Does all real estate scenarios take a while to make decent income?

Question

Im currently in the car sales industry and doing okay but I know (or heard👨🏽) real wealth is made in real estate, i been intrested in real estate for a while now but always get held back by the time it takes to see nice profits.

John Morgan · Answer

@Jimmy Rojas

It took me 5 years to only make 9 or 10k/month in RE. I’m 9 years in now and profit about 18k/month now. It doesn’t happen over night. But if you can give yourself 5-10 years, you’ll be bringing in decent cash flow on the side. Most people can’t wait that long so I tell them to invest in crypto or something else if they need to hit home runs from the start. I’m just a “base hits” investor and work full time with my W2. But I invest on the side with RE to make a little extra.

Roger Lemley · Answer

Jimmy, define "decent". My first deal cash flowed $300 a month, and the second $500. I'm not leaving my day job for $800 a month, but,$9,600 a year is noticeable.

JD Martin · Answer

Generally, yes. Real estate is a long game unless you are talking about getting a real estate job, which then requires skill and experience. So yes, you should not expect to get rich quick in real estate.

Jonathan Greene · Answer

You are looking for something quick from your post. Real estate is not it. Most people who look to real estate for quick cash think flipping or wholesaling will get them there. 99 percent of those will lose the money they put in and then some because they were trying to move too quickly. The statement is buy real estate and wait, not wait to buy real estate. But not waiting means learning, prepping, and building relationships, while also building your financial foundation.

Chris Ayars · Answer

In car sales people come to you looking for a new auto. You sell to them, or not, but they come to you.

In real estate you have to invest a lot of time and money trying to find the right person that "clicks" with you in order to get a client to work with you. It is hard work and takes a long time to get the ball rolling.

If you are talking about investing, you need to learn what to look for in your area of interest. Either way (agent or investor) you are spending a great deal of time and money up front in most cases just to make a buck. You have to get the ball rolling before you can expect the snowball effect financially.

A few people have quick success and get the ball rolling fast, while others have a harder time. Many fizzle out within a few years. Others dog it until they see success. It's not a one size fits all career.

V.G Jason · Answer

Short answer is yes. Fast solutions have slow problems. Seek longevity, sustainable not extreme volatility. You can trade vol just in different areas, real estate isn't one unless you're deep with money.

Mike Dymski · Answer

Like flipping cars, you can flip homes and make a quick profit (although, it takes time and work to generate a deal flow pipeline and feasible contractor connections).

Bob S. · Answer

Not sure what cash or not has to do with anything. However, money can be made quickly. My 1st month I flipped a contract for 19k, about 15 years ago.

Jimmy Rojas · Answer

Very nice, I'm assuming it was a cash buy

Jeremy Horton · Answer

This is exactly it - 75% of it is longevity. If you stay in business, stay consistent and keep going you'll build long term wealth.

The thing about RE that I like is my ability to control the individual deal. I do use RE as diversification - 50/50 stocks to RE. But by controlling the individual deal I can buy in a good location and at a discount (equity capture at the buy).

If I buy a house for 150k, put 20k into it, and it's worth 220k - I've just picked up 50k equity on paper. Even if the ARV is 200k, I've still picked up 30k in a few months while working a full time job.

Does all real estate scenarios take a while to make decent income?

Does all real estate scenarios take a while to make decent income?

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