To go full-time in real estate or to not

[Ivan A.]

I've been struggling with this question for a couple weeks now, and I'd really love your un-biased opinions on this life decision.

First of all, the facts: To comfort you, I do have almost 10 years experience and have done 2 successful flips & own $1M, but now to discomfort you: in order to go full-time in this exciting world, I would have to use a cash out refinance which so far appears I am approved for and is only weeks away from going through. It would roughly cover 1.5 years of my current yearly pay.

Now, the hard facts:

#1 I would be using debt to survive, and lose a massive loan qualification if I become self-employed versus employed going forward...Not a huge deal because I have a lot of private capital contacts and when there is a deal, there is always money to be found. A local investor I know converted to full-time on just 20k out of his 401k and now he's extremely successful

#2 I would have to hustle like never before--a pro cause I love this work, and my job is starting to get in the way of my maximum hustle. Most networking events with the big players happen in the daytime here and doing something as simple as delivering materials can offset a day or 2 of contractor work because I'm at the office

#3 I love my tech job, but I'm not used to being comfortable for so long, its unnerving

#4 I could try to change jobs to something that is more interesting, and could improve my negotiation/facilitation skills, but it would likely still not be my passion as much as real estate and training others...Plus it has more overtime potential (moving from programmer to business systems analyst would be my next career thought)

#5 Realistically, I could only probably start out with 2 small deals with these funds and still have breathing room, and it would obviously be a gamble. Worst case I guess I can go back to my job in likely in a couple months, the tech industry has a <1% unemployment rate here in Atlanta

#6 I would only be able to go after flips at the outset...Holds would basically keep me in a perpetual loop of debt at the outset I feel

#7 I would have to be a lot more frugal as opposed to my current spending lifestyle--I've already started to try to become minimalistic, so I got a little head start here

#8 I have a property that is highly valued in Downtown Atlanta, and I can make it cashflow twice the mortgage to give me a survival cushion, but that would probably wipe out 20-30% out of the funds. Therefore limiting my growth options in flips.

I guess another option is do at least 1-2 deals with these funds and stay at my job a couple more months. But I would personally prefer to jump right in because I feel every day that passes, I'm losing more time fully dedicated to my passions in improving neighborhoods/building wealth/public speaking/etc.

What do you think? Are there any factors I'm not considering with this pretty scary jump? It sounds pretty exciting to me but based on failing in a business before, I know I have to be prepared.

Ivan