Real estate as a side hustle: A brief guide
Investing in real estate as a side job is gaining popularity as the real estate markets are predicted to keep growing even in light of the economic ramifications of COVID-19.
But first, let us see why you want to try a side hustle?
There comes a point in all our lives where the mundane routine of our 9 to 5 jobs frustrates us and we start looking for something else to engage us. Something that keeps us motivated and is also a chance to earn a few extra bucks.
The answer to this is the trendy buzzword side hustle. There is no dearth of available opportunities when it comes to a side hustle. I am sure you can find at least 1 out of every 3 persons in your social circle who is trying their hand at earning a little more every day.
This article is aimed to give you a brief insight into what real estate investment is and if it is a good choice as a side hustle.
While many people wish to invest in real estate due to its high profit margins, they often don’t follow through with the idea because it is believed to be time-consuming, expensive, and risky. But, with good research and proper due diligence investing in real estate can be one of the best side hustles you can try.
Making the right choices at the right time
Any real estate investor will tell you that timing is everything in this arena. Real estate requires you to invest, sit back, and earn great returns when the right time comes. If you choose the right property at the right time, you stand to make good profits.
It is important to study the markets to know the right time to make the jump. Read about Southeast Asia Real Estate Markets here.
Diversify your portfolio with the endless prospects of real estate markets
Like any other investment opportunity out there, real estate comes with its fair share of risks. A viable solution to this is aiming for a diverse portfolio. Real estate investment comes with various aspects for you to explore.
It is not just about buying and selling properties. There are rental, house flipping, and vacation rentals such as Airbnb management and many more. These various facets of real estate investment are an excellent starting point for a side hustle as it allows you to start small with less capital.
Unlearn and relearn about the real-estate markets
Although it may seem quite tempting to jump right in, taking time to understand the field is crucial to get rid of any misconceptions you may have regarding the nitty-gritty of real estate. Understanding the ins and outs of the real estate market works should be the center of this exercise.
Take time to read, catch up on the trends, and network with people involved in this work. You can get an idea of what to expect when traversing through this new world of real estate among the veterans of the field.
Partner up and start small
The power of large numbers never fails! Finding the right partner(s) for your new venture can double your investment capital and halve your efforts and risk. Having a team to rely on can make real estate investing as the side hustle much trouble-free.
Look for accountants, lawyers, contractors, and other investors who will be willing to partake in the burdensome work, and together you can create anything possible as a team.
Experiment and keep growing
Once your side hustle picks up, investing in real estate is a rather flexible business as it doesn’t require you to work on it day after day. Get as comfortable as you can with the debt, which is an essential part of real estate investment, and you can start experimenting with the types of properties you target and expand your portfolio.
With every step up in this investment, don’t forget to pause and assess your business. Determining risk tolerance after every few steps and keeping a balanced portfolio is necessary to keep the business up and running.
Like any new business and investment real estate investment is not immune to initial hiccups. Learning from mistakes is the only way to move forward and make big in this field.
Granted that real estate investing requires more effort than any other side hustle, but no other side hustle provides an earning potential as huge as this. Side hustles are your answer to financial freedom and real estate can surely pave your way for it. It can be the ultimate game-changer that you have been looking for.
Frequently Asked Questions
1. Is real estate investing a good side hustle?
- Indeed yes. Real estate as a field of investment comes with ample opportunities for good and easy investments. This is why real estate is a superb industry for supplementing your regular income.
2. Can you be a real estate agent as a side job?
- A real estate agent is a popular side job taken up by many. The job is flexible with timings and provides good earning potential. You can work independently and contract with a real estate firm for gigs.
3. How do real estate agents make money on the side?
- Real estate agents make money on the side through commissions. This is why working real estate agents are recommended to start investing in real estate as a side hustle.
4. Is real estate a good career in 2021?
- Although the markets have been fluctuating due to the COVID-19 pandemic, the industry has picked up majorly since the lockdowns have been lifted and provide a good opportunity for a side hustle.
5. How do I start investing in real estate?
- Identify your capital
- Pick a market/niche
- Make a strategy plan for at least a year
- Look for sources to finance your initial investments
- Find a partner to lower your risks
- Reserve cash for a down payment