Are you considering a career in real estate investing? Making the decision of being a full-time real estate investor needs a lot of research and education on its advantages and disadvantages. In this article, we will discuss those pros and cons to give you a bigger picture of what it is like to dedicate your time, effort, and money to this kind of full-time job. For any advice regarding real estate investments and the housing market, visit Mashvisor.
A full-time real estate investor is a person who works full time in real estate investing with no other regular job on the side. Here are few ways on how to make money in real estate through a full-time job:
- Buying an income property.
- House flipping.
- Being a real estate agent.
Real estate investing: Disadvantages of being a full-time real estate investor
There is no doubt that you’ve heard of how much wealth and free time a job in real estate can reward you with. However, as any other job, it is a two-edged sword. Starting with the disadvantages can have its advantages: you either take the cons of real estate investing and turn it into an advice on things you shouldn’t do as a full-time real estate investor, or you get saved from indulging in a career you’re not ready for.
Here are some of the cons of being a full-time real estate investor:
- Becoming a full-time real estate investor means that you’re going to quit your current job, granted you have one, and indulge in this inconsistent world of financial ups and downs.
- The risk of losing your safety net (guaranteed income) for a not guaranteed one is there with real estate investing as a full-time job. The decision to leave a job with a good annual income to pursue a career of potential failure is naturally considered somewhat reckless. Being a full-time real estate investor deprives you from the liberty of building your real estate career without the accompanying stress of making a wrong move that will lead to failure.
- You will be losing the extra money you can gain by working as a part-time real estate investor: part-time real estate investing means that you get to enjoy two incomes, so there is an extra money for you every money. When you give up your regular job, you will lose that advantage. It is also worth mentioning that you will be diving in a career without a secondary source of income. So, that’s another thing to consider before your conversion from a part-time real estate investor to a full-time one.
- Also, being a full-time real estate investor will cost you the financial/retirement benefits only a regular job can offer you.
- There is also the stress that comes with finding and closing good deals. Sometimes an investor can go months with no income due to lack of deals. The inconsistency of this kind of job can be scary for people who are going to sacrifice their regular jobs for a real estate job.
- Real estate investing means ongoing costs. Being a landlord, for example, means that you need to maintain your investment properties in order to keep them appealing to tenants and possible buyers. Maintenance costs can be draining sometimes, depending on what needs to be fixed or replaced.
- You will be handling multiple tasks that are meant for more than person. You will be a manager, an accountant, a stock clerk, and so on. However, as the money comes rolling in, you can hire people to do these things for you. So, this is only an extra trouble at first or when it takes you long before achieving success.
- It is not the perfect job for asocial people: a job in real estate investing means that you need to deal with strangers and clients on a regular basis. You also need to wear a patient, convincing, and cheerful mask whenever you’re meeting with people to propose or close a deal. So, if you struggle with anger issues or you’re not a patient person, it’s better to reconsider indulging in a real estate career.
Real estate investing: Advantages of being a full-time real estate investor
Now that we have gotten the cons of full-time real estate investing out of the way, we will touch on all the benefits of being a full-time investor:
- First of all, being a full-time real estate investor means that you’re your own boss. You decide on your working hours. If you can manage your time well, you can work less hours and spend the rest of the day doing other activities, like spending more time with your family and friends.
- The cash flow is incredible. When you get through the first months of being a beginner at the job, you will start earning more money than from your previous regular job.
- You have the advantage of having more time to learn about the real estate field than a part-time real estate investor who has to balance his/her full-time working hours and part-time ones. Therefore, you will get to have more time to search for the best investment properties and deals without the pressure of not having enough time for your non-work activities with your family and friends.
- Full-time real estate investing also entails embarking on other businesses, because you will have the time and money to pursue that option.
- Meeting people creates wider career horizons: as a real estate investor, you will be meeting new people all the time, some of whom will be regular clients and others will offer you opportunities to move higher on your career ladder.
- No more routine: being in the independent real estate field means that no day is like the other; you’re not seeing the same people or working certain hours every day.
Real estate investing is a very interesting and ever-changing field. You have to remember that good planning and management can turn any disadvantage into an advantage. Our advise to you is to stay educated and to always seek the most updated information on any field you’re trying to making a career in. If you need to learn more about real estate investing topics, check out Mashvisor’s website.