Should You Do Real Estate Full-Time?

Many self-acclaimed real estate gurus state that everyone should quit their jobs and immediately jump into full time real estate investing. They often claim incredible results from students with little experience. We would like to caution that life-changing decisions are not usually simple and that full time investing is not for everyone. Let’s discuss some pros and cons of full-time versus part-time investing.The Full-Time InvestorEntering into the real estate profession on a full-time basis offers several advantages over a part-time commitment. Being successful requires you to develop knowledge in many aspects of real estate, and more time focused on real estate leads to greater knowledge. The more your learn, the more you earn, since you do not need to rely on as many professional services or partners for help. You also learn to recognize a deal (or a dud) faster, which gives you more time to do more business or spend with your family.As a full-time investor, you work your own hours. When we say “full-time,” that may mean as little as twenty hours per week if you are good at finding deals. The rest of your time can be spent pursuing other vocations or hobbies. Or, if you are so inspired, you can work forty or more hours and use the extra cash flow to buy rental properties or diversify your holdings in the stock market. The point is that you need to satisfy your cash flow needs before you can start “investing” your money.One final point you should consider is whether you want to be “self-employed.” If you have always worked for someone else, being your own boss sounds very attractive. In some, respects, this isn’t quite the truth. Being your own boss means being an accountant, bookkeeper, stock clerk, receptionist and office manager all-in-one. You have to do deal with tax returns, payroll, office supplies, customer service, bills and all the other hassles that come with a business. You don’t have friends to chat with at the water cooler. You don’t have paid health insurance, a company car and a 401(k). You take your problems home with you every night. Sound like fun? It is, once you learn how to master your time and run your business. Being the master of your own life and career is well worth the other hassles of dealing with your own business.The Part-Time InvestorThe part-time investor holds a “regular job.” This may be by choice or for the time being until his real estate ventures are bringing in enough cash to quit his job. If it is the latter reason, don’t quit your job because the real estate “guru” told you so. Quit your job when it is not worth the income that it brings you. In other words, if you are making more money per hour flipping properties on the side, you are at the point that where your regular job is costing you money. Only then, is it time to quit!One of the advantages of starting out part-time is that you can maintain cash flow while learning the business. It may take weeks or possibly months to find your first deal. That same deal may take several months to turn around, especially if you decide to fix it and sell it retail. Think twice before telling your boss you’re leaving; you will have plenty of time to make the career switch once you have real estate experience. You may, on the other hand, like your occupation. If so, continue to work at it, and invest in real estate on the side.The best case scenario, if you are married, is to have one spouse work a regular job. The other spouse work the real estate business for creating wealth, retirement income and a nice college fund for the children. Of course, in today’s market, you could be laid off due to unforeseen circumstances. If you earn additional income flipping houses and invest the proceeds into rental properties, you will be covered if your main income is lost. This is especially the case for married women that often forego a career and raise a family, only to find themselves divorced with no means of making a living. We don’t want to sound cynical about marriage, but with a fifty-percent divorce rate in America, it never hurts to have a system for making money.Someone with a full time job tends to have little free time to focus on real estate. A part-timer should learn most of the same skills as a full timer. Thus, the key disadvantage to flipping properties on a part-time basis is that it takes sacrifice to learn the business. Something has to give; television, lazy weekends, meaningless hobbies and even some family activities must be compromised. As with any education, time spent learning about real estate will bring its own rewards, especially if the people in your life understand your goals and your plan to achieve those goals. If you are married, make sure your spouse reads this material with you and participates in the fun process of making money.Treat Real Estate as a BusinessPeople are lured to real estate because of the quick buck that it promises. Don’t hold your breath, you won’t get rich quick. An “overnight sensation” usually takes about five years. More than ninety percent of the people who take a real estate seminar quit after three months. Real estate investing should be treated with the seriousness of a career. It takes months, even years for a business to cultivate customers and have a life of its own. You need to treat it like any other business.

Real Estate Investing – Make Money in Real Estate With Little Or No Money

It’s a contemporary notion that in order to succeed in the real estate business, you must have a lot of money. The concept is only partially true. Money can be made in the real estate market with having to invest lots of it. You might conclude that if money is not that essential, maybe you need to have a handsome financing facility or suitable asset to use as collateral. Again, I will tell you that even those are not necessary for starting your real estate business. What I am about to tell you is not a short cut to riches. Infact, you can make a career out of it. The concept that I am talking about is called wholesaling. In order to become a wholesaler you do not need to have lots of cash. Infact, you don’t need to have a good credit rating either.What is wholesaling?Wholesaling means finding a seller who is willing to sell his property for a slightly lesser amount than its current market value. The next part is to find buyers for the same property and sell it at a good price. The key to success in this field is the wholesaler’s communication skills and his ability to market his property aggressively.If you have the necessary skills, you can become a successful wholesaler and make a few grand on every sale with no down money of your own.. Wholesaling needs a few skills. Some of them are listed below.Finding and locating good propertyThe most effective way of finding a good property is to drive around the neighborhood and keep your eyes open. You can also scan internet listing sites or the classified sections but the actual survey of a location and on-the-ground inspection of proposed sites is way better than browsing locations on the net.Ever heard the saying: birds of a feather fly together? In order to get into the real estate game you should surround yourself with people who are already into this business. If you are moving in a circle of real estate investors and agents there is a strong possibility that you will get to know about possible investment venues is by the word of mouth.Tune up your interpersonal skillsWhat a wholesaler actually does it to persuade a seller to sell his property to him. This needs cutting edge inter-personal skills since it takes a lot of convincing to make someone sell his property to you at a discount. Actually this is the real job of the wholesaler.The genius to sellYou can buy all the properties at your desired price but if you don’t have buyers for those properties the sum total of all your efforts will be zero. In order to get potential buyers to contact you, get your property advertised in the classified ads. Also spread the message around within your circle that you have great properties for sale. You are sure to get calls from potential buyers. Keep record of all such buyers since you will need them for your next assignment. It is better to establish working relationship with these customers so that whenever you come across a great property you have a ready -made pool of buyers to choose from. It is essential that every one in your circle knows that you are in the real estate business.When will you start making money?I wrote earlier in the article t that this is not a quick-rich short-cut. The process will take time and patience. In the initial stages you may encounter some difficulties but with consistence and perseverance, you will acquire the essential skills for this business.