…ob? curious about the different answers.
I thnk I had abour $125.00 in my pocket.
However I had considerable more in investmwents.
Oh, including assets then.
Too general of a question. I know you’re just soliciting input from people, but it really depends on your goals. I could’ve quit long ago and just bought a single-wide, but that’s not the life I want for my family.
It’s all going to depend on what assets you have, what money you have coming in, your expenses, etc. I’m still under contract for my job so I couldn’t quit even if I wanted to.
For me, the answer would be once I had enough money coming in over and above my desired quality of life with a substantial enough cushion for unexpected bad things happening.
When I started back in 1991, I was broke. I made a decision to go into investing with no other option. The word decide comes from Latin and means to cut off all other possibilities. If you try something, the word try allows you to potentially fail…cut out the try and commit to your goals. There are more resources available than one needs to be successful…it is the decision to move forward plus the action that will reap you the rewards.
Take the step with no options to fail and you will eventually achieve your goals in this game of investing.
Hope this helps.
Rob
Depends if you have another job or source of income lined up. Even if you had $100,000 cash-in-pocket, for some that wouldn’t last the year. It depends on your monthly budget, where you money to live will come from and what you plan to do with all that free time.
Inspirational!
The thing that retires you is not a pile of money. You often hear people say that they have $100,000 or $500,000 and even $1Million and they don’t have enough to retire. Indeed the pile of money is never big enough to retire. What retires you is cashflow or passive income. If your monthly expenses is $5,000 a month (that is rent utilities all the way to dry cleaning) then as soon as your passive income reaches $5,000 a month then you can walk away if you would like to.
In our context we are getting about $500/month cashflow per single family house. That means that for our example once you have 11 rent houses you are at a decision point.
Hi,
When I first started into real estate I was working full time and going to college and worked for the first 12 years while getting as much education during those years as possible. When I started being self (Corporate) employed I was running a construction company while investing in real estate.
I relied on my business income to accelerate my real estate investing, in fact I have been operating and profiting from businesses since 1991, and because of that businesses income I have been able to do 10 times the real estate investments I would have done.
Now something I learned early was figure my personal budget and ad about 50% as the cost of my real estate investing expenses were running about half of my initial yearly personal expense budget.
So if my household budget was $50k I knew I needed $75k in order to cover gasoline, insurance, pro-rata auto expenses, cell phone, phone / fax line, copy and printing expenses, overhead, etc. That $25k was about $480 dollars a week to cover my costs of being in the real estate business.
Then of course my profits from real estate were re-invested back into real estate that first year, and as was said before when you create passive income you want to create a minimum to operate from, IE $75k is $1,442 per week or $6,250 per month.
So one good wholesale assignment per month for $6,250 plus keeps you going and any profit is saved to go into rental properties!
Today at minimum I would think you want to have at least $250 per week to run your business from!
GR
It depends as well on your lifestyle. That’s the first thing that I did before I quit my job.
I was very conservative back when I quit my job - many years ago - to do investing full time. I had recently purchased my first new house, and the payment seemed huge, AND I had recently gotten married & had a new baby…and I was going to quit my job? Yep! And I did it in a manner so I could not fail.
I had 3 years of my annual, after tax salary available to me via 1/3 cash, 1/3 stocks AND in 1/3 in credit. So, if I got low on cash, I could sell some stocks, and worst case I could tap my line of credit.
Also, when I quit, I was earning as much or more than my job income in passive income…and I had a system in place so I could effectively double my job income within months after quitting my job.
To say the least - I was very successful! And I didn’t even need to tap my cash, stocks or credit to live off of. =)
So we’re talking about “F@@K YOU MONEY!!” :shocked
In Costa Rica or San Antonio…$5000/month
In New England…$10,000
First, you need to check your lifestyle. Next, you have to check your financial status. Do not think of quiting your job yet if you have debts, you will surely not like the stress it would give you.
The answer really depends on whether you are still willing to find a job after quitting the current, or you are referring to retirement. If you are referring to retirement, a huge amount of money, savings and investment is needed to sustain your lifestyle, to pay your bills and live a comfortable life.
I found it better not to have any resources…just take a step of faith…if you take the 1000s of deals which are listed in this forum which have worked for other investors, pick one or two and do the same…you will likely get the same results.
Over the years as I’ve training new investors, the one interesting thing is too many thought they did NOT have to work a schedule like they did in their jobs, as an investor…the reason I’ve done nearly 400 transactions is that I likely made more calls and more home inspections than my competition…you must work to get paid.
IF you wait until everything is just right for you to get started, you will NEVER get started. I was broke…but a bit of education and lots of determination along with massive efforts in my work schedule led me to the success that most newbies dream of…don’t wait…break the chains that bind you in your job…why fight rush hour twice a day and why profit another man for the only resource you cannot replace…your time!!!
Work for yourself…will you let yourself down? IF the answer is yes, then you do not have the character to be an investor…if the answer is no…then don’t let yourself down…go to work for yourself…that is what I did…without savings or income…and the first deal I put together netted me $35,000.00…some folks work a whole year for that! That was 1991 and 400 deals ago…the rest is great history!!
Hope this helps.
Rob