Working a day job and investing in real estate don’t necessarily have to be separate endeavors. In fact, many top investors got their start their careers this way. Doing both can provide multiple income streams and lucrative financial returns. Achieving success will require creative strategy, dedication, and hard work, but it can certainly be done.
It’s important to treat your real estate investing like a business. You will be responsible for advertising, legal matters, finding and managing tenants, collecting rent, dealing with taxes, and more. The ultimate goal should be reaching a position where you have enough surplus cash flow from your real estate investments that you don’t necessarily have to keep your day job.
Putting in the time and effort to stay organized and find great opportunities can help you build your wealth. If you are dreaming of financial freedom, investing in real estate while working a full time job can make your dream come true.
Getting Started: Patience is a Virtue
Rome wasn’t built in a day, and neither are cash generating real estate investment portfolios. When you are just starting with real estate investing, it can often take significant time to get your portfolio up and running. It’s vital to take your time before making any big investment decisions. Finding the right investment properties requires a lot of hard work and time. Patience is key.
Financial analysis and studying current market trends is crucial when seeking out real estate opportunities. However, the real secret to achieving success with real estate investing while working a full time job is becoming an expert in time management.
There are only so many hours available in the day. Investing in real estate while you are working a full time job means dedicating free time to real estate investing– but the sacrifice is worth it’s weight in gold. Get up early, stay up late, or use your lunch hour to work on finding the next property to invest in. Creatively managing your time is essential.
The Benefits of Keeping Your Job While Investing
Before you decide to quit your job and focus on real estate investing full time, keep in mind that there are several perks associated with being employed while building your investment portfolio.
- A buffer – Think of having a job as a safety buffer rather than an obstacle. Having a full-time job when beginning your journey investing in real estate gives new real estate investors a since of financial security in case something goes wrong with their real estate investments.
- Steady income – when you have a steady paycheck, you have the freedom to make sound investment decisions because you’re not making them because you are dependent on the income from investments. This could mean not jumping on every deal and instead picking the cream of the crop.
- Financing – receiving a steady flow of income from your job will have a huge impact on any financing from banks.Having that 1099/W2 to show the bank that you have income to make that payments will make getting loans much easier.
How to start Investing in real estate Part-Time
Your day job takes up most of your time up during the week. Therefore, you will have to start out as a part-time real estate investor. Creating systems and organizing your life to make the most of your time not spent in the office is crucial. Every minute counts.
It’s simple, if you are unorganized, you will struggle to find success in real estate investing.
Limiting unnecessary activities will help you make the most of your time. Create clear and specific financial goals for your real estate investing to stay dedicated and keep your eye on the prize. You will have to make sacrifices to be successful, which is why having a clear purpose will ensure that you are dedicated to the cause.
A Few Tips on How to Start
If you are overwhelmed about what you need to do to get started investing in real estate when you already have a full-time job, follow these tips to help you understand what it takes to succeed.
- Dedicate time and effort – as with anything, if you’re not dedicated, you are unlikely to succeed. Starting in real estate is like starting your own business. Calculating cash flows, extensively researching the market you plan to invest in, and managing apartments are all typical responsibilities for new real estate investors. Keep in mind that a good chunk of your personal time will have to be dedicated to starting out in the real estate investment industry. It may seem like a big sacrifice at first, but it pays off– just think of the benefit you will receive from starting out the right way: steady, reliable cash flow.
- Be tenacious – not everything will go perfectly all the time. In this market, things go quickly and people with full-time jobs may not always have the flexibility in these situations. Be prepared to face some failures, but know that with perseverance, you can strike gold.
- Organize your days – adding real estate investing to your already busy schedule can get a bit hectic and overwhelming. The best way to handle the situation is to take control and put systems and schedules into place. If you’re not organized, you’re going to spend unnecessary time locating things such as phone numbers, paperwork, task lists, etc. Set a schedule for both your work and personal time. Put everything on the calendar, including family time, and stick to it.
- Outsource – hiring out can be a lifesaver when you’re juggling have a full-time job and investing in real estate. Unless you’re a lawyer or an accountant, hiring out functions that require deep expertise could save you time and unecessary headaches. Most landlords consider maintenance the most time-consuming part of owning a property so many part-time real opt for hiring a property manager to take care of all aspects of an investment property such as cleaning, rent collection, repairs, tenant screenings, and more. Hiring one should be a priority if you have a full-time job and can afford it.
A Simpler Option: Real Estate Crowdfunding
If you want to invest in real estate while working a full time job, time is of the essence. It can take a lot of time and effort to obtain financing, manage rentals, and find undervalued properties. Juggling those responsibilities along with working a full-time job is very challenging. The complexities of investing in physical real estate can be a big deterrent for investors who want to hold on to their day job.
But for those who want to start in real estate investing without having the responsibilities of being a landlord, there is a simpler option.
With Real Estate Crowdfunding, you have the opportunity invest in real estate without having to physically acquire properties. Real estate crowdfunding involves aggregating money in order for a company to purchase real estate, develop and manage the property, receive cash flows, and ultimately divide the profits to investors. Raising money through a collective group of people means the financial requirements are much lower than what is required for investing in physical properties. Real estate crowdfunding also allows you to create a diversified real estate portfolio with relative ease.
When comparing eal estate crowdfunding platforms, look for a company with an experienced team that understands the markets they operate in. As with any investment, it pays to take the time to choose the right crowdfunding site for you.
Invest with a partner, not with a broker
Don’t invest with a broker platform that charges you unnecessary middleman fees. Unlike other online platforms that function as a broker, matching investors with different third party projects, DiversyFund offers real estate investments where they are the developer and sponsor, and they manage each investment on their platform. So with DiversyFund, you get an investment partner with skin in the game. Say goodbye to brokers and middleman fees.