The real estate market is constantly evolving. Currently, the threat of a “real estate crash”, a spike in interest rates and a fall in housing prices is looming. Despite this, however, it is still the perfect time to break into the real estate market.
The last few years have led many people to pursue stable and stable careers despite the economic challenges. Real estate is a great recession-proof career path, because today’s buyers and sellers need help in today’s market. Inevitably, they will turn to experts like you to meet their real estate needs.
Here are some real estate business ideas and tips to consider if you are looking to start a career in the field
1. Real Estate Development
Real estate developers are responsible for supervising the new construction or renovation of residential or commercial properties. Job responsibilities may include securing financing, working with construction companies to ensure timely project completion, and marketing the new development to clients.
If you are interested in real estate development, start by taking on a role as a spatial planning project manager. The average salary for a spatial planning project manager is $99,100, and salaries are expected to increase to $112,100 over the next five years.
If you are looking to start your own real estate development company, your net income can be largely influenced both by the project and by the market in general. Assuming that you can sell a property in full occupancy, you can get a return on investment of between 16% and 20%.
2. Property Management
The need for a property manager often arises when the owner does not have the time or expertise to manage his real estate. A property manager usually works full-time and is responsible for the day-to-day operation of properties, including, but not limited to, residential, commercial or industrial properties. Property managers meet with potential tenants and show them properties, collect monthly tenant fees, pay bills, arrange repairs and maintenance, comply with fair housing laws in the region, and more.
In recent years, the average property manager grossed in $54,183 in the United States. Although this is the average, the salaries have reached $79,000 depending on the level of education, certifications, experience and type of property of the manager for which he is responsible for managing.
3. Home Cleaning And Staging
Preparing a house to show to real estate agents’ clients involves cleaning the house so that it is ready to “move in”, as well as making it presentable for potential buyers. Home staging aims to transform a house into an attractive and inviting environment in which potential buyers can easily imagine themselves living. Those in the home staging industry say that home staging can increase the seller’s profits by $10,000 to $75,000.
On average, a home stager can earn between $300 and $800 for a two-hour consultation at the potential client’s home. If the client wishes to proceed with home staging services, the potential to earn an additional $1,000 is the minimum threshold. A home staging project can cost between 5,000 and 10,000 dollars, depending on the size of the house, its location and the expertise of the home stager.
4. Residential Real Estate
Helping others buy or sell a house, also known as residential real estate, is a common real estate business idea. Residential real estate agents help sellers market their properties to potential buyers and help buyers find the right properties that fit their needs and budgets. The residential real estate sector continues to grow every year and offers great opportunities for experts in the field.
To become a residential real estate agent, you need to be well versed in administrative work, research and marketing, and check your state’s licensing requirements to ensure compliance. On average, residential real estate agents earn $50,000 per year.
5. Commercial Real Estate
Like residential real estate agents, commercial real estate agents help with the purchase, rental and management of properties for companies. Because the commercial real estate market is more data-driven, this career involves more research to identify trends. In addition, commercial real estate deals more heavily with leases than residential real estate.
A career in commercial real estate is an attractive option for many real estate professionals because of its financial benefits. The average annual salary of a commercial real estate agent is $94,383—almost twice as high as that of residential agents. However, the licensing requirements are usually the same as those of residential real estate agents.
6. Real Estate Investment
Another common real estate business idea is to invest in a pool of real estate properties through crowdfunding or real estate investment trusts.
Real estate investors can earn between $70,000 and $124,000 a year—and even more, depending on the number of deals you strike and the time you invest. Salaries also depend on the area of real estate in which you invest.
For example, rental real estate investment usually brings in a lower salary of between $27,500 and $121,000. Home flipping costs an average of $62,900 per flip. Short-term rentals pay you between $35,120 and $61,097. The wholesale makes you between $21,500 and $98,500. Essentially, the more work you put into your career, the higher the salary you will reap.
7. Real Estate Coaching
For experienced real estate professionals, real estate coaching can be a rewarding and lucrative career path. As a real estate coach, you can help new agents get the best possible start in the industry by providing them with professional feedback and information. This career path also offers flexibility—you can accept as many or as few clients as you want.
Real estate coaches usually charge between $400 and $500 per month for one-on-one sessions. Depending on your level of experience and the number of clients you have, you can earn between $69,337 to $103,606 annually, with an average net salary of $86,0022.
Why Real Estate Is A Lucrative And Worthwhile Industry For Entrepreneurs
• High Earning Potential: It’s no secret that owning real estate can pay off over time—about 90% of millionaires are real estate investors. By buying a property, you can continue working on your current business, while letting the investment generate a profit for itself by appreciating the value, developing it or renting it out to tenants.
• Flexibility And Independence: As an entrepreneur, if you are looking for a place to host your next business, investing in real estate can offer a cheaper and long-term solution than renting with the added advantage of flexibility. Instead of paying money every month to an outside source, owning a property allows you to pay yourself rent and make modifications/renovations to adapt the property to the needs of your business.
• Tangible Assets With Potential For Appreciation: When you invest in real estate, you own a physical property with the potential to increase in value over time. As inflation increases and areas develop, the value of your property is likely to increase as well—when it comes time to sell, your investment will bring you a higher profit than the cost you paid.
• Opportunity For Personal And Professional Growth: Owning a property can create growth opportunities, as it offers entrepreneurs the opportunity to earn passive income through syndication agreements, which can help cover mortgage payments or be used to invest in something new. In addition, if you need an influx of liquidity for your business (or for personal reasons), your investment is a tangible asset with accessible equity for the financing you need.
