Real Estate Investing With a Day JobPosted by: theinvestortoday / Category: Articles
It’s funny that if given the realistic choice, most people would quit their job tomorrow. If you’re reading this, you may not hate your job or maybe you really do, but either way if given the realistic choice you’d probably considering dumping your job in all of 5 minutes. One of the alternatives worth looking at is getting into part time real estate investing. What do you do if you’re real estate investing with a day job?
It may surprise you to know that most ‘big time’ investors start out by part time real estate investing with a day job. What’s more surprising is that after many of them become very successful, they often only ever work part time. I guess that you probably wouldn’t work full time you didn’t need to either. Instead you’re going to spend your time doing the things you really want because that’s what being financially free is all about. I challenge anyone to tell me otherwise.
So can you get into real estate investing with an old fashioned day time job?
Here’s the little known fact about part time investing. That’s how almost everybody starts out at it. Groceries and bills still need to be paid while you’re building an empire, right? Your day job probably gives you the opportunity to do those things. Just be sure that in the mean time you’re pursuing better opportunities. You may not yet be capable of not sustaining life without a pay check in the beginning so part time is the only way to go. Regardless of what your day job is, devote your part time efforts to learning more and changing your life. If you work on bettering yourself, it’s impossible for you not to become successful.
Who is actually rich?
I know it may sound kind of ridiculous but it’s important to understand because most people see their upper middle class friends with a big house, two or three cars and they falsely think that they are ‘wealthy’ or ‘rich.’ If you’re 2 or 3 pay checks away from losing everything, how you can you be rich? The truth is that most upper middle class individuals are the same 2 or 3 pay checks away from being completely broke that most of the poorer people are.
Here’s a simple litmus test to separate who is wealthy and who is not. If their expensive ‘stuff’ is purchased on credit then baby, they aren’t rich. They are typically not much further along than a poor person towards being free of having that dreaded day job. I mean just who really owns their stuff? Do you think they own it or does the bank really own it? If you don’t believe me, tell them to skip a couple payments on the house or the car just to see. By buying expensive stuff on credit to impress their neighbors and to try and look successful, they’ll never achieve freedom in this lifetime without a significant change. Sometimes the truth sucks.
Here’s the best way to get ahead faster. Take whatever extra money you have and learn to invest only in assets that make money, which means a house or car is not either of those things. As those money generating assets produce money, use them to purchase more assets. Eventually, you will have enough assets to buy whatever you want and you will escape the rat race. There’s something more valuable than expensive stuff though and that’s the real freedom to do what you want when you want because your bank account grows without your active participation.
If you don’t know yet how to intelligently invest in anything, you can always take the time to learn. You only need to learn it once to get rich. In fact, you don’t even have to purchase an expensive course or business idea, your local library has all the same answers for free. The library was all I could afford when I get started so I know that it has free quality information that works.
Automated investing Getting ahead the smarter way
Real estate investing is a business and should only be treated as such. Looking at it any other way is a sure recipe to fail. Most new investors leave their courses full of hype and enthusiasm. However, the real test of how strong your business model is after ‘the high’ wears off. That will tell you if you’re really committed to long term financial success in real estate investing.
Alright, so here comes the overused cliche. ‘Begin with the end in mind.’ Do you know the two biggest reasons why most part time investors don’t ever become full time or even better, retired?
1) Their real estate business doesn’t produce enough quality leads.
Most new investors are capable of understanding the techniques but they don’t have enough qualified leads to use their techniques on. Do you know what makes the biggest difference? Marketing is 90% of any business. I don’t find business, business finds me. If you focus the bulk of your efforts in strong marketing campaigns that naturally and easily attract the right types of leads to you then your business will be successful. When business finds you, you’ll actually be able to work less and make more. Even if you focus on another type of business besides real estate, focus on marketing.
There are not many people who would say they think McDonald’s makes the best hamburgers but there’s also no better company at marketing their product. Which do you think is ultimately at cause for their success, a fast food burger or a state of the art marketing machine?
If you don’t treat marketing for leads like the most crucial part of your business, you’ll be hard pressed to make the great leap from ‘part time investor’ to ‘full time work when I want to which isn’t much because I don’t have to.’
2) They know what to do, they just don’t do it
Guess what happens if you know the best techniques but you don’t actually use them? Nothing happens for you. You can’t pay someone else to do your push ups for you and you can’t get going by doing nothing. Make a serious 3 to 6 month plan to phase out the income you require from your job. If you’re serious about achieving it, it won’t take much longer to get on the path. If you’re not yet serious about being your own boss in that short of a time frame then you should at least take the time to gather more knowledge that will only help you down the road. In fact, even at your job, extra skills will only make you all the more valuable.
Do you know what is at cause for both of these obstacles?
It’s only the fear of failure that holds all of us back. If you were sure that you knew the right techniques to profit from deals and that you could produce a steady stream of leads you’d probably see as many clients as humanly possible. You’d want to get all your riches as fast you could cash them. The truth is that the fear that this reality isn’t actually possible is all that holds you back.
Own your fears and they go away
It is important to understand that the negative outcome itself isn’t what’s stopping you, it’s only the fear of the negative outcome. You’re more afraid of the anticipation of the negative outcome then it actually happening. You’ve probably had all kinds of negative outcomes in your life but you feel much worse fearing ones that haven’t yet come into existence yet. Here’s what you need to know about your fears.
Nothing has actually happened in existence yet.
Your fear of a negative outcome doesn’t actually exist anywhere but in your own head. There has been no real world outcome yet. Say for instance that you want to ask out that member of the opposite sex you’re really into them but you’re afraid they’ll say no. So what do you normally do? You just never ask and you let this anticipation of a negative outcome own you. Has this person in reality actually said no? Even if they did, you could probably handle it. Own your fear by realizing it is not the other person you fear, it is the anticipation of negative outcome in your own head which does not exist in reality that you actually fear. You can easily reprogram your imagination to expect positive outcomes and when you do, you’ll naturally and easily attract them. If you were sure your financial success was from the next lead, you’d make sure to generate them and then you’d make sure to go see them. The scary truth is that all you’re afraid of is your own imagination.
A Funny Story Just how much do you hate your job?
This is a true story. I am honestly just not creative enough to make this one up. I met one of my great investor friends named Tom at one of the local real estate investor club meetings. By then, he was already a well established investor. Another time, he told me this story from only about 2 years back. He was fresh out of University for computer science. He had gotten a job in the field and he had been working for 6 months. He began to dread his job so much that he just needed a way out. Just out of curiosity, do you hate your job that much yet? Well let me tell you that he sure did.
In his spare time, he had been learning about real estate investing. He had invested $5000 in one of the real estate guru’s weekend seminars. From there, he developed the itch but the course was chalk full of holes that prevented him from actually applying the experience in real life. It just wasn’t very practical. He just knew he wanted to find better ways to make money and real estate investing offered him just such an opportunity.
The problem was simply that he needed the pay check from his job to live off of but it prevented him from really devoting his time to getting on the fast track to freedom. Can you relate to Tom? I know that when I started out, I could sure relate. Look at just how creative this is. Tom spent one Sunday night staying up all night drinking coffee after coffee. He didn’t go to sleep that night. The first thing in the morning he headed down to his doctor’s office. He told the doctor that he was so stressed out about his job that he was having headaches, he couldn’t sleep and that it was ruining his health. The doctor measured his vitals and looked at his bloodshot eyes for all of 5 minutes before granting Tom six month’s paid stress leave. Talk about creative!
He did his first deal about 2 weeks later. Tom now owns in excess of 100 properties, he has purchased over $2.5 million in equity, he generates over $15,000/month in positive cash flow every month and oh yeah, he was able to phase out his day job right away. This has all come together for him in less than five years.
So, what’s the moral of the story here? I’m not urging that you manipulate the system like Tom did, rather make sure you’re doing something about getting off of the J.O.B. Have a plan to phase your job out if you’re serious about being free.
Real estate investing with a day job is really the best way to get started so if you have a day job, don’t sweat it. Just be sure you know where you’re going and how to get there.