The spread of COVID 19 didn’t slow down the growth of the US real estate market. Despite the pandemic, buyers continue to bid up home prices making houses sell more quickly than ever. Now that the economy is getting back on its feet, more buyers are entering the real estate market. In May 2021, the industry achieved an increase of 15.2% compared to 2020, and this number is expected to grow as the year continues. If you are looking into entering the competitive arena of real estate, here is a guide that can help you get started.
Become a Real Estate Agent
Being a real estate agent is one of the most popular types of career in the real estate market. Aside from interacting with different people every day and handling a variety of properties, being a realtor also has its financial benefits.
According to the U.S. Bureau of Labor Statistics, the median income of a real estate agent is around USD 49,000 annually. For brokers that have additional certification and experience, the pay easily increases to nearly USD 60,000 per year. These numbers would still vary depending on the value of the property you’re selling and the commission you’ll get out of the sale.
The license to become a real estate agent varies depending on which state you’re in. To find out the specific requirements in your state, you can visit your municipality’s real estate regulatory office. You can also go to the website of the Real Estate License Law Officials (ARELLO).
Become a Landlord
If you have an unoccupied property or a piece of vacant land that you want to make use of, you can consider being a landlord. With this, you can earn money in two different ways: first is that you’ll get paid consistently every month or every year from the rent, and second, you can secure a long-term gain through the appreciating value of your rentals’ equity in the long run.
You can either rent out or lease your property. Either way, it is your duty to apply for and set up necessities such as water, electricity, gas, and internet connection. You or your employees also need to do the maintenance, including repairs and trash collection and disposal.
As a landlord, you have the legal right to collect prearranged late fees and rent. You also have the right to increase the cost of rent as defined in your landlord-tenant lease agreement. If your tenants cannot pay for the rent, you have the option and the right to evict them from your property. The eviction process varies depending on which state you’re in, but in general, you can collect legal costs and back rent.
Make an Investment
Investing in real estate can help bring you additional income while diversifying your current investment portfolio. One of the most known ways to invest is buying real estate investment trusts or REITs. REITs are often linked to mutual funds, but in reality, they are companies that own commercial properties like hotels, retail spaces, buildings, and apartments. They pay high dividends; that’s why it is a popular investment option for retirees.
You can also consider investing in real estate funds, which are somewhat similar to regular mutual funds. They can either be passively or actively managed. This type of investment is for individuals that are willing to provide a significant amount of minimum investment.
Another way to enter the real estate industry is to flip houses. This method is becoming more known nowadays because of many TV programs that showcase property flipping. When doing this, your job is to purchase a distressed home, repair or renovate it and eventually sell it to a retail buyer. Though house flipping doesn’t generate a stable and constant income, you can be sure that it can provide you with a huge one-time profit.
When choosing a property to flip, you can start by buying the smallest house in an ideal neighborhood. The best communities are often near schools, supermarkets, and business offices, factors that can up the value of your flipped property. If you can rehabilitate the house and sell it at a competitive price, you can easily find potential and sure buyers.
The real estate market will continue to be in demand as long as people need properties that they can call home or turn into a business. Now that you are armed with knowledge, you can be sure that you’ll build a career out of this growing industry.