Despite the doom and gloom that always seems to swirl around the real estate market, the fact remains that people are always going to want to buy, sell, and lease property. And while it seems like it should be a straightforward exercise — Party A has a home to sell, Party B wants to buy it — as anyone who has ever been involved in the sale or purchase of real estate can attest, the process of transferring ownership of real estate is actually far more complex.
And for those who understand the intricacies of real estate and enjoy attending to all of the necessary details, it can be a lucrative enterprise. The average real estate agent earns about $53,000 per year, but according to some experts, the average agent closes on about four properties per year — in other words, they work part time.
The highest paid full-time real estate agents earn up to $200,000 per year, with successful agents in major markets (i.e., New York and Los Angeles) earning well over $1 million per year. Real estate agents work on commission, meaning that they aren’t paid if they don’t do the work, but a far as side gigs go, it’s hard to go wrong with real estate.
In fact, besides the chance to make a full-time salary for part time work, there are a number of other reasons for real estate’s popularity as a second job.
1. Startup Is Comparatively Easier and Less Expensive than Other Businesses
Starting any business requires an investment of time and money, with some easier and cheaper than others are. When compared to the investments required for other businesses, such as retail or food establishments, real estate is a relative bargain.
You’ll need to invest in a licensing course and pass a test, which usually costs a few hundred dollars. Most states require licensed agents to complete continuing education to remain licensed, and agents who wish to take their skills and business to the next level often invest in master’s degree programs in real estate.
However, once you have a license, you can set up shop under the supervision of a broker. In some cases, you must pay a fee to join the brokerage, but usually the only expenses are marketing, such as getting business cards and signs and establishing a website. In most cases, you can be up and running for less than $1,000.
2. Hours are Flexible
On the one hand, real estate is not a 9 to 5 job. On the other hand, well, real estate is not a 9 to 5 job. Many part-time real estate agents find that they can juggle their real estate business while holding down a full time job or managing other responsibilities.
You should expect to be called upon at all hours of the day and on weekends (after all, most people house shop on the weekends) but you don’t necessarily have to put in 40 hours during the typical work week. You do need to be able to handle certain tasks, such as dealing with mortgage companies, during the day, which could mean interrupting your full-time work, but most agents are able to successfully get everything accomplished.
3. Becoming a Real Estate Agent Can Save You Money
Not only can you make money selling real estate, you can save money — and we’re not just talking about the tax deductions that come with working as an independent contractor and owning your own business.
If you have dreams of becoming a real estate investor or property flipper, getting your real estate license can save you thousands of dollars. Instead of paying commissions to other agents to list your properties or represent you when you purchase property, you can do it yourself. Some agents report saving close to $100,000 in commissions when handling their own sales — money that they were able to put back into their successful business.
4. Working Part Time Helps You Get Started
Depending on your market and your existing network of contacts, selling your first property can take upwards of six months — and that’s not including the time it takes to close on a house and for it to go through escrow. Jumping in with both feet is great if you have enough savings, but if you don’t have another source of income, starting part time is a great way to get started and build your client base, so eventually you can go full time.
Despite what it might look like on TV real estate programs, a career in real estate isn’t always easy, and it’s not always glamorous. It’s hard work, even if you are only working part time. However, the rewards are great, and if you’re looking for a lucrative side gig, it might be the one for you.
SOURCE: Free Money Wisdom – Read entire story here.
