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Gave my notice - Leaving security for happiness
A lot of people might disagree with my decision, or question it. But I am leaving a family business that I have been a part of for the last 6.5 years. I finally gave a months notice last week. This has been debated in my head for a very long time.
Am I financially free? Definitely not. Has Real estate given me the opportunity to pursue what I love? Yes.
Over the past 3 years I have invested part time in Real Estate (a full time side hustle basically). I will own 3 rentals next month, and will be selling my first house to have a good chunk of reserves for when I leave this job. I have also started my own construction business, and have been doing side jobs over the past year. People tend to like my work, so I have jobs lined up all next month going into December. I also have a subcontractor position working part time for a reputable contractor in the area.
I have a lot of security at my current job. A steady paycheck making 75k a year, Health insurance, company vehicle, and a company cell phone. But I am also tied to a leash, and working a job I don't like. I am constantly waiting to lock up the shop so I can get home to work on Real Estate. I am currently working 11 hour days, driving 50 minutes to and from work every day. Over the past 6.5 years I have seen my mental health deteriorate and my eyes have become tired. Im 32 years old, but I feel 55 here.
When im working on real estate I feel alive, and intelligent. I get to be creative and call the shots. I get to watch my vision come to fruition. For me, that is well worth the pay cut and leaving. I will have 60 more hours a week to pursue and find success in what I enjoy. I can spend more time with my family, and watch my son grow.
Will it be a tough year, two years, three years? I believe there will be a lot of challenging and pressing times. But I know that it will be worth it in the end. Real estate has really given me the opportunity to make this decision. Im not financially free by any means, but the progress Ive made so far will give me more opportunity. If I never invested in real estate as a side hustle, I would never be able to take this risk.
I am grateful for Biggerpockets, and the community here. Especially all the help ive received over the years. Especially @Steve Vaughan & @JD Martin. Heres to many more years of challenges, and happiness! Exciting but scary times, and I am hopeful it will turn out to be the best decision I ever made.
Hi Brian,
Congratulations! You are doing the right thing. I had a couple W-2 jobs in my life and always found 1099/self employed to be a much better life. The stress of being self employed is a different kind of stress which I find much easier to manage. The benefits gained by the ability to make all of your own decisions is almost incalculable in terms of return you get mentally, emotionally, and financially.
I had suffered from some of the stress/health problems you spoke of and leaving the stressful environment has dramatically helped me.
I wish you all the success your new life has to offer.
#1 Medium-Term Rentals Contributor
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#1 Medium-Term Rentals Contributor
- Investor
- Cottonwood, CA
@Brian Ellis it sounds like a great move. Every real estate investor says they wish they started earlier so there's no time like the present. Even though it seems you're leaving "security", the fact is you are very likely opening your possibilities up to a degree of security no W2 job could offer you. I left a 20 year career in local government in 2007 - yep, right before the real estate bubble burst and the economy tanked. I didn't go into real estate at the time, but I did start my own consulting firm which resulted in far more flexibility, gave me the ability to work from home so I could be here every day when my boys got home from school and ultimately led me to my current job with an amazing company, far better income and the ability to put money aside to invest. I would have had none of those things if I hadn't made the move right at the start of the last economic crash. I am grateful every day that I did it. You're making a smart move because you already know you're moving towards something that inspires you. You have your contractor's license and side work set up as subs - both SUPER handy for real estate investing. We all know lining up a good contractor is one of the biggest challenges most investors face! Continue to network with other REIs in your area and you'll probably have your plate as full as you want it. Congratulations to you - I look forward to hearing updates!
Congrats @Brian Ellis...the first year is always tough as you figure it out.
But by the second year, you'll be cruising along :).
I quit my old corporate job in 2016...now make 7x what I used to make at a job haha.
It takes a moment to get your footing as you realize you don't have someone breathing down your neck. Then, it's all discipline and focus and drive from there.
Sounds like you got it!
I want to say congrats! I'm jealous and totally understand the desire to leave and that sense that you are tied to a leash. I've been a full time police officer and I'm tied to the state and any movement to another state will add more time that I have to serve as well as cut the pay that I do have so I totally understand. I've been at it for 15yrs and still have 10yrs left, but I definitely don't want to have to go back to work somewhere else I won't like. Its not that I don't love my job, its that between politics and culture the job is almost impossible now. In either case, I'll be throwing on the uniform and going back in again. Wish you the best of luck!!!
Originally posted by @Joe Splitrock:
People think a W2 job is security, but it is really an illusion of security. Countless people have showed up at work one day thinking everything was fine and were out of work by the end of the day.
When you are self employed you have full control and clarity on situation. Be it good or bad, it is what you make of it.
You will do great. Based on what you said, it sounds like absolutely the best decision. I would tell you if I thought otherwise.
Yes, my wife always gave me crap. Because I would always say "I have flexibility at this job though", and she would laugh and say "What flexibility? You are required to more than the average employee".
Thanks for your kind words, Joe.
Originally posted by @Brian Glasspoole:
Hi Brian,
Congratulations! You are doing the right thing. I had a couple W-2 jobs in my life and always found 1099/self employed to be a much better life. The stress of being self employed is a different kind of stress which I find much easier to manage. The benefits gained by the ability to make all of your own decisions is almost incalculable in terms of return you get mentally, emotionally, and financially.
I had suffered from some of the stress/health problems you spoke of and leaving the stressful environment has dramatically helped me.
I wish you all the success your new life has to offer.
I appreciate that a lot. And wish you the best as well. It is nice to hear some positive successful similar experiences that I can fall back on if I need the motivation.
Originally posted by @Jonathan Rivera:
I want to say congrats! I'm jealous and totally understand the desire to leave and that sense that you are tied to a leash. I've been a full time police officer and I'm tied to the state and any movement to another state will add more time that I have to serve as well as cut the pay that I do have so I totally understand. I've been at it for 15yrs and still have 10yrs left, but I definitely don't want to have to go back to work somewhere else I won't like. Its not that I don't love my job, its that between politics and culture the job is almost impossible now. In either case, I'll be throwing on the uniform and going back in again. Wish you the best of luck!!!
Thank you for your service!
For me personally, there was always a reason for staying. I was afraid of letting people down, afraid that I was giving up security, afraid that I wouldn't have the flexibility, etc. But those were all false realities.
I am probably in the best position now to take the leap, so I realized if I didn't do it now, I would never do it. Im also willing to take large risks, ive been like that my entire life. But, keep in mind that it took me 3 years to do this. And 3 years of planning to make sure I would be in a decent position to succeed. Im not saying I will without a doubt, but I have some options to fall back on.
I hope you are able to find it within yourself to be happy, we only have one life to live. And that is ultimately the path I am seeking.
@Brian Ellis
That’s great stuff man, really excited for you, sounds like you have a good start and imagine what you will be able to accomplish with that extra 60 hours! Best of luck and keep us updated:)
Forrest Faulconer
Brian,
Go for it I'm in the same boat but have over 30 years here but I am the same when I'm doing my rentals I'm like in a zone but when I'm at work all I think about is Real Estate.
Good luck!
Live your dreams now.... Someone talked me out of quitting my job in 06...I regret it....I purchased 1 million dollars in real estate and because I was more focused on my "regular" job, I didnt have a plan for what happened to me in 08...Go for it and good luck!!!!
FYI---My 401K is nowhere near $1 million dollars.....LOL
Brian,
First of all... GO FOR IT!
You have energy, age and ambition on your side, and some nest egg to get you going, however, three rentals is a bit on the skinny side, unless they REALLY cash flow.
First thing you need to do is to supply yourself with enough to pay the daily bills. Your housing, food, car, etc. If you're married or a good GF, perhaps she could support you til the cash flow comes in. Assume you have no consumer debt, and you shouldn't.
You may have to do some flipping and rehabbing to get the cash up a bit, and gradually end up with keepers.
You can also buy two houses a year, sell one to live off of and repeat the next year for cash. And you can capitalize on your subcontractor deal. Get a guy to do the work and take park of the pie for lining this up for him (only if it's profitable). Lots of ways to get the job done. But you might have to forego the new boat for a few years.....
And, your W2 income is just WAY too low, so nothing lost.
Keep us posted.
@Brian Ellis Congratulations! Can’t wait till I’m put in a position like this. I know it will a rewarding in the end.
Originally posted by @Steve Smith:
Brian,
First of all... GO FOR IT!
You have energy, age and ambition on your side, and some nest egg to get you going, however, three rentals is a bit on the skinny side, unless they REALLY cash flow.
First thing you need to do is to supply yourself with enough to pay the daily bills. Your housing, food, car, etc. If you're married or a good GF, perhaps she could support you til the cash flow comes in. Assume you have no consumer debt, and you shouldn't.
You may have to do some flipping and rehabbing to get the cash up a bit, and gradually end up with keepers.
You can also buy two houses a year, sell one to live off of and repeat the next year for cash. And you can capitalize on your subcontractor deal. Get a guy to do the work and take park of the pie for lining this up for him (only if it's profitable). Lots of ways to get the job done. But you might have to forego the new boat for a few years.....
And, your W2 income is just WAY too low, so nothing lost.
Keep us posted.
Thanks for the kind words! Yes my W2 wasn't a lot of money. Tough business too.
My market is really expensive, so my rentals cash flow about $450 per door. And right now I have 4 doors, so its nothing crazy but it helps. The equity within the properties is where most of my money is. It will just be tough to continue to invest, and I think im at a crossroads anyway. The bank was giving me a really hard time getting a 80k loan for a one bedroom that cash flows $450 (section 8).
My wife is very supportive and interested in the same career as me. She helps me organize and keep my head on straight, but she doesn't have the option to bring home the bacon. She mostly takes care of our son, and works part time to help with bills.
Its not going to be an easy road, and im not relying on the rentals to support my life or family. There is that worry that I wont be able to invest in the near future, but I am willing to compromise that to be happier until I can again.
@Brian Ellis your my hero man! I'm in the same boat and going after this real estate opportunity! Call it a mid life crisis or whatever you want, I don't want to look back and say what if! Whish you the best and I hope to follow in your foot steps soon!
Originally posted by @Mark Vazquez:
@Brian Ellis your my hero man! I'm in the same boat and going after this real estate opportunity! Call it a mid life crisis or whatever you want, I don't want to look back and say what if! Whish you the best and I hope to follow in your foot steps soon!
You will my man! Just keep at it, I think you’ll know when the time is right. The time wasn’t right for me for over 3 years. Finally the time seems right.
@Brian Ellis
Now this was empowering!! Congratulations 🎉 Praying that God will open all the right doors and connections for you. I look forward to hearing more of your future success and who knows a great self- help book 📖 might come out of you to help others in the same struggle.
🥂 Cheers to you🦾😎
"Will it be a tough year, two years, three years?"
Yes. Do you reserves or a back-up in case nothing happens in 2-3 years?
I own rentals and was an electronics eng/rep.
Got into real estate and thought being a genius was enough - Then 2009-2010 happened.
Found out I'm not THAT smart.
Congratulations! I sold my company (job), learned home inspections, rehabbed a flip, and then jumped back into earning wages. I own one rental and several cash-flowing notes. My only hesitation for quitting my W2 and jumping into real estate investing full time is that it seems like banks like W2 income better for lending money.
Congrats Brian! You will do great there is no question on that. Cant teach hustle, hard work, and the desire to succeed which you have.
@Brian Ellis congrats! And good luck!
@Brian Ellis DUDE - CONGRATULATIONS!!!
you will look back on this many years from now as the day/time you chose freedom over fear. This is awesome. Go full speed and never looks back. I will be right there with you eventually
@Brian Ellis Congratulations. This is indeed a bold move and requires a level of stoicism and courage. We are the same age and I remember taking the leap of faith in 2015 like it was yesterday. Something worth considering....everyone has an opinion, but the only one that matters is your own. You got this.
Originally posted by @Jay Hinrichs:
Welcome to the world of the self employed .. right now the construction trades to me is a never out of a job situation given the shortage of good reliable contractors and sub trades..
Being self employed brings on a whole new set of risks emotions worries and when it goes good feeling of success.
My self I have been self employed my entire life basically.. starting with Fuller Brush at 14 real estate sales at 18 so I know nothing else.. And when things are not going good in our industry I many times think back to being raised in Cupertino and watching Tech explode that I should have gone that route.. Gone into sales for one of the big tech companies.. But cant look back.
Real Estate cycles in many markets so just make sure you have multiple income streams..
Jay,
Fuller Brush?? Gosh your old. LOL. I remember them so I guess I'm old too darnit. Like you, I started selling Amway at 14 or 15 and got my Insurance license at 18. Spent 8 years in Corporate America in my late 20's and early 30's making the other guy rich without even a thank you.
Self employed for the other 40 + years, the last 25 in the car business and last 12 in the real estate game as well. Love them both and think the young man who started this thread is right on target.
It's not a job if you love it. Money follows because you are committed to what you love.
If your ever out my way in SE Ohio let me know. I'd love to buy you lunch. Seems we may be 2 peas in a pod in our business life.
happiness over everything, great choice. keep pushing, you will get there.
@Brian Ellis good for you. Im just learning about real estate investing and am surrounding myself with folks who i can learn from. Im getting ready to get my first property and your story here inspires me to get started! Good luck.