If you’ve been following my weekly blog posts, you’ll know that I’m quite the contrarian when it comes to some of the popular topics. I’ve spoken about why you should never use leverage and only invest with cash. I’ve spoken about why I don’t necessarily believe in or like house hacking—and a ton of other stuff that I always get a lot of crap about in the comments section below. But I encourage you, and I welcome the criticism. I’m happy to respond to everyone. And again, in this article, I’m going to be a contrarian.
Have you heard of the saying “Jack of all trades, master of none”? I personally believe that real estate success takes hard work and sacrifice. I also don’t think that you can be in many places at the same time. Working a nine-to-five job and trying to have a successful real estate business—as in buying, fixing and flipping—in my opinion, is a recipe for disaster. If you want to have some sort of side hustle and if you want to make additional income, I don’t think that you should put your life savings into a fixer-upper property that you can just go and project manage on the weekend. As you probably know, when the cat leaves, the mice come out to play.
How to Estimate Rehab Costs!
Estimating rehab costs accurately can make or break your real estate business, and it takes years of experience for even the best rehabbers to master the art. However, you can expose yourself to less risk and get more accurate with your projections by learning how the pros think when estimating construction costs.
Relying on Shady Operators
I read not too long ago that the real estate industry is starting to have a big stigma because of shady operators. Real estate agents, for example, might not care about their clients, just the commission. So they tell them everything they want to hear to get that deal across the line. As for contractors, everyone’s got headaches with them including myself and I’ve done hundreds of deals. I’m still losing money to contractors. Property managers fall into the same category. A lot of these folks are the biggest scammers in the business because they come up with non-existent expenses, charge you for them, and never do the repairs because they weren’t needed in the first place. All kinds of folks could cause you to lose a lot of money.
Related: Opinion: Quitting Your Job & Living on Passive Income ISN’T Necessary for Financial Success
Now, imagine these three folks being responsible for your real estate endeavors. Meanwhile, you’re working a nine-to-five job where you’re busy, and then you’re trying to buy, fix, and flip a property. I just think you’re setting yourself up for disaster. You’ve got no flexibility because when the contractor calls, you’re in a meeting. It just won’t work. That’s just my opinion. I could be right, I could be wrong. I’ll let you guys be the judge of that.
What I think you should do is if you’re going to consider becoming a real estate investor and you truly want to achieve success within a five-year timeframe, you should quit your job. I know a lot of you are going to comment negatively on that, but in order to succeed, you need to take risks. I know quitting a job is a big risk and a sacrifice, but if you can devote most of your day to your real estate endeavors and you’re willing to work hard, I certainly think that you can succeed. However, it is going to require you quitting your job.
What’s the Worst That Could Happen?
You quit your job. You go and try real estate investing and you buy, fix, and flip properties. You commit to it wholeheartedly. That’s all you do every single day. You live, breathe, and dream real estate, and sometimes you fail. Then you come to realize that you weren’t supposed to be a successful real estate investor, and you don’t enjoy it. It requires too much money, time, and effort. Well, guess what? You can just go back to your nine-to-five. You might not have the same income, but you took a risk, it didn’t work out, and you have to start from scratch again. Remember, the number one regret that people in nursing homes have is not taking more risks.
In my opinion, we all end up in the same place. You’ve got nothing to lose as long as you put your mind to it. You can always go back to what you were doing before. I personally think if you’re going to give real estate a good crack that you need to devote most of your time to it. Then you will know if it’s meant for you and if you can turn it into a successful long-term business and retire at a young age.
So guys, once again, contrary to the popular belief, I think that if you’re going to be buying, fixing, and flipping (or any kind of real estate investing) that you should do it full-time. If you want to achieve financial freedom very quickly, you probably shouldn’t be working a nine-to-five. Again, that’s just my opinion.
I’m happy to hear your thoughts.
Please comment below.