Mindset: Becoming a Full Time Real Estate Investor in a few simple steps.
Do you have the right Mindset to become a full time real estate investor?
Several books and late night shows state that anyone and everyone should quit their jobs and get into real estate full-time. Being a full-time investor is not for everyone: a lot of people do very well by being an investor part-time, while others see it as a full time opportunity. Let’s point out the pros and cons of full-time versus part-time investing.
■ Full-Time Investor
Full-Time Investors acquire a deep knowledge of real estate: they must be continuously up to date with the ever changing real estate market. Reading, attending seminars and keeping informed are necessary. since they are more focused on the business of investing in real estate, they develop a system that will free up more time for expanding the business in different directions or spend time with family.
It takes a strong discipline and commitment to become a Full-Time Investor, but once the investor sets up a system and gets adjusted with being self-employed, the rewards are well worth the efforts.
■ Part-Time Investor
The Part-Time Investor holds a “regular job.” This could be by choice or until the real estate venture takes off. The general rule is if the investor starts making more money by working part-time in real estate that at the full-time job, it is time to consider becoming a full time investor. At that point a full time job is costing the investor money!
The advantage of having a fixed income will certainly help finance the first real estate deals until the investor becomes a pro at it (lenders like to see that the borrower has a fixed income) and it relieves a lot of the stress on counting on real estate as the main source of income for living expenses.
Part-time investors have to acquire the same knowledge as a full-time investor. It takes a lot of discipline and sacrifice of personal time. They basically have to work twice as hard as a full-time investor and it will take longer to achieve their goals.
Real estate is a business that requires dedication and focus, but in the long run is well worth the effort, since it can provide whatever income you set your goal to, retirement security and more free time for a personal life than a full-time job would ever offer.
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