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Perhaps you have asked yourself the question, “do you need a real estate license to do _____?”
Or maybe you just think that the real estate industry is interesting, and want to get experience before you decide if you want to work towards a real estate license.
Don’t worry, you aren’t the only one. The real estate industry is an exciting industry, with plenty of opportunities to make money with or without a license.
However, you also don’t want to involve yourself in an activity that is illegal without a license. There are plenty of areas in real estate that require a certification/license (not just realtors/brokers need training).
Here are some ways to make money in real estate, most of these you don’t need a license (but some you do in certain locations):
Property inspections are important for a wide variety of reasons. One of the main reasons people want a property inspection on a home or another category of real estate is to have a damage assessment.
There are a variety of things that a property inspector needs to learn before they perform a property inspection, but to perform an inspection you do not need a real estate license.
When doing a search on Indeed, I found 27 results for Property Inspector jobs within 25 miles of Minneapolis, Minnesota.
Most property inspector jobs have a flexible schedule and companies will provide training. Typical property inspector jobs require a few qualifications, such as having a High School Diploma (or GED), a reliable car, and a driver’s license.
If you want to become a wholesaler, you will need to become good at finding real estate that is being sold under market value.
Wholesalers will find real estate that could sell for more just as it is and get in touch with the seller. They will then try to make some sort of agreement with the seller. Once wholesalers are under contract, they will find someone who will purchase the contract for a higher price. A wholesaler often makes thousands of dollars per house that they contract.
Please keep in mind that there are some states that see wholesaling as “acting as an agent”. Look up your state's laws before becoming a wholesaler.
Another simple way to make money in real estate without a license is to buy properties and then rent them out. You will need to be good with numbers so that you can figure out what properties you can rent out for a positive cash flow. The last thing that you want is a property that costs more per month than what you can rent it for.
Your monthly mortgage payment- If you take out a loan for the property you are renting, one of the first things you will need to know is how much your monthly mortgage payment will be. This first price point will give you more clarity on whether or not you will make a substantial monthly profit renting the property or not.
Cost of utilities- Utilities can cost hundreds of dollars per month. Finding the average utility cost of a property will help you determine whether or not you cover the cost of the utility bill.
How much you can rent the property for- Do some local research and compare properties for rent and how much they are asking for. You can also look at the local properties for rent and see if they cover utility bills in their monthly rental payments.
Other surprise costs- There are plenty of surprise costs that are associated with renting a property from repairs, maintenance fees to insurance fees. Do your research and be realistic about what you can afford.
There are great options for “side hustling” in a real estate agency. Side hustling is basically extra money that you can make on the side of your regular job.
Here are a few ways to side hustle in the real estate industry:
Freelance your skills- Use your freelancing skills to assist real estate professionals. You could, for example, manage a real estate agent’s blog or take pictures of their newly listed homes.
Bird Dog- A fun way to make some money in real estate is to help real estate investors find people who are willing to sell their homes (some people call this bird dogging).
Become a transaction coordinator- If you don't mind paperwork, you can become a real estate transaction coordinator and deal with the paperwork and deadlines associated with all of the buyer and seller transactions
Be a virtual assistant- With people relying on technology more than ever, the demand for virtual assistance is continuing to grow. You can become a virtual assistant for a real estate agent and make extra money while sitting on the couch.
Honestly, there are so many side hustle opportunities in the real estate realm, it really depends on what you are good at, how much you want to make, and what makes you happy.
Property managing isn't for everyone as it’s a job that comes with a lot of responsibility.
Here are some tasks that property managers are typically responsible for:
Maintenance or a property
Showing the property
Leasing the property
Administrative tasks
Communication in regards to the property
Most property managers end up working for companies that have a multitude of smaller properties such as small duplexes and single-family homes. Some do manage larger properties. Either option can be available depending on what you are interested in and your location.
Unfortunately, some states require you to have a Real Estate Broker license in order to become a property manager. Some states require you to have a property management license and some require no license. You also will need the skills necessary as described above in order to do your job properly and efficiently.
To view each state’s legal guidelines on becoming a property manager, click here.
There are always options to work in real estate; whether or not you are a licensed broker or agent. Whatever you choose to do, it is important to check the laws in your state in ensuring that you can be a professional in that industry.