RE Investment Full Time Or Not
Can anyone give me an educated guess here? Normally, how much money do you need to invest in RE full time?Assuming your spouse is working full time. I know the question is kinda vague but if you do RE investment full time. I like to know how you get started? With alot of money, or little money or with some money?
TIA.
Sam
My limited experience has been that this depends entirely on your personality. If you are the type who can deal happily with people, educating them, helping them, helping yourself, everyone wins... You can do it with NO money. I've seen it done. I can't do it, but I've seen it done. If you have lots and lots of cash, your options are multipied manyfold, and your participation and understanding are at your discretion. Your personality can pave the way for you, or you can work harder with some cash. Some traits you can fake or develop, but again, I maintain it boils down to an individuals personality. Zach
I went full time into real estate investing on my first deal. I'm the type of person that focuses his power like a laser beem rather than a lightbulb. I lost a good deal of money on the first deal and killed my credit. I'm slowly recovering.
[ Edited by myfrogger on Date 04/12/2004 ]
You are in a good position to start full time because of your wife's income. I will say that most people are no good at investing in real estate so the "safer" route would be to start out slow by doing things part time first.
I'm not one to advocate the safe route but most people can't sleep at night not knowing if the rent or mortgage will be paid next month.
REI is not a get rich quick scheme. It is actually quite the opposite. Once you get your foot in the door, you've got it in for an easier ride. Or you could constantly push yourself onto the bigger and better. More fun that way
myfrogger, you are a loose cannon! Hey, did you get that deal squared away with your parents place? Sorry, I don'y recall the details, but I was wondering.. Z
P.S. Loose-cannonism is fun and exciting, so please take no offense.
I'm a loose cannon myself! Z
Zach,
Thanks for the complement! I don't know what you are refering to as I didn't have any deal going with my parents place. My brother had a problem with his landlord and late fees. That was taken care of.
I'm currently looking at this old school that was converted to apartments. The place is overrun with poor tenants and the city wants the place gone to eliminate the problem. I'll go in there and clean house and make some nice cash flow on my first big rental property. We'll see I can't get my hopes up yet.
Thank you all for sharing your thought with me. The reason I asked because I have been working in the same line of work for 14 years as an engineer. It's a tough decision. I do not hate my job but I think I have more potential if I am a full time RE investor. My wife is working full time.
Thanks.
Sam
Hey there sam, I'm not full time yet but I probably could be. Kinda in the same boat as you. I have a good job making pushing six figures, but I love REI and do hope to go full time soon. To answer your question since I don't think anyone else did; if you have good credit you can start with about $3k-5k to do you first deal. Take the profits and roll on to your next one. Do this 4 times @ 15-20k each and your on your way to full time. I started about 12 mths ago and have bought and sold three. Average $20k per property. Two more on the table now with a combined profit about $100k. If you know how to sub-to you don't need any credit but a little cash, about the same in case you need to buy someone out. Bottom line you can go full time when you feel comfortable with yourself. I would strongly suggest doing atleast 2-3 properties before you go and quit your job though. Anything I can do to help PM me!!
GOOD LUCK!!
MIKE 8-)
Thanks MIKEDEVALL,
I've done about 5 deals so far. I know what you mean. It is tough to quit when you have a good job and good credit. I am thinking about buying couple more investment properties before quiting my full-time job. I am alot more motivated with RE. Thanks.
Sam
You get started by starting. First as a part timer like me and then once you create income streams and equity you can choose when to become full time. I watched, waited and hoped someone would do it for me for almost 3 years. I started by getting 2 properties I leased from the owners with the right to sublease. I binded the agreements on these 2 properties with a $10 check on each. Well last year on those two properties I netted over $12,000. For some reason I got serious again in November of 2003 and now own 7 properties with 2 more on the way. My advice is to spend 95% less time talking about RE investing and 120% more time looking for that first deal. It is always the hardest one. The amount of money you have is not the determining factor to the amount of success you will realize. You are the only one who can keep you from starting. I know, remember I did it to myself for 3 years. GET STARTED and GOOD LUCK!
I am not a full time RE investor. I suppose I could, but I have this little problem..... I hate to get rid of them once I own them. I currently own 33 units, and my wife wants me to sell one that is kind of far away. I love my day job as a used car dealer far too much to give it up, but on the up side, all of my properties will be paid in full within 15 years. Incidentally, I purchased mine with a total of $3500.00 out of pocket, including the car lot, so yes it can be done, although I believe location, prices and other income have a lot to do with it.
Good Luck,
Shawn(OH)
I'm doing it full time, and have yet to put any money down on a house. It is possible if you work with the right investors and people. The only money that I have personally spent is on advertising. I'm on my 38th house now. Just whatever you do, don't give up! Keep going, no matter what it takes. REI has been the most rewarding thing that I have ever done. Good Luck.