Sarah Larbi : How to Invest in Real Estate While Working a Fulltime Job
Real estate investment is appealing due to its tangible return on investment. Unlike stocks or bonds, real estate is a physical asset that can provide cash flow and appreciation over time. This combination makes it an attractive way to grow your wealth.
Moreover, real estate is widely regarded as a hedge against inflation. While other assets may lose value during periods of high inflation, real estate typically does not. Instead, the value of property and rental income often rise with inflation, providing investor protection.
Another advantage of investing in real estate is the ability to leverage other people's money. When you purchase a property with a mortgage, you can control a valuable asset without providing all of the money yourself. Over time, as you pay off the mortgage and the property appreciates, your equity in the property grows, and so does your wealth.
Finally, real estate investing provides the opportunity for diversification. Owning properties in different areas and types can spread your risk and potentially increase your profits.
A full-time job can support your real estate investment in several ways. Firstly, it provides a steady income stream that you can use to fund your property purchases and cover any unexpected expenses. Secondly, a full-time job can boost your borrowing power. Lenders typically look more favourably upon borrowers with a stable employment history and regular income.
Maintaining regular employment can also act as a safety net. If your property investments face temporary setbacks, you can rely on your job income to help weather the storm.
However, balancing a full-time job with real estate investment can be challenging. It requires good time management, dedication and a willingness to learn. But with the right approach and mindset, as Sarah Larbi attests, anyone can succeed in this field.
But first, if you want financing for your next investment and want to know what type of collateral may be involved, click the link below for a free strategy call with our mortgage team at LendCity to discuss your specific situation.
The Challenges of Balancing a Fulltime Job and Real Estate Investment
Juggling a full-time job and real estate investment is no walk in the park. Our recent guest on the podcast, Sarah Larbi, shared her firsthand experiences of this balancing act with Dave Debeau.
A significant challenge that Sarah Larbi notes is the lack of time. Time management is critical when trying to fit in property viewings, constantly educate yourself on real estate trends, and strategize, all while holding down a regular 9 to 5 job.
"You can't buy more time. It's essential to utilize your time wisely, set clear goals, and focus on your priorities." - Sarah Larbi
Another hurdle is dealing with the stress that comes from handling both responsibilities. Real estate investment requires critical decisions that could have long-term financial consequences.
In addition, there is the constant pressure to perform in both realms. The challenge lies in meeting performance standards at work and ensuring the investments bring in a good return.
Critical Challenges of Juggling Both Fulltime Job and Real Estate
- Time Management
- Handling Pressure and Stress
- Performance Expectation
However daunting these challenges may sound, Sarah Larbi assures it's possible to balance both, but it can also be gratifying - a testament to her success story in real estate investment.
Sarah Larbi's Story: How She Started Investing in Real Estate
When Sarah Larbi first set foot on the real estate investment path, she was holding down a full-time job. In this episode of Dave Debeau's podcast, she shares how she ventured into and succeeded in the world of real estate while keeping her day job.
Sarah's adventure began with an inherent fascination for property investment. She was eager to unlock its potential; however, stepping into the unknown is always fraught with apprehension. Her initial apprehensions were similar to what most people feel - the fear of making a wrong investment decision, the lack of ample free time due to her busy professional schedule, and the familiar dread of dealing with tenants.
The breakthrough came for Sarah when she decided to tackle her inhibitions head-on. Instead of considering her full-time job a barrier, she turned it into a stepping stone. Sarah utilized her steady income as a safety net, which released the pressure of immediate returns and allowed her to choose her investments strategically.
With a balanced approach towards her day job and passion for property, Sarah invested in a duplex in Hamilton. Despite her ups and downs, her firm determination and careful message provided the resilience to move ahead.
Sarah's successful first step gave her the confidence to grow her portfolio further. Over time, she gradually built up her portfolio, consistently adding more properties. Today, she has an impressive portfolio of properties, and her success shows that real estate investment is achievable, even while working a full-time job.
In Sarah's words, "If you have a desire, a plan and a willingness to work hard, balancing a full-time job and real estate investment is possible, but it can also be gratifying."
The Benefits of Investing in Real Estate with a Fulltime Job
Investing in real estate while maintaining a full-time job might seem daunting to many. However, guest Sarah Larbi shares how this choice offers substantial benefits. Not only can this endeavour increase income, but it can also serve as a safety net, helping to achieve financial independence and security.
Stable Income Through Real Estate
As stated by Sarah, one prominent advantage of investing in real estate while working a full-time job is the potential to generate additional income. This income can come from rental properties, which offer a consistent stream of cash inflow and can amplify one's earnings significantly.
An Essentially Structured Backup Plan
Real estate investment adduces a reliable backup plan, serving as a safety net if unexpected events arise. Regardless of the circumstances, property investments can provide financial assistance when needed. Sarah emphasizes that a steadily paying job and a real estate portfolio offer double financial security.
Funded Retirement Plan
Employment may provide a regular paycheck, but real estate investments can serve as a pension plan, primarily upon retirement. For example, Investing in rental properties can warrant a steady income even after you have stopped working. Sarah believes that this stratagem sustains financial independence post-retirement.
Capital Appreciation
Unlike other investments where value might be unstable, real estate appreciates over time. When the property market increases, your net worth increases without additional effort. Sarah calls it a 'passive method' to boost personal wealth.
Robust Financial Freedom
While a full-time job assures a regular income, investing in real estate provides a path to financial freedom. Sarah argues that this freedom allows you to pursue your passion or dreams without worrying about money. A steady job and real estate investments can uniquely position you in a place of self-sustainability and economic liberty.
In conclusion, coupling a full-time job with investing in real estate can bring numerous benefits. Sarah Larbi's experiences and perspectives offer valuable insight into this investment journey.
Sarah Larbi's Tips for Successfully Investing in Real Estate
In the episode, Sarah Larbi imparted some invaluable wisdom for those looking to invest in real estate. With her rich experience, she was able to provide a practical perspective on the journey.
Primarily, Sarah emphasized the importance of education. She expressed that one must truly understand the real estate market, learn the jargon, and understand the industry's nature. Equipping oneself with the proper knowledge and skills is as essential as having the financial capacity to invest.
Unique Investment Strategies
Sarah shared about her unique investment strategies. For her, it's all about being calculated and strategic in one's approach. Identifying high-growth areas, finding properties under market value, and focusing on cash flow have all been integral to her success. She also mentioned the advantage of investing in single-family homes due to its attractiveness to quality tenants who tend to stay longer.
Building the Right Team
Furthermore, she stressed the importance of building the right team. This includes finding a reliable realtor who understands investors, a lawyer specializing in real estate transactions, and a property manager who can efficiently handle the property operations. Solid relationships with these professionals can significantly facilitate an investor's success.
Importance of Risk Management
Lastly, Sarah highlighted the importance of risk management. As an investor, one should always be prepared for potential hiccups—this includes setting aside a contingency fund for unexpected costs and being aware of the legalities and regulations surrounding property ownership and tenancy.
In sum, Sarah Larbi's advice for aspiring real estate investors revolves around thorough education, strategic planning, building a competent team, and effective risk management.
Overcoming Obstacles and Managing Risks in Real Estate Investment
One of the central themes of the conversation between Dave Debeau and Sarah Larbi was overcoming challenges and managing risks in real estate investment. You will learn from Sarah that real estate investment isn't always a smooth ride.
The risks in real estate investment are numerous, but Sarah emphasized two significant risks: market risk and the risk of property damage or unexpected maintenance costs. She said, "The biggest challenge is understanding the market and your property."
Market risk represents the fluctuations in the real property sector, often influenced by economic factors affecting the property's value. Conversely, if not considered, property damage or unexpected maintenance costs are internal risks that can quickly destroy your profits.
According to Sarah, managing risks in real estate investment involves an in-depth understanding of the market and your property. Learn to analyze market patterns and predict possible fluctuations. This skill will give you a head start in making adjustments before an adverse market turns the tides against you.
As for property damage or unexpected maintenance costs, Sarah emphasized the importance of investing in the regular upkeep of properties. She said, "Scheduled maintenance is the key to avoiding unexpected costs." She encourages investors to set aside a maintenance fund to cover any repairs or refurbishments necessary to keep the property in perfect condition.
Sarah declared that Overcoming obstacles requires resilience, sound judgement, and flexibility. She also emphasized the importance of a positive mindset: "Your mindset plays a big role in your success as an investor."
She recommends always being ahead, anticipating potential problems, and devising solutions before they even occur. This proactive approach will save you from most obstacles that come your way. Lastly, she stressed the importance of learning from your mistakes. "Every mistake is an opportunity to learn something new."
The Future of Real Estate Investment: Trends and Opportunities
The ever-evolving world of real estate investment presents many opportunities, and Sarah Larbi has insight into these trends. Let's dive into some topics she shared with Dave Debeau on the podcast.
According to Sarah, real estate has been embracing technology like never before. These advancements are often designed to streamline various processes involved in the industry, making property search, acquisition, and management more efficient.
One crucial strategy that Sarah emphasized was the importance of thoroughly investigating a property before investing in it. Be it the neighbourhood's environment or the property's condition, a comprehensive review can save you a lot of future trouble.
With the rise of remote working trends due to the pandemic, Sarah shared that there has also been a noticeable shift in real estate investment. Many people are looking to invest in suburban or rural properties where they can enjoy a tranquil work-from-home environment.
Sarah also revealed that environmental sustainability is becoming increasingly essential in real estate investment. Many investors are keen on properties demonstrating energy efficiency and a lower carbon footprint.
To wrap it up, Sarah Larbi, in her conversation with Dave Debeau, shared numerous insights into the future of real estate investment. She highlighted how these trends offer both exciting opportunities and new challenges. Aspiring investors can utilize these insights to navigate their way in real estate while balancing their full-time jobs.
Balancing Work, Real Estate, and Personal Life: Sarah Larbi's Perspective
Sarah Larbi firmly believes that striking a balance between work, real estate investment, and personal life is crucial for long-term success. How so, you may ask? Let's get into the details.
According to Sarah, maintaining a structured routine is critical. She begins daily with a plan, listing crucial tasks related to her job, real estate investments and personal life. This way, she ensures that nothing is left out and each area of her life gets the attention it deserves.
Efficient time management is another crucial strategy Sarah employs. By outlining clear priorities and dedicating specific time slots for each task, she has managed her time effectively, optimizing productivity across her work, investments, and personal life.
Sarah strongly believes in the principle of delegation. To her, part of success in real estate while keeping a full-time job is knowing when to delegate tasks to others. She employs several methods to get help, including hiring professionals, using property management services, and outsourcing tasks when needed. This allows her to focus on high-yield activities and offers more free time to engage in activities she enjoys.
Despite the pressures of managing her job and real estate investments, Sarah understands the importance of personal time. She believes taking time off to relax, pursue hobbies, and spend time with loved ones is essential for overall well-being. For Sarah, a balanced life is not just about work and wealth creation but also about enjoying those precious moments with family and friends and pursuing personal passions.
In summary, Sarah Larbi's perspective on balancing work, real estate, and personal life revolves around structure, prioritization, delegation, and a genuine reverence for private life. Her strategy could provide valuable insights for anyone struggling to juggle their full-time job with real estate investment or seeking a more balanced and fulfilling lifestyle.
If you are ready to start investing today and want more information about how your mortgage may be secured – or are looking to apply for a mortgage today – click the link below for a free strategy call with our mortgage team at LendCity today.