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When you invest in real estate with the goal of living off your income, the first question you ask yourself is, “When can I finally leave my job?” And for good reason, real estate investing is a solid money lever used by investors of all backgrounds. However, when you start at the bottom of the ladder, and when you combine your daily job with real estate research, having a job by your side may not allow you to focus full-time on real estate investing.
So having a 9-5 job can slow down the investment process. However, as an investor, I advise you to keep your spirits up despite everything and think twice before quitting your job. In fact, work is not necessarily a break for a real estate investment. On the contrary, it is a powerful leverage for capital formation, at least in the beginning of the process.
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benefits of working
Work, even if it takes your time, guarantees you a monthly income through your salary – a part of which you can save. Having a job makes it easier for you to build up capital, which will allow you to invest in real estate. You can use these savings to fund your investments, knowing that your monthly expenses will be covered by your salary. From a mortgage standpoint, having a job helps to gain the trust of banks and financial organizations. In terms of borrowing, investors do not have the same benefits as employees. At a certain point, you may 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 make a living from real estate
Work constitutes a safety net. It is also necessary to be able to live and support one’s family. Once you are confident that you can do it through real estate, you can quit your job without any fear. To do this, you must first master the risks associated with real estate investing. Generally, owning a property is not enough to generate enough cash flow to live on. You have to increase your investment. And to find beneficial properties, there is no miracle. You have to work and create opportunities. Investing in real estate can be learned if you want to make it your profession. Thus, you need to make sure that you have the basics in order to multiply profitable investments. Without knowledge of important information like setting up taxation or operations and financing, it is very likely that you will make a bad investment.
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When you save enough money to be able to continue investing
Work with banks or finance agencies to provide some insurance. If you leave your job, these agencies will not have the same level of assurance when you shop on credit. So leaving your job too soon can affect your ability to finance. You will need to plan your exit plan properly by setting aside enough amount to be able to continue investing without your monthly salary. This amount set aside by you will serve you even in the event of a tough blow. In fact, an investment — even in real estate — is still an investment. There is no such thing as “zero risk”.
When 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 is made up of real estate agents, brokers, notaries, contractors, craftsmen, accountants, etc. Thus, to be successful in your real estate investing career, it is essential to build a solid network of people you can trust. A reliable real estate agent will help you search for off-market properties. A good contractor will complete the work on time and within standard. The more people you know, the more likely you are to get a good deal and increase your wealth.
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When you plan your project properly
Making a living from real estate is something you need to prepare for in advance. It is important to note that no one becomes a real estate millionaire from one day to the next. To do this, you will need a strategy and a precise plan of action to proceed with your project. There are many ways to invest in real estate. These methods include investing in old or new property, investing in rental property, reselling after renovation and crowdfunding. Hence it is essential that you define in advance the strategy you are going to adopt according to your objectives and the state of the real estate market. It would be a big mistake to neglect this planning task if you want to be successful in your project.
So, before you go and quit your job to make a living from real estate investing, consider the tips above to assess whether you’re ready.