Real Estate Investor Salary: How Much Do They Make?
You’ve noticed that you don’t make as quite as much money as you could each month. You always make your rent by the skin of your teeth. You could start looking around for a higher-paying job or take on a side hustle.
If you decide to go with the latter, you should consider becoming a real estate investor. It makes a great part-time job. If you play your cards right and get good at it, you might even be able to make it a full-time gig.
The average real estate investor salary isn’t bad, depending on where you live. Keep reading to learn how to get started down this lucrative career path.
What Does a Real Estate Investor Do?
Before we get into what your paycheck will be like, let’s talk about what your real estate investor job responsibilities will be. Your focus will be to take your own money and use it to buy and sell buildings.
A lot of this involves buying old properties for cheap, fixing them up, and reselling them at a higher price than what you got them for. You can also put them up for lease or rent.
As you can see, it’s a spend money to make money sort of situation. Most people can’t use the cash in their pocket to get started. If this is the case for you, you can use bridge loans to make it easier for you to get your hands on property.
What’s the Annual Salary?
You can make about 124,000 dollars a year as a real estate investor if you play your cards right. There are plenty of ways for you to increase your profits.
If you don’t choose the right location, for example, you may be lucky to make 50,000 dollars a year. This will help if you’re only using it as a side job, but if you’re serious about making it big, you’ll have to increase your efforts.
You may also make a little less depending on what season it is. Certain times of the year such as the spring and summer are better for real estate than others.
Again if you’re going to make a profit, you may want to move to a location that has a good real estate market. Try to settle in a city and do a little research on the destination’s job market.
If you live in a rural area, you might not see many hits as far as real estate goes. Metropolitan destinations attract more people than any other location.
For one, there are more jobs in the city. Where there are jobs, there are people who need housing. There are also more amenities around that attract buyers to the area.
It’s thanks to all of this that you’ll be able to charge buyers and renters more money to get property from you. The demand will be high enough to make the price hike reasonable.
Places With Job Growth
Before you start buying houses to flip, do some research on the job market. If you can get a place that’s surrounded by warehouses, for example, it won’t be long before you find someone to buy the house from you.
The employees who work in the warehouses need places to stay after all. They’ll want a place that’s near their work because it saves on gas and travel time.
Have the Right Mindset
Now that you have a good location in mind, it’s time to start flipping houses. Before you begin in real estate careers, there are a few more things that you can do to maximize your profits.
The first thing is to put yourself in the right mindset. When it comes to working a traditional job, you have a boss above you who tells you what they need you to do, and you carry out the tasks.
Real estate is a little different. You make as much as you’re willing to put into it. You’re in charge of how much work you do, which gets a lot of people.
To be successful, you need to make sure that you have the mindset to make it happen. Consider being an investor to be an actual job because, at the end of the day, it is.
A good way to go about this is to read books from other people who have made it big in the industry. You might get a lot of great tips that you can use in your own career, and reading success stories will give you a little bit of inspiration.
Choose a Good Team
When you’re first starting, you might be able to handle life as a real estate investor on your own for a bit. This won’t last long, however.
Being successful is a team effort. You’re going to need people in your corner who have the same kind of attitude and goals that you have.
Keep in mind that just because you have a good team on your side, that doesn’t mean that you can slack off. You’ll still need to put work into it and keep track of stuff.
Consider a Partnership
If you’re reading this article, there’s a good chance that you don’t have much experience when it comes to real estate. This makes getting your foot in the door difficult. You may not have enough knowledge to know what to look for in terms of getting a team together.
If this is the case, it might be a good idea for you to partner up with someone with a little more experience. They’ll be able to guide you through the ropes, and you’ll give them a cut of the profits. It’s a win-win situation.
Make the Right Upgrades
A big part of being a real estate investor is making upgrades to old houses. The question is, what upgrades are going to be the most profitable for you?
You don’t want to sink too much money on it or you won’t make a profit. Then again, if you go too cheap with the upgrades, you’ll never sell the property.
Take a look around the area. If it’s a ritzy neighborhood, your mindset should be to go big or go home. If the improvements don’t put the house on par with other properties in the neighborhood, people will turn their noses up at it.
Vise versa if the house is located in a poorer location. If there’s a pool in the backyard and marble countertops in the kitchen, someone with a low income will wave it off without even attempting to make an offer.
Don’t Put All Your Eggs in One Basket
Your main job will be flipping houses, but that’s not the only way you can make a profit. Many investors make it a point to lease property or dabble in business operations to make a little extra money on their paycheck.
Leasing out a property is super easy. All you have to do is invest in a building and open it up for tenants to rent it. This can be a residential home, a hotel business, or an office.
The only downside of putting your eggs in this basket is that you might use up all the money you managed to save to make repairs on the property. If your tenants get up to illegal activity, it will hurt your reputation and affect your ability to lease out places in the future.
Make sure not to rent out the building until you’ve done a background check on the potential resident. You also want to get a good idea of what their annual income is like.
Once you lease out the building, you can make some extra cash by providing business operations. For example, let’s say that you’re leasing out a hotel business.
If there is a theater within that hotel, you can make a profit by selling movies that the renter can show their customers.
Get Yourself a Mentor
When it comes to any career field, networking is everything. Try to get into contact with other experts in your field. They might be willing to teach you a thing or two or at least give you some helpful advice.
Look for mentors who started from exactly where you are now and managed to work their way up the chain until they became a huge success.
Making a Decent Real Estate Investor Salary
No matter if you’re looking for a side hustle or are trying to find your next full-time career, becoming a real estate investor isn’t a bad choice. You’ll be working for yourself flipping houses and reselling properties.
This means the real estate investor salary that you manage to rake in will be based on the amount of work you do. If you’re willing to put in the effort, you’ll be rewarded handsomely.
If you’re looking for more ways to make it big in real estate, we’ve got your back. Visit our blog daily to read additional articles like this one.