Become a Successful Full-Time Investor in 2023 - How to Know You a Ready To Start
Saying goodbye to the old nine-to-five and achieving true financial freedom is the dream of most real estate investors. After all, if you could live off of passive income and live your life freely, why wouldn’t you?
However, in order to make this dream a reality, you have to put in the work and make sure you have built a solid foundation first. So, before you quit your day job to pursue your goals, let’s make sure you are ready to live the life of a full-time investor.
However, before we dive in, if you want to become a full-time real estate investor, you need to know how to get the right financing. So, in order to master that skill today, click the link below for a free strategy call.
Before You Begin
First things first, if you think that becoming a full-time investor means that you will never work another day in your life, you are wrong. Just because you would no longer be required to come into the office or go into a job every day does not mean you are not working anymore.
In fact, there is a good reason why people call it ‘full-time real estate investing.’ Real estate is still a full-time job. However, it does come with plenty of room for you to remain flexible and live your life the way you always dreamed of.
As well, if you are going to dedicate yourself to becoming a full-time investor, make sure you have a passion for real estate. While real estate can be incredibly rewarding in the long run, it is still hard work, and you need to be ready.
What Does Financial Freedom Mean to You?
Next, if you are planning to quit your job in order to achieve financial freedom, you have to determine what that means for you. Typically, there are three main areas that need to be handled before someone considers themselves to be free financially.
Those areas are:
Emergency Funds
One of the most important things you should have before you consider yourself financially free is a solid emergency fund. If you had a sudden emergency such as a medical accident, car crash, or another urgent problem, could you afford to take care of it?
If not, try to build up an emergency savings account that only access if you urgently need those funds. Experts recommend saving enough to survive between three-to-six months without your primary source of income.
Credit Card Debt
While credit cards are not inherently bad, credit card debt is. Credit cards and the benefits they provide can be incredibly beneficial for their cardholders. However, you are carrying a balance from month-to-month you are hurting yourself financially.
Unfortunately for many people a credit card is a one-way ticket to overspending and debt. So, you need to be careful not to fall into the same trap. If you are currently carrying a balance, try your best to pay it down as quickly as possible. That way you can get back to using them for their benefits and rewards, instead of allowing them to drag you down.
Other Debts
Take a second to assess all of your debts. Those can be car payments, student loans, mortgage payments or any other debts you need to pay off. In order to become a full-time investor, you do not necessarily need to pay all of these off, but you do need to know your limits.
These will be incredibly important when you go to purchase property and your lenders are calculating your debt-to-income ratios. Lenders often do not want to loan to someone with a high level of debt relative to their income, so be sure you have your debts under control in relation to your income before you quit your job to invest full-time. Otherwise, you may hit a dead end with your mortgage lenders.
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Are Your Investments Reliable Enough?
Another key question you should ask when considering becoming a full-time investor in the real estate market is whether or not your investments are reliable enough to fund your lifestyle while continuing to grow your portfolio. Ask yourself these questions:
- How much do you need each month to cover your needs?
- How much do you have to pay each month on recurring debts and payments?
- How much do you need to keep up with your savings?
- How much are your properties making in cash flow?
- Is that cash flow enough to cover all of your expenses and savings?
If you can answer these questions and your final answer is yes, you might be ready. However, you should always speak with a financial professional before taking the leap.
Is it Time to Quit Your Job and Become a Full-Time Investor?
Finally, once everything is considered it is time to ask yourself, ‘Am I ready to quit my job and become a full-time investor?’ If you answer is no, do not feel bad. There are plenty of people who enjoy the security of a stable job and would rather use their investments to bolster their lifestyle instead of depending on their investments alone.
However, if you are ready to make that choice, do so with confidence. Use the passion and reassurance you have built and push forward chasing new leads and properties in order to maintain lifelong financial success.
How to Achieve the Dream Of Becoming a Full-Time Investor
Finally, if you wish to truly achieve the dream and find lasting success and financial freedom as a full-time investor, never stop learning. Plenty of unsuccessful full-time investors get stuck in their ways with old, outdated strategies that are not designed for today’s market. So, it is important to remain flexible and know when to reach out and ask questions.
If you have any questions of your own, do not hesitate to contact us at LendCity. Our team of professionals will gladly help you get the answers to your investment questions. So, once you are ready, give us a call at 519-960-0370 or visit us at LendCity.ca Alternatively, click the link below for a free strategy call today.