Your advise for 3 strategies?

[Sergey Shevtsov]

Hi guys!

I’ve read this forum a little bit before. It’s a great resource! Very useful with so many professionals in real estate investing. I appreciate opportunity to introduce myself and have conversation with such an interesting and professional folks.

I’m 47 years old and living more than 5 years in Los Angeles. Originally I’m from Russia and have more than 25 years experience as an entrepreneur. In Russia I had a small business with souvenirs. Now I’m looking for software engineer job. My wife working more than 3 years as an accountant at the big property management company. They own and manage more than 5000 units. We’ve learned so many things how they manage their buildings.

We’re looking for real estate investment and I have 3 different ways how to start my career in real estate investment from scratch.

Which one would you choose if you'll be in my shoes? Could you please give your advise!

1. Start working as a property manager 1-2 years $30-50K annual income => move to supervisor 1-2 years $40-60K annual income => move to asset manager 3-4 years $60-90K annual income => after 3 years working as an asset manager you'll have $100K in savings for your first down payment => final goal is minimum 300 units portfolio. It could be done in 3-4 years.

Pros: You’ll have 3-4 years experience and skills on property management and 3-4 years experience on real estate investment for starting your own portfolio.

Cons: You’ll waste 7-8 years of your life just for getting $100K for your first down payment. You’ll get your final goal 300 units portfolio after 12 years.

2. Start working as a property manager 1-2 years $30-50K annual income => 1-2 years continue working as a property manager and start your own small property management company with 30-50 units in management $60-70K annual income => quite your property manager job and increase units under your own company up to 200-300 units in management 2-3 years, $100-150K annual income => after 3-4 years successful business of your own company you'll have $100K in savings for your first down payment => final goal is minimum 300 units portfolio. It could be done in 3-4 years.

Pros: You’ll have 2-3 years experience and skills on property management and 3-4 years experience as an owner of your small property management company for starting grow up your own portfolio. If your own property management company would be successful it’s a huge advantage for starting your own portfolio. You could continue increase quantity of units under your own property management company (raise your business) as well as you’ll raise your portfolio and manage units from your portfolio also under your own property management company. You’ll have double income: from your business – active income, and from your portfolio – passive income, etc.

Cons: Your own business is much more risky than just working as an employee. How and where would you find 300 small landlords? How long does it takes to find them? Huge competition, etc. You’ll waste 5-6 years of your life just for getting $100K for your first down payment. You’ll get your final goal 300 units portfolio after 10 years.

3. Start working as a software engineer and some times reading Bigger Pockets on free time 3-4 years $100-120K annual income => after 3-4 years working as a software engineer you'll have $200K in savings $100K for your first down payment + $100K money for mentors => 2-3 years continue working as a software engineer and start grow up your portfolio with mentors help => final goal is minimum 300 units portfolio. It could be done in 3-4 years.

Pros: Fastest way to get your $100K for your first down payment, just 3 years. Fastest way to get your final goal 300 units portfolio, just 6-7 years.

Cons: When you would start your portfolio you wouldn’t have any experience in real estate investing. Just help from mentors for money. It’s so risky starting your own portfolio without real experience! Probably you could lose some money while you would raise your portfolio.

I’m thinking about 2nd choice because I have 25 years experience as an entrepreneur and we have opportunity to learn how to manage buildings from big company. But I’m still not sure.

I apologize for this long topic but any suggestions and advises would be great for me!

Good luck to all!