So you want to become a full-time real estate investor, do you? Well, that’s an excellent goal because a lot of fortunes have been made that way. But contrary to what the so-called gurus and the outrageously expensive courses they want to sell you say, it doesn’t happen overnight. Most people have to keep their jobs, start small, and gradually transition into full time. So here are a few tips to help you take your real estate investing business from Detroit side project to full-time career.
Understand Your Goals and Create a Plan
Right now you’ve got a full-time job, so your time and energy for running a side business are limited. A critical first step, then, to move your real estate investing from a Detroit side project to full-time career is getting clear about your goals. Then, once you’ve established goals, you need to formulate a plan of action.
Define a Niche
Next, in order to go from Detroit side project to full-time career in real estate investing, you will need to define a niche. Finding and concentrating on a real estate niche is essential for efficient use of time and capital and for discovering investment strengths and aptitudes. Here are some the considerations to take into account for defining a niche:
What aspect of investing do you really enjoy?
What are you good at – your strengths and talents?
What do you want to get out of your real estate investing business?
Where can you make a contribution and add value?
Start the Easy Way
As with any new endeavor, it’s always a good idea to begin with whatever is less complicated and presents less risk. Having mastered that, you can then move on to the larger, longer-term investing projects.
A good beginning point to take your real estate investing business from Detroit side project to full-time career is wholesaling. First, you will learn early on the most important skill: how to find the best investment property deals. In addition, the entry cost of wholesaling is very low. For all you have to do is find the deals and then locate interested investors.
House flipping is another good beginning point. You don’t have to hold the properties for long periods while you wait for them to appreciate and increase in value because you rehab the property and sell it as soon as possible – hopefully making a tidy profit. Still, it’s not quite as simple and easy as some popular TV shows would have you believe. But the great thing with house flipping is that you will gain a ton of valuable experience and pick up some very important skills, especially learning how to read the market.
Concentrate on Cash Flow
In the early stages of your real estate investing business, when you’re still trying to go from Detroit side project to full-time career, cash flow will likely be your primary concern. And this also means that buy-and-hold properties will not be your area of concentration at this point. You have to ensure a positive cash flow great enough to cover down payments, repairs, and the myriad unexpected expenses. The standard rule of thumb is that it takes about five years before much of your positive cash flow can go into your pocket.
While these are important tips for moving your real estate investing business from Detroit side project to full-time career, they are far from everything you need to know. But the great thing about this business is that you gain knowledge and experience as you go along and learn while you earn.