Job + Real Estate or No??
So say I chose real estate as my career and had no money prior, therefore, I get a junior debt loan on some type of rental property. However, would you recommend getting a short term job in the beginning of a real estate career to be able to pay for daily/common expenses?
I’ve heard people having a job and also doing real estate and some quitting there job to do real estate full time, but i’m curious if getting a job is recommended or commonly done in the beginning of successful real estate careers.
i just recently obtained a job to help with my investing career.....ive been wholesaling and flipping but i wanna get a couple years of W2s to use...its easier for me
There are many ways to make money in real estate to raise your downpayment. For one, you could do a syndication to raise the downpayment or use mezzanine debt (junior debt). I wouldn’t recommend working for money, but working for knowledge. You could start off by becoming a wholesaler or real estate broker/agent. This gives you valuable knowledge plus the money to get your started in your investing career. I would also get in touch with many investors on bigger pockets and see if you can add value to their business while learning. You may end up getting paid as well to finance your first purchase.
There are both types of people, one those starting with real estate full time and others with doing a job and part time real estate initially.
It depends on you how you want to start off, no matter how you start make sure you have ample knowledge of real estate and ready to give your best.
Joining real estate clubs and connecting with local real estate professionals like agents, lenders, contractors etc. can be helpful.
All the best!
-
Real Estate Agent Texas (#736740)
- (832) 776-9582
- https://tinyurl.com/f4ce9n8j
- [email protected]
- Podcast Guest on Show #469
This is a great question. If you take a part time job then you'll have a security blanket. Sometimes this can prevent you from making that additional call or going to that extra meet up that is necessary for success as a real estate agent. I would ask myself two things, "Can I eat without my part time job?" If yes, then go all in all real estate. Second, "If I take a part time job will it give me too much security and I won't do the things I need to do?" If yes, then really contemplate on whether or not you should get a part time job.
If you don't get a regular W2 or 1099 job, then how do you plan your bills and living expenses?
When I left my corporate job to pursue real estate full time I had enough money set aside to last me the next 10 years.
I'm not saying that you need to save as aggressively as I did (in fact I'm actually looking to deploy most of that money at this point because I don't think it's a good thing to be so cash heavy). But I am saying that you need to have some money set aside to get you by with regular living expenses because pay days in real estate don't come every 2 weeks like they do in a traditional job.
Quote from @Tiya Patel:
So say I chose real estate as my career and had no money prior, therefore, I get a junior debt loan on some type of rental property. However, would you recommend getting a short term job in the beginning of a real estate career to be able to pay for daily/common expenses?
I’ve heard people having a job and also doing real estate and some quitting there job to do real estate full time, but i’m curious if getting a job is recommended or commonly done in the beginning of successful real estate careers.
I think it depends on what your goals are. It could be easier to start out if you have the W-2 and some money saved. If you just go straight into RE then you will probably be a 1099 pending if you are a realtor or something like that. With that you are not lendable for 2 years. So that could limit you on your ability to get started. I am a huge pro's and con's list kinda guy. Write out the benefits to both and your strategy for both.
It really depends on what your appetite for risk is. I had a full-time corporate job and did real estate on the side for 3 years. Worked a ton for those 3 years but was able to go full time in real estate from the cashflow after that. The conservative rule of thumb is to get to a point where your monthly cashflow is greater than your W2 income.
If you want to work in real estate, get a real estate related job. If not, do whatever you want to make money. Save every dollar you can and use that as a down payment on a investment purchase. Then make more money and do it over and over again. Don’t complicate the process. Just make money and save enough to invest with. I’d suggest saving enough to put 20% down minimum on your first property.