Current Time: Friday noon.
Current Location: Your workplace
Your boss calls you to his office, interrupting your daydreaming about finally seeing some open houses this weekend and starting to network with agents.
You know your company has been struggling over the last month or two, but never thought too much of it. “I’ll be long gone…”, you always said.
You walk in. Your boss is sitting at her desk. There are two chairs on the other side of the table. One of them is occupied by someone from HR.
Cold sweat starts dripping down your back. Your heart is pounding. Your mouth goes dry. And before they even say a word, you know where this is going.
“I’m sorry, but I’m afraid I have to let you go.”
You wrap up the call, and bravely take the walk of shame back to your desk.
Your head is pounding… “Now what? Now what?”.
You pack your things… “Now what? Now what?”.
You drive home… “Now what? Now what?”.
You tell your spouse…“Now what? Now what?”.
Seriously Though, Now What?
If you’ve read to this point, it’s safe to assume two things:
- You either still have a day job, or are currently looking for one
- You dream about being a full time property investor, being your own boss, and having the freedom to live life on your own terms.
You can’t stand your 9-to-5 anymore. Just thinking about it stresses you out. But you still haven’t made it. You’re trading your time for money, hoping your time doesn’t run out before you create your exit plan.
But What If You Found Yourself Without A Job Tomorrow With Only Two Months Worth Of Savings?
Is it possible to build a successful property portfolio in those two months, instead of spending them job hunting?
Could you actually build a property business that quickly?
That’s what I set out to find. So I presented this exact question to six property experts I value highly. I asked them:
Say, what would you advise someone who’s about to be laid off, only has a couple months worth of savings (if that), and wants to use this as their opportunity to transition into a full time property investor, instead of finding yet another 9-to-5?’
Ready for some answers and inspiration? Here we go:
(Responses are listed in the order they were received. Oh, and dear Mr. Shane Hiscock, if you’re reading – thanks for keeping us all waiting!… (Just kidding, I know I said I need it by Friday – silly me!)
#1 Brendon Ansell (Velocity Group)
“If you truly genuinely want to be successful at property the answer is to go for it.
However, you have to have the appropriate knowledge and mindset so, if you don’t then you need to hustle and get it fast.
The stick (rather than carrot) is a great motivator in this situation as you have no other choice. The timing will never be 100% right to make the leap of faith so you may as well do it now.
The disclaimer I put here though is, it also depends on your situation – if your kids are starving because of you having a go at becoming a full time property investor then that would be irresponsible so understand that to be great at anything requires sacrifice and you need to understand other parts of your life will suffer.
To give it 100% balance is not the key initially , that can come later when you are wealthy.”
#2 Graeme Jarry (Q2 Development Pty Ltd)
“Knowing what I know now, I would recommend they find a good mentor.
One that is active in the market and do everything they tell you to whether you want to or not.
I credit my success to having great mentor that showed me what to do. Model the people that have what it is that you want or want to be. Develop a can do attitude and just keep following their advice because there will be ups and downs.
Stay motivated and mix with other successful investors/developers.
Be generous. What do I mean by that? I have found being generous with my information and time pays me back ten fold.
Never give up, even when you feel like it, just keep doing what you have learned to do.
Finding deals is a numbers game, look at more houses, put in more offers until you secure that property. You really do make your money when you buy so don’t buy on emotion.
I would also suggest you become an area expert, that one tip will continue to pay you over and over years down the track and all it takes is some time and a little effort.
I wish you all the success and believe you can and watch your thoughts. Your thoughts become your reality.”
#3 Daryl Rae
“If your intention is to go into property full-time (this is not financial advice):
Point 1 – It is hard to obtain more money/finance when you are not employed, unless you take on Business partners and/or Investors as I have done with some projects.
Before leaving your job, refinance any properties you have equity in, set up an offset account and put the extra amount of money in the offset account or set up a line of credit on properties that have equity available.
I prefer the offset accounts it gives a bit more flexibility putting money back in and still having access to it, with all the interest claimable.
Only do this if you are really disciplined with money.
Never rush in on a deal, unless you know it’s a bargain and you know the area and all the pitfalls with that property. You can lose a lot of money rushing in.
Point 2 – Talk to like minded investors and have a great Mentor/s (someone who is doing what you want to do or teaching others to achieve it).
You will learn a lot from others and maybe even team up with them, if you do not have the knowledge yet. Or team up with someone who has the serviceability but not the time or knowledge to do a deal if you have the knowledge.
Point 3 – Set up structures, such as Company as a trustee and Discretionary Trust and or Unit Trust. This is to protect yourself from being sued and you can distribute income to where it is needed.”[opt_in_box title=”Need To Set Up A Property Business Fast?”][opt_in_box_text]If you need to set up a property business fast the Ultimate Property Hub Membership Site will be a gift sent from heaven for you!
With training videos made by Australia’s top investors and professionals, you can learn all aspects of the business – from finding deals to legal structures to accounting to negotiating – for less than a cup of coffee a day! [/opt_in_box_text][opt_in_box_link]Get Access To the Ultimate Property Hub today![/opt_in_box_link][/opt_in_box]
#4 Jason Marianoff (Awakening Abundance)
“Here is a summary of what I’d advise them (as if I’m speaking directly to them):
Firstly, if you have any existing debts, whilst still employed I recommend you refinance/consolidate at the lowest available interest rate and release any available equity.
Money is time, so having extra funds on-hand extends your time freedom.
To profit from property without your own borrowing capacity, I recommend focusing your time and energy on finding: (a) Prospective Buyers; (b) A Money Partner; and (c) Flexible Sellers.
Specifically, identify Prospective Buyers who are keen to buy, able to clearly describe what they want and financially ready to commit when the right property is presented to them.
In its simplest form, you could look for suitable properties and offer them “as is” in exchange for a finder’s fee. This alone could create a new income stream and will almost certainly lead to additional opportunities.
For example, when you locate a property with excellent potential to add value, it may be worthwhile teaming up with a Money Partner. They could purchase the property and fund the project’s expenses, either for a fixed-interest return, or on a profit-share basis upon sale.
Another approach is to look for Flexible Sellers who aren’t in a hurry to sell (or might even be open to profit-sharing with you, if you can assist them with your time and/or money to add value to their property).
As the first step, negotiate an option to buy their property so you retain control when it’s time to sell. To minimise the risk, ensure you negotiate in advance a sufficient time frame and realistic price that represents a win-win outcome for both yourself and the seller.
Take action every day and be especially open to having conversations with new and existing contacts who may match any of the roles mentioned above.
Above all else, remember this:
It’s not just about adding value to property, it’s about adding value and providing solutions to people.”
By keeping this in mind, you create the foundation to profit in a sustainable way and feel wonderful in the process.”
#5 Leon Weber
If it was me, I personally would try to make the most of my situation by speaking to my broker whilst still employed and make sure I’ve optimised my current loan structures and ability to access equity in any existing property.
Keeping in mind that those funds are to be used for investment (not spending).
I’d also make every effort to educate myself as to exactly the sort of deal I’d be willing to involved with as a time partner.
I’d get involved in networking groups and speak with friends and family with cash/serviceability to get the ball rolling on setting up potential JV’s.
And then have a long hard think about whether I’m willing to stretch out pay days, or go straight for small cashflow acquisitions.
Then work my butt off!
#6 Shane Hiscock
Great question and the answer, as always is, it depends.
It depends on:
- The skill level of the person;
- How comfortable you are with risk?
- How well they can keep their emotions in check when you are under what can be an immense level of pressure?
- And, very importantly, it depends on your life situation.
Are you married or single? Do you have children? What commitments do you need to keep?
As you can see, this really is like opening up a can of worms.
All of these things and many more can factor into the situation, let me explain.
If we are talking about someone who has a high level of skill, calm head, an ability to remain focused under pressure and who has a great network and already has built up property skills and has a supportive partner (this one is critical) then I’d suggest go for it, give things a go.
Set some goals, make a plan and stick to it, know your drop dead date and have a backup plan.
If however, you are the kind of person who gets really stressed easily, your partner is not overly keen on your newfound passion and is also nervous then maybe you need to keep things in perspective and consider how well you will perform and remain focused.
It might be better for this kind of person to possibly take up a role that is less stressful for them while they continue to build up their knowledge and skills in the property space, as well as building up a larger amount of buffer funds to allow them to leave their full time job with less stress.
Of course there are then many variants in between. I think that some of the real keys in this situation are:
- Having a high level of awareness of yourself. With this you can understand what you can and cannot do, you know your strengths and weaknesses and you can tailor your approach to suit.
- Make a plan. If you do intend to make the move to full time in property then what is your plan. How will you earn money before you run out? What are the various approaches and options you can explore. Create a criteria for what it is you need to work on.For example, part of your criteria would be that anything you do has to make you money prior to you running out of funds, so its no use for you go look at deals or undertake any activity that won’t do that for you.
- Get buy in from your partner or spouse. You need to work as a team, it’s too hard to do it on your own and it would be especially hard if your significant other is there saying “I told you so” when things go wrong instead of being your biggest supporter and egging you on. Plus, they can be your accountability partner.
Those would be my three key focus areas. Hope that helps and good luck.”
Here are the top eight tips from our smart, savvy, (and mostly prompt) experts, and some resources you can use TODAY so you never need to find yourself in a pinch…
- #1: Invest in Property Investment Education/Skill set (4 mentions)
- #2: Network with other investors (4 mentions)
- #3: Invest in Mindset and Self awareness (4 mentions)
- #4: Look For Investment Partners (3 mentions)
- #5: Optimise Your Access To Loans (2 mentions)
- #6: Create Other Income Streams (2 mentions)
- #7: Find a Mentor (2 mentions)
- #8: Analyse Current Life Scenario (2 mentions)
(And may I also add two things?
- How about a ninth tip? Here’s mine: Get access to the Ultimate Property Hub Membership Site…NOW! It was made EXACTLY to answer this very question!
- While Shane took his time in responding, he definitely DELIVERED! Thanks Shane, I forgive you for making us late. And thanks to all the experts for taking the time to help the Property Resource Shop community!
What’s Your Tip?
If you already built your property business, or at least completed your first project… what are a few tips you could share with a reader who needs to make things happen… fast?
I’m dying to hear!