All Forum Posts by: Ivan A.

When you are talking to her, are you mainly asking questions instead of statements?

I like the idea around getting her peers involved, but if you don't have access to that. Using questions to ninja her brain into the realization that she is leading herself into financial ruin is your only shot.

Here are some examples of that:

#1 Do you understand a foreclosure or unpaid lien can negatively effect your credit for 7 years?

#2 [If you meet with her in person] Ask her about her interests...Do you know you can potentially use X profit off of the sale to pursue Y interest more aggressively?

#3 Do you know that creditors can choose to go after paying your unpaid debt through your children if you pass away? (this is probably too rough, but some people only understand rough)

Thank you all for your opinions and votes of confidence. Alrighty, I'll start preparing for the exciting shift over the coming weeks :-)

I've been struggling with this question for a couple weeks now, and I'd really love your un-biased opinions on this life decision.

First of all, the facts: To comfort you, I do have almost 10 years experience and have done 2 successful flips & own $1M, but now to discomfort you: in order to go full-time in this exciting world, I would have to use a cash out refinance which so far appears I am approved for and is only weeks away from going through. It would roughly cover 1.5 years of my current yearly pay.

Now, the hard facts:

#1 I would be using debt to survive, and lose a massive loan qualification if I become self-employed versus employed going forward...Not a huge deal because I have a lot of private capital contacts and when there is a deal, there is always money to be found. A local investor I know converted to full-time on just 20k out of his 401k and now he's extremely successful

#2 I would have to hustle like never before--a pro cause I love this work, and my job is starting to get in the way of my maximum hustle. Most networking events with the big players happen in the daytime here and doing something as simple as delivering materials can offset a day or 2 of contractor work because I'm at the office

#3 I love my tech job, but I'm not used to being comfortable for so long, its unnerving

#4 I could try to change jobs to something that is more interesting, and could improve my negotiation/facilitation skills, but it would likely still not be my passion as much as real estate and training others...Plus it has more overtime potential (moving from programmer to business systems analyst would be my next career thought)

#5 Realistically, I could only probably start out with 2 small deals with these funds and still have breathing room, and it would obviously be a gamble. Worst case I guess I can go back to my job in likely in a couple months, the tech industry has a <1% unemployment rate here in Atlanta

#6 I would only be able to go after flips at the outset...Holds would basically keep me in a perpetual loop of debt at the outset I feel

#7 I would have to be a lot more frugal as opposed to my current spending lifestyle--I've already started to try to become minimalistic, so I got a little head start here

#8 I have a property that is highly valued in Downtown Atlanta, and I can make it cashflow twice the mortgage to give me a survival cushion, but that would probably wipe out 20-30% out of the funds. Therefore limiting my growth options in flips.

I guess another option is do at least 1-2 deals with these funds and stay at my job a couple more months. But I would personally prefer to jump right in because I feel every day that passes, I'm losing more time fully dedicated to my passions in improving neighborhoods/building wealth/public speaking/etc.

What do you think? Are there any factors I'm not considering with this pretty scary jump? It sounds pretty exciting to me but based on failing in a business before, I know I have to be prepared.

Ivan

Going to any group networking event of real estate pros in your area would yield interest because +10% is starting to get really rare for holds. If you can't find an investor would deep pockets or good financing, then you'll just have to structure the deal under multiple partners. I would advise decreasing your profit margin if you don't have financial skin in the game so it provides more appeal towards the partner's bottom line too.

Happy New Year's! Congrats on your decision to buy a home to get rolling on a fantastic investment vehicle.

I'm going to address one part of your post...Off market listings. Here in Atlanta I've heard you can go down to your local court house and figure out what houses are about to be foreclosed or are in probate proceedings (family death or divorce). I imagine the process might be similar across most cities but it never hurts to try. You still got to hustle to get those sorts of leads to return your calls/mailings/violent threats/etc. Hah, maybe not that last one. But that's my quick tip. Good luck to ya Sam!