The Top 7 Careers in Real Estate Investment

Real estate investment has consistently been a lucrative avenue for those willing to put in the time and effort to learn the ropes. Unlike traditional investment methods that often require substantial capital and credit, many real estate strategies can yield significant returns with minimal financial outlay. These methods are more akin to jobs within the real estate sector, as they typically generate income through active participation rather than passive, long-term investment.

However, it's important to note that these real estate "jobs" differ from traditional employment. They are contingent on your continuous active involvement; the moment you cease your efforts, the income stream stops. While they can provide substantial quick cash, they do not offer the sustained, passive income necessary for long-term financial freedom.

This article will explore some of the most popular real estate investment careers. One of the hurdles many face is the discomfort with handling discussions involving large sums of money. This discomfort often stems from early conditioning about what constitutes a "large amount" of money. To succeed in real estate investment, it's crucial to overcome this mental barrier and become comfortable with the idea of transacting in hundreds of thousands of dollars.

With practice, most people can learn to navigate these financial discussions with ease. Now, let's examine these real estate investment careers more closely, focusing on the potential income levels they can provide.

Property Profiling (Bird-Dogging)

Property profiling, or bird-dogging, is an entry-level real estate investment job that can yield earnings comparable to a factory worker's salary in the same region. It involves identifying potential investment properties and referring them to investors for a finder's fee.

Lease Purchase

The lease purchase strategy allows investors to control property without upfront capital, often resulting in a significant income for the time invested. Active participants can earn approximately 1.5 to 3 times more than a property profiler.

Subject To

Investors who master "subject to" deals—purchasing properties subject to the existing mortgage—can earn incomes comparable to corporate executives, with a much lower time commitment. Proper training is essential to maximize earnings with this method.

Foreclosures

Investing in foreclosures can be highly profitable, with potential earnings up to ten times that of property profilers. However, the increasing competition and knowledge required make this a challenging yet rewarding real estate investment job.

Tax Lien Certificates

Tax lien certificates represent a true form of real estate investment, offering returns of 15% or more with minimal risk. This is an excellent option for those with capital to invest, though it is still considered a short-term profit generator rather than a long-term investment.

Short Sales

Short sales require a high level of expertise and timing but can be extremely lucrative. Knowledgeable investors can earn as much or more than in any other real estate investment job.

Secondary Notes/Purchasing Equity Positions

Investing in secondary notes or purchasing equity positions is a more advanced real estate investment strategy. It requires greater knowledge to mitigate risks, but the returns can be substantial, ranging from 6% to 10% for passive investments, with even higher potential for active equity position purchases.

By overcoming the mental barriers associated with money, individuals can embark on a successful real estate investment career, starting with these jobs and eventually progressing to true, passive real estate investing.

For those interested in the financial potential of real estate investment jobs, it's worth noting that the Bureau of Labor Statistics reports a median annual wage for real estate brokers and sales agents of $51,220 as of May 2020. However, income in real estate investment can vary widely based on strategy, location, and individual effort.