By Ryan Velez
Even financial novices have likely heard the concept that real estate is one of the most efficient ways to create wealth that is both lucrative and sustainable. However, if you ask for further details than that, answers can get murky. Part of this is due to a lack of knowledge on what is out there. Most people associate real estate with either property flipping or the traditional real estate agent trying to sell people’s homes. While you can succeed in these fields, there are other niches in the larger real estate umbrella that you may not have heard of. Black Enterprise has compiled a list of some of these niches.
Some may look to dip their toes in real estate while still holding down another traditional job, whether they want to ease in slowly or just get another income stream. One great option for this is the leasing industry. Many consumers are bringing in real estate brokers to list their homes for rent. This can be good for a quick $1,000-2,000 a month with relatively little effort. So long as you qualify your potential tenant and show them properties they are desiring, you can earn your commission check in little time at all.
Another part of real estate that is worth looking into is the broker price opinion industry. Also known as BPOs, think of these as mini-appraisals. Banks often turn to real estate brokers to complete BPOs in order to get value on a property for refinancing, loan modifications, short sales, and foreclosures. These generally pay far less than a proper appraisal but are also much faster. In order to do this, you will need a real estate license and insurance, but can sign up for multiple companies and start getting orders right away once you have them.
The third potential option to make money with real estate is entering property preservation. This covers maintaining and repairing foreclosed properties. Generally, this is done by getting a contract with a servicing company to “preserve” the properties associated with a certain area that you are assigned to. If you become a primary vendor with a national company, the financial potential is huge. But with this potential comes frustration, as you will often find that there is nearly a new issue every day to deal with. Whichever of the three you choose, at whatever level of pace you choose to do them at, they can either serve as secondary income or your primary job. Decide how much time and money you have available to invest.