Is it possible to build wealth by working half time?
Real estate investing is a great way to build wealth. This is an opportunity to invest your savings while working, studying, or just enjoying life with family and friends as a passive investor, and spending less (or more) time on projects as an active investor. New investors often find themselves lacking time or resources to commit 100 percent in the business, leading them to ponder if it’s possible to do it part time. But is it possible though? Of course it is!
PROS of Real Estate Investing (even part time)
Supplemental Income: If you have another job, you basically have two sources of income. Part-time investors have the advantage of steady cash coming in while their real estate investment is generating cashflow or appreciation.
Fallback career: Part-time investing lets you test out the waters. As good as it may seem, no industry is perfect and some have more risks compared to others, especially if you don’t have a mentor guiding you. Your investment properties will generate the income, and you can continue your current job. A win-win situation!
Brand New Network: If you’re doing this part time, you probably have someone working with you. This gives you the opportunity to meet with clients and fellow investors who can share valuable experiences. You might even pick up life lessons that will help you in other aspects along the way.
Flexibility: If you decide to have your investment driven by a reputable property management company with a reputable track record, you can go on with your daily routine and agree on a convenient time to address any questions/issues. Many investors find this to be the optimum solution.
CONS of Real Estate Investing
Time Consuming: If you are a landlord, handling two jobs isn’t easy, especially if you decide to oversee your investments without the expertise of a property management company. Dealing with retaining qualified tenants and maintenance issues is a continuous job.
Avoiding Bad Deals: If you are flipping, it is crucially important to find and asses properties in the right location, with either a high rental demand or sale ability. Experts can help you assess the property by using current and future projected market data, a proforma, and specific strategies. You will lose a lot of money if you buy in the wrong location and use incorrect comparables. Also, not having a reliable contractor to give you an accurate bid for the renovations prior to purchase can really hurt you if your budget is off. This is why wholesalers or fix-and- flippers should learn how to roughly budget renovation costs.
Real estate investing can demand a lot of work —part time or full time — and this is particularly true when you have multiple properties already. Here are a few tips to do it effectively:
Find the Right Niche
Look into a strategy that has a more hands-free approach. It can get hard to choose from the vast array of real estate strategies out there. You only have a limited amount of time to dedicate, so look into one what works for you and stick to it. The more you familiarize and master that particular niche, the more time you’ll have to produce results. And, you’ll be surprised how little time that will take.
Focusing on lead generation can score you with the best deals in the real estate industry. Dedicate at least a couple hours a day, or even 20 hours a week to marketing your business and generating leads. Just a reminder, that not all good leads convert into successful deals. Research and get suggestions for effective lead generation programs that can be a source of qualified leads and a lot of data that meets your business criteria.
Expand Your Network
You need to have a network of professionals in real estate. Investing in this industry is a “people” business. You need to work with different types of people such as buyers, sellers, loan officers, mortgage brokers, appraisers, etc. Each person can provide a link for you to build a strong network.
Find a Reputable Mentor
Even the best investors were once under the tutelage of a mentor. Joining a real estate team or finding a partner who does investments full time can provide insight and many benefits. Knowing the right time to buy or sell, managing any risks that may come along, and increasing chances to close the deal are all part of their daily routine.
A reputable mentor is key to a successful start, even if you’re only in the business part time. You CAN find success as a part-time real estate investor, and then you decide how much time you want to invest.