How Long To Be A Full Time Investor
I'm asking some of you fulltime experienced investors how long did it take you to transition from a job to fulltime investing. With most of us new investors working fulltime and doing investing to eventually become financially independent, I would like to get some advice on stratgeies to get to financial indepenedence from someone who is already there? 8-)
In my case it took about 5 years to step into the arena full time.
Most of this was due to lack of knowledge and how to imply it.
[addsig]
John,
At what level were you when you went full time. Did you have a certain number rentals giving you cash flow or did you have other REI cash generating methods.
I'm trying to get what someone who is already fulltime, what they did, and how they did it, sort of a blueprint for success
I started out just flipping real estate to other investors at wholesale. The first couple of years averaged just a few deals per year. When my real estate investing exceeded 5 times my JOB income I quite. If I remember correctly my first income producing property was purchased in my 3rd year of investing.
Most of my first 5 years as an investor was using my own money and than selling for profit and than I learned the no money down type investing from the old timer of goober investing.
This simple course set me on fire in the 80's and most of my deals have been done using the basic no money down method of investing, of course over the years I have perfected many investment strategies taught by a multitude of real estate goobers.
This is just my make up - give me a one sentence ideal to make money in real estate and I will research the method, study the method and if it can be supported by many laws I will just do it.
To be successful as a real estate investor start out by reading all you can on one form of investing, go to seminars, listen to CD's/tapes on the subject and when you are filled with knowledge go out and put that knowledge to work.
Avoid any one who doubts your ability and no matter how long it takes to do your first deal stay in the game cause it's the home runs that count not the strike outs.
[addsig]
I totally agree with John's ideas of focusing and never quitting. I started 5 months ago and hope to be fulltime in a year.
[addsig]
Congrats JohnMicheal thats inspiring!!
I believe that in everything that you do focusing on it and never quiting when things aren't working in your favor is what separates successfull people from unsuccessfull people. I see so many investors giving up in the beginning and not sticking with it becasue they want instant gratification. I have also talked with investors who have been doing it for 10 to 20 years and they now are reaping the benefits of sticking out the task. The moral of the story is NEVER QUIT!!
Took me 48 hours.
Got laid off on a friday was working full time in real estate by monday morning.
Maybe you could elaborate commercial on what you did first.
Oscar, why were others quitting?
For me, I got laid off 2 yrs ago and have been full time since... change of thinking, goals, vision. Looking at options; grateful for the freedom to choose.
Looking at the cash flow side more seriously. [ Edited by ceinvests on Date 11/28/2004 ]
commercialking
That's what I call a great turn around.
One just simply has to get the knowledge, imply the knowledge and just do it.
My lifelong partner has been with me for 25 years and has seen many real estate transactions over this time but just recently stepped into the arena of real estate investing and her vary fist deal went like this:
Place a property under contract
Purchased $15 of FSBO signs
And in 24 hours had the home sold to another investor at wholesale and put $7,000 in her pocket with a $15 investment.
For years she was a spectator and when she decider to become a player she mad 7k in one deal.
Folks you simply need to get the knowledge, imply the knowledge and just do it!
Just like commercialking did, he become motivated overnight. Job loss can do that to you!
[addsig]
Can anyone recommend some specific resources that helped them out a lot. For example, books, seminars, or anything else?
I love RE but never stepped in due fear of loosing. In the last few years, I watched many properties double in price. Finally, about a year ago, I stepped in and started investing. Now I have 5 SFR all in nice neighborhoods and rented out with some negative.
My also have a goal is to become a full time investor and to about 20 of these properties. Prices in CA have gone up but rents are not catching up. So the thought of having 20 properties with negative is not encouraging. I don't see how I can accomplish my goal without having a job to cover all the negatives. Should I be investing in a different sector of RE? Any thoughts? Thanks in advance.
I believe that when you buy a piece of property for investment you should know what you ROI is before you buy. You should know if you will recieve negative cash flow every month or your going to have positive cash flow. You should only take negative cash flow in my opinion if you know the area will appreciate rapidly and you can get a big return after you sell the property. Buying negative cash flow properties and counting in the tenant to be on time with the rent is very risky. ALWAYS run your numbers before you buy the property to see if you van make money, if you cant go on to the next deal.
Don't mean to sound like a super noobie, but where can i go to get what all the abrevaition definitions that are commonly used, and how to calculate those that need to be. example FMV ROI ect.?
Quote:
On 2004-11-28 17:38, mojojojo_1 wrote:
Don't mean to sound like a super noobie, but where can i go to get what all the abrevaition definitions that are commonly used, and how to calculate those that need to be. example FMV ROI ect.?
If you're a member, go to the MyTCI section and click on My Tools: there's a glossary of RE terms in there.
Otherwise, google each term and you should be able to figure out what they're talking about (ROI = Return on Investment, FMV = Fair Market Value).
Andy
Johnmichael,
Sorry for changing the topic but, I noticed that you stated to focus on one kind of investing and just study anything and everything in the method. Unfortunately, for myself I have been on information overload for the longest time now and it has set me back quite a bit. I just bought my first rental property with my own cash, but I really wanted to invest creatively. Unfortunately, contracts have been driving me away from these kinds of creative methods. Now, I am going to try to apply the carleton sheets program to my investments. However, my question is, if your focusing on one kind of investing method, what do you do with the deals that could be done by another method of investing? Do you just skip over them or do you try to make them work? Thank you in advanced. :-?
tjm,
Yep, analysis paralysis, can be a problem for some. Better to get out there, set goals, business plan, and do something, even if it is work for others to learn.
What you could do with the deals that are not your focus, is birddog them. This is what I intend to start doing since I like to look but should not be focused in too many directions. Build a network of contacts.
Quote:
On 2004-11-28 15:19, povrtsux wrote:
Should I be investing in a different sector of RE? Any thoughts? Thanks in advance.
Yes you should be investing in a different sector. How about another sector of the country? You can only manage so many by yourself as it is. I'd rather pay a property manager half my positive cash flow than run negative on my own.