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8 Reasons Real Estate Should Be Your Next Side Hustle

By
Chase Milner
|
Sep 3, 2024
4 min
Learn More - Our ProgramEnroll Now

You need a way to make more money.

Your current job doesn't pay you enough money. You're exhausted from saving your money, pinching every penny, and enduring strict budgets, only to find out it's still not enough.

If you're like most people, you're searching for lucrative side hustles ideas that are easy to start. This is why becoming a real estate agent is agent is a great idea.

This guide will show you exactly why your next side hustle should be in real estate.

Why Becoming a Real Estate Agent is a Great Side Hustle

Working as a real estate agent is a full-time job. But it also makes a great side hustle.

The reason why so many people join the real estate industry to make money is because of the:

  • High commissions
  • Demand for real estate
  • Work from anywhere
  • Flexible schedules
  • Becoming a referral agent
  • Scalable business structure
  • MLS access
  • Gateway to bigger real estate lifestyle

Let's explore these perks to see if it works with your lifestyle.

Part-time real estate agents earn high commissions

Real estate agents work on commission and earn that commission based on a percentage of a property's sale price. That means that a part-time real estate agent can make a sizable commission.

The current average home value in the United States is $374,900. Let's figure out how much an agent earns on a home valued at the national average.

Keep in mind, all commissions are negotiable. Let's assume the agent works at a 1.5% commission rate. That means, the agent earns 1.5% of $374,900. In this example, that would be $5,623.

If a transaction closes within 30 days, that's a lot of money for one month. It's more than what some people make with their full time job!

Everyone needs a real estate agent at some point

Chances are, someone you know would like to buy or sell real estate right now. The likelihood of this will greatly increase over the next 6 months.

That's great news! That means there will be someone that you know who needs your help within 6-months. People within your network are more likely to work with you over other agents. That is because they trust you more than a stranger.

You can work from anywhere

As a part-time agent, you can work remotely from anywhere, make your hours, and have the freedom to put as much or as little effort into the gig as you want. Of course, the more you dedicate to your side hustle, the greater the return.  

When your side hustle is working as a part-time real estate agent, you have the opportunity to decide if a full-time career in real estate is right for you. If it seems like the right move, it is the safest way to transition into a full-time job as a real estate agent.

Flexible work schedule

One of the best things about a real estate career is the flexible schedule. This part is vital for side hustlers. Agents don't have strict hours they work.

Most agents work throughout the day when because they are on-call to answer questions from clients, coordinate with third parties, and to carry out admin duties.

Agents who are side hustlers often work evenings and weekends. This is conducive for clients because they too will have 9-5 jobs, and they will not be available during working hours.

You can become a referral agent

With your real estate license, you can choose to work exclusively as a referral agent. Referral Agents earn their money by referring clients to other real estate agents. 

The other agent then handles the entire transaction, and the referral agent collects a referral fee when the deal closes. The average referral fee is 20-25% of the agent's commission. All commission rates are negotiable, however.

Using our earlier example, if you act as a referral agent in that transaction, you could collect as much as $1,405.75 for a simple referral. 

That means no client interfacing, no burdensome paperwork throughout the process, just collecting a few for recommending people to other agents.

Your side hustle is scalable

What you put into the your side hustle is what you get out of it. This is great for people who love their real estate side gig because they have the power to make it their full-time focus.

The success of the agents is based on how many clients they can book. If they lead generate more, they can find more clients. This is the lever they can pull to grow their income.

Access to the Multiple Listing Service (MLS)

Being a part-time real estate agent can open the door to a career in real estate investing, and it can also be beneficial if you want to buy your own home. A real estate license gives you early access to exclusive multiple listing service (MLS) properties. 

You can also represent yourself in purchasing your own home, which means you'll be able to pocket some extra money in the form of a commission on the sale.

Gateway to a bigger career in real estate

Real estate is a big industry and agents are in a unique position. Their jobs can serve as a gateway to more careers opportunities. As I mentioned in the previous section, they can represent themselves in the transaction.

This sets up agents to be great investors. They can invest in property to flip it, to hold it for a higher price, to add renters for monthly revenue, or all three.

They can use this opportunity and flexibility to find new, exciting ways to make money. This type of opportunity can help anyone design the life they want. The only determining factor is their own drive.

How Do You Become a Real Estate Agent?

Although specific requirements for becoming a real estate agent are different from state to state, the following are the general steps that someone needs to take to start your real estate side business are:

  • Determine the specific real estate license requirements for your state.
  • Enroll in a real estate school.
  • Take your state's real estate licensing exam.
  • Obtain your license.
  • Join a brokerage.

FAQs About Becoming a Real Estate Agent as a Side Hustle

How much can a part-time real estate agent make?

It depends on the number of deals you close. Even selling one home every few months can bring in thousands of dollars.

Is becoming a real estate agent worth it as a side hustle?

Yes! The potential for high commissions, flexible scheduling, and scalable income make it a lucrative side business.

What are the costs of getting a real estate license?

The costs vary by state but typically range from $500 to $1,500, including pre-licensing courses, exam fees, and licensing fees.

Final Thoughts on Starting Your Real Estate Side Hustle

While you'll have to spend some time and money to get a real estate license and launch your side hustle, having a real estate license can open the door to opportunities well beyond your initial part-time gig. 

You are in control when you become a real estate agent, whether part-time or as a full-time career. You create your schedule, set your own pace, and even decide your role. The power is in your hands, and the potential to make lots of money is within your reach. 

Just remember, you can only get back how much you put into it, and the more time you dedicate to your side hustle, the greater the return will be.

Enroll NowGraphic showing discount are available for US Realty Training's real estate post-licensing courses.

TL;DR: Becoming a real estate agent for a good side hustle is a great way to make more money on the side. Keep in mind, it does take hard work and determination. But real estate is such a vast, open industry, you can make an incredible lifestyle so long as you have the drive.

By
Chase Milner
|
Sep 3, 2024
Sales
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4 min
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