Quitting job in 3-5 years with OPM?!

General Real Estate Investing
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Quitting job in 3-5 years with OPM?!

Rose Ganor
Member since 2024 · 4 posts · 3 votes

Hi bigger pockets community,

Many books and programs sell a dream of quitting your job in 3-5 years using OPM, even with little cash of your own. Your perspectives are appreciated on how this applies to the real world.

Interest rates are so high it seems impossible to build a cash flow positive portfolio using loans. You also do need to have a lot of cash or your terms will be even worse. Am I missing something?

Alternatively, the idea of finding high network individuals to invest as equity partners also is perplexing. Unless you have rich family or friends or are an incredible salesperson, why would strangers invest in a newbie? And if they do, how would you make enough cash flow after everyone else gets their cut when the margins are so tight?

Bottom line -- how could someone build a *profitable* real estate investment business with little cash of their own and without rich family/friends?

Many thanks,

Rose

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
Quote from @Rose Ganor:

Hi bigger pockets community,

Many books and programs sell a dream of quitting your job in 3-5 years using OPM, even with little cash of your own. Your perspectives are appreciated on how this applies to the real world.

Interest rates are so high it seems impossible to build a cash flow positive portfolio using loans. You also do need to have a lot of cash or your terms will be even worse. Am I missing something?

Alternatively, the idea of finding high network individuals to invest as equity partners also is perplexing. Unless you have rich family or friends or are an incredible salesperson, why would strangers invest in a newbie? And if they do, how would you make enough cash flow after everyone else gets their cut when the margins are so tight?

Bottom line -- how could someone build a *profitable* real estate investment business with little cash of their own and without rich family/friends?

Many thanks,

Rose


 Rose,

Drawing a parallel with your athletic career, consider the journey to turning professional. Just as in sports, the path to financial independence through investment requires experience and visibility.

In the world of investing, especially with OPM, experience plays a critical role. It's not just about learning the strategies, but also understanding market dynamics, risk management, and building a network. These skills are often honed over time, much like an athlete's development.

Moreover, context is key. Your cost of living significantly influences your financial goals. For instance, while $100,000 annually might be sufficient in some regions, it may not offer the same comfort in high-cost areas like Washington DC. This disparity highlights the importance of setting realistic and personalized financial targets.

Your journey in investment, much like a sports career, depends on strategic planning, skill development, and understanding your unique playing field. 

Hope this has been informative.

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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    2y

    @Rose Ganor

    you're not missing anything.  3-5 years gets you started.  10-20 years starts to get you a real portfolio that can start replacing W2 income.

    2Reply
  • Rose Ganor
    OP
    Member since 2024 · 4 posts · 3 votes
    2y

    Thank you @Nicholas L.! That makes more sense. 

    0Reply
  • Jake AndronicoBusiness Member
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    2y
    Quote from @Rose Ganor:

    Hi bigger pockets community,

    Many books and programs sell a dream of quitting your job in 3-5 years using OPM, even with little cash of your own. Your perspectives are appreciated on how this applies to the real world.

    Interest rates are so high it seems impossible to build a cash flow positive portfolio using loans. You also do need to have a lot of cash or your terms will be even worse. Am I missing something?

    Alternatively, the idea of finding high network individuals to invest as equity partners also is perplexing. Unless you have rich family or friends or are an incredible salesperson, why would strangers invest in a newbie? And if they do, how would you make enough cash flow after everyone else gets their cut when the margins are so tight?

    Bottom line -- how could someone build a *profitable* real estate investment business with little cash of their own and without rich family/friends?

    Many thanks,

    Rose

    Rose, I've seen massive success and incredible losses in RE investing. 

    Debt increases risk AND reward.     People tend to only highlight one side of that coin. 

    How do you build a profitable REI business with little cash and w/out rich family/friends? Take drastically more risk, or drastically more time. 
    415-233-1796
    0Reply
  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    2y

    @Rose Ganor No... you pretty much got it...

    You could try some of the "influencer's" techniques, and similar techniques taught by real estate investors.  However, they generally have more risk.

    Also, because some technique worked for a person, doesn't mean it will work for you...

    Investing is done with resources that you have.  Unfortunately, if you don't have the resources, its not very possible.

    here is my sort of "truth vs. reality:"  I think we'd agree that its true if you were a professional athletes you make lots of money (male more so than females, but that's not the point).  However, the reality is neither of us is going to be a professional athlete.

    As as you mentioned, its a "dream."  There is a balance between going for your dream, being supported to chase your dream, and understanding reality.

    Sorry.  Good luck.

    1Reply
  • Rose Ganor
    OP
    Member since 2024 · 4 posts · 3 votes
    2y

    Thank you @David M., great analogy about being a professional athlete. That puts things in perspective.

    0Reply
  • Rose Ganor
    OP
    Member since 2024 · 4 posts · 3 votes
    2y

    Thanks @Jake Andronico, this makes sense that it takes drastically more time or more risk.

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y
    Quote from @Rose Ganor:

    Hi bigger pockets community,

    Many books and programs sell a dream of quitting your job in 3-5 years using OPM, even with little cash of your own. Your perspectives are appreciated on how this applies to the real world.

    Interest rates are so high it seems impossible to build a cash flow positive portfolio using loans. You also do need to have a lot of cash or your terms will be even worse. Am I missing something?

    Alternatively, the idea of finding high network individuals to invest as equity partners also is perplexing. Unless you have rich family or friends or are an incredible salesperson, why would strangers invest in a newbie? And if they do, how would you make enough cash flow after everyone else gets their cut when the margins are so tight?

    Bottom line -- how could someone build a *profitable* real estate investment business with little cash of their own and without rich family/friends?

    Many thanks,

    Rose


     Rose,

    Drawing a parallel with your athletic career, consider the journey to turning professional. Just as in sports, the path to financial independence through investment requires experience and visibility.

    In the world of investing, especially with OPM, experience plays a critical role. It's not just about learning the strategies, but also understanding market dynamics, risk management, and building a network. These skills are often honed over time, much like an athlete's development.

    Moreover, context is key. Your cost of living significantly influences your financial goals. For instance, while $100,000 annually might be sufficient in some regions, it may not offer the same comfort in high-cost areas like Washington DC. This disparity highlights the importance of setting realistic and personalized financial targets.

    Your journey in investment, much like a sports career, depends on strategic planning, skill development, and understanding your unique playing field. 

    Hope this has been informative.

    7e investments53 Reviews
    WebsiteView Page
    2Reply
  • Jon K.
    Rental Property Investor · Perry Hall, MD · Member since 2016 · 591 posts · 606 votes
    2y
    Quote from @Rose Ganor:

    Hi bigger pockets community,

    Many books and programs sell a dream of quitting your job in 3-5 years using OPM, even with little cash of your own. Your perspectives are appreciated on how this applies to the real world.

    Interest rates are so high it seems impossible to build a cash flow positive portfolio using loans. You also do need to have a lot of cash or your terms will be even worse. Am I missing something?

    Alternatively, the idea of finding high network individuals to invest as equity partners also is perplexing. Unless you have rich family or friends or are an incredible salesperson, why would strangers invest in a newbie? And if they do, how would you make enough cash flow after everyone else gets their cut when the margins are so tight?

    Bottom line -- how could someone build a *profitable* real estate investment business with little cash of their own and without rich family/friends?

    Many thanks,

    Rose


    Something else to consider is that many people who are able to quit their W2 job through real estate in a short timeframe (3 to 5 years) are doing so by replacing it or at least supplementing their income with active investing activities such as wholesaling or flipping. In other words, they replaced their job another job. They're just working for themselves now instead of someone else.

    Completely replacing your W2 job with passive income in 3-5 years is much more difficult. I know someone who has done it but they're the exception and not the rule.

    All that being said, money follows deals and performance. Once you have a track record and have a good deal in front of you it's not difficult to find money for it. Plenty of hard money lenders out there that would be thrilled to lend to you.

    0Reply
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