Passive income is the holy grail of income earners. It’s regular, reliable, and doesn’t require you to trade your time for money. Passive income is what allows people to retire early or quit their day jobs and work on their own terms. For real estate agents, passive income can be a life-changing opportunity.
But what is passive income? Passive income is defined as any form of revenue you earn that doesn’t require active participation on your part. That could mean rental property, royalties from book sales, or dividends from stocks you own. Passive income streams are a great way to build long-term wealth, and they’re perfect for anyone who wants to achieve financial independence.
If you’re looking for ways to create passive income as a real estate professional to fund your dream lifestyle, this guide has 16 great passive income ideas for realtors who want to build sustainable wealth and a life of time and money.
16 Passive Income Ideas for Realtors:
- Investing in Rental Properties Actively
- Investing in Rental Properties Passively
- Become a Passive Money Lender
- Affiliated Business Partnerships
- Referrals to Other Agents
- Building a Team of Agents
- Starting Your Own Brokerage
- Recruiting Real Estate Agents
- Blogging
- YouTube
- Earn Royalties from Book Sales
- Creating and Selling Online Courses
- Network Marketing
- Ownership and Equity in Profitable Businesses
- Dividends From Owning Publicly Traded Stock
- Start a Real Estate School
Want To Build Financial Freedom as a Real Estate Agent? Let Us Show You How! Click a below to Learn More About the Opportunity to Partner with Our Incredible Group That Is Helping Real Estate Agents Around the World Build a Lifestyle They Never Need a Vacation From!
1) Investing in Rental Properties Actively
As a realtor, you’re in a unique position to invest in rental properties. Not only do you have the knowledge and expertise to help tenants find the perfect home, but you also have insider knowledge of the market that can help you make smart investment decisions.
Investing in rental properties is a great way to create passive income. Not only will you earn regular rent payments from your tenants, but you’ll also see the value of your property increase over time through appreciation.
And unlike stock market investments, rental properties are tangible assets that you can see and touch (you should know this better than anyone). That makes them a great investment choice for anyone who wants to build long-term wealth, especially realtors.
2) Investing in Rental Properties Passively
Aside from investing in rental properties actively, realtors should also consider investing in crowdfunded real estate or syndications as passive partners.
First, this is a great way to get started in real estate investing with little money down. By pooling your resources with other investors, you can spread the risk and make it easier to afford high-quality properties.
Second, by investing as a passive partner, you’ll have less work to do. You won’t have to worry about finding tenants or managing the property yourself—the crowdfunding platform will do that for you. This leaves you more time to focus on your sales business and grow your income stream so that you have more money to invest.
Third, by investing in crowdfunded real estate or syndications, you’ll get access to high-quality, institutional-grade properties. These are the best rental properties on the market—and by partnering with experienced real estate professionals, you’ll have access to them at a great price.
3) Become a Passive Money Lender
One way for realtors who do not want to spend the time managing and investing in their own properties to create passive income is by lending money to real estate investors or real estate flippers. This can be a great way to earn regular interest payments and see the value of your investment increase over time.
Of course, to lend money in this way you’ll need to be the kind of person who is willing and able to do some research and take on some risk.
You’ll want to find investors or flippers that are likely to pay back their debts on time, so doing your homework will be essential.
But by lending your money in this way, you can passively earn interest payments while avoiding the headaches involved with managing rental properties for tenants.
4) Affiliated Business Partnerships
Realtors work with and know many vendors. That is why one of the easiest ways for realtors to grow a residual income stream is by affiliating themselves with companies that offer kickbacks for referrals.
For example, many insurance providers and title companies offer rewards to realtors who send them business.
By partnering with these companies, you’ll be able to earn residual income from the business they do with your clients. This is a great way to make extra money without having to do any extra work.
Of course, it’s important to partner with reputable companies that offer high-quality services. That way, you’ll be able to ensure the satisfaction of your clients and maintain your good reputation in the industry.
Also, make sure that you are always in compliance, and disclose your partnerships with these service provider companies when you are referring them to your clients so there is full transparency.
5) Referrals to Other Agents
One of the least talked about but best ways for real estate agents to create a passive income stream is by referring clients to other realtors.
In fact, this income stream is so popular amongst certain influential realtors that they have been able to replace their entire production income with their referral income.
When you refer a client to another agent, you are essentially helping that agent generate a lead. If that agent is able to close the deal with your client, you will earn a percentage of their commission from that sale.
This is a great way to create a residual income stream where you can leverage your influence and experience as a real estate professional. And since you’re likely to know many other agents in your area and around the country, it’s easy to start building a network of referrals.
Just be sure to only refer clients to agents who you trust and who offer high-quality services. That way, you can be sure that your clients are getting treated well and that the agents who get your referrals are actually able to close the deals so that you can earn the referral check.
6) Building a Team of Agents
Real estate agents are self-employed, which means that they only earn money when they trade their time for money.
Business owners, on the other hand, leverage other people’s time to earn money.
One of the easiest ways for realtors to go from self-employed to business owner is by building a team of real estate agents to sell real estate for them.
When you build a team of agents, you are essentially creating a sales force that will work for you to generate leads and sales. Not only will this help you to increase your production, but it will also help you to free up more time so that you can focus on other important aspects of your business such as growth or use that time to spend with your friends/family.
Also, by having a team of agents working for you, you’ll be able to create a passive residual income stream. That’s because you will earn a commission on the sales that your team members generate.
So, if you’re looking to create a passive income stream as a realtor, consider building a team so that you can replace your personal production income.
7) Starting Your Own Brokerage
If you’re a realtor who is looking to build a team of agents, an alternative to that is starting your own brokerage.
When you start your own brokerage, you’ll be able to provide your agents with the tools and resources they need to be successful. This includes things like office space, marketing materials, and training.
Plus, by starting your own brokerage, you’ll be able to keep more of the commission income that your agents generate. That’s because you will not have to pay a commission split to another brokerage when the agents on your team close a deal.
Of course, there are some initial costs that come with starting your own brokerage. But, if you’re willing to put in the work, it can be a good way to create a passive income stream as a real estate professional.
8) Recruiting Real Estate Agents
One of the best alternatives for real estate agents that want to create a residual income stream from owning a brokerage or team but do not want to risk their time and money into starting a company is by recruiting other agents to your current brokerage.
When you refer an agent to a brokerage, you are essentially helping brokerage grow and become more profitable. If that agent is able to close deals at your brokerage, your broker will get a percentage of their production and therefore make money off of their efforts.
This is why some real estate brokerages offer financial incentives to the agents at their brokerage to refer or recruit other agents to their company, paid in the form of monthly residual income.
As a successful realtor, you probably get asked all the time by your friends who are starting in real estate or other realtors who are looking for a change what brokerage to join. Most of the time, agents will refer them to the brokerage that they are currently at.
If you are already referring other agents to your brokerage, why not get paid for it?
And, the best part is that you will be able to do this with very little risk since you do not have to invest any money of your own!
Look for brokerages that offer agents incentives for recruiting other agents to their brokerage.
This is definitely something to consider for real estate agents who are currently working on a team and want to create a residual income stream without having to take the leap and start their own brokerage.
Want To Build Financial Freedom as a Real Estate Agent? Let Us Show You How! Click a below to Learn More About the Opportunity to Partner with Our Incredible Group That Is Helping Real Estate Agents Around the World Build a Lifestyle They Never Need a Vacation From!
9) Blogging
Blogging can be a great way for real estate agents to not only market their services, build their personal brand, but also create a passive income stream.
When you start a blog, you can write about topics that are relevant to real estate professionals such as how to be successful in the industry, market trends, or tips for home buyers and sellers.
Plus, by writing helpful content on your blog, you’ll be able to attract new readers who may be interested in working with you as a realtor.
A great way to monetize your blog is by adding advertising or affiliate links. When someone clicks on one of your ads or affiliate links, you will earn a commission on that sale.
So, if you write a blog post about how to choose the right realtor, you can add an Amazon affiliate link in your content. If someone reads that blog post and decides to purchase a book on choosing a real estate agent from Amazon, you will receive a commission for it!
While blogging is not going to make you rich overnight, it can be a great way for real estate agents who want to create passive income streams of their own while also marketing their services and building their personal brand.
10) YouTube
If you don’t want to write a blog, a great alternative to that is to start a YouTube channel.
Just like blogging, a YouTube channel is a great way to not only share your real estate content with the world, attract new clients, but also make money from advertising revenue.
When you create a channel, be sure to add videos that are helpful for home buyers and sellers. This could include tips for buying or selling a home, market updates, or agent interviews.
You can also use your channel to promote your services and drive traffic back to your website or blog.
In order to make money from your YouTube channel, you’ll need to enable monetization. This will allow you to earn money from ads that are displayed on your videos.
To start making money from your YouTube videos, you will need to reach 1000 lifetime views or have 4,000 subscribers.
YouTube is also a great way for you to promote any affiliate products or services that you are partnered with as well as a way for you to promote any products such as courses or books that you have created to sell to other agents.
11) Earn Royalties from Book Sales
As a real estate agent, you have a lot of knowledge and experience to share with the world. Why not share it in the form of a book?
Writing a book is a great way for you to share your knowledge and expertise with other agents or consumers. Not only will you be able to help others learn more about real estate, but you’ll also be able to build your personal brand and establish yourself as an authority in the industry.
Plus, if you write a good book, you may be able to earn royalties from book sales!
There are a few different ways that you can go about writing a book. You could write a book on your own, hire a ghostwriter, or work with a publishing company.
Whichever route you go, be sure to write an informative and helpful book that is unique and will make people want to read it.
If publishing a traditional book seems like too much of a hassle or you want to make more money from your work, consider self-publishing on Amazon Kindle by creating an Ebook.
On top of it being a potentially passive income stream, having a book is also a fantastic anchor for you to give to your leads and clients as a way to remember you instead of leaving them your business card like all other realtors.
12) Creating and Selling Online Courses
Real estate agents who are successful or possess a certain valuable skillset can create and sell online courses to other agents to help them increase their business. These courses can cover a variety of topics, such as how to become a top producer, how to market on social media, or how to win listings.
Creating an online course is a great way for real estate agents to share their knowledge and expertise with others, and it can also be a great way to make money.
When creating an online course, be sure to make it high-quality and informative so that your customers will share it with their networks as well. You’ll also want to make sure that it is easy for students to follow.
If you’re not sure where to start when it comes to creating an online course, there are a few platforms that you can start selling your courses on.
Udemy, Teachable, Kajabi, and Skillshare are all popular websites for real estate agents to sell their online courses. Additionally, there are also platforms like Creative Live that allow you to broadcast yourself teaching your course live.
13) Network Marketing
Network marketing is a great way for real estate agents to make residual income. In order to maximize your success in network marketing as a realtor, you’ll need to join a company that has a product or service that relates back to real estate.
Some of the best network marketing companies for real estate agents are companies that provide services and products that you can potentially offer to your clients such as utility providers, legal service providers, appliances, furniture, etc.
When choosing a network marketing company, be sure to do your research and make sure that the company is reputable and has a good track record.
Additionally, be sure to read the terms and conditions of the agreement before signing up so that you know exactly what you’re getting into.
Network marketing can be an incredible opportunity for realtors to build a residual income and even meet potential clients for their sales business in the future.
14) Ownership and Equity in Profitable Businesses
As a real estate agent who makes a lot of money, you may be interested in exploring the option of investing in private businesses. This can be a great way for you to earn a stake in a company by helping the business get off the ground.
There are two ways that realtors can go about doing this:
Becoming an angel investor in a business or by asking your brokerage for equity in their company.
Angel investors are individuals who provide capital to a startup or small business in exchange for ownership equity or convertible debt.
If you become an angel investor, you’ll need to do your research to find businesses that are a good fit for you and that have a strong chance of success.
Alternatively, you could ask your brokerage for equity in your company. This will give you a share in the profits and success of the brokerage.
Most top producing agents spend their entire careers at one brokerage, providing their broker with the majority of their revenue as well as attracting new talent to the company through their success. It is only fair that your broker sees this, and rewards you with a stake in their company, that you helped built through your production as an agent.
Want To Build Financial Freedom as a Real Estate Agent? Let Us Show You How! Click a below to Learn More About the Opportunity to Partner with Our Incredible Group That Is Helping Real Estate Agents Around the World Build a Lifestyle They Never Need a Vacation From!
15) Dividends From Owning Publicly Traded Stock
If you don’t have a lot of time or money at the moment, you may be interested in exploring the option of investing in stocks that pay dividends over time for passive income.
Dividends are payments made by a company to its shareholders out of their profits. When a company pays a dividend, it is declaring to its shareholders that they believe the company is doing well and that they should share in the company’s success.
There are a number of benefits to investing in dividend-paying stocks:
– Dividend payments are typically regular and predictable, making them a stable source of income
– Dividends can grow significantly over time with the price of the stock, providing you with a growing stream of income
– Dividends can provide you with a hedge against inflation, as inflation will cause the purchasing power of your dividend payment to increase
– Dividends can be reinvested back into the market or into other stocks for compound growth, allowing your money to work for you over time
– If you own a lot of stock and/or reinvest dividends, returns compound and can significantly grow wealth over time.
16) Start a Real Estate School
Lastly, an extremely creative way passive income idea for realtors is starting their own real estate school.
This can be a great way to provide state-mandated real estate license training for agents and brokers in your state to generate passive income from tuition fees.
When starting a real estate school, there are a few things that you’ll need to do in order to make sure that you are compliant with state regulations:
– Choose an appropriate name for your school
– Register your school with the state (and any other applicable governing bodies)
– Develop and submit a course curriculum that meets state requirements
– Obtain approval for your course curriculum from the governing bodies
Once you’ve done this, you’ll be ready to start accepting students. From there, the only work required is in continuing to provide quality education to your students and keeping up with all state regulations.
Are You Ready to Start Building the Life That You Want?
As a realtor, you run an active income business. You must be present in order to get paid. In order to live a lifestyle where you have an abundance of time and money, you must figure out a way to generate residual or passive income in your life.
There are many passive income streams that work well for real estate agents, and the best part is that you can get started today! Whether you choose to invest in rental properties, become a passive money lender, or start your own brokerage, there are plenty of opportunities to create passive income.
Just remember to focus on building sustainable wealth and be patient – it will take a while to see results. But with hard work and perseverance, you can achieve financial independence and the lifestyle that you deserve!
Want To Build Financial Freedom as a Real Estate Agent? Let Us Show You How! Click a below to Learn More About the Opportunity to Partner with Our Incredible Group That Is Helping Real Estate Agents Around the World Build a Lifestyle They Never Need a Vacation From!