Should You Do Real Estate Full-Time?

Many self-acclaimed real estate gurus state that everyone should quit their jobs and immediately jump into full time real estate investing. They often claim incredible results from students with little experience. We would like to caution that life-changing decisions are not usually simple and that full time investing is not for everyone. Let’s discuss some pros and cons of full-time versus part-time investing.The Full-Time InvestorEntering into the real estate profession on a full-time basis offers several advantages over a part-time commitment. Being successful requires you to develop knowledge in many aspects of real estate, and more time focused on real estate leads to greater knowledge. The more your learn, the more you earn, since you do not need to rely on as many professional services or partners for help. You also learn to recognize a deal (or a dud) faster, which gives you more time to do more business or spend with your family.As a full-time investor, you work your own hours. When we say “full-time,” that may mean as little as twenty hours per week if you are good at finding deals. The rest of your time can be spent pursuing other vocations or hobbies. Or, if you are so inspired, you can work forty or more hours and use the extra cash flow to buy rental properties or diversify your holdings in the stock market. The point is that you need to satisfy your cash flow needs before you can start “investing” your money.One final point you should consider is whether you want to be “self-employed.” If you have always worked for someone else, being your own boss sounds very attractive. In some, respects, this isn’t quite the truth. Being your own boss means being an accountant, bookkeeper, stock clerk, receptionist and office manager all-in-one. You have to do deal with tax returns, payroll, office supplies, customer service, bills and all the other hassles that come with a business. You don’t have friends to chat with at the water cooler. You don’t have paid health insurance, a company car and a 401(k). You take your problems home with you every night. Sound like fun? It is, once you learn how to master your time and run your business. Being the master of your own life and career is well worth the other hassles of dealing with your own business.The Part-Time InvestorThe part-time investor holds a “regular job.” This may be by choice or for the time being until his real estate ventures are bringing in enough cash to quit his job. If it is the latter reason, don’t quit your job because the real estate “guru” told you so. Quit your job when it is not worth the income that it brings you. In other words, if you are making more money per hour flipping properties on the side, you are at the point that where your regular job is costing you money. Only then, is it time to quit!One of the advantages of starting out part-time is that you can maintain cash flow while learning the business. It may take weeks or possibly months to find your first deal. That same deal may take several months to turn around, especially if you decide to fix it and sell it retail. Think twice before telling your boss you’re leaving; you will have plenty of time to make the career switch once you have real estate experience. You may, on the other hand, like your occupation. If so, continue to work at it, and invest in real estate on the side.The best case scenario, if you are married, is to have one spouse work a regular job. The other spouse work the real estate business for creating wealth, retirement income and a nice college fund for the children. Of course, in today’s market, you could be laid off due to unforeseen circumstances. If you earn additional income flipping houses and invest the proceeds into rental properties, you will be covered if your main income is lost. This is especially the case for married women that often forego a career and raise a family, only to find themselves divorced with no means of making a living. We don’t want to sound cynical about marriage, but with a fifty-percent divorce rate in America, it never hurts to have a system for making money.Someone with a full time job tends to have little free time to focus on real estate. A part-timer should learn most of the same skills as a full timer. Thus, the key disadvantage to flipping properties on a part-time basis is that it takes sacrifice to learn the business. Something has to give; television, lazy weekends, meaningless hobbies and even some family activities must be compromised. As with any education, time spent learning about real estate will bring its own rewards, especially if the people in your life understand your goals and your plan to achieve those goals. If you are married, make sure your spouse reads this material with you and participates in the fun process of making money.Treat Real Estate as a BusinessPeople are lured to real estate because of the quick buck that it promises. Don’t hold your breath, you won’t get rich quick. An “overnight sensation” usually takes about five years. More than ninety percent of the people who take a real estate seminar quit after three months. Real estate investing should be treated with the seriousness of a career. It takes months, even years for a business to cultivate customers and have a life of its own. You need to treat it like any other business.

Real Estate Investing – How to Invest With Little Down Money

Real estate is a profitable business, yet most people hesitate to put their capital in this business. It is understandable why people don’t invest in real estate, as it requires a large sum of money to buy a property and the results come after some time. But what if I tell it is possible to invest in real estate business with a small amount, and then would you consider real estate a feasible business?Make sure you adopt one of these techniques, which will ensure that you can invest with what you have.Seller FinancingWhat you need to do is look for a potential seller, which can also serve you as a lender. The price is set with the mutual consent of both buyer and seller, along with other terms and conditions, such as the time period of the transaction, which can be for a long period of time. Other conditions include, the repayment schedule, the amount which is to be repaid; will include
The principal amount
Principal plus interest; on fixed or variable rate
Selling and Buying SimultaneouslyIt ensures the continuity of the business. It requires a sharp mind and a proficient person to carry out this method. You can buy a property and also time to pay the seller. In the mean time you can find a potential buyer, who is looking to buy a property, sell the property with a small mark-up. You can take the money from him and the repay the original seller for the property.PartnershipIf you are short on cash, then look for a partner in your investment, who has the cash. Make sure you find a partner who is trustworthy. Make sure that you make an agreement and put it in black and white. Find a partner who has same aims and objectives so that your ideas and aims converge with him, therefore it will ensure there isn’t any problem in future.MortgagesSo you are short on cash, what you can do is look for sellers who have mortgaged properties. This method can be easily being applied as there are many individuals who are willing to sell their mortgaged properties. But of course you need to get the approval from the original buyer of the property.Free RentIf you are short on cash and are looking for alternates than to give down payments, look no further than free rent, it means to give some portion of your property on rent to the original owner or someone else, the amount of income generated from this renting can be used in the repayment of down payment.Knowing may be the first step in investing in a real estate but surely this isn’t enough. To make the investment successful you need to work hard and remain patient. Once you get the hang of real estate business, then you will realize that it is a very profitable business.