Just Went All-In On New Venture

[Jeff Mays]

Okay everyone, here we go...I'm sure that given my extensive business experience and background I'll have much more to contribute as we go along, but today is my first conversation with the Bigger Pockets community, so thank you in advance for your indulgence. 

I've had a successful career in automotive retail now for over 28 years, but it hasn't gotten me the freedom and independence, or the wealth (frankly) I should have at this point in life. I cringe as I write this next line, but I just left a position making over $300k/yr to venture into real estate investing (gulp.) After a year's worth of study, leaving is probably the only way to force myself to take this leap of faith seriously. My background provides an extensive head start in terms of business knowledge, so that's a positive. The challenge will be replacing as much of the income as I can as quickly as I can...hence, the reason for my post. I have some capital, and am more comfortable in the transactional space than collecting rent and looking only for a $200/mo or a $500/mo positive cash flow first step, and means I'm not necessarily starting from scratch.

That said, (or maybe not,) what does the community think about securing a first deal? Inside track on flips maybe? Partner up for the first couple deals to get going? Or point me in the right direction to look, at least? I have places in North Jersey and South Florida, which would be primary areas of interest, but I'm also familiar with Ohio where I grew up. 

Everyone's been here, I imagine, so thank you.

Jeff

[Jay Hinrichs]

pretty rare that your going to take 200k and replace 300k a year in income.. are you sure you want to leave that well paying job.. why don't you keep it and start investing.. rentals is not a tough thing its the easiest thing to do in real estate it takes very little acumen to understand the principals  IE buy property rent property.. it does take skill to run them right though.

but to make money like your talking about U have to value add. or be in sales and coming from the car industry you understand that a great salesmen can make bank.  

Married to HML 200k should allow you between 500 and 700 k in borrowing power although when starting out keep in mind your rates are going to be much higher than say someone like me that gets the absolute best rates.. it makes profits a little smaller when U start..

but your looking at value add flipping ..  new construction..  buy land get it up zoned and approved for HBU and flip 

timber tracts that you can instantly log and resell we made millions doing this on OPM .. and it viable in the Carolinas etc.

since its a full time gig you need to look at more robust ways to create income than as you already understand drip income is not going to get your were you need to be in a short amount of time.. rentals is a very LONG game. 

so you need to be looking at crap properties that can be turned around and resold if you can do them in 13 months you get cap gains.. and or rent them for a year or two and you can roll up for a 1031 and keep velocity going that way.. 

but again I would not be so keen on just giving up 300k a year  many of the landlords on this site can get to that 5 to 10k a month and that's all they need to live on.. someone used to larger income that usually wont cut it.. so scale has to be huge to replace 25k a month..