Real estate is nothing but real or physical property. It means that the property is a tangible one. The real estate business is the process of buying and selling real estate properties. More often than not, real estate business is interchangeably called real estate by many people. The real estate business is one of the most profitable and has its presence in almost all the countries in the world today.
Stick around to discover How to make money in real estate without owning a house
The real estate business thrives and abundantly grows, especially in developed countries. Real estate business can be carried on by a real estate agent or a real estate broker. You can become a real estate agent without much difficulty. This is because the real estate business doesn’t consume a lot of your time or effort.
Make money in real estate without owning a house
ways to make money in real estate without actually owning a house:
There are several ways to make money in real estate without actually owning a house. Here are a few options:
- Leasing with an option to buy: This involves renting a property to a tenant, but giving them the option to purchase the property at a later date. The tenant pays rent and may also make payments towards the eventual purchase price.
- Rent-to-own: This is similar to leasing with an option to buy, but the tenant is typically required to purchase the property at the end of the lease period.
- Wholesaling: This involves finding a discounted property, then finding a buyer and selling the property to them for a higher price. The wholesaler does not actually take ownership of the property.
- Property management: Some people make money by managing rental properties for other people. This can involve finding tenants, collecting rent, and handling maintenance and repairs.
- Real estate investment trusts (REITs): These are companies that own and manage income-generating real estate. Investors can buy shares in a REIT and earn a share of the profits from the real estate holdings.
- Real estate crowdfunding: This involves pooling money with other investors to fund the purchase of a real estate investment. The investment is managed by a professional team and the investors earn a share of the profits.
- Real estate consulting: Some people make money by providing advice and guidance to real estate investors. This can involve helping investors evaluate potential investments, negotiate deals, and manage properties.
- Real estate brokerage: Some people make money by acting as a middleman between buyers and sellers of real estate. They may earn a commission for successfully bringing a buyer and seller together and facilitating the sale of a property.
- Commercial leasing: Some people make money by leasing commercial properties, such as office buildings, warehouses, or retail spaces, to businesses.
- Real estate development: Some people make money by developing real estate projects, such as building new homes or renovating existing properties. This can involve finding land, securing financing, and overseeing the construction process.
Keep in mind that making money in real estate often requires a significant amount of time, effort, and capital. It’s important to do your due diligence and carefully consider the risks and rewards of any real estate investment.
Lets dig deeper:
The real estate business is not a cakewalk definitely. Not everyone can become the Jack of all trades when it comes to real estate business. People with a lot of communication skills, networking skills, and persuasion skills can choose the real estate business as their profession. The real estate business needs a lot of coaxing to be done by a real estate agent or a real estate broker to their respective clients.
It is harder to become a salesman in real estate business than being a salesman in other lines of business. This is because the products that the real estate agent or a real estate broker sells are properties, houses, buildings, land, and spaces, which need a lot of capital.
The persuasion done by real estate agents and real estate brokers to sell a real estate property is many times bigger than the persuasion done to make people by other products. Real estate business does come with its own challenges, because of the huge amount of cash involved in it.
In the following passage, let us get to know more about the real estate business, real estate agents and real estate brokers. We will also learn how real estate brokers make money, the different real estate courses available and also how much commission real estate brokers charge.
Requirements to be a real estate broker
The real estate broker requirements are very much similar to those required to become a real estate agent. There are only a few extra steps when it comes to real estate broker requirements. The following points give you exhaustive information about the requirements to become a real estate broker:
- The first and foremost requirement to be a real estate broker and a real estate agent is to make sure they are eligible to be a real estate broker or real estate agent. Age is the primary eligibility criteria in this field.
- The second is to understand the real estate licensing requirements of the state, in which you want to be a real estate broker. Understanding the real estate requirement of the state in which one wishes to operate is very important because every state has its own rules & regulations with respect to the real estate industry.
- The third is to enroll for a pre-licensing course on real estate. This is the step where you get to choose the method of learning. You can either choose to study on your own or attend classes or learn through online courses. It is important to choose the type of course you wish, for proper understanding and easy learning.
- The next step is to apply for the exam, which will qualify you to become a real estate salesperson. You should be thorough about the application process in your state. This will help you to take the real estate agent exam as soon as you finish the classes on real estate licensing. You should pay the exam fee for the same. In some states, they ask for fingerprints of the candidates.
- The next requirement is to pass the real estate salesperson exam. With the right preparation, you can clear this step with ease.
- The next requirement is to find a real estate broker and start joining hands with the real estate broker. Passing the exam will not necessarily mean that you can become a licensed real estate agent. This step only gives you the license to act on behalf of a real estate broker and not independently.
- After passing the exam, you have to work with a real estate broker to complete the paperwork within your state. After completion of the paperwork, after the approval of the state administration only, you will get your real estate agent license.
- Now, you are a real estate agent, officially. To become a real estate broker, you have to work as a real estate agent for a minimum of 2 years. After this, you can get a broker license and start to do real estate business on your own as an independent real estate broker.
Running a real estate business
People who do real estate business are called real estate brokers or real estate agents. More often than not, the terms real estate brokers and real estate agents have been used interchangeably by many people when they talk about real estate business.
Even though both real estate brokers and real estate agents have the same kind of work for the most part of it, they differ in one single way. A real estate broker is a person who has a license for real estate and a license for brokering. A real estate agent is a person who only has a license for real estate.
Here is a clearer explanation of this difference. A real estate broker has the right to sell and buy a property. He can have his own real estate firm and can hire real estate agents to work for him. On the other hand, real estate agents are just people who buy and sell real estate property. They cannot own a real estate firm or hire agents. However, with proper training and education, a real estate agent can become a real estate broker within a short period of time.
Now that we have cleared what the terms real estate brokers and real estate agents mean, let’s see how much commission do real estate brokers charge in different USA states. Real estate broker commission charges are uniform throughout the USA. This is because if there are different rates of commission, agents will start flocking to the states which have the highest commission rate. This would only lead to a lot of mess & chaos in the country.
Ideally, the rate of commission for real estate brokers or agents in the United States of America is 6%. This may seem quite a meager rate, but when converted as a value, this can mean quite a large sum. For example, let us say a real estate property worth $100,000 is being sold. The real estate broker, who makes the negotiation for the selling, gets 6% of this $100,000.
This would translate to a sum of $6000 for a single deal! This revelation clears away all ambiguity pertaining to, “how real estate agents are making huge incomes so easily.”
The above paragraphs partially answer the question, how do real estate brokers make money. The complete answer to this question is as follows. A real estate broker makes money by negotiating the prices between a real estate property seller and a real estate property buyer.
The only income of a real estate broker and a real estate agent will be from the commissions they get from each deal they negotiate. So, for a real estate broker and a real estate agent to make more money, they have to look up for as many deals as they can. They should always be on their toes, looking out for people, who are willing to buy a real estate property or sell a real estate property.
The commission is usually split between the real estate broker or real estate agent of the buying party and the real estate broker or real estate agent of the selling party. The commission is always split halfways between these brokers, towards being uniform and fair in the bargain. This is the way in which real estate brokers make money.
One of the ways in which a real estate broker can make a good income is by being the real estate broker or real estate agent of both the buyer of the real estate property and the seller of the real estate property. The real estate broker should get a confirmation in writing from both the buying and selling parties that they are in acceptance with the real estate agent or real estate broker being the agent of both the parties.
One of the crucial parts to be performed by the real estate broker or a real estate agent here is to remain neutral to both parties. He has to negotiate the deal in a fair and truthful manner. By being a real estate agent for both the buying and selling parties, the real estate broker gets to keep the total commission derived from the deal without having to share it with another real estate broker.
This is equivalent to making the double the amount of income that one would have earned, by adding smartness to one’s work. Real estate is a very rewarding business if one knows the right ways to do the right things at the right time.
Books on real estate
Any businessman should have the habit of learning new things regularly. He has to imbibe the learning in his everyday life to achieve success in his business. Reading makes a businessman more knowledgeable than he is already.
A real estate broker or a real estate agent can read books written by great real estate tycoons to gain more knowledge on the business and to learn tactics and techniques to do real estate more efficiently and effectively.
is a book, which is written by Gary Keller along with Dave Jenks and Jay Papason. This book is considered as a bible of the real estate industry. The author is the founder of Keller Williams. The book is a rich collection of tips from the author to aspiring real estate agents around the world.
is another real estate book that is written by a real estate coach and trainer named Kevin Ward. This is the best book to read for a real estate broker and real estate agents to improve their communication and persuasion skills.
is a book on real estate by Karen Briscoe. This book helps real estate agents to improve their sales and marketing skills.
is a book by Mario Jannatpour. This book helps real estate agents and real estate brokers to have a very sustainable business without compromising integrity.
is a book by Hal Elrod, Michael J. Maher, Michael Reese, and Jay Kinder along with Honoree Corder.
is a book by Fredrik Eklund. The book has a personal and professional touch to it. The author advises how to earn the client’s trust and contact and how to pitch services and oneself to clients and probable clients.
is a book by Katie Lance. This book is like a guide on how to build a comprehensive social presence and grow the leads database.
Course for Real Estate
Real estate agents and real estate brokers can have an edge over their competitors by having more information, knowledge, business tactics and techniques than them. For real estate agents and real estate brokers to have this edge, they have to read a lot of books. Also, they can do short-term courses on real estate to up their business game.
There are many degrees relating to real estate for real estate brokers and real estate agents to learn from. The first and foremost thing to do is to decide on what course to learn. This decision can be made only by looking at the real estate business being carried on by the real estate agent or real estate brokers.
There are many courses for real estate agents and real estate brokers to choose from. Some of the real estate courses are:
- Real Estate Diploma Course, provided by the International Career Institute
- Real Estate –the USA, provided by International Career institute
- Real Estate –the UK, offered by International Career Institute
- Increasing Real Estate Management Profits – Harnessing Data Analytics, offered by Coursera – Duke University
- Socially Responsible Real Estate Development, offered by Massachusetts Institute of Technology
- Creative Real Estate Investing and Flipping Houses, provided by Udemy
- Fundamentals of Analyzing Real Estate Investment, also offered by Udemy as well
The above are some of the courses that one can enroll in, to know and learn a little more about real estate.
Online real estate business
One of the perks of living in this era is the ability to use all the technologies to earn money from being at home. Just like a lot of businesses that can be run online, a real estate business can also be run on line. This triggers the question “how can I start a real estate business online?”
Real estate business can be started online and run when everything necessary is done properly. This does not mean that everything can be done online; this just means that a lot of promotion, marketing, advertising, and networking can be done online.
- Hosting: The first and foremost thing to do is create a domain for the business with the help of Bluehost
- Themes: With the help of Bluehost, install WordPress. Create a real estate theme with the help of Elegantthemes is the best place to get appropriate themes for your business and other needs.
- Logo & Design: It is a must for all types of businesses to have their own professional logo. Don’t worry you can use Canva to make one, in case you have no skills, you can order a logo from Fiverr to do the job.
- Customize the blog in a way that suits the business. Make sure to put the contact details of the business on the blog. Make the blog look eye catchy with the pictures of real estate properties. You should also include positive customer feedback from prior customers on the blog.
- Email Marketing: To divert traffic to the website it is a must to create an email list using Aweber or Getresponse. are the best software to create an email list because of its user-friendly tools.
- Plugins and pop-ups: should also be used for the sake of diverting traffic to the website. For plugins you can use Thrivethemes.
- After creating a website, the next step is to visit all social media platforms that can help in reaching out to a lot of people in the same state as the business,
- Social Media: Create a YouTube channel, a Facebook account, an Instagram account and a Pinterest account for your real estate business TailWind will help you grow on social media.
- Creating the above things is very easy. After setting up all the accounts in a uniform manner, start plugging in the website of the real estate business in all the content that you post on the above mentioned social media platforms.
- The YouTube channel of the business can have videos of the tour of the interior and exterior of the real estate property being sold by the real estate business. This, in itself, is an advertisement on its own.
- All the social media platforms in which the accounts for the real estate business are created should be updated regularly to attract customers and to retain the existing ones with the use of TubeBuddy or VidIQ. Every social media post on any platform should have plug-ins of other social media platforms. This is done to make the best use of social media for getting clients.
- Organic traffic: can be diverted to the blog with the help of SEO organic traffic targeting long tail keyword with the help of Long tail Pro and track your ranking using ProRankTracker, Instagram and Facebook ads, and also through the tailwind of Pinterest.
These are the ways in which one can create an online real estate business. This answers the question, “how can I start a real estate business online?” One cannot do the whole real estate business online because human interaction is the main aspect of this field. It is this personal touch, which makes the buyer and seller make a decision.
Points to remember before getting into real estate business
The real estate business is very enjoyable if one knows how to do the business and have the right skills and mindset for the same. Some of the things to know before getting into real estate are that lenders are a crucial part of the business and one should find a good lender. This is because a bad lender can become a headache in the long run.
It is a business in which one has to invest in getting the most benefit out of it. Being unique in the industry is a major plus point. Real estate is a business where you keep cracking deal after deal during the time but remain idle without any orders during other times. Regardless of this fact, you should put in your 100% commitment and dedication to the business and look to reduce your idle time as much as possible.
Last but not least, you should find a person who has good knowledge and rich experience in real business. Make this person as your mentor. This step will be helpful in avoiding any pitfalls in your real estate business.
Conclusion:
In conclusion, there are several ways to make money in real estate without actually owning a house. These include leasing with an option to buy, rent-to-own, wholesaling, property management, investing in real estate investment trusts (REITs), crowdfunding, consulting, brokerage, commercial leasing, and development.
Each of these options has its own set of risks and rewards, and it’s important to carefully consider the potential returns and costs before getting involved in any real estate venture.
Frequently Asked Questions:
How to Invest in Real Estate Without Buying Property?
To invest in real estate without buying property, you can consider options such as real estate investment trusts (REITs), real estate crowdfunding, peer-to-peer (P2P) lending, private real estate funds, or publicly traded real estate companies. These options allow you to invest in real estate without the need to directly buy and manage a physical property.
Hi, my name is Idammah, and I am the founder of Genie Dollars, a website dedicated to helping people make money online. I have always been interested in finding ways to earn extra income and achieve financial freedom. That's why I started this blog – to share my own experiences and the strategies that have worked for me with others who are looking to do the same. I have personally tried a variety of methods for making money online, including affiliate marketing, POD, and freelance writing. While some methods have been more successful than others, I have learned a lot along the way and am constantly experimenting with new ways to earn an income online. Through my blog, I hope to inspire and educate others who are looking to start their own online businesses or simply want to supplement their income. I believe that with hard work and dedication, anyone can find success in the world of online entrepreneurship. I am excited to share my knowledge and experiences with my readers, and I hope that my blog can be a helpful resource for anyone looking to make money online. Thanks for stopping by!
