This is fantastic guest post by Omie Ismall who shares his experience as successful entrepreneur. Looking to create your own start-up company from scratch? If so, read this and take notes.
Some years ago, I sat down with one of my Board members to discuss my next year’s compensation. He said something that still sticks with me to this day,
“You know, your salary doesn’t matter because you’ll never build real wealth from it”
I dismissed the thought. After all, I had built a six-figure portfolio by the time I was thirty and carried no debt. My wife and I had lived cheaply since college and had saved 25% of our dual incomes. But my advisor, who was worth tens of millions of dollars, knew firsthand that the truly rich almost all do it via equity not salary.
Sure, anyone that makes a reasonable salary can build up a million-dollar portfolio by simply living below their means and investing the excess cash. That’s much of what we preach at LiveCheap. It takes a long time with great expense control, but it is the safest way to becoming relatively well-off at minimal risk.
But the amount of wealth that can be built up with an equity position can make your best efforts saving salary look like a pittance. It’s not the only way, as I wrote in 5 Ways to Get Rich in Less Than 15 Years, but for those that want to build something and make a fortune, small companies can be a goldmine.
Average Entrepreneur
I’m not talking about the Bill Gates’ or the Michael Dell’s of the world. That’s not your average entrepreneur. Most small company business owners make their money by dramatically increasing their net worth on the path from $1 million in revenues to $10 million.
At $1 million, the company is nearly worthless but at $10 million it could be worth $20 million or more. In fact, once the $10 million mark is crossed, a whole host of potential buyers are quite eager to write you a big check. If you can spend 10 years of your life and grow a company past that mark, you will be wealthier than almost anyone of reasonable income. Sound easy? It’s not.
It took me 18 months to hit the $1MM mark from the day of our first sale, but it took nearly 5 more years to get beyond $5MM. And by most business standards, especially when you are creating an industry, that’s fast.
The small company is a massive wealth builder for a couple key reasons. Running a successful small company forces you to live below your means. Your net worth includes a concentrated position in something that you cannot access: private company stock.
Since you are always exposed to downside risk, you tend to be very hesitant about spending money, as you may need to invest capital into the company at any time. Also, being successful at a small business usually means watching expenses carefully, something that usually is done in one’s personal life too.
When you finally sell, it is treated as a long term capital gain subject to a maximum 15% federal capital gains tax. If it were income, it would be taxed at more than twice the rate. So when the day comes to sell, most entrepreneurs are able to undergo a radical change in lifestyle, although many stay true to their frugal ways.
This varies dramatically from doctors or lawyers who tend to scale their expenses as their incomes grow and don’t fall victim to the common traits of the wealthy. An entrepreneur that has never pulled down more than a $150,000 salary may suddenly have a check for $10 million dollars.
So what’s the catch?
Well, few people want to work hard enough to make it happen. You make less than you would at a regular job and work far more hours, anywhere from 60 to 100 a week, for many years. The stress is enormous and you find out very quickly how hard it is to consistently meet payroll. You’ll expose your family to downside risk that you never had being a regular employee and you’ll put off the things that your family wants to do for years all in the name of the business.
Unlike a regular job, you just can’t hop to a new gig every few years: your employees depend on you and you’re tied to the business. There are dozens more drawbacks but for me they were all overshadowed, not by the ability to build wealth, but rather the ability to build something of lasting value. And that’s probably the reason why most entrepreneurs don’t want to sell their business even when they have multiples of what they need to retire. They love it and become inseparable from it.
Interested in building real wealth?
The following list is a quick gut check for being an entrepreneur and learning how to make a million:
Are you willing to put your family at financial risk in order to grow a company?
Are you willing to put in the late nights and weekends to make it happen?
Do you have core skills that will let you become a great business owner?
Do you know an industry well enough to run with an opportunity?
Do you have a passion for something? – just wanting to make money usually isn’t enough
Do you have enough capital to start the business or make an acquisition?
Will your spouse or significant other support you in your endeavor?
The last point is vitally important. Entrepreneurs often have no idea how much they put their wives (or husbands) through. If you answered yes to these questions, then start heading down the path of entrepreneurship. In 10 to 15 years, you may have more than enough money to retire, even if you don’t want to.
Omie Ismail is the CEO of Live Smart Media Inc. the holding company for LiveCheap.com. Omie is a successful information and software CEO for the past decade having taken eCivis Inc. from concept to become the leading grants management company for governments nationwide. He has a passion for helping people live the good life cheaply and for growing businesses from the ground up. Omie currently splits his time between his family, LiveCheap, and his next venture.
This is part two of a three-part series on how he stumbled into real estate investing at age 23. Be sure to read part one here.
When we last left off, I’d just walked away from my first real estate closing with an eight-unit apartment building and $1000 cash in my hand. I was riding high. Unfortunately, the reality of the situation hadn’t sunk in. Over the next year, my low-income, eight-unit apartment building was going to take me on the most wild roller coaster ride of my life.
Instead of providing a chronological list of events (which may be entertaining, but of little use), I want to share the mistakes I made and the biggest lessons I learned throughout the process. In this second installment, I’ll share the first two mistakes (of what could be dozens). Neither of these first took long for me to realize.
Mistake #1: I Bought a Negative Cash Flow Property Without an Emergency Fund
Yes, it was purchased at a great price. Yes, it did have an amazing amount of potential. But all the potential in the world didn’t change the facts:
7 of the 8 units had people living there.
Only 3 of them were paying tenants.
I needed at least 5.5 tenants paying to break even.
All of the units, even the vacant one, needed repairs before they could be rented.
In theory, I knew all this before I bought the property. I had a detailed plan on how I would attack these issues quickly. I would file evictions the next day on those tenants that had gone months without paying. I would immediately hire people to get the vacant unit up to minimal renting standards.
In theory, it was all going to work perfectly. But then it came time to actually execute the plan.
Coordinating quotes for repairs took longer than expected. Eviction filing took money up front and the courts were running an extra week behind (4-5 weeks instead of 3-4 weeks). Tenants became optimistic about the management change and wanted to work out repayment plans.
In the first two weeks, a storm broke a large front window, and a back door was kicked in (probably by the tenant who lived there, although I had no proof). While insurance would eventually cover the window, both had to be fixed immediately, as it was winter and both were security concerns.
Repairs and maintenance were both accounted for in my number crunching, but the emergency fund that could smooth out an early spike in the averages was nowhere to be found. I didn’t have a penny to my name and the $1000 check at closing went much faster than anticipated. The lack of the emergency fund compounded into several other problems in those first few months.
Mistake #2: I Got Emotionally Involved
Back in part one of this story, I outlined my previous success in building up a property management business. With my client’s properties, I was cool and calculated. I treated management as a business. The property owners were clients. The tenants were…just tenants.
When I signed the dotted line on my own property, the idea was to simply plug it into our property management system. It was going to be “just another set of units.” We’d coordinate repairs, screen tenants, and handle issues in the same ways as we had set-up for our clients. I was incredibly naive.
Without an emergency fund, we needed money. Sure, we had plenty of clients who had also needed money at one time or another. It was my job to set expectations and to advise them on the best course of action. I sought to remove emotions from the equation and ensure that they didn’t make a rushed decision.
I was good at this part of my job and we made nearly no exceptions. If a client had a monetary circumstance where they had to make what we thought was a bad decision, they’d usually cease to be our client. It was that simple.
It’s amazing how quickly exceptions are made when you are the one that needs money.
It happened slowly at first. One tenant, whom seemed genuine, wanted to set up a payment plan to get back on track. It was a weekly payment plan, something we would have never agreed to with our normal clients (too much time commitment). We had two choices in our situation. First, we could head through evictions (2-5 weeks), coordinate repairs (1 week minimum), and re-rent (1-4 weeks minimum). Or alternatively, we could try to squeeze money out of the existing tenants.
The former was the smart, long-term, and business-oriented option. It was the only one we would have offered to our clients. I could have listed at least two dozen reasons why it was the best option. Of course, we chose the latter.
This ushered in a four-month period of various weekly payment plans with not just the one tenant, but with 3-4 other tenants as well. It did help bring in the immediate cash we needed, but we paid a hefty price. Juggling these weekly re-payment plans with tenants who had already proven they weren’t reliable:
Took additional time.
Added large amounts of stress.
Caused problems with repairs (easier to fix up a vacant unit).
Fostered a “but you made an exception with him” mentality among all of the tenants.
Lowered the value of the property (a fresh, consistent tenant would have increased value).
It was a horrible pattern, one that I knew far better than to fall into. I assumed there would be no emotional difference on how I would handle the property…and I was wrong.
These first two major mistakes arose in the first few weeks and months. We haven’t even touched on the issues that came up when we replaced three furnaces and four water heaters. Nor have we revisited the most bizarre moment of the entire year, which involved a split-personality tenant, no less than three fire trucks, and fraudulent accusations of animal cruelty.
For that, you’ll have to wait until next week!
J.D.’s note: Adam doesn’t realize it (because he’s a young pup), but this post makes a New Wave geek like me think of this Culture Club song…
How do you beat the Houston heat? You keep cool with the spa-like amenities you can only find at these apartments.
Houston is one of those cities that has it all. From professional sports teams to museums to a world-class restaurant scene and more, there is a lot to do and see in the city. With so many options for entertainment, it can be easy to spread yourself too thin.
The apartments featured on this list provide residents with everything they need to recharge and reignite their passion for life. Whether you want personal pampering, a silent place to stretch out and reflect on the day or a resort-style pool to relax at, you’ll enjoy peace and quiet at any of the places below, all featuring some of the best spas in Houston, right at home.
Source: Rent. / Aris Market Square
The curated list of amenities at Aris Market Square is designed to provide an experience that feels much more spa-like than it does a traditional apartment community. Because of this complex’s gorgeous elevated outdoor hot tub and pool area acting as the crown jewel of that long list of amenities, residents here benefit from some of the finest relaxation resources in the city.
In addition to the luxurious pool area equipped with ledge loungers, this Market Square Park apartment complex also boasts an on-site library in addition to multiple shared areas complete with comfortable furniture, designer lighting and stellar views of the city. Regardless of how you like to relax, you’ll find what you’re looking for here.
Source: Rent. / Brava
Brava boasts one of the most beautiful pool and spa areas you’re going to find in Houston. With a unique rectangular shape, large, shallow ledges and poolside lounge chairs sitting on turf, it’s safe to say stress won’t find you here. If you’re not the pool type, you’re still in luck. Right next to the pool you’ll find a serene firepit area that’s perfect for meeting neighbors or reflecting on the day.
This Theater District complex also has one of the best spas in Houston for four-legged residents. Complete with two Great Dane-size bathtubs and a couple of wall-mounted, high-powered dryers so you don’t ever have to deal with that wet dog smell in your apartment ever again, your dog may actually look forward to bath time here.
Source: Rent. / Drewery Place
The pool area at Drewery Place looks like something straight out of a five-star resort. With loungers as far as the eye can see and a covered gazebo area, this is an undeniably calming place to kill a few hours. Whether you’re a poolside reader or more of a float-on-your-back-and-forget-the-world-type, you’ll feel at home at this stellar on-site pool.
In addition to the spa-like pool and cabana area, Drewery Place also has a few on-site retailers that help support a healthy lifestyle. Two of the most notable on-site health-based businesses are Black Swan Yoga and Earthcraft Juicery. Whether you’re grabbing a healthy juice on the way to work or capping off the week with a yoga class, you can do it all at this Midtown apartment community.
Source: Rent. / Arlo Memorial
All about providing comfort and relaxation resources in every area of the complex, Arlo Memorial is an upscale apartment community that caters to an active resident population that also values a little personal pampering. The large courtyard-style pool area is the perfect place to kick back and recharge, soak up the Texas sun and get to know your neighbors.
Located northwest of downtown in Memorial, Arlo Memorial also features an indoor-outdoor lounge area with oversized chess and a ping pong table. The complex also boasts a couple of indoor common areas that are equipped with comfortable furniture and designer lighting.
Source: Rent. / Chelsea Museum District
As the name implies, this Museum District apartment community benefits from a stellar location. Just blocks away from beautiful Bell Park, Chelsea Museum District is a calming oasis in the dense urban jungle. What really separates this complex from the rest is the indoor-outdoor lounge area complete with lush greenery, string lights and comfortable furniture. This is a great place to enjoy a cup of coffee in the morning or conversation at night.
Chelsea Museum District also features a beautiful rectangular pool with underwater lighting, an oversized ledge with fountains and lounges all around it. That’s all in addition to the numerous indoor shared spaces and the indoor putting green. It doesn’t matter how you like to kick back and relax, Chelsea Museum District has what you need to live the good life.
Source: Rent. / Montrose at Buffalo Bayou
What qualifies Montrose at Buffalo Bayou for this list is the view. Undeniably one of the best views of the Houston skyline you’re ever going to find, the complex leverages its location by adorning the lookout areas with comfortable furniture, firepits and a straight-up gorgeous pool.
Speaking of pools, there’s no better place to soak up the sun and the sights than the pool at this Fourth Ward community (check out the image at the top of this article). These outdoor relaxation areas are designed to help stress slip away and allow all the residents of this 224-unit complex the luxury of an on-site escape.
Source: Rent. / Camden Downtown Houston
Situated in the heart of Downtown, the Camden Downtown Houston apartment complex is located just blocks away from the best public space in Downtown Houston to reflect on life or relax after a long day, Discovery Green. Just blocks away from this nearly 12-acre park, there’s always an escape right outside your door at Camden Downtown Houston.
That said, this list is about the private spa experience. Residents at Camden Downtown Houston are lucky enough to experience that every time they head to the bathroom. With soaking tubs, glass door showers and artisan tile work and fixtures, the bathrooms in this upscale complex are second to none and spa-like in so many ways.
Source: Rent. / Camden Highland Village
The circular outdoor spa at Camden Highland Village is a great place to find yourself after a tough workout, at the end of a long week or smack-dab in the middle of a lazy Sunday afternoon. With enough distance away from the pool, this serene space blocks out stress and helps residents slip away to a better state of mind the second they slide into the warm waters.
Located west of Downtown in Afton Oaks, this upscale apartment community boasts an on-site nail salon, a library with soaring ceilings and a dog spa with a deep tub and wall-mounted dryers. If you’re looking to enjoy a laid-back lifestyle at home, look no further than Camden Highland Village.
Source: Rent. / REVL Heights
The mid-century modern-inspired library at REVL Heights is truly one of the most relaxing places in all of Houston to kick back and crack open a good book. With an aesthetic that asks you to step back in time a bit and disconnect from the stresses of the world, the wood-filled library at this Woodland Heights property is as calming as it is cool.
REVL Heights also boasts a large rectangular lap pool, a covered outdoor lounge area and an indoor games room with ping pong, shuffleboard and more. Whether you want to meet more people in the building or just feel like breathing in the Houston air with help from a little shade, you’ll feel at home here.
Source: Rent. / Aspire Post Oak
Tucked away in Tanglewood, west of Downtown Houston, Aspire Post Oak is an undeniably calming place to call home. With an open-air hammock area accompanied by an outdoor kitchen, good luck stressing out while you kick back and relax and enjoy the lights of Houston.
Beyond that, Aspire Post Oak also provides residents with multiple indoor and outdoor communal lounges, a spin studio and a thin rectangular pool that looks more five-star resort than it does apartment complex. Whether you’re a sun soaker, a poolside lounger or anything in between, opportunities for relaxation abound at Aspire Post Oak.
Have it all with the best spas in Houston
Houston is a big and busy metropolis. Because of this, it can be hard to unwind and unplug in the midst of all the hustle and bustle. If you’re not lucky enough to call one of the apartments above home, that is. Find the spa-style amenities that fit your lifestyle best and start filling out that application today.
Featured image source: Rent. / Montrose at Buffalo Bayou
Save more, spend smarter, and make your money go further
Maybe you didn’t hit the mega-millions jackpot, but you’ve come into some extra cash. It might be tempting to go out and indulge, but there is probably a better way to spend that money.
In the second installment of this 3-part series, Jennifer Openshaw, America’s Chief Consumer Advocate, Wall Street Journal columnist and CEO of Family Financial Network, is back with advice on what to do with $10,000.
From building an investment portfolio to purchasing reliable transportation, see what she says about how to make sure your financial decisions have a positive impact on your long-term financial well-being.
If you are just catching up on the series, check out Jennifer’s infographic on what you should do with $1,000. The ideas range anywhere from tuning up your car to making a few minor home improvements — even getting certified in yoga instruction.
Click on “Launch Infographic” for an expanded view.
Save more, spend smarter, and make your money go further
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One of the advantages of apartment living is the community grill. It’s a great place to meet others while you’re cooking out. With football season well underway, grilling out is a favorite weekend pastime.
While you’re meeting new neighbors at the grill, you certainly don’t want to do anything to tarnish your reputation or become known as the “bad guy / girl at the grill” in your building.
Here are a few guidelines to common courtesy at your apartment community’s common grill.
Plan ahead
Reserve the grill and stick with the timeframe assigned to you. It’s rude to reserve the grill at 3 p.m. and then not show up until 3:15.
Don’t monopolize
If it’s a big game day and you know everyone will want to grill at the same time, perhaps you can offer to share the grill. If it’s not large enough to share, then be sure to limit the amount of food you’re grilling. This isn’t the time to grill a month’s worth of meals, or hog all the available counter space.
Clean up
As soon as you’re finished, start cleaning. Another person could be eager to use the grill and they certainly would appreciate a clean grill. Even if another person isn’t waiting, it is your responsibility to clean the grill for the next person.
Share the basics
If you see that someone needs a little something you have – seasoning, foil, charcoal – by all mean, offer it to them if you can spare it. This kindness goes a long way to making new friends or improving your reputation (and you may need the favor returned someday).
Related: Four essential grilling tips
Related: Barbecue like a pro
The grilling area in your apartments is an amenity that really boosts quality of life, while providing a way to meet your neighbors. Being kind and respectful at the grill is always a good idea.
That was a phrase that my father continually beat into my head harder than Lars Ulrich could pound on his bass drum (in case there is a generation gap, Lars is the drummer from the rock band Metallica).
Even though on average college graduates do earn more in the long-run and online colleges are bringing down costs, the current job market is saturated with sustainable careers that don’t necessarily require a degree.
Taking a closer look, it seems a major shift in employer priorities is occurring in certain fields, such as manufacturing and information technology (IT), where soft skills and on-the-job training are deemed more beneficial than a formal educational background.
Individuals bringing these resources to the table are now in high demand, especially since many companies now offer assistantship programs or even paid training for high-achieving candidates.
In this day and age, it just might be more about the right skills than the right schooling.
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25 Highest Paying Jobs Without A College Degree
Margin Department Supervisor
Air Traffic Controller
Automobile Service Station Manager
Real Estate Broker
Landscape Architect
Lead Carpenter
Director of Security
Elevator Mechanic
Cable Supervisor
Flight Services Manager
Freelance Photographer
Personal Trainer
Funeral Director
Commercial Pilot
Truck Driver
Nuclear Power Reactor Operator
Firefighter
Emergency Medical Technician
Railroad Jobs
Medical Coder
Information Technology Technician
Criminal Investigator
Brick Mason
Postal Service Worker
Pharmacy Technician
If you have decided to not attend a four-year college right out of high school, or are looking for a fresh start at a new career path, 25 of the highest paying careers with virtually no degree are featured below.
Looking for a fun job that pays well? Scared that the cause of unemployment may be growing? Sign up for free and see who’s hiring in 2023 at www.FlexJobs.com.
Disclaimer: While there are definitely some good paying trade jobs on this list, I still think having a college degree is worth it. Yes, tuition is high and will continue to rise, but the experience, connections, and mindset that college offers are invaluable. Now on to the jobs…
1. Margin Department Supervisor
Average Salary: $74,799
Prior Education: A finance or accounting degree is not required, but knowledge of all basic processes is needed.
On-the-Job Training: Moderate to high training and/or shadowing.
Job Description: A Margin Department Supervisor oversees a company’s credit department, which manages customer credit accounts and approves or denies credit to customers.
As would be expected, approving or denying credit sometimes involves unhappy customers, so you’ll need strong communication and negotiation skills for this role.
Since the scope of the job requires mathematical calculations as well as debt analysis and recognition of accounting principles, make sure you are confident with these basic processes. Some companies may increase pay if you have a degree under your belt.
You’ll also primarily be in charge of ensuring all department employees adhere to federal policies and regulations.
2. Air Traffic Controller (ATC)
Average Salary: $124,540
Prior Education: A college degree is not required, but the nature of the field is very competitive where experience is highly valued. A combination of progressive work experience and formal education is generally preferred.
On-the-Job Training: Rigorous training and testing is required.
Job Description: An Air Traffic Controller is required to pass rigorous testing by the FAA, which includes health checks, as well as mental stability tests. You must initiate the testing process before age 31.
Being an Air Traffic Controller has been voted the most stressful job in the United States for many years because of what the job entails on a daily basis. Air traffic controllers also often work night shifts, weekends, and even holidays.
A typical work day may include monitoring and directing in-air traffic, including routine take off/landing. Sometimes in-air emergencies must be handled, hence the high stress associated with the position.
Strong organizational and problem-solving abilities along with excellent communication skills are highly valued in this role. It does help to know someone already in the business to land a job in this field.
3. Automobile Service Station Manager
Average Salary: $45,204
Prior Education: High school diploma or equivalent. Some employers may prefer a Bachelor’s degree in management or similar field and/or several years of experience in automotive service management.
On-the-Job Training: Most can obtain this type of position by working one’s way up the ladder through on-the-job experience. Obtaining certification may also be required.
Job Description: Essentially, the role of the Service Station Manager is to run the day-to-day operations of a gas station.
The scope of the work includes setting the gas prices for the day, scheduling and training the rest of the employees who work at the station, ordering new merchandise to keep the shelves stocked, ensuring service station safety, as well as being the direct manager for the other employees.
Some skills that would be helpful in obtaining this job would be good personal skills as well as some managerial and accounting experience.
4. Real Estate Broker
Average Salary: $56,730
Prior Education: High school diploma or equivalent. However, a college degree in finance or related field may prove beneficial.
On-the-Job Training: Even though you must take a couple of classes to obtain your certification, these courses are much less of an expense compared to financing a college degree. Licensure requirements typically vary from state to state.
Job Description: To become a real estate broker you will still need to take a couple of classes to become certified. But still, these courses are still much less of an expense to you compared to financing a college degree.
You will be trying to sell houses as well as filing the paperwork for the transactions. In addition, you will help customers with their loan agreements.
However, if you are considering this career, you should be very friendly and have flexible hours since you will most likely be working on your customers’ schedules.
You typically are self-employed setting your own hours and working on a commission basis. Good negotiation skills along with market research experience will prove helpful in this role.
5. Landscape Architect
Average Salary: $65,760
Prior Education: Typically a minimum of a Bachelor’s degree in Landscape Architecture is preferred. An internship experience is highly encouraged. This job may require you to take some classes at a community college on horticulture as well as landscape design, but these types of courses are not required.
On-the-Job Training: With this career, you will have the option of whether you would like to be becoming certified or not. However, if you are certified, you will have access to larger contracts and a wider scope of work. Most states do mandate licensure, though, and the requirements vary from state to state.
Job Description: If you do not mind getting a little dirty and working hard for a living, then this might be a good career for you. Typical job duties include designing functional yet attractive outdoor spaces and parks for a variety of clients.
Landscape architects spend a large portion of their time creating blueprints and preparing cost analysis reports. You would also analyze environmental conditions for projects and even participate in restoration initiatives.
Make sure you have a good eye for design and a strong work ethic to consider this career. Understanding GIS technologies and project management is a must.
Here’s a how-to guide for starting your own lawn company and making some serious money (in turn being able to and saving some serious money, too!).
6. Lead Carpenter
Average Salary: $51,150
Prior Education: High school diploma or equivalent. Most Lead Carpenters begin their careers as skilled apprentices.
This job requires a high amount of experience in the field either through attending a trade school to master technical skills or by being an apprentice to a lead carpenter.
On-the-Job Training: By going to trade school you will actually have to obtain some type of certification, possibly making you more marketable in the field.
Often training includes learning how to expertly handle a variety of power tools, such as power drills or saws.
Job Description: Serving as an apprentice would most likely land you in a job replacing your teacher. Either way, you can be very successful in this type of career if you enjoy working with your hands.
Although highly dependent on the type of industry, job duties may include analyzing construction plans, creating project timelines, and managing and overseeing team production activities.
Carpenters often work in both indoor and outdoor settings and may need to eventually join a union.
7. Director of Security
Average Salary: $78,608
Prior Education: Typically a minimum of a Bachelor’s degree in Computer Science or related field is preferred along with years of experience in related positions.
In reality, this job will involve starting off in an entry level security position before working your way through the ranks to become the Director of Security.
On-the-Job Training: You might also be required to pass a security guard training program, but this will most likely be paid in full by the employer so the actual educational cost to you would be zero.
Depending on the company you will work for, you might also be required to pass a background check as well as some minor health inspections.
Job Description: A typical work day would include reviewing and implementing security department policies along with ensuring relevant local, state, and federal laws and regulations are adhered to. This role may also involve actively participating in training programs with the security staff.
Some good skills to have for this type of job would be some above average physical characteristics, as well as integrity to always choose what is right.
This position often involves being on-call for any emergencies after-hours, so make sure you can fulfill this requirement.
You can also try going the Police Officer route. If you decide to pursue this career, make sure you study with the Police Exam Guide.
8. Elevator Mechanic
Average Salary: $77,806
Prior Education: High school diploma or equivalent.
Just like the Lead Carpenter job, this job will most likely be acquired through a trade school degree, assistantship, or lots of years of experience. Being an elevator mechanic does have a couple more stipulations, though.
On-the-Job Training: Moderate to high training; may need to attend trade school to contract with large corporations.
Job Description: Lots of major corporations will require you to have a license and work for an insured company, which in this case would then force you to go the trade school route so that you could work on these large corporate jobs.
A typical work day would include repairing elevators and fulfilling routine preventative maintenance when needed. Installing and repairing control systems or adjusting and inspecting safety controls are other common work tasks.
Elevator mechanics should be able to identify and troubleshoot issues quickly and efficiently, and having a working knowledge of elevator mechanics is needed. Most of this industry is unionized, so make sure you are willing to join a union before entering this line of work.
9. Cable Supervisor
Average Salary: $51,112
Prior Education: High school diploma or equivalent. However, technical school education or an internship/assistantship may prove beneficial.
On-the-Job Training: A good way to acquire this type of a position is to either apply for the job with some type of managing/scheduling background or to apply for an entry-level position and work your way up by knowing the business.
Job Description: This career would be in a managerial-type setting. You would be responsible for overseeing the maintenance as well as installation workers setting up cable boxes and internet connections.
Typical work duties would also include interpreting cable specifications, troubleshooting issues with cable equipment, and also hiring and training any new cable technicians.
You would be responsible for the scheduling aspect as well as holding the workers accountable to be where they need to be.
10. Flight Service Manager
Average Salary: $64,042
Prior Education: Typically a minimum of a Bachelor’s degree in aviation management or related field is preferred. Completing an internship program is highly suggested.
On-the-Job Training: This career would most likely be obtained through lots of on-the-job experience along with obtaining certification if required.
Job Description: You would be responsible for helping schedule flight crews as well as taking care of customer complaints and filing any necessary paperwork.
This job would require great personal skills as well as lots of patience with unhappy customers. Making sure all passengers have the best onboard experience possible is of top priority for Flight Services Managers.
Airlines can be a stressful arena to work in, so if you are considering this line of work make sure you can keep your cool in the toughest of situations.
11. Freelance Photographer
Average Salary: $36,630
Prior Education: No educational experience required.
On-the-Job Training: This career typically involves both self-education and hands-on training through practice. Natural talent and creativity are highly valued in this field.
Job Description: Being a Freelance Photographer takes dedication to one’s tasks, as well as a great eye for artistic detail. This type of career may also require traveling long distances to be able to acquire the right “shot” for the right story.
In a sense, being a Freelance Photographer can take many forms, such as snapping pictures of nature for magazines, or taking pictures of stories for newspapers, or even being a paparazzi-type photographer and searching for the next big celebrity scandal.
To really make a sustainable living in this field, it may prove helpful to complete some basic business management courses, or to attend training sessions on editing or even lighting techniques.
It’s best that Freelance Photographers have good personal skills and can identify and fulfill client needs and/or requests. If you become a really good photographer, you could even sell your photos on Shutterstock to make some extra cash.
12. Personal Trainer
Average Salary: $38,222
Prior Education: High school diploma or equivalent.
This career will most likely require that you are qualified to teach proper physical fitness techniques to clients. Many Personal Trainers have strong backgrounds in nutrition, exercise science, or other related fields.
This certificate is not very difficult to obtain; however, it is relatively cheaper compared to any other type of trade school mentioned above.
On-the-Job Training: Continual through updating or expanding one’s professional certifications.
Job Description: To be successful in this line of work you will most likely want to be a very physically active person yourself, as well as have a passion for this line of work.
A typical work day would include meeting one-on-one with clients to assess their physical fitness needs with the intent of designing an individualized training program.
Personal Trainers also motivate and encourage their clients to reach and even surpass their fitness goals. As a result, good personal and communication skills are a must.
Most Personal Trainers work at gyms, private workout facilities, or provide at-home or virtual coaching services. Some decide to work both inside and outside the home to help facilitate a higher income.
Also, you can try getting your Yoga certification.
13. Funeral Director
Average Salary: $56,850
Prior Education: Educational requirements range from a high school diploma or equivalent to an Associate’s or Bachelor’s degree in Funeral Service Education or related field. Internships are also encouraged.
On-the-Job Training: Licensure is required in the U.S. before taking on a Funeral Director position, and some states may require a certain level of education or the completion of an apprenticeship.
Job Description: You do need some training to become a Funeral Director and possibly certification, but you can eventually make as much as $80,000 a year.
A typical work day would include helping families organize funeral details and complete any corresponding paperwork, such as a death certificate.
Offering counseling to grieving family members and helping to prepare the deceased body for the funeral service are other common duties.
It is important that you be able to handle the macabre, and you do need to have tact and a warm personality since you are dealing with people in difficult situations. Make sure you can accommodate a flexible schedule since visitations and funerals are often on weekdays and weekends.
14. Commercial Pilot
Average Salary: $78,740
Prior Education: High school diploma or equivalent, but most airlines now require a Bachelor’s degree as a prerequisite for employment.
On-the-Job Training: Moderate to high training is involved. Often the first step is to get your private pilot’s license. You’ll get your flight hours up and be more comfortable in the cockpit.
Job Description: Commercial Pilots fly planes for very specific reasons, such as for rescue operations, aerial photography, aerial tours, or charter flights.
Pilots generally evaluate overall conditions of aircraft, communicate with air traffic control, and monitor engines and fuel consumption, among other routine tasks. Being a team player with strong communication and observational skills is also a plus.
You’ll be spending a considerable amount of time away from home, so make sure you aren’t too much of a homebody. Fatigue and jet lag may also be experienced often.
Excellent observational and communication skills prove quite beneficial in this field of work. You can easily make more than $50,000 if you get on as a commercial pilot at the right airline.
15. Truck Driving
Average Salary: $53,199
Prior Education: Typically a Commercial Drivers License (CDL) and/or high school diploma or equivalent is preferred.
On-the-Job Training: Drivers must complete several weeks of on-the-job training.
Job Description: After completing six to eight weeks of training and obtaining your commercial driver’s license, you can make $45,000. Work your way up to becoming a trainer, and you can clear more than $70,000 a year.
Maintaining a clean driving record is crucial. Truck Drivers must adhere to all traffic laws, ensure cargo is secure for transport, and keep all trucks and equipment in good working condition.
Hand-eye coordination, visual stamina, and mental focus are important qualities to have for this type of position.
To become a Truck Driver you need a Commercial Drivers License or CDL. I recommend using both a CDL Practice Test and CDL Test Answers to help you study up so you can pass.
16. Nuclear Power Reactor Operator
Average Salary: $72,384
Prior Education: A degree in a field like engineering is required by some nuclear power plants, but you do not need a college degree to land a lower level operator job. In some cases, all you need to do in some cases is to simply pass the certification test.
On-the-Job Training: Moderate to high training is required along with possible certification.
Job Description: Nuclear power reactor operators manage nuclear reactors, monitoring them and making adjustments as necessary to ensure the safety of the nuclear power production process.
They also have to perform routine maintenance on the reactors and shutdown on very specific systems. Because the job is quite risky and requires very careful attention to detail, it pays quite well.
It also helps to become efficient in the required computer technologies involved in nuclear power plants. Make sure you can handle shift work and long hours.
17. Fire Fighting
Average Salary: $49,080.
Prior Education: High school diploma or equivalent. Any prior training in emergency medical services is a plus.
On-the-Job Training: Completing a physically demanding training program is mandatory along with other certifications.
Job Description: The starting salary for a Firefighter is often just a little more than $30,000, but you can make more than $50,000 a year depending on where you work and whether you reach a supervisory position.
Firefighters must know how to use standard field equipment, such as hoses and ladders, become proficient at providing medical attention to injured victims, and properly handle coming in contact with hazardous materials or wildfires.
Depending on which state you work in, you may need to complete specific training programs, such as high-rise building rescues.
Being a firefighter is a very strenuous and dangerous occupation, and you often must work long shifts and over 40 hours per week. To help you get physically ready for firefighting duty, I recommend you check out Pass the Beep Test, a guide to help you prepare your body for firefighting.
18. Emergency Medical Technician (EMT)
Average Salary: $33,380
Prior Education: Typically a high school diploma or equivalent and cardiopulmonary resuscitation (CPR) certification is required. Completing a postsecondary educational program is common.
On-the-Job Training: Generally there is little to no on-the-job training, but completing levels of certification are more than likely required for most states.
Job Description: If you are about to take your EMT classes to become an EMT, you will be happy to learn that the job outlooks in this field are very promising. However, chances of having a good job in the EMS are given to those who have more EMT certifications (like paramedics).
EMTs are first responders in a medical emergency, assessing victims’ conditions and possibly transporting them to the hospital by ambulance. Often people’s lives are on the line when EMTs arrive on the scene.
The hourly wages can vary from $12.08 (10% of the workforce earns less than this) to $24.77 (10% earn more than this bracket). According to the Bureau of Labor Statistics, as of 2023 the median hourly wages of EMTs was at $17.76 per hour.
19. Railroad Jobs
Average Salary: $59,780
Prior Education: Typically a high school diploma or equivalent is required.
On-the-Job Training: Several months of moderate-level training is standard. Obtaining certifications may also be required.
Job Description: Do you like trains? Do you enjoy traveling? If so, a railroad job might be just for you.
A variety of positions are available, ranging from engineers and conductors to switch operators and management positions. Railroad jobs give you a chance to see new parts of the country while getting paid very well in the process.
Since trains operate every day of the week, expect to work nights, weekends, and holidays in all kinds of weather conditions.
Hand-eye coordination, visual acuity, and communication skills are valuable assets in this industry. If you’re looking at getting a railroad job, here’s a comprehensive guide that shares how to get a job in the railroad industry.
20. Medical Coder
Average Salary: $45,035
Prior Education: Typically a high school diploma or equivalent is required, while an Associate’s Degree is sometimes preferred.
On-the-Job Training: There is little to no on-the-job-training since specific training programs are generally completed as a prerequisite for employment. Completing certifications may also be required.
Job Description: The healthcare industry is currently booming, and you can expect it to continue to rise with the Baby Boomer generation getting older. There aren’t enough doctors and nurses available.
Behind all of the doctors is a team of medical coders typing up detailed reports on what procedures you had done and billing you or your insurance company the amount owed.
According to The American Academy of Professional Coders (AAPC)’s 2022 salary survey, on average medical coders without certification bring home approximately $47,200 per year. However, becoming certified as a Certified Professional Coder (CPC) is highly sought after to seek higher pay.
21. Information Technology (IT) Technician
Average Salary: $41,305
Prior Education: Associate’s degree, Bachelor’s degree, or certificate program in computer science or related field is typically preferred. A degree is usually not required to land an entry-level position.
On-the-Job Training: Little to no on-the-job training expected since some employers require that candidates complete some level of formal training as a prerequisite for employment.
Job Description: There are a number of career paths within information technology that do not require a college degree.
Starting out you’ll probably conduct support calls on a helpdesk and only make $11-13 per hour. As your skills and experience progress and you get more experience you can easily make $50,000 to $70,000 per year as you get into systems administration and network engineering.
Typically IT technicians diagnose and repair computer malfunctions and install and maintain network systems. Get started on your IT career path by getting some online computer training and certification.
22. Criminal Investigator
Average Salary: $58,582
Prior Education: High school diploma or equivalent.
Several years of prior experience in law enforcement is encouraged. Some employers do require a minimum of an Associate’s degree in Criminal Justice or related field.
On-the-Job Training: Moderate on-the-job training is expected. Most states do require standard licensure for criminal investigators, along with a license to carry an armed weapon.
Training typically involves learning how to properly gather information and conduct remote surveillance, among other routine tasks. Reconstructing accident scenes is also a field-specific skill learned.
Job Description: Criminal investigators are the individuals tasked with interviewing and collecting evidence for specific cases.
Depending on the case at hand, you may be performing background checks, verifying facts and statements, conducting surveillance, searching online records, or gathering information on persons of interest.
You may even need to testify in court or make a physical arrest. This job is fast-paced and often involves working odd hours, weekends, and holidays.
Important skills to have include resourcefulness, inquisitiveness, and integrity. Being able to stay cool, calm, and collected during criminal investigations is integral to performing well in this role.
23. Brick Mason
Average Salary: $42,900
Prior Education: High school diploma or equivalent. Many masons also complete extensive apprenticeship programs or specific coursework before employment.
Any previous experience as a construction laborer is acceptable.
On-the-Job Training: Learning the trade is often accomplished through completing apprenticeships and/or on-the-job training shadowing experienced masons.
In these apprenticeship programs, promising candidates learn standard masonry practices, such as construction basics, measurement calculations, and safety procedures.
Job Description: Generally a brick mason uses bricks to construct walls, fences, and other structures.
A typical work day would include reading blueprints, gathering required materials, cleaning surfaces with power tools, and lifting heavy materials for proper alignment.
Brick masons often work long hours in a fast-paced and strenuous environment where becoming injured on the job is common. Protective gear, such as safety glasses, should be worn at all times.
Construction deadlines must be met, so brick masons often work indoors and outdoors in all kinds of weather. Important skills to have for this role include hand-eye coordination, physical strength, and attention to detail.
24. Postal Service Worker
Average Salary: $57,260
Prior Education: High school diploma or equivalent. An excellent driving record is a must along with a clean track record.
On-the-Job Training: There is some short-term on-the-job training involved, including passing a written exam, road test, and other standard background checks.
Job Description: Postal service workers generally collect, sort, process, and distribute mail in a timely manner. It’s their responsibility to make sure mail is delivered seamlessly.
They also sell common postal products, such as stamps, and obtain any customer signatures for certified mail.
Important skills to have for this role include a strong focus on customer service and attention to detail.
25. Pharmacy Technician
Average Salary: $31,750
Prior Education: High school diploma or equivalent. Complete a postsecondary program in pharmacy technology before employment is acceptable.
On-the-Job Training: Moderate on-the-job training is required, which typically involves passing an exam or specialized program.
You may also need to learn how to operate automated dispensing equipment, and some states may require certification.
Job Description: Pharmacy technicians are responsible for correctly filling, packaging, and labeling customers’ or health professionals’ prescriptions.
You would also be involved in organizing inventory, processing insurance claims, and accurately entering patient information into a computer database.
Having excellent organizational, listening, and customer-service skills is highly valued for this role.
Pharmacy technicians may be required to work nights and some weekends. Make sure you are physically fit enough to spend most of the day on your feet fulfilling orders.
Is Attending College Overrated?
There’s one thing I know for sure – college is extremely expensive! As the College Board highlights in a recent survey outlining changes in college tuition between 2012-2013 and 2022-2023, tuition is on a steady upward climb that shows no signs of letting up.
In 2023, public four-year in-state tuition is $10,950 for full-time students. This was a 1.8% increase from the previous college year.
There are a vast amount of careers that you can obtain without an actual college degree, but most require either a trade school certification or just time on the job and working your way up through the ranks.
“Formal education will make you a living. Self education will make you a fortune.” – Jim Rohn
Looking for a job? Scared that the cause of unemployment may be growing? Sign up for free at www.FlexJobs.com and see who’s hiring today!
FAQs on High Paying Jobs with No Degree
Are there high paying jobs with no degree?
Yes, there are several types of jobs that do not require a college degree but can still offer competitive salaries. Some examples include web developers, software engineers, medical coders, sales professionals and IT support staff.
What qualifications do I need for these jobs?
What qualifications do I need for these jobs? The requirements for these types of positions vary depending on the job and company, but often include certifications or specialized training in the field you are interested in pursuing.
In addition to technical skills, employers are looking for individuals who demonstrate strong problem solving abilities, excellent communication skills and an understanding of customer service principles.
Q: What are some high paying jobs that don’t require a college degree?
Here are some examples of high paying jobs that don’t require a college degree:
-Commercial pilots: median salary of $121,430 per year -Detectives and criminal investigators: median salary of $81,920 per year -Nuclear power reactor operators: median salary of $94,350 per year -Power distributors and dispatchers: median salary of $83,020 per year -Real estate brokers: median salary of $61,720 per year -Elevator installers and repairers: median salary of $80,180 per year -Web developers: median salary of $73,760 per year -Petroleum engineers: median salary of $137,170 per year -Computer network architects: median salary of $112,690 per year -Medical and health services managers: median salary of $100,980 per year
Are there any high paying jobs that don’t require a college degree, but do require experience?
Yes, there are many high paying jobs that don’t require a college degree but do require experience. Some examples include:
-Commercial pilots: typically require several years of flight experience as a co-pilot before being considered for a pilot position. -Detectives and criminal investigators: typically require several years of experience in a related field, such as a police officer or federal agent. -Nuclear power reactor operators: require extensive on-the-job training and experience. -Real estate brokers: typically require several years of experience as a real estate agent before becoming a broker. -Petroleum engineers: typically require several years of experience in the oil and gas industry before being considered for a position as a petroleum engineer.
When describing his work, famed Catalan sculptor and artist Xavier Corbero explained, “the outcome of anything I do has to be poetry.” A shining example of this ethos is Corbero’s home; an eight-acre, nine building estate on that has taken him over forty years to turn into a dramatic example of living, ever-evolving art. This is a home tour you have to see to believe.
Friends with Salvador Dali and famed for his large scale sculpture displayed the world over, Corbero began working on this home in 1968. He discovered dilapidated industrial buildings on the outskirts of Barcelona has worked for 40 years transforming them into a stunning home, workshop, studio, gallery – a magic labyrinth of art, architecture and beauty. There are a total of 10 beds and bathrooms to welcome guests, as well as a number of studios and workshops, including one beneath the ground. The home regularly serves as a residence for fellow artists staying in Barcelona.
The structures are a mishmash of concrete, often whitewashed in the living quarter, raw plywood, open staircases, manmade caves and soaring arches. It continues to be a work in progress even as Corbero turns 80. In this age of….I don’t even really know how to describe the time we’re living in…I feel like a true passion and such a profound expression of art, life and depth is increasingly rare. I think the following description captures the heart of this place best, “The artist has created a space where creation is immortalized, both as process and as an end.”
Check out this video to truly appreciate the majesty of this house and to hear from the artist Corbero himself.
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photography via zara home, and by Jerome Galland for AD France via yellowtrace. Video by Albert Moya for NOWNESS.
It’s that time of year for festive celebrations! One of the benefits of apartment living is extra spaces specially designed for entertaining. Typically, your apartment community’s clubhouse offer far more room than your apartment ever could, allowing you to expand your guest list and have plenty of space for a fun time. You simply have to discover if you’re talking about clubhouse rentals or reservations . . . and then you’re ready to plan your holiday party.
Ask if there’s a fee or deposit required
Clubhouses or lounge area can sometimes be booked for free by tenants – first come, first served – but clubhouse rentals are also common. You might, however, secure yours for only a deposit. These range in price, but as long as no damage in incurred, your deposit will be fully refunded, and you’ll enjoy the benefits of this amenity without any extra costs. Some places charge a clean-up fee. Be sure to ask in advance so you don’t blow your party budget.
These large lounge areas – community centers, really, are often private, in that they have doors, so that only invited guests drop in. Most provide dining tables, seating areas, kitchen facilities and even a bar area, perfect for spreading out a buffet, arranging a potluck, or setting up a drinks station.
Related: How to Throw a Space-Saving Dinner Party on a Budget and Creating a holiday budget
Ask about decor
You’ll want to find out about décor options. During the holidays, many places have their own decorations in place–that’s great because it can save you some money! If not find out the restrictions. Some may not allow items to be hung from walls, or certain items to be brought into the common areas. It’s also wise to inquire about music/entertainment as well as liquor laws. The last thing you want to do it jeopardize your relationship with your association/building and neighbors.
Related: Things to keep on hand for parties
Reserve in advance
Space is limited, and other people are probably having parties around the same time. Unless you can change the time of the party on a whim, you’re going to want to check well in advance to make sure you can get the time you’re looking for.
Be watchful of the time while you’re there
Similar to the above, there are probably other people going to use the clubhouse in close proximity to you. So, even if you’re having a really good time and never want the party to end, you want to keep an eye on the clock so you can make sure to wrap the party up on time.
Read more: 6 Ways to Prevent Guests From Overstaying Their Welcome
Clean up afterwards
You’re using a public space, so don’t make a mess of it. Parties can be messy, but that just means it’s your responsibility to make sure that it’s cleaned up afterwards, ready for the next person to use it. Not only is it the right thing to do, but if you put down a deposit and left a mess, you’re probably not getting that deposit back.
Find out what’s allowed
There are a lot of possible restrictions in clubhouses, so make sure that you know what they are ahead of time. Some things you might want to get cleared up beforehand:
How many people can be in the clubhouse? There’s always a limit, if only just from the fire department.
Is it considered a public or private space? Can you kick out someone who crashes the party? Does this apply just to the clubhouse, or connected areas, such as a pool?
Can you adjust the thermostat? This might not seem like an issue, but when you have 20 people in a room at 73 degrees, it can get uncomfortable.
Is smoking allowed? Alcohol?
It may seem like a hassle but renting out the clubhouse is often a better place to host a party than your apartment. You get a space made for groups, no one will be snooping around your apartment while you’re not paying attention, and you can move on to planning the holiday party you really want to throw.
Want to know more? Check out 8 Steps to Throw a Holiday Part That’s Full of Cheer or Throw a Great Party in a Small Apartment.
We asked for some of your most horrific moving stories and you came through. We’ve picked our favorite for this round, but we’d love to hear more. If you have a moving horror story that you’d like to share, get social with us on Facebook or Twitter. You might just make our next round!
Moving Truck vs. Apartment Building
“I was living in an economy apartment near a small college. I rented a huge moving truck so that I could get all my stuff in one trip. I backed up a bit too much and hit the building. The entire apartment was moved nearly a foot off the foundation. I didn’t bother asking for my security deposit back.”
The Dead Parrot
“My friend was working as a mover in Boston. He and the occupant went into the bedroom and started moving the bed. When they lifted up the box spring to bring it to the truck, there was a dead parrot underneath the bed. No one said anything about it. When he got back it had mysteriously disappeared.”
A Friendly Chat with the Landlord
“Our landlord came over for a chat about what turned out to be bogus complaints from the neighbors. It got a little heated, and my roommate’s psycho dog went for him and bit his hand. The landlord left muttering about having the dog put down. I came home from work the next day to find all of our belongings on the sidewalk and the house had been bulldozed to the ground.”
Related: Can a landlord not renew a lease?
The Cat Litter Disaster
“When I moved out of my last apartment, the very last thing I moved were my two cats and their litterbox. I manage to get the cats into the car, but when I go to grab the litterbox, a freak heavy rainstorm erupted out of nowhere. By the time I got the litterbox to the car, things had devolved into what I lovingly call “litter soup.” It was BEYOND nasty. I decided on the spot to just wheel around to the dumpster and heave the whole thing in.
So instead of driving to my new apartment, I made a detour to the store to buy a new litterbox. The store I was going to was at the bottom of a big hill. I went zooming down the hill, realizing too late that the bottom of the hill was COMPLETELY flooded because of this freak storm. And my car dies completely. My cats are SCREECHING, I’m covered in the remains of the litter soup, and I’m now outside the car, knee-deep in water, trying to push my car into the parking lot. By the time I got to the store, I was a drowned smelly rat.
I walked in the door, and the cashier said, “Welcome to Kmart… can I…?” and I just said, “LITTER. NOW.” I got myself, the cats and the new litterbox to my new place, but my clothes were so wet they were entirely unwearable, the whole car smelled like cat pee, and my cats had meowed so hard they were both hoarse and sounded like chain-smoking Brenda Vaccaro cats. It was pretty rough.”
The Dreaded Black Ice
“Wanting to get an early start, we hit the road on a November morning before dawn on I-80 through Nebraska. We were in a rental truck with our care on a tow hitch. After about a half an hour, we hit a patch of black ice and did a complete 180 degree spin before coming to a stop in the center median. Luckily, we stayed upright the entire time. No real damage and nobody was hurt, but it was pretty freaking scary.”
More Cat Fun
“We were starting our move to Arkansas and the movers kicked up a lot of dust and cat dander in our old apartment. This led to me having an asthma attack, which I didn’t realize was really bad until the next morning when I had to take a breath between words. I ended up in the ER the day we were to drive halfway there. Monitors, oxygen, the whole thing.”
Related: Best cat names of 2017
The Jackknife Disaster
“I was moving apartments from Seattle to Detroit, towing one car behind my hired moving truck. We got turned around on the rutted dirt roads outside of Cheyenne and jack-knifed the entire combination outside a storage place next to our hotel, at 2am. We found the local sheriff climbing over the rig the next morning.”
See Also: The ultimate moving checklist
We want to hear your moving horror stories! Get social with us and we’ll feature our favorites in Volume 2!
I bought my first rental property in 2010 when the market was much different! I bought a single-family home for $97k that rented for $1,050 a month. I know many people would love to go back to those days but the reality is prices will most likely never be that low again in most markets. While I bought a single-family home for my first rental, there are many other types of rentals and I have since bought multifamily, commercial, and mixed-use rental properties. The type of property that is best for beginners in today’s market with high-interest rates and high prices will depend on many factors.
What was my first rental property?
The first property I bought was a 3 bedroom, 2 bath, 2 story house with a 2 car attached garage. The home was built in 2005 and did not need a lot of work. I bought it in Greeley, Colorado and while prices were much lower back then, I still got a great deal. I took my time looking for properties and this was an estate sale. The home needed some paint and that was about it. It was a fantastic property for my first rental. I used Bank of America to get a 25% down investor loan which was not easy but luckily the seller was patient! While properties were cheaper then, it was much tougher to finance them and there were much fewer options for investors.
I later sold that property for $275,000 in 2019 and used a 1031 exchange to buy a commercial property for $600,000. I think buying a single-family rental was an awesome choice for me at that time. However, this property would not be a very good rental now as it is worth around $350,000 and would only rent for $1,700 to $1,800.
Are single-family rentals good for beginning investors?
I think single-family rentals are great for beginners if the numbers work out. However, with high rates and high prices, the numbers simply don’t work in many areas. There are areas of the country that have cheaper houses that are great for single-family rentals but we aren’t all in those places. Here are some of the pros and cons of single-family rentals:
Pros
Large buyer pool if you need to sell: Single-family homes are attractive to investors and owner-occupants. When buying a rental as a beginner it is smart to have an exit strategy. Maybe the property is not as good as you thought it was or you decide you hate rentals. Can you sell the property? If you need to sell a single-family home you can sell to other investors or owner-occupants. Owner-occupants will often pay more than investors and they are always buying homes even when interest rates are high. Investors may slow down their buying when rates are high.
Easy to rent and manage: Single-family homes appeal to many renters and are usually easy to rent. Tenants also have a tendency to stay in the property longer and take care of it. I have had the same renters for 10 years in some of my single-family rentals. Many tenants will even make minor repairs themselves (not always a good thing) and maintain the yards, perform snow removal, etc.
Easier to find a good deal: In most areas, there are more single-family homes than other types of rentals. Because there are more of them there are usually more for sale and you might be able to get a better deal than on multifamily or commercial where there are much fewer properties.
Easier to finance: Lenders love to finance houses, even as rentals. It is much easier to get a loan on a house than a commercial property, multifamily, or mixed-used property.
More diversification: If your plan is to buy a lot of houses, like my plan to buy 100, it can be a little safer than buying a few big properties. Each house will be in a different area, with different tenants, and one horrible situation won’t destroy all your houses.
You can house hack a single-family home which means you buy as an owner-occupant and rent out part of it while you live there or live there a year and then rent out the whole thing. Owner-occupants get much cheaper loans with less money down.
Cons
Harder to cash flow: The big con with single-family rentals, especially right now is they can be very expensive compared to the rent they bring in. The more expensive the property, the worse the rent-to-value ratio tends to be.
Houses are expensive right now: Most properties are expensive but in some markets, houses are very expensive, and the higher the price, the more money you will need to invest in them.
Tougher to scale: It is tougher to scale when you need to buy a lot of houses to meet your goals. Each purchase takes work to find the deal, finance it, and possibly make repairs. If you buy larger multifamily or commercial it can be easier to scale.
More expensive to repair: It might be more expensive to repair single-family homes than a larger building because a larger building has one roof, possibly one heating system, etc. However, that roof and heating system on the big property will be much more expensive to repair and you will need a lot more money at once, than if you are repairing houses here and there.
Are small multifamily rentals good for beginning investors?
Multifamily rentals have more than one unit. You could invest in a duplex or a fourplex or a 100 unit property. Multifamily properties can make it easier to scale because you have more units under one roof and the rent-to-value ratios may be better. These pros and cons are for smaller 2 to 4-unit multifamily properties.
Pros
Can have much better cash flow: Multifamily properties are usually valued based on the income they produce. The prices are not driven up by owner-occupants who do not care what a property will rent for.
Somewhat easy to sell: 2 to 4-unit properties are fairly easy to sell still although not as easy as single-family homes. You can still house hack a 2 to 4-unit property which means owner-occupants can buy them. There are not a lot of people looking to house hack but you can still sell to investors and owner-occupants.
Easy to finance: Again, 2 to 4-unit properties are fairly easy to finance but not quite as easy as single-family homes. You can buy as an owner-occupant or get an investor loan with many banks.
Easy to get a good deal on: There are a lot of 2 to 4-unit properties in most markets although not as many as there are single-family homes. It can be easier to get a great deal, although not as easy as houses.
Cons
Harder to manage and rent: 2 to 4-unit properties take more management and usually have more tenant turnover than single-family homes. Tenants tend to move more often, the rents are usually lower, and tenants rarely think of a multifamily as a permanent place to live.
More risk of major loss of income: If you have a few houses and one tenant decides to cook meth in the house it can destroy the house and cause major problems as well as lost rent for months. You still have the other houses to bring in income. If you have a multifamily property and that happens the whole property may need to be vacated for an extended period of time. If you have just one of each, then the risk is about the same.
More expenses: The tenant usually pays all of the utilities and performs the yard maintenance and snow removal on single-family homes. On multifamily homes, the landlord often pays for the maintenance and some of the utilities if not all of them. You may be able to charge higher rent since the landlord is paying those expenses but make sure you account for them.
More fluctuations in value: Multifamily properties are valued based on the income of the property and the expenses. If inters rates go up as they have been, they may be harder to sell or sell for less because investors have to pay less to get the same return. However, when rates go up, rents often increase as well so that could offset a decrease in value (rents would go up on houses as well).
Are large multifamily properties good for new investors?
A lot of new investors want to invest in large multifamily properties. Grant Cardone now tells people to only invest in properties with at least 32 units although he used to encourage house hacking with FHA loans. Large multifamily properties can make a lot of money but they can also be very difficult to buy due to their price and lending is much tougher.
Pros
Easy to scale: You can bring in a lot of rent with one property and add a lot of value with the right deal.
Rent to value ratios: The rent to value ratio may be better on big properties because only investors are buying them and they expect a certain return. The bigger the property the better the numbers may look because very few buyers are looking at those deals.
The maintenance costs can be lower: The costs versus the rent may be lower because you have large buildings under one roof that share the same systems.
Cons
Much harder to finance: The everyday person cannot get a loan for a large apartment building. One of the factors lenders consider is experience and they are wary of lending to new investors on big deals even if you have the down payment.
Less diversification: If there is a disaster at a large complex, you may have a huge problem with no rent coming in for months. Again, these are rare but can happen. You also may have chosen the wrong location and the property doesn’t perform as you thought (I did this with an 8-plex).
Harder to sell: There are few buyers for large complexes and they can take a long time to sell. Interest rates also impact them greatly.
The expenses come in huge chunks: While the overall maintenance costs may be lower based on the investment, they can be huge when they do come. You could spend hundreds of thousands of dollars on a roof. Having one roof is not always better. There could be more expenses as well like parking lot repaving, landscaping, common areas, etc.
They are expensive: It takes many people years to save up the money needed for a large complex. The purchase may be worth it, but while you are waiting why not buy smaller deals that build experience and a track record for lenders. The right deals will also bring you cash flow and equity which could make it easier to buy that big deal sooner.
More headaches: Large multifamily properties tend to have the most turnover, the most repairs needed, and the craziest situations. They take much more management and can have more headaches.
Are commercial properties good for beginner investors?
I bought my first commercial property in 2017 and it cash flowed much better than single-family or multifamily properties in my area and was cheaper. A lot of people see my commercial properties and want to invest in that sector right away. However, they come with more risk and are much more complicated.
Pros
Can be cheaper with better returns: In some areas, commercial properties are cheaper and have better returns but they also could be more expensive depending on the area. Small commercial properties are often cheaper than single-family homes.
Can add a lot of value: If you can add a tenant on a long term lease it can add a ton of value., I recently bought a commercial property for $865k that was vacant, then added 4 tenants. That property is now worth $1.5 million but it was not for the beginner.
Long term tenants: Many commercial tenants will stay for years and have leases that run for years. This is great of you have the right tenant but it takes longer to find those tenants. Many of the leases have built in rent increases as well.
Fewer expenses: Some commercial leases are NNN which means the tenants pay almost every expense. These can be fantastic for the landlord but not every commercial lease is set up this way.
Less headaches: Commercial tenants tend to be less needy than residential. They often take care of the property themselves and make sure it looks nice for their business. They expect the rent to increase each year and usually don’t get upset about it.
Owner occupied financing available: Yes you can owner occupy a commercial property. You do not live there, but you run a business out of the property. If you use more than 50% of the space you might be able to get an SBA government loan with 10% down.
Cons
Much more complicated: It takes time top to learn how the lease work, and the differences between NNN and gross. Properties are valued using cap rates which can be difficult to figure out because they vary based on the lease, the tenant, the property, the location, and more.
Harder to finance: Commercial properties are usually the hardest to finance. They come with risk if you lose a tenant and the lenders know this. They have shorter term loans that must be renewed every five or ten years. The lenders will want to see buyers with experience before they lend them money as well. Even the agents and sellers may not take a buyer serious if they don’t have any experience.
More expensive costs: If you have to make repairs it can cost a lot more money as rooftop HVAC, roofs, parking lots, and commercial construction often cost more than residential. The city may require more as well like fire sprinkler systems. Appraisals and inspections are more expensive as well.
Harder to sell: Just like multifamily properties, commercial properties can be much harder to sell because there is a smaller buyer pool.
Environmental issues: A big concern with commercial properties are past or current environmental issues. You may need to get an environmental report that shows there were no hazardous materials on the property or gas tanks, etc. To clean up problem properties it can takes tens of thousands of dollars or more.
Tenants might expect TI: TI stands for tenant finishes and many tenants expect the landlord to fix up the space for them. This can cost a lot of money but also add a lot of value.
If you are buying small commercial properties you may be able to avoid many of these issues but it is still good to be aware of them and especially talk to your lender about them! On some of my smaller commercial deals, I am able to get a local bank to finance them without an appraisal which is awesome.
Are mixed-use properties good for beginning investors?
Mixed-use properties can also be put in the commercial category. Mixed-use means the property can be used for residential and commercial or have both at the same time. I have a few mixed-use properties and love them but they can be tough to finance like commercial. The one benefit is you can live in part of it and work out of part of it. You may be able to get low down payment SBA loans because of this.
What is best for a beginning investor?
There are many different options for beginning investors to buy their first rental. I would be wary of jumping into huge projects without a lot of help from someone with experience. It will be almost impossible to do so unless you have a lot of cash. Personally, if single-family homes cash flow, I think those are the safest and best bet, but small multifamily can work as well.
If you want to dive into how to do all of this I have a book on residential rentals and commercial rentals as well!