Posted by DHarris on June 15, 1999 at 09:39:24:
I agree. That is the problem, people live in fear. Sometimes you’ve got to say what the F@$% and make your move.
is John T. Reed dead???
Yea Ha… I’m Quitting My Job This Morning!!! - Posted by Erich
Posted by Erich on June 10, 1999 at 05:45:05:
I have decided that I am ready to make the big Change…Quit my job (Mechanical Engineering) for a new career of real estate investing. In the last two years I bought and fixed up a 4-plex and a duplex in good neighborhoods. Both investments made good money and have cash flows of a few hundred a month after expences. Last week I bought a fixer 3bed/2bath in good neighborhood from a motivated seller and owner financed the entire purchace with a wrap around mortage for 120 days.
I plan to quit my job and fix up the house. I got fincancing to rehab and live for 4 months. and can sell at 40 to 50K profit.
Does anyone know about bank financig with no job? I have great credit and equity. Any sugestions would be appreciated!
Re: Yea Ha… I’m Quitting My Job This Morning!!! - Posted by Carolyn McColly
Posted by Carolyn McColly on June 15, 1999 at 18:44:23:
You have alot of courage, but I think you will be able to make it. I continued to work for years (16 years total) in a job that I liked but not wanted to do because of finances. I am married with one child. I really am excited about real estate investing. I bought Carleton Sheets course last July. I bought Ron Legrand a couple of months ago. I did manage to get a lease option on my house where I am currently living. I do not have great credit because of past lay-offs, disability etc. etc. I do have alot of credit card credit, but my major goal is to erase that! Anyway, my husband got transferred with his job and suddenly I was downsized. (for the second time in my life!!) I am thrilled though because I think that I can make a successful business and help other people at the same time, no matter where we live. I think God gave me the shove I needed when I was afraid to quit. I am still as excited and motivated as the first day I saw CS infomercial. Having a job took up almost all of my time and I am really thankful for this opportunity to devote so much time to real estate!
Re: We are behind you - Posted by DanM(OR)
Posted by DanM(OR) on June 15, 1999 at 10:08:20:
Erich,
Keep us informed of your progress. I for one am cheering for you. I’m an ME also and look to quit by the end of the year. I am going go through a couple of deals and will try to establish my company’s credit before I quit. That’s just my method. It seems you are a couple steps ahead of me and I envy you.
I’m with Karp! Best of luck you!
Dan Matejsek
Re: Yea Ha… I’m Quitting My Job This Morning!!! - Posted by Millie I.
Posted by Millie I. on June 15, 1999 at 01:13:27:
Cold Hard Reality to face when Quitting your job:
Do you have enough:
- Money to pay bills/live on for 9 to 12 months - Most renovations require 2 to 4 months full time to finish, and another 2 to 10 months to sell. Do you have enough to live on till the house is sold? What about the kids? Medical Insurance for the family?
2)Money for renovation materials and hiring - You will need money for materials even if you do most of the work yourself. Materials are not cheap. You WILL have to hire someone when a licenced contrator and permits are legally required. Now you are talking big bucks.
- Money to pay mortgages/loans - Everybody talks about getting no money down or low down payment. Nobody talks about how you are going to make those monthly payments. The smaller your downpayment, the bigger the monthly payment. What is the worse case scenerio? 6 months to fix, 10 months to sell? …
How do you plan to support your family, pay your bills, mortgage, loans, contractors, and materials for 6 months? 9 months? 12 months?
Plan NOW, and act accordingly. Don’t wait till your money runs out, and then figure out how you’re gonna save your renovated house from being foreclosed by the bank, or sold dirt cheap to the first buyer at any price.
Unless your are financially prepared, stay on the job till you make enough on real estates to permenantly cut the apron strings with the employer. The family must come first.
However, if you are going to be ‘downsized’ out of a job anyway, stay till the last day, getting your pension, severence pay, 6 months unemployment benefits and free education, then work 12 hours a day on that house and hope you fix and sold it with a profit in 6 months.
Best of Luck,
Millie I.
Re: Yea Ha… I’m Quitting My Job This Morning!!! - Posted by eBankRobber
Posted by eBankRobber on June 14, 1999 at 19:55:56:
I will not comment on your decision to quit your job because you give no indication of whether you have a high paying job or not. Obtain as many credit cards as you could before quitting, if it is not too late.
All these poeple are wrong! - Posted by karp
Posted by karp on June 14, 1999 at 19:44:14:
Hey Erich,
I am not one to disagree with people on this board (HA!)
So on that note, let me be the first to congratulate you on quitting your stupid job.
When you reflect on how much of your life has gone by working for soemone else and NOW you are finally in control, Man it is awesome!
So what if it is hard to get loans. (We will help!)
So what if it is hard to stay motivated (We will help!)
So what if it seems scary. (We will help!)
I know John T. Reed would be rolling over in his grave at the thought of jumping in like this but all I can say is…
Congratulations on jumping in before you know how deep the water truly is. You have just entered the realm of the entrepreneur. You are a victor in my eyes!
Thanks,
karp
Re: Yea Ha… I’m Quitting My Job This Morning!!! - Posted by Alex Gurevich, TX
Posted by Alex Gurevich, TX on June 14, 1999 at 16:21:21:
Pretty bold move. The conventional financing will be tough if not impossible to get for a while because you can’t prove the history of self employed income yet. Lender’s usually want to see at least 2 years worth of self employment income before you can get funds. There are loans with no income verification, but they usually require a large 20%+ down payment.
You may consider looking for private money lenders, they would not care about your employment verifications, etc. Expect to pay high interest, perhaps, points. But it’s good short term money for anything you can buy cheap.
I’m with Bud on the fact you should be spending your time looking for deals and have contractors do fix up.
Re: Yea Ha… I’m Quitting My Job This Morning!!! - Posted by Scott Moore
Posted by Scott Moore on June 10, 1999 at 07:47:42:
Yes, I suggest that your do not quit your job yet. You need a history of income from your investments so it will be VERY hard to find a lender with you not working.
Re: Yea Ha… I’m Quitting My Job This Morning!!! - Posted by Bud Branstetter
Posted by Bud Branstetter on June 10, 1999 at 07:43:40:
I should say congratulations on your new career. But I would like to comment on the perils. You say you are quiting to fix up the property. Why can’t you do that while working? If you are going to do a lot of the work yourself then you have exchanged one job for one at the labor rate you could have hired it done.
Most of your time and money should be spent looking for leads, advertising, ads, marketing. All of this takes some time to get in gear. You will get many opportunities and unless you are comfortable with how to structure most of them you will initially miss many opportunities. You may well find that you can make it just rehabbing. With the good credit you will be able to get loans with no income verification but the rates will be higher and the LTV’s will be lower.
We will be pulling for you to make it so do not be shy about asking for help.
Re: Yea Ha… I’m Quitting My Job This Morning!!! - Posted by Tim Jensen
Posted by Tim Jensen on June 15, 1999 at 20:07:24:
Millie,
I just want to say right on! I agree with what you say 100%. I think that these are all very good questions that someone should answer before they consider quiting their job and doing real estate fulltime.
Tim Jensen