Moving back to New Jersey with no job

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Moving back to New Jersey with no job

Jonathan Blandino
Atlanta, GA · Member since 2014 · 39 posts · 5 votes

Hey guys! I have been on Bigger Pockets for some time but my job kept bouncing me around city to city but I've finally been let go and have about 4 months of savings before I'm in the red. I have all the time and want to start my own way in that time. I'm willing to work to the bone but I get apprehensive because I will read about a good idea here and then a following article on why its not for newbies or why most wont succeed. I enjoy being informed of pitfalls but they also create a mental block. 

I just want to get some suggestions on really where a newbie should begin. I have my time, elbow grease, and willingness to do whats necessary (in the now) but minimal capital because I'm leveraging it to cover my expenses while I attempt a new venture.

I know alot of people cant put 100% because they have a job but I'm free of that so if anyone knows of any articles I can read to get something off the ground before I'm tapped out I would appreciate it. I know its vague because there are so many aspects but I don't want this time to go to waste to try and begin something new.

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Matthew Vitlin
Real Estate Agent · Austin, TX · Member since 2015 · 110 posts · 29 votes
10y

It sounds like you might have an issue with analysis paralysis.  You hear about a great idea, get all fired up and dive into to the research, then run across people who have done poorly or had negative experiences and get gun-shy.

There are lots of people who have made a killing in real estate, and there are a lot of people who have been killed by real estate.  But one good thing I like about real estate is that barring a market collapse or significant "correction", you can't be completely wiped out.  You might buy a house for $100k thinking you can get $300k for it, and after cost-overruns on your rehab, some permitting delays and a sellers market, you only wind up selling it for $200k and no profits or some loss.  At the end of the day you still own a lot and/or house and it will still have value.  You might lose money on a deal, or your flip can go sideways on you, or rents might not be what you expected, but as long as you do your research and due diligence you won't be wiped out.

And in the name of everything holy, be careful about using leverage when you are new.  It makes getting into a deal much easier, but also makes it easier to lose your shirt if things go sideways.

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  • Matthew Vitlin
    Real Estate Agent · Austin, TX · Member since 2015 · 110 posts · 29 votes
    10y

    It sounds like you might have an issue with analysis paralysis.  You hear about a great idea, get all fired up and dive into to the research, then run across people who have done poorly or had negative experiences and get gun-shy.

    There are lots of people who have made a killing in real estate, and there are a lot of people who have been killed by real estate.  But one good thing I like about real estate is that barring a market collapse or significant "correction", you can't be completely wiped out.  You might buy a house for $100k thinking you can get $300k for it, and after cost-overruns on your rehab, some permitting delays and a sellers market, you only wind up selling it for $200k and no profits or some loss.  At the end of the day you still own a lot and/or house and it will still have value.  You might lose money on a deal, or your flip can go sideways on you, or rents might not be what you expected, but as long as you do your research and due diligence you won't be wiped out.

    And in the name of everything holy, be careful about using leverage when you are new.  It makes getting into a deal much easier, but also makes it easier to lose your shirt if things go sideways.

    2Reply
  • Jonathan Blandino
    OP
    Atlanta, GA · Member since 2014 · 39 posts · 5 votes
    10y

    Thank you for your post @Matthew Vitlin Totally true. I was reading into wholesale real estate recently and got me back into Biggerpockets but them digging deeper it looked like the next great depression based on some articles I've read. Unfortunately, I hate depending on others and fear that if I fail someone will need to help me back up and I become gun shy. I think its time to move forward and put a plan into action. 

    0Reply
  • Rafael Norat
    Investor · Lodi, NJ · Member since 2013 · 487 posts · 179 votes
    10y
    Jonathan Blandino You have 100% of a valuable asset that most people don't have which is time! Put the fear aside and surround yourself with likeminded people who grind just like you do. You can find them at plenty of real estate meetups in NJ. Northeast? Flippers and funders is a good one. Go to BP's NY meetup. Use your time and make it happen. What ifs will only limit you. Get to it and reach out if you need any help!
    1Reply
  • Jonathan Blandino
    OP
    Atlanta, GA · Member since 2014 · 39 posts · 5 votes
    10y

    Thanks alot @Rafael Norat I use to live in Lodi too! Great idea, think would make things more focused meeting others. Yes, I am from Clifton but will be moving back to Bloomfield with a friend. Once Im back will take advantage to get into the groups and events in the area.

    0Reply
  • Paul Timmins
    Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    10y

    @Jonathan Blandino

    Consider getting an entry level property management job the good companies will train you.

    Paul

    1Reply
  • Dashon Jones
    Residential Real Estate Agent · Paterson, NJ · Member since 2013 · 78 posts · 42 votes
    10y

    Welcome back. You can definitely start as a whole seller which will require more foot work but it will be less money out of pocket up front until you build up your capital to do those investments yourself. I will be interested in buying those deals if they are good and I know a lot of other people that will too. God luck. 

    1Reply
  • Jonathan Blandino
    OP
    Atlanta, GA · Member since 2014 · 39 posts · 5 votes
    10y

    @Dashon Jones Hey glad to see you here. Yeah I've been reading into it here. Once I get situated back with read into it as much as I can and hit the ground running!

    0Reply
  • Ben Rutkevitz
    Lender · New York City, NY · Member since 2015 · 104 posts · 26 votes
    10y

    Hi @Jonathan Blandino, getting an entry level job in a real estate management/investment company can be a great way to increase your learning curve. Wholesaling works if done well and i would suggest working with a mentor in this field. There are several wholesalers who will train you for free as long as you work under them for a period of time. 

    You can also consider getting a FHA loan on a SFR or MFR. This will allow you to own a property with very little down (as low as 3.5%). You, or your co-borrower, will need to show steady income to qualify for this.

    The last option is you could partner with an investor, who doesn't have much free time to find a property and manage its rehab. Thats how i did my first flip. 

    0Reply
  • Jonathan Blandino
    OP
    Atlanta, GA · Member since 2014 · 39 posts · 5 votes
    10y

    Hey @Ben Rutkevitz Thank you. Thats alot of great info. I was deff considering the one below as I have heard it done before. Yeah the FHA Ive had issues before due to my type of profession, but has gotten better. Like mentioned before I will begin attending groups and networking to build a better understanding of the markets I'm in.

    0Reply
  • Mikel Garcia
    Roseland, NJ · Member since 2016 · 39 posts · 4 votes
    10y
    I'm in the Same situation, good luck!!!! To you and to me
    1Reply
  • Matthew McAlarney
    Real Estate Agent · New Port Richey, FL · Member since 2015 · 52 posts · 15 votes
    10y

    The best advice i can give you is learning from your mistakes. You can read as many blogs and articles you want , but the best teacher is experience. It's very asy to get analysis paralysis In the real estate business. There are so many aspects of the business, and new ideas everyday. Sometimes you have to just go for it, and learn as you go. I am fairly new to real estate but would be happy to share my experiences. Pm me If there is anything you want to discuss.

    1Reply
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