Episode 8
8 - Should You Quit Your Profession To Move Into Real Estate Investing Fulltime?
Episode Summary
In this episode, Quentin talks with a member who is looking to quit her profession, and move into real estate investing full time. We explore flipping and discuss other strategies as she wants to get started.
The member shares that she has been working as a secondary teacher for the last 12 years, but she has always been business-minded. She learned about the foundations of real estate investing from her father. Now, she wants to start a new career in real estate investing and even interior design at the same time. Now, she wants to learn about the best options that would allow her to quit her teaching career and move into real estate full-time.
She shares that they have an increasing line of credit so that they can use it towards investing and purchasing an investment property. She also bought a small condo in Calgary, which was zero money down. Now, they have around 250k available in the home equity line of credit as well as some savings. Quentin adds that strategy is really important, but it's also important to figure out timelines.
Quentin shares that anything is possible, and it's always dependent on your commitment to be able to do anything. There are lots of great investing strategies, some require you to be more active and other ones are more passive. He adds that the properties should be cash flow positive and gain appreciation. It takes time to build up properties and especially if you are doing it the first time, it'll probably take you a little bit longer.
As for flipping properties, the timeline is shorter, but it requires more work. It requires you to either find properties off market or work with wholesalers. Rent to own is also a strategy that helps you to create income. While the member is interested in flipping, Quentin adds that every strategy has its pros and cons, and he recommends joining the bi-monthly Q&A calls sessions to learn more about which strategy suits her the best. She shares that she plans on acquiring a property to flip, but if it doesn’t work, she would use BRRR as an exit strategy.
Quentin adds that it is great to have multiple exit strategies. He says that in order to do to be successful at a flip, you need to actually buy the property with some equity in it or solve a problem, and not off the MLS. He suggests going through the Negotiating With Private Sellers and Off Market Deals courses. He adds that in real estate, you need to know your numbers more than everybody else. He also suggests getting on some of the buyers lists by people who post We Buy Houses signs, as they're looking to most likely assign some of those deals, and those are the opportunities for potential flips.
Quentin also suggests finding somebody who's already done flips, and partnering up with them. That way, you can see the ins and outs of how the process works, what they do, even if you're a money partner. He adds that “a lot of people think that real estate is about bricks and mortar, it really isn't. It's really about the relationships that you build with people.” In conclusion, he recommends getting on wholesale lists, so that she doesn’t have to pay commission to the realtor, and partner up with somebody who has successfully done flip projects.
Topics Discussed
• Introduction [00:00]
• Her Background and Experience in Real Estate Investing [01:04]
• Does She Have Any Equity in Her Primary Residence? [03:05]
• How Much Equity Does She Have in Her Primary Residence? [03:50]
• When Does She Want to Leave Her Teaching Job [04:31]
• Which Strategy Does She Want to Focus On? [07:50]
Resources Mentioned
• Negotiating With Private Sellers
Important Links
