Is patience the answer? No...there is no answer. Get used to it. - Posted by You Probably Know Me

Choices - Posted by Carmen_FL

Posted by Carmen_FL on March 16, 2000 at 07:47:35:

Definition of Insanity: Doing the same things you’ve always done and expecting different results.

We’ve all heard this.

I don’t have an answer, but I think what you need is a shift in your mental state. We all make choices in life. There is fear and uncertainty in every single change in life - how did you feel as you graduated high school, got married, had your first child? All of those things were probably very stressful and scary - and exciting! This is another “turning point” in life, and only you can decide whether and how to move from “exchanging hours for dollars” to having the freedom of owning your own time and making as much money as YOU can make. There are answers; you just need to find them.

It will be difficult to replace a 6-figure salary straight out in REI. But not impossible. Especially if you have some cash and credit, and a good job to fall back on. What you need is a plan. You have a trade-off between time and money. But where there’s a will, there’s a way!

For instance - do you think you could buy, fix and resell 5 houses in a year? If so, you could make $100K. Sit down and think about it, hard. “Hire” your “employees” well, and you can do this with minimal time investment. This is not particularly “creative”, but it would be effective. What would you need? A realtor to find the properties in the MLS. Very quickly, you could borrow the hard money to purchase the homes, and pay only for the repairs. Hire a good contractor to get them done for you. Then hire a realtor to sell them. Minimal time on your part. The entire process may take longer than if you were devoting yourself to this full time, but since you’re working, you’re not in a rush to get everything done yesterday, as you would if this was your only source of income.

Or, work with a partner that has the time, motivation, etc. but may need some of what you have to offer - repair costs, access to lenders, etc.

If it makes you feel better, instead of re-investing, save every penny of profit that you make through investing until you have one year’s salary behind you. It should only take you a year or so; a little longer if you split with a partner; 5-7 rehab houses a year is not impossible.

After you have that behind you, and decide to take the plunge, then you can start diving more deeply into the more creative (but more time consuming) REI techniques - like finding motivated sellers yourself, L/O, flips, wholesaling, or whatever else you want to do.

Just a couple of thoughts. My husband took the full time plunge, and I’m down to part-time at my JOB - so we’re just steps away from doing this full time. I know what it feels like. Sometimes I wish we had nothing when we started, so we would have nothing to lose. But unless you have nerves of steel and a cushion to fall back on for at least 6 months, I would not recommend that anyone with responsibilities just “jump in” blindly - but if you “plan the work and work the plan”, it’s MUCH easier.

Re: Is patience the answer? No…there is no answer. Get used to it. - Posted by Ben in Ohio

Posted by Ben in Ohio on March 16, 2000 at 07:42:19:

The cold, hard reality of working for oneself comes down to this simple fact-- “You can’t have all Chiefs and no Indians.” You have to decide which of those is you.

Re: Is patience the answer? No…there is no answer. Get used to it. - Posted by Tim (Atlanta)

Posted by Tim (Atlanta) on March 16, 2000 at 06:58:30:

Four years ago, I was in the same spot as you. I had a comfortable job, and things were going fine. I just couldn’t shake the motivation to make it on my own. Yes, I have a family too. I decided then and there that the corporate life was over for me. I started my own consulting firm. Now I can work when and where I want. If I want to do REI, I can take the time to do so. I make more money now, NOT less. I work less, spend more time with my family, and can pursue my REI.

Do you have to give up your six figure salary? Well, maybe you should. Its not the salary that is the problem, its your six figure lifestyle. You don’t have to “move into a cracker-box, drive an old 1979 car”, but you must change something. If you continue on this path, you will retire broke, depending on Social InSecurity, and still wondering “what if?”. Maybe you could downsize your lifestyle slowly. Maybe stop spending so much on housing and cars (two major expenses for most people). One big thing I would recommend is sitting down with your wife and talking this over. You might be surprised at her response. Maybe she is thinking the same thing as you are.

We all have big dreams. Big dreams don’t happen overnight. If you are not willing to make the sacrifice, they won’t happen at all.

This post is not meant to offend, but to motivate you to do something. It will be hard. Start today.

Ditto - Posted by SteveA (FL)

Posted by SteveA (FL) on March 16, 2000 at 05:10:02:

Wonderfully stated. I too, am in a similar situation (Although my income is not quite at the level of yours. Close.) My company recently gave me stock options which they rarely give out, an extrodinary review and bonus, and a raise is following. How can I leave my J-O-B knowing I’ll be vested in stock in 5 years that will be worth more than a years salary?

In the meantime, I trudge along as you driving 60 miles once a week to attend REI class and an add’l day each month for meetings. I work early mornings and late evenings as much as I can on REI, but as you said, I sit and watch the full-timers snatch everything up.

I’ve recently just made a concious choice to focus only on getting started this year and doing 2 houses. That’s it. When that’s done, I’ll re-evaluate my time and see IF I want to spend more time doing more houses.

Have you ever heard Robyn Thompson’s story? We were fortunate enough to get her as our speaker in last weeks class. She works with Ron LeGrand and 3-4 years ago, she worked for IBM and waitressed tables in the evening. She too, survived a layoff but only ended up with a higher workload. She eventually quit IBM and only waited tables and dabbled in REI. She is now a multi-millionare, did 50 houses last year (while writing a course and traveling with Ron) and said she’s aiming for 70 this year. She lives in a town of 100,000 and has stiff competition. Very sharp lady.

Now that’s inspiration. Best of luck.

Re: Read Further… - Posted by You Probably Know Me

Posted by You Probably Know Me on March 17, 2000 at 12:38:34:

I invest in real estate regularly. Read the post again…it’s about going from part-time investor to full-time, and giving up the six-figure JOB in doing so.


Re: There ARE answers… - Posted by You Probably know Me

Posted by You Probably know Me on March 18, 2000 at 18:52:41:

Mr. Chan, I have to respond. When you state

“Regarding your job, are you going to “blame” your employer if they lay you off? You don’t want to hurt your family yet you sound like you are willing to put your family’s fate in their hands. So you can say that it was “their fault” and not yours. What a farce.”

I feel that you have severely prejudged and assumed…quite surprising coming from you. If my company lays me off, I will get 6 months of pay to allow me to get my business going. If I quit, I get NADA. Not such a “farce”.


I gotta fire my CPA !!! - Posted by Laure

Posted by Laure on March 16, 2000 at 21:47:12:

I’m paying way too much tax ! LOL

Laure :slight_smile:

Great Post Carmen! You’re right–he needs a plan! (nt) - Posted by JoeB(Atlanta)

Posted by JoeB(Atlanta) on March 16, 2000 at 08:02:09:


Been there…done that. - Posted by Chenel_MD

Posted by Chenel_MD on March 16, 2000 at 09:07:32:

I completely understand your thinking. I used to think like that myself. Two years ago, my husband bought Russ Whitney and Carleton Sheets course. Boy was I angry, he spend $300 bucks on what I believed was garbage. At the time I thought “Well fine, if he wants to waste his money.” You see we both had good jobs. In fact I made way more money (shhh don’t tell him that) and we had a very comfortable lifestyle.

Then it started. He started talking about real estate investing. OK, it was fine that he spent the money but now he was messing with my lifestyle. I was not happy. And he started getting serious about it, spending more time reading. It was really getting on my nerves. Then HE MADE me read those courses.

So after a few arguments I did. Now I was convinced that none of that stuff would work. I tried all arguments that you hear from doubters about buying houses no money down being illegal and impossible.

And to prove it to him, I picked up the newspaper and called some ads. And oh my god, did I feel stupid. The sellers were not only willing to listen to that stupid jargon, but wanted me to work out the numbers and close the deal.

Well, let me tell you I reread those courses, but some new ones and was on my way. We developed a plan and kept chugging away. We bought our first house with no money down and received $2000 back at closing. Of course we had some contracts that didn’t go through and found out that our credit was in the greatest shape. But we are still plunging away.

And oh by the way, I quit my job and got my real estate license. Now we close on a deal on Monday that has made all of the hard work worth it.

Carmen is right, but one thing is for sure, you need to change your thinking. Once I started thinking about real estate investing all day, all night and in my sleep, things started happening.

Talk to your wife first she can be your most valuable partner. We are now making plans for my husband to reduce to a part-time job in the summer.

REI class - Posted by tang-0-rang(CO)

Posted by tang-0-rang(CO) on March 16, 2000 at 08:15:44:

what exactly is the class about, any certain area of REI. who do you contact to get involved in the class.
Todd Williamson

And Now you have created your own Solution… - Posted by David Alexander

Posted by David Alexander on March 19, 2000 at 02:05:00:

First let me say you have to know Matthew to understand where he’s coming from. He doesnt mean any disrepect. the problem with the no inference with internet is that you cant see the smile on his face as he feels truly right about his point. He expects nothing less of anyone else as he expects nothing less of himself, and the point he seemed to making to me was simply of one of responsibilty.

You, I and everyone else really have full control of our own lives.

But, that aside, here’s what I noticed. You just said yourself that if your company laid you off you’d get 6 months severance pay and then you would start your business, as if then forced to. Would You?

So my question is Why Wait? Start working immediately on creating your own 6 Months worth of Severance pay, and when you get there ReAnalyze the situation.

Maybe then you’ll decide that the job your going to is costing you to much money.

Another Point and things to consider about that job that I see could make things easier.

When you get your paycheck, and we’ll asume 10k a month, how much of that goes directly to the government before you get to spend a dime?

How bout this, start a corp and start learning the writeoffs you can take to pay with things with before tax money, to eleviate some of your expenses. You can do this before you quit. You can figure out what expenses your company can pay for? That will lower your monthly expenses needed.

Another thought if your not ready to jump in fully and
Make no mistake, it aint all easy out there. As I saw Terry say in an earlier post your gonna gets bumps, bruises and bloody noses along the way. If you can deal with that, then charge forward, if not you probably should find someone to partner with, where maybe you provide the cash, credit and they provide the deals for you to invest passively until you get your cash or cashflow up and feel there are enough deals coming in.

Your comfort level is YOUR comfort level, and no one else can make that decision for you, and only you can change that. But, what’s the price of freedom for your family.

On my daughters birthday months back I was able to spend the whole day with her at the zoo. There is no amount of money that can replace that. You have to find whatever it is that makes it right for you to move out of the comfort level or not.

Best of all,

David Alexander

P.S. You really should post your name, hope the next time you pose a question like this you do.

Re: There ARE answers… - Posted by Matthew Chan

Posted by Matthew Chan on March 18, 2000 at 22:12:40:

I was working with limited information.

So, let’s flip this around… since you are now getting hung up on the 6-month severance pay…

IF your employer DOESN’T lay you off, then wouldn’t you be in the same predicament of not having time to do what you want and simply watching other people get and/or do all the deals?

Would it then become the employer’s “fault” of you having no RE investing time by NOT laying you off? Re-read your original post, then re-read your response to me. Your destiny is hinged upon whether your employer lays you off or not. Tough and powerless way to live…

The farce comment stands…

Re: I gotta fire my CPA !!! - Posted by IdahoRob

Posted by IdahoRob on March 17, 2000 at 24:05:12:

Laure I am all for the stright 15% flat tax. How come that idea died out a couple years ago.
Rob Harris

Re: There ARE answers… - Posted by You Probably Know Me

Posted by You Probably Know Me on March 19, 2000 at 01:14:10:

Mr. Chang, I wrote a scathing reply to your post, and I’ve deleted the whole thing. There’s no reason for it.

You have reasons to form your opinions, and I’ll accept your right to post them. I feel they are overly hostile and show a lack of empathy, class, and understanding. I hope one day, maybe after reading HR’s post, that you realize these feelings and frustrations are a normal part of making a milestone decision.

I, personally don’t care how you use my words against me to play psycho-analyst. Your reply means nothing to me. You happen to be way off base in your analysis, but a “mastermind” would never admit that to themselves, so I see this argument is futile.