Investing Game: It’s Not Too Early or Too Late to Become a Real Estate Investor
Real estate offers a lot of superpowers, one of which is the ability to help you achieve financial freedom and leave your dreadful day job. Do you desire to visit the globe? Invest more time in voluntary work? Why don’t you concentrate on raising your children? A successful real estate firm that generates passive income could be the secret.
Just because you’re not working a 9-to-5 job doesn’t mean you’re not working as a real estate investor. It’s still a full-time job in many ways. But there’s a catch: you have to love real estate to achieve true financial independence. Simply put, you’ll have greater freedom to arrange their lives as you see fit.
Achieve Financial Freedom: Should You Quit Your Day Job and Become a Real Estate Investor (Full-Time)?
Let’s start with the basics: getting your finances in order before diving into how to increase your net worth. After all, financial freedom won’t feel very liberating if you’re still enslaved by debt and poor habits. Here are some things to consider before getting into real estate.
- Credit cards
Credit cards aren’t necessarily bad—in fact, taking advantage of credit card perks and purchase safeguards might be a smart financial move! Many Nigerians, on the other hand, are unable to use a credit card without overspending. If you have credit card debt, try to pay it off as soon as possible. If you’re prone to impulse purchases, try canceling your credit cards or seeking financial counseling. You can change your perspective about credit over time and eventually use these cards for what they were designed for: as fantastic reward sources.
- Emergency Funds
Have you saved aside money in case of an emergency? What if you lost your job—before you could completely implement your wealth-building tactics, of course—or if you had a significant unforeseen expense, such as a medical bill? Begin with a small emergency fund (many experts recommend N 411,730.00 as an appropriate beginning point) gradually increase it. In the end, you should be able to fund six months’ worth of living expenditures without relying on your primary source of income. Consider opening a separate bank account for your emergency money. Save the money till you need it.
Do you have a hefty mortgage? Do you have any student or auto loans? You don’t have to pay these off before you start investing in real estate, but it’s crucial to know how much debt you have. It is also significant for lenders, who will evaluate your debt-to-income ratio before approving your loan. Many people consider 36 percent to be the maximum permitted ratio, including a new mortgage if you need one. To increase your chances of getting a loan, get your debt under control before investing.
Should You Give Up Your Job to Seek a Career in Real Estate?
Let’s talk about if quitting your work is genuinely an important choice for you before we get into the nitty-gritty of financial freedom through real estate.
Ideally, you should find something that you enjoy doing more than anything else in life and pursue it as a career. If that means teaching high school math, go ahead and do it. Find a job that allows you to travel the world if that is what you want to do.
And if it means making a career out of real estate, then make a career out of the real estate. Because full-time real estate investors work—the job frequently feels more like a lifestyle than a job. While some assets, such as REITs (or real estate investment trusts), are passive, full-time investing requires effort. You’ll need to do the following:
-Speak with distressed homeowners.
-Send out a large number of direct mail pieces.
-Make connections with seasoned real estate investors.
Do you think that’s something you’d despise? Everyone can and should construct a real estate portfolio as part of their retirement and wealth-building strategy, and many present millionaires have done so. Full-time real estate, on the other hand, is a full-time commitment.
Are you ready to make real estate investing your full-time job? Here’s how you can achieve financial independence.
Pro-Tip: Self-education is essential.
Brush up on the fundamentals of real estate investing if you’re new to it. Before you even consider dipping a toe into the full-time waters, do this first.
Begin by deciding which strategy will be the focus of your efforts. There are many distinct forms of real estate, each with its own set of advantages and disadvantages.
It is the process of finding fantastic deals, putting them under contract, and then selling the contract to an investor or house flipper for a profit. Wholesalers have mastered the most helpful skill a real estate investor can have: knowing how to buy correctly.
Wholesaling is effective. However, while wholesaling may appear to be “simple,” it is neither easy nor quick. Hard work, skill, motivation, and particular personality attributes are required (like negotiating). Finding bargains worth pursuing every day can be a time-consuming task.
It can be a fun and lucrative method to make money. You’ve certainly seen TV shows where investors turn a run-down house into a mansion in three weeks and reap hundreds of thousands of dollars. While this is a possibility, don’t anticipate it to happen to you when you get into real estate. Before you start a fix and flip business, make sure you understand both construction and the market.
Buy and hold cash flow investing.
A stable of cash-flowing properties can be created by buying and holding cash-flowing properties. It can rapidly build up to a sizable sum of money. Also, it can be an excellent long-term investment strategy, but keep in mind that you’ll need a lot of cash reserves if things go wrong.
Dive Into the World of Real Estate
You’ll also need a plan if you’re quitting your career to pursue real estate. It’s a big deal to quit your work, and it has a lot of financial implications. Taking the plunge into the realm of self-employment is a risky proposition. The majority of starting businesses fail due to a lack of funds.
Also, get to know your local market. Is there an increase in career opportunities? Incomes? What is the make-up of the population? Make connections with local investors and real estate brokers, and tour houses for sale in your region before bidding. Regardless of your plan, knowing what your market offers in various price ranges is critical knowledge for all real estate investors.
You won’t be able to make money unless you buy and sell your property. As a result, you’ll need to learn everything you can about how to sell a house quickly and for a reasonable price.
There’s nothing wrong with some real estate investors choosing to become licensed real estate brokers. However, if that isn’t an option, you’re ready to pursue (yet), working with an investor-friendly agent is essential. Contact us today, and we’ll do the rest.