Let me starting by telling you the bitter truth – being a full time real estate investor is no walk in the park. It’s not easy. So, consider this before transitioning: you are your own boss, which sounds great, but, it also means that you are the accountant, bookkeeper, manager, maintenance and just about everything–all at once. Think you can handle it? Great! Then you’re ready to begin your transition from being a part-time real estate investor into a full-time real estate investor. Here is your mini guide on how to become a real estate investor full-time.
Learn more about real estate from real-estate investment careers
Looking for a smoother transition before becoming a full-time real estate investor? Maybe you want to make the jump from quitting your job, but aren’t exactly ready to make the full commitment. Then you can get “actual” jobs in real estate investing. For instance, consider becoming a real estate agent, a mortgage broker, an appraiser, or a property manager.
One of the benefits in taking this approach is that you’ll gain immense knowledge about the real estate world. Being a full-time real estate investor requires that you know a lot more than you do as a part-time real estate investor. This is an important part in the process of becoming a full-time real estate investor. However, if you already have the knowledge or are willing to put in the research time, skip the real estate investment-related career and jump in.
Related Article: 6 Tips On Becoming A Real Estate Investor On Your Own
Jump into money-making real estate investing ideas
So, how to become a real estate investor full-time? Keep those buy-and-hold properties while jumping into any one (or all of these ideas below).
Related Article: How to Make Money in Real Estate: 7 Different Ways
When it comes to becoming a full-time real estate investor, wholesaling can be quite important. It is the process of finding deals and selling them to other investors. By jumping into wholesaling, you learn the most important skill a full-time real estate investor (or any real estate investor) needs to have: how to find the right deal. The best thing about wholesaling is that it doesn’t cost you anything! You just have to find a few deals and some interested investors and you’re good to go.
While not your traditional “passive investing” technique, this one could be a fun way to learn more about real estate. With that being said, it’s not as simple as television shows make it out to be. So, before buying a property, flipping it, and re-selling it, ask yourself the following: Do you have the necessary management skills? Who will repair the house? How much will repairs cost? How are your book-keeping skills? Math skills? What about the market–what type of houses are most commonly sold? In which neighborhoods? How long are houses on the market?
So, if considering this option, make sure you’ve got the skills and resources!
The first step in becoming a full-time real estate investor is knowing that you CANNOT become a full-time real estate investor from buy-and-hold real estate investment alone in your early career. This idea comes from the myth created by real estate “gurus,” making you think that you can become rich in a one night span with real estate.
The thing you’ll begin to notice is that you even if you have a positive cash flow, not a lot of money will go into your pocket until about 5 years into your career. One reason for this is the mortgage. You might also experience a fluctuation in income depending on a number of factors (ex. unforeseen repairs). So, when trying to figure out how to become a real estate investor full-time, it’s a good idea to read through the techniques mentioned in the next section.
Related Article: How to Find Positive Cash Flow Properties
With that being said, this is not to advise against investing in buy-and-hold properties. They’re actually the best asset you may have to diversify and strengthen your portfolio. Further, what buy-and-hold lacks in cash today, it makes up for it tomorrow. Appreciation will likely occur every year, allowing to you pay off the mortgage more quickly. Consider using the snowball method to increase your properties and make more money!
So, all I’m saying here is that during your transition into becoming a full-time real estate investor, you’ll need to have some buy-and hold properties–but in conjunction with some of the other techniques listed.
Here’s the final on how to become a real estate investor full-time…
If you read this guide, ready to put in the effort, and are ready to quit your job, go right ahead into becoming a full-time real estate investor! Just make sure you research the field extensively if you’re skipping the real estate related careers we talked about earlier.
Good luck on your real estate journey and know that Mashvisor is always here to help you choose the perfect properties!