Epic Real Estate Investing - Before You Quit Your Day Job | 452

Episode Date: August 24, 2018

On this episode of Financial Freedom Friday, learn 5 things to do before you quit your day job. Matt Theriault shares key questions to ask yourself before you quit, how much money you should have saved up, the differences between being an entrepreneur and an employee, and much more! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hi, I'm Matt Terrio. This is the epic real estate investing show. Glad you found us. And today we're going to discuss a few things to consider and do before quitting your day job. And we're doing that right now on this episode of Financial Freedom Friday. Okay, recently, due to the growing successes that we've had here of helping more and more people escape the rat race with real estate, people like Russell and Columbus, Josh and Nebraska, Jill and Pasoacenna, I've introduced you to a lot of them, Jack and Fargo, Catalina and San Pedro, and I mean,

the list is getting bigger and bigger. There are many others. What they've all been able to do is they've all been able to escape the rat race by building enough passive income from their real estate to cover their basic monthly living expenses. And once they got there, quitting the day job was at the top of the list for most of them to do. And if this is your situation or you want it to be, understand that there's a wrong way and a right way to do it.

Because, you know, if you do it wrong, if you get this part wrong, you're going to miss out on some invaluable opportunities, it's going to cost you some money, and or even worse, you're going to find yourself jumping out of that proverbial frying pan into the fire. But if you get it right, escaping the rat race and quitting that 9 to 5 so that you never have to answer to anyone ever again, that can be your reality.

All righty, so before you quit, before you quit the day job, there are some key questions to ask yourself, okay? These are important, the key questions. Like, what about your current situation is really frustrating you? Like, why are you quitting? I mean, pinpointing that issue is the first steps towards solving it. You know, are the people the problem? Is it the environment?

Or is it the work itself? Is it solvable? Or is going out on your own the only solution? I mean, are you at all responsible for those frustrations? You know, if so, acknowledge it, and it's okay, but just keep it in mind not to recreate those frustrations when you're out on your own. Second, are you willing and able to forego benefits like health insurance and retirement contributions? I mean, consider that. I mean, research the cost of purchasing health insurance.

A lot has changed out there, especially if there are others in your family depending on you. And at the very least, make those last doctor and dentist appointments before. you quit. Walk out being healthy with good teeth. Third, have you timed this appropriately? Timing is important. You know, consider the timing of your decision to quit because, you know, firstly, I guess, are you in the midst of, say, the busiest season around your industry or your business? Or are you working on a big project? Because you may want to honor your commitment so that your team isn't left in a bind. And so you're able to leave on good terms. I mean, I'm telling you, it's a small world. You never know where you may cross paths with people again.

and really it's just not cool to break your word and break your commitments. Next, you're going to want to maximize the money. Because if you'd like to get your quarterly bonus or the holiday vacation, it might be smart to wait a few months before you quit. Okay? Next, I want you to walk out with proper expectations. Proper expectations. You know, understand that you've been trained your entire life to be an employee,

who looks for jobs rather than being an entrepreneur who creates jobs and who builds a business. You likely have the skills to be a good employee, but understand that they are not the same skills required to be a good entrepreneur. You know, even with the appropriate entrepreneur skills, many fail to ever build a business. Instead, what they do is they go out and they work hard building a job that they own. They become self-employed. rather than business owners, which is it's okay for a while. It can be pretty good for a while.

As long as you do have your eye on eventually creating a business. Next, most entrepreneurs, they work longer hours and are paid less per hour than their employees. You know, hence, many, they quit out of exhaustion. Most people, when first venturing into the world of entrepreneurship, they don't understand the concept of working for free because you're going to have to do that a lot. They expect to get paid for everything that they do, and it's just not the case. And this expectation is a substantial reason as to why the failure rate is really so high. They continue to think like employees. They want that steady paycheck.

So it's not going to come unless you get good at this. So be prepared to fail. Yet don't look at your failures as failure, but look at them as lessons. Look at failure as opportunities to practice your performance, as opportunities to perfect your technique. Embrace your failures. I understand that you're in the middle of a learning process and it might be a little bumpy in the beginning. And the process, it requires that you make many mistakes and just as long and you just want to make sure that you learn from those mistakes. And the faster that you make those mistakes, the faster you get through the process and you come out on the other side doing well.

Or you can quit and then the process spits you out on the other side not doing so good. Okay? Next, you want to maximize. the money and credit. You want to maximize your money and your credit. You know, if you have a 401k or other money coming to you as you part ways, understand how that payout or transition needs to work before you, you know, you go and goof anything up and you lose out there. Your ability to build your business and your overall wealth,

it's going to be in direct proportion to your ability to access other people's money. You know, inside of the Epic Pro Academy, I demonstrate more than 10 ways to access other people's money for your real estate investing. But the one thing I can't help you with after you have left your job is your ability to access institutional money. That's like really the cheapest money today. So you don't want to count that out. You know, like banks and credit unions and savings and loans and credit cards, all that stuff.

And, you know, because once you're officially out on your own as a real estate entrepreneur, it's going to be some considerable time before banks will consider you for loans. and lines of credit. So before you quit, you're going to want to make an appointment with your local banker or a broker, maybe a few of them. Shop around because you want to see what you qualify for. You know, with regard to purchase loans, you'll want to use as many of those as the banks will approve you for. And you'll have to do that before you quit. It would also make sense to to maximize your credit lines. You know, for example, call up all of your credit card companies. call them up and ask for a credit limit increase and or apply for some new cards.

You know, one of the easier ways to do all of that and really one swoop is to apply at epicfastfunding.com while you're still working. And I'll put it up here. Epicfastfastfunding.com. The credit lines there, they're up to $150,000. They're based off of your credit score and your job income. It's only 60 seconds to apply online and they do the rest, but you can go to Epicfastfunding.com and you want to do that before you quit. Okay? Next is you want to get support from your family and spouse.

Get family support. Get family support. Because quitting your job is going to affect others in your life. So it's critical that you have an honest conversation with your family first. Your spouse or children, they may need to help or at least participate in some of your cost-cutting plans and need to be involved in your new venture from the beginning. You don't want to pull any unnecessary surprises with them. And, you know, a common denominator of past coaching clients that have failed to meet their

expectation, something that they've all had in common, as well as prospective clients for our turnkey investments over at Cashflow Savvy, what they've all had in common is their inability to get on the same page financially with their spouse. It's a big roadblock for a lot of people. And, you know, after at least a hundred of these types of conversations, what I consistently find is, and this is the typical scenario, that taking on a full-time career in real estate investing, this isn't the first attempt that the spouse in question has made at freeing themselves from their job. This isn't the first rodeo.

In fact, this decision has almost always and almost certainly been preceded by many other failed attempts. And what happens is that the other spouse views this. latest idea as just another one of those things. So you want to get on the same page with a spouse and let them know that this is not one of those things. And then you have to follow through. You've got to do your part. So don't quit the day job until you know you're going to do it. Your family, they're depending on you. All right. Next, reserves. You want to save up some reserves. I recommend 12 months. I recommend 12 months. You need some cash in the bank.

You need some security. Use something to fall back on because you might not get the results you're looking for right away. So before you quit, I want you to commit to saving 12 months of reserves in the bank. To not only support you and your family, but also your business. You see, when going out on your own, you're going to have an entirely new set of expenses to consider. Expenses that you've never really had before. And those are called business expenses. All right.

So those are some of the things. I've got five things up here to consider. prior to quitting your day job. And these are the types of things that we cover inside of our REI ACE program. And we've been so successful at freeing people from the rat race over the last, I don't know, the last 18 months, we've had a real shift in our business that I created a wall of fame, so to speak, to celebrate their achievements. And it's my goal for every person that I work with to get them up on this wall. And the story's there. They're pretty extraordinary by most people's standards. But they're becoming more and more ordinary and more and more common.

for us here at Epic. And so you can take a look when it's convenient. I'll put the domain name up here for you. It's wallofprofits.com. Wall ofprofits.com. And whenever you're ready to become the healthy, wealthy beast of an investor that God designed you to be, when you go to wall of profits. com, you'll see there on that wall a few different ways that I can help. But when you're, when you're ready. All righty. So that's it for today. I'll see you next week on the epic real estate investing show for another episode of Financial Freedom Friday. Take care. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.