All Forum Posts by: Felix Boecker

@Felix Boecker I’m on the brink of transitioning and I’ve just reached a stage where I’m extremely cash poor and real estate wealthy. Obviously not as wealthy as I’d like to be, I plan on investing for years to come!

With my last deal my bank told me I'd maxed out my DTI and so now I have to look for alternative financing once I rebuild my coffers.

I think the hardest thing is going to be not relying on the paycheck to cover daily expenses and figuring out health insurance.

As someone that recently made the transition I can tell you this.

1. Lack of stability Going from knowing exactly how much will be deposited in your bank account and when to losing that.

2. Financing (Real estate, Vehicle, anything really) becomes much more difficult without the W2 income. You have to use creative financing for your deals.

1) Having enough in savings and starting to cash flow with the new endeavor. Without an exact monthly income, you have to be smart about how you stretch yourself. Lots of free trails and Chipotle hacking can get you a long way haha

2) I want the freedom of not needing to wake up at a certain time, listen to the conventions of a boss, and follow a routine that isn't my own. I want to ascend in my life and find the most growth. That path can only be taken if you create your own reality and borders.

3) Fear is good, it allows you to live and take the push that you need over the edge. I will say that I'm most anxious about the future of the U.S. economy in terms of 5 to 10 years from now. Who knows what going to happen with the wealth gap? Are interest rates going to keep rising? What about the U.S. Debt ceiling? So many possibilities and so many predictions but the truth still remains hidden.

1. What are the biggest problems/struggles that you have when it comes from the transition between your W2 and entrepreneurship?

- So I just left my W2 job about 3 months ago to move into REI full time. Biggest struggles for me right now are just figuring out what day to day tasks I need to be doing to make the biggest impact on my business. Also, like everyone else, transitioning from a steady pay check to variable income has been hard. It's pretty stressful not knowing when the next paycheck is coming. Doubts are already starting to creep in. 

2. What do you want most out of becoming an entrepreneur?

- Schedule freedom and the ability to increase my income with increased effort. However, mainly freedom with my schedule.

3. What are your biggest fears in transitioning from a W2 to entrepreneur right now?

- Biggest fear right now is just losing some of the financial stability I have. I've been able to build up a pretty nice nest egg for someone my age and could fairly easily grow a rental portfolio at 5ish homes/year while working a W2 job (I've been doing it for the last couple years already). I don't want to go backwards essentially. 

Quote from @Felix Boecker:

Quote from @Timothy Miller:

Pretty early on the journey so far but here's how it is for me.

1) One of the biggest struggles is definitely going from a consistent paycheck to variability in income is difficult. It is significantly harder to budget and plan for the future not knowing where my finances will be.

2) Many of my extended family members actually own their own businesses and have been on a similar journey as well. They have said time and time again it is better to be your own boss and take control of your future rather than someone else determine it for you. 

3) I think one of the biggest fears for me is wasted time. I have long term goals and I don't know how my current situation will impact those goals. I might be learning a lot along the way but will the value of my new skills and knowledge make up for potentially lost time? 

The budgeting piece is definitely more challenging, especially in the beginning when the income stream is inconsistent. What are you concerned about with lost time? Is one of your goals to have more time freedom?

I would say it's twofold. One part of it is with the inconsistency and admittedly less pay early on. My long term goals mainly revolve around real estate and being financially free. I am a more recent college graduate and so building up capital is something that I am striving for right now and as such I feel like starting investing later is, in a way, some lost time. The other part is knowing that over the next few years it will likely be a lot of late nights and weekends to really grow which means sacrificing time with friends, family, etc. 

Pretty early on the journey so far but here's how it is for me.

1) One of the biggest struggles is definitely going from a consistent paycheck to variability in income is difficult. It is significantly harder to budget and plan for the future not knowing where my finances will be.

2) Many of my extended family members actually own their own businesses and have been on a similar journey as well. They have said time and time again it is better to be your own boss and take control of your future rather than someone else determine it for you. 

3) I think one of the biggest fears for me is wasted time. I have long term goals and I don't know how my current situation will impact those goals. I might be learning a lot along the way but will the value of my new skills and knowledge make up for potentially lost time? 

1. Biggest struggle has been balance between the two areas. At some point, something has got to give... Am I a full-time entrepreneur OR am I still dancing between a W2? 

2. I want to be in control of MORE of my income in hopes of creating an antifragile life. I want the quality of my decisions to reflect my income.   

3. My biggest fears are three-fold.

Public embarrassment. Wasting other people's money and time. Never getting it right.   

Quote from @Felix Boecker:

Hello! I am trying to survey people coming from a W2 and going into an entrepreneurial life for a new coaching program I am putting together. Would appreciate any insights you have on the following:

1. What are the biggest problems/struggles that you have when it comes from the transition between your W2 and entrepreneurship?
2. What do you want most out of becoming an entrepreneur?
3. What are your biggest fears in transitioning from a W2 to entrepreneur right now?

Thanks!

 Hi Felix 

(Still on the hunt for my first property, but loving these forums and want to get more involved so here I am!)

1. For me at the moment its more a mental block, what people call "analysis paralysis" I have constrained myself to thinking I have to learn everything possible when it comes to RE. I am trying to work on this as I focus on working towards my first deal. But personally, I am very in deep in trying to educate myself and its a blessing and a curse. 

2. The RE world in general is the most interesting and intriguing thing I have ever came across, and for me what I want most out of this whole journey is... experience, like-minded friends, FI, and a life to strive to develop every step of the way! 

3. Right now, it is taking down my first deal, not only I am unable to give you an EXACT fear (since the whole thing is scary) I really do push myself to be positive and realize that this is a phase and it will become fun, and exactly what I want it to be in time! 

Would love to hear your side as well. 

It's been a while since I did it...going from a cushy bank executive job to loans and real estate investment...but I would love to answer. 

1) I never felt so rich and so poor at the same time. Going from predictable income to feast or famine and pacing/budgeting expenditures regardless of how much was in my bank account was an adjustment. You never know when the next pay day might come. 

2) Freedom. I have a "personality disorder" where I don't like being told what to do. I love to be my own master. 

3) Not having any business coming in. 

Those were the concerns I had when I first started.