All Forum Posts by: Matt Hendrickson

My wife and I have been exploring options for our future. It just dawned on me that I should use bigger pockets as a networking opportunity and seek feedback for what we're hoping to do. 

Just a little about me, I'm 27 and I've been investing in real estate for the past two years personally. I've been interested in real estate for 6+ years, but because of financial resources, college, and other road blocks, I didn't make the jump into real estate investment until 2016 when I purchased my first property. I graduated with a construction management degree and work for a commercial general contractor (past 3 years). I've worked on a variety of projects from small TI's, to airports, prisons, office buildings etc. I like construction, but love real estate. I have a lot of experience in estimating, and project management. I've done construction myself as well (rehabs, concrete, landscaping, framing, etc.), so I know what matters most to investors. A few months ago, I also got my real estate licence and I'm beginning to work on that new revenue stream while working my full-time job. I'm recently married and my wife is a nurse. She's all in on real estate.

I'm slowly trying to put together a strong foundation to make the the jump into leaving my, all too-often monotonous, 8-5 job. My wife and I have made preliminary plans in 8 months (8 months because we will have a sufficient "nest egg" saved up) to make the jump from a W-2 income to 1099. I feel that my experience in construction, my management of my personal properties, and investments have given me experience and confidence that I can make the jump if I work hard. I know I still have a lot to learn, but have learned a lot in these past two years.

Our goal is to start an investment real estate company, property management company, and construction company. I believe that multiple streams of cash flow mitigate risk and increase potential. I'm not oblivious to the fact that this will not happen overnight, but rather take years to build properly. In short that is my vision and I'm going to go after it.

I post this here because I'm curious to know any advice those who have made the jump have. What do you wish you would have known? What road blocks did you face? How did you gradually make that transition from W-2 to 1099? Any other advice?

I also post this because I'd love to team up with someone who is looking for a young, hungry, like-minded real estate investor. I'm willing to work for someone (manage rehabs, assist in property management duties, etc). I've thought that this may make the jump a little less daunting and I may be able to use my experience to help someone who is already established and needs a trustworthy person to help scale the business. I'm originally from Kansas City, MO. My parents currently reside in Lee's Summit, MO. My wife and I have been planning on moving back to KC to start working on the dream as it seems like a natural fit. We've also thought about going to Nashville, Cleveland, Cincinnati, Indianapolis, or Orlando (we're really open to about anywhere that makes sense for what we want to do). We currently reside in Idaho, but have found real estate to be really expensive and tough to cash flow.

Anyways, I really appreciate the help in advance. 

Thanks,

Matt!

@Abigail Hollar Perfect! That's helpful. I think I need to wait a bit.

Thanks!

@Adam Christopher Zaleski Super helpful insight. I like that as a guideline. If I were to follow that guideline, I do feel I would be too leveraged.

Thanks!

Thanks for the input. This is very helpful.

@David Zheng is the 65k/month after subtracting out debt financing?

@Josh E. thanks for the response! Glad to see you're active on the BP community. How many properties do you have now? I am actually looking at teaming up if I were to do the deal. I've got a friend who is interested. I just can't decide if I should slow down and build up bigger cash reserves. I also still live in an apartment with my wife. I know she's going to be antsy to get into a house soon, so I've also thought about moving into a fourplex with her as well, but the returns have been very good so far.

@Eric Adobo my current amount financed for the two properties is roughly $360,000. Gross rents are around $3,600

Bryan,

Thanks for the response. I agree, part of my dilemma is the thought I could be buying at a peak.

Eric:

Property #1 Value: $220,000

Property #2 Value: $215,000

Right now, I've got a combined (with my wife) income of $100,000 +

I'm struggling to know when I'm ready to make my next move and purchase more real estate. I currently own two properties. It has been almost one year (August 1st) since I purchased my first property. I then purchased my second property in a tight cash flow/high appreciation area. My first property has brought me a 34% net return in year one. It has been extremely successful for me. I purchased the second property 7 months ago. Between the two properties I cash flow around $1,000 per month.

I've found another property that I feel confident will bring me a similar return as the first (same city, about 3 blocks away, similar price, similar SF, same Bedroom, more baths), but I'm not sure I should buy 3 properties within 1.1 years as it will make me leveraged to the tune of about $550,000. I have sufficient funds to purchase the property, but struggle with knowing whether or not I'm growing things too fast. Here is a quick snapshot into some of my situation:

• $8,000 emergency fund for my two properties that I'm trying to grow to $15,000-$20,000
• $25,000 in liquid-able assets aside from my emergency fund
• To purchase this property I would need around $13,000

Please let me know your thoughts/experiences. I'm concerned I may be buying at a high point. The property is located in Utah which has seen strong economic growth in the past few years.

Thanks in advance!

I've been a quiet observer on Bigger Pockets for a long while, and I am a huge fan and have learned a ton. I'm 26 and own two investment properties with hopes of acquiring more in the coming years. I'm from Kansas City, live in Provo, Utah for the past 6 years, and am now heading to Idaho. I've been obsessed with Real Estate for about the past 4 years and have consistently debated whether or not I should get my realtors license and sell homes on a part time basis. I know that there are multiple opinions on this subject, and I've read over many of those forms. My question is a little different than simply should I get my real estate license.

I work full-time right now and make pretty good money. I don't feel comfortable leaving my day job to jump into being a full-time realtor. I do, however, want to sell homes on the side. I'm wondering if others do this and are successful selling maybe 5-10 homes a year (which would be my goal). How many homes do you sell on a part time basis? How do you acquire no clients? Is it difficult swinging both jobs? Are brokers ok with having part-time agents? Any other advice or tips?

I think there could be many benefits to getting my license even for my own personal investing. Please let me know what you think!

Thanks in advance,

Matt

I've been a quiet observer on Bigger Pockets for a long while, and I am a huge fan and have learned a ton. I'm 26 and own two investment properties with hopes of acquiring more in the coming years. I've been obsessed with Real Estate for about the past 4 years and have consistently debated whether or not I should get my Realtors license and sell homes on a part time basis. I know that there are multiple opinions on this subject, and I've read over many of those forms. My question is a little different than simply should I get my real estate license.

I work full-time right now and make pretty good money. I don't feel comfortable leaving my day job to jump into being a full-time realtor. I do, however, want to sell homes on the side. I'm wondering if others do this and are successful selling maybe 5-10 homes a year (which would be my goal). How many homes do you sell on a part time basis? How do you acquire no clients? Is it difficult swinging both jobs? Are brokers ok with having part-time agents? Any other advice or tips?

I think there could be many benefits to getting my license even for my own personal investing. Please let me know what you think!

Thanks in advance,

Matt