All Forum Posts by: Stephanie Cortez

Quote from @Dave Meyer:

@Stephanie Cortez Without knowing your financial situation, it's hard to give advice here. What is your current income? How do you intend to make money once you quit your W2? 

In short, my advice would be to think very hard about why you're quitting your job, and then create very detailed budget and financial plan. How much money do you have saved? What are you going to invest? How much do you have to live off? What is your new business? How much money will it make?  You need to answer these basic questions first before you start thinking about taxes, corporate structure, or anything else. 

Do you suggest using the cashout refi as a means to leave, give myself a few months to make the money back that I use and invest the rest?  Worst case scenario,  I can get back into the workforce after a couple months.

I realize I didn't share what my situation will be. Firstly, I have 5 doors, 3 units total. I am using a property I own free and clear to pull a cashout refi. I will receive about 110k after costs and paying off some debt with the loan. I had planned to use some of this as reserve. The rest of the money I want to invest in a flip and/or buy and hold. Some other streams of incom I am considering is to get my real estate license. My mom is working on building a daycare business and I may work with her on that as well. I have lots of ideas but nothing set in stone. I know that while I work at my W-2 I am unable to think clearly on my plans and the path I want to take. I wonder if by putting my back against the wall, can I make more money using this cashout than working 9 to 5 everyday.

I am considering the possibility of leaving my W-2 job by Dec. I am in the beginning stages of planning what this will look like and if it is possible. Fears that come up for me are 1. Medical insurance 2. Taxes 3. Security 4. Emergency life situations. I am curious to know more about other folks journey into entrepreneurship. 

What factors did you consider before leaving and how much did you have in reserves, if any? 

What suggestions/feedback would you offer someone who is considering leaving their W-2? 

Also, medical insurance, how does that work as an entrepreneur? Is it astronomically expensive? 

Is there a best way to align your business LLC vs S-corp that makes the most sense for tax purposes?

I want to build my network and find better deals in Philly and surrounding areas. I haven't used OPM but I am looking forward to getting some good deals to started. I have built up some equity and am eager to start building my portfolio of rentals and maybe some flips. I am open to off market listings and any nearby networking events! Any advice/tips/ resources greatly appreciated. 

Hey all! I am still learning and trying to figure out the best way to finance buy and holds and eventually flips. I love bigger pockets and how much I have been able to learn from others. Something that I see a lot is using hard money lenders and OPM to finance projects. However, I have a property that I own free and clear with an appraised value of 160k. I would like to do a cash out refinance and complete the brrrr method and hopefully repeat the process. My question: what are the benefits of using a cash out refinance vs hard money? Can you use hard money or OPM without any of your own money down? Anyone willing to teach me the process and or let me watch them work a project?!  I would be open to property management/ administrative tasks in exchange of learning the ropes. 

Quote from @Ray Hage:

Quote from @Allan C.:

@Stephanie Cortez have you thought about how you'd react to the stress of bad contractors, vacancies, unresponsive PMs, evictions, and bad tenants? I'm not suggesting to stop pursing REI, but make sure you are realistic about what color the grass is on the other side. There are a few trending posts from investors a few years ahead of you coming to that realization now.

REI is a great journey, but you need a certain grit and hustle.

Hi Allen. Yep I agree with this. There is going to be some BS to deal with so people need to be mentally and financially prepared to deal with it. Had a tenant completely trash one of my apartments this year so that was a big unexpected expense to rehab it plus vacancy loss. Ouch! However, I will accept this reality over a W-2. Hustle and grit are necessary to do well within the RE world. The money comes easy sometimes but it also can go away easily too.

I appreciate the reality check from many who posted on this thread. While I am not so far ahead in my REI journey that I experience some of the aches and pains of what it may bring, I would much rather work for myself. I have been working in social services and "health related equitable care for all" type jobs. It has been very rewarding, but I am burnt out and tired. All the while, I have not been "minding my own business" and working to establish myself and my future. I am aware that realistically it takes grit and hard work. We don't escape this life without problems. However, if I get to choose the problems I have; it's REI and working for myself over someone telling me I don't have enough PTO to take so I can't take the day off even though I'm sick. If I am sick and have to work, it will be on MY terms. The fact is I am no longer passionate about the work I do at my W2. I never foresaw a future that did not include working for a company and getting retirement at 65. Now I see that I can choose different and I am not bound by those societal norms that tells you that is how life is lived. I'd rather not stress about my job depending on if Karen responded to my email so I can get the information I need to complete a report. Instead, I much prefer building my network, learning more about REI, dealing with contractors and managing money/budgets on my own projects etc. Thanks again for those who responded because it really does help put things into perspective and motivates me to push even harder.

Does anyone investing in Philadelphia have insight into buying land through PHDC land development program? My father owns a property that is next to a vacant lot. Initially I was going to apply for a side/year yard however, there is a stipulation that you cannot sell or build on it. My intent anyway was to demolish my dad's property and build a new building with units. I would love to buy through the city and do an affordable housing project. I am a very new investor but am not afraid of the hard work that might need to be put in. I just want to know if there is anyone with experience that could steer me in the right direction. Also, do you know how I could get the city to fund a project like this? I know the city offers funding to minority developers. Anything helps! Thank you.

Lots of my close friends and family have been approaching me lately to talk about real estate investing. They have shown real interest in going into a deal with me. I have never done anything like that but want to take advantage of the potential opportunities. Any ideas on where to start and how to invest with others to make profit without relationships going sour? 

I have made many mistakes but have also had lots of luck. Right now I have two single family homes and one duplex that I thought was a triplex. I didn't do my research and found out the basement was not a legal unit. I have this property rented and make about 1k profit. I bought it turn key at roughly 300k. I dont know if this was the right move but its in a booming area in West Philly. Getting a rental license for the basement isn't possible and I manage all my properties with a full time corporate job. I want to invest in real estate and leave the rat race. I'm open to suggestions on what to do next. Sell it to maybe make some profit? Or does anyone know how realistic it is to turn a duplex property into a triplex in Philly? Can a lawyer help with this? Thoughts? 

What's going on in Ohio and how can I get in? I don't live locally. Any RE agents who can help find good deals for a flip or brrrr?