Should I Quit My Job or Stay?

Engineer · Monmouth Beach, NJ · Member since 2016 · 132 posts · 25 votes

8y

So I quit my W2 job and traveled for a year on very very little money. I got into REI by reading and listening to bigger pockets on my adventures.

Upon returning to the US i started looking for properties and working part time. I took out a line of credit on my home which can purchase me a new house.

At least where I live, deals are few and far between. I hit a point where I caved in and got an agent (I am a builder, not a marketer). I had planned to project manage the rehabs and work part time.

At this point I realized that deals are few an far between and I could be working full time. Now that I have a year of little income, I will have trouble getting more financing to scale my business.

I am in the process of applying to W2 jobs that relate to real estate and or construction (civil engineer background) to keep my head in the game. I am also talking to out of state agents to find better deals.

I am at a similar crossroads because working full time will make out of state investing difficult.

Good Luck. REmember do what works. @Tyler Kastelberg is right. It takes a certain type of person to quit and get a business up and running. I unfortunately may not be that person until I change my mind set

2 Reply

James W.

Minneapolis, MN · Member since 2017 · 353 posts · 223 votes

8y

I would stay unless you have a good plan to replace your current income. I wouldn't think being a new realtor would do that for you and many get out of the business within the first few years of getting in. If anything, try the real estate gig part time and see how it goes.

0 Reply

Steven Gesis

Investor · Miami, FL · Member since 2015 · 1k+ posts · 390 votes

8y

Originally posted by @Quamal Burton:

I've been considering quitting my job a lot lately, should I? I recently purchased my first 3-flat where I should be able to successfully house-hack. Mortgage is 2k and rental income should be about $2600 a month. I make 60k a year at my job and I know staying at my job will enable me to receive financing from banks easier. I used conventional for the first property so if I stick around for another year I can utilize the low-down payment FHA loan and be up two properties. I'm comfortable with in the financial situation that my job provides but, as the saying goes "opportunity is on the other side of fear".

I'm a Procurement Associate and I sit at a cubicle all day creating solicitations. I have my real estate license and I would love to go full-time in real estate as an agent and an investor. I have not done a deal yet as an agent besides my own deal but, I accredit that to not having enough time due to my 8am-5pm job schedule. The idea of waking up every morning and not chasing my dream is wearing me down mentally. I do not want to live average making 60k a year I want 60 million a year. I have money saved up to cover my expenses for about a year. In the book Set For Life, Scott speaks of how you should save up enough money so that you can make an attempt at a career/business with no salary limitations that you'll enjoy doing. I'm 25 years old and I understand that time is of the essence and if I'm going to tackle this journey then i need to begin now! My greatest reason for not leaving my job is that it'll be difficult for me to get financed without W-2 income.

So should I play it safe and stay at my job or step out on the limb and go full-time in real estate?

I cannot advise you to stay or leave your job, but I can tell you that at the age of 22 I was working at the Cleveland Clinic and in parallel working on my 1st graduate degree in Molecular Biology, fresh out of undergrad, nice job, corner office, benefits - things were awesome!

But I felt a void - it was just not exciting enough, it was a boring desk job, 9-5 nothing ever changed, hit the check boxes and go home - I stuck around for another year and finished my degree, it was just not enough - I reached out to my business partner today, just started my Executive MBA grad degree #2 - asked for an opportunity (I was about 24 then) he gave it to me in his established property management business, I would be responsible for construction business development, had to quit my job, started working with no compensation, commision only - baby steps fast forward to today, own a medium size brokerage, established construction staff, exited and sold the retail property management business I walked into at the age of 24 and rolled out a boutique brokerage for Smartland investors only, made partner and am totallty obsessed with real estate -

Its been an exciting ride so far, I am glad I took the plunge - just don't get me wrong, it takes lots of hard work, substantially more work then 9-5 but the payoff at the end is what counts : )

1 Reply

Daniel F. Harb

ARRT, RT(R) / Rental Property Investor · Newport Beach, CA · Member since 2017 · 360 posts · 242 votes

8y

Well said, Anthony Dooley. "Stop crying and get to work". Love it. My father came to America at 20 years old and retired at 42 with multi millions. The man worked 7 days a week for many, many years. It's amazing to listen to the stories here of people working full~time, investing in RE, AND raising a family. And some are going to school as well! Some of the most accomplished physicians I know are, besides being an MD, are studying law, learning a new language, investing in RE among other things. I think "How in the heck can someone so crazy~busy accomplish and do all these things"? It is what you set your heart and mind to do and what you desire to accomplish with all of your soul as well as simple time management. It is beyond our comprehension what we can achieve when we set our heart, mind, and soul to it. DREAM BIG! Daniel F. Harb

1 Reply

Ryan Evans

Rental Property Investor · Cleveland, OH · Member since 2016 · 653 posts · 769 votes

8y

I just turned 27, but bought 2 properties last year. I've been an entrepreneur/digital nomad for a couple years and have no chance at getting bank financing. It's held me back in some ways, but it's also really forced me to get out there and get creative. I was able to privately finance my second deal and am working on 2-4 more deals right now without bank financing.

It's definitely a setback not having bank financing, but if you know deep down that you have what it takes then you'll make it happen either way!

If anything, keep in mind that you should only take advice from people that you want to be like someday. If people tell you to keep your job, but they aren't financially independent yet, then you might want to look elsewhere for advice.

4 Reply

Rupert Grant

Rental Property Investor · Los Angeles, CA · Member since 2017 · 30 posts · 12 votes

8y

At 25 you are thinking about your future as an entrepreneur and your real estate investing. Therefore, you are thinking about financial freedom. You will not be 60 and working in a job you do not like, because you will be an investor long before that. With that said, I think you should continue to work and have the W-2. It will take you a longer time to get to your financial goals if you cannot get financing (leverage accelerates growth). Switch jobs and do something you like more, but keep the W-2.

1 Reply

Tristan Louis

Investor · Toronto, Ontario · Member since 2014 · 7 posts · 1 vote

8y

Glad to see everyone chimed in with tackling both path while you build up your real estate portfolio.

0 Reply

Van Blackman

Real Estate Broker · Chicago, IL · Member since 2015 · 122 posts · 103 votes

8y

@Quamal Burton

Great post, sir!

I believe you answered your own question within your post above.

The great news is: at 25 years old, you are still VERY young. Quitting your current job and changing careers it totally acceptable at this time in your life.

If you truly love real estate and investing, I'd say that's what you need to be doing!

Good luck to you sir!

Best,

Van

0 Reply

Gino BarbaroPro Member

Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes

8y

@Quamal Burton

It sounds as if you have the answer to your question. Think about what the worst thing that could happen if you left and you "failed". You can always go back. But wouldn't it stink if you at least didn't try. I had the same situation, and back on March 2016, I left my business to embark on real estate full time. It is a scary venture with six kids, but if I didn't try, I would still be in an untenable situation with only myself to blame.

Take baby steps and create a plan, and then follow the plan.

I know you can do! If you get that queasy feeling in your stomach thinking about it, then you're on the right path!!

Best

Gino

Podcast Guest on Show The “Conveyor Belt” System That’ll Build You a BIG Rental Portfolio Quickly

0 Reply

Quamal Burton

OP

Real Estate Professional · Chicago, IL · Member since 2017 · 18 posts · 5 votes

8y

The advice I've received has been amazing!!!!! Everybody provided valid points. I see most people advising me to have a solid plan upon leaving my w-2 job but, I'm the type of person that'll never be 100% sure about a plan and if having the perfect plan was the only way that I'd leave my job I'd be there forever! I may never have a perfect plan but, I do know I will hustle my butt off!!!! @Ryan Evans the advice of only taking advice from people I want to be like is great advice and that's what I always attempt to do! I'm noticing that a lot of people are advising to suck it up and stay aye my job because that's the simplest and most basic way to become wealthy but, I'm not in search of how to become wealthy, I'm in search of the fastest and most efficient way to become wealthy! If I can become wealthy at the age of 30 rather than 45 then I have an extra 15 years to enjoy life the way financial independent people enjoy it. No waiting for a bosses approval to go on vacation, to wake up at 6am when you're dead tired. I do believe I'll stay at my job at least until I purchase another property utilizing the FHA loan but, after that I'm I'll quit. Solid plan or not. If I do not give it a try it'll hunt me forever.

1 Reply

Todd Dexheimer

Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes

8y

You're 25 and by the post it sounds like you have no wife and no kids, so what is holding you back? Take advantage of that now, quit your job and go do what you think you will love. If you have the passion for it and the drive there is no doubt that you can be making $60k in a short time frame. I would cut my expenses out as much as possible (no cable/dish/netflix, limited eating out and going to bars, etc), work at the job for another 3 months or so to save as much as possible and then go all in. If you don't like being an agent or you are not making enough money after a year, then go get a job or do something else. Most of the advice is well intended, but is better advice for someone that has a family and needs to be comfortable. If you are ok not being comfortable for a while, then I don't see why you would stay in a job you hate.

2 Reply

Mike H.

Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes

8y

I'm in a different place but am struggling with somewhat the same decision. I'm in IT and at some point, its just a struggle. The work pales in comparison to real estate. Its that simple. I love real estate. I have enough rental income to pay the bills. But not sure if I could continue investing at the pace I am now without the w2 income and don't want to stop. I'm also 47 and not 25.

But here is where I will go in the other direction for your situation. I say quit your job. Do it today! You mentioned in one of your posts that you have a pretty good size chunk of savings set aside. Your investment property is throwing off a profit of $600/mo so that will help too.

You're 25! I didn't read through every one of the posts but it doesn't appear as if you have kids so NOW is the time to take your shot. You may end up working 60 to 70 hrs a week to generate enough income as an agent to match what you're making now. But you'll be doing it on your own terms and you'll be doing it at something that doesn't feel like work.

You might have to shut down your investing for two years until your self employment income (from being a realtor) can be used towards your financing qualifications but may be thats a good thing.

As a realtor going through towns and homes 24/7, you are going to learn 100 times more about your markets and products than just being a part time investor. And that can only lead to more opportunities. And maybe you don't have to wait the entire two years to begin investing again. Maybe you find a money partner and partner on deals with them instead so you can start building wealth sooner.

If you were a little bit older and/or had a family, I don't think I would suggest this route. I would probably say you should ramp up your hours as an agent now and try to build some real income before leaving your job.

But given your age and your reserves, I say do it. The job market is great. If after 6 months, you still haven't been able to make a dent in growing your income as an agent to where you can at least pay your bills, then you can always go back and get yourself another w2 job.

But knowing what I know now and having done the job thing for this many years and seen what real estate is like for the past 10 of them, I'm going to have to be the odd man out here and tell you to take the leap. At your age, its the PERFECT time to take your shot!

If you want to cover your bases a bit, then maybe give yourself a 2 month cushion. Ramp up your agent networking for the next two months - even if it means doing nothing but working both jobs. And then walk. That would put you close to spring which is typically the absolute best time of year for houses sales so you'll be giving yourself the best chance possible at being successful.

But based on what I'm perceiving is your risk tolerance and based on some of the other key facts (your reserves, your age, the job market so you can get a new job if you end up having to, etc), I'm saying you should quit your job and take your shot!

1 Reply

Quamal Burton

OP

Real Estate Professional · Chicago, IL · Member since 2017 · 18 posts · 5 votes

8y

@Todd dexheimer and @Mike H thanks guys! This is what I've heard from most people! I am a high risk reward type of person, not a play it safe and succumb to mediocrity.

0 Reply

Matt K.

Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes

8y

Originally posted by @Patrick Martone:

So I quit my W2 job and traveled for a year on very very little money. I got into REI by reading and listening to bigger pockets on my adventures.

Upon returning to the US i started looking for properties and working part time. I took out a line of credit on my home which can purchase me a new house.

At least where I live, deals are few and far between. I hit a point where I caved in and got an agent (I am a builder, not a marketer). I had planned to project manage the rehabs and work part time.

At this point I realized that deals are few an far between and I could be working full time. Now that I have a year of little income, I will have trouble getting more financing to scale my business.

I am in the process of applying to W2 jobs that relate to real estate and or construction (civil engineer background) to keep my head in the game. I am also talking to out of state agents to find better deals.

I am at a similar crossroads because working full time will make out of state investing difficult.

Good Luck. REmember do what works. @Tyler Kastelberg is right. It takes a certain type of person to quit and get a business up and running. I unfortunately may not be that person until I change my mind set

Respect to you for an honest post showing the other side of walking away....

0 Reply

Matt K.

Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes

8y

Originally posted by @Quamal Burton:

@Todd dexheimer and @Mike H thanks guys! This is what I've heard from most people! I am a high risk high reward type of person, not a play it safe and succumb to mediocrity.

Then leverage the six figures you've saved, even IF you lost it all, you still have your W2 income to fall back out. You'll be in a better position to do this with the job vs without when it comes to loans. Start buying homes cash and do delayed financing, remember you get up to 10 loans at once...

2 Reply

Henri Meli

Investor · Morrisville, NC · Member since 2012 · 1k+ posts · 673 votes

8y

@Quamal Burton . This is not a financial question in terms of how much money ... etc. This is really a mindset question. Being an entrepreneur requires a completely different mindset. How badly do you want to get this working and what are you willing to sacrifice to make it happen. To me, the answers to these questions is more important than the W2 question.

Here is what I would do, if I were you.

1. I would write down all the road blocks that might exist if you lost your W2 and salary.

2. For each of the road blocks, I would write down ways to get around them.

3. I would act on the things I can act now that I have a W2 and salary. And I would prepare for as much contingency plan as I possibly can. Speak to people who have made the jump, and understand where they struggled and how they got around it.

For example: Without a W2, you won't be able to get financing easily. How can this problem be worked around? One option would be to find a financial partner who has a W2. You could start building relationships with people who could potentially be partners in deals. If you have credit cards, call them up and see if they can raise your borrowing limit, so that you can use them in case you need the money. As another person mentioned, see if you can get a side job (Uber maybe?). Also see if your current job can allow you to work part time or different hours, ... etc. See if you can do something similar at another job but with more flexibility.

You should stop thinking about things that won't work and ask yourself how you can make things work in your new situation. To me, that's more critical.

Another very important aspect is to know yourself. Know what you can do and can't do. If you are not someone who can hustle and work from 6am till midnight ... for free ... then you might not have the right mindset.

2 Reply

Ola Dantis

Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes

8y

@Quamal Burton This is how the story unfolds:

Driving to work, we are listening to a BP podcast about a wholesaler who quit his job, and he is now killing it: making a ton of money. We say to ourselves: this guy doesn't sound smarter than me, therefore I can do this too! 🤔

Then, we start the process of self-talk followed by an inner war tugging between should I quit OR should I stay?

First, STOP!

Do a self-audit (Let's focus on the $60M/year comment):

WHAT do you want out life? [Like really, not the 60M/year—that's not a strong enough why]
WHY do you want that out of life? [What are going to do with 60M/year]
Is that REALISTIC? [Has anyone else in the world made 60M/year in their first year of real estate investing?]

No one else but you has the answers to the above questions.

Oh, sorry back to the wholesale guy we heard on the podcast, the guy didn't talk much about how he struggled for two years and worked with a mentor for next to nothing before he was able to hit his first deal.

I love what @Tyler Kastelberg said! This journey called entrepreneurship is a hard grind in the beginning. Never forget there is a valid reason why a majority of the population continues to work 9-5.

To conclude, if you know that your "what I call" level of madman-ness is super high. QUIT (I say this with compassion ☺️).

Hope this helps. Goodluck [you are going to need it :)]. Thanks! - Ola

2 Reply

Kyle Eckert

Realtor · Saint Louis, MO · Member since 2017 · 228 posts · 174 votes

8y

@quamal burton I didn't read all the above posts, so apologies if this is redundant advice. I would suggest finding a w2 job with flex hours. Work efficiently there and spend more time working your side hussle, which is real estate. Read 4 hour work week for an explanation of what I mean. I am in the same boat I dislike my 9-5 and want to quit everyday. However I am married with 1 kid and 1 on the way and the benefits are great, so I can't just quit and pursue something else. For motivation I set small goals to reach. My short term goal is to generate enough cash flow to pay my current mortgage. Not a lofty goal, but it takes a defined effort to get there, so I take steps everyday to get there. Good luck

1 Reply

Chizoh Uzegbu

Investor · Oakland, CA · Member since 2017 · 41 posts · 25 votes

8y

@quamalburton In my humble opinion no - unless you can attain a job that is equal or greater than your current one. I would say continue to do both. Grind it out for sometime until you have the resources (finances, opportunities) to go into real estate full time. Im sure a lot of us (including myself) are trying to get out of the "RAT RACE" but I think we should all be calculated about how we do that. Best of luck.

#cheers

1 Reply

Stephen Barton

Real Estate Consultant · Indianapolis, IN · Member since 2014 · 322 posts · 238 votes

8y

Hey @Kyle Eckert my two cents would say to keep your job but start doing investing part time. You are the best judge of what would fit your needs and your goals best. That being said there is a lot to debate about burning the boats and just diving in and hope you swim. However, I am not sure on what type of real estate you are thinking of getting into but maybe do both. Having a W2 job will enable you so many options if you are a flipper or landlord looking to get financed. Now, if you have stacks of cash sitting in the bank- 6 months to a year of your expenses at the least plus some- then, I would say yeah go for it. Quit your job because you have all of your financial needs taken care of for at least 6 months. If not, just start doing this in your off time. If you are passionate about getting into real estate then you will find the time. You will make a way!

Final thought: It is amazing what people are capable of once they actually set their minds to what they want. You might even surprise yourself. Just be smart. Especially, if you have a family or loved ones counting on you. Risk can be rewarding but not when it can potentially hurt other people in your life. If you are single and have no one else then that should factor into your decision as well. Good luck!

1 Reply

Matt P.

Investor · Columbus, OH · Member since 2015 · 625 posts · 601 votes

8y

+ 1 to keeping the job and being an agent on the side while you build a portfolio to replace the w2 income. You can invest in properties and work full time, definitely if your only pulling 40 or 50 hours a week at the office. I know a guy that has 20 units and is still working a 40 hour a week job and he makes a LOT more than $600 a month cash flow.

1 Reply

Kayla Davis

Chicago, IL · Member since 2017 · 1 post · 1 vote

8y

Great post Quamal! After reading the comments I feel you pretty much got it figured out and you yourself can only answer this question. My opinion you are not married or have kids, you have enough saved up, you have your degree, CDL license and broker license to fall back on PLUS your 25!! Your young, life is all about taking risks but SMART risks. So I’m going to agree with both aspects, try to hold on to your job as long as you can to get another property that would at least give you more cash flow than $600. Also get you a plan together before you quit figure ways out to connect with different lenders that will finance you without a w2. Once you got all that together I think you’ll figure the rest out as you go. I’m 24 I’m in the same exact boat , new to investing but if I don’t at least try how will I ever know if I’ll actually fail. Strategize, Put together a plan and take your leap . We can always go back and get a Job. It’s Chicago !!

1 Reply

Eric Turner

Marysville, WA · Member since 2018 · 60 posts · 35 votes

8y

@Quamal Burton

I say go for it. I left my job and started a business and it was possibly the best decision I ever made. I love what I do now, I work from home, I work my own hours. The difficulty getting loans is the main downside I have ran into so far.

Of course I have pretty good work ethic, had a plan in place and I ran my business part-time for about a year and a half before quitting my day job.

My advice is to get EVERYTHING in place that will help you with your real estate business, all the planning, all your goals etc... Also create a frugal budget to live on if you don't already, in order to extend your 1 year savings further if need be.

If you work hard, have a plan and budget in place, and are truly passionate about being a real estate agent, then you will be fine.

2 Reply

Lamaine Hargrove

Atlantic highlands , NJ · Member since 2017 · 35 posts · 11 votes

8y

@Quamal burton. I'm in the same boat and exactly how you feel. I'm just starting out. Did not purchase my first property yet. But I'm obsessed with getting this up and running. Studying everything I can. I want to be wealthy in real estate as fast as possible. I make 60,000 a year also. Stick to it and we will both be successful. Thanks to everyone in BP for the advice to him and all us newbies out here working for a better life l.

1 Reply

Patrick Martone

Engineer · Monmouth Beach, NJ · Member since 2016 · 132 posts · 25 votes

8y

Originally posted by @Ryan Evans:

I just turned 27, but bought 2 properties last year. I've been an entrepreneur/digital nomad for a couple years and have no chance at getting bank financing. It's held me back in some ways, but it's also really forced me to get out there and get creative. I was able to privately finance my second deal and am working on 2-4 more deals right now without bank financing.

It's definitely a setback not having bank financing, but if you know deep down that you have what it takes then you'll make it happen either way!

If anything, keep in mind that you should only take advice from people that you want to be like someday. If people tell you to keep your job, but they aren't financially independent yet, then you might want to look elsewhere for advice.

haha i moved to chaing mai and did the digi nomad thing for a bit

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Should I Quit My Job or Stay?

Should I Quit My Job or Stay?

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