Wednesday, July 6, 2011

A Big Decision

As mentioned in the previous post I am a licensed real estate agent, and this was my full-time career for 4 years after college.  Then an opportunity fell in my lap for a job at a local college.  A CONSISTENT PAYCHECK!!!  No more depending on commissions that may or may not work out!

Unfortunately, this also limited my time with the rental business, cut time available to work on my properties, and I had to cut most of my real estate sales opportunities.  After 2 or 3 years at the college it became very apparent that I may be good at working with students and helping those interested in college, but I have no passion for it.  My passion is my real estate business and the idea of being my own boss.

Yes, starting your own business is a very risky, stressful, and often a religious experience.  However, I have the unwavering support of my wife, and the experiences and lessons my father has learned over the years (he is also in the rental business).

Knowing all of this has led me to a decision I have been wanting to make for a while now.... Do I stay working for a small, constant salary, or do I jump off that cliff called "my own business" with no bottom in sight in hopes of landing on something soft, standing on my two feet, without shattered legs and spine (metaphor, of course)?

I have chosen the cliff!  I do like adventure afterall (as you can see by my love for mountain biking).  This will most definitely be an adventure. 

I'm known to worry and stress about things, and I will probably continue to do so with this decision, but overall I truly believe I will be happier.  Yes, I may have to give up some dinners out on the town and a vacation or two, but it WILL pay off many times over the other option.  If you disagree don't tell me...let me live in the moment for now.

I will be saying goodbye to my full-time job at the college on August 31st.  I will update you on my mental status at that point.

Tuesday, July 5, 2011

A Little Background

I started in the residential rental business in 2007 at the age of 25.  It all began with the purchase of two little houses I found out about strictly by luck.  Thanks to the fact I was also a fairly new real estate agent, aka independent contractor, I could not get financing (it's especially hard to get financing when buying an investment property, on top of trying to prove income for the previous 2 years).  So, in comes dear ole dad...my first lender.

Now I own 6 rental houses (all with mortgages, but all stay rented).

I won't bore you with the details of the last 4 years, but I will say I have dealt with a wide variety of issues...one or two of which people that have been in the business for decades have not experienced.

There have been perfect tenants who have been renting from me since the beginning with no problems, and tenants that have disappeared in the dark of night with no warning.  There have been tenants that I tried to help as part of a church charity (that blew up in my face quickly), and there have been tenants I've had to kick out because of drug issues and complete stupidity...then they thought I would give them a good reference at the next place they rented.  Can you believe that?!?  I've seen many different personalities in 4 years, but thankfully most have been good.

This brings me to one of the biggest and most helpful lessons I have learned so far:

ALWAYS have an APPLICATION along with the LEASE!!!  A simple signature on the lease won't help if they disappear.  Get all the information you can!

Ok, I promise future posts will be shorter.