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When you invest in real estate to live off your income, one of the first questions is, “When can I finally quit my job?” And for good reason, real estate investing is a solid wealth lever used by investors of all backgrounds. However, if you start at the bottom of the ladder and combine your day-to-day job with real estate research, having a job by your side doesn’t allow you to focus on real estate investing full-time.
A 9-5 job can therefore slow down the investment process. However, as an investor, I advise you to keep your zeal in spite of everything and think twice before you quit your job. In fact, work isn’t necessarily a brake on a real estate investment. On the contrary, it is a powerful lever for building capital, at least early in the process.
See also: 4 Undeniable Truths You Should Know Before Investing in Real Estate
The perks of having a job
Work, even if it takes up your time, guarantees you a monthly income through your salary – part of which you can save. A job makes it easier for you to build up capital that you can use to invest in real estate. You can use these savings for your investments, knowing that your monthly expenses will be covered by your salary. From a mortgage point of view, having a job helps gain the trust of the bank and financing organizations. When it comes to borrowing, investors do not have the same advantages as workers. At some point, you may consider quitting your job. That moment may come sooner or later. It all depends on your situation. Here are some clues that can help you identify it:
If you have enough confidence and knowledge to make a living from real estate
Work is a safety net. It is important to be able to live and also to support your family. Once you are confident that you can do this through real estate, you can leave your job without fear. To do this, you must first master the risks of a real estate investment. As a rule, owning a property is not enough to generate enough cash flow to live on. You need to multiply your investments. And finding profitable real estate is no wonder. You have to work and create opportunities. Investing in real estate can be learned if you want to make it your career. Therefore, you need to make sure you have the basics to multiply profitable investments. Without knowing important information, such as taxation or the start of operations and financing, it is very likely that you will make bad investments.
Also see: 5 amazing tips to turn real estate into a real fortune
If you save enough money to continue your investments
The work provides some insurance with the banks or the financial agencies. If you quit your job, these agencies don’t have the same level of security when you buy on credit. Leaving work early can therefore affect your ability to finance it. You need to plan your exit plan properly by setting aside a significant amount of money to keep investing without your monthly salary. This amount of money that you have set aside will also serve you in case of a hard hit. In fact, an investment – even in real estate – is still an investment. There is no “zero risk”.
If you build a strong network
Real estate investors usually do not work alone. They surround themselves with a network to make the best investments. This network consists of real estate agents, brokers, notaries, contractors, tradesmen, accountants and so on. Therefore, in order to make your real estate investing career successful, it is necessary to build a solid network of people you can rely on. A real estate agent you trust will help you find off-market real estate. A good contractor will complete the job on time and within standard. The more people you know, the more chance you have of getting a good deal and growing your fortune.
See Also: 8 Ways to Fund Your Real Estate Career
If you plan your project properly
Being able to make a living off real estate is something you need to prepare for in advance. It is important to remember that no one becomes a real estate millionaire overnight. To do this, you need a strategy and a precise plan of action to move your project forward. There are several ways to invest in real estate. These include investing in an old or new property, investing in a rental property, reselling after a refurbishment and also crowdfunding. It is therefore necessary to define in advance the strategy that you will follow according to your goals and the situation in the real estate market. It would be a big mistake to neglect this planning work if you want your project to be successful.
So, before you quit your job to make a living from real estate investing, consider the tips above to assess whether you are ready or not.