By Karen D. Friedman | 11/16/20
A real estate license creates money making opportunities for you.
Of course, many people get into real estate to broker deals between buyers and sellers and gain a commission.
But there are other powerful ways to make money with a real estate license.
Here are 6 ways you can make money with a license that we will talk about in this article:
- Become a referral agent
- Create a downline
- Invest in real estate
- Represent yourself
- Become a broker
- Leverage your credentials
So, let’s look deeper into each idea to see how you can start making money. Let’s jump in.
#1. Become a Referral Agent
What exactly is a Referral Agent?
How do agents make money if they aren’t involved in the transaction?
Referral Agents make money by sending their client to another agent that they know and trust.
The other agent handles the transaction. Because they brought the business to the other agent, they receive a referral fee when the deal closes.
It’s as simple as that.
The typical referral fee is 20-25% of the other agent’s commission. So let’s say if their commission is $50,000 and you get a 25% referral fee, then that’s $12,500 in your pocket.
You might wonder why someone would want to be a referral agent.
Some people get their real estate license to find clients in the field that they work in. Let’s say you work with professional athletes. You find out that an athlete is looking for a new home.
Not only can you refer them to someone who can help them but you can get paid for it too.
Why not get paid to refer your clients to a trusted agent?
#2. Create a Downline
It all starts with joining an office that you genuinely enjoy working at.
Find an office that is supportive, has great training, and offers a good commission split.
Creating a downline means you recruit others to your office. When you’re excited about where you work and what your brokerage offers, it’s easy to recruit for them.
You might wonder how you can make money doing this.
Typically, most brokerages reward agents for helping in the growth of the company.
They do this by offering you a small percentage of the profits. When agents you recruited have closed a deal, and the office is profitable that month, you get rewarded.
The more people you recruit to an office, the larger your downline becomes.
This gives you a greater chance of receiving passive income when those agents close deals.
So you see, creating a downline can be a lucrative way to make money with your license.
#3. Invest in Real Estate
Many real estate agents become investors.
They flip houses or buy income property to make a profit. When you find the right listings it’s very easy to make a profit.
One of the great advantages of being a real estate agent when investing is this: first dibs.
You get notified when properties first come on the market.
You can easily identify which properties are a great deal and make an offer on them before others have a chance to.
When it comes to investing, this is crucial.
Note: We interviewed real estate investor Paul Morris, author of the Wealth Can’t Wait, and he has 3 vital rules to follow when you invest. Click here to watch them right now.
#4. Represent Yourself
If you’re investing in real estate, represent yourself!
Let’s talk about one of the advantages of representing yourself in the transaction.
You can use the commission you received as the buyer’s agent as a down payment. This is a great tool to help you buy additional investment properties as well.
But you don’t have to be an investor to take advantage of representing yourself.
When you’re selling your home, you can save on the commission given to the listing agent. If you’re buying a home you can pay yourself as the buyer’s agent.
Representing yourself: it’s a great opportunity to save on costs and commission.
#5. Become a Broker
You already know that being a real estate agent is a great way to make money.
That’s why you got your license.
Do you have bigger goals of leading other agents or growing a team in the future?
Instead of hanging your license at an office, you can become a broker.
After you meet the educational requirements and pass the state test, you can get your broker’s license.
Having a broker’s license means that you can work independently. It also means that you can have sales agents under your license.
As a broker, when you have other agents closing deals, you get a percentage of the commissions. It’s a great opportunity to lead other agents to succeed while growing your own wealth.
#6. Use Your Credentials
There are many ways to monetize your experiences as a real estate agent.
Here are a few idea on how you can use your credentials to make money in real estate:
- Write for Websites
As a REALTOR®, you can use your credentials as an educator. You can become a mentor to other agents. You’ll get a percentage of the deal for your guidance through the transaction.
Do you have a passion for teaching? You can become a trainer at a real estate school.
Another great option is to become a real estate consultant. This model will allow you to consult with clients on an hourly basis.
Usually, consultants will offer their services as it relates to investing or financial planning through real estate.
Real estate blogs and websites are becoming more popular in this digital age. Freelance real estate writing is another great way to get paid for sharing your expertise.
Final Thoughts on Making Money with a Real Estate License
Having a real estate license is not limited to helping others buy or sell properties.
The real estate field gives you creative ways to utilize your license and make a living. So, take advantage and explore your options.
Did this inspire some ideas? Let me know in the comments below!