So, if you are a new to Real Estate Note investing or are considering investing in Real Estate Notes full time, please do not quit your job just yet. This is a HUGE decision that impacts you, your family and your future, and you should, better yet…MUST possess a solid understanding of the Real Estate Note investing process, and have a support system around you before moving forward with your big decision.

I’m so grateful I made the leap of faith to pursue my career as a full time Note Investor, but I had some help along the way.  With the right tools to work smarter not harder, I know you can pursue your dreams of firing yourself to become a full time Real Estate Note Investor too!

Are You and Note Investing a Good Fit?

I can’t believe it has been over 3 1/2 years since I took the leap to Real Estate Note investing! As I look back to the early stages of my transition into Notes, working with Joseph Hobbs, my mentor turned business partner, played a huge impact on helping me determine if I had what it took to be successful in the Note investing space.  Keep in mind, I had almost 20 years of experience in real estate investing, and I STILL needed to make sure I was going in the right direction!  I still needed to educate myself and ask the right questions.  Do not skip this step!

So, what do I mean by “helping me determine” if I had what it took?

Out of the gate… I realized this is not an easy business and there is no way to make it less difficult. It truly would require (demand) patience, education, determination, attention to detail and most importantly, ability to think outside the box and to be flexible to arrive at the best outcome. I also realized that Real Estate Note Investing fit every need for me PERSONALLY as an investor, and it had the potential to be very lucrative as well.

Here are the 10 Questions to ask before you quit your job to pursue becoming a full-time Real Estate Note Investor:

1. What am I trying to achieve? Do you want to build a business, replace parts of your portfolio, FIRE YOURSELF from that full time job? Do you want to scale?  Meaning, do you want to make your business grow? What are you trying to achieve? Not with notes…but for your life in general. That is the FIRST question you need to answer. Maybe notes is the answer for you, maybe it’s not.
2. What are your needs (this is highly personal and specific to you)? Do you need to generate chunks of cash, monthly cash flow or both?  Are you looking for short term investments or long term investments? Do you want to invest in your local market, or outside of your local market?  Do you want freedom and flexibility?  Do you want control over the outcome?  Who do you want to rely on for that outcome?  These are questions that are just as important as the first question because it will guide you to the type of investing you should be pursuing to fulfill those needs.
3. Do you have an income goal? How much do you need to earn passively or actively in order to quit your 9-5 job?
4. What is your risk tolerance?  Are you in a position to quit that 9-5 and pursue Real Estate Note Investing?  What do you consider to be a risky investment (this does not even need to be in real estate: how do you feel about the stock market)?
5. Are you a proactive learner? Meaning, are you willing to invest your time to deepen your knowledge of Note investing? This could be through a seminar, coaching program or even through a mentor.
6. Are you dedicated and persistent and patient? As I mentioned previously, this business isn’t easy and will require true dedication and tenacity IF you are going to succeed. ESPECIALLY if you are going to quit your full time job.  I love this quote from Winston Churchill, “Never, Never Give Up.” Highly successful Real Estate Note Investors are also very patient. They can make calculated decisions while keeping their composure under stressful conditions.  Further, Real Estate is not “get rich quick”…it takes time, persistence and patience.
7. Do you learn from your mistakes? Trust me, you will make mistakes, and there is no way to know every aspect of this business ahead of time. The key is to know enough to mitigate your risk, and if you follow the systems, any mistakes you make will likely be minor.  BUT, you must also quickly learn from your mistakes in order to avoid repeating them.
8. What is your role going to be? Should you do this yourself or should you join someone else’s team?  It could be that you don’t yet know enough about the note space to answer these questions. If that’s the case, I would recommend that you go to a note conference and maybe even take a bootcamp. I don’t recommend guru’s – but ~$500+/- for a 2-3 day intensive workshop is money well spent, in my opinion. Understand, it will be like drinking from a firehose but you will get a feel for the industry in a short period of time.  Don’t try to retain it all, because you won’t, and that’s okay.  I would also read everything you can find on Bigger Pockets, You Tube, and through the Cashflow Chick Community.
9. Do you have a support system?  Is there a network of support around you: family, friends, fellow investors, mentors? If not, I strongly urge you to start developing your support system before you up and quit your job.  Go to local REIA meetings, talk to people, listen to podcasts, get involved and be proactive to develop that safety net.
10. And finally, do you have any Real Estate Note investing experience? This business is very different from flipping houses or the rental business. Because you are taking the position of the bank, you’ll need to know the fundamentals of how to source, originate, underwrite, sell your Note…etc. I’d encourage you to start your education and then get your feet wet with maybe 2-5 Notes over a 12 month period (if you can) to really have enough insight to make an educated decision if Real Estate Note Investing is a good fit for you.

In closing…

If you start making more money by working part-time in Real Estate Note Investing than at your 9-5 JOB, then it may be time to take that leap of faith and become a full time Note Investor. But, there is no reason to rush it through–take the time, deepen your understanding of Real Estate Note investing, and have your support system and your systems in place.  THAT is working SMARTER not HARDER, and that is how you fire yourself!

Feel free to check out what training resources you can access when joining the Cashflow Chick Community today!

To your success,