How to Go From Full-time Employment to Full-time in Property in 11 Vital Steps

Unless wealth is inherited, all budding property investors start from the same place: in full-time employment, dreaming of having enough rental income to retire early, or go full-time into the property industry.

If you have enough income through property, then you have choice. The choice not to set your alarm in the morning. The choice to travel, or the choice to put your full focus on your property portfolio and grow your wealth.

This blog is for the nine-to-fivers, the ‘tradies’ on the tools, and all those in-between who are reliant on an employer for a wage, and are looking to carve their own way in life.

In this article, we are going to show you how you can build a property portfolio when you have limited hours and eventually generate enough cash flow that you can leave your job and live life on your terms.

Step One: Write Down Your Dreams

Before you rush to hand in your notice, it’s important to think about what your goals are. If you enjoy your job and have a nice income, you might not want to leave in a hurry.

Maybe, instead of exiting your role, your priority is to build a ‘retirement pot’, or to have a portfolio to leave to your loved ones.

It’s important to think about this because the outcome you’re striving for will drastically change the way you invest, the strategies you invest in, and the amount of capital you’ll need access to.

Have fun with this exercise. Draw out your dream life. Write down every goal you have, whether it’s a family that’s financially secure or a lifetime of travel.

Step Two: Set Your Finance Targets

Now you know what you’re aiming for you need to work out how much it’s going to cost.

For example, let’s say your goal is to replace your income. If you’re on £2,500 a month, then that might translate to 1-2 houses in multiple occupation (HMOs). Or, if you’re more interested in owning holiday lets, you might choose to invest in a few of these instead.

Replacing your income means you need cash flow, so the buy-to-let (BTL) strategy might not be the best option for you in the short term. If you’re making £250 a month profit from one BTL, you’re going to need up to 10 houses to replace your income entirely!

Work out how much income you need to leave your job. That might mean taking a hit and living below your means for a little while.

Then, work out how many houses that translates to. For example, one HMO or five buy-to-lets. Finally, calculate how much capital you’re going to need to purchase these properties. Base your figures on a 25% deposit and account for stamp duty, legal fees, refurbishment and all other associated costs. For a full breakdown of how much it costs to buy a house, check out our blog here.

Step Three: Choose Your Strategy

There are countless ways to invest in property, and each strategy offers its own unique benefits and drawbacks.

As we mentioned in step two, serviced accommodation (SA), also known as holiday lets, can provide high cash flow. The flip side to that is that they are a lot of work to manage.

Buy-to-let offers less income but requires less work and is more ‘hands-off’.

This is why understanding your goals is so important. They will guide the rest of your decisions.

We have created a separate blog on the different investment strategies and the pros and cons of each one. You can read this guide by clicking here.

It is ideal to know what investment strategy you want to use before moving on to the next step. This way, you can find experts who specialise in what you want to do.

Step Four: Get Educated

There are intricacies to investing in property. You need to know how to find the right area to invest in and what a good investment opportunity looks like.

You also need to understand the legalities behind being a landlord and your responsibilities.

On top of this, you should have a clear understanding of tax laws. For example, knowing the most tax-efficient way to pass your portfolio to your children, if that’s your plan.

There are mentors and training programmes out there. Some of these can cost a pretty penny, but if you’re starting with no knowledge or experience, then expert guidance is worth its weight in gold.

If you’re not sure what strategy you want to invest in, then this step will also help you to gain some clarity.

Even if you don’t spend money on education, spend time with the right people instead. At the very least, grab a coffee with a good accountant, mortgage broker, letting agent and solicitor. You’re going to need their expertise, and they might just become valuable members of your team.

Step Five: Find Your Funds

There is more than one way to fund a property purchase. For example, you can use your own funds, get bridging finance, or use someone else’s capital. Using someone else’s money is also known as using private finance. In return for their loan, the investor might get a set interest rate until they’re paid back (normally after you refinance the purchased property) or shared ownership of the investment.

You need to seek expert financial advice before you make any kind of decision like this. Most training providers (like we mentioned in the step above) will cover this in their programmes.

Step Six: Organise Your Time

If you’re in full-time employment, then your biggest enemy is time. Time to find property deals online, view them, crunch the figures, make offers and, eventually, complete on the sales…and that’s all before managing your tenants!

If time is a limited resource, then work smart. And yes, in the early days, you will also need to work hard. That means conducting viewings in your spare time, either before or after work. You’ll also need to free up your Saturdays to view even more properties.

Be clever when booking your viewings. If you’re viewing multiple houses in the same area, then try and get them back-to-back to squeeze in as many as you can. If you’re savvy, you can view 4-5 properties on a Saturday morning.

Set up alerts on property portals, and make sure that every estate agent in your area is aware of your investment criteria. This way, you’ll be alerted to opportunities the moment they hit the market.

Get up early, call agents on your lunch break and organise viewings/crunch numbers in the evening. Work hard, work smart, and you’ll be on your way to securing your next deal in no time!

Step Seven: Create Systems and Processes

The deal always comes from the follow-up. When you make an offer on a property, it’s never a “no” from the owner. It’s a “no for now”. If someone has an unrealistic expectation of their home’s value, then the market will reveal the truth to them. In a few months, if they still haven’t sold or if they’ve had a sale fall through, they might be more open to negotiation.

But the art of the follow-up isn’t a matter of skill. It’s a matter of having systems and processes in place. Systems that work in the background while you’re making money in your day job.

There are CRM systems that you can put potential property deals into. These CRMs will set an automatic alert for a few weeks or months to remind you to follow up on your previous offer.

If you have a bigger budget, then you can hire virtual assistants who will analyse properties and book viewings, if they match your criteria. This saves you an abundance of time, meaning you can focus on the important things, like negotiating and following up on offers.

Step Eight: Partner With the Right People

If you have the money to invest and time is your only restraining factor, then there are some easy solutions.

Number one is to partner up with someone who has the time but not the money. They can conduct viewings during the day, and you can pay them for their time. Or you might decide to joint venture with the person, investing in the project together, where you put in most of the capital, and they do the heavy lifting.

If you do this, ensure you trust the person and seek professional legal advice in advance.

There are also property sourcers. Property sourcers look for investment properties, negotiate the purchase price and then sell the opportunity to investors in return for a fee. This is normally a few thousand pounds or a small percentage of the property’s value.

If you use a sourcer, ensure they are credible, experienced and fully compliant. Protect yourself and your finances.

Step Nine: Build a Power Team

The property purchasing process is only as seamless as the team you use. This is why you need reliable professionals who can help you in your journey.

This team should include, but is not limited to:
– A mortgage or finance broker
– A conveyancing solicitor
– An accountant
– A letting agent or property manager
– Reliable tradespeople/ a builder

You won’t need a letting agent or property manager until after the sale. However, these professionals will play a vital role in finding tenants and managing their tenancy. If you’re in full-time employment, then you’re going to want them to take care of all of this so you can focus on finding your next opportunity.

Step Ten: Grow Your Network

Attend local property networking events and meetups. Most of these take place in the evening. If you work nightshifts, then there are usually a few daytime dinners too, especially in larger cities.

Growing your network will allow you to find people who have the experience you lack. People who can help you in your journey and provide advice.

These events will also double up as a way of finding reliable service providers, like sourcers, who you can use in your new property venture.

Who knows, you might even find a homeowner looking for a sale, or a landlord who would be happy to offload one of their properties.

Networking events are a hub of opportunity and useful contacts, so if you can, visit one near you and see what you think.

Step Eleven: Take the Leap

With all your ducks in a row, it’s time to finally take the plunge. If all goes well, you will hit a day when you have sufficient income to leave your job. On that day, the transition might be harder than you expect.

Going from a steady income and a secure job to relying on yourself is a big move for anyone. Even if you have everything in place, you might still feel hesitant.

But when you feel ready, take the leap and embrace your dreams. But, before you do, ensure you seek relevant financial advice and visit an accountant. Don’t take unnecessary risks, and ensure you are 100% secure before leaving your job.

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* Please note that the content contained in this article is not financial advice, nor should It be treated as financial advice. We are not financial professionals, and you should always seek the advice of FCA-registered and accredited professionals before making any financial decision*