Careers in real estate

Have you found yourself thinking any of these thoughts?

 “Why do I work at my current job?”

“What can I do for a living and be my own boss?”

“What careers offer flexibility and uncapped income?”

“Where can I work and get unlimited vacation time?”

If you have had any of these thoughts run through your head, a career in real estate might be for you!

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Like I have mentioned in my previous blog posts, it all starts with getting your real estate license. (If you need a refresher on how to do that, check out my blog post, “How to get started in real estate”). Once you get your license that opens the door to many possibilities for yourself.

Agent- This is the most common career that you can pursue in real estate. Want to be an independent contractor? Be your own boss? Make your own hours? Selling real estate would be the way to go.

Broker- After having your license a minimum of 3 years and learning as much as you can about the real estate industry, you can apply to be a real estate broker. See, all real estate transactions run through a brokerage, meaning salespersons do business on behalf of their broker. Being a broker adds more responsibility, but now you are officially your own boss!

*These careers require different licenses than a salesperson or brokers’ license*

Appraiser- Don’t want to sell real estate? How about get your appraisers’ license and figure out the values of houses. This is a very important job in real estate, as appraisers work with lenders, brokers and inspectors to determine the values of houses.

Inspector- This is another important career in real estate. Buyers will use inspectors to make sure their investment in a property is worth it. A real estate transaction is not cheap, so inspectors carry a lot of value in the real estate world.

Mortgage Broker/Lender- Can’t afford to pay cash for a home? That is where people in the mortgage industry come into play. Essentially, if you work on the mortgage side, you will be the most important part of the transaction. If someone cannot afford to pay for a home on their own, that deal is not happening!

Property Manager/Landlord- Want to own properties or work with someone that does? This could be an option for you.

Any of these potential careers seem interesting to you? If so, I highly recommend you check them out and consider a switch into the real estate industry!

Diversifying your real estate portfolio

Real estate can be one of those avenues to diversify your portfolio. Like in the previous blog post of mine, I shared the different ways to invest in real estate. Now, it is all about acting on those opportunities that are out there!

Real estate can be utilized by investors and can be very profitable to them if done with great preparation and research. Observing market conditions, evaluating the quality of the house, and using a professional Realtor can make a huge difference for those looking to invest in real estate.

Think of a real estate broker like a stock broker. They both act on the behalf of their clients and work for their clients’ best interests. This is a huge responsibility for the Realtor to take and the good ones do everything they can for their clients.

Moving on to the return you can get with real estate. The potential return on real estate can be much higher than stocks and bonds. Of course you’ll be assuming some sort of risk by investing, but real estate gives you an opportunity to boost your income.

Flipping properties or renting properties you own to investors are ways to help increase and diversify your investment portfolio. Just from these two methods of investing in real estate, you are able to change the dynamic of your portfolio. Other ways to invest include bidding on HUD Homes, buying out people that are about to foreclose, working with banks (BPO’s), buying wholesale/black market, etc.

These investments also offer stability to you portfolio. With real estate, you know what you are getting when you invest. Stocks on the other hand, you really don’t know. Yes, the real estate market could crash like it did in 2008, but that was a rare occasion. 

Ways to invest in real estate

Investing in real estate can be a great way to make some big bucks, if you do it right. It will take time and some cash to get going, but it is definitely possible. You have to be smart about what you invest in and get educated. Read up on what you have to do to get going and once you do, it can be a profitable business for you.

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Just like stocks, there is always risk involved with investing. Is the risk worth the reward? Well, here are some ways it can be.

Rental Properties and Flipping: Ever want to be a landlord? Find a house reasonably cheap and that doesn't need too much work done to it. Make the needed upgrades and find some people to rent it out. If you don’t want to deal with renters, try putting it back on the market. These two ways are most popular in real estate investing.

Flipping can also be called “trading”. Usually the time frame of owning a property that you’re going to flip is three to four 

months. The trick is to land a house that is extremely undervalued or is in a “hot” market. Also, “flippers” can purchase a property at a fairly reasonable price and add upgrades to the house. These take more time and rely heavily on increases in the real estate market in that certain area. 

REITs (Real Estate Investment Trusts: A corporation (or trust) will do this when they use investors’ money to purchase properties for income. They are bought like stock, on major exchanges. In order to keep the status of a REIT, the corporation must pay out 90% of its taxable profits in the form of dividends. This avoids the REIT from paying corporate income tax.

Real Estate Investment Groups: These are a lot like smaller mutual funds. This can be an alternative for you if you do not feel like having the responsibilities of a landlord but you want to be involved. A company will buy a strip of apartments or condos and then investors will buy them through their company. You’re essentially becoming a part of their “group”, but you will have to share some of the monthly rent with the group.