Seldom Asked Question #1: How long will it take?
The #1 Seldom Asked Questions from our SAQ series is “How long will it take”? This may be the most important question of all, since as we all know, time is money. It is true that in any industry, there are a small handful of people who are able to hit a series of home runs right from the start, nevertheless, for the other 99%, it takes a couple of years to get the proper systems in place in order to just hit the ball consistently.
Your day job is a very crucial source of income in the beginning to keep your head above water while you work on getting your systems into place. With the exception of those fortunate enough to have a year to 2 years of living expenses in their savings account, quitting your day job is not recommended. Another reason to hang onto that day job is to be able to patiently await the first few deals which typically take between 6 months and a year for the first few to roll in. After your systems are in place, this ratio changes drastically, nonetheless, having the income that allows you to be extremely patient the first year is critical.
This is a get rich business if done right, however, it is not a get rich quick business. Every business has a few “lottery ticket”, anomalies where right off the bat things just fall into place but this is so rare that it isn’t even worth chasing. Chasing proven systems and putting them into place will be the key to creating a long term, successful real estate business which will allow you to quit your day job. This is the carrot on a stick you should be focused on perusing.
Real Estate investing is a marathon so be prepared. If you need training, the time to get it is before you start running. Also, marketing is the backbone of this business so having your marketing system in place and a budget to support it is paramount. If you are starting out sanz budget, you can begin by calling FSBO’s and work on becoming comfortable talking to sellers on the phone. Hitting the neighborhoods and talking to potential motivated sellers is also an inexpensive way to get started on a limited budget. This is a very economical way to get started but remember, what you give up on budget, you give it back in time, which will require even more patience since this will be a longer marathon than having a budgeted marketing system in place.
The book, 3 feet from gold is a great read and beautifully illustrates the power of persistence and not giving up! I recommend figuring out what you need before you get started and begin by asking yourself if you have the wherewithal to go the first year without a homerun or even a base hit. If you do, then I have little doubt you will be successful in RE investing.
Robert Orfino, 2017