Are there any rehabbers out there who had full-time jobs when they started or still have full-time jobs and do rehabbing on the side? I’m wondering if it’s realistic to be able to do this when I work 50+ hours a week since I wouldn’t be able to spend a whole lot of time on the jobsite
I work fulltime and rehab…mostly weekends. It takes a while but my holding costs are minimal.
Keith
Do you use contractors or do the work yourself?
I have a full time job, and starting to rehab. I think that it would be more cost effective to hire contractors, to turn the house quicker for profit. Or take a profit, and turn it over to another investor?
I do most of the work myself. I do all except heavy electrical, heating, A/C.
Keith
I only did one rehab myself, that was my first. I realized that as an investor, my job is to find the property and buy it. Keeping the pipeline full. If I take time out to do the rehab myself, I have no more properties in the pipeline.
Then I have to crank up the marketing all over again. That is why I have contractor do the work. I also am able to do this full time now as I have created a system that works.
Ya know, the more I realized how to make a system, the better off I was. I realized I didn’t need to be self-employed and do all the work myself. I had others do it for me, and I had more time.
You should try reading the E-Myth. Great book. Talks about how to create structure and systems.
Hi, I went to your website and signed up for your newsletter. Is the E-myth book your system? If not I would love to hear what it is. I prefer to learn from your mistakes instead of making them myself=)
No, the E-Myth is a great book by Michael E. Gerber.
Look it up…There is the original E-Myth, the E-Myth Revisited and the E-Myth Manager.
My husband and I are begining investors. We have one property starting. He does all the work himwslef and works f/t. I work f/t as well. It has been very difficult. Fianacially, etc. We feel it would take less time if we hire a contractor; however no money for that. Also my husband would eventually one day like to do this soley (instead of working) and purchase more rehab properties. I can say it is definietly a stuggle. We will appreciate what we have done in the end. :o
I found all three, which one first? I have limited extra time, so I would like to read the right one.
You have limited time? Join the club. Investors that are full time have limited time. You have to WANT! this gig more than anything else. Not getting on ya here bud just telling you that…as one person told me…"How bad to you want it? I want it bad. I have been investing for exactly one year. Been working f/t for the same damn company for almost six years. This is after spending 6 years in the Air Force. I said enough was enough and told my wife that it was time to “crap” or get off the pot.
One year later I have 4 rental properties, 5 properties bought and sold owner financed, one foreclosure that I bought and rehabbed and have on a lease/option and closing on my second rehab in July. My point is that you need to get after it and most importantly…surround yourself with GOOD people. Realtors, brokers, contractors, REI groups, etc. Its right in front of you if you have the guts to stick with a gameplan and execute. I wish you the best.
Nate-WI
PS. Four kids and wife make for interesting mix with the above 
I didn’t mean that rude one bit!!! I work full time managing a low income apartment community (which is very very demanding!). I have two kids and I am the mommy, so I feel really guilty, but… I spend every waking minute at home towards the investing business. I spend my lunch hour driving to look at possible investment homes (I live in a small town and work in the city) I race home, with my husband, to get my little one on time, I come home put the lap top on the kitchen table, turn it on, and go to the computer between cooking, and trying to pay attention to my very very talkative little girl.
Then "mommy I’m thirsty, mommy can I have this? Can I have that? Then run the bath that gives me another 10 minutes, stay up till midnight or 1:00am, trying to find investment properties and gathering as much knowledge as possible. An energy drink and pot of coffee in the morning.
My “book” reading time is 30 minutes to work and 30 minutes home from work, with my husband complaining that I don’t spend enough time with him; (after checking e-mails on my cell)
This is why I have “limited time” and why I need to pick the best book first. I have only read a couple, and want to only read books that are referred to me, so that I can get good information quickly.
Even though you seemed aggressive, you inspired me even more, because iI was beginning to wonder how long this will take, after six offers, finally getting one, and the somehow on the day of closing, found that the owner filed bankruptcy.
One thing you can’t say to me is to: “get after it” because I’m there buddy!=)
Excellent! I can’t tell you how many offers I have put in and got shot down. Who cares! Its a number’s game especially with REO’s. I work from 0430-1300 (on average) and then I am doing the RE thing. One thing to keep in perspective is this…I have had realtors, brokers, etc. call me when I have been doing family things and it doesn’t fly. I don’t answer and let VM pick up.
Keep your family in check cause they are your support group and the ones that make this career a choice of yours.
Nate-WI
Yes, I agree. I try to work through e-mails, and stay off the phone!
Holy moly, anybody going to ANSWER her question? WHICH book 1st? sheesh
Ya!! S’up with that??
Full time, same job for 26 years. I rehab / landlord on the side. I’m not big time, only own 3 props but am ready to bail on my job, or go part time. Had about enough.
My last purchase was a REO that I intended to rehab and flip. Instead I wound up renting it to a tenent ( a very responsible, reliable tenent ) from one of my other rentals. It has a pole building that I use on the lot.
I am a family man so I have all the usual obligations that come with that. I used almost all of my vacation time rehabbing the last one. And alot more time. But I enjoy this, it’s an escape and somethng that I can do for me. It’s my a** on the line. That’s motivating and empowering. And the rewards ( profits) are mine, not someone elses. It’s hard work but it makes me feel good doing it.
Just my 2 cents.
Now what about that book?..
yes, we would love to do this full time too. It’s a good thing that you have three rental properties. When you have rental properties, do you actually make a monthly cash flow? I have heard to figure out what the payments will be, take the sale amount of the house, and move a decimal point.
For instance: You buy a house for $120,000, your monthly payments, including taxes will be around $1200.
I’ll try to send the guy that started the book thing a message=)
Sounds about right - Typical monthly payment is about 1% of the mortgage amount.
I’m not making anything on the most recent purchase, the flipper I kept. My profit is in the equity of the home, about $35K. It’s like a forced savings account that comes with a free pole barn. Hey, that’s better then a toaster!
Here’s how that one stacks up: rent = $700
Payment = $510 with NO escrows. So after taxes, ins, etc, I’m in the red. But not by much.
My others are money makers with pretty good positve cash flow. I’m not sure which way to grow, buying rentals or flippers. I would prefer flipping, but the tax ramifications are troubling. My next step is to set up an LLC and talk to a CPA. That should clear things up. I just want to make sure i continue to move forward.
What are the tax ramifications? I have not considered that at all! How many taxes to you have to pay on the money you have? How do you figure that out?