Am I ready to quit my job???

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Am I ready to quit my job???

Jake Kozul
Real Estate Investor · Grand Rapids, MI · Member since 2014 · 85 posts · 13 votes

I have been investing with my own money for the past 4 years, and have built a pretty healthy portfolio of cash flow properties, and once my 1031 exchange is complete, I'll have 17 units, mostly free and clear, paying me a good sum every month. I don't know anyone else that has quit their well paying job to invest full time...so I was hoping to talk to someone who has. It seems as through my business is ready to grow; I have built a great network and experience to go full time investing...however, would like to hear from someone who is a couple years out from where I am now. If anyone who is in this position has a few minutes to chat, I would greatly appreciate the time and perspective. 

Jake

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Tim G.
Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
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Wow, you're 10x more prepared than I was! I was really depressed and unhappy at my job though so for me it was a personal decision as well as a financial one. 

I gave up a six figure income, company car and expense accounts but I gained a month with my parents in North Carolina and a month exploring South America. It was the best decision ever. 

I'm not basing it on financials though, I'm basing it on do I want to wake up and be truly happy. I live simple and it feels great to be free. 

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  • Jonathan Baker
    Toronto, Ontario · Member since 2015 · 14 posts · 1 vote
    11y

    You are the one to make the decision. I haven't retired from work yet, but I have cut short the hours of work. I would like to continue my job even after reaching your place because I love my job.

    0Reply
  • Jake Kozul
    OP
    Real Estate Investor · Grand Rapids, MI · Member since 2014 · 85 posts · 13 votes
    11y

    Thanks everyone for the input...pulled a lot of good insight from this thread...appreciate all of it. At the least I'll have a greater base of information and confidence in my decision. 

    0Reply
  • Zach Mitchell
    Investor · Orlando, FL · Member since 2012 · 183 posts · 155 votes
    11y

    @Jake Kozul Also, don't let other people's fears and insecurities deter you. Forget about all the naysayers and decide what is best for you. We only get a pretty short time on this earth, don't spend it doing something you don't want to do. Go enjoy life while you are young and able!

    2Reply
  • Mitch Coluzzi
    Investor · Des Moines, IA · Member since 2014 · 238 posts · 230 votes
    11y

    @Jake Kozul  As many others have highlighted... that right moment is different for everyone. And for some, there is never a right time...

    For me, the decision came down to time in my day and living happily. Between my corporate life, my business life, and most importantly my family life there were more tasks in a day than hours. For 18 months I planned, optimized, and hacked what I could from each. I knew the day would come when time could not be further stretched... when true sacrifice from one of my three lives would have to be made. Family was not an option. That left me with cutting back on the business or on my corporate life. Given that most of my family is involved with helping run my business, I decided to sacrifice one life entirely for the greater good.

    So last Friday I put in my two week notice to my corporate life. On January 30th, I will be walking away from a hefty salary, remote / flexible hours, paid vacation, and full benefits. A great company, a corporate position I enjoyed, coworkers who were fantastic and an outstanding manager. I was not in a hurry to make the sacrifice but something had to give.

    The company had done nothing wrong, I was not disgruntled. It was not a "good" time for me to leave the company. The moments leading up to that initial conversation were gut-wrenching. But once the conversation with my manager finished and the email was sent off to HR finalizing my intention completed... a huge monkey was lifted off my back. That nagging question of "is it the right time" completely dissipated.

    There are plenty of people who still disagree with my leaving, close family who are privy to my cashflow and finances. They say why leave a good paying job? Why take the risk?Why... What... Are you...

    The answer to all of those questions is... At the end of the day I love real estate, the analysis, the negotiation, the networking, the hustle! I believe it is the key to a financial future superior to any other industry, career, or opportunity. Most importantly, it is what I think about 24 hours a day, 7 days a week and a hobby that does NOT feel like a job to me. I might not make millions playing the game but I know one thing for sure... without trying... I mean without really trying... without putting your heart, soul, blood, and guts into something... How will you ever know what could be?

    For me, last Friday was the right time to find out.

    7Reply
  • Aaron Junck
    Real Estate Investor · Sioux Falls, SD · Member since 2013 · 415 posts · 84 votes
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    My 2 cents, for what its worth, is whatever your used to living off of , double it . Whatever that figure is that would be net not gross. 

    For being self employed for 15 years now, I have learned a lot about being self employed.  There will always be something that pops up and once you become self employed the last thing you want to do is to go back to work for someone if something turns south. So my 2 cents are double what you currently bring in from your w-2 (if thats what your living off of exclusively).

    0Reply
  • Aaron Junck
    Real Estate Investor · Sioux Falls, SD · Member since 2013 · 415 posts · 84 votes
    11y

    Also on another note. Line up any potential credit lines(personal, HELOC, etc.) prior to quitting your w-2 J.O.B. After you quit and your self employed qualifying becomes harder when going conventional.

    4Reply
  • Sean Ploskina
    Investor · Virginia Beach, VA · Member since 2012 · 244 posts · 69 votes
    11y

    Can't say I am there yet but my plan is to quit at an income level that replaces my paycheck +30%.  This would allow for continued growth every month or a really bad month. 

    0Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
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    @Jake Kozul I left my job last July so I am not that far into the FT REI world but I can tell you it is the best thing I have ever done. For us (my husband and I) the two important things were that our rental income covered the balance of our bills with my husband still working and that we were in the commercial lending space where my W2 income was not that important and we can still grow.

    I also knew it was time when I spent years making sure my REI didn't get in the way of my day job and suddenly I felt my day job was getting in the way of REI. You can PM me if you want to talk further

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    3Reply
  • Ray A.
    Professional · Cypress, TX · Member since 2015 · 309 posts · 17 votes
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    @Jake Kozul , I know many of us on BP what to be in your situation....ASAP!!!

    0Reply
  • Glenn McCrorey
    Investor · Cedar Rapids, IA · Member since 2013 · 494 posts · 407 votes
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    @Jake Kozul   I quit last month and it was also work from home and pretty easy.  That's why I kept moving my cash flow per month goal to the right.  You seem like a sharp guy that can do the math but going full time is also an emotional decision... that being said, I haven't regretted my decision for a second.  Come on in.... the water is fine.

    1Reply
  • Tim G.
    Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    11y

    A little inspiration... 

    Wandering in the Jungle to a small village in Ecuador. Life is for living, finding that life / work balance is important, I put life first as it should come as the first priority. 

    4Reply
  • Jake Kozul
    OP
    Real Estate Investor · Grand Rapids, MI · Member since 2014 · 85 posts · 13 votes
    11y

    I may just sell everything and move to Ecuador.

    1Reply
  • Tim G.
    Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    11y
    Originally posted by @Jake Kozul:

    I may just sell everything and move to Ecuador.

     My moneys on Colombia! Much more fun and better food. 

    1Reply
  • Jill DeWitPro Member
    Investor · Scottsdale AZ · Member since 2015 · 1k+ posts · 423 votes
    11y

    @Mike Flowers 

    I think I am on the same page with Mike Flowers. My partner and I have been doing this quite successfully "full time" for a number of years.  What pushed me to make the jump to leaving the corporate world was when we started losing money because I was tied up with a day job. After missing out on a deal or two and realizing an extra deal here or there would EASILY compensate for my salary, etc., that made the decision easy.

    Hope that helps!

    Jill

    2Reply
  • Rolanda Eldridge
    Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes
    11y

    It's a personal choice for sure!  Sounds like you're on your way!!!  Keep it moving!! good luck

    Benefits..

    1. Flexibility

    2.  Freedom

    3.  Enjoy it(the good, bad and ugly)  It will be some ugly, but I grow the most in challenge!!!

    2Reply
  • Amit M.
    Rental Property Investor · San Francisco, CA · Member since 2013 · 1k+ posts · 1k+ votes
    11y

    I've been living off my RE since 2004, and I can tell you that it's highly dependent on your specific situation. Biggest factors are: your expenses (ru single and super low expenses, is a spouse working and stabilizing cash flow? or ru a family with kids, etc?); and how stable is your RE portfolio in maintaining it's value and generating reliable cash flow?  Also keep in mind that in general, RE investors are asset rich and income limited. And if you're dealing with lower end property, your expenses are significant, and vacancies and values can fluctuate quickly. A portfolio that works well one year may be a basket case the next. That's why if you're serious about doing this you should consider getting the highest quality (and stable) assets you can to save you a world off headaches down the road.  It's harder to generates the cash flow in the better markets, but once you do you generally will be more secure. It worked for me :)

    3Reply
  • Jean BolgerPro Member
    Aurora, CO · Member since 2012 · 2k+ posts · 1k+ votes
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    As someone who has always been self employed, I want to second (in big way) @Aaron Junck 's comment about getting that line of credit before you leave the w-2 world. I hope your good relationship with your lender will remain the same once you leave the nest and it very well may, but I would not count on it. A lot of lenders seem to think that anyone who is self employed is a walking time bomb, lol!

    0Reply
  • Jake Kozul
    OP
    Real Estate Investor · Grand Rapids, MI · Member since 2014 · 85 posts · 13 votes
    11y

    I've been in mortgage lending for 10 years...so I am well aware of that...and it is true...you can't get financing within the first 2-3 years conventionally. I am speaking about business and personal banking, with smaller banks...that is doable as it does not require the regulated requirements that a typical mortgage does, however, you do need some experience, connections and a good business plan (word of advice to anyone looking to score alternate financing). 

    0Reply
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