You don’t have to be a professional with a license to make money in real estate. You can simply become a real estate investor and reap the benefits that professionals such as agents and brokers receive through their jobs. In fact, there are many ways to make money in real estate with no license as an investor. Before we explore some of the different ways, let’s go over how to become a real estate investor first.
Related: How to Start a Rental Property Business
How to Become a Real Estate Investor
Educate Yourself
Knowledge is power. So before becoming a real estate investor, you need to learn the numbers and learn what it means to crunch them. What makes a deal a good one or a bad one? Getting a copy of real estate books, and reading through blogs or magazines will help expand your knowledge of real estate investing. You can also sign up for various courses to gain real estate experience and meet other real estate investors. This is a great way to share and listen to opinions about the best real estate investments. Taking courses will also help expand your real estate network.
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Put a Basic Team Together
You will want to partner with a property manager, loan officer, and realtor. If you don’t want to manage the property yourself, find a property manager that specializes in investments. You should focus on someone that has a history of doing leases or lease options. The same thing should be said about your loan officer – focus on an officer that specializes in working with real estate investors. More specifically, you will want someone who understands mortgages that are more geared towards investment properties. Lastly, your realtor needs to know how to spot good deals. They should have experience in investing.
Decide on Your Strategy
Decide on which types of properties you want to target and at what price range. You should also determine the exact real estate investment strategy you want to implement and create a winning game plan. Once that is determined, look for investment properties that only match your criteria. Start by exploring one of the following 6 strategies:
6 Ways to Make Money with Real Estate Without a License
There are a number of jobs in real estate without a license but a real estate investing career is really the best option. As mentioned, you can teach yourself how to get started and start making money almost immediately after you purchase an income property. Below are a few strategies for how to make money in real estate with no license.
Rent Out Your Old Home
Perhaps you couldn’t sell your first property at a fair price so you ended up stuck with more than one property as you moved to your new house. If you do have more than one property, you can rent out your old home instead of leaving it vacant. By doing this, you will make rental income every month that pays for your real estate while it appreciates.
Do a Live-In Flip
This is a great option for adventurous real estate investors. It’s also a good option for real estate investors that are interested in selling real estate without a license. It entails buying an investment property that requires a complete overhaul before selling it for a higher price, giving you a bigger profit. If you don’t mind living in a construction zone 24/7, this option is ideal for you.
Buy an Investment Property and Rent It Out
Another great way for how to work in real estate without a license is to simply buy an investment property. Buying your first rental property should be planned accordingly. Make sure the property you are buying will give you a solid positive cash flow. You can do this by buying the property for less, increasing the rental income or a combination of the two.
Start looking for and analyzing the best investment properties in your city and neighborhood of choice.
Related: 10 Steps to Buying Your First Rental Property
Wholesale Real Estate
You don’t have to buy an investment property to make money. House wholesaling is a great way to invest in real estate without a lot of capital. You can find a property that you can put under contract at a lower amount. Afterward, sell or assign the contract to a renovator for more money, making a profit. Real estate investors can wholesale since they are selling the contract of the purchase, not the property itself. With that said, some states still see this as “acting as an agent” so be sure to research your state’s laws before you work in wholesaling.
Partner with a Trusted Real Estate Agent
Making money in real estate without getting a license is not that far-fetched. You don’t have to become a real estate agent to gain access to valuable real estate insights. Although you don’t necessarily have to find a real estate agent to buy investment properties, partnering with one that has access to Multiple Listing Services (MLS) is a good decision. This property system gives you access to data related to deals that are currently active for sale as well as deals that have sold, been withdrawn, expired, or are currently pending sale. It makes it easy for you as a real estate investor to analyze the housing market and see average prices for different zip codes and neighborhoods. All of this information can help you make smarter real estate investment decisions. If you don’t have the time or money to obtain a license, you should look into finding a real estate agent who has real estate experience. Having access to experts will help you complete your property search much faster. You will also see a good return on real estate investment.
Invest in Short-Term Rentals
More and more people are looking for hotel alternatives as they travel. The rise in vacation short-term rentals provides you a great opportunity to make money without a real estate license. Focus on areas that are in high demand for rentals such as cities, college towns, and popular tourist destinations. Short-term rentals also usually yield higher occupancy rates, especially during high demand seasons.
Related: The Best Places to Buy a Rental Property for Short Term Rental Strategy
To Sum It Up
These are some ways on how to make money in real estate with no license. Investing in rental properties is a lucrative form of income and if done correctly, can give you consistent access to money for you and your family. If you want to make it your primary source of income, you might consider getting a license. However, it is not impossible or extremely difficult for you to continue practicing real estate without a license.
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