All Forum Posts by: Josh H.

Quote from @Adam Bartling:

Quote from @David M.:

@Josh H.

I think it really depends on your risk tolerance and confidence in being able to continue to flip.  Maybe don't do as many flips and look for "higher quality" deals.

How are your resources?  Do you need the day job to help qualify for loans?  What about benefits such as medical?

I agree that macro economic market conditions are changing.  If you aren't able to adjust your "side job" to accommodate, then its best to keep your current day job.

 I think this is good advice and I know a very popular lender here ( not me)  who still keeps his day job and has 200 homes, he has some wholesalers bring the deal and has a solid contractor do the work.  You are getting where you do not need to flip and can get in some larger deals with these #s

Hi Adam,

Thank you for the advice. Since flipping is a job (and a hard one at that for a lot of reasons) we would love to transition into other types of revenue generation from real estate.

When you say: 
You are getting where you do not need to flip and can get in some larger deals with these #s.

What do you mean by getting into larger deals? Will you please give me a couple of detailed examples?

Thanks,

Josh

Quote from @Greg R.:

I would strongly recommend you keep your day job. If you think the market of the last two years is normal or sustainable you are in for a big surprise. Try to get out of your 10 flips asap before rates go even higher and values fall more. In any event I recommend you closely observe the market and where we're headed before quitting your 150k job. Just my .02

I totally understand the market over last two years isn't sustainable going forward. What I'm concerned about is prices falling. I could even deal with them staying flat. What I'm concerned about is a fall in housing prices of 5-10%

Quote from @Josh H.:

Quote from @David M.:

@Josh H.

I think it really depends on your risk tolerance and confidence in being able to continue to flip.  Maybe don't do as many flips and look for "higher quality" deals.

How are your resources?  Do you need the day job to help qualify for loans?  What about benefits such as medical?

I agree that macro economic market conditions are changing.  If you aren't able to adjust your "side job" to accommodate, then its best to keep your current day job.

 Hi David,

I don't need the day job to qualify for loans since they are hard money loans. And we found medical insurance through our broker that insured all of our flips. 

We have 1-2 years of money for runway. But I don't want to blow that then have to go back to work. 

I think we can continue to flip

... But am trying to make sure that will still be a viable option in the coming months 

Quote from @David M.:

@Josh H.

I think it really depends on your risk tolerance and confidence in being able to continue to flip.  Maybe don't do as many flips and look for "higher quality" deals.

How are your resources?  Do you need the day job to help qualify for loans?  What about benefits such as medical?

I agree that macro economic market conditions are changing.  If you aren't able to adjust your "side job" to accommodate, then its best to keep your current day job.

 Hi David,

I don't need the day job to qualify for loans since they are hard money loans. And we found medical insurance through our broker that insured all of our flips. 

We have 1-2 years of money for runway. But I don't want to blow that then have to go back to work. 

I think we can continue to flip

Quote from @Account Closed:

Quote from @Josh H.:

I am REALLY confused about what to do. My wife and I have grown our flipping business over the past couple of years to doing 10 flips currently.

I was just getting ready to quit my job that pays $150,000/year to focus on real estate full time, but the rising interest rates has me very concerned, with no end in sight. We just had a .75% rate rise yesterday and will likely see another one by the end of the year (maybe two?). We have enough money to last at least a year. The hope was to quit my job and focus on finishing our 10 flips because it has become too much for my wife to handle. We are in the Northern Virginia and Maryland markets in case that is helpful

I am concerned that if we see a big dip in prices, I will regret it because the 10% profit we typically get ($50K on a $500K flip) will basically mean we are doing flips for free.

I would love for some very seasoned investors to give their opinion on whether I should stay in my job, or focus on our flipping business that is doing well

Thanks,

Josh

 With a W2 of $150,000 you should be cash flowing, not flipping. Meet with a tax professional, ASAP.

 I appreciate that line of thought, but we've made $500k flipping this year vs 150k at the day job. I feel like the day job is limiting my income but at the same time, the market is shifting, which is why I'm not sure what to do. I'm not sure flipping will be sustainable in a cooling market with higher rates. Ugh. 

Hi Kevin,

Like Ryan, I am a flipper as well. We have very done well over the last couple of years and have 11 flips currently in process or reno - and want to start BRRRR'ing for that exact reason - to build long term wealth. The problem is when flipping is your income source, how can we justify making $200/month, when flipping offers a 250x return on capital over the short term? $50,000/$200/month = 250 months to gain that income, just over 10 YEARS, vs immediate. I know the taxes are higher - but when your income is from flipping, deferring the income for the next 10 years is hard to justify.

I feel like I am missing something, please let me know if I am - as I want to build long term wealth.

Thanks,

Josh

I am REALLY confused about what to do. My wife and I have grown our flipping business over the past couple of years to doing 10 flips currently.

I was just getting ready to quit my job that pays $150,000/year to focus on real estate full time, but the rising interest rates has me very concerned, with no end in sight. We just had a .75% rate rise yesterday and will likely see another one by the end of the year (maybe two?). We have enough money to last at least a year. The hope was to quit my job and focus on finishing our 10 flips because it has become too much for my wife to handle. We are in the Northern Virginia and Maryland markets in case that is helpful

I am concerned that if we see a big dip in prices, I will regret it because the 10% profit we typically get ($50K on a $500K flip) will basically mean we are doing flips for free.

I would love for some very seasoned investors to give their opinion on whether I should stay in my job, or focus on our flipping business that is doing well

Thanks,

Josh

Quote from @Eliott Elias:

Happy to share mine, shoot me a DM 

 Thank you! DM'ing you now. 

Hello,

Does anyone have a general document that you can share that you have your contractors sign before starting work, that protects (idemnifies) you from damages they cause to your property or neighbors' property, and has other terms that protect you, such as saying change orders must be in writing, and other things that are beneficial?

We have a few flips going on now and want to make sure to cover our bases. A real estate attorney that I spoke with today wants 3K-5K to create a document like this, so I am seeing if there is a free document that we can get since we are still a growing company. Any document that would protect us would be very helpful.

Thanks,

Josh

I just want to say thank you to everyone that replied. We decided to set up our LLC ourselves, instead of paying a company thousands of dollars to do it. The lady that we spoke to seemed like a scammer and it would be a colossal waste of money to use them. Thanks again for the advice.