Updated almost 10 years ago on . Most recent reply
Change of Status - 6 month challenge
So in the vein of previous posts like The 90 day challenge and 1 year challenge I am faced with a 6 month challenge. The story goes as follows.
I have/had a w2 JOB. It's ok, I'm well paid and it provides for my family and is flexible to allow for time to deal with RE stuff too. Well Friday I got notified that they are changing my status from salary to hourly and I am to only work when I have billable work (I work in the consulting field). The last 6 months I haven't had much work and so it's not a total surprise but it still stings. I'm the last of a group that has slowly shrank to lonesome me via attrition over the past 2 years. We/I don't/didn't do the kind of work that is the core of the companies business so they won't miss us. Really it's just a gentle way of letting me go and in a way that they aren't on the hook for unemployment. This is not the first time it's happened to me. About 10 years ago I had the same thing happen. I was re-employed in 2.5 weeks so while it cost financially it was pretty much more of the same. This time there are more options. I'll use this post to chronicle the process as I'm sure there are others who will or who have faced the same dilemma.
Trying to keep the post shorter, I won't go into too many details. We have about 4-5 months of available reserves if I make no more money. We would then have to sell one of our properties with lots of equity that is just treading water which would allow us to carry on for another year or so, again assuming zero other income. I don't want to go backwards (spend cash) or sell property but will do what is needed.
I'm considering the following options.
1) Find another w2 job.
2) Offer consulting services in the same field as my w2 job. This requires a bit of self marketing. Things appear to be health job wise here in my field. I know a number of others who have been successful at this. I am all set up to do this from a legal standpoint. Logistically very straightforward.
3) Launch my services as an RE agent for sales. I am a licensed RE agent in my state. I have sold a number of properties over the years. I am set up for this from a legal standpoint as well.
4) Expand my services as a property manager. I currently manage properties for a number of people in addition to my own. I'm all set up for this legally as well.
5) Pursue fixing and flipping. I have done this with success a number of times. You do make your money when you buy and I bought well in all but one case, there I broke even.
6) Pursue wholesaling on a full time basis. I have begun a direct mail campaign and have had good response to my very low volume effort but have not done a deal yet.
7) Become a licensed contractor and do handyman work. I have been project manager on my fixups and my fix and flips so this is not a huge step but I have a long way to go setting up the legal aspect.
8) I could sell off a number of properties and pay off the debt on others and create enough cash flow to squeak by.
9) Some combination of all of the above.
Right now we are just in a holding pattern until we can get some feedback and council from others and see what perspective they offer. I hope to have direction by the end of the week. I am ramping up my direct mail campaign. I have a unique source of leads that seems very good and I am trying to figure out how to expand my list on a daily basis.
Tasks this week:
1) Meet with advisors.
2) Get an assistant to help expand my list for direct mail.
3) Make a decision about direction.
4) Keep perspective and balance by being there emotionally with my wife and family. I know I can do whatever I want but my tendency in the past is to put my head down and GO. Leaves those around me in the dust. This is a journey we are in together so need to keep perspective. I'm really scared too.
To chronicle this journey, I'm going to post at least once a week here with an update. Perhaps more if it seems necessary.
Hopefully we'll see a success story unfold.
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