Afraid to Take the Risk

[nikitakolata]

I'm not sure what category to post this in, but maybe someone here can give me some advice...

I am so sick of my job, I just can't take it anymore. I've asked to work from home and my request for a trial period of doing so was denied. I feel trapped.

I really don't want the 4HWW lifestyle that I think most people typically do. I don't enjoy traveling and have very little desire to do it. I do love my big, expensive house and I really don't want to give it up. Houses, decorating, real estate, and hosting people are my passions. I'm a creative person and I love working with my hands. A muse like what Tim talks about in 4HWW would be great because it would free my time, and I'd love that, but what I really want to do is flip houses.

The problem is that I am terrified of taking the financial risk that flipping requires. I just can't get over the hump and just do it. I also don't feel like I'll have time to do it if I'm still stuck in this stupid office 40 hours a week, but I don't think I can leave the comfort of a steady paycheck and take a huge financial risk at the same time.

I can't come up with a decent muse to save my life, though I've been trying! I have an idea that in theory should work for me, but what if I lose my shirt financially in the process?

Where do I go from here?

[Sven]

Well, you have given us a lot to reply to. In fact it is too much for me.
And I'm sure it is too much for you too.

Can you condense this post in to a quarter of the volume? Leave out the solutions you have thought of. That is not just because I am lazy (which I am) it also focuses you on what is the most important in this stuff. And the allow me and us to focus on that too.

After that we can expand it in to more of a solution

[nikitakolata]

I edited the original post down a bit. The main thing is that I am afraid to take the financial risk involved in flipping real estate. I am confident that I would be good at it, and I think it is possible to be profitable even in a down market. But, I just can't get over the fear/risk. I don't know where to go from where am currently/how to get where I want to be (which is out of this dammed office).

[webgal]

Can you start with something small?

[networkmemetics]

The first thing you need to do is change your mindset. You are full of fear and doubt.

Remember how you felt after reading the 4HWW? Pretty good? Pretty Excited.

Your first order of business should be developing a system or plan to create and maintain a positive state of mind free from fear and doubt.

Only you can change your mind and help yourself.

[Sven]

Ah, way better!

It is clear that you need the change. It is also clear that you need to do it sort of together with your husband. I mean, he needs to be supportive so sell your concept to him too.

I would like to flip houses too but haven't got the funds available. Do you? One thing with business is that if you have a good plan, the funds ARE available, you just need to find them. As Webby said, is there a way to start small? I have thought of turning non selling houses around for a share of the profit, or even for a fee. But a realtor told me there is no real market there, people with non selling houses just want to get ridd of it and lower their price.

But you may be able to find a similar way...
It may help if you feed your flame instead of being miserable. Visit houses that are for sale, things like that?

[nikitakolata]

Well, I do feed the flame quite a bit... I recently got my brokers license and I've set up an LLC to sell real estate part time. I like it a lot, but so far it just isn't profitable enough to replace my day job. I get to look at lots of houses though, which is fun.

My husband will go along with anything to make me happy (he's good like that), but I don't want to cause some sort of financial crisis for us. We both had excellent credit before getting married and I'm certain we wouldn't have any trouble getting financing. I have several contacts in that area anyway, from the real estate deals I've done so far.

I'm just really nervous about taking the first step and filling out a loan application. I'd love to find an investor to split the profits with, if I could. I'm very confident in my personal abilities, but still, we're talking about hundreds of thousands of dollars, and that scares me! I've put proposals on a couple of investor networks online, but they want hundreds of dollars to actually make a connection and I'm not sure if they're legitimate or not. Does anyone have experience with things like that?

Obviously I need to just do it, but it is scary. I'm telling myself that if I get the right house, do the work well, and price it right, it will sell and I'll make money... now I just need to work on believing it, I guess.

[charliedavis]

Aw I feel for you. Sounds like you need to learn to take some risks first. How about trying some indoor skydiving or something, learn to let go?

I have no relevant experience and can't offer any practical help, other than good luck and best wishes. Sounds like you have a supportive OH which is great news. Nothing's stopping you but you!

[TimWieneke]

Nikki,
Drop me a line. I've been land lording and flipping houses for a couple years now (there is a flip market, it's just different). There are some plus sides and minus sides to it but you do need to read my last post here and think for a long time about whether or not you really, truly want real estate: http://fourhourworkweek.com/vBulleti...ht=real+estate

Realize that with flipping a house you are taking on a decrease in your monthly cash flow for a fixed rate of return at an undetermined later date. Are you in a financial position to handle that kind of stress to your monthly cash flow?

Fear is not a bad thing. It gets us to think clear and critically.

Tim