BiggerPockets Legit or Quit: Should You Quit Your Job for Real Estate?

TL;DR

You should weigh your current income and goals before quitting a job for real estate, and the hosts disagree on whether Brandon should leave his six-figure role. One recommends collecting plentiful overtime while learning what comes next; another argues that Brandon could probably return if the move fails. Richie is mostly advised to focus on investing instead of getting licensed. Read on for the reasoning behind each recommendation.

Transcript

this is the bigger pockets real estate podcast show too legit or quit hey hi what's going on everyone this is eric producer of the bigger pockets real estate podcast i am hijacking the feed to drop you a bonus recently we covered why winners quit the five factors to leaving a soul-sucking job with david's own mentors episode 648 with tim road and p... Read More

Key Insights

• Brandon's dilemma highlights the challenge of leaving a secure job for potential real estate gains, emphasizing the importance of timing and market conditions.
• Richie's situation underscores the risks associated with obtaining a real estate license, suggesting that direct investment might be more beneficial.
• The episode emphasizes the value of leveraging existing skills and opportunities rather than seeking efficiency in current roles.
• Fear of failure and financial insecurity often prevent individuals from making bold career moves, as discussed in the context of real estate investing.
• Pat and Tim's advice suggests that the potential for higher earnings in real estate can outweigh the security of a traditional job.
• The concept of '2 Legit or Quit' provides a framework for evaluating whether a job is worth the wage or if quitting is a better option.
• Veteran investors stress the importance of understanding market trends and historical data to make informed career decisions.
• The discussion promotes the idea that personal growth often requires stepping out of comfort zones and embracing new challenges.

Questions & Answers

Q: Should you quit your job to pursue real estate?

The discussion does not offer one universal answer. One host advises Brandon to keep earning overtime while learning his next move, while another recommends quitting because he could probably return if real estate does not work out.

Q: Why is Brandon considering leaving his job?

Brandon dislikes his current job and plans to look for work related to real estate. However, his job pays over six figures and currently offers plentiful overtime.

Q: Why is Brandon worried about quitting now?

Brandon thinks starting over at a new company may be foolish in the current economy. He also fears that leaving now could prevent him from capitalizing on the market dip.

Q: Why does one host advise Brandon to keep his job?

The host describes the market as faltering and says this may be a time to observe. Brandon could collect extra overtime, make as much money as possible in his day job, and learn what should come next.

Q: Why does another host tell Brandon to quit?

The host believes Brandon could probably return to employment if the move fails and calls the market a phenomenal time to enter real estate. He also notes that some real estate agents make millions, while a six-figure income is not as significant in California as it once seemed.

Q: What historical mortgage-rate figure is cited in Brandon’s discussion?

One host says the average rate over the last 40 years was 9.25. He uses that comparison to argue that the environment remains good for buying real estate despite how current rates compare with nine months earlier.

Q: Should Richie get a real estate license to support his investing?

Most of the advice presented says Richie should skip the license and focus fully on investing. The hosts argue that licensing could consume time and money, place him under the Department of Real Estate’s oversight, and distract from his goal of investing.

Q: Would a real estate license help Richie find deals and save commissions?

A license might expose Richie to some properties, but one host says he would not see enough additional deals to justify the distraction. The discussion also notes that properties can already be viewed for free through Zillow and similar resources, while becoming an agent requires work before earning a first commission.

Summary & Key Takeaways

• In the episode, experts discuss the challenges of deciding whether to quit a stable job for new opportunities, particularly in real estate. They analyze listener scenarios to provide tailored advice on when quitting might be beneficial.

• Brandon's case highlights the dilemma of leaving a high-paying job for potential real estate gains. The discussion focuses on timing, market conditions, and the potential for long-term growth in real estate.

• Richie's situation explores the pros and cons of obtaining a real estate license. The experts suggest that direct investment might be more beneficial, emphasizing the risks and time commitment associated with licensing.