Moving into property full time
Moving into property full time.
Most people I know with a property business started whilst they were still working their “day job.” In many ways this seems like a sensible approach to manage the risk of your new venture faltering and providing a much needed regular payslip whilst you get your fledgling property business off the ground. That said I have also met a number of people who have handed in their notice and started their property journey from scratch, motivated by the need to achieve quickly given that they are no longer employed.
There is no right or wrong answer and it will depend entirely on the individual and their circumstances but I think my preference is to start building your property business, ensure the model works and that you enjoy what you are creating before you make that call to your Boss. Furthermore, the recent advent of more flexible working by most employers must mean that it is easier than ever before to be able to work and develop a property portfolio.
If you are hoping to create a portfolio of a handful of properties then arguably, once they are set up, it isn’t really a full time role. Would you be bored if you had more time on your hands or is that what you dream of? You need to be clear in your mind as to what you are wanting to achieve.
An alternative is to find a job which could augment your property business whilst still providing you with a monthly wage. Many property folk I know got their experience and knowledge through their former employment at letting agents, architects firms, planning offices or working at a builders merchants or even on site. Such positions will give you knowledge and experience in negotiation, legislation, design and materials as well as giving you access to those who are established in the industry. It is an incredible thought that you can get paid whilst amassing all this knowledge and experience and it will doubtless assist you in your property journey.
In addition you should undertake private reading of trade journals or reports of court cases to improve your knowledge of the legislation and best practice within which your property business will operate.
Remember it is your knowledge, experience and skill that you will ultimately monetise and so ensure that all the experiences you achieve on the way are relevant to augmenting that skill set. I studied surveying at University and then worked as an Estate Agent for almost 20 years before selling my Estate Agency and moving into Building Surveying. I gained experience of property, dealing with people, managing tenancies, running a business, doing property deals and meeting all of those in the industry whilst I was working and growing my portfolio. Whilst my property portfolio is a success, I found that I also loved my day job and so I continue to this day to do both!
Bear in mind if you are planning on working whilst developing a property portfolio it will pay you dividends if you can get systems set up so that the management of that portfolio is as seamless as possible as with these two roles you are likely to be time poor, at least in the early years. Outsourcing to a managing agent or adopting property management and accounting software could be beneficial and you will want to ensure that your properties are in good order and attract quality tenants to reduce the intensity of the management service you will otherwise have to provide.
Another clear advantage of working whilst you are developing your business is that you should be able to reinvest a greater proportion of the income from your new business than would otherwise be the case as you will still be in employment. This may allow your property business to grow faster or certainly become more resilient quicker than would otherwise be the case. It is also possibly the case that raising finance is easier whilst still employed, which should also assist in the growth of your new business.
I cannot advise you as to what is the best method for you. What I can assure you of is that the hard work and dedication will ultimately pay significant dividends and you are likely to create an enjoyable and lucrative business. As someone once said…”Spend a few years doing what most people won’t in order to live like most people can’t”
Please therefore make your decision in terms of how you are going to create your property business and start today!Back