How to Make Real Estate a Side Hustle: Ultimate Guide

How to Make Real Estate a Side Hustle

So here’s the deal with learning how to make real estate a side hustle. Everyone says you have to become a landlord and flip real estate. That’s what everybody says, right? But no one, no one talks about how to do it without sacrificing all your free time to do it. So today, I’m gonna teach you why you need to learn about the real estate side hustle, and not by all those people offering you all those online courses trying to sell you crap.

1. Get A Mentor

two women sitting and discussing something in a laptop screen

All right, so number one, if you wanna start a real estate biz, I just recommend getting a mentor. The easiest way to go from where you are now to where you wanna be is to get somebody who’s already done it, someone who’s been there, done that, and still doing it today. You don’t wanna has been. You want somebody who actually is the real deal, doing that thing.

It’s so much easier to get somebody who’s actually been able to do that for you. Yeah, you can take all these online courses, and maybe that’s a way to get a mentor, and that’s maybe a more affordable way for you. But the best way is to have somebody there by your side helping you do that.

Now just so you know, any kind of real estate business that they talk about as a side hustle isn’t something where you just sit back and do nothing. It’s an actual business. You gotta treat it like a real business. You need to learn how to run it like an entrepreneur, run like a real business.

You can’t go in with an employee mindset, because then you need a boss, and that means you have a job. To have a real estate business, you have to have that business mindset. And a mentor is a great way to help you deal with that.

So whenever little curves or little curveballs are thrown at you, and you’re not sure what to do, a mentor can be that guy that says, “Hey, based on my experience, avoid this, or here’s what you can do.” And you can shortcut your success much faster than even your mentor did. Because they’re gonna give you all the shortcuts to their success that didn’t work for them because they made a lot of mistakes along the way.

They can help you avoid those by giving you a little roadmap and path to avoid those mistakes. So that’s the easiest way to do it. Again, nothing is online courses. And those can be great. But a mentor working with you side by side, where maybe you offer an exchange. Somewhere you might pay them money, or you split the profits on a deal.

So they have an interest because you can split the profits, but you don’t have to pay them until you make money.

2. Turn-Key Real Investor

landscape photo of house

Now, there are some other ways to be able to be in real estate, but not to use all your time and attention. If you’re the kind of person that you’re the one, you’re just too busy to have to start another business on the side and you don’t wanna lose your nights and weekends doing it; or two, maybe like me, you have no interest really in trying to start up a brand new business focus around real estate. You’d much rather be the passive investor.

Well, pay attention, these are some things you should learn. The first thing you could do if you’re trying to be more of a passive real estate investor, and having your own little side business there, is to do what’s called turn-key real estate investing.

Now, turn-key real estate investing means that you are not the property manager, you hire a property management team and that’s what they do. They do that day in and day out. They deal with all the tenant’s crap. If the tenants are ever late on payments, they’re the ones reaching out to them, not you. So you don’t have to be the bad guy, right?

You can be the person that just sits back and collects rent checks. You’re not having to check, you know, do all the cleaning checks. You’re not the person having to, you know, find out if something’s broken or not. You’re getting the calls at all hours that day, they handle all that for you. You just are sitting back and collecting the checks.

And I know it sounds too good to be true, but it really is. You’re paying for it, you still have a cost. But if you’re doing it right, the great thing with turn-key real estate is that you don’t even have to find the property. Because one of the biggest complaints I hear from people that try to start their own real estate business. They say, “Well, how do I find the properties? Where do I look? And how do I compete with all these other people in my area?

They’re trying to do the same thing because maybe they’re flippers or maybe they’re wholesalers. They’re all going after the same business. But how do I find a property?” And what I love, where I do turn-key real estate investing myself, again, I don’t want the business, I don’t have to deal with the hassle and spend all the hours having a whole nother business.

I love the fact that I can delegate that to somebody else. So a turn-key real estate company can actually help you find those deals, and they can be anywhere in the country. So you don’t have to look in your own backyard. In fact, if you’re in the western half of the United States, you don’t look in your backyard.

It’s too rich, and you make too little money on those deals to make it worth it. But if I go out in the Midwest or the southeast, I’m looking at areas like out in Tennessee, out near Memphis, for example, or I’m looking at an Alabama, or I’m looking at a Missouri or Arkansas. I mean, nobody wants to look at Arkansas. I mean, come on.

You know, we had one president come out of there with his wife, Hillary Clinton, who was the actual president. You know, nobody cares about Arkansas. But guess what? For real estate, besides Walmart, it’s awesome. There are some great places you can actually invest, even Florida. Places like that, where you could actually make good returns on your money, and it doesn’t have to take out all your savings to do it.

And so what’s great is if you have a turn-key company that’s in those areas. They’re already looking for the deal. They already know how much money you can make on that property. You just have to go in, buy it, you know, little Buy button, poop. You know, just buy that property. And voila, after maybe a few months, you’ve got a property that’s now paying your rent checks. It’s beautiful.

So that’s a great way to be able to stay hands off, yet still, get all the benefits of tax advantages and everything else you get from the real estate business.

3. Syndications

three men sitting while using laptops

Now if you wanna even go more passive than that, you can do were referred to as syndications. Syndications are where you pull your money with other investors and put it into a particular investment. Because for example, you may not have enough money to go and put the money down on a big apartment building, but you wanna invest in it. So how do you do that?

There’s not like a mutual fund that does that. No financial advisor will offer you any way to buy into an apartment building. You can’t do that. So these people, syndicators, they’re the operators, they’re the people actually go and manage the property then buy the property, they deal with all the headaches and everything. You just put your money into it.

You pull your money with all these other investors going in, and you have percentage ownership in that building. So with all the profits that go on, you get it. Now if there are ever headaches, unlike in turn-key real estate where you might hear about some of the headaches, you don’t really get any of the headaches with the syndications.

They have to deal with the headaches themselves. It’s all in the back scenes. You’re just the one that’s getting the returns off that money. And what’s even cooler is that now you’re getting the returns because of the cash flow and the profits coming from the rent.

Also, when they, down the road, decide to sell the property, just like you when you have your own property, guess what? Any appreciation that happens, you make money.

Oh, here’s the bonus by the way. When you have apartment buildings and things like commercial real estate, the more profitable it is, the more money you make on the cash flow side, and the more you can sell it for. It doesn’t matter what the property values are, it’s all based on how much profit you make.

So the more profit that syndicator makes for you, the more they can sell it on the back end, making you, again, more money. So it’s great. You know, I’ve had many people who actually started out wanting to do real estate business. I was the same way. I wanted to do real estate when I was young 28-year-old thinking I can do this and that.

But I’ll tell you, all the headaches and dealing with all the madness and messes and paperwork, it really got annoying for me. I had one guy who actually came to us, he said, “Hey, I’m managing all my own properties and I’m making $12,000 a month.” I said, “Well, that’s awesome.”

But guess what, because you’ve been spending so much time managing this, I’m looking at your properties right now, we should be selling these properties, taking the equity of those properties to buy more that are passive like in the turn-key real estate side. And guess what? Your 12,000 a month can turn into 25,000 a month. And you don’t have to manage squat. You don’t have to do crap for it.

And he’s like, “Nah, I like working hard.” No, no, of course not. Nobody wants this like, oh, yeah, I just wanna keep doing it myself. Okay, there are some people that do that, right? But anybody in the right mind would say, wait a minute, 12,000 a month working my butt off or 25,000 a month not having to do hardly anything at all? I think I’ll pick that one.

You know, even if I had to work my butt off in either situation, I’d rather make double the income. But if I can work less, while making double the income, I’m gonna take that. So that’s the crazy cool thing you could do.

And by the way, when I say syndications even when I’m talking about that topic, I’m not just talking about apartments, this could also be things like self-storage units. Because when recessions happen, especially when people have to downsize because they’re getting laid off from their jobs, or maybe real estate is getting too expensive right now, they can’t afford it.

So they rather buy some little box, basically, a hold your stuff in so they can live in a smaller place, you can invest in self-storage units. You can actually invest in things like the land with oil and gas companies leasing from you. You can do all that kind of stuff. So there are so many options that you can be doing.

There are even people that will do car washes. You know, they’ll do business syndication where they go into a business and make money from the car washes. Again, the possibilities are endless. The key is though, if you’re gonna do those things, make sure you’re investing with people that are very trustworthy. Have a great track record.

Bottomline

So just to recap, there are really three things you can do. One, you can be that real estate business, owner. If you’re gonna do that, the shortcut to getting success faster is getting the right mentor, getting someone who’s been there, done that, and still doing it today.

However, if you don’t want another part-time business or side hustle or job, and you wanna go more on the passive side, and you wanna get your money working for you instead of having you use all your energy and time working for it, then you can do either turn-key real estate investing, where again, you don’t manage the property but somebody else does it for you but you own and control it.

Or the second one is you can do something like syndications. We can invest in apartment buildings and things like that, and make money without you having to deal with all the tenants, the toilets, and the trash. I would love to hear your ideas. What kind of real estate things have you done and that you’ve enjoyed? Put that in the comments below.

Also Read:

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10 Tips for Saving More and Spending Less

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