When is it ok to quit your day job to go into Property Investing Full-Time? I only work part-time and I find it hard to find the time I need to put into looking for deals. Yet if I quit my job, I assume the banks won’t lend me as much as it would decrease my income. I feel as though I’m in a catch 22 situation. Any good ideas??
Pepsi
[rolleyesanim]Hi Pepsi,
I’ve thought about this same topic alot too. The only way in my opinion is to sacrifice your time. i.e. look for deals before and after work, look for deals on weekends. That means you would need to perhaps give up some things for a short while till you can build up your positive cashflow portfolio.
I don’t think there’s an easy way out. You need to show servicability of the loans with your deals before you quit your day job.
Regards,
TheWizard
Pepsi,
I agree with The Wizzard.
You have to look at what your priorities are and what your goals are in relation to Property Investing.
I work 4 days per week as an RN and my husband works full time. We spend most time in the evenings going over new developments and updating one another. We go out most Saturdays talking to REAs and learning more and more about our targeted area. We are involved with Steve’s online program at the moment which also takes up an evening per week. We meet our Mentor once a month, and have contact with him on a weekly and sometimes daily basis.
So what I am saying is that we work at this non-stop because we feel that it is the way to reach our financial goals. Start with having a look at what you hope to achieve. It is not easy spending every spare moment doing this. But I am prepared to give up my time now and buy it back later when we are a success!
Good luck,
Mapleleaf
Achieve the Dream!
we work at this non-stop because we feel that it is the way to reach our financial goals. Start with having a look at what you hope to achieve. It is not easy spending every spare moment doing this. But I am prepared to give up my time now and buy it back later when we are a success!Excellent attitude…..you’ll easily get there with that level of determination !! Go for it.
Dazzling
From memory you have a goal to stop work in april 07 give or take . How is that tracking ? I hope it is still looking that way , nice to see people achive there gaols.
Cheers Rick
We buy propertys cash
[email protected]Oh dear Rick…..those promises are coming home to roost…how did you remember that ???[ohno2]
Yep – April ’07 is the date, but with the activities of late that goal may come forward a tad.
In reality, we could pull the pin now….but it’s that level of comfort that is sort of open ended. Once again, it’s all to do with your frame of reference.
Anyway….back to the topic….
Originally posted by Pepsi:When is it ok to quit your day job to go into Property Investing Full-Time? I only work part-time and I find it hard to find the time I need to put into looking for deals. Yet if I quit my job, I assume the banks won’t lend me as much as it would decrease my income. I feel as though I’m in a catch 22 situation. Any good ideas??
Pepsi
[rolleyesanim]The eternal question, that I am coming to gripes with myself. Have a look at the many topics here and on that other investment forum around the topic LOE or Living Off Equity. If you have enough equity that is producing the income you require to fund your lifestyle then you can quit your day job tommorrow. [biggrin]
If you don”t then you just have to make/find the time to be a part time property investor — read, learn, inspect, talk to REA, attend auctions in your spare time – not easy, but unless you can afford to give up your day job now you have to do it this way.
regards,
Paul
Dazzling
There are a few people on this forum that I admire and you are one of them . So when I read bits and peices that you have written I remember certain things . Anyway seems like you are traking well, thats great news.
Cheers Rick
We buy properties cash fast settlements no fees no fuss. contact me on 0408 355568
[email protected]Thanks Rick….I appreciate your feedback.
Originally posted by Pepsi:When is it ok to quit your day job to go into Property Investing Full-Time? I only work part-time and I find it hard to find the time I need to put into looking for deals. Yet if I quit my job, I assume the banks won’t lend me as much as it would decrease my income. I feel as though I’m in a catch 22 situation. Any good ideas??
Pepsi
[rolleyesanim]me thinks Pepsi you may try working full time before you consider retiring to live off your investments, unless u inherited rather well that is…(re your catch 22 situation, yep, banks are like that, get over it, remember the golden rule, He who has the gold, makes the rules…!!!)
the good news is ….the sooner you talk to some savvy financial people the better off you will be.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneHi im new to posting so here it goes
Im a property invester who workes full time on arvo shift at a packing pallets distribution centre from 4pm to 12pm at night. this time gives me opportunity to view houses in the day and crunch the numbers in my lunch breaks at night.
After reading steves books, i don’t think i would have gone the distance and bought 5 houses when i originally only had a unit. I will buy another house this year which is my goal so if a “picker” can do it u can do it too.[cigar]we have been full time investors for 13 months now – we both agree that it is the most rewarding work that we have ever done. Okay some is mundane but seeing an aspect of a deal that others perhaps don’t or making something work that others could not gives us a real buzz. Don’t wait to long to take the plunge or it may never happen. Carl barron used to do a joke about his first day as a roof tiler and thinking to himself “this is <edited>”. 13 years later he quit. I thought the same thing about my old job and it took me 10 years to leave. Don’t let your existing job trap you from moving forward.
regards
don
I Buy New Zealand Property – All types and conditions [email protected]
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
For those that have left the orkforce to invest full time, have you wilingly left and earned less for the first few years? That’s what scares me the most – that I will leave nad not be able to get the income level I get now.
We are planning on my husband leaving the workforce to invest and renovate and over a number of years build that up until I can leave too.
Of the people who have freed up time in the pursuit of investing, I’m interested in how many are single and not in a relationship (where one person works and the other partner sources the deals) in using their freed up time to achieve their common goal?
Cheers Gatsby!“Sometimes the hardest thing to do in life is often the best thing to do.”
Can’t help you there with that one Gatsby….but I do have some news….I just quit my day job.
I work with about 7 other expats – mainly US and UK folks, ranging from 57 thru to 64….and they are planning my retirement party for my last hitch in July. Seems a bit weird with me being 35.
The cost of missing my wife and 3 girls growing up, back in Perth has been too great a toll to bear any longer.
When I get home I’ve got a choice of running back to this industry I’m in – doing the same thing in Perth, or try my hand at investing full time….I’m dead keen on the second option but without a solid income, our setup could come down like a pack of cards. I might take a few months off and have a sniff around at some of the opportunities. Banks attitude is my biggest concern.
I feel like a great weight has been lifted….on top of the world right now. Yeehah !!!
well done dazzling – time to get creative and make a few changes to make it work!
Gatsby – we both invest full time (liz and I) and are pretty excited about opportunties popping up in the market where I live. After a year off without pay our resignations have been formalised and badge etc handed back without any ceremony. Just stuck it in the posts and exchanged a few emails. Some things in life that seem like a big deal really aren’t. So we are no longer police, really it’s been at least 5 years or longer since my heart was in the job and if I was to be entirely honest I knew very early on that there were others around me who were far more suited to do what I was doing.
We used to commute 3,5 hours a day to get to work doing something that we did not enjoy which in the end was a battle. Now I commute from the kitchen to the study. Their are things that you need to learn about working from home and working with your partner which we are still sorting through and trying to make work. Also when you hobby or passion become your job you need new hobbies or you just work 24/7. These are all the issues that we are sorting through ie not the lack of opportunities but working out how to balance things and how assess which opportunities to go for.
When you do it full time you have the luxury of time and the volume of deals you go through helps shield you from the rash decisions. eg an agent that I have brought say 25 or 30 homes off is trying to sell me properties in a portfolio that a ozzie has. He is selling all 9 of his properties that are yielding close to a 10% yield. Good deal right? Wrong? This guy brought all without seeing them purely on yield through a real estate agent.
The catch is he want’s someone the buy them like he did ie sight unseen off the original photos that he saw 18 months ago. So while I sat the quitely smiling at the agent thinking that they were both dreaming it came up in conversation that there are only three left.
Okay so I am off tipic now but the point I was trying to make was that 2 years ago I could have been one of those people that brought those properties (probably not) but may have been tempted. No doubt they will all be back on the market again next year when the repair bills start flooding in.
Cheers
I Buy Property http://www.cashflowproperties.co.nz
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Originally posted by Pepsi:When is it ok to quit your day job to go into Property Investing Full-Time? I only work part-time and I find it hard to find the time I need to put into looking for deals. Yet if I quit my job, I assume the banks won’t lend me as much as it would decrease my income. I feel as though I’m in a catch 22 situation. Any good ideas??
Pepsi
[rolleyesanim]the time 4 u pepsi troll is now. don’t look back.!.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneHello to all,
I have really enjoyed reading this post. I originally cut back on work 2 months ago to give more time to PI and am now going down to casual so that I can pick and choose my work and have as much time as I want for our investing.
I am inspired by the other posts and feel that we are making the right step forward. My husband and I are both deeply involved with PI and bring different strengths to our new business. We love having a common goal that we directly control, and we love the excitment of learning new things all of the time.
Thank you for your positive stories and encouraging words…[biggrin]
Cheers,
Achieve the Dream!
Hi Pepsi,
If you have a job you like and enjoy then there is no need to quit and do investing full time. Try to find a balance between both. Also, it all depends on how much of a hurry you are in to get to your desired finacial freedom.
C2
Rich in happiness and money is better than rich in money with no happiness.
Hi Pepsi,
Everyone’s circumstanses are different – so when to quit you day job will depend on many things. That doesn’t help much but it does mean that you have to think broadly.
EVERYBODY has a full life. Before you do anything you have to first decide what to take out of your life to make the time to do what the new thing is. This is simply a creative exercise – no different from investing and converting something someone doesn’t want into something someone does want.
If you need money then you need to find something that takes less time -eg vending machines may give you the same income and free up time. (NO I am not suggesting vending machines I’m just giving you an example of creative thinking.)
As a final thought remember that the banks treat rental income even more favourably than earned income in terms of lending you money. Why not talk to you lender(s) about low doc loans and what you could realistically borrow if you had less income from quitting your day job.
Hope some of this helps
lawmed
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