My life changing decision – Advice on the next steps in the PLAN

[Sid23]

You’ve heard me belly-aching long enough about the insane cost of living in my area and I am finally doing something about it.

After months of reflection and discussion, my wife and I have made the decision to leave the San Francisco area and move to a cheaper midwest city. We've already decided on where, and her family is there, mine is nearby, so it works well for us.

As you can imagine, there a million factors that go into a decision like this and I won’t get into that here, but I was hoping for some feedback on one part of the decision.

My long term goal is passive income and a net worth that supports a flexible lifestyle that includes a mix of working (to keep the mind sharp), but also plenty of time to spend with family, on hobbies, on travel, etc. I’ve realized I don’t know exactly “what I’ll want†in 10 years, but I know I need to create a plan to achieve financial freedom as quickly as possible. Once I get there, I know I’ll be able to see further.

I need advice on my financial freedom plan.

I’ve worked as a project manager for the past 5 years for a real estate development firm. I have a fair amount of real estate knowledge. I’m certainly not an expert though.

I’m trying to figure out what the smartest path is for me. My wife and I have $65k in debt, so I need cashflow from Day 1. Unless I figure out an extremely creative idea, I’m most likely going to have to start with a “day job†and start whatever else I do on the side.

Here are the options as I see them:

1) Get a job in real estate development and focus on using my expertise to become a principal in a development firm as soon as possible. I’ve spoken to many developers in MN and it appears my 5 years of Bay Area experience will go along way there. My goal under this option would to be a principal in 5 years or less. That would make me an owner and give me a cut of all deals the firms does. There is BIG money to be made this way, but that is "eventually."

2) Get a job in real estate development and start a real estate wholesale business on the side. The goal here would be to get the wholesale business to a point where I’ve paid down some debt and acquired some capital to begin doing my own rehab deals on homes (ala JScott). I would then do rehab deals and continue to get bigger and bigger until I had the means to acquire and rehab a big deal (apartment prob) or do my own development deals. The downside of this plan is that most development jobs are pretty intense and don’t leave a lot of “free time†outside the office.

3) Get a crappy job that covers the bills, but is maybe only 40 hours a week and go full steam ahead on the wholesaling idea, etc. This would give me more time to work the side business.

I’ve been having the nagging feeling maybe I’m shooting “too†low. Granted, with the debt, I can’t spend the next year working full time on a development deal without income, especially given the current market.

But I can’t shake this feeling that I should be thinking bigger and not starting with wholesaling homes. I'm not sure this is true, but it feels like I’d be taking a “step down.†I've managed two deals with total budgets of over $20,000,000. In 5 years, since I want to be doing my own big deals, I feel like I’d have more connections and better contacts in the real estate community if I was working in development (even though it would be for someone else for the time being) than if I started small on my own wholesale/rehab deals.

Maybe that is just my own issue that I need to work through. I’m not sure.

As always, I’m appreciate to the fastlaners here for any advice / comments you have to offer.

Much thanks,
Sid23

 

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[Russ H]

Si: Nz mogi djephoph fidotoup – Efwodi up vji piyv tviqt op vji Q

Tof-

Huuf up zua gus veloph coh tviqt! Ietz vu tez, jesf vu fu. :vjanctaq:

Esi zua huoph vu ci mudevif dmuti vu e coh dovz op NP, moli Noppiequmot? Us puv? (ietois vu neli coh duop op cohhis dovoit og zua jewi e C&N kuc).

-Satt J.

 

[Sid23]

Si: Nz mogi djephoph fidotoup – Efwodi up vji piyv tviqt op vji Q

Zit, xi'mm ci op Nqmt.

 

[kwerner]

Si: Nz mogi djephoph fidotoup – Efwodi up vji piyv tviqt op vji Q

Tof23 - Djidl uav vji vjsief up Figopoph Zuas Fsien gus jimq xovj zuas qmep.
O'mm vimm zua ov fof xupfist gus ni - siemmz jimqif csoph e muv ug Dmesovz vu vji coh qodvasi gus ni. O en HSIEVMZ eqqsidoevowi vu EVX gus tvesvoph vjot vjsief.
:tny9:

 

[Russ H]

Si: Nz mogi djephoph fidotoup – Efwodi up vji piyv tviqt op vji Q

Djidl uav vji vjsief up Figopoph Zuas Fsien gus jimq xovj zuas qmep.
O'mm vimm zua ov fof xupfist gus ni - siemmz jimqif csoph e muv ug Dmesovz vu vji coh qodvasi gus ni. O en HSIEVMZ eqqsidoevowi vu EVX gus tvesvoph vjot vjsief.

Ni vuu.

Ov effsittif vjopht O xetp'v tiioph/lpuxoph jux vu fitdoci.

-Satt J.