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 Benefits of Investing in Real Estate

Gone are the days when man used to rely on farming. There is a new kind of farming and that is real estate. As the world population continues to increase one can be assured that this population will need a place to stay and you can take part in ensuring that they have decent lovely homes as their abode.You might be tempted to buy shares but you should not look far back as the recent global economic recession was a huge downfall for all those who had invested in stocks since their prices went down as it was no longer a bullish market and the bear kept growling. So what are the benefits of investing in real estate?The first benefit is that your capital grows. Why? This is because real estate property appreciates in value as the years go by so if you want something that increases the value of your money; real estate is the avenue to venture into.When you invest in property you will be getting rent and that is a good source of income. You see, houses are basic needs and thus they are very marketable. No sooner than you purchase an investment property than you get money in a period of three weeks.Do you want to have control over your investment? Well you should be breathing a sigh of relief because in real estate the owner of the property has a voice. If they want to raise the rent or do some upgrading they can do so without being inhibited.In real estate business, the risk is not as high as that of venturing into shares. It is easy for share prices to fluctuate but the property market cannot be shaken easily thus you can have peace knowing that your property will maintain its value for a good period of time. The other benefit or should we say bonus of buying property is that there are some tax benefits that come with it meaning you will not be paying tax heavily like everyone else. Another thing is that you can use your property as security when seeking a loan. The bank will simply need to know the value of the property.When it comes to inflation, property increases at a greater rate than it. A successful case study is that of Australia. Finally when you invest in real estate you are investing in something that is tangible. This means that you are investing in something that you can see and touch plus you have the papers to prove so. This is why many people have the confidence of investing real estate. Real estate does not rely on psychology or emotions. It is a real market whereby you simply buy property and enjoy its benefits. All you simply have to do most of the times is good maintenance and you will be good to go. So if you have some good money in the bank account you can consider investing it in some good real estate property.