New member from Georgia... Where to go from here?

Question

Hello, my name is Jason Smith. At 30 years old, I will be graduating this spring with a BBA in Real Estate, BBA in Marketing, Sales Certificate, and Advertising Certificate from the University of West Georgia. I'm currently working in commercial real estate as an appraisal analyst and I'm torn with my career options moving forward. When I graduate, I have few different career paths I'm leaning towards but can't decide. (Here is my LinkedIn profile: https://www.linkedin.com/in/jason-smith-05a2b2b5)

1.) Continue to pursue a career appraisals but would need to take 90 hours of state-mandated courses, and have an additional 2,000 hours of documented experience to become state licensed.

2.) Become an agent by taking the exam and paying the necessary fees. I have several offers right now working for agencies in the Atlanta Area.

3.) Attempt to venture into the investment side of real estate. I'm intrigued by the idea of buying and selling properties but have several concerns like I wouldn't have any capital funds. I've thought about wholesaling properties to jump start my own investment firm.

4.) I have a few different offers in marketing, sales, and consulting. Whether I would be creating brand awareness through promotions and advertising or the full sales cycle from prospecting to close.

Other than that I have unrelated experience in IT and I am a founder/manager/coach of a JV Division II college baseball team. I really don't see any obvious path I should choose. I've also considered getting my MBA if I can't meet my goals and expectations working full-time in management, marketing, or real estate. Shoot me any advice.

Zachary C. · Answer

@Jason Smith,I would pick which ever interest you the most from 1, 2, or 4 and then use that to help work 3. You don't have to start off full speed on 3, but grow it and snowball it over time.Good Luck

Brian Cowan · Answer

@Jason Smith I lived in west Georgia during college so I got to know the area well. Now I live in Austin Texas but mainly invest in west Georgia because I can get much better ROI there versus the overpriced Austin market. I currently have properties in Carrollton and Bremen. The key is to have a great property manager (I highly recommend Century 21 Novus in Carrollton). I have had a few that were not so great in the past and they took a good deal and turned it into a total pain in my ass. I look for deals with a projected 20%+ ROI, doing a conservative analysis. I also look for gross monthly rent that is at least 1.5% of the purchase price. These criteria are tough to meet, but it's well worth it to be selective (I learned this the hard way). I invest in B and C neighborhoods. Stay out of the "war zones" because the return will look good on paper but the turnover and damage will kill your ROI. Class A neighborhoods generally won't cashflow as well unless you get a great deal on a rehab. My property manager is great at pointing out the neighborhoods that are full of solid blue collar workers, good rent rates and low crime. I never have more than a week or two vacancy because of their guidance. Hope this helps.

Anthony Dooley · Answer

Jason, It sounds like you have a lot of options. I recommend that you choose one and go 100% full throttle, sold out and dedicated to it. Get 10x Obsessed (Grant Cardone Reference) in on one of those paths in order to generate income. Save that income, continue to learn and look at real estate until you can put 25% down on a commercial deal, like apartments. Working in and around commercial real estate, you will see deals before the general public does. I think more education, like an MBA, is a great way to be middle class and have a J.O.B. (just over broke). If you want to be an investor, you don't need more college, but you do need education about your chosen path. Be the best at it. That will make you money. Invest that money, multiply it, then you won't need a J.O.B anymore. It may take you 5, 10, or more years but that beats working for someone else until you are 65 or 70. Take action, you already have everything else.

Mike Bryant · Answer

Hi Jason, having spent many years in graduate work in a field totally unrelated to my real estate aspirations, I share your interest and concerns about "getting it right" for your career path. At the age of 64, too often I reflect back on years of missed opportunity to propel my career forward....if I discovered and honed my passion early on and moved forward with a laser-beam like "focus". If we can help you find that passion and the needed focus, it would be perhaps through sharing some of our own experiences on how we would "do it better" in our respective areas of endeavor. For example, early on in my real estate investing (mainly buy and hold SFH), I met with the Owner/Landlord/Commercial Appraiser from whom we leased office space. With much admiration that I learned from him some of the intricate details of commercial valuations (i.e., certainly more complex than SFH comps). I often though that one day I would love to own commercial properties as part my portfolio....and now, here I am doing the needed due diligence to make a transition from SFH focus to Multi-family. AND, the one vital part of Due Diligence that is very intimidating and yet perhaps the most critical, is finding a team member (or at least, a go-to-professional) who can quickly and efficiently provide a well-documented, reliable Valuation. In other words, we can miss the Value of a SFH by a few thousand and likely can rebound by attending to other facets of the formula-for-success (e.g. Rent, Property Management expense, cost-effective Upgrades, etc); but if we miss the Value of a 30 or 40 unit Multi-family by several thousands (tens of thousands even), then the consequences can be devastating, requiring years to recover. All the best to you, and should you continue your Appraiser licensing, know that you will be a valued contributor to your own real estate success (and certainly others).

Brian Cowan · Answer

@Jason SmithI agree with Zachery. Leverage the skills you already have while focusing on the snowball method. Work in the RE industry in the market you want to invest in so that you build relationships and credibility. Most of the good deals never hit the MLS, so your network will likely be where you get most of your deals. The west Georgia area is great for cash flow. I started buying properties in the Carrollton and Bremen area a few years ago and have almost replaced my day job income in a very short amount of time. If I was working in the local RE industry I would likely be farther along in building my portfolio due to the connections. Good luck!

Jason Smith · Answer

@Zachary C. Thanks for the advice. I plan on knocking out my student loan debt as soon as possible. So I can see why 1,2, and 4 would be more stable moving forward. @Brian Cowan I've been in the west Georgia area for a while now. I'm interested in the market but I don't want to live here anymore. Were you in the area? How did you approach investing in a market like Carrollton?@Mike Bryant Thanks for the advice. If you could do it all over again, you would rather be on the commercial side of real estate? More profit? @Anthony Dooley That's a good long-term strategy. I'm also hesitant about getting an MBA as I've already invested a great deal of money and time into education. I want to start making money that could benefit me. I feel like I'm always sticking around too long helping other people get rich, while I'm living paycheck-to-paycheck doing all the analysis, sales, and grunt work. I know you have to start somewhere, but I feel like I've been "starting somewhere" for over ten years.Thanks everyone for your advice. I may take on all three facets of the industry but would have to look into the ethics of being an appraiser, broker, and investor. I definitely want to work for myself in the future. I just can't see anyone paying me what I expect to earn in the next 5 years.

Mark Nolan · Answer

@Jason SmithWelcome to Bigger Pockets. You are at the right place to learn about real estate investing.