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.

Is Real Estate A Great Passive Income Business? Finding The Right Investment Opportunity Is Crucial

Real estate is a lucrative business field in all aspects, especially if you know how to sell properties or rent them at a competitive rate. Many entrepreneurs prefer investing as real estate business always deals with a lot of money. You won’t lose money if you follow the basic rules, at the same time you will be able to make your living from the passive real estate income source.If you’re interested in developing a passive source of income with positive cash flow, you should consider investing in real estate properties. Let’s explore how real estate passive income source can help you make decent earnings without major efforts or business involvement.Is real estate a great passive income business?* If you have a good amount of money in your bank account, it’s a great idea to buy a property and rent it out. This will definitely make you more than the interests paid by the banks. Just advertise your rental offers in the local classified websites and newspapers to get suitable tenants for the house. At the same time, the value of your property will also increase over time. It’s profit in both ways.* As the price of the property will gradually increase over time, you can sell the property later. You can also do something more creative. First buy a house or foreclosure property, make necessary changes to the property and list the property for sell at a higher stake. Meanwhile, you can rent the property and take profit out of it. At the same time, you will be able to search for potential clients interested in buying the house.* If you have extensive idea about the area and the properties available for sale, you can definitely start promoting others houses and lands and earn commissions from the successful deals. If you don’t have a good sum of money to invest on these properties, you can play the role of a property broker and make profits by selling others properties.* Nowadays, real estate business is moving towards corporate and commercial properties. If you have experience and association, you can take larger projects and play games with higher stakes. The investment in such cases are much higher, but the profits are almost double too! Make sure the property you’re working with has already received few proposals from the commercial foreclosure developers.All these methods can help you create an income funnel in the real estate business industry. Try to explore the industry in a comprehensive way. This will reduce the risks and increase your profits.Investing in real estate business: facts you must explore* You must have a comprehensive idea about the properties in a specific area. Otherwise, you might end with a bad property investment. Take time to re-explore the area before investing a penny.* Try to communicate with the experienced realtors in your local. They will help you learn the basic rules and legal issues. You will also be able to learn about the competition and association in the region this way.* Take enough time to research. Learn about the property accurately. Consider exploring the history, previous house owner’s details carefully. This will help you make good, profitable property investments.