How many do this stuff full time and are doing well

Question

I am hoping I can get the answer to this practical question. Yes, I know "if you can conceive it you can achieve it" and "always think positive." I believe that and I get it. I want to know how many of you are actually doing REI full time, and are you making the kind of salary you were hoping to earn. Also how do you all provide health insurance for your families?

Thank you in advance to all who help me with a constructive answer.

Chris Bruce · Answer

Hey Steve what I would suggest you do is start to close deals and stack up a years salary of what your making now. Then you will be in the position to go from part time to full time. I've been full time investor since May 2010. I can say it was the best decision I made to leave my job. I left without giving a two week notice and having a 1 year old kid to take care of. I didn't have a year's worth of income stacked up in the bank. However I a risk taker. I knew I would have to take massive action to ensure money came in every month. So if I can do it. I know you can. Fortune Favors The Bold.

Geof Greeneisen · Answer

Steve,

We love going to Fenton for dinner. I left a salary position 3 yrs ago. My goal was to create a platform from which I could buy, sell, build and develop real estate. I've been able to do that however it has been a challenge.

Last year I focused on replacing the salary I left by acquiring real estate assets that produced an equal positive cash-flow, in theory replacing active with passive income. I was only able to replace 40% of that salary with rental income. An additional 40% came from real estate consulting, property management, and misc. commissions but it has yet to match the salary I left behind.

Health insurance is a big concern for me. My wife has pre-existing conditions which means to insure our family as a sole proprietor our insurance bill will exceed $2k per month. I have 9 months until our rates kick up to that amount and I am scrambling. So far I have not found a solution other than to try to make more money to cover the cost.

When I was young and single, I could take tremendous risks. Now with a family, I require substantial cash reserves which prohibits my ability to take advantage of current opportunities.

Mike H. · Answer

I don't know that investing could ever be a full time job.
It would almost be like retiring wouldn't it?

If I ever get enough income to replace my salary, I don't think
I would do real estate full time. I think I would cash in my 401k and buy a franchise and make that my full time job and real estate my supplementary source of income (even if it would be greater).

But the franchise seems like a solid risk.  Not going to get rich but at least my drive would be shorter and I'd be my own boss. And if I needed to go meet a contractor or something during the day, I could take off.

Thats my plan anyway.

Jim S · Answer

I maintain another business which I work fulltime. It supports my lifestyle plus some. I look at RE as my fun 2nd business which its' income is pure gravy. That way there is never financial pressurein RE  to preform just my own self goals to achieve. Plus there is a Lamborghini calling my name in the near future  :)

Mark Yuschak · Answer

I'm a fellow investor in Genesee County.  I was in a similar situations in the early 2000s.  My wife and I acquired some rentals in Flint, Grand Blanc, and Burton.  It was a nice subsidy to our incomes, but not enough to live on.  However, I really enjoyed the investing side of life opposed to the day job.

Finally in 2010 I was lucky enough to get laid off from my desk job in Troy.  That was one of the best days of my life!  It finally pushed me over the edge to actually pursue my ambitions of working for myself and doing what I love.

2010 was an excellent year and 2011 was very good.  As a matter of fact, 2011 will be really tough to top.  I have done (and continue to do) rehab flips, rehab holds as rentals, land contract flips, note buying, landlording, property management, consulting, and am a broker.

If you'd ever like to get together and talk more, I'd be glad to do so.

Patrick Snyder · Answer

I'm happy to see the success that other Michigan investors are having!

Mark Forest · Answer

Thanks to all who have replied.  There is a lot of good honest information here.  Please feel free to continue the discussion.

Mark, you and I talked briefly at GLA.  I let my membership lapse, but I will have to renew and continue to go to meetings.  I will see you there.  Maybe you can help me be a more active investor.

Jason A. · Answer

I make enough rental income to provide for my family (wife & 3 young kids), but I still have a full-time job to provide the medical benefits. It is very frustrating being only a good deal or two away from being a full-time investor! I can see the light at the end of the tunnel but just can't get there fast enough! Best of luck.

Geoffrey Murphy · Answer

Geof, Kudos to finally making the jump into RE full time. Your in a position that most people would love to be in. I totally understand its hard right now, especially with health insurance and having to support a family. However, here on BP we have a decent amount of members that are in your same postion and that is making this business work for them and there family. Continue to browse that threads, blogs ect and network as much as possible. YOU CAN DO IT!!

P.S. i don't think you would have left your job if you didnt believe this business could work and if you were not ready!!!!

Steve: Great post! research some of the older threads if you don;'t get alot o responses. We touch this topic quite a lot...Keep Pushing!!!

Geoff Murphy

Albert Hasson · Answer

Steve, I think bottom line is that it's hard to leave a full time job and do REI full time.  The full time job provides health insurance, retirement benefits, disability insurance, etc.  You would need a tremendous amount of capital to acquire enough properties to get enough rental cash flow to replace a 100k/yr job.  You could try the fix and flip route but depending on where you live the opportunities may or may not be there. Plus, not all those deals go well even with great due diligence.  I think the more realistic approach is to set a goal for yourself and acquire income producing property over time that would gradually replace your income.

How many do this stuff full time and are doing well

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