Ditching the Day Job? Make Sure You’re Ready
Nearly everyone that enters the Real Estate world in general has a desire to quit their traditional “day job”. However, knowing the difference between wanting to leave your day job and needing to is key to making the right decision for yourself and your family. What is even more important to know is that there is no set time frame when this should take place. For some Real Estate Investors, this opportunity comes within the first 3 months, however, for others it takes 10 years. That’s a big difference, and a lot of different decisions being made during that time.
What Are Your Expectations?
If you are only looking to work a few real estate deals a year, there would be no reason to leave your current job, as that will not allow you the security of a regular job. However, if you are in the opposite position and you are receiving more leads than you know how to deal with, you may want to start seriously considering making real estate investing your main focus.
Is it a Want, or a Need?
If you are even considering quitting your job, we are going to assume that you must have a pretty steady flow of leads coming in. If you think you are not able to properly follow-up with the leads you are currently getting in, make sure you have a good follow-up plan in place. Meaning, you can normally arrange times to chat while you are on your lunch, on a break, or after work by communicating with your prospect via text or email. If that still isn’t a possibility or your availability to follow-up is costing you leads, your next step should be to consider paying someone who is able to at least get to answering the calls and responding to the leads right away with basic answers to questions, taking an application over the phone or to schedule the appointment. That way, you can still work the leads you are getting in while you are working your day job.
As most real estate investors make it a priority to make enough money doing real estate deals to quit their day job, it is important to differentiate between wanting to quit and needing to quit. Becoming a full-time real estate investor is a lot of work, and even more important, it is key that it is run as a real business. With running a business comes the necessity to be able to handle your finances properly and understand that just because you get a $40,000 check from a fix and flip, doesn’t mean you just made $40,000. In the end, there are fees, taxes, closing costs, contractors and more expenses to pay…leaving you with an amount that is significantly less. Hence the reason you need to do more than just a handful of deals a year to make this your full-time income source.
What Direction Are You Going?
Within the umbrella of Real Estate Investing, there are a whole variety of different ways that you can earn income. Whether your focus is on commercial properties, wholesaling, rehabbing, buy and hold rentals or becoming the lender, there are different times that you would need to be available to conduct business. Some of the directions you may take will need your attention during the day. However, if you have the right team in place, you could still easily work a full-time job, as many investors do at the same time. For example, if you are interested in rehabbing homes, you may have a team in place handling the on-site construction, not requiring you to be available during the day. Wholesaling requires an internet connection, but may allow you to do most of the work from your phone while on breaks or on lunch.
Whatever your plans are, consider your options carefully. If you really feel like your job is getting in the way of you making a larger income than with real estate investing, think about what you would do during regular business hours that you can’t do right now. Will those things produce income? Walking away from a steady paycheck could be a huge mistake if you are unable to support your family as a result. Think about it!
About the Contributor:
Amanda Lawson is a Real Estate Investor, Marketing Professional and dog lover. She has been creating websites for business and marketing since 2000, and been in all facets of Real Estate including Escrow, Mortgage, Transaction Coordination and Consultant, finding her true passion in Real Estate Investing and rehabbing properties in her home city of Roseville, California alongside her husband and 3 boys.