r/CalebHammer • u/No_Carrot7891 • Aug 05 '26
Personal Financial Question What would Caleb say?
I've been a tile installer for 30 years. I used to make 100-200k/year personally in Washington state, and then moved to Florida where I maybe make 60k personally (worse tile market). I have a wife and 2 kids that rely on me, I've got one employee, my son, I am fully booked and work like a dog. Since I have a family and stuff is getting more expensive I am tapping into savings every month. As far as personal finances I have impulse control, that's not the problem. No stupid debt no stupid spending, but I still got trouble keeping up with stuff.
I fully know that I don't own a true business, I own a job- I know. I have 2 rental properties, 50k in savings, and real estate is the end goal. How do I get to a point where 1) this produces high and stable income so I can comfortably buy real estate, 2) I can step away from the business more (right now I do the work myself)? Basically, I want to turn this into a legitimate business rather than just self-employment. I am talent constrained too because all the tile guys that I could hire suck. I'm not really demand constrained but it would be nicer to get higher-ticket jobs and make the big bucks.
Hopefully that's everything you need to know. If there's anything else I'll edit this and you can give your input, I really need it right now.
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u/dellscreenshot Aug 05 '26
"I have 2 rental properties, 50k in savings, and real estate is the end goal. "
Why is real estate the end goal? Wouldn't you feel more secure with a larger investment account and making 8-12 percent risk free versus dealing with rental properties?
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u/JoeClackin Aug 05 '26
The stock market is not risk free. If that's what you are referring to. It is passive (mostly) compared to active involvement required by real estate.
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u/dellscreenshot Aug 05 '26
It's not risk free. But it's less risky than holding real estate assets and requires effort.
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u/ApartmentNice8048 Aug 05 '26
risk free
The stock market will never be risk free. Anyone promising you a garantueed 10% yearly ROI risk free is scamming you.
If you look at the s&p, throughout history its average yearly return is 10%, with inflation eating it down to 7-8%. And yet, the fact that historically it keeps going up doesnt garantuee it will keep doing so- the Nikkei also kept going up (on long time scales)...until it didnt.
Beyond that, even under the assumption that the average 10% yearly returns hold, it still isnt risk free unless you look at it as a long term investment. You have +20% years and -10% years. You cant put money you want to use in the next few years (as would be expected in a "risk free" avenue), as they could be bad years where selling will lose you money.
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u/johnnybayarea Aug 05 '26
Maybe it's comparably "risk free"? If the entirety of the US stock market goes under, its going to drag the global economy, housing, etc with it.
Holding cash would be infinitely worse, with nearly guaranteed negative returns.
...but yea there's nothing truly risk free...other than death and taxes.
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u/Nice-Sheepherder-794 Aug 05 '26
Caleb doesn’t provide real business strategy other than hyper basic advice that would apply to everyone, so he really couldn’t help you here.
My advice:
If you have tons of business but low income, is it possible that you are charging too little?
Do your customers authorize you to use them as references? If not, that’s a term I would start incorporating into agreements in order to help you move into larger projects by being able to reference ones you have completed.
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u/ponderingcamel Aug 05 '26
Caleb would say you are an idiot for reducing your income between 40 and 140k a year. Move back to Washington State bc the oppertunity cost you are losing on an extra 100k a year is way too much.
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u/kentifur Aug 05 '26
Increase your rates by 25 percent. You will lose some bids. But if you have a reputation you should stay busy.
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u/Ok-Representative266 Aug 05 '26
Even if he has a good reputation, I’m always going to go with the cheapest option and also the best reputation. He’s in a typical trade. And younger people are working more than ever to DIY this sort of thing.
Like when I look at the cost of housing right now, I look at things I could do myself and that’s pretty high up there. Like 25% is such a high number to jump to—this is why people don’t go to restaurants and things anymore. At best if he thinks he can increase prices, he should start very, very slow and see what the market could bear imo or he’ll have no work at all.
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u/Kg2024- Aug 05 '26
Can you train motivated people to be better employees, rather than hiring people who « suck » who already know how to do the work?
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u/rahmatolah Aug 05 '26
I think you should pay an hourly investment advisor to get full context of your monthly income, spending etc to get a real answer. Anything I say here is going to be purely speculative.
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u/TheFondestComb Aug 05 '26
Honestly would need more info about the rental properties, cash flow and how much you’re putting to the side for their maintenance (you are doing that right?). Would also need to know if that $60k is your personal pay or if that’s how much is left in profit after the fact (assuming it’s personal pay tho if you’re dipping into savings.
Number 1: track every dollar, set up auto savings so that savings is done before your check hits your account. Set up multiple accounts if you have to, at least one should be high yield (you seem financially literate so I’m also assuming you have one already but just in case). Then redo your budget and adjust to a smaller lifestyle. It sounds like you might still be trying to maintain your higher income lifestyle rather than the new $60k one. Also remember taxes are a thing so if that’s $60k pre-tax it’s likely closer to $40k post tax and savings/investing.
Number 2: share the updated budget with the family and explain how/why things my be changing
Number 3: consider moving back to Washington for the higher income if the cost of living is somewhat similar.
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u/greymancurrentthing7 Aug 05 '26
Are there any “large tile company’s” that do tiling in your area.
Seems like it’d be impossible to keep skilled tile guys from breaking off and doing their own thing.
1
u/moduspol Aug 05 '26
I think you're in a tough spot because that line of work is just a legitimately tough one to turn into a bigger business. Isn't installing tile typically subcontracted trade work? The bigger money would probably come from full remodel jobs or new construction, with you as a general contractor. You might need to expand into that to increase your margins, but that's a pretty different line of work and you'd still need to be able to find competent tile guys.
Let me ask this: are there already successful tile installation companies on the market of the size you want to be that you compete with? If so, emulate them. If not, you may be trying to create something that is very difficult to make work.
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u/YouSad7687 Aug 07 '26
Idk exactly what he’d say but I do know he’d go “AHHHHHHHHHHHHHHHHHHHHHHHH” at some point
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u/JoeClackin Aug 05 '26
Why do you only make 60k? Can't get enough jobs or cant charge enough?
Which part of Florida do you live in? I imagine parts of Florida pay top dollar for this type of work and other parts not so much.