Feasibility of a quick cash?? - Posted by Jim (Houston)

Posted by Billybob on June 28, 2002 at 21:45:09:

waiting for your pink slip at Worldcom, are you?

Feasibility of a quick cash?? - Posted by Jim (Houston)

Posted by Jim (Houston) on June 28, 2002 at 12:02:02:

Hi all,
I have a certain situation which has made me curious about one thing in this business.

First of all I understand Real Estate is NOT a get rich quick business and that it takes ALOT of hard work and perseverance to succeed long term.

But apart from that I just want to know some investors opinions of how feasible it is to replace a $3800 per month job and do it within 30 days through flips, L/Os etc?

Don’t get me wrong and think I’m looking at this the wrong way I understand the reality of REI is that it is NOT a get rich quick thing. I just find myself in a situation and wanted some real opinions from people who have been doing it for a while.

Once again I am just curious as to other investors opinions

Thanks for any responses

Jim Goodwin

Re: Feasibility of a quick cash?? - Posted by Isabel

Posted by Isabel on June 28, 2002 at 15:42:40:

Depending on your REI education and experience, I would say it is feasable but I personally wouldn’t do it. If I had to do it all over again, I would hang on to the J.O.B. because Real Estate is a Business. As a business, there are cost associated with the start up so if you have a reserve of cash for living expenses, and the business- go for it.
In order to replace the income, you need to get paid on the deal. That means that you have to find the houses. To me, that is one of the hardest things to do. Do you have $$$ for marketing?, Do you have a realtor who has agreed to work for you on a commission only basis? Are you going to birddog/scout neighborhoods? Do you have earnest money to put down on a contract? Do you have someone already chosen to flip to?
As you can see, I could go on and on. You don’t address any prior experience or REI education so it is hard to truley advise as to the feasability. I am also from Houston. We are very fortunate that we live in such a good market here, but the houses are still not easy for me to find, and I am a realtor. Once I find them, it takes time for the money to be paid so replacing $3800 could be hard at first, but get easier with time.
Maybe a PLAN is what is needed with the end goal to be the letting go of the JOB. I have seen many investors start part time and grow to full time, very successfully, I might add. Good Luck!

Re: Feasibility of a quick cash?? - Posted by GL(ON)

Posted by GL(ON) on June 28, 2002 at 12:15:08:

It is quite possible to replace your salary with real estate investment income. But don’t quit your job until your investment income is greater than your salary.

For one thing it isn’t as easy as it looks, and it isn’t for everyone. You don’t need the added stress of burning your bridges.

For another thing it isn’t that dependable at first.You need that salary to put food on the table and give you the freedom to run around and do deals.

Finally, when you quit your job your ability to borrow goes right down the drain, and the use of credit and borrowing is the life blood of real estate investing.

If you quit your job too soon it will definitely hurt you and hold you back.

Re: Feasibility of a quick cash?? - Posted by Jim (Houston)

Posted by Jim (Houston) on June 28, 2002 at 17:07:08:

Isabel,

Thanks alot for the good advice. I normally would agree 100% with what you said in fact that was/is my plan. I really am logical even if it doesn’t seem that way from my post. The main reason I brought this up is because I am facing the possibility of not having the choice of keeping the J.O.B. becuase it might not be up to me =) And your assesment of my experience is very astute I don’t have much of any actual experience. I am just reading everything I can get my hands on at the moment.

I do agree I am gonna try to do everything possible to keep the J.O.B. But I have always been taught to expect the worst and try to prepare for it but hope for the best

So once again thanks for the post it is VERY good advice

Best Regards,
Jim Goodwin

Re: Feasibility of a quick cash?? - Posted by wpage

Posted by wpage on June 28, 2002 at 14:35:54:

Jim It won’t be easy but nothing in life is easy but it can be done if you work smart/hard/fast. First of all if this is your gross income before tax, then you don’t have to replace $3800. but an amount substantially less.Maybe $2800./month because you will not have to pay income taxes each month. Real estate gives you a lot of tax benefits that you would not get doing your job. You would now be self-employed and have many tax breaks. Shoot for what you need to pay the bills and survive without going without for your family. This will take away the stress level and allow you to consentrate on making some money.
Start looking for properties that you can tie up without a lot of out of pocket monies.You can flip or assign these deals to others.That would be the fastest way to get cash.Look for properties that have a price range for the average persons ability to buy in your area. This will give you a broader market of potential buyers with lower payments.Start now! Nothing is impossible!