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When you invest in real estate for the purpose of making a living from your income, one of the first questions you ask yourself is, “When can I finally quit my job?” And for good reason, real estate investing is a lever of solid wealth used by investors of all backgrounds. However, when you start at the bottom of the ladder, and when you combine your daily work with real estate research, having a job by your side does not allow you to focus full time on real estate investing.
Therefore, having a 9-5 job can slow down the investment process. However, as an investor, I advise you to keep your zeal in spite of everything even if you think twice before leaving your job. In fact, work is not necessarily a brake on a real estate investment. On the contrary, it is a powerful lever for capital creation, at least at the beginning of the process.
Related: 4 undeniable truths you should know before investing in real estate
The benefits of having a job
Work, even if it takes time, guarantees you a monthly income through your salary, part of which you can save. Having a job makes it easier for you to create capital, which will allow you to invest in real estate. You can use these savings for your investments, knowing that your monthly expenses will be covered by your salary. From a mortgage standpoint, having a job helps you gain the trust of the bank and lenders. When it comes to lending, investors do not have the same benefits as employees. At some point, you may want to consider leaving your job. This time may come sooner or later. It all depends on your situation. Here are some clues to help you identify it:
When you have enough confidence and knowledge to make a living from real estate
The work is a safety net. It is essential to be able to live and also support your family. When you are sure that you can do it through real estate, you can leave your job without any fear. To do this, you must first master the risks associated with investing in real estate. In general, owning a property is not enough to generate enough cash flow to live on. You need to multiply your investments. And to find profitable properties, there is no miracle. You just have to be more discriminating with the help you render toward other people. Investing in real estate can be learned if you want to make it your business. Therefore, you need to make sure that you have the foundation to multiply your return on your investment. Without the knowledge of key information, such as taxation or the start-up of operations and financing, you are very likely to make bad investments.
Related: 5 Amazing Tips To Turn Real Estate Into A Real Fortune
When you save enough money to keep investing
The job provides some insurance with banks or financial agencies. If you leave your job, these agencies will not have the same level of security if you buy on credit. Therefore, leaving work too soon can affect your ability to finance. You need to plan your exit plan well and set aside a substantial amount of money to continue investing without your monthly salary. This amount of money that you have reserved will also be useful in case of a hard blow. In fact, an investment — even in real estate — is still an investment. There is no such thing as “zero risk”.
When you build a strong network
Real estate investors don’t usually work alone. They are surrounded by a network to make the best investments. This network is made up of real estate agents, brokers, notaries, contractors, craftsmen, accountants, etc. Therefore, to succeed in your real estate investing career, you need to build a strong network of people you can trust. A trusted real estate agent will assist you in finding real estate off the market. A good contractor will finish the job on time and within standard. The more people you know, the more likely you are to get a good deal and increase your assets.
Related: 8 Ways to Finance Your Real Estate Career
When you plan your project correctly
Living off real estate is something you need to prepare for in advance. Keep in mind that no one becomes a real estate millionaire overnight. To do this, you will need a precise strategy and action plan to move your project forward. There are several ways to invest in real estate. These ways include investing in an old or new property, investing in a rental property, reselling after a renovation, and also crowdfunding. It is therefore necessary to define in advance the strategy to be adopted based on its objectives and the situation of the real estate market. It would be a big mistake to neglect this planning job if you want to succeed in your project.
Therefore, before you leave your job to make a living from real estate investing, consider the above tips to evaluate whether you are ready or not.