Can You Invest in Real Estate with a Full Time Job?
A lot of people think that in order to be successful they need to quit their job and pursue real estate investing full-time. It’s a tough decision to make as there are many benefits to keeping your job as well as disadvantages to consider.
Here’s my take on it:
Yes. There are lots of ways to make money in real estate and every strategy and technique differs in time required.
Some strategies may involve you being active in your business and require 40 hour work weeks. Other strategies can be more passive and require 40 hours all year.
The beauty of real estate is the variety of options at hand and creating a business that suits your lifestyle, financial situation, experience, education, and goals.
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#1: Your Job Income Fuels Growth in Your Investing Business
One of the great reasons to invest in real estate while you have a job is that your job can provide you the income needed to fund your investment business.
Depending on how much money you save, you’ll have money each year to put to work in real estate investments.
You’ll also be able to reinvest the money from your investments because you’ll have your job income to support your cost of living.
Someone who invests full time and has no job may experience slower growth due to the fact they have to use the income from their investments to fund living expenses.
#2: Your Job Gets You Qualified for Bank Financing
Another important reason to keep your job when you’re first starting out in real estate investing is the availability of bank financing.
To get a loan from a bank, you need to show proof of income and have a good credit score.
Your job will be the proof of income that gets you approved for bank financing.
Often times entrepreneurs and investors who don’t have a job and are full time real estate, struggle to get loans from banks because their business isn’t generating enough income yet or they lack 2-3 years of proof of steady income.
Your job will be a great support tool in the early stages of your investing business until the ball gets rolling and your business is operating well enough to allow you to quit.
Ways to Invest Part Time:
- Buy rental property and hire a property manager
- Partner up in larger investment deals as a limited partner
- Act as a hard or private money lender to other real estate investors
- Invest in notes (mortgages)
Real estate can be highly profitable whichever way you attack it.
However, don’t simply decide to quit your job and become a full time investor because you read about other investors who have been successful doing it that way.
Having a concrete plan for how you’re going to proceed in real estate is essential and the reason why we cover creating your business plan here so you have a road map to follow.
Overall, if you hate your job then decide how well off your financial situation is currently in sustaining you if you decide to jump to real estate full time.
If you love your job, great. Don’t stress about if it will hurt your progress as an investor because in many regards it may actually help your business and progress instead!
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