One of the toughest decisions you have to make when you're first getting started as a real estate investor is knowing when to pull the trigger and walk away from the stability and certainty of your full time job. So when is the right time to make the leap?
Your dream is one every new real estate investor has: You boldly walk into your supervisor's office and brashly announce that you're quitting-that’s it…no more! While he's still reeling from your decision, you explain condescendingly that you can't afford to keep working for him with the low wages he offers. Before he has a chance to respond, you turn on your heel and leave the building – after making a quick stop at your desk to gather your things.
Five minutes later you're flying down the interstate with the windows down, wind blowing in your face, listening to your favorite song blaring out of the car's speakers. You’re Free!
Ten minutes later, as the reality of what you've done sinks in, you're parked on the shoulder of the road, hyperventilating. What have I done? Was it the right decision? What if I fail? How will I make a living working as a real estate investor?
One of the toughest decisions you have to make when you're first getting started as a real estate investor is knowing when to pull the trigger and walk away from the stability and certainty of your full time job and fully embrace the excitement, the freedom and – the calculated risks – of full time real estate investing. So when is the right time to make the leap?
I can't give you an absolute answer because a lot is going to depend on you and your comfort zone and just how far out of your comfort zone you’re willing to travel. However, I can give you some generalizations that will help you evaluate your situation as you contemplate making your transition from full time employee to dream time investor.
First, before you can even begin to consider making the leap, you need to assess your priorities and make sure you're committed to success. Are you more concerned with doing the things necessary to make it in this industry or talking about them? Do you spend more time on marketing your business, searching for and making offers on properties – or daydreaming about what you're going to do with your new-found wealth – when you finally get around to making offers and buying property? You can reach your goals, but if you don't do what it takes on a daily basis to succeed, you won't succeed. People in this day and age
Are information junkies and instead of being information junkies, they need to become application addicts and start applying even half of what they learn. Knowledge by itself is not power. Applied knowledge is power!
How much success have you had? You may still be under the spell of doing your first deal, but one deal doesn't qualify you as a full time investor. What deals do you have in the hopper? If you are consistently buying property and you have a regular flow of deals coming your way and you're closing some of them, you could be ready.
Is your investing income from part-time work approaching what you earn at your 9 to 5? If it is, and you stay committed, you shouldn't have any trouble making the switch. When you look at your results – and your income – have you reached the conclusion that if you had the hours you're spending at work to invest full-time that you have a good chance of meeting your monthly monetary goals?
Do you have a rainy day fund or a business line of credit as your safety net? The unexpected can and does happen. The best cash cow in the world can crash. Can you weather the storm? You should have at least 3-6 months of your monthly expenses safely tucked away in a bank account. If you can swing it, 6-12 months would be even better.
These are the issues you need to look at as you decide whether you're ready to declare your independence. You don't want to crawl back into your supervisor's office begging for your old job back. If you get serious about reaching your goals and making your big break, you can – and you will be successful. Real estate investing is a path to long term, sustainable wealth and retirement! Put your plan into practice and the dream you have on the canvas in your mind will become the reality in your life. The paint brush is in your hands. Seize the day and live the dreams!
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