Young Motivated Newbie in N. Denver area seeking Mentor advice

[Zachary Blanchette]

Evening BP community. I am a 28 year old who has climbed up the corporate ladder the past nine years to be in a high salary management position available in the next few months. The dilemma I face is that I look at the clock all day and wake up dreading work every morning.

Real estate and investing has attracted me since I saw my mother loose her 100+ year old house in Massachusetts to a bank foreclosure. Investors came in, bought the property for pennies on the dollar, and flipped it for hundreds of thousands. ($25,000 purchase to $200,000 sale price) Although at the time I despised the crew that bought my childhood home, it showed me many valuable lessons and paved a path to where I am today. 

I got into the off road industry because of my passion for it. That fire has since dwindled due to poor managerial decisions and typical corporate b/s. I take blame for not acknowledging what had become a comfortable place to go make money at a desk, and not a place for me to fuel my inner creativity and build relationships for a solid future for my family. Although I could stay and ride it out, financial freedom and creating my own path is the mountain I wish to climb.

Long story longer, and where I seek advice...

Currently, we own and reside in a single family home purchased before the boom here in CO, so equity is of the abundance. My thoughts for getting started are...

1.) Sell the house we live in to reap the abundance of equity we have gained and purchase another home smaller and further away from city. Find an investor and use our equity to purchase a house to flip. Do this with the investor until we can branch out and purchase homes/properties without the assistance of a second party.

2.) Find investor and take out equity loan on current home to purchase a home to flip. Build a business and reputation to branch out.

3.) Rent out current house, find a home that is livable but needs TLC. Build it up while still working W2 job full or part time. Finish building house 8-12 months and then sell. Ideally, after a few builds, reside off site, allowing for multiple investments.

4.) Professional advice.

5.) Walk dogs for a living.

Leaving thoughts...... Our current house (first time) was a short sale, as is. We loved the gain in sweat equity. 18+ hour days are expected. Can do attitudes, nail guns, hammers, Sawzalls, and Coors Light are ready to go in the garage. Potential for DIY is there. 

Appreciate all your time and any thoughts on the situation(s).

Cheers,

Zachary Blanchette

[Matt M.]

Don't quit your day job. Seriously. You're going to need that W-2

Do you have any cash reserves? You could look at a HELOC on your primary home to use to invest. Unless you are in the RE game or have family in it, flipping is dangerous business.

If you have the reserves, then I'd look at picking up rentals. I know it's boring, but it works, especially over the long haul. Use that to replace your income. 

Keep your home, turn it into a rental, and move into a new home that needs work, fix it up a bit to rent or flip. Then repeat until you can live comfortably.