5 Must Haves Before you Quit Your Day Job for Full-Time Real Estate Investing

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Real estate can provide passive income, even allow you to quit your day job and become financially free.  For many investors, this is the goal:  to be their own boss and to be able to work when they want and where they want. 

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Here are 5 must-haves before you give up your day job.

  1. 30% more monthly cash flow then you need – Surprises happen.  Vacancy, maintenance and other expenses arise and you are not guaranteed optimal cash flow on every property every month.  Make sure you have 30% more than what you need as a buffer for surprises.
  2. 1-2 years of reserves – Depending on how conservative you are, make sure you have 1-2 years of expenses in reserves so you can live comfortably and don’t have to stress over your cash flow and finances.
  3. Asset protection – Hold your properties in entities like a corporation, trust or LLC.  This will protect your other properties, businesses and personal assets in the unfortunate case you get sued and lose. Of course, consult with an attorney to discuss the best entity for your needs.
  4. A strategy to improve your net worth and cash flow – What are the next steps and initiatives to take your business, cash flow and net worth to the next level.  Continue to learn, educate yourself and master new strategies or asset classes.  Focus on continuous improvement.
  5. Know what to do with your time – I personally get stir crazy after 2 days of doing nothing.  Exercise, learn and pursue other goals and interests.  Get more involved with your family and community, volunteer, give back and fill your time with meaningful tasks when you are not working.  A routine of positive things can lead to achieving many goals and tremendous happiness.
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About Author

Ryan is the founder of Real Return Real Estate™ , a company focused on buying property at extreme discounts, selling and renting with cash flow.

9 Comments

  1. Ryan, great article. Question for you (related to #5)….do you actually find yourself with 2 days available to you to do nothing with your business? It’s funny because often when I talk to full time real estate investors and other entrepreneurs, they work as many (or more) hours than they did when they worked a 9-to-5. The difference is #1 in most cases they don’t HAVE to and #2 they are doing what they love so that don’t count it as work.

    Just curious as to your personal experience. Thanks again for the tips!
    .-= Shae´s last blog ..94 Days of Focus to Finish 2009 Strong! =-.

  2. Yep Josh, I hear you. When I’m doing what I love in business, it just doesn’t feel like work…but the thing is…my family (i.e. my children and probably my hubby) DO consider it work so that’s where the challenge of “balance” comes in. I’d like to think that as a full time entrepreneur (one with multiple streams of income, not a self-employed job replacement) achieving that balance becomes easier. I don’t know for sure yet…I’m still holding down a 9-to-5 while building a business. 🙂
    .-= Shae´s last blog ..94 Days of Focus to Finish 2009 Strong! =-.

  3. Thanks for the comments guys. I get really busy at times and sometimes have some time or make some time for myself. I delegate a lot and build systems and try to avoid wasting time and spinning my wheels. I used to try and do every kind of deal and strategy and wasted time by spreading myself too thin. Now I have it all dialed in with the sytem, team and delegation in place and I can focus on looking for more deals and making higher level decisions. In my free time I am extremely active and volunteer. Volunteering is something I look forward to doing much more. I definitely enjoy real estate and often find myself reading and looking at how to improve my business in my free time.
    .-= Ryan Moeller´s last blog ..3514 W 58th, Cleveland, OH 44113 =-.

  4. It’s so common for entrepreneurs to quit their jobs before their businesses are making money… or worse yet: quit before they even start the business.

    I once knew a guy who got a great office for his new business with a great fax machine, copier, computer, sign for his door, and all the amenities…. but he never got a client.

    He was back in a job within 6 months.
    .-= Brian Lee´s last blog ..Real Estate Investing Links for September 30, 2009 =-.

  5. BEING A LANDLORD IS LIKE BEING IN THE OCEAN IN A SMALL BOAT. SOMETIMES THE WEATHER IS CALM, BUT SOMETIMES HURRICANES COME VERY OFTEN. MY TIP IS: WHILE THE WEATHER IS CALM, TAKE IT EASY BECAUSE THERE WILL BE HURRICANES ALL THE TIME WITHIN A YEAR, ESPECIALLY NOW THAT THE ECONOMY IS IN BAD SHAPE; AND TENANT’S INTENTION IS PAY ALL THEIR BILLS BUT THE RENT.
    GRACIAS, MARIA

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