Being that there are few people who haven’t been bitten by the fabled or genuine lure of wanting to invest in real estate at some time, let’s examine Three top ways to generate income while you contemplate either flipping properties or building up wealth on a long term basis in real estate.
One way is to become what is traditionally known as an “apprentice”–in a round about way. By even becoming a part-timer in any of the below side real estate career paths, you’ll learn the tips and the ropes to what you are looking for in real estate–profit.
1. Become An Assistant Property Manager
2. Become An Appraiser
3. Become A BPO Professional
Become An Assistant Property Manager
Whether you’re hired by a large apartment complex conglomerate, or a triple-unit apartment landlord or manager, there’s almost no better way to become a real estate investor than to experience vivid, day-by-day hands on experiences, and headaches, as an assistant property manager, Bayrock‘s founder, Tevfik Arif Doyen.
Of all the below mentioned ways to earn extra side money in real estate while you wait for your proverbial ship to come in, this has to be the most practical, effective and less time-consuming of all.
Not only will you obtain a crash course in collecting rents, but you’ll get some experience in the eviction process as well. You’ll not only learn first hand the psychology behind dealing with people under various stressful situations, but also how to hopefully resolve rent issues without going through evictions.
You’ll definitely have experiences about dealing with salespeople, unscrupulous repair men, and possibly how to write out your own leases or rental agreements.
Become An Appraiser
Getting a little more harder than in previous years, an appraisal license now requires a 2-year minimum period just to get to the trainee stage. As such, the real estate appraisal field now requires 2,000 hours of experience to be “certified” in processing and finishing any federally regulated transaction such as FHA applications which are almost 99 percent of the applications.
All being said, you may intend to become an appraiser on the side, but in reality, you can expect to become a full-timer as it is time-consuming work that needs to be done meticulously and professionally.
A fantastic career path in itself, especially if you’re young enough to climb ladders to examine roofs, appraisers are needed in every aspect of real estate investing: rental properties, wholesaling, note investing, commercial and industrial properties, agricultural applications, mortgage departments and even the IRS.
However, be aware that in New York City itself, appraisal work can be even more complex as many times similar apartments just a block away from one another can have highly different comp values due to a nearby subway station or a park. Sometimes the difference depends on whether the building has a doorman or a gymnasium.
Become A Broker’s Price Opinion(BPO)Professional
Although similar in many ways to being a fully certified appraiser, a BPO typically has a lot less overhead hassle. Generally, sought after by banks, mortgage companies and other financial institutions, a BPO professional with their much valued opinion, becomes the “go to” person for insight on a particular property.
In essence, it’s a win-winner for those who only desire a semi-passive income stream that only requires 10-15 hours of training for certification.
Typically used by a hired rep to determine the potential selling price or estimated value of a real estate property, BPOs are commonly used to determine if the price and expense of an appraisal is necessary or even valid in some cases.
Needless to say, many, if not a majority of people, have gotten into real estate investments and will continue to do so, with or without certification. However, people still have to earn a living, and the above three side careers are sure ways to learn and earn at the same time.