Posted by Laure on November 12, 1998 at 21:00:03:
Aw shucks… thanks !
Posted by Laure on November 12, 1998 at 21:00:03:
Aw shucks… thanks !
20% effort = 1% success - Posted by Kevin(OK)
Posted by Kevin(OK) on November 12, 1998 at 07:58:00:
If a person works a 40 hr. work week and then puts 8 hrs. into RE on the weekends, it will add up to very little success. I am in that situation. Oh sure, I have flipped a few houses and made a few thousand $$, but it is not enough to move me any closer to my dream of quitting my job (I hate that word!). Every successful investor I have talked to in person has told me that they went full time RE right from the start! None of this working two jobs B.S. I am strongly considering quiting my job, even though I need the income from it. I just can’t continue being a part-time RE failure. I lose deals every week because of my job (that word again). It ticks me off!! My wife thinks I am crazy! She says “if you can’t make any RE money now, how are you going to make money doing RE full time”. She is right. I don’t know if I will be able to make it work full-time, but I do know that I am getting no where fast doing it part-time.
Re: I never thought I would say this… - Posted by Tim Jensen
Posted by Tim Jensen on November 13, 1998 at 18:29:08:
Hank TX is right!!!
Re: 20% effort = 1% success - Posted by Sheik
Posted by Sheik on November 13, 1998 at 08:59:36:
Personally I think this is a question only you
can answer. You and only you really know your
risk tolerance. Do you have a family? kids? are you
comfortable with not knowing where on when you will
get your next deal?
I have heard a lot about investors jumping in full-time
and becoming successful. I must admit that I lean more
toward the conservative side and simply don’t have the
guts to do that ( but you might).
As Robert Ringer says “[I am] the tortoise”.
It boils down to whether YOU are comfortable with it.
Hope this helps
Re: 20% effort = 1% success - Posted by Ray(OH)
Posted by Ray(OH) on November 13, 1998 at 06:22:06:
I quit my job June ist of this year to go into RE full time. I had made arrangements to borrow 4 months equivilant of my current salary(take home) to live on,which has turned into 6mo of borrowing. It is finally starting to pay off. We’ve made mistakes and changed course a couple of times. If you can support your family for six months on your 401k I wouldn’t worry about retirement, your RE investments will do that for you. I have borrowed myself into a big hole, but with real estate I have no fears that I will be out that hole very soon and I will never again work for somebody else, making them rich while I collect my salary. Now my time is spent making ME Richer than I have ever been, in more ways than one. I’m not out of the woods yet, but I have never been happier.
All along I’ve known that the worst that could happen is that I would have to get another job for awhile, but I won’t let that happen.
And Good Luck
If you want to make it, you will
Re: 20% effort = 1% success - Posted by Jim Gibson
Posted by Jim Gibson on November 13, 1998 at 02:06:37:
There are ways. I work full time (afternoon shift) as an aerospace engineer in Southern California, I also write software and consult for a local foreclosure info company. In my “spare time” I invest in foreclosure properties. The best I have done is three deals in three months. I made about $50,000 in that period. This year, my “outside” income will be about 30% greater than that from my aerospace job. It can be done. It is necessary to streamline your approach so as to maximize the effect. Don’t jump too soon. You can do it. Be patient. Good Luck!
Thank you all for your support… - Posted by Kevin(OK)
Posted by Kevin(OK) on November 12, 1998 at 22:26:38:
…and ideas. I just lost 3 deals yesterday, and I thought they were pretty strong deals too. I would have pocketed $25K if I could have pulled all 3 off. However, my stinking job got in the way AGAIN! I quit my old job last week (11 years with the company), and I started a new job this week (this is just a short term fix to a long term problem due to the fact that I want to be self employed). So, while trying to concentrate on a new job, I somehow lost these deals. This is why I am strongly considering quitting. I have my 401K from my last job that I could use to support myself, but I would take a big tax hit, plus I would have nothing saved for retirement. The no-money-down, little risk way of doing things is not working. I am ready to pool all I own and all I can borrow to put toward RE full-time. Do I have the guts to do it? Is it worth the risk?
Have a plan before you jump ship… - Posted by Rob FL
Posted by Rob FL on November 12, 1998 at 21:02:13:
Make sure you have at least enough of a nest egg in savings to protect you in case things don’t work out as well as planned probably at least 6 months to a year’s worth.
Do what you can to eliminate all of your consumer debt. I am strong believer that there is only three times you should ever go into debt (1) emergencies (2) to buy a home (3) for investing/business purposes.
Come up with a budget and cut your wasteful expenses. My wife and I have created a budget where we can support ourselves no frills for $1000 a month (which includes our home mtg payment). If neither one of us was working we could get by on $12,000 a year with no frills of course. That doesn’t mean that we don’t spend more than that now, but if necessary we could cut back very easily because we have no debt other than mtg payments on our home and other properties.
Lastly come up with a game plan for success. You need to map out exactly what your goals are, when you will achieve them, how you will achieve them, and have a back up plan in case you need it.
Time is what you make of it - Posted by Mr Donald
Posted by Mr Donald on November 12, 1998 at 19:30:58:
Make the most of your time.
Weekends, long lunch hours, after work - whenever you allow your schedule to permit.
Re: 20% effort = 1% success - Posted by DanM(OR)
Posted by DanM(OR) on November 12, 1998 at 18:01:26:
How about a compromise. Can you go part time in your current job. Maybe 75% and then 50%, but either way a gradual out. I don’t know what your current employment is, but give it a thought. Maybe 50% effort = 50-100% success.
Re: 20% effort = 1% success - Posted by Jason-DTX
Posted by Jason-DTX on November 12, 1998 at 14:57:43:
Wade Cook says that most people think they can go from poor to rich. In reality you go from poor to “the road to being rich” to rich. The road to being rich is worse than being poor. Are you and your family ready to make the sacrafice? You said you need your income, what if you can’t replace it right away. Are you willing to accept what happens if you can’t make the income fast enough. Real Estate deals take the longest to pay off when you need the money.
I was in your situation and I just “jumped ship”. It wasn’t what I expected and it was a rocky road for a while, not just for me but also for my wife and kids. I don’t have any regrets and I am glad I went full time. What’s the worst thing that can happen? Things don’t work out and you have to get another job? Leave your job on good terms so that if can’t make it you can go back. Or you could leave your job on bad terms and then you will have to make it!
Overnight success stories are the exception to the rule, however you can have success so hang in there.
Re: 20% effort = 1% success - Posted by Bill Gatten
Posted by Bill Gatten on November 12, 1998 at 14:32:27:
After reading the posts to your question, I think the best advice so far was from Mat B–"[continuing] to seriously consider it, is certain failure in anything you do."
Remember the ancient Greek’s sure-fire method for winning wars? They dumped their soldiers on their enemies’ soil, then burned the ships they’d arrived in.
My only advice is, before quitting your job, take two full days (eight hours each) and map out your 1 year, 2 year and 5 year plan, along with your precise monetary goals a time parameters. Then go for it!
Re: 20% effort = 1% success - Posted by John from Dayton
Posted by John from Dayton on November 12, 1998 at 11:19:53:
My humble opinion is simply this. If you don’t have at least 6 months worth of expense money saved back then don’t quit your job. Believe me I’ve been there, done that (different business) and the pressure on you to provide for your family will be immense unless you are successful right away. It could also cause you to get into marginal deals that you might not otherwise have done if that pressure wasn’t there. Also depending on what facet of the r.e. business you want to get into you may NEED your job to show verifible income if you want to secure financing. I suggest you find a job that allows some flexibility so you have more time to work your new business or find another income source to at least cover the essentials so your mind stays clear and focused on the target not your next meal. I’ve been doing this business for a year part time and have accumulated more than twenty properties while working a full time job, helping a disabled wife, serving as high school band parent treasurer AND band equipment truck driver. Anything is possible but you’ll have to give up your weekends and nights for a while. I don’t say this to brag just to let you know it’s possible to have your piece of mind AND move forward on your ambitions.
Vacations, and bad attendence - Posted by Mark R in KCMO
Posted by Mark R in KCMO on November 12, 1998 at 09:44:26:
You can have you cake and eat it too, I don’t know your total situation so here are a couple of questions.
Are you able to work 1/2 days and take a 1/2 vacation?? If so there is one way to get your feet wet.
What would happen if you “leave early” to make RE appointments? To buy or to sell?
I was fortunate that I was able to take an incentive to leave my job in oct of 97. I will not claim that it was easy or there wasn’t any stress involved, what I will say I am glad that I did. I know that it was the best choice for me.
I didn’t have the additional pressures of needing to support a family so I imagine that your incentive is higher than mine.
Hope this helps
Mark R in KCMO
JUST DO IT! - Posted by Matt B
Posted by Matt B on November 12, 1998 at 09:10:15:
An even better way to fail at real estate (or anything, for that matter) is to “strongly consider” doing it. I am not a seasoned investor, but someone about to drop the “job” habit, and start making my life happen instead of letting it happen. (Fast becomming my favorite phrase) I have managed to do 2 mobile home deals so far while working a 10 hour mandatory work day with an hour and fifteen minute one way commute. I’ve also felt your same frustration at missing so many deals because of being at “work” when I could be making deals.
It certainly doesn’t pay to jump blindly, but since you say you have done some flips already, you aren’t blind. I have a plan in place to quit my job at the end of the year and pursue investing full-time. I expect setbacks. I expect disappointments. What I do not expect, and do not accept is failure. The only failure to me is staying at this “job”.
I have “planned” for years to get into investing when I had enough money, or when I had a better job that paid me better. Luckily, I’ve been able to wake up and smell the hamster wheel since then. It certainly looks like I’ve had a lot of success, climbing the ladder to better jobs and more money, but it turns out that no matter how fast I was running and that wheel was spinning, when I looked away from the wheel, I was in the same place. I was still in my cage. Talk about getting nowhere fast!
It’s impossible to fail if you keep taking action. Haven’t you succeeded at being an employee by taking the consistent action of going to work every day? Taking action does not mean that you succeed on your first attempt, though. I believe that you already understand that.
Just remember, the surest way to succeed is to take action. The surest way to fail is to take no action. Plan, but then DO!
Re: 20% effort = 1% success - Posted by Laure
Posted by Laure on November 12, 1998 at 09:00:04:
DON’T QUIT !!! You do need to feed your family, don’t you? What do you do with your evenings? weekends? Use that time… give up your time, not your food money. You can make calls on your lunch break, and appointments for after work… I DO IT !
Maybe I am making my life too hard. But I Like the double income stream ! actually triple, cuz my hubby works too. Will I quit? YOU BET !! after the next house deal or maybe not ! I remember too well having my power shut off… no water for a shower… robbing piggy bank for gas money… I AM JUST NOT GOING THERE AGAIN. What happened is that I had a few bad years, got a divorce, have 2 teenagers, got to keep the family business, be that good or bad … but I managed to keep my real estate through it all, and now it’s paying off BIG. I WOULD SUGGEST STAYING SAFE. My monthly cash flow is very good from my rentals. But I like having heat. and I can’t predict the next lump in the road.
Re: 20% effort = 1% success - Posted by Matt B
Posted by Matt B on November 13, 1998 at 07:32:35:
I am quitting my job at the end of the year. I am curious as to what sort of real estate investments you have done. Also, do you have some general insights, advice, or just experiences that you could share to help someone who will be quitting a job to pursue investing full-time? Anything that you could add would be greatly appreciated. I do want to make it, and I know I will. I would like to benefit from your experience to help me get a jump start and possibly avoid some pitfalls that I may not be aware of. Thanks for your help!
The Reality of 80-20 - Posted by Sandy FL
Posted by Sandy FL on November 13, 1998 at 09:24:14:
Kevin, Have you ever heard this theory? That 80% of our efforts result in 20% of our results… and that 20% of our activities bring on 80% of our results? In other words, its the key 20% of things we do that make the biggest difference. 20% of what you do in a day is what will bring about 80% of your results. These are most likely the important phone calls you make, the offers you fax or write, the research you do or ask to have done, and the acual visits to the properties yourself.
I don’t know you and you don’t know me, but be honest with yourself. Are you really losing deals because of your job? Or is it maybe due to the 80% of stuff you do, when you should be doing the key 20%?
I am just as anxious as anybody to quit my job, but at the same time, I have insurance, I have income, which I need to keep my investing going, I have some contacts to network with, I am contributing to my 401K and paying taxes. Personally, I have got to be a little more secure in this business before I jump ship. I have heard about warriors burning the ships too, but hey, if I were you, I would listen to the folks who have done what you want to do. What were the pitfalls in their plan? What were the advantages?
This is what I do—I take my portable to work and make my calls on my breaks. I delegate ALOT. Use your realtors, attorneys, title agents, fellow investors, bankers, mortgage brokers, and computer geek friends to
do some of leg work FOR you. I work in the evenings and weekends just like everyone else, but because I enjoy it (and I still don’t lay tile). I do call in (shhh) or switch days when possible, if it means I am gonna lose big if I don’t! (like - for inspections, closings, etc) Know which side of the bread your butter is on, so to speak.
I can appreciate your feelings about this situation,
right now especially because you are in a new job and
you are supposed to be focusing on making a go of it
there. But hang in there, we are with ya, buddy. You
have touched a chord, from the looks of this lonnng thread.
Consider buying mortgages w/401K 4 income… - Posted by raelynn mitchell
Posted by raelynn mitchell on November 12, 1998 at 23:30:23:
and check out the links on this website about doing it. IRAs can buy anything legal if packaged right. Take a look. It won’t give you income, but especially check out the Roth IRA. Maybe you can roll your 401K into a Roth IRA. (I’m no expert, just check out Hugh Bromma’s info and/or contact him.) Grow that thingy HUGE and then you’ll have a little more cushion while you do the RE full time.
Some Greeks actually fail miserably. - Posted by HankTX
Posted by HankTX on November 13, 1998 at 12:06:17:
I was in a homeless shelter for a year. Be careful
if you quit your job.