Real estate investing is an industry with big potential, as anyone from individuals to big corporations can find viability in its offerings. It is common knowledge that before getting into any new business, you must acquire as much information as you can to ease the transition into this new occupation. Getting to know the advantages and disadvantages of real estate investing can potentially guide and protect a beginner real estate investor within the vast fields of this industry.
Many venture into real estate investing as a part-time job, while others rely on real estate investments as a primary source of income. A full-time real estate investor is a person who relies on the real estate investing business as a primary source of income. This could include buying rental properties, renting out real estate properties, selling properties, real estate wholesaling, and flipping properties, among others.
Here we will explore the pros and cons of real estate investing as a full-time job.
The Pros of Being a Full-Time Real Estate Investor
Licenses or Degrees
When it comes to real estate investing, no degree or license is needed. What you must have to start making money as a full-time real estate investor is the ability to gain knowledge and always keep up with developments in the real estate industry through ongoing research and business communications. Learning is a process, and in the real estate business it is a must.
Your Income Will Grow With Time
No real estate investor started with millions in his account, but profits usually increase with time and hard work. You might begin with one real estate investment and continue buying investment properties at each opportunity to build a real estate empire. The more experience and knowledge you achieve in housing market, the more profits you can gain. There really is no limit, and it all depends on your own investment decisions.
Learning About Real Estate Is Your Full-Time Job
Instead of dividing your focus between your full-time job and real estate investing in case of being a part-time real estate investor, you can spend most of your time researching the world of real estate investments and what it entails. This includes staying informed on current housing market trends and using technological advances in the real estate industry, such as using real estate analytics tools, as that would make it possible for real estate investors to find lucrative opportunities. If you are looking for the best real estate investing tools, make sure to check out Mashvisor’s property search engine and investment property calculator.
Being an Entrepreneur and Your Own Boss
Having your own real estate business requires entrepreneurial skills and digging deep into the business. This will give you freedom and help you design your business procedure in a way that would complement your life. You can focus on your family and friends once you have achieved your daily or monthly goals in terms of making money in real estate.
Routineless Job
Investing in real estate and being a landlord means that you will not be stuck in a regular 9-to-5 job. You will also be meeting different people (other real estate investors, real estate agents, professional property managers, and of course tenants), experiencing different scenarios, and constantly making adjustments to your work schedule. A successful real estate investor should always meet new people in the industry and always try to gain insight from them.
Leaving a Print and a Legacy
The real estate industry is a place where you can create a name for yourself and for your children. Any investment properties that you acquire will be a part of this. Leaving a legacy is something most people look for but can’t quite grasp as it isn’t easily achievable through a regular job.
The Cons of Full-Time Real Estate Investing
Liquidity
Buying an investment property entails settling your assets in land and concrete, which means that having to liquidate your assets can take quite some time to match your asking price. Unless you are willing to go down in your asking price, you can expect to wait a good few months before getting what your investment property is worth.
It Takes Time and Effort
Similar to any other business venture, making money in real estate investing is going to take time and effort. In the event of buying a rental property, you are expected to maintain the premises in a good condition (unless you opt for professional property management) and find suitable tenants who may bring their share of trouble along with them. As a result, it is recommended to have a thorough screening process for any tenant. So, do not start investing in real estate if you think that being a landlord is a source of passive income. Indeed, you will have to earn your rental income through real work.
Connections and People Skills
The real estate investing business is one mainly built on connections and people skills. For example, encouraging referrals can help establish you in your local housing market. You are expected to work with contractors, real estate developers, real estate brokers, bankers, accountants, lawyers, and many other professionals. To maintain a beneficial relationship, you need to have connections and ensure that others are up-to-date with the focus of your business. That is to say that building and maintaining a real estate investment network is of crucial importance for success as a house investor. This can be quite a disadvantage for an introvert, as real estate investors are expected to have excellent people skills and great public relations expertise.
Making money in real estate is an attainable goal when armed with the right skills and information. Make time to meet the right people in the real estate industry and in your local housing market and gather as much information as possible as the real estate industry is versatile and accessible, while simultaneously offering numerous opportunities for excellence. If you are thinking of becoming a real estate investor, full-time is the way to go. Nonetheless, a gradual phase-in is also recommended, as it takes time to become familiar with the loopholes of the market, after which you can graduate to a full-time real estate investor. No matter the path you take, the destination is clear: get there first, and you might just be able to put a price tag on it.
To start looking for the best investment properties on your way to becoming a full-time real estate investor in the US housing market, click here.