Investing In Real Estate With A Full Time Job?

Investing In Real Estate With A Full Time Job?


All right, what’s going on everybody? In today’s video we’re going to be talking
about, can you have a full-time job and still invest in real estate? I would say absolutely you can and, not only
that, but you should have a full-time job. If you’re looking to become a full-time real
estate investor, I would actually recommend that you have a full-time job and then do
real estate investing on the side before you gain some consistency to the point where eventually
you could quit your job if you wanted to. There’s a couple of reasons for that. Number one, just like any business when you’re
getting started, it’s going to be hard to be consistent and do consistent deals when
you’re first getting started. Now, some people, they might start doing two
or three deals per month but other people, it might take them a little while to get started. From a pure cash flow perspective, you might
save up some money but if you’re not making consistent income, like you would from a normal
job, that money can dry up pretty quickly, ask me how I know. I would definitely recommend having a full-time
job. Ideally, a full-time job in the real estate
industry so you can gain even more experience before you even think about quitting your
job. The next thing I would keep in mind is, when
you’re getting started as a real estate investor sometimes you can do extremely well in your
first couple deals, and it might even just be dumb luck. If you’re doing marketing sometimes you can
just … I know some investors that have made 100,000 on their first couple deals, which
is definitely doable but it’s, I’d say that’s, I’d probably consider that pretty rare in
the real estate industry. You want to be able to have done at least
a minimum of three deals but ideally more like five or six deals before you think about
quitting your full-time job. The reason for that is, yeah, some deals might
be amazing, other deals might take a little bit longer and you might not make as much
so you want to have a wide spectrum of deals under your belt before you decide to quit
your job. Sometimes you get cocky too after you maybe
do two or three good deals but then your fourth deal, because you’ve done so well in those
first couple, you think, “Oh, I’m going to hit another home run,” and then that deal
doesn’t go so well. You really want to see a wide spectrum of
deals before you think about quitting your job. Another great reason to invest in real estate
on the side, while you have a full-time job, is to build up assets. By that I mean you want to build up … You
can even buy rental properties. It’s going to be significantly easier to purchase
rental properties if you have a full-time job rather than if you’re just self-employed
doing the whole full-time real estate investor thing, so that’s one reason. You can buy two, three, four, five rental
properties with your full-time job income before you take the leap to being a full-time
real estate investor. Then, in that case you have cashflow coming
in that would help to stabilize some of the months when you’re first getting started. Not only that but you also want to extend
your credit lines and potentially get new credit lines as much as possible when you
have the security of a job. Myself personally, I have over 100,000 in
credit and I’m trying to get over a million dollars in personal credit and possibly business
credit as well. When you have a job that’s going to be 10
times easier because they just look at the income, they might look at your taxes, and
they’ll give you sometimes a pretty quick approval. You should have, I’m talking about credit
lines with the bank. Sometimes you can just get a personal credit
line with your bank and you can apply for 50,000. Now, they might not give you 50,000 and they
might say, “Hey, what are you spending that for? You say, “Hey, I might be making some large
purchases soon.” You don’t really need to get too specific. I don’t want you to lie or anything like that
but, generally speaking, if you have good credit and a steady job you can ask for a
personal line of credit, which is essentially like cash. It’ll just be in your account and you can
use it whenever you need to. You should do the same with credit cards. You should have three or four credit cards
and try to extend the credit lines on those as much as possible. Most people are not even aware that you can
probably just call your credit card company today and ask, if you’ve been paying on time
and you have a steady job, probably ask them to double your credit limit. That could give you a lot more financial security
when it does come time to quit your job. What will happen is when you’re self-employed,
especially when you’re getting started, you’re going to have amazing months where you’re
like, “I’m a genius, I’m going to be a millionaire next month.” Then you have months where you’re like, “Crap,
I need to get a new job. I need to get a subsidized apartment. I need to make some serious life changes.” Having all that built in, credit lines that
you can rely on if you need to. I’m not saying get a credit line just to go
buy a boat, which theoretically you could, but use those credit lines as security or,
potentially, if a buying opportunity comes around sometimes you might … Maybe there’s $100,000, you need to bring
$100,000 to the table and you might be able to finance that in creative ways with credit,
your credit line, and savings, for that matter. Okay. The next reason why I recommend investing
in real estate part-time, while you have a full-time job, is you can get good at outsourcing. Being a real estate investor, being a full-time
real estate investor, you actually don’t spend as much time as you might think. A lot of my business is outsource. You should outsource these three things when
you get started as a real estate investor. Number one. Your leads. Some investors purchase leads, you can purchase
different motivated seller lists. You can also pay a researcher. I have a virtual assistant that I’ve trained
to basically pull different motivated seller lists for me. You want to have somebody get the list for
you, the list of motivated sellers, the list of people that you’re going to be marketing
to. That’s just for my business, some people have
other ways of getting deals. The way I get deals is I basically have a
long list of people and I send them a lot of direct mail. Now, there’s other ways of getting deals. You can do a ton of networking, you can just
search the MLS, but in my experience I think direct mail is definitely the best way to
go. You would outsource getting the list, and
I have different videos on how I get lists and different things like that. If you have questions about getting lists,
just drop them in the comments and I’ll respond. The next thing you should outsource is having
somebody answer the phone. You should have a business phone line with
your business. You don’t want to just put your cell phone
on different marketing pieces and things like that, it doesn’t look very professional. If you’re working a full-time job you’re not
going to be able to just answer every single phone call. There’s plenty of, there’s countless services
where you can have Phone.com to get a business phone number. Then, I use a call service called Dedicated
Office Systems. They just basically screen all my calls and
send me leads, essentially. They notify me via text message as well as
email and it just says, just has the lead info sheet which basically has the property
address, the name of the seller, how soon they’re looking to sell, the address, and
the amount they’re looking for. I know pretty much within 30 seconds whether
it’s a good deal or not because they’ll say, “Look, I want to sell fast, the house needs
a lot of work, and I’m looking to sell it for 200,000,” which might be an amazing deal. You should outsource the calls as well so
Dedicated Office Systems is good. There’s Pat Live, P-A-T Live. There’s also Answer First, and then there’s
also you can hire a virtual assistant. There’s plenty of other services but those
are really good for real estate investors. Then, the third thing you should outsource
is your direct mail. I do a lot of direct mail. If you’re doing cold calling, you can do that. If you’re doing networking, that’s obviously
more in person. If you’re searching the MLS, maybe you can
just pay someone to search the MLS for specific types of properties like TLC, Handyman Special,
Investor Special, things like that. Then, maybe they could send it to you every
single day. For outsourcing my direct mail, I use a service
called clicktomail.com where the person sends me my list that I’ve already outsourced. I basically upload that list to Click to Mail
and it sends out postcards for me. I basically just do that once a week and I
send out a lot of postcards. I get about a 1% response rate but out of
that 1% response rate you’re going to get some very motivated sellers, especially if
you get 10 phone calls. If you can just make your phone ring 10 times
in a month, you’re going to get two or three pretty motivated off market sellers, that’s
also going to help you. Once you go full-time, you’re going to have
a good idea of building a team and things like that. Once you go full-time, you’re going to want
to have a steady source of leads coming in, a steady source of deals that you can evaluate. You can practice with that, with outsourcing
those three things. Then lastly, before you become a full-time
real estate investor, it’s good to have a job in terms of the cashflow. You can also say, “Look, a year from now I’m
going to be a full-time real estate investor and I’m still going to have a job, I’m still
going to have the cashflow coming in. Maybe within that year you say, “Look, I’m
going to network. I’m going to meet 100 different people in
the real estate industry.” You can say, “I’m going to try three different
strategies for finding deals.” Maybe one would be direct mail, maybe one
would be cold calling, maybe you set up a YouTube channel, but you should try three
different marketing strategies during the time just so you can test and tweak and see
what works because once you go full-time you’re pretty much going full-time. It’s kind of hard to go back to work in a
full-time job. You need to be sure that your marketing strategy
is scalable, and that it works for you, and that you can get predictable results. That’s what I like about direct mail, it’s
very predictable. I know if I send out, let’s say, 500 letters,
I pretty much know how many phone calls I’m going to get. If I send out 1,000, it’s going to pretty
much be the same percentage. Obviously, if I send out 100,000 there might
be some, eventually it’s not going to have the same percentage but, generally speaking,
you can predict how many leads you’re going to get. Use your full-time job as security. Maybe you start buying some rental properties,
maybe you start flipping, maybe do at least five deals before you really jump in. Use that time to network as much as possible,
go to RIAs, meet up groups, anything like that. Try to meet at least 100 different people
in the industry and then try different marketing strategies while you’re working a full-time
job. Maybe you just wake up an hour earlier and
you send out some direct mail. Maybe you wake up an hour earlier, you make
a YouTube video, you do different networking, you reach out to different people. You really want to have tested some market
strategies before you jump full-time into the business. There you have it. Hope I answered your question on can you have
a job, a full-time job, and also invest in real estate. I would highly recommend that you do get a
full-time job before you think about becoming a full-time real estate investor. Especially, if you can get a job in real estate,
it’s even better because there’s going to be a lot of things that will carry over to
your own business. Thanks for watching. Please like, please share, please subscribe,
and I will see you in the next one. All right, bye.