Depending on your interests, real estate has many opportunities to create lucrative side gigs. Whether you’re interested in finance, marketing, sales, investing or entrepreneurship, the many facets of this business are great ways to make additional income on your own time. For the creative individual, developing a real estate niche really boils down to identifying a need and then marketing to that client base. All of this begins after deciding what it is you want to do and how invested you would like to be. While some are interested in starting a new and profitable career, others may just want a quicker way to pick-up a few extra bucks. It’s up to you. Here’s a few ways to create income with real estate.
Investor
Real estate investing can be a “high-risk, high-reward” proposition, requiring substantial capital to get started. Capital is wealth in the form of money or other assets owned by a person or business, contributed for a particular purpose. Many investors mainly use capital from personal savings or acquire loans from lending institutions in order to raise funds for a particular investment. The major risk associated with investing, involves the expenditure of money and time in order to be successful. Savvy investors take significant time to consider new projects, devoting hours to research, financial planning, as well as, cultivating a thorough understanding of the relational effects of their investments – what some call “knowing the market.” If it sounds like you need a Masters in Business Administration (MBA) to become a great investor, you don’t. Still, investing does require a long-term commitment and a higher level understanding of the real estate business. In short, investing as a “side gig” should only be considered for those willing to put in time and those with the ability to finance projects while accepting all the associated risks.
Landlord
Becoming a landlord is a great way to make an investment work for you. As the owner of a residential property, renting to tenants is a steady source of income with a few important considerations. Some jurisdictions require landlords to have a business license in order to operate. The purpose of the business license is to ensure that your home complies with housing regulations before making it available to tenants. Still, this requirement varies from state-to-state. Visit your state’s business or licensing commission for more information. If you don’t mind sharing your home and you understand all the legalities associated with land lording (leases, maintenance, tenants’ rights, etc.) this option will definitely work for you.
Property Manager
A Property Manager oversees property matters on behalf of the property owner. Property Managers are knowledgeable and usually have significant experience in office management, customer service, and finance – mainly because their work encompasses a broad scope of duties. Responsibilities usually include: facilitating maintenance work orders, paying the bills, collecting rent and addressing most tenant related issues. Some jurisdictions require property managers to obtain a license in order to work in this capacity. Please check the requirements for your jurisdiction.
Real Estate Agent
All Real Estate Agents must be licensed. Agents help facilitate the purchase and sale of real estate under a licensed Broker. Real Estate agents are paid based on commission and may also be paid a referral fee for some transactions with other agents. Most agents work as independent contractors, meaning they handle their own business affairs for tax purposes. This career choice requires pre-licensing education and continuing education in order to maintain a license to practice.
Project Manager
A project manager ensures that a construction project goes according to plan. These managers usually coordinate the scheduling of contractors and help plan most aspects of a project. Most project managers have extensive knowledge in Construction Management and project coordination. Many employers require experience and recommendations.
Regardless of the career you choose, real estate can be the supplemental career that leads to financial freedom.
