This is a copy of my post in the discussion titled "real estate fastlane". I wanted to open a new discussion up around the topic so I started a new thread. I was hoping for more eyes and responses on the new thread. The discussion was surrounding which path to take....real estate (residential/commercial) vs starting an internet based business....pros/cons/advice!
Everyone
I very much appreciate the discussion on this topic....is real estate fastlane....that has become which is faster/better....real estate or start a business (preferably internet). This is EXACTLY what has been my roadblock!!! You see, I am a full time employee who works an awful lot...and basically has a job where I do not have set hours (on call all the time). With such a limited amount of time and without knowing my schedule from day to day it is difficult to choose my exit plan.
My options are as follows:
1. Start with single family residential flips (buy low, rehab and sell): I will do this to generate capital to invest in commercial properties (mh parks and/or apartments). I know the real money and appreciation is multiplied with more units. I have helped remodel certain parts of my homes but have never done a rehab before, so working with contractors, etc will all be new to me and there will be a learning curve. It may take more work and time at first, but it is eventually able to be scaled to a certain degree if you replicate your rehab materials/workers/etc.
2. Start with commercial deals. I am mostly interested in investing in MH parks and apartments....mostly MH parks though. But, what is holding me back? CAPITAL! If I found a solid deal on a 80 lot park for say $800k, where am I going to get the money to put down...160k or do a seller carry back for $80k...so my down stroke is still $80k. These are the deals that you can only find one deal and you are out of the rat race....JUST ONE....and I know this. Do I go straight into this and try to find one deal and partner with a money partner?? It seems to make sense to me...why play small ball if you know its just a means to an end? Im ready now.
3. Internet based business. I have a pretty good idea of a business that could definitely be scalable and which would benefit a whole lot of people. It will be based off a technology that is soon to explode. I can see the benefits and how it would work, but of course i HAVE NO Internet experience or website building experience. I would not even know who to approach to help me launch the site. I do not need to know everything about websites and marketing....as I can hire people to help me with that....but I do have a solid understanding of the underlying players on the business side of things. At the same time, I have a couple of acquaintences that do have some MAJOR successes with starting, running and selling internet companies to conglomerates that take them public. Do you approach those friends right away and say....hey, I have an idea....or do you try to develop idea and then approach them?
***With my limited free time and unscheduled work commitment***the internet based business is attractive because I can work on it from my home...at any time....anywhere...so it will fit with my schedule. The rehab business would demand more outside time/travelling/managing from different areas...so it would be hard from that viewpoint. The commercial business could be worked from home in terms of marketing...evaluating deals....offers....etc until it came time to do due diligence on the parks....then I would have to travel and spend alot of time in the park and looking at the financials/inspections/etc.
FOCUS - I am looking to determine which path to take. Once the decision is made, I will focus 100% of my allocated free time on the project. What do you say?
DO I
1. Rehab business - find, fix and sell?
2. Commercial investments - find, contract, partner or seller carry?
3. Internet Based Business - Plan, delegate to experts, manage and grow business
Internet business and Commercial has the biggest bang potential no doubt as the rehab biz is just the means to get into Commercial. But, the internet business, would provide the ends itself.
You guys are the experts as you have all been successful in one of these areas.....I would like your opinion......I will choose my path and report my results as I go along!
Now, what would you do?
Hawk
Everyone
I very much appreciate the discussion on this topic....is real estate fastlane....that has become which is faster/better....real estate or start a business (preferably internet). This is EXACTLY what has been my roadblock!!! You see, I am a full time employee who works an awful lot...and basically has a job where I do not have set hours (on call all the time). With such a limited amount of time and without knowing my schedule from day to day it is difficult to choose my exit plan.
My options are as follows:
1. Start with single family residential flips (buy low, rehab and sell): I will do this to generate capital to invest in commercial properties (mh parks and/or apartments). I know the real money and appreciation is multiplied with more units. I have helped remodel certain parts of my homes but have never done a rehab before, so working with contractors, etc will all be new to me and there will be a learning curve. It may take more work and time at first, but it is eventually able to be scaled to a certain degree if you replicate your rehab materials/workers/etc.
2. Start with commercial deals. I am mostly interested in investing in MH parks and apartments....mostly MH parks though. But, what is holding me back? CAPITAL! If I found a solid deal on a 80 lot park for say $800k, where am I going to get the money to put down...160k or do a seller carry back for $80k...so my down stroke is still $80k. These are the deals that you can only find one deal and you are out of the rat race....JUST ONE....and I know this. Do I go straight into this and try to find one deal and partner with a money partner?? It seems to make sense to me...why play small ball if you know its just a means to an end? Im ready now.
3. Internet based business. I have a pretty good idea of a business that could definitely be scalable and which would benefit a whole lot of people. It will be based off a technology that is soon to explode. I can see the benefits and how it would work, but of course i HAVE NO Internet experience or website building experience. I would not even know who to approach to help me launch the site. I do not need to know everything about websites and marketing....as I can hire people to help me with that....but I do have a solid understanding of the underlying players on the business side of things. At the same time, I have a couple of acquaintences that do have some MAJOR successes with starting, running and selling internet companies to conglomerates that take them public. Do you approach those friends right away and say....hey, I have an idea....or do you try to develop idea and then approach them?
***With my limited free time and unscheduled work commitment***the internet based business is attractive because I can work on it from my home...at any time....anywhere...so it will fit with my schedule. The rehab business would demand more outside time/travelling/managing from different areas...so it would be hard from that viewpoint. The commercial business could be worked from home in terms of marketing...evaluating deals....offers....etc until it came time to do due diligence on the parks....then I would have to travel and spend alot of time in the park and looking at the financials/inspections/etc.
FOCUS - I am looking to determine which path to take. Once the decision is made, I will focus 100% of my allocated free time on the project. What do you say?
DO I
1. Rehab business - find, fix and sell?
2. Commercial investments - find, contract, partner or seller carry?
3. Internet Based Business - Plan, delegate to experts, manage and grow business
Internet business and Commercial has the biggest bang potential no doubt as the rehab biz is just the means to get into Commercial. But, the internet business, would provide the ends itself.
You guys are the experts as you have all been successful in one of these areas.....I would like your opinion......I will choose my path and report my results as I go along!
Now, what would you do?
Hawk
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