Should You Quit Your Day Job?
By Paul Esajian on December 2, 2013
Most new investors aspire to be successful enough to quit their day jobs. Self employment is perhaps one of the biggest draws to entrepreneurship in the real estate industry. While this is admirable, is it really the best move? Quitting your day job may sound great, but it might not be in your best interest. If you are closing deals and working full time, aren’t you getting the best of both worlds? You are earning the benefits and retirement savings from your employer while still finding time to conduct your real estate business. Unless you are missing out on multiple opportunities every month, there may not be a need to quit your day job.
With advancements in technology and website improvements, you can preform investment activities from your phone or computer. The need to physically leave the office and sign documents is over. You can research a property on a website and conduct business on your lunch break. With text and email, you don’t even need to be on the phone. If you have a good system in place and a strong team around you, the need to accelerate to full time investing may not be there.
If you are at a job where you wake up every day and dream about quitting, then you may be investing for the right reason. If you truly love what you are doing and love the real estate business, why not take the best of both worlds? Investing strictly for money will become frustrating and give you your fair share of ups and downs. Doing what you love 35-40 hours a week while still squeezing in 5-10 hours on your investing passion may be the best way to go.
You may have money coming in from your real estate business, but is it enough to live on every month. If you quit your job, you lose your primary source of income. What if real estate deals don’t come pouring in? Are you a successful investor now because your decisions aren’t driven by short term income? These things would all change if you took away your annual income and benefits. If you are finding yourself being stretched too thin, look for ways to make it work before you consider leaving your employment. All you may need is a new system or an improvement in regards to your time management.
With investment club and networking meetings usually held in the evening and most open houses on the weekend, you’re probably not missing out on networking and finding deals. You may have to sacrifice one night and weekend a month, but in the end, that is a pretty good tradeoff to keeping your full time job. Leaving your job and dedicating more time to investing does not guarantee that you will be a more successful investor. Think about all of the pros and cons before you decide to make any move.
The problem with most investors isn’t time, but how they decide to use it. If you have a good job and are successful as an investor, stick with what you are doing and enjoy the best of both worlds.