Quitting everything for full-time investing, big mistake?

Question

I recently decided to become a full-time real estate investor but quickly realized the amount of time I have on my hands. I’m in the process of getting my license and Ive been doing DMs, barely going outside. What are some things you do as an investor on a daily basis? Do you have a regular job?

JD Martin · Answer

I worked a full time job my entire career until I retired early in my 50s, but I had a pension. My RE made enough that I could have quit 4 or 5 years earlier but I wanted that pension, liked my job and wanted to have so much income that I couldn't possibly outlive it. You are way too young to look to live off investments, as investing infers you have something to invest. So find a career you really like and work your RE on the side. Unless you love RE so much that you get a career in it.

Charles Perkins · Answer

More than 10 years ago, I retired from my day job and have actively managing all of my rental properties. Soon I will be completing a major remodel and will be beginning a short plat.  Eventually I will have two duplexes on this large property.

While RE investing is generally passive, in my case I actively manage and qualify as a professional RE investor.  It is possible to quit your day job, but you need a plan and sufficient income to support the decision.

Ian Hogan · Answer

I'm an investor and agent for investors while also having a regular job but I think the answer can often be the same for someone full time investing and "part time" investing. DMs and reaching out online is one thing but getting out there to meetups with other investors and boots on the ground at open houses, etc is a great way to get involved. A lot more trust is built in person vice someone behind the screen, and real estate investing is often a relationship and trust game. If you are full time investing or as an agent you theoretically have an edge to be able to do more of this relationship building while folks doing it "part time" would have less availability.

David Ramirez · Answer

This highly depends on your financial situation.

My opinion is that you should always have an active income to be able to invest passively. Now, an active income could be in the real estate space too, such as flipping properties, working as a real estate agent, appraising, lending, among other things.

James Mc Ree · Answer

Keep your job!

You asked what are some daily things investors do which says to me you don't know what you are getting into yet. Focus on learning what to do, how to do it and finally do it with your W-2 income supporting you. You don't need to be "all or nothing" to try it out.

You didn't indicate how much wealth you have supporting you. It's not a concern if you are already financially free of the W-2 job.

Carlos Valencia · Answer

Hi Shivani,

That's great that you became a full time investor. I'm assuming you are now at a point where you have enough money coming in to cover your minimum living needs. The only challenge when being a full time investor that depending on how much passive income you are generating from your investments that can slow you down in your growth or maybe you have enough to continue at a comfortable pace. Not sure what your overall goal or your end game. I would if you have a lot of time on your hands now its a good idea to go back and get a w2 gig for active income to help you borrow money using conventional mortgages as opposed to using more expensive money like hard money or DSCR loans. You don't necessarily need a w2 for active income it can also be anything else like self employment works too you just have to wait one year of tax returns but run your business for at least to years to use it and make sure you don't write off too much as you want to be able to use the income to qualify for a mortgage. These are just some tips to help you decide on weather you need active income still or not. Good luck on your investing journey.

@Albert Bui @Matthew Kwan

Marcus Auerbach · Answer

The vast majority of investors have W2's. I see it with our 800 RPA members here in Milwaukee. Full time happens with 100+ units and often you see people scale a business on the side, like PM, construction or something unrelated like a resort in Costa Rica ;-) I am no different - I "retired" from my corporate career in 2015 and quickly realized that I can only watch so much daytime TV.

I did not want to get into property management for others, so I chose the brokerage side and we are now a top 1% team. So, I am back where I started and have a W2 again (in my own biz) and we have a small team managing the rentals, I only get involved with buying and with bigger construction issues.

I also volunteer my time as a board member of the RPA (Rental Property Association of Wisconsin), a non-profit REIA and we focus on education, landlord-tenant law and lobbying on behalf of landlords in Madison.

Networking is important especially in the beginning, because it gives you confidence to see other people's success when you are getting started. And while you can leverage networking in some ways we just grew without. I also think that partnerships are very dangerous. I have seen too many turn into nasty divorce situations. If you partner, do so only for a limited time with a clear exit.

Mike Dymski · Answer

This is a first.  We've seen thousands of posts where people are looking to get out of their job and away from people, bosses, and customers and want real estate to be that way out.  You're discussing the opposite.

Almost all of us work a day job unrelated to real estate and have busy families.

Sam Applegate · Answer

Account ClosedThis is a great question, and while I wish I could give you a direct answer, it really depends on what you want your life to look like.It might help to figure out your end goal first and then work backwards from there.For example, if your plan is to buy a few properties and live off the passive income so you can focus on your hobbies, that’s going to be a completely different path than if you’re looking to network with limited partners and start your own syndication fund.

Drew Sygit · Answer

Account Closed you have no properties yet?

Then why did you quit?

You should be analyzing properties from Zillow to learn values & rents, to see what works.

Networking with other local investors to learn from their mistakes.

Building your network on social media.

And more...

Quitting everything for full-time investing, big mistake?

Most Popular Reply