How to Finance & Build 10K/month Cash Flow from Rentals!

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How to Finance & Build 10K/month Cash Flow from Rentals!

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5 Musts before you quit your day job for fulltime real estate

Real estate can provide passive income, even allow you to quit your day job and become financially free. For many investors, this is the goal. To be their own boss and to be able to work when they want and where they want. Here are 5 must before you give up your day job.

  1. Create 30% more monthly cash flow then you need – Surprises happen. Vacancy, maintenance and other expenses arise and you are not guaranteed optimal cash flow on every property every month. Make sure you have 30% more than what you need as a buffer for surprises.
  2. 1-2 years of reserves – Depending on how conservative you are, make sure you have 1-2 years of expenses in reserves so you can live comfortably and don’t have to stress over your cash flow and finances.
  3. Asset protection – Hold your properties in entities like a corporation, trust or LLC. This will protect your other properties, businesses and personal assets in the unfortunate case you get sued and lose.
  4. Strategy to improve your net worth and cash flow – What are the next steps and initiatives to take your business, cash flow and net worth to the next level. Continue to learn, educate yourself and master new strategies or asset classes. Continuous improvement.
  5. What to do with your time – I personally get stir crazy after 2 days of doing nothing. Exercise, learn and pursue other goals and interests. Get more involved with your family, community, volunteer, give back and fill your time with when you are not working. A routine of positive things can lead to achieving many goals and tremendous happiness.
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This entry was posted in Beginner's Advice, Expert Advice, Ryan's Blog, Tips & Standards, Uncategorized. Bookmark the permalink.

8 Responses to 5 Musts before you quit your day job for fulltime real estate

  1. Ken Zajac, AIA says:

    Ryan, some good basic tips for RE investors.

  2. Al says:

    Right on it! The thrill of getting that first big check can deceive one so caution must prevail and your tips are worthy. Now days everyone is holding onto everything plus the extra they got.

  3. byron a says:

    Good stuff to think about. It seems like one to two years reserves is a bit strong, and may result in less urgency to work at the business. I do think three to six months is suffice. I would also add:
    1) Have an exit strategy
    2) Be prepared to work 60 to 80 hours per week.
    3) Consider career counseling. Some people are just not “created” to do full-time real estate. We each have different abilities that sciencitific research states that we are born with. Learn to blend those in to real estate, not fight them.

  4. Ryan Moeller says:

    Thanks Al, a lot of people jump out of a safe and secure job upon getting the first check and find themself like a fish out of water really quick.

  5. Ryan Moeller says:

    Excellent comment, those are great additions. Becoming an entrepreneur is not easy, many have to be hands on all the time and control every situation. Others embrace the idea of delegating and seperating themselves from the daily processes. It is always a great idea to have a coach, mentor and peers that can help you stay on track and grow.

  6. Antwan says:

    Great advice as usual Ryan, thank you. Keep up the good work.

  7. thats great, but how do you improve your cashflow by quitting your job!

  8. Beney says:

    Living Off Dividends: Every hour you spend on your job everyday is one less hour you have to build your real estate business and increase your cash flow. Don’t quit until you can, but then let it go and move on!

    …and yes, it *IS* a business! Treat it any other way, and watch your success slip away from you.

    That means: don’t just make a job for yourself, build a business that can actually run without you! After all, you want to take vacations, right? …have time to be with family? …we all get sick at SOME point, right?

    If you feel you HAVE to do everything yourself, then take the man’s advice when he suggests career counseling. Learn to delegate, hire people you can trust. Multiply yourself through delegting rather than multiplying your efforts and running yourself ragged.

    It’s not the money or the effort that scares some newbies away, it’s the idea of actually building something that can live on its own. It will be your retirement income as well as the legacy you leave to your loved ones!

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