Should You Do Real Estate Full-Time?

Many self-acclaimed real estate gurus state that everyone should quit their jobs and immediately jump into full time real estate investing. They often claim incredible results from students with little experience. We would like to caution that life-changing decisions are not usually simple and that full time investing is not for everyone. Let’s discuss some pros and cons of full-time versus part-time investing.The Full-Time InvestorEntering into the real estate profession on a full-time basis offers several advantages over a part-time commitment. Being successful requires you to develop knowledge in many aspects of real estate, and more time focused on real estate leads to greater knowledge. The more your learn, the more you earn, since you do not need to rely on as many professional services or partners for help. You also learn to recognize a deal (or a dud) faster, which gives you more time to do more business or spend with your family.As a full-time investor, you work your own hours. When we say “full-time,” that may mean as little as twenty hours per week if you are good at finding deals. The rest of your time can be spent pursuing other vocations or hobbies. Or, if you are so inspired, you can work forty or more hours and use the extra cash flow to buy rental properties or diversify your holdings in the stock market. The point is that you need to satisfy your cash flow needs before you can start “investing” your money.One final point you should consider is whether you want to be “self-employed.” If you have always worked for someone else, being your own boss sounds very attractive. In some, respects, this isn’t quite the truth. Being your own boss means being an accountant, bookkeeper, stock clerk, receptionist and office manager all-in-one. You have to do deal with tax returns, payroll, office supplies, customer service, bills and all the other hassles that come with a business. You don’t have friends to chat with at the water cooler. You don’t have paid health insurance, a company car and a 401(k). You take your problems home with you every night. Sound like fun? It is, once you learn how to master your time and run your business. Being the master of your own life and career is well worth the other hassles of dealing with your own business.The Part-Time InvestorThe part-time investor holds a “regular job.” This may be by choice or for the time being until his real estate ventures are bringing in enough cash to quit his job. If it is the latter reason, don’t quit your job because the real estate “guru” told you so. Quit your job when it is not worth the income that it brings you. In other words, if you are making more money per hour flipping properties on the side, you are at the point that where your regular job is costing you money. Only then, is it time to quit!One of the advantages of starting out part-time is that you can maintain cash flow while learning the business. It may take weeks or possibly months to find your first deal. That same deal may take several months to turn around, especially if you decide to fix it and sell it retail. Think twice before telling your boss you’re leaving; you will have plenty of time to make the career switch once you have real estate experience. You may, on the other hand, like your occupation. If so, continue to work at it, and invest in real estate on the side.The best case scenario, if you are married, is to have one spouse work a regular job. The other spouse work the real estate business for creating wealth, retirement income and a nice college fund for the children. Of course, in today’s market, you could be laid off due to unforeseen circumstances. If you earn additional income flipping houses and invest the proceeds into rental properties, you will be covered if your main income is lost. This is especially the case for married women that often forego a career and raise a family, only to find themselves divorced with no means of making a living. We don’t want to sound cynical about marriage, but with a fifty-percent divorce rate in America, it never hurts to have a system for making money.Someone with a full time job tends to have little free time to focus on real estate. A part-timer should learn most of the same skills as a full timer. Thus, the key disadvantage to flipping properties on a part-time basis is that it takes sacrifice to learn the business. Something has to give; television, lazy weekends, meaningless hobbies and even some family activities must be compromised. As with any education, time spent learning about real estate will bring its own rewards, especially if the people in your life understand your goals and your plan to achieve those goals. If you are married, make sure your spouse reads this material with you and participates in the fun process of making money.Treat Real Estate as a BusinessPeople are lured to real estate because of the quick buck that it promises. Don’t hold your breath, you won’t get rich quick. An “overnight sensation” usually takes about five years. More than ninety percent of the people who take a real estate seminar quit after three months. Real estate investing should be treated with the seriousness of a career. It takes months, even years for a business to cultivate customers and have a life of its own. You need to treat it like any other business.

Digital Transformation in Real Estate

In the last five years, however, the paradigm of real estate transactions has gone through a major change with digital transformation of our societies being at the heart of this change.Every aspect of our lives has changed drastically in the last two decades and much of the change has been fuelled, catalysed and necessitated by the increasing digital awareness and ubiquity. The Real Estate industry, although, much slower to adapt to this change has since picked up pace and is now at the forefront of some of the cutting edge innovations.As our lives are more connected, and there is greater financial freedom with easier movement possible, a greater value has now been found in attempting and executing phone system transactions online. There is less apprehension and greater confidence being shown by buyers, sellers, brokers, lessors in deploying digital mediums to conduct their real estate business.The National Broadband Network in Australia is set to take this transformation into a much higher terrain as improving connectivity and access will bring about better transmission of data, improved transparency and a much larger populace into the online phone systems fold. Consumers will be able to view and evaluate properties from far and wide, while developers will be in a position to pitch them to a more varied audience. The brokers will find themselves being able to create unified platform for the interaction of both buyers and sellers.Digital transformation in the real estate sector also means that there is an improved coordination and liaison amongst the various parties involved. Virtual meetings, conference calls and video conferencing means that physical presence is no longer the clinching requirement to close a deal. Digitization also moves the land records and ownership documents to the online sphere, this reduces fraudulent transactions and improves confidence amongst buyers.Thus, we see that the actual transformation brought in by increasing digital presence in the real estate industry is to increase transparency and improve confidence amongst buyers. This has in turn allowed for a greater organization of the sector. Real estate brokers are now no longer regional players but can scale their operations with considerably decreased costs. For the buyers, there is a greater sense of security in real estate transaction. They have greater access to information which in turn provides them a clearer picture of the property in question and the sellers on hand. For the sellers, the new digital age has opened up new market avenues hereto non-existent. Wider scope, better targeting and improved conversions have helped bottom lines.In conclusion, digital transformation has been a holistic and all-encompassing phenomenon that has helped each one of the stakeholders in the telephone systems chain.