So true. I was smitten by it and jumped into it and fell flat on my face. Through time and perseverence I have seen some modest sucess.
Like yourself, I have a love for REI. I have always had a “work for myself” streak in me but could never find something that challenged me enough.
Well I finally found it. I am still only doing REI part time but the feeling I get when I am driving down the road to look at a property is unsurpassed.
I always beem a smile from ear to ear knowing that I am on my way to financial independence.
I have thought of specializing in just a couple of aspects of REI such as buying and selling notes or just wholesaling.
But I want to do all of it, from wholesaling to rehabbing, to lease options, to subject too’s, and with all property types-SFH, multi-unit, Vacant Land, Condos, and Manufactured homes.
I have just started reading up on REI. So far I have finished Bob Allen’s Creating Wealth and Russ Whitney’s Building Wealth. Now that I have had enough cheerleading, I am reading Jack Cummings’s Real Estate Finance & Investment Manual to get a better understanding of the nature of rei.
Basically, I am struggling with the decision to continue investing my time into studying real estate books. I know what my goals are, the question is with the vehicle. Can real estate investing and related financing feasibly replace a six figure salary without requiring me to maintain 60-70+ hour work weeks? I am not interested in changing career paths only to arrive in the same situation
Assuming that I am bright, highly motivated, and have a little starting cash, is it likely that real estate investing can replace my salary and give me more free time? If anyone could provide some realistic expectations (personal experiences are always the best), I would be grateful.
Oh, I forgot to mention that I do have a wife and two children to support. So I must also manage risk.
Posted by avery hodge on July 10, 2002 at 14:50:59:
I’M WHAT THEY CALL A “NEWBIE” OR WHAT I CALL MYSELF A PRENEWBIE. I’M VERY GREEN. I’VE PURCHASED THE CARLTON SHEETS COACHING PROGRAM AND I’M LOOKING INTO THE LANCE YOUNG PROGRAM 'HOW TO BUY FORECLOSURE’S. ANYWAY I HAVE LITTLE OR NO CASH, MED RISK CREDIT AND BIG DEBT.
I’VE GONE TO THE LIBRARY TO LOOK AT BOOKS ON REAL ESTATE. I REALLY AM TIRED OF WORKING MY JOB BUT I HAVE NO REALTOR CONTACT, OR MENTOR TO HELP ME BUT THIS COACHING PROGRAM AND I’M NOT SURE I CAN DO THIS. CAN SOMEONE GIVE ME GOOD ADVICE AND HIP ME TO A MENTOR. THANK YOU.
With a name like yours, you seem to have the mindset to make it big. About 3 years ago I joined my local REIA, I was a full time mortgage-broker and started meeting many investors and asking them how long they had been in the biz and what they did, and did they have a full-time job. I learned alot and after a while I started getting bored of the mortgage business and at the same time saw that these investors were making very good money. I had actually helped some of them get some of this money.
Unlike you I was single and decided to take Dwan & Sharon’s course and began my RE career part-time. In my first 9 months I had made more money than I had ever and was hooked.
Over the years I have read many books and have realized that the key to success is FOCUS. I have seen many members of our RE group invest in thousands of dollars worth of material and not do anything with the knowledge.
The key for you in my opinion is to focus on what type of investing you want to do. Do not quit your day job, until you are liquid enough to survive 6 months with out any income. Include your family in your venture and make sure you have your wife’s 100% support, with out it you’re doomed. I’ve seen many investors fail because their spouses were not supportive. I know a couple who took my wife’s boot camp and with in the first 5 or 6 months have made over $80K. They are both in it 100% and as you can see, it has paid off. If you and your wife can work together who knows how soon you can quit your day job.
One book or a series of books I would highly recommend is Robert Kiyosaki’s. The first is Rich Dad Poor Dad. I have read them all and they have changed the way I think. If you can play his boardgame - Cashflow, you will learn a little more about investing.
Hope to hear about your successes in the near future. Just about every successful person invests in RE in one way or another.
If having a six figure income and working ten hours a week for it interests you, then real estate investing can be your vehicle.
Now of course this doesn’t happen overnight and if you have obligations, I wouldn’t quit my day job. Start with doing real estate on a part time basis. Once you are at the point where your real estate investing is approaching what you are making on your present job, then quit the job and move into our business full time. Real estate investing is not a job, it’s fun but serious work. It frees up large amounts of time and isn’t that what we all strive for. Freedom.
Thanks for your responses. I will be sure to check out the Success Stories BIGDADDY pointed out.
The promises in Whitney’s and Allen’s books just seemed too good to be true. My experience has been that things that are too good to be true, usually aren’t. A reality check never hurts.
I plan to pursue this as I would any other business venture, with lots of research and planning. Good luck to you all and I will keep you posted
If you have read Building Wealth and Creating Wealth and you still don’t know if real estate investing is for you, then it isn’t.
If you were the type of person who was cut out for this business then nothing would stop you.
As it is, you should thank God and your employer every day for placing you in the top 1% of the world’s wage earners. Keep on working at the job you like, or are at least content with, until they pension you off.
If you have read Creating Wealth and Building Wealth, and you have heard of Donald Trump, and if you are earning a 6 figure salary, and you still aren’t sure whether real estate investing is for you, then it isn’t.
Forget about financial independence, forget about ever leaving your job. Thank God and your employer every day for putting you into the top 1% of the world’s wage earners. Stay there until they pension you off.
You aren’t the type of person who was cut out for this business so forget it.
Posted by Stacy (AZ) on July 07, 2002 at 24:38:55:
Look into real estate investing to replace your current job ONLY if you find it captivating, interesting, and fun. There are ups and downs, and when the downs come, you need your own enthusiasm and love for real estate investing to get you through.
In my opinion, it’s not just a way to try to escape long job hours or financial distress. If you’re not smitten by it, I’d discourage you from jumping in full time. You could certainly do investing on the side, and eventually replace your income through accumulating rentals. Ask yourself if it would fulfill your dreams to be a real estate investor. If not, maybe your destiny lies elsewhere.
Posted by Julius Levai on July 06, 2002 at 23:33:48:
Hello! Looks like, youve got bitten by the same bug as most of us.. It is for life. Having a family to support makes it harder but worth while. Every-body can have a J.O.B.!!, but it takes a special person to work for him/herself. Ive this thrill for over 25 years and not going back no-more… Anyway, here is a person ( a relatively newcomer for this site) with some good background (policeman) and LeGrand as a teacher has some material to check it out; His name is Chuck Smith, stroll down on this page to find his email and aks him for some info… Julius from Oaktown.
Posted by Chris (TX) on July 06, 2002 at 23:24:41:
some days are stones. Starting out is generally a bit slow, but once you master the principles of REI and making money… the sky is the limit… well, at least until you make enough money to buy that sky, rehab and resell it… lol.
Seriously, if you are willing to work, RE works! Some days I work half an hour, other days I work 2… or 10… it just depends on what is required.
Read the success stories and the articles on this site (upper left hand side of the screen) and search the archives for any subject or question you may have… and read, read, read. The learning should never stop.
I don’t know what kind of money you are currently making, but in the type of housing I’m dealin in, I double my money within 2-6 weeks. Good enough for me
Oh wait, I did have one house recently that I sold the day before I bought it, so I guess I doubled my money in “negative time”… however you calculate that.
Posted by BIGDADDY(MD) on July 06, 2002 at 22:37:39:
REI can be extremely profitable with work but it won’t happen over night and as with any other investment there are always some risks involved. My advice is to continue studying because you will forget most of the things that you read but it will condition you into thinking creatively for REI, and keep your job until you feel comfortable walking. This way when you go to bed at night your thoughts are about things other than how you are going to put food on the table tomorrow for the wife and little ones. You sound like you have a good head on your sholders and are willing to work for what you want. But remember, when you are in business for yourself, you may work 20 hours one week and 100 hours the next. I just depends on what you have going on. Hope this helps.
BIGDADDY(MD)
