Updated about 5 years ago on . Most recent reply
Benefits of having a W2 everyone forgets
You hear conflicting opinions on staying at your job or leaving your job. Both arguments are valid. Stay at your job and get more loans or leave and pursue full time.
What are the main challenges people gloss over when they talk about quitting their job to pursue real estate investing?
Most Popular Reply
Eating your seed corn and projecting your past growth into the future.
When someone has a W2, time is their limiting factor, but they can plow all their profits from RE back into RE while living off their W2 income. When that 9-5 goes away, now the lights have to be kept on and the only source of income is the cash spun off by RE. This means less cash available for new acquisitions. If not accounted for this will throw of expectations of future growth.
Also, the act of not having another source of income can change the properties one buys since stability of earnings now becomes more important than it did before.