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.

The Real Estate Market May Be Down But That Just Means it is Time to Land a Contract on a Good Deal

Today, the whole world is experiencing probably the worst economic recession in history. People might think that this is the time to open their steel vaults and lock all their money safely but, the truth is, this is the best time to get their money going and the best way to invest your money is Real Estate.Around three years ago, there has been a steady rise in the Real Estate business, but not until it started its downfall in April of 2008. Although this is so, there is no need to worry that you might have missed the last boom in this business, because this boom comes every five years. And even so, acquiring property is the best way to invest money because unlike any other investment, properties such as house and lots increase value through time.Real Estate has been defined as a term used legally to pertain to land along with other fixtures and structures attached to it like houses and buildings. Properties of this kind serve as good investments because not only are they non-perishable, one can benefiting from these properties even while the property is up on sale in the market. For instance, if a person has a house in the suburbs, gets a condo in the city, and puts the suburban house on sale, he can still stay in the house on vacations and make use of it even if it’s already for sale. Lands, on the other hand, increase in value exponentially, so there is no need to worry on spending money on this market.Real Estate might be a risky venture for someone who is new in this business. As it has been a trend, five years is the increment of time with which the boom in Property business occurs. For those who are interested in this endeavor, it is best to know the right people in the business and the locations that have high potential. Some of the major factors to consider in this kind of business enterprise are the political stability and economic growth of the country. With the recession on-going, the investors should put into mind that their properties need not be sold immediately, for as they say, this business is one that requires long-term development. For Real Estate, a “slow and steady” path is the better way to success rather than a “fast and sloppy” road.Even if one does not intend to make Real Estate his business, it is advisable to have a property that one can gain profit from in the long run. Houses and lots can be purchased for immediate residency, but if in the future one decides to move to another state or country, these properties will surely be sold easily.Now is the best time to land a good deal in the Real Estate, since a lot of areas have been decreasing its prices significantly. In India, for instance, the price of lands, houses, flats, and other infrastructures have almost met the minimum. With this, a businessman might take this opportunity to buy property, for in a few years’ time, the Real Estate business will be back on its feet and the prices would have gone way high. By then, the investment made on these properties would have generated profit a hundredfold.