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Updated over 5 years ago on . Most recent reply

User Stats

8
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Rick Gustafson
Pro Member
9
Votes |
8
Posts

Am I Crazy Or Is This Normal?

Rick Gustafson
Pro Member
Posted

I'm a noobie.

Here's my story. I posted this yesterday as advice to the question "What age did you start your real estate investment career" … Am I too old?

"Like you, I'll be 59 in a couple of months. I own a house that I've been house hacking for a little over a year. Talk about helping the bottom end. I should have done this a long time ago. A couple of months ago I contacted my realtor and was going to buy a second house the MLS way and house hack it. Luckily before I found that second house, I attended a real estate seminar up in Denver. The typical, come to the free two-hour course, pay for the second three-day course, and then sign up for the mega buck guru program. I figured that was what it was but I actually enjoyed it. As I was researching the very well-known TV guru's program, Bigger Pocket's name kept coming up. So, I checked out Bigger Pockets and I was ... am hooked. I have a friend who flips houses but I never paid much attention to what he was doing. A young guy who just turned 30. I figured he was just messing with fixing up houses. Well now I can't stop talking with him. Come to find out he's flipped 28 or 29 houses and has, I think, 9 rentals all in the last six years. Three weeks ago, I was going to bid on a duplex with excellent cash flow. My anxiety and ... anxiety kept me from pulling the trigger. My friend bid on it and purchased it to give me a second chance to see if the finances would work for me. I let him keep it because I'm really looking for a 6/3 sfh to house hack, and the anxiety. Tomorrow I plan on bidding on a 3/1.5 sfh. I want to convert it to a 4/2 and flip it. The anxiety is still there but the desire is much greater.

I thought the "time for money" was the only way, the way of life. I've given away so many hours to aerospace electronics, as a firefighter, drafter, project manager/estimator. All great and rewarding jobs but always giving someone else my time. I've got the bug. Up every morning by 4:30 to educate myself for a couple hours before work, during work, and after work. I wish I would have started when I was 24, wow.

So no, it's never too late. If you have the desire, it's never too late. I'd say educate yourself but don't try to get everything in order before you invest unless you'll never invest. Also don't wait until your fully educated, that'll never happen. What do they call it, analyses paralysis? And of course, that perfect deal may not come around for years. As long as it has positive cash flow or a profit in the end … go for it."

_________________________________________________________________

So now it's 11:15 p.m. the next day, today. I have to put my bid in tonight. The anxiety has gripped me hard. I've been talking to my friend for hours and hours, going over numbers, strategies, what ifs, and my finances. I have $35,000 cash, about $25,000 in credit cards, and about $15,000 in vehicles I can invest. Everything on paper comes out to $32,500 not including the final sale costs. My friend has advised me to go for it. The numbers look good.

In my mind as long as I keep my current job to pay my current expenses, it's doable.

Here's my dilemma.

The job I currently have is a dead-end job without benefits. I've been there since I moved back to Colorado Springs three years ago. I'm burnt out and should leave it. Stop trading time for money.

If I keep my job, I can pursue another house using my VA benefits which requires a W2 income. If I house hack it, it pays for itself.

My thought is, keep my current job for the next six months. Bid on this house and do a DIY flip while working full time. Do the next house using my VA benefits then leave my job to do the real estate full time. My goal is to do the BRRRR path.

Is this doable. Has anyone did a DIY flip while working a full-time job, especially a job that you're burnt out on. I'm almost 60. I don't want to be burnt out on the job and physically too. Should I just leave my current job, jump into the anxiety pool, and wade to the other side?

What's your thoughts?

  • Rick Gustafson
  • Most Popular Reply

    User Stats

    28,170
    Posts
    19,205
    Votes
    James Wise#5 All Forums Contributor
    • Real Estate Broker
    • Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
    19,205
    Votes |
    28,170
    Posts
    James Wise#5 All Forums Contributor
    • Real Estate Broker
    • Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
    Replied
    Originally posted by @Rick Gustafson:

    I'm a noobie.

    Here's my story. I posted this yesterday as advice to the question "What age did you start your real estate investment career" … Am I too old?

    "Like you, I'll be 59 in a couple of months. I own a house that I've been house hacking for a little over a year. Talk about helping the bottom end. I should have done this a long time ago. A couple of months ago I contacted my realtor and was going to buy a second house the MLS way and house hack it. Luckily before I found that second house, I attended a real estate seminar up in Denver. The typical, come to the free two-hour course, pay for the second three-day course, and then sign up for the mega buck guru program. I figured that was what it was but I actually enjoyed it. As I was researching the very well-known TV guru's program, Bigger Pocket's name kept coming up. So, I checked out Bigger Pockets and I was ... am hooked. I have a friend who flips houses but I never paid much attention to what he was doing. A young guy who just turned 30. I figured he was just messing with fixing up houses. Well now I can't stop talking with him. Come to find out he's flipped 28 or 29 houses and has, I think, 9 rentals all in the last six years. Three weeks ago, I was going to bid on a duplex with excellent cash flow. My anxiety and ... anxiety kept me from pulling the trigger. My friend bid on it and purchased it to give me a second chance to see if the finances would work for me. I let him keep it because I'm really looking for a 6/3 sfh to house hack, and the anxiety. Tomorrow I plan on bidding on a 3/1.5 sfh. I want to convert it to a 4/2 and flip it. The anxiety is still there but the desire is much greater.

    I thought the "time for money" was the only way, the way of life. I've given away so many hours to aerospace electronics, as a firefighter, drafter, project manager/estimator. All great and rewarding jobs but always giving someone else my time. I've got the bug. Up every morning by 4:30 to educate myself for a couple hours before work, during work, and after work. I wish I would have started when I was 24, wow.

    So no, it's never too late. If you have the desire, it's never too late. I'd say educate yourself but don't try to get everything in order before you invest unless you'll never invest. Also don't wait until your fully educated, that'll never happen. What do they call it, analyses paralysis? And of course, that perfect deal may not come around for years. As long as it has positive cash flow or a profit in the end … go for it."

    _________________________________________________________________

    So now it's 11:15 p.m. the next day, today. I have to put my bid in tonight. The anxiety has gripped me hard. I've been talking to my friend for hours and hours, going over numbers, strategies, what ifs, and my finances. I have $35,000 cash, about $25,000 in credit cards, and about $15,000 in vehicles I can invest. Everything on paper comes out to $32,500 not including the final sale costs. My friend has advised me to go for it. The numbers look good.

    In my mind as long as I keep my current job to pay my current expenses, it's doable.

    Here's my dilemma.

    The job I currently have is a dead-end job without benefits. I've been there since I moved back to Colorado Springs three years ago. I'm burnt out and should leave it. Stop trading time for money.

    If I keep my job, I can pursue another house using my VA benefits which requires a W2 income. If I house hack it, it pays for itself.

    My thought is, keep my current job for the next six months. Bid on this house and do a DIY flip while working full time. Do the next house using my VA benefits then leave my job to do the real estate full time. My goal is to do the BRRRR path.

    Is this doable. Has anyone did a DIY flip while working a full-time job, especially a job that you're burnt out on. I'm almost 60. I don't want to be burnt out on the job and physically too. Should I just leave my current job, jump into the anxiety pool, and wade to the other side?

    What's your thoughts?

    Do not quit your job. Do real estate on the side.

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