QUIT YOUR $40,000/year job to REI full time????? - Posted by Nate


#1

Posted by Steve (GA) on December 26, 1998 at 12:21:03:

JOHNMAN,
What real estate group did your cousin get involved with in Atlanta? I know there are several groups active around the city but if I could get a referral it would help me decide which one to visit. (By the way, I live in Gwinnett county.)

Thanks, Steve (GA)


#2

QUIT YOUR $40,000/year job to REI full time??? - Posted by Nate

Posted by Nate on December 26, 1998 at 02:32:37:

I’ve got a question for all you full timers who have the experience under your belt…

Do you think it’s realistic to quit your job and start investing full time with three months of living expenses in the bank?

I live in Oregon in the Willamette Valley where prices are high, but there are deals to be had…

I really feel a peace about quitting my job (because I’d like to spend more time pursuing my #1 dream–my music career). I’m just a little nervous that I may be being a little too optimistic.

What do you all think?

Merry Christmas!


#3

Re: QUIT YOUR $40,000 job?? - Posted by Irwin

Posted by Irwin on December 26, 1998 at 17:10:15:

Before answering your question, I have to ask you two questions:

  1. How much do you (really) know about various types of real estate investing; and

  2. How many successful r/e deals have you made to date?

O.K., I lied. It’s three questions.

3)Can you make enough money now in your music career (hardy har har)** to sustain yourself for a year or two while real estate comes on line.

It’s very tough to succeed a business part time, where others are doing it full time. Real estate is one where you can do it, but your “success” will be a lot less than those doing it full time. If the answers to nos. 1 & 2 are sort of negative, i.e. you don’t know much and haven’t done much, then scroll down to the posting from Ron,(Went Bankrupt and Needs Help) who got an education the hard way. In other words don’t quit your day job. BUT here’s an idea:

If the answer to 3, is yes, then perhaps consider switching main careers while pursuing the r/e as a sideline. The working times might complement each other. At least you’d be doing something you love doing, and making a living at the same time.
Hope this helps.
**The Hardy Har Har comes from the fact that I’m the father of a struggling young musician/composer and know how tough it is to get going in music.


#4

I Wouldn’t If I Were You… - Posted by JPiper

Posted by JPiper on December 26, 1998 at 13:13:30:

Nate:

If I understood your post correctly…and I think I did…I wouldn’t quit your job for the real estate business.

The number one requirement to be in this business is to love it. This is what carries you through the rough spots, the difficulties, the reverses. What you said is that you love the music business…not the real estate business.

Evidently your goal is to get into the real estate business part-time so that you can do the music business in your spare time. It doesn’t sound to me like you have the psychology, the desire, behind you to successfully pursue the real estate business.

Real estate isn’t an easy business, one that you just kinda do in your spare time and make the big bucks. Nor is music I suspect. Why not go for what you love, and forget the side-tours??

Just my opinion.

JPiper


#5

Did it in Oregon, 3/31/98 - Posted by pboone

Posted by pboone on December 26, 1998 at 11:53:04:

Nate,
I was an employee in the Portland area last up until March of 98. I have not looked back. My income from the JOB for 97 was 53K it was difficult to leave.
I guess it really depends on WHAT DO YOU WANT! That question has to be answered.
We live in a market that is priced higher than some other areas of the country, #14 in the nation last time I checked.
What I am getting to is it can be done. It’s not going to be easy.
Pat


#6

Re: QUIT YOUR $40,000/year job to REI full time??? - Posted by Ed Garcia

Posted by Ed Garcia on December 26, 1998 at 11:46:30:

Nat:

I don?t know your personal circumstances, meaning I don?t know if you
are single or married.
If you are single, of course you can take some risks.
If you are married, then you have a responsibility to you family.

This business has been vary good to me. However it is not for everyone.

I have had many people ask me what is the best course or way to start in
the business. My answer is, there is no better place to start than the street.
When you learn off of the net, or take immediate courses I find you get
what I call the hoopala of the business. You get the excitement or sizzle
in cooking a stake, because you learn to understand the concepts.
But what you don?t realize, is the sweat and hard work it takes to find or
originate a deal.

I feel if you have gone out in the community and learned the market place
as well as the what?s going on in your community. If you have learned
property values and costs for repairs. If you have looked for
deals and are having trouble finding them or don?t seem to get the breaks
you feel you should get, but still find yourself sticking with it. Then you
are ready to learn the business.

In any business you have to pay your dues. So much of the time I find that
people enjoy the excitement of learning real-estate investing , but then fail
when they realize the hard work involved.

My suggestion is for you to stay on your job and go out on weekends
looking for deals, giving yourself a chance to wing yourself into
the business.
As you test the waters you should do deals, If you do, then you will have
a better feel and understanding as to how to make your next move.

When your ready, you won?t be asking us,

YOU?LL KNOW WHEN YOUR READY???..

Ed Garcia


#7

Re: QUIT YOUR $40,000 - Posted by Carol

Posted by Carol on December 26, 1998 at 10:38:55:

It’s tempting, and there have been LOOOOONG threads on this subject here. I, too, will share a bit of our story, but ultimately it comes down to your level of tolerance for risk (mine is rather low) and your responsibilities (I have a lot).

We began investing a couple of years ago, got comfortable enough to realize that we were doing ‘OK’ but knew enough to know that we could do better.

We spent some $$ while both still had outside employment learning - seminars, tapes, books, etc.

Finally when it became obvious that the rehab-maintenance- management aspect of our investments was getting to the point where we either had to do more hiring out, restructure our biz, or free up time, my hubby was the one to leave the business in which he was a partner, as his hands on supervision and participation was the area of greatest need.

Yes, he now has a bit of a ‘job’, doing a lot of our ‘handyman’ work and supervising the rest. But, frankly, he enjoys it… and we have the income replacement to justify it - in fact, with his availability we are overcoming some of the frustrations we experienced before.

On the flip side, I generate a comfortable outside income, so we have not gone cold turkey. The plan is for me to have the option to free my time in another 18 months-2 yrs. Please note I said “option”. I enjoy my other activities and may be able to continue with both.

This is long, and probably boring, to give you some insight into our insight and process of arriving at these decisions .

We encourage you to work thru the process and come to the right decisions in the right time FOR YOU.

Best of luck,

Carol


#8

Re: QUIT YOUR $40,000/year job - Posted by Johnman

Posted by Johnman on December 26, 1998 at 07:44:05:

Nate,

My goal is to quit my job too. I would like to share with you what my cousin did and how him and his wife were able to do REI full time.

They first attended meetings of a real estate group in Atlanta. They studied the several ways to make money in real estate and they chose what they felt comfortable with doing. They did REI part time. After 1 1/2 years my cousin quit his job then 2 months later his wife did. They took their time and looked at their finances and spending habits. They are doing well now. By the way their combined income when they were working was about $65K.

This question was asked before and majority of the full timers concurr that you need to take your time and do a few deals first. Get comfortable with the transactions. Save as much as you can and watch your spending habits. You will know when it is time. Don’t set your self up for failure. I use my cousin as a guide and inspiration. If he can do it, anyone that has the willingness to do it and prosper can.

Just my 2 cents from a newbie,

Johnman