There are many different ways to be involved in the real estate business. However, for as much as you may enjoy the business, you may have trouble getting start, or at least require a little assistance. If you are transitioning from a full-time job, you need to bridge the gap until your investing career takes off. Fortunately, there are many different ways to do so. Unlike with real estate investing, many of them require a license or some degree of education. Some of these will yield income quicker than others, but they can all give you a glimpse into different areas of the business. If you are looking to generate income while you are waiting for your investing career to take off, here are five things you can do:
1. Real estate agent: If you plan on being a real estate investor for a while, it makes sense to look inside the industry for income. Getting licensed as a real estate agent is not, easy but it will pay both short and long term dividends. The total cost for the educational requirements, application and license will be anywhere from $500-$1,000. As soon as you pass your test, you can start earning income. Most people think that being a real estate agent means only buying and selling houses. Obviously this is a large chunk of the workload, but there is more to it than that. You can earn a few hundred dollars every broker price opinion (BPO) you complete. You can search for new tenants or landlords and earn with every lease agreement. If you tap into your personal network and let your friends and family know that you are now a licensed real estate agent, you will often get more work than you thought. It is not easy or inexpensive, but a real estate license is the best “side job” you can have as a real estate investor.
2. Wholesaler: You won’t make as much as if you were financing the deal on your own, but wholesaling involves minimal risk. Additionally, you don’t have to wait until the completion of the project to get paid. You can earn as soon as the deal closes, which is often in 30-45 days. An important byproduct of wholesaling is that you will gain experience in sitting down with homeowners and negotiating the best possible deal. You will need to network with fellow investors and find end buyers. This will help your personal investing business take off quicker than it would otherwise.
3. Blogger: Have you been around the real estate business for years? Do you have knowledge in a particular niche or area of the business? Do you enjoy writing, and feel you could be compensated for it? If you answered yes to any of these questions, becoming a paid blogger may be for you. You don’t need a degree in journalism to blog. The internet has made blogging something that anyone with a passion for writing can do. There are a handful of websites where you can find people that will pay you to blog for them. Most blogs are anywhere from 250 to 1,000 words. It doesn’t matter if you come from the auto industry or have spent the last ten years as a mortgage broker. If you know the business and can write about it, there is a way to earn from it.
4. Property manager: If you are handy, organized and understand rental properties, being a property manager may be to your liking. Unlike with getting a real estate license, there are no requirements to become a property manager. You simply need to reach out to landlords and promote yourself. Most property managers get paid an average of 10-15% per month, based on the rents received. You need to find tenants, run the application, organize any repairs, and collect rent and more. Some months you will run around handling many different things. Other months, you will only make a few trips to the property. As long as the property is within your local area and you are confident that you can do most of the work, a property manager role could be for you.
Not generating income during down times is frustrating, and can lead you out of the business if you are not careful. It is important to find ways to generate extra income when you are transitioning to the business or dealing with slow periods.