DIY : Making money in real estate without getting a license
Driving down the street, you probably see a handful of properties for sale. Signs poking out, just begging you to come in and see what’s inside and imagine what changes you would make to turn this property into a home — or a source of income.
But you may be thinking, “Can I do this without having a real estate license?”
Believe it or not, it’s possible (and legal) to make money in real estate with our a license. In fact, the people over at Real Estate Elevated spend their time educating others how to make money in real estate, even if they don’t have a license.
So before you jump in, let’s go over three ways to help you get on the track to making money in real estate.
Find A Trusted Real Estate Agent
You are probably thinking this is a no-brainer but a lot of people who try to make money in this business think asking an agent is taboo. Real estate agents have access to what’s called an MLS (multiple listing services).
If you don’t have the time or money to get a license, partner with an agent who has experience with buying, selling, and flipping homes. With the MLS, they will be on the lookout for a property you can afford to buy and flip. You’ll get a smaller return on your investment, but you will also have experts who can get your property finished quicker.
Invest in Short-Term Rentals
If you live in a part of the country that’s deemed a “seller’s market” you’re probably not looking to invest in long-term homes. So, instead of trying to force a potential flop, search for the opportunity to flip rental properties.
The rise of vacation rental sites gives you the chance to seize a great opportunity to make money with rental properties. More and more vacationers are looking for alternatives to hotels — give them that alternative.
Focus your search in areas with a high demand for rentals. Cities, college towns, or popular vacation sites. These provide you with a great opportunity for rental property to invest in.
Work with Wholesalers
Wholesaling houses is a fantastic way to invest in real estate without a ton of capital. Professionals find homes that are undervalued and put them under a contract. Under certain contingencies, they will assign the contract to another buyer within a certain amount of time — usually very short.
Wholesalers look to find a buyer who is willing to pay slightly more than the price they are under contract for and assign it to them, keeping the difference as a profit at closing.
Call wholesalers in your area. If they have a deal on a house you can flip, everyone wins. You’ll build a relationship with them and could call you back with future homes. Everyone wins and it can help you make a larger profit on flipping a home.
It’s important to remember that some states see this activity as “acting as an agent” so you would need a license. Research your state’s laws before you work with a wholesaler.
These are just a few ways you can make money in real estate without having a license. It’s not easy, but it’s possible and if done correctly, can merit positive, substantial income for you and your family. If you eventually want to make it your main source of income, you should look into getting your license.
For now, let us help you make the most of your real estate opportunities.