I’ve read Millionaire Investor, which is not that great of a book, but there were a couple investors who intrigued me. One of them was a successful banker and decided to quit his job to become a full time real estate investor. He drew up a business plan and went to a bank to get some loans to buy rental properties. He also does a few flips, but regardless, he’s a very rich man now.
Does this really happen or is this rare? If I draw up a business plan, what are the real chances that a bank would give me a loan to become a full time investor?
Keep your day job. Getting a loan to become a full time investor is impossible. You can get loans to buy property but not for personal living expenses while you become an investor. Work hard at both until you have to quit your job to take care of your rental property and manage your rehabs. It will be hard to life off the cash flow of just a few rental units unless you live really cheap. There are not a whole lot of cash flow deals in Austin that I have seen. Duplexes renting for 600 per side selling at $150,000 is no bargain and 4 plexes at $250,000 and $2000 income is not for me. California investors are invading again. These prices are cheap to some but I prefer low income property and east Austin is over priced to me as well now. I have moved my buy and hold business to Bell County. With about 20 deals there I can quit my day job and work full time taking care of the property. But I will want more. I am just kind of rambling now so I will stop
These are my thoughts, but I hate to tell these new investors that they need to just get a duplex and live in one side without expecting much cash flow.
CA investors are definitely pushing out the small guy. As long as they know they won’t get real cashflow, people can purchase properties here all they want. I happen to have purchased a few good deals and my properties are doing ok, but they aren’t great.