Wondering how to invest in real estate? Continue reading… One of the most advantageous features of real estate investing is flexibility. In other words, you get to choose not only what investment strategy you want to go with, but also whether you want to invest part-time or full-time. You are here to find an answer to the question: How to invest in real estate: part-time or full time? This blog is exactly what you need in order to find the answer.
Related: Learn How to Invest in Real Estate in 4 Easy Steps
Many real estate experts claim that once you quit your job and become a full-time investor, you will achieve financial independence in no time. However, this isn’t true for everybody. Everybody’s situation is different. Of course, you must take their advice into consideration, but you should do your research and weigh things out based on your investment goals.
Here are some guidelines on each stream in order to help you come to a conclusion on how to invest in real estate:
How to invest in real estate part-time?
There are many part-time real estate investors out there who have their full-time jobs at the same time. Though it gets overwhelming sometimes, it is still manageable. Here is what you need to consider in order to learn how to invest in real estate part-time:
Managing your time: As we said before, investing in real estate part-time might get overwhelming, especially if you have a full-time career, family, and other activities you do on regular basis. However, this does not make investing in real estate part-time impossible. All you have got to do is learn how to manage your time. In other words, write down the activities you have in your daily life including your work and analyze the time you spend doing each. Now, you will be left with the spare time you’ve got to dedicate to real estate investing.
Hiring a team: When investing in real estate part-time, it gets busy since you’ve got limited time for it. You must understand that real estate investing, in general, is a needy business: from property management through taxation to legal procedures and so on. At this point, you will need to hire real estate professionals who will take care of your investing business.
When you hire property management professionals, they are going to take care of most of your income properties’ operations. Their services will include dealing with tenants, collecting the rent, and tackling the legal aspect of your business as well.
Related: What Are the Most Important Aspects of Real Estate Investment Management?
Why should you invest in real estate part-time?
Now that we have covered how to invest in real estate part-time, let’s look at the perks of this approach. Just like any other aspect of the real estate investing business, investing part-time comes with some advantages. The two major advantages are that you always have a backup plan in addition to an extra income.
As for the extra income, it never bothers anyone! All you have to do for that is to start by buying rental properties, hire professionals to take care of them, and there you go: you have extra income properties.
The backup plan is the other advantage of investing in real estate part-time. What would be a better feeling than knowing that if you fail in real estate, you will still have your full-time job to pay your bills? Or the other way around. You lose your job, and you still have your real estate investing business to make a living.
Tip: A good way to invest in real estate part-time would be real estate partnerships. Find a business partner who is willing to split the responsibilities with you. Another thing you can do to make it easier to manage is to use automation tools. These will make it easier for you to respond to calls and emails.
Related: What’s the Best Investment Property: A Single-Family Home or a Multi-Family Home?
How to invest in real estate full-time?
When it comes to investing in real estate full-time, you will also have to take into consideration a couple of things:
First, you will have to be prepared: Understand that investing in real estate full-time requires dedication and careful planning. When you first start, you will have to dedicate your time not only to work but also to learn. Moreover, you will have to carefully plan your finances. Have a financial plan to serve your business as well as your personal needs.
Second, investing in real estate full-time means you know where you are going: When you choose to invest in real estate full-time, you have to do proper research. You have to find the right strategy, the right financing method, and the right location. For you, as a beginner real estate investor, we recommend that you start with buying rental properties. Investing in either traditional rentals or Airbnb rentals would be the perfect strategy for you to start with.
Why should you invest in real estate full-time?
Here is the interesting part of investing full-time. There are two major advantages to full-time investing:
First, you are always up-to-date with your business: The good thing is you always know where you stand in terms of your real estate investing business. You are the first to know if any situations occur, and, therefore, you are always available to take care of them.
Second, you can do the property management: The best thing about investing in real estate full-time is that you have an option of managing your income properties yourself. By managing your business yourself, you can cut off the professional property management fees which will help reduce your expenses. Therefore, it will help maintain a positive cash flow form your income properties.
There is no way we can tell you for sure what is best for you. Getting into the real estate business is challenging. Therefore, you have to weigh things out and decide for yourself how to invest in real estate.
To learn more about how to invest in real estate, sign up for Mashvisor.