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You want to make a living from real estate investing. When should you quit your job?

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When you invest in real estate with the aim of living off your income, one of the first questions you ask yourself is “When can I finally quit my job?” And for good reason, real estate investment is a solid lever of wealth used by investors from all walks of life. However, when you start at the bottom of the ladder, and you combine daily work and real estate research, having a job at your side does not allow you to devote yourself full time to real estate investment.

Having a 9-5 job can therefore slow down the investment process. However, as an investor, I advise you to keep your zeal regardless and think twice before quitting your job. Indeed, the works are not necessarily a brake for a real estate investment. On the contrary, it is a powerful lever for building up capital, at least at the start of the process.

Related: 4 Undeniable Truths You Need to Know Before Investing in Real Estate

The benefits of having a job

Work, even if it takes time, guarantees you a monthly income from your salary, part of which you can save. Having a job makes it easier for you to build capital that will allow you to invest in real estate. You can use this savings for your investments, knowing that your monthly expenses will be covered by your salary. From a mortgage perspective, having a job helps gain the trust of the bank and financing agencies. When it comes to borrowing, investors do not have the same advantages as employees. At some point, you might consider quitting your job. This moment may come sooner or later. It all depends on your situation. Here are some clues that can help you identify it:

When you have enough confidence and knowledge to live from real estate

Work is a safety net. It is essential to be able to live and also to provide for the needs of one’s family. Once you are convinced that you can do it through real estate, you can quit your job without any fear. To do this, you must first control the risks associated with real estate investment. Generally, owning a property is not enough to generate enough cash to live on. You will have to multiply your investments. And to find profitable properties, there is no miracle. You will have to work and create opportunities. Investing in real estate can be learned if you want to make it your job. Thus, you must ensure that you have the basics in order to multiply profitable investments. Without knowledge of key information, such as taxation or setting up operations and financing, you are very likely to make bad investments.

Related: 5 Incredible Tips To Turn Real Estate Into Real Money

When you save enough money to be able to continue investing

The work provides some assurance with banks or financial institutions. If you quit your job, these agencies will not have the same level of insurance if you buy on credit. Leaving your job too soon can therefore affect your ability to finance. You will need to plan your exit plan well by setting aside a substantial amount of money to be able to continue investing without your monthly salary. This sum of money that you have set aside will also serve you in the event of a hard blow. Indeed, an investment, even real estate, remains an investment. No risk does not exist.

When you build a strong network

Real estate investors don’t usually work alone. They surround themselves with a network in order to make the best investments. This network is made up of real estate agents, brokers, notaries, entrepreneurs, artisans, accountants, etc. So, in order to be successful in your career in real estate investing, it is necessary to build up a strong network of people you can rely on. A trusted real estate agent will help you find off-market properties. A good contractor will complete the job on time and to standard. The more people you know, the more likely you are to get a good deal and increase your wealth.

Related: 8 Ways to Fund Your Real Estate Career

When you plan your project correctly

Living off real estate is something that needs to be prepared in advance. Keep in mind that no one becomes a real estate millionaire overnight. To do this, you will need a specific strategy and action plan to move your project forward. There are several ways to invest in real estate. These means include investment in old or new property, investment in rental property, resale after renovation or crowdfunding. It is therefore necessary to define beforehand the strategy that you will adopt according to your objectives and the situation of 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 go and quit your job to make a living from real estate investments, consider the advice above to assess whether you are ready or not.

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