When you all chose to be real estate investors (and had a full-time job), did you decide to quit your job and pursue real estate?
This very much depends on the person. Some people never quit their day job, and use REI as a way to make more money on the side. Some people have a nest egg and when they hit X dollar amount they quit their day job and go full time into REI.
I think what you will find is most common though is that people start REI while working and when they start making enough to support themselves and still save for that next investment, is when most people make the jump to full time.
Far less common I think, are the people who decide "this is what im going to do with my life" and quit their 9-5, without first having laid the ground work for several years.
I have listened to some of the BP podcast where the guest had flat out quit their job and jumped into real estate full time. As it turned out, sooner or later they had a find another job again. The best time to quit your job is really up to you, just be smart about it. Don't quit if ; you have zero experience with real estate investing, no other source of stable income from rental properties or a wife/husband to support you.
The plan that I am using is,
1. Pick a dollar amount that you want to make a month. example ($5,000)
2. Find a strategy to get to that passive income amount. (while still working a full time job). house hacking, buy and holds, or flips. example (house hacking, and buy and holds)
3. Find the capital. Cash, Home equity, partnership, or a lender. example (lender, and partnerships)
4. Find the deals and put them together. start telling people you are a real estate investor and they will tell you about there wife's sister's ex husband in-law has a place for sell. look on Zillow, Realtor.com, Craig's list, and other web sites where properties are sold. example (I tell everyone that I am a real estate investor and I use every possible website that I can)
5. Manage the project. self manage, or hire a property manager. example (I self manage)
This is just a short outline of the process that I use. If there is any other way I can help I would be glad to. hope everything works out for you.
- Baylus D. Nicholson
Agreed with @Kevin Harrison :
It all depends on your personal situation.
I have been doing real estate full time for 4 years, it great I love it! But keep in mind it is impossible for me to get a loan being self employed. So there are ups and down to both sides, and it depends on what your long terms are.
If you need loans/financing for most of your projects I would recommend keeping a full time or part time job.
Hope this helps
Looks like you posted twice, and I think there's some good consensus between the two threads: If you'll need lending, keep your job. Getting a bank loan without W2 income is incredibly difficult. A lot of people look at REI as a way to leave their job, but let that happen when you're sure you're financially able to give up your job income. When that is depends on your own goals, so everyone here will have a slightly different answer, just like you will.
I decided to quit my job and start my own business and play. But regardless of what you do, there are definitely ways to invest in real estate without needing to quit your job. All depends on what you want to do in REI. Big difference in effort/time requirements with the different methods.
Thank you all for your awesome input! It definitely puts things into perspective. I truly believe starting out (which my wife and I are doing), my wife and I will need be financially literate and starting to understand the fundamentals of real estate. I'm planning to keep a daytime job then when we feel our REI experience is seasoned then I will convert to "full-time".
Yes, it all depends on the person on their WHY and what their goals are. It's definitely exciting starting out new and building my way to financial freedom!
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