“Can you quit your job with real estate?”
Many people all over Canada and the United States and across the world have the dream of quitting their job and going into real estate investing or maybe being their own boss, travelling the world, having a laptop lifestyle, being an entrepreneur. Here’s the thing, guys, I quit my job 3 times in my life, and 2 times I had to go back. The third time I have been gainfully unemployed for the last, I believe 5 or 6 years right now. It’s beautiful to not have a job, not have, in Canada what we call it a T4. In America they call it a W2. It’s beautiful to not have a job and being able to quit.
Now here’s what you need to quit your job with real estate. I’m going to teach you something very important about real estate and that is people get in and out of real estate for the same reason. Everybody gets in for cash flow, and everybody gets out for cash flow. Cash flow is the name of the game in real estate, and if you want to be in real estate, you need to have cash flow. If you want to get out of real estate, you need cash flow. I have a little bit of an advantage when I quit my job for real estate. Many people don’t have this. I did 2 deals at the beginning of my career. Both were buy and hold deals, and the cash flow was so big that it covered my expenses. Now when I started, I was young. I was 22, 23 years old, and my monthly expenses … Actually my monthly expenses are still very low. I’m a single guy. My personal expenses are around 1,600 a month. My personal expenses, so I live on not a whole lot of money. I’m a pretty simple guy. I buy some bananas. I buy some oranges. I live in a house that has a rental suite. It subsidizes where I live, which is great.
If you want to be an entrepreneur, you got to have your expenses low. This is a single guy. This is me. Maybe you have a family of 4. Maybe your expense are 4 times this. Maybe it’s 3,200 for 2 people. Maybe it’s 7,400 for 4 people. Maybe you have some multiplier this, but I’m just going to give you my situation when I first go out of the rat race. Now, my expenses were 1,600 a month, and I did a property that was so big the income from the property was 2,000 dollars a month.
Now right there, I don’t need to work at a job anymore, because my income, whether I’m working or not, is 400 a month, cash flow. Whether I sit around and play video games all day or go out and work and make more money, my overhead is covered. Now being an entrepreneur, I’ve been doing this for 5 or 6 years, full-time entrepreneur, the beautiful thing is I don’t need to make money. My personal situation is covered. Out of these expenses my car is covered. My house is covered. My food is covered. The basic insurance, basic things I need to live are covered. That was all from 2 deals that I did right at the beginning that made me an income, a cash flow income, of 2,000 dollars a month.
Now if you want to do something like this, you need to learn a few skills. I needed to invest at first in my education, because here’s the thing, guys. There’s no such thing as something for nothing in the world. If you’re looking at this and saying, “Wow, I would like to make 2,000 dollars a month passive income or maybe 10,000 or 20,000 dollars a month passive income,” it’s all the same. It’s all the same idea. If you want to do this kind of thing, you need to be educated, because if you’re not doing it now, it means you don’t have enough education. Number 1, you need some education.
Number 2, you need probably a coach or a mentor to teach you how to do this. It’s one thing to have education. I have read many books on real estate. I have a huge bookshelf in the other room full of books I’ve read. I’ve also written a couple books on real estate. Education courses, books, this is great, but it’s not enough. You also need a coach or a mentor to push you through the barrier of fear into what you actually want.
The last thing, you’re going to have to build a real estate business. That’s really what this is. This is a business, and this supports my travelling around in the world. Now this is not all the money I make, but this is just at the very beginning. When I first got out of my job and into full-time real estate, this is the base and this is the basics. Once you have this covered, your passive income, you don’t need to have a job anymore.
Let’s do it one more way before we go. Let’s say we want to not do cash flow properties. Lets say we do flip properties. Now if we want to flip and get out of our job, that’s arguably just as easy or maybe easier. If we want to flip properties, if you make let’s say 15,000 per flip, profit to you, and let’s say most people … I’m from Winnipeg. The average person in Winnipeg makes 35,000 dollars per year. If you want to replace your income if you did 3 flips, you’d be making 45,000 dollars per year doing full-time flipping of real estate. That’d be 15,000 times 3. If we did 3 a year, that’s 45,000 dollars. Now this might seem kind of difficult, or maybe it’s hard to wrap your brain around it, but I have students that are doing 20 flips a year. I have some students that do 4 a year. I have some that do 6. I have some that do 8 or 10 or 15. Myself, when my flipping business was running at full force, we were doing between 20 and 30 a year.
This type of strategy is another way to get out of your job quickly, but at the end of the day, what I like to do as an entrepreneur is I like to have this kind of income, plus I like to have the passive income on the side. Then I also like to have over here multiple streams of income from other businesses. That’s what’s kept me out of a job for the last 5, 6 years and will keep me out of a job for the rest of my life. I’m going to be alive for 71 more years, actually 70 and a half more years. Plan to be 100. These 3 things, flipping real estate, passive income through real estate, and other multiple streams of income will keep me from ever having a job again.
That’s the answer. Can you quit your job with real estate? The answer is yes. I’m Stefan Aarnio. If you guys want to know more about this, go on to SelfMadeConfessions.com. Pick up a copy of my book, Self Made, and learn how I did it. As always like and share this blog posts and leave your questions in the comments below.