Should You Quit Your Job & Invest Full Time? - Real Estate Investing

Over the years, many aspiring real estate investors have come to me for guidance. They typically have pages of questions, which I? patiently answer.?? Here is a real estate investing question I am often asked:

Q.? I?m married and have a family of four to feed and house.? I hate my job (or my job is okay, but leading nowhere).?? I am so excited about real estate that I want to do deals full-time. When should I leave my job?

A.? I wouldn?t turn in my two weeks? notice just yet.? Your job provides many benefits:

• Predictable steady income
• Employee benefits:? including health insurance and paid time off
• Contact with other human beings
• Good performance on the job, which enhances one?s sense of self-esteem.

Real estate offers some terrific benefits:? income, wealth accumulation, total control of your time, enhanced self-esteem, potentially making the world a better place, and it?s lots of fun. Each of us has to make our own decision based on our specific life situation and on our self-knowledge.

When To Quit Your Job & Invest Full Time

I would not leave a job except ?under the following conditions:

** Your real estate income after taxes is equal to the job income after taxes (be sure to include the cost of health insurance).

**Your real estate income after taxes isn?t as much as you made from the job, but is enough to meet your living expenses.

**Your spouse works and willingly agrees to allow you to seek a real estate fortune, foregoing your paycheck.? The working spouse in this situation might set a time frame for you to produce results.? If this is the case, put your heart into your efforts.? In my own experience, my hard-working wife was far from delighted when I reported to her the details of my work day.? She didn?t really like to hear how much I enjoyed my one-hour nap or my hour of thinking about the purpose of life when she?d had a tough day at the office.? As an option, you might leave your job while your spouse works full-time, but bring in some income through part-time employment.

** You strongly believe and are totally confident that you could earn more money making real estate deals in a year than you could from your job.? Ideally, you have enough money socked away that you could meet your living expenses for a long time. Incidentally, I view a job as an income-producing asset.? If you earn $40,000 per year and anticipate you could earn a 10% rate of return,? an asset worth $400,000 producing $40,000 a year of income produces as much as your job.? I?d rather have a real estate investment than a job. You could be in the unfortunate position of being unemployed and longing to do real estate, but a job provides you with predictable cash flow.? If you are uncertain which direction to go,? find a job for the time being and work toward eventually having enough real estate income to leave the job.

Source: http://www.reiclub.com/realestateblog/should-you-quit-your-job-invest-full-time/

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