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What can you do with a real estate license?

Posted by flparkplacerealty on April 3, 2018 at 3:30 PM

You can make money in numerous ways by having a Real Estate license. We list several ways to make money in Real Estate below. 

A real estate license is always a good thing to have even if you do not use it much. Like working with a real estate referral company in which is what we do here at Park Place. Even if you work in another industry but happen to have a real estate license, you can refer anyone that you know who is looking to buy or sell any type of real estate, anywhere in the world. We will match them with a top agent who will handle everything for you, and since you have a license you can legally earn a portion of the commission (22.5% of the commission to be exact) as a referral fee.


But what if you want to sell real estate full-time? Here are a few avenues in real estate that you can sell by having your real estate license.


Residential Real Estate:

The majority of real estate agents are in the residential real estate sales market. There is a lot of competition, but there is also a lot of homes that need to be purchased and sold, 62.9% of all Americans currently. The average real estate commission that you will make selling a home is 3% of the total purchase price of a home on the buy, or the sell side of the commission. A $500,000 home will net your company $15,000, but keep in mind the company that your license is held under will often take their cut off the top of this commission. Residential real estate is a good avenue as everyone, regardless of your marketing skills, has a friend or family member looking to buy or sell a home. If your friends & family like & respect you, then they will use you to buy or sell a home.


Commercial Real Estate:

Commercial real estate can vary widely as there are multiple avenues that you can go into like selling offices, retail, industrial, multifamily or hotel’s. There are the main categories that commercial can fall under. Commissions in commercial real estate vary from 3-10% of the total purchase price. Commercial real estate still has an old feel in many markets, if you can bring a young vibe in the market with new ideas on technology, you might find a great niche with commercial real estate.


Business Brokerage:

In the U.S., there are currently around 27 Million business owners. As a real estate agent you have the opportunity to sell these business like you would a house. You would go in and assess the value of the business and then market and facilitate the sale with a potential buyer. Typical sales are around 10 Million dollars or less as anything above that cost, the business will typically employ firms that specialize in mergers & acquisitions. Business brokerage is a great niche to get into in real estate that typically sees low competition of other agents. If you understand the concept of how businesses are ran and are good at marketing yourself, this could be a great field for you to get into.


Property Managing:

Agents like the idea of property managing as there is a great benefit to receiving residual income, which is not normal in real estate. Property managers typically earn the first month’s rent and then 8-12% of each month’s rent on a steady basis. Property managers have to market the property to find a tenant, manage the accounts of each property, and participate in the litigation with the tenants and contractors who maintain the property. This field could qualify for residential or commercial real estate.


We hope we gave you some ideas on how getting your real estate license could benefit you. See our blog here on getting your license. As we mentioned above, if you are not interested in working real estate full-time, it is always good to have your license. Most people run into several friends and family throughout the year who are looking to buy/sell or rent out some type of real estate throughout the year. If you have your license with us, you are able to make a portion of the commission by just referring them out to someone that does sell full-time, anywhere in the world. Go to our website www.ParkPlaceNetwork.com to get more details.


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