Posted by HR on February 18, 2002 at 10:50:42:
Posted by HR on February 18, 2002 at 10:50:42:
Realistic - Posted by JimG
Posted by JimG on February 18, 2002 at 06:02:18:
Question for everyone.
Is it realistic to think that one can replace a 50 something a year salary, within a year of starting creative REI? How many L/O’s, rehabs, subj2’s, with a conservative estimate on profit would one have to do? Just looking for that last piece of mind before I jump into this.
I’m in the same situation. - Posted by Michel (TX)
Posted by Michel (TX) on February 18, 2002 at 12:05:32:
I started in REI last June. I’m working full time, making about 50k a year. I had a goal of 3 houses before the end of the year. I did buy 3 houses ( 2 sub-2) and a piece of land by last December. I hadn’t done much advertising, concerned that I would be overwhelmed by too many deals. This past month, I sold my 2 sub-2, making a profit of 40k. This year, my goal is 5 houses.
Next week, I’ll go ahead with a full-blown marketing campaign, now that I feel more confident with my skills and my knowledge (in addition to more cash), thanks to this board. Will I quit my job this year? No! Maybe, when I reach my goal of 10 houses for 2003. In the mean time, I look forward to learn more and stay up to date with REI. Good luck!
Re: Realistic - Posted by GL(ON)
Posted by GL(ON) on February 18, 2002 at 09:22:31:
It doesn’t have to be one or the other. Keep your job until your investment income is equal to or greater than your salary.
You need that job to have a credit rating and borrow money. Right now you can borrow very easily, and your loan would be a standard consumer type loan like they do every day.It is far harder to borrow if you don’t have a job. You need a substantial portfolio and several years success before you can get loans as an investor. Even then, you will be talking to the commercial loan department which is tougher and has higher interest rates. This is why there is so much stress laid on non bank financing and low or no down payment deals.
You also need that steady paycheck until you have enough income to replace it.
If you were a real hot shot you could do it in a year. Two years is really the more realistic goal, as you will no doubt fumble the ball a few times on the way. In other words the experienced players could do it in a year but if you are still learning give yourself some slack.
Re: Realistic - Posted by Brent_IL
Posted by Brent_IL on February 18, 2002 at 08:09:49:
The usual reply, it depends. Under consideration would be your level of experience, credit profile, cash on hand, and the average price of homes sold in your work area.
If the FMV of the homes you’re buying is $700,000, you can do one deal a year and call it a day. If it’s $30,000, you’ll be busy.
Based solely on your question, are you sure you’re ready to go full time?
Don’t forget to factor in the perquisites that come with the job.
Best of luck.
why put that pressure on yourself? - Posted by ken in sc
Posted by ken in sc on February 18, 2002 at 08:09:42:
How about just setting a goal to take this next year and maximize your education in REI, and to do a few deals on the side. This way, your income is not dependent on your REI, which takes the pressure off and makes it more fun. If you do a deal and make $15,000, you can add that to your $50,000 and have mor money. If it flops and you make $500, who cares? You just got paid $500 to learn hands-on about REI!
I did some rehabs and bought some rentals for a couple yrs before I tried to make it full time. Even after that, it was so different when I HAD to make deals to eat. The pressure was way different. I would not have wanted that pressure before I had some deals under my belt. But that is me - you may be made of stronger stuff or thrive on that type of pressure. To each his own.
I wish you much success - Ken
Re: Realistic - Posted by Dan-fl
Posted by Dan-fl on February 18, 2002 at 07:24:38:
I think its realistic,if you work hard and have the education.When I started my first year I did 5 rehabs,with a average profit of $15,000 each and I was only looking to replace my work income of $35,000 a year.Buy all the courses and books you can afford and go get some deals.
don’t forget - Posted by Bryan in Cali
Posted by Bryan in Cali on February 18, 2002 at 15:08:25:
Don’t forget that the average newbie who comes to a place like CRE or richdad.com is in his forties, is stuck in a dead end job, and most importantly has tons of debt, most of it consumer (credit cards, cars, personal home). I would say to such a person to get out of debt ASAP. That will take a lot of pressure off.