How to transition from a regular job to investing

You work hard (at your day job) then you go home and work hard on your investing.

Nights, weekends, whatever it takes. When you are further along the line you may be able to go part-time or leave your day job but in the meantime be prepared to put some overtime in.

Hi Peter,

I just spent 6 months back in Australia helping my friend fully transition. If you email or PM, I could put you in touch with my mate and you can call him direct.

So I just went cold turkey on work about 2008/2009.

My friend was having a bit more of a challenge. B read so much Steve M, and Investing stuff. He really wanted to have a 'safe' passive income bigger than what his current salary was.

I spotted or partnered with him. Financially and Psychologically. It like being at the Gym. I saw him trying to lift some heavy stuff and even though he is a big boy, I went to back him up. And I did, with my full focus and in the end some deposit money as well. It worked well and he had the extra confidence and cash to close more Vendor Finance deals. Cash Flow is now coming and he is on his way. His income is not fully replaced yet, but he has left the workforce. He spent years studying. However it wasn't untill he pulled his finger out and got serious that progress really started. I think it also helped when I arrived at his regional town, fresh off the plane from China saying come on! Having a network of winners certainly helps.

Another friend M, went on a big buying hunt for big cashflow in his last months of work. He had bought a couple of properties. However if he went hard, early retirement was/is on the cards. M bought a big reno project on Gold Coast, and did well with it. He had a couple of months paid leave/redundance pay and in that time did a quick (but big reno). Before finishing reno he was offered and took another work contract but its in WA.

M and I don't do any coaching work together. He is more on his own just reading books and blogs. he is struggling a bit with Stress and managing everything solo. Despite having much more cash and cash flow then my other friend. He could retire now, however he comes from a 'safe' environment.

The guys above me here all through your post, know the Finance game and give great advice. Don't forget the psychological side of the house as well. Thats what really makes the differnce. The desire to succeed and make that transition successfully. And why do you want to make that transition. Perhaps make a dream map, or some goals about what is going to be on the other side of the Transition.

I firmly believe that:

Retiring early is easier then ever,  

If we don't have the resources or knowledge to do it, perhaps we can find someone that does.

The other option is to work part time and take leave when renovating, so you can effectively spend your time wisely with getting each project done as quickly as possible. The key is balancing serviceability with your investment plan. If you go hard early and commit to each 100%, you will be able to take it easier much sooner.

Johann what time do you go to bed? You make sleep sound so over rated!

Same – but I'd like more……my 11 months old doesn't think I need it though.

Cheers

Jamie

My biggest question has and still is: where does the deposit for the next property come from? I understand cash is king, whether it be from a vendor finance or a simple cash flow positive property. But the banks won't lend unless you have that 10-20% deposit.

If I'm building a portfolio with simple cash flow positive properties I don't have someone else chipping in to make the deal work. Is it simply a matter of hanging tight until the CF+ builds up enough combined with the equity of the already existing properties for that next property? This just seems a long way off my traditional understanding of purchasing 1 property a year.

Cheers Benny, that's what I was afraid you were going to say!

Jamie, you're a genius. You've planted the seed in my head that I will be able to reno places full time if my wife returns to work. I'd have to deal with the kids and home chores etc as well, but that's a small price to pay if this can help propel my portfolio at a faster rate.