Ever quit your job too early to pursue your REI career?

Question

Just curious as to if anyone has ever quit their job to go into real estate investing full time, and doing so too soon.

I work 60+ hours week right now and make good money. I'm very knowledgable (at least I think) on the many different types of REI, although I'm not 100% positive on which route I want to ultimately take to begin my career as an investor.

My job is absolute Hell, for lack of a better word. I've had worse, but I just cannot stand giving up my entire life for a job, just so I can come home too tired to even function. Literally eat (sometimes skip that part even) and go straight to bed.

Yes, I know real estate investing is a huge task and that I may work even more than I do now when I'm starting.

I'm totally okay with that. Because you know what happens 5 years down the road if I stay where I'm at? I'm in the same exact spot, working the same exact job, doing the same exact ****.

If I were to take that 5 years and hustle towards myself and my own business, the possibilities are endless. The possibilities are DEFINITE if I stay at this 9-5.

I'm fairly sure I'm going to work for the next year. My job pays well, don't get me wrong. I should be able to save about $40,000 in the bank over the next year. But after that, I truly believe I'm going to put in my 2 weeks and go for this thing full force. I have a tax break right now which is why I make so much ($1,300 per week average), but I'll get taxed about $400+ a week after that runs out.

I'm 23. I have no financial ties. I know I'm still young, but this is a now or never decision for me. I'm on a lease for the next 8 months. After that's over, I'd like to house hack a duplex of some sort and become a licensed real estate agent. Live for free, have that $40k in the bank (with my finger on the trigger), and save up a good bit of my commission income.

I'd like to know people's opinions on this. I'm an extremely driven individual. I've loved real estate since I was a teen. I started working construction with my dad at 15. I'm a businessman at heart and have a raging entrepreneurial spirit. So, my passion isn't anything to worry with.

I also research this stuff heavily, borderline religiously. I'd like to do everything, really. I'd say I'd like to do about 80% BRRRR strategy, 10% wholesales (of rehabs I don't want to get into or can't work at the time), 5% rehabs, and 5% financing other people's deals in sort of a venture capitalist way. Those are just super hypothetical numbers, by the way. Just to give you a ballpark idea on my goals.

I also do know that it's a lot harder to invest without a W-2 job, but this is fine with me. I'm a true believer that if the deal is good enough, financing will come... Even if it's not easy.

But anyways, how do you guys feel about my decision? I'd like some opinions. Negative or positive, just be real.

Michael Wagner · Answer

Kudos for realizing that "dying for a living" is no way to spend your life!  Your enthusiasm is also awesome and I will not rain on that parade.  The most important thing you need to do in the next year (as important as saving the $40K) is to do some real soul searching and figure out what you want your life to look like.  The REI world is filled with people who climbed the investing ladder only to realize it was propped against the wrong wall. Dont be one of those people.  You need to create a Vision for your life!  It will change as time passes but you need to dial in what your values our.  Define success. Is it fancy cars and a big house or free time?  No judgement here...either one of those is fine as long as it is what you want.  Lots of folks chase fancy cars and big houses just cause society tells us too...then they get them and arent happy because it turns out what they really wanted was freedom and those "things" keep them from being free.  Others truly find joy in busting their tail til they are six feet under and having nice things is a tangible expression of their efforts.  Again, the only way to go wrong is to chase someone elses definition of success rather than your own.  So, with that, figure out what you want your life to look like and the pick an investment strategy that will work with how you want your days to look.

Beyond that, my two cents is that its easier to do now than it is once your strapped with a mortgage of your own, a spouse, kids, etc. House hacking is a great way to get your first property while you are still "employed".  From there (or even before then) you might do some part time investing to get some real experience before diving in head first.

I. like you knew I wanted to be in REI from the time I was in college.  Started in residential landlording and after 4 years (13 houses) and lots of headaches later...I realized that my plan was going to take too long to execute.  I was stuck in middle management as a Physical Therapist Clinical Supervisor  and was feeling just as you described above.  So I pivoted to a different niche and bought a self storage facility.  I quit my job the day I closed on that facility (despite the fact that it was losing $2000 per month) and have never regretted it. Fortunately I wasn't tied down by big house payments, car payments or other consumer debt so I could make that move (which most people thought was crazy given that I had spent $250,000 on my degree to be a PT)....

This is way more long winded than I intended so I apologize but my last peice of advise would be to find a mentor...one for business and one for "lifestyle" planning.

Wishing you well,

Mike

Anton Watt · Answer

Some People may disagree but I say the best thing you can do is jump in. Make sure you have at least 5 months of expenses saved up and learn a little about wholesaling then jump right in. I remember I did just that. I quit my job and started wholesaling in Atlanta and the day before I cashed my first check my debit card was declined on a $4 meal at Burger King. The next day I have $4,000. Just do it.

Zach Quick · Answer

@Timothy Metra I agree with the others in that if you are that passionate about quitting I would try and get that duplex (or a four) now while you are easy to lend to by bank standards.

Is there a different job you can do that may bring more free time and enjoyment? Or is your current position something that can be done on a part-time/contract hours?

Max T. · Answer

Giving up the W2 will make financing much harder.... but do it now before you get married and have kids!

If you think its a lot of pressure/stress not having a regular paycheck... just wait until you have a family depending on you!

Anton Watt · Answer

Yes so the idea of never having a stable paycheck never gets easy. The comfort is that since I quit i've never needed a stable paycheck. I have made more money last year than any before that. It allowed me to travel all over the world. However I do probably work 60 hrs a week lol

Timothy Metra · Answer

@Chinmay J.

Thanks, bud. I planned on leaving on a good note. Not even putting in a 2 weeks notice. I was going to put in like a 2 month notice, really. And then type a goodbye letter to give to my bosses on the way out the door, saying how happy I was for the experience and whatnot and that it was a personal decision and nothing negative towards the company.

My only concern is I work about 60 hours a week and it's hard to build a reasonable portfolio on the side of that, plus my job is labor intensive. Not compared to construction, but it's definitely not a desk job.

I appreciate your concern. I still have a year left to decide on what to do. Whatever I do, I'll have at *least 6 months worth of finances in cash sitting in the bank.

Chinmay J. · Answer

@Timothy Metra - If I were you, I would do both at the same time and ease my way out of W2 job. If your employer is giving you hell, you can try and get a less demanding job that is less mentally taxing.

In the meantime you can still become a realtor, start house hacking, buy a duplex etc. I am about 12 yrs older than you, and I have been doing both for last 4-5 yrs. Finally, after having a good rental portfolio, I am at a point where I will be starting to flip houses. I got my real estate license in 2015 and grew my rental portfolio. I am taking the slow route to ensure what I build lasts.

I have seen a lot of people who quit the job too prematurely and then end up struggling later on.  Once you quit the job its hard to get back in the workforce. Employers don't look at you as a responsible individual.

I do love your enthusiasm.

Timothy Metra · Answer

@Anton Watt

That's a great story, my friend. How'd you handle the stress of not having a promised paycheck and all? Does it have more good moments than bad, to finally go through and REI full time? I feel like it would be stressful at times but ultimately worth going through that stress versus living an unhappy life for a day job.

Ever quit your job too early to pursue your REI career?

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