book

Apache is functioning normally

One of the fundamental premises of the Get Rich Slowly philosophy is that by making sacrifices and smart moves now, you can create a better life in the future. It’s a philosophy of deferred gratification.

But what if you don’t want to wait to enjoy life’s rewards? What if you want to take advantage of opportunities while you’re still young? Is there a way to do this while still maintaining a smart approach to money?

Timothy Ferriss says there is.

In The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich [my review], Ferriss describes creative approaches to career and retirement. He advocates taking radical action to increase your productivity, which in turn gives you more time to do the things you really want. It almost sounds crazy — and it may not be for everyone — but the book’s ideas are helping me to mold my lifestyle.

Ferriss recently agreed to field questions from Get Rich Slowly readers. This interview will appear in two parts. Today he shares thoughts on productivity and lifestyle design. In the second part — to be published at an undetermined point in the future — he’ll discuss new notions of retirement.

J.D.
Kathleen writes: “I loved the stop-dreaming-and-do-it attitude of the book. But Ferriss comes from a starting point of already having a successful company and his goal was for it to not consume him. This doesn’t speak much to the majority of us who are trying to reach a point where we can keep afloat without selling our souls to the 9-to-5 gods. I would love to hear his thoughts on how to achieve freedom without that starting point.”

Tim
It’s true that I had a business, but it’s important to note that The 4-Hour Workweek is actually an examination of case studies, including employees and even single mothers.

“Lifestyle Design” as an alternative to retirement-based career planning is much like investing: there are dozens of options, each customized for your individual situation and risk tolerance. The first objective isn’t going to be tangoing in Buenos Aires or scuba diving in Japan — it’s eliminating unpaid overtime on the weekends and evenings. Small steps, no matter the situation, sum up to enormous changes and uncommon lifestyles. Step one is defining your ideal lifestyle based on the associated costs.

J.D.
Some people have complained that a four-hour workweek is impossible based on their situation or their job. “How do you work a four-hour workweek in retail?” asks one of my readers. “We have two small children,” writes another. “How can we take baby steps to a freewheeling lifestyle, and how free can we realistically be? Any tips, insights or examples of families taking Tim’s advice?”

Tim
The vast majority of readers who write in with stories like “I just took the first four-week vacation in ten years” have families. Jen Errico from the book took a five-month around-the-world trip with her two children in tow, and there are many similar examples. In fact, there are entire blogs created by mothers and fathers who are using the 4HWW principles of lifestyle design.

In the retail example, it’s true that some jobs and positions will not allow for time abundance, and for such situations, there is a process for killing your job and upgrading your work-life ratio instead of killing your career. Lifestyle design is a buffet of options. I don’t expect anyone to use time the way I do — I’m an extremist. I expect people to create time and use it as they see fit, whether sitting in a hammock with their kids or racing Lamborghinis on the autobahn. I’ve seen both.

J.D.
Many critics of The 4-Hour Workweek have focused on the Automation section. Some don’t like the notion of virtual assistants, for example, and they’re not convinced that everyone can automate their income. Are these specific details important? Can your system function without them? What are other approaches could people consider?

Tim
Having a virtual assistant or exploring personal outsourcing (“offchoring”), as amazing as it is, is not required at all. Like I said, the book is a buffet of options. I don’t expect anyone to use all of it. Pick and choose to optimize your situation. That said, let me make a couple important points on personal outsourcing.

$10 USD buys groceries for a week for someone in Bangalore. I pay my assistants there $5-15 per hour. Do two hours of your friends’ (or your) wages pay for their (your) groceries for a week? Not likely — so who’s really getting paid more? This is an example of the concept of “purchasing power parity”, often called the “Big Mac index”. I’d encourage people to take a look at the research of real economists instead of the propaganda of politicians.

I’m helping to build a middle-class in the countries that need it most, while simultaneously creating new consumers of US and other countries’ goods, for example. There is absolutely no slave labor or exploitation in how I recommend using virtual assistants — none whatsoever. It strengthens the global economy.

J.D.
Bob writes: “I would like to know as best he can give, what Tim’s average NON-mini-retirement day entails.”

Tim
Good question.

My days almost never look the same. I ask my assistants to avoid phone calls on Mondays and Fridays, in case I want to take a long weekend on either end, and I almost always allocate Mondays for general preparation and prioritizing for the week, then any administrative tasks that I need to handle (paperwork for accountants, lawyers, etc.).

I put very few things in my calendar, as I do not believe most people can do more than four hours of productive work per day at maximum, and I loathe multi-tasking. For example, my day tomorrow looks like this, with items in my calendar preceded by an asterisk (*):

  • 10am — get up and eat high-protein breakfast of 300-400 calories (I’m typing this at 2:22am, as I do my best writing from 1-4am)
  • 10:30-12* — radio interviews and idea generation for writing (note taking)
  • 12 noon — workout involving mostly posterior chain (back, neck extension, hamstrings, etc.) and abdominals
  • 12:30 — lunch in a restaurant of organic beef, vegetables, pinto beans, and guacamole (I have this almost every day. Here is my diet.)
  • 1-5pm* — write piece for very large economics publication (I’m not writing this whole time, but I block out this period)
  • 5pm* — review my designer’s latest updates on planned blog redesign
  • 5:30pm — first dinner
  • 6:30-8:30pm — Brazilian jiu-jitsu training
  • 9pm — second dinner
  • 10pm — ice bath and shower
  • 11-2am — chill out and do whatever, probably reading for enjoyment or drinking wine with friends

Before you ask “but what happened to the 4-hour workweek?!” realize that the goal was never to be idle. I hate laziness and make this clear in the book. The goal is to spend as much time possible doing what we want — by maximizing output in minimal time. I don’t have to do anything in this schedule. I choose to do them because I like them. None of them are financially-driven. If the chance to do something fun comes up last-minute, I can cancel all of them. This is true time-freedom.

J.D.
One of my favorite tips in your book — I have it heavily underscored in red ink — is “emphasize your strengths, not your weaknesses”. Explain this concept. Why is it so important?

Tim
It’s very simple. If you try and fix all of your weaknesses, you will be — at best — mediocre at most things you’re inherently poor at. This is inborn talent or weakness. Progress is incremental when you attempt to fix all the chinks in the armor.

Focus on leveraging and amplifying your strengths, which allows you to multiply your results. Fix any fatal weaknesses to extent that they prevent you from reaching your goals, but perfection isn’t the path to your objectives; finding ways to cater to your strengths is. This is also, for example, how you end up documenting and showing improved results to your superiors if you need to negotiate things like remote work, flex-time, paid time off, etc.

J.D.
I also like your notion of a low-information diet. How does one cultivate selective ignorance? What is the value in it?

Tim
Information consumes attention. In a digital world, you then have the potential for infinite minutiae and interruption. Consuming and organizing the excess deluge of data is not a scalable or sustainable model, so we look instead at the only viable option: strategic elimination.

How do you check e-mail once per day or once per week? How do you reverse the self-defeating impulse to “stay informed” and instead catch up when action requires it vs. keeping up? Selective ignorance is one of the few common traits among the top performers I’ve interviewed. Learn to single-task and accept that — ironically — limiting your options is often the best method for improving your results and outcomes.

Timothy Ferriss, nominated as one of Fast Company’s “Most Innovative Business People of 2007,” is author of the #1 New York Times, Wall Street Journal, and BusinessWeek bestseller, The 4-Hour Workweek. The second part of this interview will appear at Get Rich Slowly sometime in the future.

Source: getrichslowly.org

Apache is functioning normally

Do you have a job that’s just like everyone else’s? Are you looking for a nine-to-five…but wish you weren’t? Do you wish there was another option, one that would lead to an exciting, unique, and fulfilling line of work?

I recently interviewed more than 100 people who currently hold their dream jobs as research for my new book. These individuals — who are travel journalists, event planners, fashion designers, forensic scientists, interior decorators, internet business owners and more — have one thing in common: persistence.

As unattainable as a dream job might sound, with the right amount of forethought and preparation, you can make the move as well. Here are six tips to get you started:

  1. Learn about yourself. Take time to do a self-assessment of your values, how you like to work, and what you’d be compelled to do even if you never got paid. Research careers and industries that map to your skills and interests. Hit the Internet, set up informational interviews, take relevant coursework, and arrange to go onsite at a company in your chosen field.
  2. Don’t be deterred by a lack of experience. In developing a resume and other promotional materials for the field you want to pursue, think about how your current skills and talents apply to the responsibilities you’ll hold in the new job. For example, knowledge of project management, client relations, information technology, and sales will take you far in most types of careers.
  3. Ease into a new career one foot at a time. Perhaps this means earning a paycheck at your current job while doing a part-time internship in your new field or taking an adult education class or workshop on the weekend. The only way to find out if you’re passionate about something is to try it — ideally with as little risk as you can manage.
  4. Remember that any progress is good progress. Even confident people stay in unsatisfying jobs because they feel safe, and because they’re afraid of making a bad decision. But in the quest to uncover a source of meaningful work, though, your worst enemy is inertia. Make an effort to do one thing, like e-mailing a networking contact or attending an event — that moves you a bit closer to your big picture goal.
  5. Start early. Twenty and thirty-somethings have more flexibility when it comes to test-driving different careers. The process of self-discovery is much easier when you’re unencumbered by family responsibilities and substantial financial burdens, and when you haven’t yet reached a level in a career where it’s tougher to turn back. That said, it’s never too late to pursue your passion. More and more baby boomers are leaving the world of traditional employment for alternative career paths that will fulfill them well into retirement age.
  6. Have realistic expectations. Even if you’re lucky enough to hold your dream job, there’s no such thing as the perfect work situation. Every job has its ups and downs, and aspects we love and aspects we don’t love. And dream job doesn’t mean “cushy” job. As your mom always told you, anything worth having in this world requires some effort. There will be some days you feel like shutting the alarm off and going back to sleep, but many more where you feel more energized by the prospect of work than you ever thought possible!

J.D.’s note: My wife taught high school chemistry and physics for many years. Though she loved teaching, she eventually left to pursue her dream job. Alexandra’s six tips closely match how Kris approached her career change.

Source: getrichslowly.org

Apache is functioning normally

Last Updated on March 29, 2023 by Mark Ferguson

I am a big believer in making big goals and one of my goals is to purchase 100 rental properties by 2023. I have been a real estate agent and investor for more than 15 years, and I love the income my rental properties provide. Buying 100 rental properties will allow me to retire with more than enough money to reach my current dreams and goals. I do not want to buy 100 properties quickly without concern for the returns or risk. It takes a lot of money, time, and effort to buy 100 properties in the right way. I only buy houses that are well below market value and have great cash flow.

I first wrote this article in 2013, but have tried to update it frequently. I now have 20 rentals that make me over $10,000 a month after expenses. I am way behind on my goal, but many things happened that I could not have predicted like our housing market going crazy. I have bought commercial properties in the last few years instead of residential because they have been better money makers in my market.

Why I made a more challenging goal

In 2010, my original goal was to buy 30 rental properties in ten years. I based that goal on what I thought I could realistically achieve when I started buying rentals. A couple of years ago, I realized my goal was too easy because I knew I could buy 30 houses in ten years. I had given myself no room for improvement in my investing strategies or real estate business! At the start of 2013, I reworked all my goals including my rental property purchase schedule. My new goal was to buy 100 rental properties by January 2023 because it challenged me and would make me work hard. I had no idea when I first made this goal how I could buy 100 rental properties, but that is why we make big goals; to challenge us to do more and to change the way we do things.

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Why real estate?

I want to buy 100 rental properties because of the income and freedom that 100 houses will give me. I make over 15 percent cash on cash returns on my rentals because I purchase them below market value with great rent to value ratios. If I can buy 100 rental properties with the current cash flow requirements I have, I will make a lot of money. According to my calculations, I will be making over $900,000 a year in cash flow, have at least 60 houses paid off, and have over 11 million in equity in my rental properties. Those figures are not adjusted for inflation and assume no appreciation or rent increases. That kind of income should allow me to afford whatever my family and I want and allow us to do whatever we like. We only live once and I want to get everything that I can out of life.

The first part of this article discusses the philosophy behind buying 100 rental properties, why it is important to have big goals, and why it is important to think big. The second half of the article discusses the numbers and a detailed purchase schedule.

For more great tips, check out the InvestFourMore Instagram page.

Is it possible to purchase 100 rental properties?

To be completely honest, I do not know how I am going to buy 100 rental properties by January 2023. I do not make nearly enough money to buy 9 or 10 houses a year. I have barely been able to buy three houses a year. I bought my first rental property in December 2010, and I started my rental property purchase goal on that day. I should have had three by December 2011, six by December 2012, and nine by December 2013. I started out very slow buying only one rental in my first year. I have picked up speed and as of March 2016, I own 16 rentals, still behind where I had hoped to be. That does not mean I will not reach my goal. The reason I have not purchased as many rentals lately is they are much harder to find in our market. Our prices have increased significantly making it harder to cash flow. I have been buying many more fix and flips since I cannot find rentals.

Why do I think I can purchase 100 rental properties by January 2023 if I am so far away? After reading and listening to books on how to become wealthy I started reworking my life goals. A couple of ideas are repeated in books and audio tapes beginning with Think and Grow Rich by Napoleon Hill. Think and Grow Rich was published in the early 20th century after Napoleon Hill followed Andrew Carnegie for decades. Carnegie was one of the richest men in the history of the world and wanted someone to study rich people in the world and write a book about how and why they became rich. Because Carnegie was one of the richest people in the world, he was able to grant Hill access to most of the world’s wealthiest people. Think and Grow Rich is now known as one of the first self-help books, and many of its basic ideas are still taught today by the world’s most famous life coaches and teachers.

How will my attitude affect my success?

Being positive is a theme that is repeated in every self-help book and audio recording I have ever listened too. I am a strong believer that our attitude has a huge influence on our success in life. The books range from slightly crazy to extremely scientific reasons for how being positive can greatly affect the success we have in our lives. You may have heard of the law of attraction, which states that the universe will return to us whatever we put out. If we are positive and happy, we will get positive and happy things back. If we are negative and sad, negative and sad things will come our way. I am a very logical and scientific person and was not sold on this idea right away. I had to know why this would happen. How could being positive magically bring positive things into our lives?

I started doing research on the brain and on how the law of attraction theory worked. I found out that it is not all magic, there are scientific reasons why the law of attraction works. It is based on the subconscious part of our brain and on how it operates our bodies. We know that our conscious mind is only a fraction of what our brain is responsible for. Our subconscious mind is constantly working to keep us alive by telling our heart, lungs, muscles and the rest of our bodies what to do. Most of our movements and actions are performed by our subconscious, not our conscious mind. We do not have to think about walking, talking, driving, writing, or even most of our daily tasks. By doing those things repeatedly, we have programmed our minds on how to do them.

Tying this back into the positive thinking idea, if we are always thinking positively, our subconscious will think positively, too. If our subconscious thinks we are happy all the time, it will do what it can to make us happy. Why do we care what our subconscious thinks? It is much smarter than our conscious mind. The subconscious is responsible for handling millions of tasks at once, while our conscious mind can only handle a handful of ideas at once. If we let our subconscious know what we want it will help guide our lives and help us to get what we want. Whether it is love, happiness, money, or material items our subconscious has much more power than we think. The theory also states that you must think about what you want, not what you do not want because our subconscious cannot tell the difference. If you are constantly thinking about not having money, then your subconscious will do its best to make that come true as well. If you are constantly thinking of not getting sick, our subconscious will do its best to get you sick. Think of being healthy, think of being rich, and think of the good things, not the negatives.

Why such a big goal?

Almost every self-help book will tell you goals are extremely important. Without goals, we have no direction, no path, and no idea of what we really want in life. There are varying ideas of how our goals should be constructed. Some say we just need broad wide-open goals such as being as happy as possible all the time to make whatever is best for you to come to you. Others say to be as specific and detailed as possible with your goals, break your goals into smaller goals, and then have a period for when those goals will be accomplished. Eventually, you will have a detailed blueprint for how you will get to where you need to go.

Some people say you need realistic goals and others say you need outrageous goals. As you have probably guessed, I like outrageous goals! The reason I like outrageous goals is that they are challenging! If I know that I can reach a goal and if I know exactly how to reach it, where is the motivation for me to push myself? I want goals that make me think and reach for new ideas and systems. I have no idea what opportunities or challenges will face me in the future, so why should I limit my future goals to what I can do now? I may have a huge increase in income or find a new system that allows me to buy houses cheaper. I have such a lofty goal because I have no idea what could happen.

Who will I need help from?

Many of the self-help books also talk about how we all need friends, co-workers, or acquaintances to help us reach our potential. Some use the term mastermind to describe groups of like-minded people who meet to help each other succeed by offering advice and motivation. The idea is that the more people to brainstorm ideas, questions, problems, etc. the better the chance a great idea or solution to a problem will come about. I do not have a mastermind group (this has since changed), but I have recruited my best friend to work with me and learn the real estate business. He was a top-level manager in the corporate world and left his six-figure salary behind to learn real estate from me. I benefit by having a new mind to bounce ideas off and have more help in the office. He benefits by getting out of the corporate grind and learning how to be truly wealthy. He also has a flexible schedule and he is not stuck behind a desk all day.

Why focus is so important

The self-help teachers also say how important it is to focus on one task or goal. All the greats had something in their mind that they really wanted. They did not let anything stop them until they got what they wanted or died trying. I have always thought of myself as being able to multitask, a jack-of-all-trades type of person. So far, it had worked out well, but I know I can do better. I know there are things I can improve in my business to make it run better and make more money. I have always thought that I knew everything about finding good deals in real estate. After starting this blog, I have realized that there is a whole world I have been missing in direct marketing to off-market properties. Instead of trying to manage five different sources of income myself, I need to delegate less important tasks to my staff and focus on the real moneymakers. If I can focus intently on a couple different areas of my work instead of just skimming over 50, I know I can improve my numbers significantly.

Why visualizing the goal being achieved is important

Many great athletes will tell you how important visualization is to succeed in sports. Great golfers visualize exactly how their shot will look before they hit it. Basketball players repeatedly visualize hitting the game-winning shot. The wealth teachers are all huge supporters of visualization. They say visualization will give your subconscious a clear picture of what you want and then your subconscious will do its best to make it happen. If you want to change your life, start visualizing how it should be every day. Better yet, go see, touch, and smell the things you want. Test-drive the car you always wanted, look at your dream home, or immerse yourself with the things you want and your subconscious will get to work. I wrote a ten-year dream story on exactly how I wanted my life to be. I described a beautiful house and in three months, I bought that house. I was not even planning to move and in no way thought I could afford a house like the one I have now, but it became a reality.

Using all I have learned to reach my goals

Based on the ideas I have just discussed, I think I have a good chance of reaching 100 rental properties. I still do not know exactly how it will happen, but I know it will or I will find a better and more challenging goal. I have to train my subconscious to help me reach my goal. I have to be positive all the time. I have to think about my goals constantly and break it down into manageable pieces. I must have help and I have to focus more intently on my important goals. I also have to visualize myself already achieving my goals and having everything I want. Even if not all of this makes me rich, worst-case scenario, I am a positive, determined, focused person who knows exactly what he wants.

Breaking down big goals makes them more realistic

I have broken down other goals in my life, but I have yet to break down a goal this big! I am going to work through the goal while writing the blog and see where I end up in 9.5 years. I wanted to write this article to help convince myself that it is possible to buy 100 properties. The first part of this article was all about my mindset. Now, let us get down to the numbers. Here is a year-by-year breakdown of how I plan to purchase 100 rental properties.

My 11th rental

Year one

With my current income, I can purchase three rental properties a year and I have purchased that many in the last three years. I should be able to do a cash-out refinance on at least one rental property in 2014 and get enough money to buy another property. I am also counting on my new attitude and work ideas to create enough extra income to purchase one more rental property. I also just acquired a HELOC on my personal residence for $60,000. I think that will allow me to purchase one more rental. New goal for 2014 is to purchase six long-term rentals.

I will have 15 houses with about $9,400 in monthly cash flow. That is $112,800 a year all going toward paying off mortgages on my properties. I will have paid off one house at the beginning of 2014 and will pay off one and a half more in 2014.

Year two

In 2015, with income and savings, I should be able to purchase four properties. I should be able to do another cash-out refinance and buy another rental property as well. I also believe my continuous improvements will allow more increases in income, through either listing or flipping houses. The increased income will allow me to add another rental and HELOC another as well. I am hoping the addition of my friend beginning to work with me will bring in more income from his real estate activities, which will allow another purchase. My goal for 2015 is to purchase nine rentals. 

I will have 24 houses with about $15,200 in monthly cash flow. That is $182,400 a year all going toward paying off mortgages. I will pay off the other half of one property and two more rentals in year two and will have four properties paid off.

Year three

I believe I will increase my income and savings enough to be able to buy five rentals. I will have 24 rentals and I should be able to refinance at least two of those properties. That will allow two more purchases and the HELOC should add the flexibility to add another rental. I am still planning to add to my income every year with increased business. This year I see a big jump in income with my friend being around for his third year and our new marketing and listing techniques taking off. I see three more rental properties being purchased from new income. My goal for 2016 is to purchase 11 rentals.

I will have 35 houses with about with about $22,200 in monthly cash flow. That is $266,400 a year all going to pay off mortgages. I will pay off four and a half more properties for a total of eight and a half properties paid off.

Year four

From my current income, I will be able to buy eight rental properties. I will continue to refinance two properties a year, which will allow at least two more purchases. I am also going to use the HELOC to buy another, and I am still planning to increase my income. I am going to stay conservative and assume enough income to buy one more property this year. My goal for 2017 is to purchase 12 rental properties.

I will have 47 rental properties at this point with about $31,400 in monthly cash flow. That makes $376,800 a year all going to mortgage payoff! I will pay off the half of a mortgage left over from 2016 and five more properties in 2017, making 14 properties paid off.

Year five

From my current income, I will be able to purchase nine rental properties. I will refinance two more properties and use the proceeds to buy two more rentals. I may not have enough money in the HELOC this year so I will not count on that, but I will count on my income increasing enough to purchase one more rental. My goal for 2018 is to purchase 12 rental properties. Note: To buy this many properties I will need about $300,000 in cash for repairs and down payments.  

I will have 59 rental properties with a monthly cash flow of $41,000. That makes $492,000 a year all going to mortgage payoff. I will pay off seven and a half more properties in 2018 making 21.5 properties paid off.

Year six

From my current income, I will be able to purchase ten rental properties. I will refinance two more properties and use those proceeds to buy three more rentals. With inflation and appreciation, I should be able to refinance the properties for more money than in previous years. I will not use increased income to buy another property. If my income increases, I will use it for fun stuff such as vacations or cars! My goal for 2019 is to buy 13 rental properties.

I will have 72 rental properties with a monthly cash flow of $51,600. That is $619,200 going toward mortgage payoff. I will pay off the half mortgage from 2018 and nine more properties in 2019 making 31 properties paid off.

Year seven

From my current income, I will be able to buy ten rental properties. I will refinance two more properties and use that money to buy three more rentals. I will not count on any more raises in income since I do not need it at this point. My goal for 2020 is to purchase 13 rental properties.

I will have 85 rental properties with a monthly cash flow of $63,400. That is $760,800 a year going towards mortgage payoff. I will pay off 11 more properties in 2020 making 42 properties paid off.

Year eight

From my current income, I will be able to buy ten rental properties. I will refinance two more properties again and purchase three more rentals with that money. My goal for 2021 is to purchase 13 rental properties.

I will have 98 rental properties with a monthly cash flow of 75,600. I will have $907,200 a year going towards mortgage payoff. I will pay off 14 more properties in 2021 making 56 houses paid off.

Year nine

I only need to buy two more properties to reach my goal! I made it ahead of schedule and when I started writing this article, I was not sure how I would be able to reach 100 properties by 2023. I do not need to refinance any properties at this point and I can start using my income any way I want or I could retire!

I will have 100 rental properties with a monthly income of $82,400. I will have $988,800 a year going to whatever I want it to go to at this point. I can stop paying down mortgages if I want to or I could keep buying properties if I get bored. I came really close to the figures I estimated before writing this article. Falling just short of one million in income from my rental properties (which was more than I thought) and just shy of 60 properties paid off.

Assumptions in my plan to purchase 100 rental properties

You may be wondering how I came up with my figures. To be honest I used very basic figures to make things easy on myself.

  • I assumed $600 in monthly cash flow per property. I am making between $500 and $700 per property now.
  • I assumed each mortgage that I paid off would increase monthly cash flow by $400.
  • I do not assume any inflation because that would cause the numbers to be much more difficult to figure!
  • I assume my portfolio lender will continue to lend on as many properties as I want. I will have 43 houses financed at one time and then those will start to decrease as I pay them off.
  • I assume I can continue to do cash-out refinances with my portfolio lenders.
  • I assume interest rates will not increase significantly.
  • I assume rental rates will not go up.

Additional benefits of rental properties that my income projections did not account for

Rental properties have great tax advantages, which I discuss here. Every rental property can be depreciated, which will save me thousands in taxes each year. I assume my rental properties will not appreciate, but they have already seen huge appreciation in the last two years, increasing my net worth by $600,000. I assume rents will not increase, but my rents have increased as well over the last couple of years. I rented my first rental property for $1,050 a month in 2011 and it now rents for $1,300 a month. I will most likely be better off than my projections indicate if I can buy 100 rental properties.

Potential roadblocks

These are many assumptions and one or more of them may not work out as I plan. However, other factors may help me do even better than I planned or balance out any roadblocks I run into.

  • New ways to find properties: I am going to start direct marketing to off-market owners. This should allow me to buy properties even further below market, and I may even find a few owners who will finance down payments. I recently realized I could use my IRA to buy properties!
  • Private money: One of my goals is to find new sources of private money that will allow me to finance more repairs and down payments. This would allow me to put less money into properties and buy them faster.
  • New income sources: I have no idea what the future holds as far as opportunities and money. I may find a gold mine that will allow me to buy properties for cash and not have to worry about financing at all!
  • I assume I will not do anything with the houses I pay off free and clear, but if needed to I could easily get a line of credit or refinance one of these houses to bring in enough money to buy a few new properties.

What will I do in 2023 if I reach my goal?

My Lamborghini

I have many things I would love to do if I did not have to work. Here is a list of a few of the things I would love to do with one million dollars a year coming in and no job!

  • Start a pizza restaurant
  • Start a car dealership
  • Travel the world with my family
  • Donate time and money to those less fortunate
  • Play in the World Series of Poker
  • Attend a Super Bowl
  • Play golf all over the world
  • Buy a Lamborghini Diablo (done!)
  • Buy a beach house
  • Help teach others about real estate (doing my best now)

I have a much longer goal list than what is above and I hope to do many of these things before 2023. I know I will have time, money, and the freedom to do these things at that time.

Conclusion

I plan to purchase 100 rental properties by January 2023, but I realize that may not happen. If something better comes along to change my plan, I am ready to embrace fully any new opportunities.

Update on my plan 2014

I have already changed focus slightly in 2014 to fix and flipping over buying long-term rentals. I have done this for two reasons:

  1. There have been more fix and flip opportunities than rental opportunities in my market.
  2. The money from flipping will help me buy more rentals; rentals take a great deal of cash.

It seemed crazy to think I could increase my income enough to buy this many properties when I first made this goal in 2013. However now that it is late 2014, I can easily see myself making more than enough money to buy 100 rental properties and have plenty of money left over to do other fun activities. At some point, I may decide it is better to buy larger multifamily buildings than single-family homes, but for now, I see more opportunity in the single-family market in my area than multifamily.

Update on my plan 2016

The market has gotten even crazier in Colorado. Houses I was buying for $100,000 are now at least $160,000 or more. The rents have not increased nearly as much as house values have increased. It is very hard to find rentals and I have stopped buying them in Colorado. I have started to look at other states including Florida for a new market.

I also stopped paying off my mortgages early. I decided my money was better used to buy as many homes as I could. It has paid off buying 16 rentals in the last five years since our market has gone up so much. I have invested about $300,000 in buying my houses and my equity is close to $1.5 million. I have even decided to sell some of my rentals and re-invest that capital into more properties in another market.

I wrote this goal out in 2013 and updated it in 2014, and it is now 2016. I think goals are vitally important to achieving what you want in life. Will I reach this goal? I do not know. If I don’t reach it, will I be a failure? No! I am already way ahead of where I would have been without this goal. That is the point of goals, to motivate you to go farther than you think you can.

Update on my plan 2018

Right now it is the middle of 2018 and I have not come close to where I should be with my goal. Am I disappointed? No. Many things have happened that are out of my control; good and bad. The biggest challenge I have faced is the housing market in Colorado. Prices have almost tripled since I made this goal. Some of the rentals I bought for less than $100,000 7 years ago are worth close to or more than $300,000 today. I can no longer cash flow on residential rental properties in my market. I have thought about buying rentals in Florida, but in the end, decided to buy commercial properties here. I even bought a 68,000 square foot strip mall this year. I am buying rentals worth a lot of money, but not as many as my plan called for. Sometimes we have to change our plans based on changes in our lives or markets.

I have also focussed more on flips because I can make money with those in my market. I flipped 26 houses last year!

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Categories Money

Source: investfourmore.com

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After this week, who is ready for an escape? While I’m not actually going anywhere (there’s too much to do here), I am going to take this weekend to fantasize about life in far away places. Like this Swedish apartment photographed by the incredible Jonas Ingerstedt.

This space takes you through a moody and muted journey. Each surface is adorned with collectables making you feel as though you are stepping into a museum. Every design detail serves a purpose, but feels casual enough to be livable. Tones of green so soft, make the backdrop feel neutral enough to layer in pops of color. Rich textures and unexpected details add warmth, comfort and a touch of whimsy.

From an interior design standpoint, what makes this space so interesting is the way that the space is utilized from the floor to the ceiling. Each surface, even the lowest point in the room, is decorated. Art is placed on the floor instead of hung on the wall. A bookshelf starts at the lowest point and reaches to the top of the ceiling. A gallery wall fills up an entire room. Every surface from the coffee table, to the dining table, to the kitchen island is accessorized with such intention. From every object to each floral arrangement, you never question the purpose of so much detail in one small space. That in my opinion is design done right.

This design proves that neutral does not have to be tones of white, but instead can be your favorite vibrant hue in a muted form. Different tones of green whisper from room to room, acting as the perfect contrast to the pops of red sprinkled throughout the space. I love how this space has an abundance of natural greenery and floral arrangements translating the muted green color palette into something much more tangible. While I’ve gone uber neutral in our house, I’m thinking a layer of this understated green might be the perfect addition.

SHOP THE POST 1 Page Plant Hanger | 2 Mid Century Bamboo Rocker | 3 Agate 4 Book Ends |4 Wool Blend Throw | 5 Florence Sofa | 6 Cream Pillow | 7 Modern Candelabra | 8  Marble Coffee Table |9 Wide Armed Dining Chair | 10 Glass Cone Bottle

This space is the perfect example of how to push the limits of design, I hope you are inspired to run with a color palette that pushes your boundaries. After seeing this space, you won’t regret it!

For more inspiring home tours, CLICK HERE.

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Source: apartment34.com

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This article originally appeared at I Will Teach You to Be Rich in a slightly different format.

Finding a job can be tough. Competition is fierce, and even if you’ve got the skills, it’s a challenge to make yourself known to the right people. According to Michael Hampton, Director of Career Development at Western Oregon University, informational interviews are a valuable networking technique that can give you an edge on your competition.

The informational interview is designed to help you choose or refine a career path. You can learn how to break in and find out if you have what it takes to succeed. Spending time with one of your network contacts in a highly focused conversation will provide you with key information you need to launch or boost your career.

An informational interview is not the same as a job interview. It’s an opportunity to find out more about a particular career or company. These sorts of interviews can be valuable for anyone, not just those looking for a new job. You might consider this approach if:

  • You’re a recent graduate exploring possible career opportunities.
  • You have an established career, but would like to discover what it might be like to work for another company.
  • You feel as if you’ve done as much as you can in your current job and are interested in changing fields.

By meeting with somebody experienced in the field you’re considering, you can find out more about what the work is really like, about how much it pays, and about the drawbacks.

The First Rule

Before you begin seeking informational interviews, it’s important to understand a couple of rules:

  1. The first rule of informational interviews is: do not ask for a job.
  2. The second rule of informational interviews is: do not ask for a job.

If you meet with somebody under the pretenses of gathering information and you attempt to turn the encounter into a job application, you’re just going to make her angry. If, after the interview is finished, she thinks you’re promising and she has a position available, she’ll contact you. Do not ask for a job.

Conducting the Informational Interview

Your first step is to find people with jobs that look intriguing. Once you’ve identified some likely candidates, prepare a simple phone script to make sure you get everything you need in your initial contact. It can be helpful to approach the informational interview as if you were a reporter. Pretend you’re gathering information for a news story. This can help calm your nerves. Make sure to adhere to the following guidelines:

  • Ask politely. If the person declines the interview, respect her boundaries. If she accepts, select a time and location that works for both of you. (Phone interviews are fine.) Confirm the time and location.
  • Be prepared. Dress appropriately. Be punctual. Do your homework — learn what you can about the company from trade magazines, press releases, and past (and present) employees. Research will allow you to skip questions that could have been easily answered via another source. You want to use this opportunity to ask more intelligent, relevant questions.
  • Listen. Be ready with a list of open-ended questions. Let the interviewee talk about herself. Good questions include:
    • “What is your typical day like?”
    • “What do you like most (and least) about your job?”
    • “How does your company differ from its competitors?”
    • “What is the future like for this industry?”
  • Take notes. Remember that you’re conducting this interview to gain insight into a possible career. Write down anything that might be important. Ask follow-up questions.
  • Be brief. Keep track of time. Don’t rush the interview, but don’t overstay your welcome, either. If you’ve done your homework, you know which questions to ask. Get the information you need in a timely fashion, and then let the person return to her workday. Pay attention to signals that it’s time to leave.

Don’t forget to send e-mail or a brief hand-written note to thank the person for taking time out of her day to meet with you.

Informational interviews aren’t just for job seekers. You can use them to locate mentors or to pick the brains of experts on a favorite subject. I’m preparing to write a book, for example, and have been fortunate to find half a dozen authors who have been willing to take time to describe their experience with the publishing process.

Further Reading

If you’d like more information on this subject, follow this inter-related web conversation:

Although the primary rule of the informational interview is to never ask for a job, there is an exception. Says Western Oregon University’s Michael Hampton:

If you discover a job that you want to apply for during the interview, wait. The next day, call the employer and tell your contact that the informational interview not only confirmed your interest in the field, but made you aware of a position that you would like to formally apply for.

The best part about the informational interview? Few people use them. Add this weapon to your arsenal, and you’ll have an advantage on everyone else who’s out there looking for a job.

Source: getrichslowly.org

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If you’ve been looking into cruises, chances are you’ve come across some deals that sound almost too good to be true. Maybe you’ve even been lucky enough to score a cruise offered for as little as $100 by leveraging hotel elite status matches.

But once you put down your deposit and start looking into all the extras, you’ll find that what you actually end up paying for your cruise vacation can easily be many multiples of the advertised rate that initially lured you — especially once you factor in flights and hotels.

Cruise companies, like airlines, make a lot of their money off ancillary fees. But there are ways for you to avoid some of these pesky surprises. Here’s how to save money on a cruise.

1. Cruise excursions

Potential added cost: $600-$1,200 (3 full-day excursions for 2 people at $100-$200 each, per person).

Frugal alternative: DIY at a level you’re comfortable with.

From the moment you book your cruise to the days you’re sailing, you’ll hear and see a lot of pitches for cruise excursions, which can be a tempting way to fill your hours in port while leaving every small detail to the cruise line.

But you’ll pay a huge premium for that convenience.

Assuming you’re open to some (extra) adventure, many excursions can easily be replicated for a fraction of the cost.

For example, on a recent Mexican cruise, a friend and I walked about 20 minutes from the cruise port along a well-maintained sidewalk to undertake a mountain hike for free that had been offered as an excursion for $60 per person. We figured we were already hiking anyway, so why not tack on an extra mile or so? A local bus would have done the trick, too.

Not quite so adventurous? Look into taking taxis, which are generally easy to find at any cruise port. Even that would have cut the price from $60 per person to roughly $5-$10 per person.

Here are a few other overinflated offenders you can easily replicate on your own or by booking ahead of time with well-rated local vendors:

  • Bike or walking tours.

  • Open-air bus tours.

  • Transport and entry to a beach club.

  • Boat excursions.

  • Cooking classes.

Pretty much anything offered in port can be put together independently. And local vendors are very much aware of ship times, so don’t worry about getting left behind. Their reputations depend on getting you back safely.

🤓Nerdy Tip

Sometimes, cruise excursions are worth the cost — for instance, accessible tours for those in wheelchairs, or things impossible to replicate yourself, such as behind-the-scenes ship tours that take you to the bridge and the engine room.

2. Wi-Fi packages

Potential added cost: $300-$600+ ($15-$30 or more per day, per person, on a 10-day cruise for 2 people).

Frugal alternative: Free Wi-Fi in port.

For those of us who are always online, some of the most difficult — and mystifying — charges to swallow are cruise Wi-Fi fees. Making matters worse is that cruise lines often require you to purchase a package for the whole cruise, so you can’t do, say, one day on and one day off.

The most obvious workaround, especially if your cruise has many more port days than sea days, is to simply spend an hour or so in port catching up on your internet needs.

A local library is your best bet, but often the port facilities themselves will offer free Wi-Fi. Bars and cafes generally offer Wi-Fi too, which allows you to take in some local flavor while you’re scrolling your Instagram feed.

🤓Nerdy Tip

Even if you’re not buying an internet package, log on to your ship’s Wi-Fi connection anyway and just see what happens. On two recent cruises, I was immediately able to use iMessage, and in one case I even had full internet access at certain times (but not at others). If it works for you, consider it a pleasant surprise.

A more complicated route would be to purchase a SIM card for your phone that works for each destination, but it’s unlikely to work while at sea.

3. Alcohol packages

Potential added cost: $1,000-$2,000 ($50-$100 per day, per person, on a 10-day cruise for 2 people).

Frugal alternative: Bring your own booze.

Many cruise lines allow you to bring a limited amount of alcohol on board. Here were the allowances for a few of the more popular cruise lines at last check:

  • Carnival: One 750-milliliter bottle of sealed/unopened wine or champagne per person age 21 or older in your carry-on luggage upon departure. No alcohol otherwise.

  • Celebrity: Two 750-milliliter bottles of wine per person of legal drinking age at departure. No alcohol otherwise.

  • Norwegian: Any amount of wine or champagne, as long as it isn’t boxed wine. No alcohol otherwise.

  • Princess: One 750-milliliter bottle of wine or champagne per adult. Extra bottles are allowed for a nominal fee per bottle. No alcohol otherwise.

  • Royal Caribbean: One sealed 750-milliliter bottle of wine or champagne, but no boxed wine or other alcohol. 

You might have to pay a small corkage fee if you consume your own alcohol in an onboard restaurant, so be on the lookout for that.

What about nonalcoholic drink packages? They’re cheaper, as you’d expect, but again, you can generally bring some on board instead. (Coffee and tea are often available for free throughout the ship.)

Here’s the rundown of how many nonalcoholic beverages you can bring on board some popular cruise lines:

  • Carnival: Up to 12 sealed, unopened cans/cartons of 12 ounces each or less, per person, in your carry-on.

  • Celebrity: Their terms don’t explicitly mention non-alcoholic beverages. On a recent cruise, I took that to mean there was no limit; I brought two 2-liter bottles on board with no problem.

  • Norwegian: Not allowed, with limited exceptions.

  • Princess: Up to 12 sealed, unopened cans/cartons of 12 ounces each or less per person. 

  • Royal Caribbean: Up to 12 standard cans, bottles or cartons per stateroom.

One underappreciated thing about bringing your own drinks: It’s a lot more convenient to serve yourself than it is to wait to be served at a bar.

🤓Nerdy Tip

If you’re tempted to try splitting a drink package with multiple people, don’t bother. Cruises generally only serve you one drink at a time, and they have their ways of knowing the purchaser is the one getting served (for instance, via wristband or scanning your onboard card that shows your ID).

4. Spa services

Potential added cost: $100-$200 or more per treatment at sea.

Frugal alternative: Skip the treatments or get them in port.

Lots of things are typically included on cruises — most food, entertainment, pools — but spa treatments are generally extra. (Probably a good thing: If everyone on the ship got bottomless massages, that’s about the only thing many of us would want to do the whole week.)

Although there might be no such thing as a free spa day, cruise lines will occasionally offer short “sample” treatments meant to entice you into paying for more. If you can resist a sales pitch, give it a shot, though these free offerings tend to fill up very fast.

Here’s another case where getting your fix in port can save you a bundle. While cruising in the Caribbean recently, I paid the equivalent of $30 for what turned out to be a world-class massage. It might have been just as great on board, but it would’ve cost about five times as much.

🤓Nerdy Tip

On two recent sailings I was able to access the onboard spa’s common areas for free throughout the week. So, if you want “spa-adjacent” goodies — like a sauna, heated loungers or extra-comfy chairs — just wander a bit and see what you find.

5. Paid room service

Potential added cost: $100 ($5-$10 per item, or a set delivery fee).

Frugal alternative: Pack your baggies.

More and more, cruise lines are charging for room service that used to be free. (For instance, on Carnival and Celebrity, only continental breakfast is included for most guests now.)

Room service items generally aren’t expensive, but a few cases of the midnight munchies can add up quickly. One alternative is to bring a few clear plastic bags so you can “pack” easy-to-carry items from elsewhere on the ship.

At dinner, order that extra cheese plate, bag it up and stick it in your room fridge. Or if you have a sweet tooth, grab some cookies from the buffet.

Made-to-order sandwiches can travel well, too — so well that you could bring a couple with you on your port days, as we did on a recent cruise. But don’t get too carried away. After all, you might not want to miss the local cuisine.

🤓Nerdy Tip

Generally speaking, the room service menu isn’t going to be that memorable anyway, so you’re probably not missing much by not partaking. And besides, free food is never more than a few minutes away on most cruise ships.

6. Tips and taxes

Potential added cost: Roughly $100-$300 on average for taxes; roughly $10-$25 per person per day for tips (so figure $200-$500 total for a 10-day cruise for 2).

Frugal alternative: Score an onboard credit to help lighten the blow of these mandatory extras.

As cruise ship fees go, there are only two sure things: tips and taxes. Even the least expensive cruise offers will tack on both, and generally you won’t see either fee mentioned upfront when you’re first starting to book.

  • Port taxes vary based on the length of your cruise and where you’re stopping, but on average you can expect to pay $100 to $300 on top of the cost of your room.

  • Tips are a baked-in way of saying thanks for the service you’ve received on the cruise from front-line workers such as your room steward, wait staff and guest services. Charges vary wildly but range from $10 to $25 a day in many cases.

Port taxes generally must be paid no matter what, but tips (or any other costs mentioned above) can generally be covered in full using onboard credits. Cruises often offer such credits to entice you to book. In one case, I received $100 in onboard credit on a line I hadn’t cruised before simply by calling and requesting it, citing the fact that I was a new customer. (Motto: It really never hurts to ask.)

7. Flights to the cruise port

Potential added cost: Easily hundreds of dollars, plus hotel costs as needed.

Frugal alternative: Use points and miles.

In the heat of booking that dream cruise, one of the easiest expenses to overlook — but one of the costliest — is the travel to and from the cruise port.

If you aren’t lucky enough to live within easy transit or driving range of your departure port, you’ll need to factor in costs for flights. And unless you like living dangerously, you’ll want to fly in a day in advance, which means budgeting for at least one hotel night.

Any number of travel rewards credit cards come with sign-up bonuses that, alone, could more than cover the cost of your transit in the form of hotel points or airline miles. For the best value, focus on cards that earn reward currencies in the American Express, Capital One, Chase or Citi ecosystems. These points can be transferred to a wide variety of airline or hotel programs.

🤓Nerdy Tip

For a different kind of flexibility, consider cards that offer the ability to redeem points toward “erasing” any travel purchase you make with the card, such as the Aeroplan® Credit Card from Chase or the Capital One Venture Rewards Credit Card. You could even use such cards to pay for, then erase, those pesky port fees referenced above.

The bottom line

That cruise you’re seeing marketed for just a few hundred dollars (or less) can easily balloon to many multiples of that amount if you’re not careful.

But with the right travel rewards credit card, a healthy sense of adventure and some good old-fashioned resourcefulness, you can fully enjoy the vacation you’ve earned while resting assured that you haven’t broken the bank.

(Top photo by Brad Walters)

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for:

Source: nerdwallet.com

Apache is functioning normally

If you’re a fan of vintage style, there’s no reason why your home can’t reflect your passion for all things retro. When antique and vintage pieces are incorporated into a room, they bring a distinctive flair. Often, these items are chosen to reflect an individual’s personality and life experiences. Vintage styles are appealing in part due to their warm, neutral colour palettes, which feature comforting beige tones. To pay tribute to these designs, wall panels, flooring, ceiling features, and other elements are often painted in shades like walnut brown, brick red, olive green, Prussian blue, and mustard, among others. From antique furniture to classic decor pieces, there are countless ways to transform your house into a vintage haven. (Also read: Home decor tips: Time-honoured decor pieces for culture and art enthusiasts )

From antique furniture to classic decor pieces, there are countless ways to transform your house into a vintage haven.(Unsplash)

Tips to add vintage flair to your home decor

Talking with HT Lifestyle, Raghunandan Saraf, Founder and CEO, Saraf Furniture, says, “Your options for elegant improvements are virtually limitless when it comes to vintage chandeliers. Get a few different-sized iron chandeliers and hang them in your living room at various heights. Even old bottles can be used as light fixtures to give your chandeliers a unique antique feel. A wooden swing or jhoola nicely captures the old vibe for larger, more open houses. The swing, which is located inside the room rather than on the porch or veranda, is the focal point of a vintage living space. The chest is one of the most adaptable pieces of furniture that has been handed down from the antique era to the modern era. Incorporate one in your house to fill the vibe.”

Gopal Suthar, Founder of Furniselan, shared with HT Lifestyle, “Without a rocking chair in the home, you cannot think vintage. They add a sense of occasional playfulness and sometimes seriousness, and it is perfect for unwinding with a book or Kindle! You can set the gently padded rocking chair in your study, living room, or even on your veranda. Create a DIY retro space in the hallway. The vintage luggage, old-fashioned clock, and ornate light fixture all speak for themselves. The charming wooden bench completes the appearance. More than anything else, the characterful side of textures is discussed in all things old and vintage. It is a place where the stone can be its unprocessed self which is natural nature, and metal can dazzle its brushed finishes.”

“Old-fashioned, retro statements convey the old-world charm in a way that is both lovely and nostalgic. The appearance, feel, and character of the past are celebrated while also playing with a faint undercurrent of familiarity. The puzzle pieces seamlessly fit together to form a story and produce an engaging atmosphere. Every piece creates a statement when using historic pieces, and each statement helps to create the home’s distinctive personality, “says Gopal.

In conclusion, turning your house into a vintage haven can be an enjoyable and fulfilling project. This style is timeless and can add unique character and charm to your home. By incorporating a variety of vintage elements, such as antique furniture, vintage textiles, and vintage- inspired decor, you can create a cohesive and inviting space that reflects your personal style. Remember to tailor your vintage design to your tastes and needs so that it is both functional and beautiful. Whether your goal is to create a cozy cottage or a grand Victorian estate, incorporating these sophisticated ways is sure to make your house a classic and timeless home.

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Source: hindustantimes.com

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Last Updated on February 25, 2022 by Mark Ferguson

Many people have dreams of making it big as a real estate agent, but they want to start slow as a part-time agent. They want the freedom, income, and other benefits that come with being a real estate agent but are afraid to lose a steady income. Getting a real estate license and working part-time as an agent may seem like a great idea, but it is not easy to pull off.

There are some cases when working part-time may work; like an agent who only uses their license for their own investing strategies. There are also a couple of other instances where being a part-time agent can work if you have a very flexible schedule. The problem with being part-time in real estate is that clients need things done at all times of the day. If you cannot get away from your job, you are going to find yourself struggling to help those clients.

How hard is to become an agent?

One of the drawbacks to becoming a part-time real estate agent is how much work it takes to become a real estate agent. One of my team members just got their real estate license. It can take hundreds of hours of education and testing to become an agent. If you already have a job, even part-time, it will be tough to find the time to complete your education.

There are night classes and online classes that you can take to get your real estate license, but you will have to spend a lot of time studying. The real estate exam is not easy to pass and it will take a lot of time to prepare for it. If you want to become a part-time agent, make sure you factor the time it will take to get your license into the equation.

In Colorado, you will need to take 168 hours of classes either online or in-person to complete the education portion. Once you pass the classes you must take the test, pass the background check, and find a broker to work with. This all takes a lot of time!

If you are interested in getting your real estate license, Real Estate Express offers classes in most states and is very affordable.

Will you have enough time for clients?

Once you get your license, you must hang it with a brokerage. After finding a brokerage, you must start working with clients and generating business. This is where it gets tricky for a part-time agent who has another job. Whether you are listing homes or working with buyers, selling real estate is a random hours job. You may not have to work 40 hours per week, but you will have to work all hours of the day.

If you have a day job, you had better be able to get away from that job to take calls for your real estate job. Buyers are going to want to look at houses and offers must be negotiated and presented. If your clients have to wait eight hours to get a hold of you, they are going to get frustrated. There is a good chance you will lose clients if you cannot get back to them in a timely manner. In a tight sellers’ market such as the one we have now, speed is very important in getting offers accepted. If buyers feel an agent cannot submit offers quickly enough for them, they will probably find another agent. If you cannot respond to your clients for hours at a time, are you being a good agent to them?

You can also check out the video below on part-time agents

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What does a real estate agent do?

Most people think that being an agent is about showing houses and writing offers. However, there is much more to being a real estate agent, and that is why we are paid so much for selling homes. Real estate agents have to do many things to close deals and generate business. Here are some of the things an agent must do in order to be successful:

  • Show houses
  • Write contracts
  • Help buyers complete inspections
  • Contact lenders
  • Contact title companies
  • Contact other agents
  • Complete continuing education
  • Host open houses
  • Talk to your circle of influence
  • Create brochures
  • Take photos
  • Create advertisements
  • Answer their phone
  • Floor duty
  • Create plans and goals
  • Manage expenses

As you can see, there is a lot that a successful agent must do. Not only do you have to work with clients, but you have to find clients as well. It takes a lot of time to be a great agent and it is very difficult to do part-time. Being able to answer your phone at any time is one of the best ways to get business. If you are returning calls hours after you receive them, there is a great chance that person already has another agent who called them back quicker or answers their phone.

Can you maintain a good reputation as a part-time real estate agent?

As a real estate agent, I deal with other real estate agents, title companies, buyers and sellers, lenders, attorneys, investors, and many people in our community. My reputation is a huge reason why I have been so successful as an agent, broker, and investor. When you are a part-time agent, it is very tough to find enough time in the day to get all your tasks done and follow up with people. If you are calling back people days later or not at all, word will spread very quickly around the real estate community. It is very important to provide great service as a real estate agent and that is tough to do when you only work part-time.

If you get a reputation as someone who is hard to get a hold of, does not call back, or is too busy to follow up, it will be very hard to shake that reputation. Even if you become a full-time agent and do an amazing job, people will remember the less than par work that you did previously. People remember the poor work people do and they expect people to do good work.

I go over everything it takes to become a real estate agent in my book How to Make it Big as a Real Estate Agent. How to get leads, how to find a broker, how much money you can make, how to make money, how to manage your time, and how to avoid the struggles many agents have. It is available on Amazon as a paperback or Kindle, and it is also on audible as an audiobook!

Can joining a team help?

If you want to be a part-time agent and there is no possible way that you can quit your current job, there are some steps you can take to be more successful. I have a team of ten people who help me run my real estate business, fix and flip business, and REO business. We have some part-time help and many members of my team started out as part-time workers. If you join a team, your team can help cover for you when you have to work your other job. By joining a team, you agree to give up part of your commission to the team so the team is motivated to help you succeed. I think there is a better chance of succeeding as a part-time agent if you can join a team rather than trying to do everything yourself.

You will be doing other tasks than just working as an agent, but it will all be real estate related. You will also have a flexible schedule on most teams that will allow you to drop everything and go show houses if needed.

Does it help with investments?

The best situation to become a part-time real estate agent is when you are a real estate investor. I own 20 long-term rentals and I complete 20 to 30 fix and flips per year. I save money when I buy a home from the MLS and when I sell a home because I do not have to pay a listing agent. Being a part-time agent who invests in real estate is well worth it in my opinion.

If you are only an agent to save money on your own properties, you do not have to worry about having a flexible schedule or working leads. If you are only an agent because you are an investor, being a part-time agent may work out great.

What other options will help part-timers succeed?

Joining a team is one way to succeed as a part-timer. There are some other ways to make a part-time real estate career work. The most important thing to have as a real estate agent is availability. Many people do not want to be on-call all the time, but there are sacrifices you must make for an awesome career. While you may not have to work 30 hours per week as an agent or even 20 hours a week to sell houses, you need to be available most of the time. If a buyer or seller needs to talk to you on a Sunday afternoon or on a Monday morning, you should be available. You may have to show houses on the weekends or in the evenings. Real estate agents make their own schedules and have a lot of freedom, but when a client needs to see a house after hours, an agent should accommodate them.

If you want to be a part-time agent and have a very flexible schedule, you have a much better chance of making it. If you have to work another 9 to 5 job every day, it will be very tough to make a real estate career work. There are some amazing jobs today that can help agents make money and have a flexible schedule. Uber or Lyft are ways agents can make money, but also be able to drop everything to help out a client.

Conclusion

A part-time agent can make it in the real estate industry, but to be successful, part-timers need to join a team until they can go full-time. If you are an investor who just wants to save money on your own investment properties, becoming a part-time agent is a great idea.

Many of my sales come from listing REO and HUD homes for banks and for the government. If you want to become an REO agent, you must be a full-time agent. Banks and HUD need immediate responses on their properties and getting back to them in a day or two will not cut it. I have to do inspections within 24 hours and most tasks in 48 hours. To be successful you need to commit and it is tough to commit to something when you are part-time.

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Source: investfourmore.com