Introduction and Seeking Advice

[Logan Williams]

Good evening BP!

My name is Logan and although I have browsed the site for the past several months, this will be my first post. I'd like to quickly cover two topics, all input is GREATLY appreciated.

Introduction

• Graduated in 2013 from Cal Poly San Luis Obispo (in California) with a degree in construction management and a minor in real estate development. 
• Prior to college I knew I wanted to do something involving real estate investing and figured the former combination would be a good foundation. 
• Since August of 2013 I have worked for a very active nationwide multifamily developer in project management. We are building a 284 unit mixed use complex in downtown Los Angeles.
• The experience has been fantastic but I am looking to end the 6:30 to 6:30 work grind in favor of some freedom.
• Please feel free to connect on here and on Linkedin!

My Predicament

• I live in markets with pretty high barriers to entry (grew up in SF bay area and now living in LA) and have found it hard to land that first deal.
• I'd like to learn from experienced investors but also need an income.
• From what I've read, a common complaint among fix and flip / fix and hold investors is the difficulty in dealing with contractors.
• With my background I believe I can provide value to investors looking for someone to manage their projects.

Advice I'm Seeking

• I am toying with the idea of quitting my day job to start a business that provides project management services tailored to investors. 
• I believe that, like anything, with the right marketing and connections I can make a go of it. My fees would be very low because, at 23 and with few responsibilities, I can live cheaply. As I gained momentum and experience this would change.
• I do have a decent amount of capital saved up and once I get a hang of things I would look to partner in deals.
• At the same time I would be learning the ropes while still utilizing my background.
• To some of the experienced rehabbers here - do you think there is enough of a market for this? The main areas I would be looking to work are Reno, NV and the San Francisco bay area.

Thanks guys!

Logan

[Robert Leonard]

@Logan Williams I think you have an excellent background to set yourself up to do well in this business.  BUT, I have to recommend against quitting your job out of anxiety to go out on your own.  Yes, you'll read about those incredible stories of the maverick investor who threw caution to the wind and dove in and made a fortune, but those cases are the real rare occurrences in life.  You may be capable of that, it's just a risk that you don't have to take.

This is just from what I've read, not personal experience, but project management demands about a 10% of project cost premium and that sounds like it would not offer a lot of freedom to me.  It will take a lot of projects to pay even a low cost standard of living.

I think it is a very market specific question when you ask if there is enough market to do what you propose.  The answer is going to be very different for different markets. 

I think you are onto your best thinking when you seek to partner with investors to offer your skill set.  That's something I think you should pursue as a primary strategy to get a more substantial portion of the profits and work toward the day you are ready to quit your main bread and butter job.