will be selling our house in Las Vegas with approximately 200k in equity. I am looking for options to stop trading hours for dollars, I also understand that 200k + roughly 100k of savings isn’t a ton to work with. I am very interested in doing some fix and flips or BRSTR’s to get the ball rolling. Any help or guidance would be greatly appreciated. Thank you all for your time. 

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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
4y

Sorry to say this but I recommend you get a job. 

Having a W2 will make it easier to qualify for loans that are critical to getting going.  If you have a W2, then $300K can go much farther than you might imagine.  Don't have a W2 and you have much fewer options.

PS Thank you for your service.

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  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    4y

    Sorry to say this but I recommend you get a job. 

    Having a W2 will make it easier to qualify for loans that are critical to getting going.  If you have a W2, then $300K can go much farther than you might imagine.  Don't have a W2 and you have much fewer options.

    PS Thank you for your service.

    18Reply
  • Tyler Solomon
    Lender · Austin, TX · Member since 2022 · 223 posts · 244 votes
    4y

    Josh, to contradict what Greg just said - W2 is not needed to still receive great leverage. Non QM lenders do not verify W2/1099 and still provide great leverage, even for first time investors. Shoot me a message if this is of interest - I know the Raleigh area quite well. 

    6Reply
  • Eunice Villarroel
    Member since 2019 · 63 posts · 63 votes
    4y

    Hello Josh, to start off with thank you so much for your service. I can’t imagine being in your shoes for those 12 years. 

    First thing I would like to do is set the record straight, real estate is not easy especially when you're starting off. But it is definitely worth it. If I were in the position you're in the first thing I would do is see what kind of programs are available for me to purchase an FHA home. In Florida we have programs for first responders where the state contribute to $20,000 towards home purchase. Of course I cannot speak on behalf of North Carolina since every state is different but maybe there is hope, might be worth looking into.

    The first home I would buy would be a multi family that way I can live on one side of the house and rent out the other which would lower my mortgage payments or cover them completely. If you do not want to buy a multi family home you can always purchase a home that may have a basement/attic, mother-in-law suite or any additional dwelling unit that you could use to rent out.

    you want to aim to get conventional AND FHA loans when you're beginning because they are the ones with the lowest interest rates and Low down payments. The only caveat to the loans is that you have to live in the property for at least a year and you need to have proof of income if you could just hold onto a job for 2-4 more months till you lock in a good property it would be worth it. Flips can be very tricky and risky and difficult specially nowadays where contractors are in high demand and are very difficult to find. What I would recommend is that you begin networking with flippers if that's the route that you wanting to go. You can meet them at your local real estate investor groups. The easiest way would be on Facebook groups. Get connected with people that are already doing house flips, ask them if there is anything you can help them with and the only thing you ask in return is for them to allow you to tagalong and acquired knowledge. Of course if you're going to be partnering with them you wanna talk about the percentage of profit split. Please make sure that they are experience at what they do and you're not just partnering with just anybody.


    another important piece of advice when you’re buying an investment property whether it be to rent long-term or whether it be to flip the interest rate is going to be a lot higher and the down payment requirements will be very high. You will be looking at the very least a 20%-25% down payment. Therefore before you invest in any investment property do the numbers very carefully and make sure that you know what you’re doing. Work with a good real estate agent that knows the market and will give you good advice after listening to your goals. You’d be surprised at the level of incompetent real estate agents that there are here in Florida i’m sure N.C is no different.

    Best wishes on your journey. Real estate is not for the faint of heart but if you stick to it You will never regret it. Sending many blessings your way

    15Reply
  • Eunice Villarroel
    Member since 2019 · 63 posts · 63 votes
    4y
    Quote from @Tyler Solomon:

    Josh, to contradict what Greg just said - W2 is not needed to still receive great leverage. Non QM lenders do not verify W2/1099 and still provide great leverage, even for first time investors. Shoot me a message if this is of interest - I know the Raleigh area quite well. 

    This is 100% true too. These loans do have higher down payment requirements and interest rates though, if I’m not mistaken. Also. Do these loans qualify for owner occupied properties? Genuine curiosity 
    0Reply
  • Tyler Solomon
    Lender · Austin, TX · Member since 2022 · 223 posts · 244 votes
    4y

    You are correct, these loans do typically have a higher down payment requirements (Lower LTV threshold) and slightly higher interest rates than conventional loans, however they offer self employed individuals valuable access to financing solutions. There are Non-QM loans that qualify for owner occupied as well, however I as a lender only focus on investment residential. But owner occupied non-qm does exist!

    0Reply
  • Nick Robinson
    Rental Property Investor · Murrieta, CA · Member since 2020 · 338 posts · 343 votes
    4y

    @Josh Pulley
    I would recommend continuing to work you job and invest to see if this is something you want to do and you get the returns your expecting. I understand that you are burnt out at your current job, but it may not be the time to make big changes when we are just getting started with this recession. Without going into too long of a post this will not be a mild recession and that "strong" labor market is actually very fragile. With the government trying to pass another stimulus, $700B+ that is just going to make the effects of inflation worse. Cash will be king and there will be deals amongst different asset classes. You need to study and learn as much as you can and wait for those opportunities to present itself. 

    Also, the government is filled with intellectual morons. Why would I look at the unemployment rate to determine if I am in a recession when unemployment is a lagging indicator? Don't believe your lying eyes. Good luck with whatever you decide to do. Be careful out there.

    7Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    4y

    @Josh Pulley

    You should get adequate knowledge of real estate and strategies you are planning to apply.

    Also explore various financing and partnering options.

    You can start by joining local real estate clubs, attending meetups and connecting with local agents and investors.

    Do a thorough local market research and analysis.

    A local Investor-Agent can help shorten your learning curve and save you a lot of headaches as they tend to understand the market better.

    All the best!

    [email protected]832-776-9582Podcast Guest on Show #469
    NETWORTH BUILDERS5236 Reviews
    WebsiteView Page
    2Reply
  • Josh Pulley
    OP
    Member since 2022 · 39 posts · 23 votes
    4y
    Quote from @Eunice Villarroel:

    Hello Josh, to start off with thank you so much for your service. I can’t imagine being in your shoes for those 12 years. 

    First thing I would like to do is set the record straight, real estate is not easy especially when you're starting off. But it is definitely worth it. If I were in the position you're in the first thing I would do is see what kind of programs are available for me to purchase an FHA home. In Florida we have programs for first responders where the state contribute to $20,000 towards home purchase. Of course I cannot speak on behalf of North Carolina since every state is different but maybe there is hope, might be worth looking into.

    The first home I would buy would be a multi family that way I can live on one side of the house and rent out the other which would lower my mortgage payments or cover them completely. If you do not want to buy a multi family home you can always purchase a home that may have a basement/attic, mother-in-law suite or any additional dwelling unit that you could use to rent out.

    you want to aim to get conventional AND FHA loans when you're beginning because they are the ones with the lowest interest rates and Low down payments. The only caveat to the loans is that you have to live in the property for at least a year and you need to have proof of income if you could just hold onto a job for 2-4 more months till you lock in a good property it would be worth it. Flips can be very tricky and risky and difficult specially nowadays where contractors are in high demand and are very difficult to find. What I would recommend is that you begin networking with flippers if that's the route that you wanting to go. You can meet them at your local real estate investor groups. The easiest way would be on Facebook groups. Get connected with people that are already doing house flips, ask them if there is anything you can help them with and the only thing you ask in return is for them to allow you to tagalong and acquired knowledge. Of course if you're going to be partnering with them you wanna talk about the percentage of profit split. Please make sure that they are experience at what they do and you're not just partnering with just anybody.


    another important piece of advice when you’re buying an investment property whether it be to rent long-term or whether it be to flip the interest rate is going to be a lot higher and the down payment requirements will be very high. You will be looking at the very least a 20%-25% down payment. Therefore before you invest in any investment property do the numbers very carefully and make sure that you know what you’re doing. Work with a good real estate agent that knows the market and will give you good advice after listening to your goals. You’d be surprised at the level of incompetent real estate agents that there are here in Florida i’m sure N.C is no different.

    Best wishes on your journey. Real estate is not for the faint of heart but if you stick to it You will never regret it. Sending many blessings your way


    Thank you for your thoughtful insight, i will definitely be looking into finding experienced flippers or STR owners in that area and trying to network and gather as much knowledge as i can. To further expand on my story, my wife is graduating nursing school with her BSN, and has an opportunity to do very well working remotely and attend a few music festivals a year. I am also not opposed to continuing to work in the short term to bridge the gap of starting life in a new place. I just don't want to get back into the routine and let the career sink its teeth back in. I wouldn't be opposed to doing multi family, duplex or something of that nature. I'm quite handy and could do some cosmetic repairs while having a tenant in the other unit.

    As far as the first responder deals go, I don’t believe there is anything like that in NC, my mother in law happens to be a real estate agent / soon to be broker, and hasn’t mentioned anything like that to us, she is definitely looking out for our best interest as she would do anything to get her grandson to live close to her. I can do my own research in this area just to be sure.

    Thanks again for all your time and insight.

    0Reply
  • Josh Pulley
    OP
    Member since 2022 · 39 posts · 23 votes
    4y
    Quote from @Greg Scott:

    Sorry to say this but I recommend you get a job. 

    Having a W2 will make it easier to qualify for loans that are critical to getting going.  If you have a W2, then $300K can go much farther than you might imagine.  Don't have a W2 and you have much fewer options.

    PS Thank you for your service.

    I realize this now, the original post seems vague, but i am absolutely going to be working when I get to NC. I just don’t want it to be my main source of income. I would really like to focus more on REI and work because i want to not because i have to. 
    Thank you Sir.
    2Reply
  • Josh Pulley
    OP
    Member since 2022 · 39 posts · 23 votes
    4y
    Quote from @Tyler Solomon:

    Josh, to contradict what Greg just said - W2 is not needed to still receive great leverage. Non QM lenders do not verify W2/1099 and still provide great leverage, even for first time investors. Shoot me a message if this is of interest - I know the Raleigh area quite well. 


     Absolutely, thanks for the help, message incoming.

    0Reply
  • Josh Pulley
    OP
    Member since 2022 · 39 posts · 23 votes
    4y
    Quote from @Wale Lawal:

    @Josh Pulley

    You should get adequate knowledge of real estate and strategies you are planning to apply.

    Also explore various financing and partnering options.

    You can start by joining local real estate clubs, attending meetups and connecting with local agents and investors.

    Do a thorough local market research and analysis.

    A local Investor-Agent can help shorten your learning curve and save you a lot of headaches as they tend to understand the market better.

    All the best!


     Thank you for the tip, 

    I will definitely reach out and start networking when i get there. 

    Thank you Sir.

    1Reply
  • Josh Pulley
    OP
    Member since 2022 · 39 posts · 23 votes
    4y
    Quote from @Tyler Solomon:

    You are correct, these loans do typically have a higher down payment requirements (Lower LTV threshold) and slightly higher interest rates than conventional loans, however they offer self employed individuals valuable access to financing solutions. There are Non-QM loans that qualify for owner occupied as well, however I as a lender only focus on investment residential. But owner occupied non-qm does exist!


     Newb question, 

    What’s QM. 

    (Face palm)

    0Reply
  • Chris Mitton
    Real Estate Broker · Member since 2020 · 13 posts · 4 votes
    4y

    Invest in yourself!

    0Reply
  • Josh Pulley
    OP
    Member since 2022 · 39 posts · 23 votes
    4y
    Quote from @Nick Robinson:

    @Josh Pulley
    I would recommend continuing to work you job and invest to see if this is something you want to do and you get the returns your expecting. I understand that you are burnt out at your current job, but it may not be the time to make big changes when we are just getting started with this recession. Without going into too long of a post this will not be a mild recession and that "strong" labor market is actually very fragile. With the government trying to pass another stimulus, $700B+ that is just going to make the effects of inflation worse. Cash will be king and there will be deals amongst different asset classes. You need to study and learn as much as you can and wait for those opportunities to present itself. 

    Also, the government is filled with intellectual morons. Why would I look at the unemployment rate to determine if I am in a recession when unemployment is a lagging indicator? Don't believe your lying eyes. Good luck with whatever you decide to do. Be careful out there.


    I will most likely continue to work in the same field of Fire/EMS when moving to NC to make a smoother transition but i am not interested in doing this long term. And my wife will be working now as a nurse essentially doubling our household income. My initial strategy before knowing anything about REI was to sell here in Las Vegas, move to NC and rent, waiting out the market. Sitting on 200k while working. Kinda like chicken little waiting for the sky to fall.

    However, every professional I listen to has these quotes “time in the market is better than timing the market.” And “scared money don’t make money.”  So I’m trying to take this opportunity of having 200k and turn it into the best profitable outcome i can. As i am a kid from the streets. I didn’t have a pot to piss in or a window to throw it out of. 

    I truly appreciate your advice and will be looking into all options. 

    Thanks Sir

    0Reply
  • Josh Pulley
    OP
    Member since 2022 · 39 posts · 23 votes
    4y
    Quote from @Chris Mitton:

    Invest in yourself!


     Could you expand on this? 

    This may sound dumb but i am trying to gain as much info about REI as humanly possible to let the different avenues call to me. Is there something different i should be doing?

    0Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    4y

    @Josh Pulley my first piece of advice is to not quit your day job. I understand that you're burnt out but unless you have a lot of money behind you to sustain you and your family, things will only be worse if you quit. What will end up happening is that you'll use up all of your equity on living expenses and have nothing left for your investments. Wait until you get your feet on the ground with your real estate venture and have a sustainable income.

    3Reply
  • Josh Pulley
    OP
    Member since 2022 · 39 posts · 23 votes
    4y
    Quote from @Mike D'Arrigo:

    @Josh Pulley my first piece of advice is to not quit your day job. I understand that you're burnt out but unless you have a lot of money behind you to sustain you and your family, things will only be worse if you quit. What will end up happening is that you'll use up all of your equity on living expenses and have nothing left for your investments. Wait until you get your feet on the ground with your real estate venture and have a sustainable income.


    I will be leaving my career here in LV walking away from retirement, 457b, benefits. However, i have been the primary provider of my household due to my wife being a full time nursing student, she graduations august 26th. She currently has multiple job offers and will be doing very well. When we get to NC, I will most likely continue in my same career field. The point of this post to to make this a very short term thing and focus mostly on REI and create financial freedom.

    Hopefully this expands on my story and give the ability for more focused advice.

    Thank you Mike for your time and response

    0Reply
  • Matt M.
    Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
    4y

    Wait til you see what health insurance will cost you.. better off having a W2 for Loan and insurance purposes 

    0Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    4y

    Maybe get a job in 911 dispatch in the town your going to.

    It might make borrowing easier.

    Just pick a low crime town like Mayberry.

    0Reply
  • Josh Pulley
    OP
    Member since 2022 · 39 posts · 23 votes
    4y
    Quote from @Matt M.:

    Wait til you see what health insurance will cost you.. better off having a W2 for Loan and insurance purposes 


     Wife is going to be nursing so insurance wont be an issue, and we have several years of healthcare costs on an HRA card stashed away. Appreciate the advice though.

    2Reply
  • Brian RothertPro Member
    Rental Property Investor · Raleigh, NC · Member since 2016 · 10 posts · 5 votes
    4y

    welcome to Raleigh. great area. i just bought first investment property a month ago and learning a lot. the area has some great meetups for newbies. 

    0Reply
  • Stephen DeThample
    Real Estate Agent · Las Vegas, NV · Member since 2020 · 459 posts · 305 votes
    4y
    Quote from @Josh Pulley:

    So here’s the story, I am currently a Firefighter/ Paramedic in Las Vegas Nv. I have been in EMS for 12 years, and am completely burnt out with the first responder career in general, ( mandatory 96 hour shifts, massive call volume, constant exposure to human tragedy, lack of sleep). My wife and I have decided to move to the Raleigh NC area seeking to slow life down a bit, we will be selling our house in Las Vegas with approximately 200k in equity. I am looking for options to stop trading hours for dollars, I also understand that 200k + roughly 100k of savings isn’t a ton to work with. I am very interested in doing some fix and flips or BRSTR’s to get the ball rolling. Any help or guidance would be greatly appreciated. Thank you all for your time. 

    Thank You for taking care of us here in Las Vegas for 12 years, I appreciate it.  I would consider a multi-family in NC or if you are interested in flipping, you could do a live-in flip.  It is a great way to start out and get the experience, while also providing you a place to live.  It is awesome your mother-in-law is a realtor there.  Consider looking into a "vacation home" loan if you want to qualify for a loan there.  It will be 10% down and give you a way to get a loan before you leave.  Most lenders want 2 years of income from the new job before giving you a loan.  You can then use your current income before you move. Just make sure not to quit until the loan closes.  If you have any questions, please let me know.


    0Reply
  • Steve Fierros
    Investor · Honolulu, HI · Member since 2008 · 20 posts · 8 votes
    4y
    Quote from @Josh Pulley:
    Quote from @Chris Mitton:

    Invest in yourself!


     Could you expand on this? 

    This may sound dumb but i am trying to gain as much info about REI as humanly possible to let the different avenues call to me. Is there something different i should be doing?


    There's so many great resources out there now for investors. Surround yourself with people and community that are doing what you want to do. Go to REI meetups there in Vegas, connect with Ryan Pineda while you're still there, he has a national network. If you're really serious, I'd get rid of your TV and focus on your RE education. When you move, buy a small multifamily property(Duplex, TriPlex, Quad), and house hack it. If you can, I would absolutely look to short term rent those units. You'll not only likely live for free but supercharge the money you have to invest through the excess cashflow. Start your own meetup when you get to Raleigh. I would also target/build you own REI community for people like you and your wife(First responders/healthcare) and build on that.

    You can do it! I'm excited for all of us to build in this recession! 

    1Reply
  • Josh Pulley
    OP
    Member since 2022 · 39 posts · 23 votes
    4y
    Quote from @Steve Fierros:
    Quote from @Josh Pulley:
    Quote from @Chris Mitton:

    Invest in yourself!


     Could you expand on this? 

    This may sound dumb but i am trying to gain as much info about REI as humanly possible to let the different avenues call to me. Is there something different i should be doing?


    There's so many great resources out there now for investors. Surround yourself with people and community that are doing what you want to do. Go to REI meetups there in Vegas, connect with Ryan Pineda while you're still there, he has a national network. If you're really serious, I'd get rid of your TV and focus on your RE education. When you move, buy a small multifamily property(Duplex, TriPlex, Quad), and house hack it. If you can, I would absolutely look to short term rent those units. You'll not only likely live for free but supercharge the money you have to invest through the excess cashflow. Start your own meetup when you get to Raleigh. I would also target/build you own REI community for people like you and your wife(First responders/healthcare) and build on that.

    You can do it! I'm excited for all of us to build in this recession! 


     Thanks for the pro tip, been looking into Pineda, I’ll check into what classes I can join prior to leaving. 

    My life consists of bigger pockets podcasts or Robuilt videos on youtube.

    What do you think about short terming my current house rather than selling, i would obviously be forgoing the capital needed to get the ball rolling out in Raleigh. But just looking at options.

    0Reply
  • Josh Pulley
    OP
    Member since 2022 · 39 posts · 23 votes
    4y
    Quote from @Brian Rothert:

    welcome to Raleigh. great area. i just bought first investment property a month ago and learning a lot. the area has some great meetups for newbies. 


     Brian, looking forward to meeting you in person when i get out there. My timeline should put me out there around the end of Sept.

    1Reply
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