Why keep your job?

10 Replies

Hi all,

I’m listening to Podcast 067 with Tim Gordon.

Tim states that he is doing 2-3 wholesaling deals per month at $10k to $40k per deal. Later in the podcast he state he still has a full time job. For some reason this shocks me. I understand having a job allows you access to financing. But he makes $240,000 to $1,440,000 per year from wholesaling. Why would anyone keep their job? Thank you in advance for the feedback. 

Erik Chipchase It all depends on your own situation. I still have a full time position even though my REI business income has surpassed my annual salary. I am looking to be debt free, and have two years of salary in the bank before I leave my FT job. It all boils down to planning and your own goals you want to achieve! Good luck!

It also depends on how much you like your primary career.  For some people they might continue doing it regardless of money and keep going just for satisfaction, interaction with coworkers, feeling like they're making a difference, etc.  However, for others it's a different situation.  As I once told one of my employees regarding the powerball lottery winnings that at the time were several hundred million, "if I won that much money, I'd walk out in the middle of this sentence and you'd never see me again."

Agree with all of the above. It's good to remember as well that those are gross numbers. What are his marketing costs to obtain those deals? Here in Phx, it's so competitive you may spend half or more of that to find and close a deal..

Its a good question.  I think part of it depends on how much money people are making in their full time job, how much they like what they do, and what other goals they have.

Maybe they're making 100k a year and have a job that is pretty stress free and doesn't take any time away from anything else. 

I know that I could possibly quit my job and make enough off my income to maintain my standard of living as my net income from rentals is now greater than my job. But as soon as I do that, I lose the ability to use my real estate profits to continue to grow my business. Everything I make on my rentals goes right back into adding more rentals.

In his case, though, it seems like he is making a significant amount of money. But maybe he's got a certain end game in mind as to what he's looking to do with that.  Maybe he wants to have a certain amount of cash saved up so he doesn't have to do wholesaling either. Or maybe he's saving up for a large apt complex that will kick out some major profits.

I think everybody is different. But I definitely get the question. I always wondered why people who were making all that money wouldn't quit their job. Its not that they're  gluttons for punishment. For me, its that I want to have enough income before I quit that I can continue investing and growing so I have something to do that I truly enjoy. 

And even then, if I enjoy my job, and it lets me have a good life/work balance, why not keep it?

My husband is a F-18 fighter pilot!!! He ???? his job. We are investing in real estate not for today's income for the opportunity to retire when flying is not longer fun. A lot of people I have met love their job today but are using their full time job to better leverage their holdings. This allows them to have choices long term. It also depends on stability and age. In order to self-employ you have to trust you can be completing those kinds of sales long term. Therefore many people keep both for a while.

My husband is a F-18 fighter pilot!!! He ???? his job. We are investing in real estate not for today's income for the opportunity to retire when flying is not longer fun. A lot of people I have met love their job today but are using their full time job to better leverage their holdings. This allows them to have choices long term. It also depends on stability and age. In order to self-employ you have to trust you can be completing those kinds of sales long term. Therefore many people keep both for a while.

There are plenty of multi-million dollar companies that lose money each year, just as there are many companies that do 250k net income on 500k in revenues.  I prefer the latter.  

It really depends on profitability.  Businesses are expensive to run, particularly at that level.  If he was clearing that much, then he's lucky and must be keeping his full time job for personal reasons.

I agree with all above and more. You still have your security job that pays your salary everyweek to pay all your outstanding bills. Not only that your employer pays most of your HEALTH INSURANCE premium so that helps.  If self-employed, you have to pay your OWN health insurance 100%.  Depending  on age and your health and family members, your health insurance and family members's insurance could easily cost at least a $1,000 per month and if not more. Very costly! That's something you all need to rethink and make sure you have enough money to take care of crisis etc.

Jobs are comfortable.

Erik I like your approach and following the same.

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