Going Into Real Estate Investing FULL TIME

[Don Konipol]

For the lifestyle, for the money, for the freedom and for the satisfaction lots of investors who get a “taste” of real estate investing fantasize about becoming a “full time” investor - and chucking they’re “day job”. 

As someone who did this twice - the first time 1980 - 1986 and then again 2001 - present, I can offer a certain “experienced” perspective.

First, we need to define what full time actually means.  To me there’s two kinds of full time - the most common is the investor with both a job or a business in the real estate field, AND significant personal investing activity in real properties.  The more unusual is the “full time real estate investor” whose sole support is “investment income” with no “fee income” from brokerage, PM, appraising, syndicating, etc. 

Having a significant presence as a real estate investor and expanding your wealth building/income earning opportunities by syndicating deals or brokering deal you can’t do personally is a great launching point toward full “independence”.  In fact. Syndicating deals and or brokering them doesn’t disqualify the investor from the category of “full time RE investor - UNLESS the syndication or brokering changes from a “sideline” to investing activity to an outright business on its own.  

Now, many if not most investors won’t care about these somewhat subtle differences, as long as they’re profitable, satisfying, etc,.  But 48years ago when I entered real estate as a career (I left banking), I had a vision in mind; to spend all my working hours finding, analyzing, negotiating, structuring and managing real estate assets/deals.  

I determined early on I needed four things to accomplish my goal; knowledge (education), experience, capital and credit.  And I took specific steps to acquire each.  

So for the last 25 years I’ve invested (personally) in commercial property, some (limited) residential property, mortgage notes, ran 2 note funds, and syndicate both larger ($1 - 6 million) notes and commercial properties.  I am currently reinvesting proceeds of some property/note sales into selected REITs, both U.S. based and international (Europe and South America).

I’d love to hear your experience or desires to full time real estate investor “status”.