New Investor - Possible to Leave Job Prior to Investing?

Question

I'm new to the real estate investing space. Currently, I'm living in New York City. I've been here for the past 6 years, but I grew up in Ohio. Over the last 6 years, I've worked to save money, and now I have ~$60k liquid that I am interested in investing in real estate. I think the markets in NY and the East Coast generally are too expensive, and I'm more interested in buying cashflow property, likely in Ohio.

Ideally, what I'd like to do is to leave my current job, spend some time researching on the ground in Ohio, and buy a few properties with 20% down payments. I'm worried that if I leave my job however, I'll never get approved for a mortgage, even though I could easily get another job. Is this even possible? How do full-time real estate investors do this? Do you have to start investing while maintaining a job/income, or is what I'm describing feasible? I really appreciate your time and any advice you can give me!

Juan Reyes · Answer

I personally have always worked for myself, so I understand what you want to do. It isn't easy at all and it doesn't get any easier as time goes on, but if its your passion it can be very rewarding and fulfilling. As long as you can live with this and not let it stop you then you will be fine.

I personally suggest that you stay in your job and begin investing when you have the cashflow from your job because $60,000 can go very quickly when looking for deals, investing in them, and at the same time feeding yourself.

I would first narrow down exactly what you are looking for, and get in touch with realtors out in Ohio that can help you find properties. Then maybe take a little vacation from your job and go to Ohio, to look at the properties you have narrowed down, this way you can decide which one to take action on.

At the same time, knowing that you have this idea, of being independent, in mind. I would suggest that you do a self evaluation and figure out how you can lean yourself out, because you will need to be as lean and flexible as possible in order to take advantage of good opportunities as well as deal with the inevitable ups and downs.

Unnecessary bills and expenses can hurt you and your investing career. I suggest a self evaluation and then a realistic adjustment of your current habits.

The most important part of being independent and investing is being disciplined and not letting your emotions dictate your investments. If a deal is not good, then don't justify it, just scratch it and move on, there are many many deals out there, its just a matter of being more active and working harder than everyone else to find them.

These are all just my opinions, you should take everyone's opinions, consider them and then make a decision that you can live with.

Best of luck to you on your journey, I hope you do great!

The BP community is a great one to be a part of as I think many of us actually want to see each other succeed.

Mike McCarthy · Answer

Agreed with the others.  It will be hard to find loans with no income.  And many investors jump in and figure out it's either not working for them or it isn't what they want to be doing.  At least if you have a job to fall back on, you can get out and start over.  With a year of no income under your belt, you may run into problems.

John Knisely · Answer

No way @Michael Toth. Sure its feasible but I'd play it safe. Fulltime real estate investors often do this by starting part time until they have a network, a track record and some semi-passive cashflow from their real estate investments. You don't HAVE to do it this way. If you are going to hustle hard and willing to live lean and flexible, it can be done.

A lot of us are playing the slower game, keep the steady income flowing for as long as you can manage before its just time to take the leap of faith. Don't jump out of the boat 100 feet from shore expect to hit dry land...gotta get a little bit closer to do that!

Ryan Hobbs · Answer

Ryan Hobbs

Having a job that you have held for 2 years is always a plus when doing mortgage activities.  The stronger the borrower is the better chances you have with underwriting.  When focusing on flips alone then a job doesn't matter as much as your cash reserves.  Our focus here at Noble Mortgage is to provide you the best options given your situation.

Thomas S. · Answer

If I were you I would move now and find another job. Continue saving and once you have 2 years in that job start looking at investing at that point.

Having a high paying steady job is essential starting out if you want to be successful. Not only do you need it to get financing you also need it to generate the majority of the money you will need to continue investing.

Make sure you find your new job before you quit your present job.

Jack B. · Answer

Fat chance unless you find a private investor that wants to bank on a virgin real estate investor...and even then it will be at a much higher interest rate.

New Investor - Possible to Leave Job Prior to Investing?

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