When did you go full time in REI?

Question

For those that are doing REI full time, how long before you quit your W2 job? Did you wait until you replaced your income 100%? It's kind of a catch 22, in my case. To succeed fully in REI, I feel I need to commit all my time instead of my spare time which is zilch right now with the demanding job I have. I have a year's worth of savings - does it make sense to live off that while I pursue REI full time?

Jim S. · Answer

@Lori Cooke The risk is certainly a lot less at your point in the game.  You could quit your job and give REI a full time shot and worst case scenario if it didn't work out, you could probably find a job that was as good or better than the one you left.  You are really at the best point in life to do something like that (especially with no kids).  I was in my late 30s when I quit my job and started my own business (not in real estate).  My partner and I sold out a couple of years ago and I now work for the company that bought us.  My point is that it worked out for me and was much less of a risk for me then than it would be now.  At that age I knew I had plenty of time to make back the lost income if I failed.

Best of luck on whatever decision you make!

Lori Cooke · Answer

@Jim S. Thanks for the reply! I think that's why I'm even considering quitting my job - I have no children (and am not having any) and I guess I'm still "young" in my mid-30s :) I do have a husband who also has a job but makes significantly less than I. The only real hiccup right now is that we were stupid and decided to buy a new house. It's under construction and we haven't closed yet - not until April/May. We've made a sizable deposit and the only way we'd be able to get that back by backing out is if we lose the financing. The only way we would lose financing would be if our income significantly changed. Enter me quitting my job. It seems so illogical to do this but...I'm 100% dedicated to REI now and I just feel my W2 is holding me back!

Jim S. · Answer

@Lori Cooke  I think it kind of depends on where you are in life.  I'm fairly new in real estate investing but I'm I have a good job that pays well and a couple of kids I'm putting through college so I have no plans to quit my full time job anytime in the near future. In fact, I wouldn't even consider it until I was able to replace my current income. If you're younger and don't have a family to support, leaving your job wouldn't be as big a risk.

One thing I can tell you for sure is that it's a lot easier to get financing from banks if you have a normal job and income.  Good luck in whatever you decide to do!