Thank you all for your responses. So I've been thinking of a few options… they get pretty general towards the end because its kind of hard to look that far ahead but they all have a general direction which leads to commercial real estate. I've come to the conclusion that you don't feed an elephant a little bit of peanuts. You feed it A LOT of peanuts. I want to go big and I don't see that happening with residential RE. All of the RE billionaires I've been reading about have CRE.
I did notice several comments about some strategies involving work. I fully intend to work. I do not intend on passive income at least initially. Even when I begin purchasing CRE to hold, I would still want to be running my investment company. So a combination of both as some of you have stated.
I listed some options below, I’d love to have some of your feedback, which seems better, or what would you change if your goal was to build massive wealth in the fastest way possible.
Option A
- 1.Flip SFRs. Re-invest all profits and attract investors in order to scale (meanwhile keeping my W2 job for as long as possible.)
- 2.During this time study up on apartment re-positioning.
- 3.Take the profits and investor capital from the SFR flips and pivot to apartment re-positioning (where we stabilize to force appreciation and re-sell basically apartment flipping)
- 4.Continue to study up on CRE and put my investor's money and my money where we can get the best short term return. This could be in other CRE areas such as development, office etc.
- 5.Begin holding properties that we develop/re-position and sell when conditions warrant doing so.
Pros
-Action. I already feel comfortable flipping and my partner and I just accepted an offer this morning on the flip I did a private money loan on. This will get me my money back and I can start taking action asap.
-I would get experience with having people invest (leveraging OPM) in my business and build a track record.
Cons
-I wouldn't be getting into CRE right away and my network would be in residential. I'd have to pretty much start that all over again.
Option B
- 1.Go back to school for a graduate degree in Real Estate. (Keep w2 job)
- 2.Complete some flips (would be less than option 1 because of the time school would take up) If its too much I would just partner to fund other people’s flips.
- 3.Once I graduate, partner with people from CRE network to work on either development or apartment re-positioning. (by then I would have more money to invest and a lot more knowledge)
- 4.Begin holding properties that we develop/re-position and sell when conditions warrant doing so.
Pros
-I would get into learning/networking for CRE right away.
-I would still make some money with flipping.
Cons
-I wouldn’t make as much money initially as option 1.
-I’d have to pay for another degree.
Option 3
- 1.Work for a syndication or development firm. (leave w2 job)
- 2.Learn while on the job.
- 3.Complete and scale flips.
- 4.Take the profits and investor capital from the SFR flips and pivot to apartment re-positioning (where we stabilize to force appreciation and re-sell basically apartment flipping)
- 5.Continue to study up on CRE and put my investor's money and my money where we can get the best short term return. This could be in other CRE areas such as development, office etc.
- 6.Begin holding properties that we develop/re-position and sell when conditions warrant doing so.
- Pros
- -I would get into CRE right away.
- -I would still be able to flip.
- Cons
- -Not sure yet but this may be monetary pay cut for me initially vs. my current w2 job.
