Real Estate Side Hustle: The (ULTIMATE) Guide

Ever since the pandemic broke out and full-time life behind the Zoom screen became a reality, investors - professional and amateur alike - have been seeking out ways to make a little extra cash with their spare time.

Perhaps you are looking to ditch the 9-5 mentality we’ve grown up to believe in. Perhaps you are looking to scrape out a couple of extra bucks to make ends meet and help weather the Covid storm. Or, maybe you are just looking to tap into a new industry and make a nice return while contemplating your next professional move.

Regardless of your intentions, one of the ultimate side hustles out there you need to consider is within the real estate market.

Interested in learning more about real estate side hustles? Here's what you'll learn:

• What Is A Real Estate Side Hustle?
• Is Real Estate A Good Side Hustle?
• What Are Real Estate Side Hustle Ideas With Little or No Upfront Investment?
• What Are Real Estate Investing Options To Earn Side Hustle Income?
• How To Make Real Estate A Side Hustle
• Final Thoughts On Real Estate Side Hustles

What Is A Real Estate Side Hustle?

A real estate side hustle is a job, investment, or any income-producing business venture stemming from the real estate industry that provides excess cash-flow to an individual that otherwise has a different full-time obligation.

Anyone and everyone can participate in a real estate career side hustle. With a little guidance, grit, and determination you can potentially reach a point where your side hustle can actually drive more money to your pockets than your full-time job.

A few examples include:

• Teachers with income-producing real estate rentals that help pay for their bills not covered by their salary.
• Accountants that also manage some short-term Airbnb houses part-time.
• Full-time maids and sanitation professionals who also operate real estate photography companies on the weekends.
• Full-time students that work on residential real estate brokerage and showings in between classes.
• Retail associates that have a portfolio of REITs dishing out monthly dividends to help pay for expenses.

The possibilities are endless and the barriers to entry are so low that anyone with a computer and an internet connection can work a side hustle in the real estate industry.

Real estate is an industry that is froth with opportunity and potential. There are so many ways to break into the market and make a sizable return or commission for your work - all while sitting in the comfort of your own home.

Technology has offered the world an opportunity to make more money, achieve financial freedom, and build something incredible within the real estate space.

It is up to you to seize the opportunity and make something of it.

Time to get started.

Is Real Estate A Good Side Hustle?

Absolutely! There are many types of side hustles out there, so what makes a real estate hustle such a good one? I believe the answer lies in one word: opportunity.

Real estate is an industry with an abundance of opportunities for both amateur and professional investors. Historically, it's proven to be the most reliable way for average people to become millionaires, even as just a part-time side hustle.

The industry spans numerous professions and sectors ranging from residential to commercial, lending to investing, rental brokerage to investment sales, real estate wholesaling to flipping, photography, blogging, and even passive REIT income.

The sheer volume of opportunity - at little to no upfront costs - allows for the curious hustler to pick one of many options available at his or her fingertips.

So, what are these real estate side hustle opportunities?

What Are Real Estate Side Hustle Ideas With Little or No Upfront Investment?

There are quite a few real estate side hustles that are easily picked up with very little capital investments needed. These include becoming a real estate agent, a real estate wholesaler, a bird dog, a property manager, a house flipper, a real estate photographer, or a notary.

All of these are great sources of extra side income for those of you who have a little time to spare and a desire to rack in some extra cash.

Real Estate Agent

A real estate agent is someone who connects buyers and sellers in a real estate transaction in exchange for a commission. In order to become a certified agent, you’ll need to get a real estate license in your state first. Once you accomplish that, the sky's the limit as to what you can achieve.

The beauty of becoming an agent is that you get what you put in. The harder you work the more connections you’ll make and the more deals you’ll close. The job is primarily cold calling, networking with other real estate professionals, and scoring through the MLS, Zillow, and other sites filled with buyers and sellers.

Typically, brokers will take home anywhere between 2% and 6% on a real estate transaction. So, if you help a homeowner sell a $500,000 house, you’ll make $30,000 right there for making the connection.

Usually, brokers work under an umbrella company such as Compass or ReMax that provides resources such as referrals and virtual assistants to help with sourcing deals. It could be a great start to reach out to one of these companies and get ahold of any training programs they might have available.

At the end of the day, it comes down to time.

If you have a few extra hours a week, becoming a real estate agent is a great place to make a side hustle.

Plus, you’ll learn a tremendous amount along the way.

Real Estate Wholesaling or Bird-Dogging

Wholesaling is probably the best and most efficient way to make money as a side hustle. Being a wholesaler costs zero money and success isn't out of the picture for someone with little to no experience.

Real Estate Skills offers a comprehensive training program that has helped hundreds of people achieve financial freedom through wholesaling properties. Definitely check that out when you have a moment.

So what does it mean to wholesale and bird dog?

Wholesaling and bird-dogging is the act of being a middleman and connecting buyers with homes they’d like to purchase as an investment.

Typically, wholesalers will score the market to find attractive foreclosures, auction listings, and beaten-down homes and present them to potential investors within their network. If the investor wants to purchase the home as an investment, the wholesaler gets a cut of the purchase price.

Being a wholesaler is essentially flipping a purchase agreement contract over to investors that wouldn’t otherwise find the unique opportunity. I assure you, you don’t even need to leave your bedroom to become a great bird dog in real estate. All you need to do is build a strong network and help investors find the winning properties. The rest will take care of itself.

To say that you can manage a wholesale real estate side hustle in your spare time is an understatement. This is probably the best side hustle in the real estate industry. Educate yourself, your pockets will thank you later.

Property Management

Property management is a great real estate side hustle.

Generally, property management consists of maintaining all things related to real estate rentals in exchange for a monthly fee. The vast majority of the work doesn’t take much time, but it will pay handsomely.

Tasks you might be asked to perform include finding a tenant, routine maintenance requests, and collecting rent. Barring any major repairs or property setbacks, property management can be put on cruise control. If you find a good tenant, create a strong relationship with your clients, and hire a superintendent to perform the maintenance around the property, you can sit back behind your computer and collect 8% - 10% of the monthly rent.

It sounds easy, and - quite frankly - it is as long as you work hard creating a large network of strong tenants and happy clients. The best in the game can manage 10+ properties while spending minimal work on the nitty-gritty.

It is definitely worth a look for the aspiring side hustler!

House Flipper

House flipping is another great side gig to work on within your spare time. The task will cost a little bit more money than some other side hustles, but if you know what you are doing it can prove to be extremely lucrative.

While you’re working on your 9-5 job, set up meetings with general contractors and score the market for good auction deals. If you find a great opportunity, you can work after hours or on the weekends with your contractor (or yourself if you are handy) and flip a house.

However, depending on the market you live in and the surrounding home prices, you might have to seek out partners in different cities. Regardless, with the right partners and the right price, you can make a killing.

And, if you’d prefer not to invest the money yourself, find some key financial partners to front the money while you take an equity split for doing the work.

House flippers can make anywhere from a few thousand bucks to tens of thousands of dollars, all while keeping most of your attention locked-in on your regular day job.

Real Estate Photography

Real estate photography is another great side hustle. Obviously, in order to do this one, you’d have to be a talented photographer. If that’s you, I’d definitely consider looking into the various options available.

Photographers can make anywhere from $100 to $1000+ taking photos for real estate listings. A great way to gain access to some of these opportunities is to either work for a photography shop on the side or reach out to various brokerage firms looking to list properties.

The beauty of the hustle is that you can take shots for both residential rental listings and home sales - making the opportunities to cash in on some extra side income even more robust.

Also, these photos can really be taken any hour of the day. If you have a contract with a homeowner for a listing, you can slide out of your house during your lunch break or after hours and snap a couple of shots in your spare time - a great way to make extra cash.

Notary

Becoming a certified notary is another great way to get involved in the real estate side hustle.

With the ease of purchasing homes and getting mortgages from anywhere and everywhere, traveling notaries have become increasingly in demand.

Now that you can get a mortgage on a residential property with a few clicks of a button through Quicken Loans or other services, you’ll need to find a notary in your location to close the deal.

The days of going to the bank for a loan and having a notary on-site are over.

A traveling notary is a trustworthy and licensed individual that certifies the transaction as compliant with state rules and regulations. Generally, they’ll get paid a few hundred dollars for 30 minutes of work and stamping some documents. Seems pretty sweet to me.

All you need to do is pass a certain set of guidelines and you could be on your way to making a nice amount of money every transaction you notarize.

So, who wants to be a notary?

Check out this great short video about becoming a notary and some available resources.

What Are Real Estate Investing Options To Earn Side Hustle Income?

Real estate investing is another great way to gain exposure to the side hustle aspects of the real estate industry. Some examples include REIT investing, house hacking, fix and flips, and real estate rentals.

Although each of these opportunities requires different time commitments, they all can prove to be very profitable.

Investing in a REIT

A REIT - or a Real Estate Investment Trust - is a security that trades on the stock market like any other type of stock. Investors have the ability to trade in and out of the REIT every moment of every day (as long as the stock market is open) through brokerages like Schwab, Robinhood, and TD Ameritrade.

Unlike other stocks that represent businesses, REITS represent real estate companies that have underlying real estate exposure.

You can purchase a REIT that is heavily invested in office buildings or strip malls. Or, you can invest in a REIT that has exposure to single-family homes or international self-storage facilities. The diversification possibilities are endless because there is truly a REIT for everything.

The beauty of a REIT, however, is that they are required to pay out 90% of their earnings as dividends on a quarterly or monthly basis. Usually, these stocks have 6%+ dividends that can hit your account every month and be used as a side income.

If you are looking to get exposure to the investment side of real estate, a REIT is a great place to look.

House Hacking

Another great way to invest in real estate as a side hustle is house hacking.

If you have an extra bedroom in your house, a vacation home, or a condo out in a different city, it might be wise to list them on Airbnb or VRBO.

Although you might think some won’t want to rent out a room in a stranger's home during a national pandemic, you would be surprised to see the short-term rental market has done quite well during this time.

For starters, people are working remotely and want the flexibility to see new cities and change the scenery a bit. And, they want to travel while on a budget. Listing your home can prove to be extremely profitable and a great side hustle investment.

Buying Houses to Fix and Flip

Buying houses to fix and flip has always been a tremendous way to make side income. Although you’ll need a little extra cash for a down payment and to front the renovation bills, in the end, you can truly make a killing.

Check out websites such as Zillow, Trulia, and the local Multiple Listing Service (MLS), reach out to various brokers in different cities, and abide by the 70% Rule. Building a team of deal sources, contractors, and investors can also be a great way to leverage talent and boost returns.

If you play your cards right, you might just find yourself turning a $50,000 investment into $75,000 - all while sitting behind your computer screen on your living room couch. The dream. 

Purchasing a rental investment property and becoming a real estate investor is a tried and true way of making a side hustle income. Depending on the market you invest in, you can potentially earn 10%+ returns while essentially doing nothing.

Costs include the 25% down payment on a rental property, any up-front repairs, Realtor fees to find a tenant, and voila, you are set to make money every month.

I’d recommend getting a property manager if you want the property to be truly passive.

They’ll take care of all the rent collecting, maintenance requests, and tenant turnovers. All you have to do is make sure the Potential Gross Income - i.e. the rent coming in - exceeds any expenses such as real estate taxes, utilities, and insurance.

After that, it's smooth sailing the rest of the way.

Outside wholesaling, real estate rental investing might be the holy grail of real estate side hustles.

How To Make Real Estate A Side Hustle

So, how do you put it all together?

At Real Estate Skills, we believe the most important factor in establishing a strong real estate hustle is having the right mindset.

Without a proper self-assessment of your abilities, financial situation, and time availability, you’ll never be able to get off the ground.

Before jumping into a real estate venture, look yourself in the mirror and envision what you’d like to become.

Are you looking to make a couple of extra bucks a month to pay for some beer and pizza with friends or are you looking to create an entirely different side business to expand your interests and make a few thousand dollars?

Are you doing it to pique your interests in short-term rentals or house hacking or are you looking to eventually quit your full-time job and flip houses full-time?

There is no right or wrong answer, but you must be honest with yourself. As long as you have the right mindset you can really do anything.

Final Thoughts On Real Estate Side Hustles

There are so many ways out there to make money as a side hustle in real estate. You don’t have to be a financial guru to work out ways to scrape some extra cash to help make ends meet.

Educate yourself and dive right in. We have some great resources on our website and incredible courses in the real estate investing and wholesaling space that could prove to be extremely lucrative for you.

Listening to freelancers, bloggers, personal finance podcasts, and reading books is a great place to start. Although it might be scary, take the plunge. You’ll be happy to see yourself achieving financial independence and earning extra money on the other side.

Good luck!