Should You Become a Full-Time Real Estate Investor?

You may have heard that it’s possible to make a living through real estate investing, and you’re wondering if it’s the right path for you. Real estate can be a great way to build wealth, but it’s not always easy or quick. It takes hard work, dedication, and often a lot of money to get started.

Many property investors start part-time with one or two rental properties or try their hands at house flipping. If you enjoy the additional passive income, should you quit your day job and pursue real estate investments full-time? Keep reading to learn more about how to create wealth investing in real estate!

Choosing Your Real Estate Investment Path

There are three main ways to invest in real estate: wholesaling, flipping houses, and buy-and-hold properties. All of these strategies can be profitable, but they each require different amounts of time, effort, and financial resources.

Many successful investors who leave their day jobs to invest in real estate full-time specialize in one strategy. However, others who build significant portfolios and wealth diversify with multiple real estate investing strategies.

The good news is that if you aim to make investment properties your primary source of income, building a real estate investment team can help you get there—no matter which strategy you choose.

Real Estate Investing Through Wholesaling

Wholesaling is typically the quickest and easiest way to make money in real estate, but it also has the lowest potential return. On the other hand, house flippers can quickly make a lot of money, but the work is often more intensive.

What Is Wholesaling?

Wholesaling involves finding deeply discounted properties, putting them under contract, and then selling that contract to another investor for a profit. It’s a great way to learn the business and how to find deals with minimal upfront investment.

Getting Started in Wholesaling

If you’re debating whether or not to become a full-time real estate investor, wholesaling may be a good place to start. You don’t need much money to begin, and you can do it part-time while keeping your day job.

However, it’s important to remember that the potential return on investment (ROI) is typically lower when wholesaling compared to flipping houses or renting properties. If you plan to pursue this strategy, make sure you understand the market, know how to find sellers quickly, and use a resource like Privy to help you locate more properties faster!

Flipping Houses for Profit

House flipping can be a very lucrative business for real estate investors, but it also carries more risk and demands a greater time commitment than wholesaling.

What Is House Flipping?

Flipping houses involves buying undervalued properties, renovating them, and reselling them for a profit. This is an excellent strategy if you have construction or remodeling experience, but it’s not a requirement.

How to Get Started

There are plenty of resources available to teach you the basics of flipping. Additionally, by building a strong property investment team—including a contractor, handyman, and real estate agent—you can reduce your workload and maximize your returns.

To succeed in house flipping, you’ll need to:

• Find undervalued properties in desirable locations.
• Estimate renovation costs accurately.
• Complete repairs quickly to minimize holding costs.
• Sell the property for a profit.

While flipping can be very rewarding, it’s essential to have a solid understanding of market conditions, renovation costs, and sales trends to avoid financial pitfalls.

The Buy-and-Hold Rental Property Strategy

If you’re not interested in the fast-paced nature of wholesaling or the intensive work involved in flipping houses, buy-and-hold rental properties may be a better fit.

What Is Buy-and-Hold Investing?

This strategy involves purchasing residential or commercial properties and renting them out to tenants for long-term income. Over time, rental properties appreciate in value, increasing your wealth while generating passive income.

Key Benefits of Rental Properties

• Steady Cash Flow: Monthly rental income can provide financial stability.
• Appreciation: Property values generally increase over time.
• Tax Benefits: Investors can deduct mortgage interest, depreciation, and maintenance costs.

How to Succeed in Rental Property Investing

To make buy-and-hold investing a full-time career, consider the following:

• Start with a single rental property before expanding your portfolio.
• Work with a property management company to handle daily operations.
• Focus on locations with high rental demand and property appreciation.
• Ensure proper tenant screening to reduce vacancies and maintenance issues.

Don’t Quit Your Day Job (Yet!)

While many successful investors have made real estate their full-time careers, most didn’t start that way. It’s important to build a strong foundation before quitting your primary job.

Steps to Transition Into Full-Time Investing

• Pick a Strategy and Stick With It: Specialize in one approach before diversifying.
• Build a Reliable Team: Work with real estate agents, lenders, and contractors.
• Develop a Steady Income Stream: Ensure consistent cash flow from investments before making the leap.
• Understand Market Cycles: Learn how economic shifts impact real estate profitability.
• Use Investment Tools: Platforms like Privy can help you analyze data, find profitable deals, and streamline your investment process.

Building Long-Term Success as a Full-Time Real Estate Investor

How Privy Can Help

Privy provides real estate investors with access to MLS data, market trends, and property analysis tools, making it easier to find profitable deals, make informed decisions, and grow a successful portfolio. Whether you’re a wholesaler, flipper, or buy-and-hold investor, Privy can streamline your investment process.