Where to take the journey?

Question

Hi Guys, new here to the bigger pockets forum, I have been in construction for 11 years and real estate the past 3 years. I’ll try to keep this as short as possible but I am at a cross road in life here and can’t seem to find the guidance I need.

I’m 30 years old, 10 month old son, juggling taking care of the family, property of 21 acres, an old farm house, work, and real estate. The last year I renovated a single family home to rent, pulled out some equity, couldn’t have gone better. I’m closing on my second deal, a duplex that’s going to take about 9-12 months to comeplete (I’m doing the work with some sub contractors but mostly myself) at this point after that is done, I will be out of money, even before it’s finished I’ll have to raise some capital to finish it, but it should cash flow conservatively $600 a month. I already have a hand shake deal on the next property, another duplex, that I will buy come summer time.  I have about 100k in assets both personal and business I could sell, but part of me thinks that’s extreme and I’ll sell “myself” along the way with all my stuff.  I’m considering going back to work either for myself again or joking the carpenters union. But if I do that my time would be so limited to when I could work on my real estate. I can either go back to work or find a way to keep working in real estate for myself, full time.  I feel that no matter what I do, I’ll regret not doing the other. Anyone had a similar situation?

Andrew Syrios · Answer

Could you "split the difference" so to speak and go back to work for yourself but limit the number of clients you take on so you only need to work 20 or so hours a week? I'm not sure if that would bring in enough money but it would certainly make things easier financially speaking while you built up your real estate portfolio.

Simon Walker · Answer

Hi Jaycee, I did barrow from a local bank, this is my third property with them. They are as close to a handshake deal as possible. I essentially present to them my numbers of what I can redo the property for, and they loan me 80% of the ARV basically no questions asked except for an appraisal. Interest only for 1 year than P&I kicks In.

I am definitely juggling a lot, laying the foundation to eventual financial freedom is fighting tooth and nail for every inch. It’s mentally tasking, which is my biggest battle now. My goal is 25 doors in 5 years, my struggle right now is deciding to either go back to work and save up money to continue or come up with a way to leverage financing to stay afloat myself and stick with it, waking up everyday 100% dedicated to my real estate.

Andrew Syrios · Answer

I can see that. My dad used to manage other people's properties but eventually quit because the money wasn't worth it and he always ended up prioritizing their properties so as not to get any hassle from them.

Another way to approach this might be to go all in on one project yourself and see how far that money gets you. If things start getting tight, you can always switch to doing work for clients too in order to raise funds.

Jaycee Greene · Answer

I have a client in Kansas City, MO that had to make the EXACT same decision a couple of years ago. Are you OK if I send you a DM/Connection Request as a follow up to this?

Jaycee Greene · Answer

Hey @Simon Walker, welcome to the BP Forum! Sounds like you are juggling a lot of balls in the air! Have you borrowed any money for the duplex or do you have an investor?

Where to take the journey?

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