How Long Should You Stay In The Game?
Many people these days make their living from buying houses, renovating them and selling them at a profit. When you have done it successfully a few times, you will begin to see how the process works and will usually be able to turn your hand successfully to a development – that is, realize the profit you were expecting – at least 7 or 8 times out of ten. If you are doing that, you will be making enough of a profit to live a pretty fine life. That said, does a point ever arise when you have done enough and should take a step back from real estate development?
It could be argued that you should keep doing something for as long as it is working consistently. However, people who argue this seem to miss the point that if something stops working, and you are putting a great deal of money into doing it, that you will lose money every time. Quitting while you are ahead is about quitting before it gets bad, rather than waiting until it does. So when is the best time to take a step back?
Arguably, you should set yourself a goal – if not when you start out, then after the first few efforts. When you hit that amount, you can then retire gratefully to the house you have bought with the combined profits of your previous developments. Maybe you should set yourself a specific age at which you want to retire, and aim to have a good retirement fund built up by then. And always, always watch the financial climate for signs of stormy weather ahead.