Should You Invest in Real Estate with a Full Time Job?

Have you ever heard a question that stopped you in your tracks and made you think, I thought everyone knew… you can fill in the blank. For some of us, we may have been taught something at a young age that stuck or as an adult, we get so good at our jobs we think everyone must have some basic understanding of what we do?

Well, you are not alone. It is common enough to have been labeled a Cognitive Bias known as the Curse of Knowledge.

Recently in a conversation with a stranger, they asked me if they should invest in Real Estate while they are still working Full Time and boom, it hit me. I have been overthinking my content at times and can always revert back to the basics. Today, we will do just that!

                        Should You Invest in Real Estate with a Full Time Job?

Yes.

Now that we have answered the question, let’s talk about why. Unless you have been stockpiling cash like Scrooge McDuck and are prepared to buy cash for some investors, Banks can be the biggest hurdle to starting one's investment journey.

Having proof of a salaried job can instantly cure most of the headache for new investors as long as they have enough cash on hand to satisfy down payment and closing, six months of bills as well as a satisfactory debt to income ratio.

If you work for yourself, work sporadically or even work on commission, most banks would like to see two years of income in that particular role. Keep this in mind if you are thinking about buying and/or changing careers in the near future.

Reason #1 - Banks Will Love You

We really need to make the bank happy just to get the deal done. Initially, you will have to upload a number of financial documents and may be in contact with a lender or bank representative for anywhere from 30 - 60 days. After that, you are stuck with YOU!

What I mean by that is we tend to be our own worst enemies, I have found that to be so true in Real Estate Investing. As a full time investor now my wife and I are on a limited income based on what our properties can produce. If something breaks above and beyond what we have saved, we would have to consider selling a property, refinancing or tapping a for of credit.

When we had full time jobs, we would have just adjusted our lifestyle to pay for whatever came up. There is a beauty or even a sense of freedom knowing you can always go out and earn more money from a reliable employer. On the flip side, we want to use Real Estate as a means to escape the W2 working world.

Reason #2 - We Are Our Own Worst Enemy

People love to support someone chasing their dreams! People don’t always love those who have achieved them.

For a select few individuals that start to feel stuck as you succeed in Real Estate, their support will turn to bitterness. The ones who truly support you will rise above the rest and you should cherish those friendships deeply.

Early on though, everyone likes to support the underdog. If you continue to work and invest in real estate, you will be amazed how many people reach out to lend a hand. You will be shocked to find…

Your Co-Worker Inherited a Hoarder House and Just Want it Gone.

Your Colleague has the Money to Invest But Not the Time and Likes What You’ve Done.

You Meet Your Boss’ Brother at a Party and Find Out He is the Go-To Hard Money Lender.

You Find Two Deals at Once and the Bank is Happy to Approve.

Early on, your network is as important as finding a good deal. My network came from my job in Finance and three deals came from working and being in touch with what was going on in my community and world around me. Part luck? Probably, but I believe working, showing up and telling others what you are investing in can make magic happen that only the universe may be able to explain.

Reason #3 - Your Network is Your Net Worth

As I always say, tell everyone what you are looking for! Stay out of your own way and if you have a steady job of two plus years, banks will love you.