Leaving Full-Time Work to Move into Real Estate

I think the biggest struggle for anybody is, “Well, how am I going to get that consistent income?” Because you’ve been taught that your pay-check is going to be there every two weeks. The weird thing about being a salaried employee is whether you work really hard or don’t work at all, odds are, you’re going to get a pay-check. That’s a tough thing and that’s a tough comfort thing to leave. I got a little kick in the pants to kind of get pushed to that next phase.

I think pushing yourself into a situation where you have no other way to succeed does amazing things because you won’t know until you try something, and then you have to step back. What’s the worst that is going to happen? Do you really not have family or friends or someone who you can crash on a couch with? If you have a mortgage, can you go crash at someone’s house and rent out your house? You have to look at worst-case scenarios and talk yourself backward. “You know, this is okay.” Go ahead and do it. It is going to be tough. The first six months, 12 months, two years, whatever it is will be trial and error 100%. 

That is why I am such a fan of passive income, diversified across multiple doors, multiple properties. If you can cover that monthly base. Again, going back to a strong position, you are going to do so much better when it comes to being able to work for equity, instead of cash flow, and that is where you can really make your strides.

It’s difficult, we are all taught to go to school, get a good job and then just wait 20 to 30 years for that special retirement day so you can go do whatever you want. Well, you know, during that time you miss so much. The real estate journey in itself is also difficult. Either you have the time, the experience or the money, but rarely do you have all three which means each deal presents its own unique opportunity, but if you can look outside yourself, if you don’t have the third thing, the question is what is the best way to get across that?

When a deal comes up – Let’s say we’re looking for capital, we might be a little bit short, or we have the capital but do we have the experience in that market or that type of heavy rehab? It is the knowledge to know and start working on it now before the deal is under contract or vice versa.

You got to have each of those three things, and if you don’t how do you overcome that? An example of that was actually in a recent deal. It was a seller-finance transaction, perfect terms, everything. Two weeks in, the seller decided to back out of the contract. I said, “Whoa, we’ll take it down.” I had to go hard with our deposit and had to close in 30 days. I ended up taking it down with hard money with a little bit of private debt. It costs probably five times as much to get the deal done but at the end of the day, is the deal still worth it? making those sacrifices during that deal to keep that thing afloat and get it to the finish line.

For the full podcast click here: https://lifebridgecapital.com/2019/10/ws375-applied-wisdom-for-a-creative-approach-to-success-with-scott-hollister/