Do you have big dreams for your real estate business? Have you ever wondered if it’s possible for you to quit your day job years (or even decades) earlier than your peers and go into real estate full time? While we don’t have room to explain in detail how to get there, we can tell you that yes, it really is possible—and we can give you some excellent tips for getting started.
What Does It Mean to Retire Early?
In this article, we define retiring as “replacing your day job income with real estate income.” While you’ll still have a certain amount of duties associated with owning properties, you can set up passive income streams, outsource as many of the real estate tasks as you want, and still make a good income. You’ll be free to travel, enjoy your hobbies, and experience life to the fullest!
Many Hardworking Investors Have Succeeded!
A quick Internet search will reveal several bloggers who succeeded in retiring from their day jobs in their 50s, 40s, 30s, or even 20s with the help of real estate!
Remember, It’s Not Risk Free
While the aforementioned bloggers have great success stories, remember that early retirement through real estate is not without risk. Unexpected expenses, vacant properties, and other problems can throw a wrench in your plans to retire early. To remain financially stable without having a day job, you will definitely need knowledge and expertise, a great business plan, good help (think property managers, contractors, financial professionals) and a pinch of luck.
What to Expect for a Timeframe
This depends on a few things: how much cashflow you already have from properties, how well your local housing market is doing, and how much time and energy you’re able to devote to this goal. The timeframe will likely be in the range of 5-10 years, or less if you’re already well along in your real estate investing journey. It won’t happen overnight, but retirement in 5-10 years sounds pretty good if you weren’t expecting to retire for a couple more decades!
Tips for Planning an Early Retirement
- Know you will have to work HARD upfront.
When you plan to retire early, you’ll need to save that rest and relaxation for the coming years. For now, you will have to focus on real estate and work aggressively to set up your REI business. This includes long hours, trial and error, and some risk.
- Learn as much as you can, as fast as you can.
When you educate yourself in all the details of REI, you vastly reduce the amount of trial and error and you set yourself up for success on even the riskiest endeavors. Read books and articles, listen to podcasts, and get a great mentor to help you learn as much as you can in the first year or two.
- Get through the beginning stages and it’s much easier after that.
The first few years will be tough, but after that, you get into a groove and you will really feel that you’re closer to success. And a few short years after that, you’ll be relaxing and vacationing with the knowledge that your rental properties are bringing in enough passive income to support you—no day job necessary!
There are other resources out there that provide more detailed roadmaps and strategies for building your REI business to the point where you can retire on a passive real estate income. Hopefully, you now have a better idea of how to get started!