Want a Side Hustle that Makes You Money? Get a Real Estate License
Whether you are on the hunt for a part-time gig, looking for a side hustle that can supplement your full-time income, or just toying with the idea of property investment, there is significant money to be made working part-time as a real estate agent.
Of course, starting your real estate side hustle won't happen overnight.
The requirements for obtaining a real estate license will vary between states, but generally, it will include attending real estate school and passing a state exam.
Still, in about six months, you could be starting your real estate side business, setting your hours, and enjoying unlimited earning potential.
This post will explain, in detail, how becoming a part-time real estate agent can set you up for one of the most lucrative, flexible, and rewarding side hustles available.
Why Becoming a Real Estate Agent is a Great Side Hustle
While being a real estate agent is a full-time day job for many in the industry, it also makes a great side hustle.
There are many benefits to being a part-time real estate agent. In addition to being a great way to supplement your regular income, you'll gain significant industry experience and satisfaction from helping your clients buy or sell properties.
According to Bankrate, there are over 44 million Americans with a side hustle, including many millennials who use them to bring in the income needed to begin their financial journey as adults. A career as a part-time real estate agent is one of the most popular side gigs out there because it offers the flexibility to customize the job.
Those are just a few reasons why becoming a real estate agent is a great side hustle. In this next section, we'll outline several more.
Part-time real estate agents earn high commissions.
Real estate agents work on commission and earn that commission based on a percentage of a property's sale price. That means that a part-time real estate agent can make a sizable commission on every successful real estate transaction where they are the agent.
The current average home value in the United States is $374,900. Following the successful sale of a property, once the commission is split between agents and brokers, a part-time real estate agent can expect to take home a commission based on 1.5% of the total sale price. In this example, that would be $5,623.
Everyone needs a real estate agent at some point.
Chances are, someone you know is buying or selling property right now, or they will be in the next six months. That's good news for you if you have your real estate license because your friends and family are more likely to want to work with you than an agent they don't know.
As a part-time real estate agent, you'll be surprised at how many leads you will be able to generate from friends, family, and even acquaintances.
You can become a referral agent.
With your real estate license, you can choose to work exclusively as a referral agent. Referral Agents earn their money by referring clients to other real estate agents.
The other agent then handles the entire transaction, and the referral agent collects a referral fee when the deal closes. The average referral fee is 20-25% of the agent's commission.
Using our earlier example, if you were to act as a referral agent in that transaction, you could collect as much as $1,405.75 for a simple referral.
That means no client interfacing, no burdensome paperwork throughout the process, just collecting a few for recommending people to other agents.
You can work from anywhere and take the time to decide if being an agent is right for you.
As a part-time agent, you can work from anywhere, make your hours, and have the freedom to put as much or as little effort into the gig as you want. Of course, the more you dedicate to your side hustle, the greater the return.
When your side hustle is working as a part-time real estate agent, you have the opportunity to decide if a full-time career in real estate is right for you. If it seems like the right move, it is the safest way to transition into a full-time job as a real estate agent.
Part-time real estate agents get perks like early listing access and the opportunity to save money.
Being a part-time real estate agent can open the door to a career in real estate investing, and it can also be beneficial if you want to buy your own home. A real estate license gives you early access to exclusive multiple listing service (MLS) properties.
You can also represent yourself in purchasing your own home, which means you'll be able to pocket some extra money in the form of a commission on the sale.
How Do You Become a Real Estate Agent?
Although specific requirements for becoming a real estate agent are different from state to state, the following are the general steps that someone needs to take to start your real estate side business are:
- Determine the specific real estate license requirements for your state.
- Enroll in a real estate school.
- Take your state's real estate licensing exam.
- Obtain your license.
- Join a brokerage.
Final Thoughts on Starting Your Real Estate Side Hustle
While you'll have to spend some time and money to get a real estate license and launch your side hustle, having a real estate license can open the door to opportunities well beyond your initial part-time gig.
You are in control when you become a real estate agent, whether part-time or as a full-time career. You create your schedule, set your own pace, and even decide your role. The power is in your hands, and the potential to make lots of money is within your reach.
Just remember, you can only get back how much you put into it, and the more time you dedicate to your side hustle, the greater the return will be.
One of the most highest paying side hustles is being a real estate agent. You don't have to work on any schedule, and if done right, you can have clients come to you or you don't have to go far to find someone who will hire you.