How to transition from 9 to 5 desk job to real estate

Question

Hello all,

I am in a pickle here. I am looking to get out of my 9 to 5 and pursue real estate but I am held back because I am unsure where to start. I know it is a risk leaving a full time job with steady income and going into a field where money is unexpected. I am looking for some advice on how to get started in this field.

Franklin Romine · Answer

I started out with a day job and made the transition to full time real estate by slowly buying rental properties a few dozen in a 4-6 years. W2 income is the best tool to accumulate good debt in the early stages. W2, good debt, real estate and working a plan will get anyone out of a day job. It is fairly easy to create passive income. I know some very slow thinking, D student type people that are making a killing....

Frank

Allen Fletcher · Answer

@Alex Katos

First thing, do not leave your job till you get rolling on your real estate business.

Second, spend some time reading up on the different ways that you can work in real estate (I would start with the Ultimate Beginners Guide here on BP). Look at what is available in your area, what sells, what rents, etc. Doing all of this should help you answer your own question.

Third, set a goal and go get your hands dirty (while still working). Working your job will give you stability as you make mistakes and give you stability until you figure things out.

Good Luck,

Allen Fletcher

Zach Quick · Answer

@Alex Katos There are probably thousands of threads like this or articles or blogs if you search in the top right or on google with Bigger Pockets after it. Hard to give you advice if you're not sure what avenues are available.

Michael Boyer · Answer

Agree with Frank and Marcia above--the irony is that the W2 is the tool to free the average person from a day job....Sounds strange I know...

But it is primarily because asking your lender for a real estate loan while unemployed (without steady income or assets) will make him/her throw up--especially as a novice investor.

That said, some folks find creative owner financing and such (or you could do sales or wholesaling) but many common strategies require some traditional financing.

The W2 day job can provide the down payment money and help you get that financing. Plus, another important issue, you get benefits as well from the day job (which can be quite costly to purchase on the market, especially for families).

So maybe try part time real estate--but your first rental (it can be done with a day job!)... Grow slow and maybe eventually you can say bye bye to work forever (or even keep the job if you can find one you like).

Buy and hold rentals don't need to be watched all day (with the right tenants and good maintenance)... So they can earn you money while you work--so you can do both.

Marcia Maynard · Answer

The steady W-2 income will help you qualify for loans. Focus on building your credit worthiness while studying what it takes to become a successful real estate investor. Don't give up the day job too soon!

Zoe Mercier · Answer

My husband and I are in the same boat, Russell. I found that having a  "transition" plan helps keep us from getting overwhelmed or scared of leaving too early. For example, our plan (loosely) is as soon as we make the same amount that one of us makes in a year (the lesser salary, of course) that one quits and focuses full time on RE investing with the other still part time (goal of doing this in one year). Then (hopefully in 5 years) when we make what the higher earner makes in a year (factoring in health care and other add on costs) the other quits to focus full time. Then hopefully for the next 10 years, as both of us work as full time investors, to keep building up to double our previous combined income. That's the plan anyway!! :)

Russell Naylor · Answer

Read, read, listen to podcasts, research, and read some more. Find what avenue interests you and will work best, then make a move. Can always get started while working the 9-5 to reduce risk, and transition out as you find success.

How to transition from 9 to 5 desk job to real estate

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