5 BEST Real Estate Side Hustles
So we’re going to talk about real estate side hustles, a lot of you are getting your foot in the door of real estate investing, have and have asked me if there are other ways of earning money in real estate while they’re still seeking that first investment property, ways to make side money, ways to get in the business . Or maybe you’ve just done your first deal and would like to be around the industry while you’re looking for your next opportunity. I’ve been working in real estate for over 30 years, and working in real estate while you’re sizing up your next opportunity has several advantages. Obviously, there’s the revenue you can earn from the side hustle. You’ll also be gaining more knowledge about real estate investing and expanding your network of industry professionals in the process.
So what are some really good real estate sithole? So, one, I’m going to start with my favorite, which is property management. And you guys know, I started in property management, so I personally started managing properties while I was actually finishing university and I was just getting an apartment plus about six hundred bucks a month.
So it wasn’t very much money, but what I learned was massive. So I learned obviously how to find Tenet.
I learned everything about legal. I learned the marketing. I learned a vacancy was not good. I learned how to read financial. I learned how to do maintenance.
So there’s all these things that set me up as an individual for when I started to invest in real estate myself. It’s the upside of it. So when you’re buying something, you don’t actually know whether it’s going to do well or not. When you rather have the knowledge and be able to look at it critically from a rent standpoint, from an expense stamp to property management, will give you a good way of learning the ins and outs of owning a building. It’s just a great way to learn about the nuts and bolts of owning a rental property, as well as great practice for you when you have your own tenants.
What property management did for me is it gave me that courage of what I was sitting there negotiating with the seller or a broker to be able to talk to them rationally about the operations side of a real estate deal before I bought it.
And that definitely helped me, obviously, when I was raising money. The other thing about property management is that you can actually do this when you’re working somewhere else, because a lot of this work can be done on the weekends, in the evenings , depending on how much you have. But you could take on several properties and managing them, no problem by yourself. I highly recommend this strategy as one of the number one real estate side hustles that you can get.
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com/Ken now back to the show. Another one that’s kind of new is this Airbnb manager.
And I know there’s a sprouting up, but I know you guys have heard about it. And if you have it, here’s how it works. Basically, Airbnb owners come to a guy like me that already owns something and they say, hey, I’m going to give you two grand.
And what they do then is they pay me two grand for 12 months. I got to make sure I’m cash flowing, obviously. But what they do then is they take it and they rent it nightly, weekly, monthly, whatever they can be. It doesn’t matter to me because I just provide the real estate. There are a lot of things that you need to consider before you jump into this business.
But this is a real business that you guys can start up right away. One is you got to make sure that the highway and the cars in a neighborhood don’t preclude you for doing anything less than a 30 day rental.
Otherwise, you’re going to pay somebody like me the two grand a month and you’re not going to be able to lease it on anything less than a monthly basis. The other thing is, you really got to make sure that the demand is there. So like an area in Scottsdale.
These Airbnb managers have sprouted up all over, let’s see, around the spring training complexes like the San Francisco Giants or the Diamondbacks or the Colorado Rockies. What they do is they cater to the people that would normally come here and rent a hotel and they could bring their families and they rent a two bedroom, for example, it’s fully furnished, has all the stuff in it. It’s near the stadium. They can bring their clothes. They don’t have to mess around with all the things that they would have to do in a hotel.
And in most cases, it can actually rent for even less of the hotel. So this is a very good way where you can generate some real estate income quickly while you’re still working somewhere else. So let’s talk about real estate agent. So I know we’re stretching the idea of side hustle here a bit, but just hear me out and I’m just going to tell you the story about my sister. My sister Cathy decided she never wanted to go to college, but instead she decides she wanted to be a bookkeeper at a local medical clinic and she became a bookkeeper for 20 years.
What she did is she decided to get her real estate license and study for all those exams in the evenings, on the weekends, while she was still working as a bookkeeper. Eventually, her and her husband decided that they wanted to buy one rental house for their retirement. And what does she do? She jumped on to the MLS.
She found the rental house and she got herself paid a commission by the seller of that rental house to herself by just making that one decision to have her license.
In other words, she shared the commission with the listing agent. So on that one house, which cost four hundred thousand dollars, she made three percent or 12 grand just on one transaction. So personally, I’ve had my real estate license in Washington, Oregon, Nevada, California and Arizona, and I’ve had my broker’s licenses in Nevada and in Arizona. And I could tell you in all cases, the education that you learn around water rights, around land development, on land purchase, on single family homes and condos, on highways, all that stuff, it’s just a massive amount of education.
And that’s really what we’re trying to do here, guys, is we’re trying to not only find you a way to make money, but also it’s a great way for you to learn the real estate laws and also from other real estate professionals.
What I went through my real estate classes here in Arizona, I met several people that I’m still friends with, one of which brought me the hotel deal that I now own in Sedona. I actually met him in my real estate class. Another one is a land developer and he gets land ready for commercial development. And we bought the land from him as well. So, again, it’s part of the network, part of the sales.
You don’t have to be a real estate agent full time, but if you’re just doing it yourself, it can benefit you by having access to all that information, having access to the lenders, the title companies and other agents in the areas as they bring new deals.
And you can participate in the commissions on all the transactions that you’re involved in. Hey, guys, if you like what you saw, just hit the like subscribe or notification bell below. And of course, the show notes will be available to you. Oh, you do?
It’s got to click on the link below and you get the show notes for free. Another one is a real estate wholesaler. So in real estate wholesaling, the wholesaler contracts at home, usually one that’s a bit distressed.
And then you would tie that deal up and then you shop that home around to potential buyers. So I talked about this in one of the other videos.
It’s in that pre foreclosure videos. This is the time that you want to look for those. And then what you do is you merely a signed the contract to the buyer. And so the goal in real estate wholesaling is to sell the home to an interested party before the contract with the original homeowner closes. This means no money exchanges hands between the wholesaler and the seller.
Well, not at least until a buyer is found by the wholesaler. So how does the wholesaler make money? He earns a profit by finding a buyer willing to purchase the home at a price higher than the amount agreed upon. The difference in price paid for by the buyer is the profit retained by the wholesaler. Wholesaling real estate is best suited for people who want to get into the business but don’t have the cash.
There is no financial barrier to getting started as a wholesaler. But what you do need are a willingness to scour the market for investment opportunities and people skills to persuade a homeowner and a buyer that you can help them.
The last one is the traditional house hack. So a house hack is nothing more than buying something and renting out a piece of that property to somebody else to help pay for, if not pay for all of the expenses and the mortgage from the original purchase. Let’s say you want to buy a duplex.
You buy the duplex. You rent out one side, which pays for all of the expenses, and you live in the other side for free. So I have a good friend that I mentored that bought a number of homes this way that he moved into and he rented the spot above the garage, the basement, one room in one case, he got a five bedroom home and rented for the bedrooms to four other people. And it more than paid for all his expenses. And he lived there rent free.
So a house hack is an excellent way for you guys to get into a real estate deal for a little or no money and have somebody else pay for it. It’s a great way to get into real estate while you’re still working somewhere else.
It’s a great way to not pay mortgage or rent or an any kind of expenses associated with a real estate purchase. It’s a great way to get network into some of these real estate agents and these title companies, these mortgage people, and just into the real estate network. And you’re going to learn a lot about things like property management and finance and mortgage and how to get lending and all those kinds of things that come with real estate.
And it is one step in the right direction so you can get all the advantages that you get when owning real estate . Now, not all side hustles are created equal.
Some of these require more effort than others. But each of these offers excellent learning and network opportunities. And that’s what we want here, guys, as these are all opportunities for you to be able to try while you’re working somewhere and doing these on the side, and then eventually you can you could ultimately decide, is this something that I want to do full time or part time?
So, hey, guys, thanks for watching. We’ll catch you on the next video..