How to scale RE business into Full Time

[Daniel McGrenehan]

I’m an investor in NJ. I’ve been in business for 3 years now on a part time basis. So far the company has been profitable each year. I currently rehab 3-6 properties a year. My question is how to move my part time business full time. Any suggestions or advice from people that have moved from part time to full time would be greatly appreciated.

[Will Fraser]

Hi @Daniel McGrenehan!  Great work growing your business over the past 3 years and looking forward into this exciting future step.  The process of moving into full time investment (or any other business) is really quite simple - though not usually easy.

Step 1:  Know your numbers -- determine exactly what it takes to sustain you and yours.  It is prudent to have this as specific as a monthly budget that is tried and true.  For example, I know that it took exactly $3730 each month to fund my family's life.  

Step 2:  Know your business numbers -- see what you have earned in the past year.  Then two years.  Then look at how much exactly you can bank on earning each month from your business.  The more assets the better.  The more "job" your business is, the more you need to be really exactingly sure of your business output.  

Step 3:  When the number from step 2 equals or eclipses the number from step 1, you're on the right side of the equation and you are primed for an exit.  The magic situation that you as a flipper are in a prime spot to realize is this:  if you can buy assets that generate cashflow that pays your costs of living, then your flip revenue is icing on the cake.  Your assets fund your life and your flips can fund your further growth.

For more information on this transition I'd recommend getting in the weeds with the ChooseFI podcast or the Mr. Money Mustache blog.

Good luck and much continued growth!