How many of you guys had/have reg jobs that payed a hourly wage before you got started in Real Estate?
I know you can do Real Estate with no money down and with bad credit, but it is ALOT easier to do it with money.
The reason why I ask is because I can either go straight into Real Estate without having a hourly job, or I can go to nursing school ( thats what my parents want me to do) at a community college 2 miles away for 1 year. After that I am gauranteed $25 per hour job anywhere in the country for the rest of my life. I sure could save alot of money for investing. If I do go to nursing school, ill probably go get my realtor license and work a few hours a day just to keep myself into Real Estate.
So what im asking if, how many of you guys started with a saved up bundle of cash?
Go to school and get your nursing degree. If your real estate career does not go well, you will always have something to fall back on that pays you well and you will have financial backing to help you advance your career.
Ditto. An education is one of the few things no one can take away from you. Years ago, I had a professor who suggested we always have a few skills that we loved, to fall back on. He couldn’t have been more correct.
You have absolutely nothing to lose by going back to school and securing a job - especially in the medical field. I was in corporate job before getting into real estate investing. You will have the advantage not only of being able to set aside cash for your investing, but have the income to build your credit profile, your bank profile and overall worthiness for obtaining conventional financing.
As a real estate investor or homeowner you have the ability to wench more out of your paycheck to help fuel your real esate investing or help pay for your first home. Take the total of what you would be paying each year on mortgage interest and divide it by 3200. The result is the number of “dependents” you can put on your W4. Having more exclusions on your W4 allows you to get more NET out of your paycheck each month/week. That extra cash is what you put toward your home (by paying down principal) or investment for improvements, negative cash flow or reserves. Note: Talk to a CPA about this strategy before you put it in play - so you really understand it’s impact on your specific finances.
The question is more " What do YOU want to do?" If you want to be a nurse that’s great. But I gotta tell you Nursing school is tough and takes a TON of your time. My wife is a nurse and I’m a Respiratory Therapist. We both had similar courseloads. If you’re only going for 1 yr. you’ll be an LPN. Healthcare is slowly phasing LPNS out. If you want to be an RN, you’ll need at LEAST 3 yrs just to graduate. When you’re not in school, you’re doing 16hrs/week doing your clinical rotation and studying. Having a job during all this is very hard to do. It’s a big committment of time and energy. You’ve got to really want to do it for YOU. I suggest you “shadow” a nurse for a few days to see the stuff they have to do(not pretty). Decide what YOU want to do right now. You have so many options avalable to you at your age it gets confusing. Find something you’re interested in and pursue it. If you really want to be a REI, perhaps you can get a job with a contractor and learn all you can about home construction, remodeling, prices etc… Live with your parents untl they kick you out! :biggrin Work your butt off and save all you can. Whichever field you want, it’s better to get a job at something that is related to it while you learn about it.Good luck.
Yeah. My mom/grandma/aunt/uncle are all nurses. 2 of them are LPN’s. Not sure how it is where you live phlemboy, but down here in Indiana LPN’s can get a job very very easily. I look in the newspapers are they are begging for LPN’s at $22-25 an hour. I see 4-5 job openings a day. There is no doubt, medical field is a good way to get a secure job
I think what Im going to do is
Get out of HS.
Get Realtor license.
Go to nursing school for LPN while working A LITTLE as a Realtor, just to keep myself in.
My sister and mother are both OR nurses and do very well…My advice is to take the guaranteed income…Real estate when starting out isnt real money that will pay your lifestyle…And yes you do need money and good credit to properly do real estate contrary to the nonsense posted on these forums…Income is very important and a lucrative stable career is essential…
Hey Hoosier, I’ve talked with you before a few times and I remember you saying that you wanted to get in to real estate investing, not become a realtor. If you want to be a realtor or nurse that’s awesome, but if you are looking to become an investor I think you should look at taking the time when you are “working a little as a realtor” and “work a little as a bird dog”. Being a realtor isn’t going to help you much when it comes to investing, especially to start. My two cents…
The way God made the world everybody has to work. Real estate can be a job or an investment. Either way it takes work, but different types of work. I work a regular W-2 job that pays for money that I use to establish my lifestyle. I then invest for my wealth. Some people invest in stocks some in antique cars, I invest in real estate. It is not my job and the amount of time I spend on them is proportional to the work but not the money. It is a lot easier to invest in real estate and do it right if you don’t HAVE to get every penny out of each deal or starve. I always say that the worst time to start a business is when you need the money from that business. If you have a W-2 job then you can eat and provide for your needs while you grow your real estate business to critical mass.
One day you look at your portfolio and realize that the amount your real estate is bringing in is as large as your personal expenses and then you realize that your job is optional and then you can be like propertymanager and spend all day riding your Harley around in the snow.
I echo what others have said about getting your education & then a job with a good steady income. The nursing field would probably work out great for you. Back when I was in college, I was so sick of school that I just wanted to get out into the “real world” and start working. I did end up quitting college after a few years and joined the military. Once I started paying back my student loans (with no degree to show for them), I realized I needed to suck it up and finish or I would’ve thrown tens of thousands of dollars and three years of my life away for nothing. So I started taking courses again. I finished my degree. I transitioned from enlisted to officer and am now flying for the Navy. I make a good living that supports my family of 6. I started REI last year and am hoping to build a business big enough that I can fully support my family with my military retirement and REI (in 10 years when I retire). My situation produces some added difficulties since I’ll have to move around from place to place, but I’m working some different angles to make things easier.
Take the extra time to get your education in the medical field. That will open many doors for you. Once you get that good job and use your credit responsibly, more doors will open for you to be able to invest in Real Estate. Read all you can on these forums. This is an awesome site.
The calculation of additional W4 exemptions in my example is not directly related to personal exemption allowance - it is in addition to that. Basically, you take your potential yearly tax refund (available to property owners who pay mortgage interest) up front rather than wait for it at the end of the year.
The 1 expemption per $1000 is not as accurate if you are talking about just regular schedul A exmeptions on your yearly return. The mortgage interest deduction as well as deductions for closing costs paid for property aquisitions is within .6% cash on cash equivalent deduction on taxes (schedule C and E only). Have an accountant or CPA do a couple of scenarios based on your returns from last year. The key is that the extra money you get from your paycheck MUST be put right back into real estate investments or paying down mortgage - otherwise you will get taxed on it at the end of the year.
I am only asking the question so I could understand where you are coming from. I don’t have a W-2 income, but instead mostly passive and portfolio income. I have to pay quarterly estimated taxes so my calculations are in a whole different realm.
Becoming a Nurse takes a LOT of time and effort even an LPN. It is a great job with a ton of security. There is also a lot of stress dealing with sick people. Are there any type of jobs related to RE that you can get that will help you as a REI? The reason I say that is nursing and REI are not related. You might be able to find a job in construction or homeremodeling that pays pretty well ( not as much as nursing). You’re young enough to go in different directions. But when it comes to healthcare, you better be in it because you really want to be there to help people. If not, the money wears off fast and most people quit after 6 months. Good Luck.
Being qualified to work a good paying job, where there is lots of demand so that you know you can get hired has an additional benefit (besides the steady paycheck)
Having the job to fall back on will prevent you from finding yourself desperate and backed into a corner. Real estate is good over the averages, but there can be dry spells. Sometimes being desperate distorts your judgement and you don’t make the best decisions while under that amount of pressure.
You will be able to make better decidisions if, in the back of your mnd, you always know you have another option.
You are getting plenty of good advice about going to college and getting a degree. I’m going to give you another point of view. With some of the cash flow analysis that’s done on this site, which I’m sure you are familiar with by now, if after college your bring home pay is $50,000/yr then that would be over 40 properties (at $100/mo). Look at it like that! It is a huge investment in yourself that no one can take away.
I still have a full time job after 10 years of doing this. There is no reason you can’t do both and be successful. I feel I have been and my retirement is pretty well set and I’m only 36.
If I remember correctly your not even 18 yet? If I was in your shoes at that age I’d be applying to every FIRE DEPARTMENT I could. Check your larger City Departments in YOUR area for when they accept applications. The competition for these jobs is FIERCE. When I originally got “on the job”(Fire Department) I took the written test with over 600 other guys, and that was for 50 jobs!!! There is also an EXTREMELY TOUGH physical agility test, which you will HAVE to train for. But I can tell you without a second of hesitation, it is THE BEST JOB IN THE WORLD!!!
Most of todays Firefighters are crossed trained as EMT’s so your definitely staying in the Health care sector. The work schedule can not be beat, 2 -10 hour days (7am-5pm) followed by 2 -14 hour nights (5pm -7am) then 4 days off. That leaves a TON of time for real estate. The other HUGE benefit??? Your going to be working with every trade you could ever imagine. The majority of fireman have worked in the construction trades…Electricians, plumbers, carpenters, flooring guys, cabinet makers, ect. I’ve seen entire HOUSES built by a crew. You’ll have a great pension, excellent health care coverage, and BANKS WILL LOVE YOU!!!
As a bonus you’ll have a job that for the last 20 years has ranked number 2 behind Doctors as one of our countries most respected professions.
My mother’s a nurse, my father was a Firefighter, I’m a Firefighter and my Brother is also a Firefighter. I know of what I speak.
Get “on the job” as soon as you can kid, It’ll be the best move you ever make.
If we keep going we just might confuse him with so many options :biggrin. I think the bottom line here is to find an field that YOU like and pays well. As for job security and pay, you can’t go wrong in healthcare with all the babyboomers coming up. You’ll need that stable income when it comes to REI. Sometimes I wish I was 18 again. You have a lot of options and a ton of time. A blank slate if you will. Good luck.
