Did I make a mistake?

Question

Hey BP fam,

I’m just curious if I made a mistake of sort here.

I recently left a job that I was at for a few years (wasn’t a good place to be for work/life, etc etc), and since have decided I wanted to be a realtor and still invest in properties. Yes, I understand being a realtor is hard and not quick money and yes, I know that I don’t need to be a realtor in order to do investments. I genuinely want to do both.

now, with the desire to be an investor and realtor, if I remember correctly, I have to have a stable income for 2 years with a 1099 to get a loan.

Outside of creative financing, there’s nothing I can really do at this point, is there? Just save for the next couple years and jump in then? Also, if that IS where I’m at, what would YOU do with your money in the interim? Just let it sit or try to put it in say, a REIT or something until I’m ready to buy?

thank you in advance!

Jonathan Greene · Answer

Focus on becoming a good agent because if that is going to be your primary source of income to invest later, you have a long way to go to get there and the two years will likely not be enough depending on your investment market. Learn to be investor-friendly and work with investors while learning along the way, but don't rush the investment as you will need a steady source of capital coming in either way.

Dominick Galinis · Answer

By syndications I’m assuming you mean putting my Money towards it? Or do you mean raising money myself? I’m definitely open to either and would love any insight you might have into getting into them

Cameron Braig · Answer

@Dominick Galinis

If you have trouble getting around the 2 year timeline a potential opportunity in the meantime could be syndications.

Being an investor can provide insights and information that can help as you build out your own portfolio. It may not be a fit for your financial goals, but if so it could be a way to gain some experience and insight as you work through a two year timeline. Best of luck and congrats on getting started.

Rodney Lorenzo · Answer

Hi Dominick,

Many were impacted by the pandemic such as myself and the only issue I had was with small MF properties, where banks frowned upon my UI status. In other words, they want you to be an investor, but still have a 9-5 job just in case all of your tenants leave and you need to pay the mortgage (as if that's a common occurrence). This is why I went commercial, because lenders there focus more on the revenue the property generates.

Wish you success!

Rodney

Jason G. · Answer

If I was in your shoes and had time to kill but money sitting there I would invest it in index funds so it grew until I was ready to pull it out to invest in real estate.

Rick Albert · Answer

Hey Dominick,

Although I don't know anyone who has done it, there are bank statement loans.  That might bypass the 2 year rule assuming you are doing well as a Realtor.

Good luck!

Rick