Getting into real estate is a great way to build long-term wealth. Real estate is an exciting business and you can often leave the negotiating table with all parties happy. Someone has sold the house they needed to leave behind and someone else has purchased a home in which they can build a future. So how much can you make starting your own real estate business? Let’s dig in.
Can You Get Rich From Real Estate?
Getting into real estate, whether as a realtor, property manager or landlord, can be lucrative. Depending on the business you get into, you’re either going to build wealth slowly or earn it in large clumps of cash. You might not make a ton of money at the start, but over time, you can build your income. If you’re good at cash management, a realtor’s income can work for you. Your money isn’t steady, but the payouts can be large. For a more regular income source, you can build a property management company and earn a portion of the monthly rent.
What’s the Average Income?
Based on average commissions, realtors make about $36,000–$40,000 per year. The challenge of working as a realtor is the timing. You may make a lot of money in the summertime as buyers are working to get settled in great school districts before Labor Day and struggle in the winter when nobody feels like moving in the snow. Again, build your cash management skills. When you get a big payout, it may be time to invest that chunk of cash in your own rental properties so you can build a steady monthly income.
Making money in real estate isn’t easy, but you can build a large income on your own schedule. Yes, it’s hard work and you will work most every weekend because that’s when people have time to look at houses. However, the daily Monday to Friday grind may become a thing of the past as you build your real estate business. In fact, you may get to choose Monday as your day off. Be ready to be constantly connected and to always be on and ready to connect with your clients. To succeed in real estate, you need clients who know they can reach you easily.
One of the best things about working in real estate is that, with hard work, you can receive a much bigger payout than you would by working by the hour. It takes diligence and hard work to build the relationships you need to succeed in real estate, but the payouts can be significant.
Here’s another article you might like: 4 Ways Consumer Research is Vital to Small Businesses