Real estate investor salary varies in different states and cities. If you want to know exactly how much real investors earn in various regions, stay with me as we explore this together.
Real Estate Investor Salary Guide: How Much Money Should You Make
If you intend to become a real estate investor, you probably have a few questions that you need answers for. For example, the most common one would be to find out, “Exactly how much does a real investor make?”
For this reason, we have come up with a comprehensive real estate investor salary guide to show you how much they make in various states and cities.
Different regions have different average salaries for real investors, and therefore, we will look at several states to understand this better.
As of October 2019, most real investors were earning salaries averaging between $100,000 and $150, 000 per year.
However, some cities offer higher salaries while others are lower. What should you really make as a real estate investor?
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With that, I can manage my money in less than 20 minutes per month for free. That allows me to find other income opportunities like real estate, dividend income or side hustles.
But before we look at the real estate investor salary as offered in various states, lets first answer some important questions here.
Table of Contents
What is a Real Estate Investor?
A real estate investor is someone who puts their money into buying and selling property, with the intention of making profits. You can buy old buildings, renovate them and make improvements, then resell at a higher price or lease it.
Real estate investment is a lucrative way to make money. In the USA, real estate Investors salary is different depending on the zone.
However, newbie investors make way less than seasoned or professional real estate investors.
How Much Does a Real Estate Investor Make In a Year?
Generally, the highest salary to a professional investor is $100,000-123,000 a year, which translates to $51.28 per hour. A professional real estate investor can go as high as $170,000 in a good season.
A newbie, on the other hand, earns between $15,000-$18,000 annually, again depending on the area they work from.
If you want to retire early, real estate investment is an excellent way that can help you do just that and in the right way. It offers a great source of passive income, whereby you don’t have to keep working.
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How Do Real Estate Investors Make Money
Making money in real estate happens in different ways. You can earn money in many simple ways, although it is not necessarily easy. If you decide to become a real estate investor, you must learn how the field operates, understand how to pull the ropes, and perhaps you will be able to close a few good deals.
In real estate, the stakes are enormous, and with the right approach, you may be able to go past most risks that are normal to this business. This is how you make money as a real estate investor
- High-value resell of the acquired property
- Collecting rent from a renovated and leased property to tenants
- They make profits from business activities surrounding real estate
Without further ado, let us dive in and see how much money you should make by practicing these three ways to make money.
1. Real Estate Increase In Property Value
Every business has calculated risks that come up due to so many factors. In real estate investment, the biggest risk is inflation. Don’t always have it in mind that every property you acquire will increase in value. Back in the late 1980s and early 90s, the real estate market almost came to its knees due to inflation
You can buy a property and resale it making a small profit due to inflation. You pretty much remain on the same level because the amount you made covers the same bills, and you remain with nothing.
As you make your small profit, some item prices might go up; hence, the spending power is high with a small margin profit. You end up spending the whole amount and keeping nothing for yourself.
Your profit is ceremonial, meaning it does not impact your life at all. Inflation happens when the government has to print more notes to cover their overspending.
This directly affects the value of a dollar with time, and its price is lower in the markets than some months before.
Some investors gamble with inflation by acquiring property at a low price and “sitting on it” until the inflation grows, then they can pay off the mortgages with dollars that are worth far less. In the 1970s, savvy investors made a killing this way.
It was a period when inflation was so bad until Paul Volker Jr, who was a Reserve President, took control of the situation and brought back stability.
See Related: Top Real Estate Investing Terms
2. Leasing Real Estate Property
Collecting money from a leased property is so easy anyone can do it. You put up a building and lease it to tenants for different purposes. It could be offices, a hotel, parking space, or a residential building.
Leasing has many challenges that can threaten your source of income. You may find yourself doing repairs all the time. Some tenants might conduct illegal businesses on your premises, which could land you in the wrong hands of the law or find yourself being investigated or even bankrupt.
Being on the government’s radar for long can cripple your investment. Don’t lease the property to people and get comfortable assuming that all is well. Do background checks on your tenants and know their kind of businesses and the life they lead.
Actually, these are factors to consider before agreeing to lease a property to anyone. Know their daily activities and their source of income for everyone’s sake.
See Related: How to Rent Your House Without a Realtor
3. Earn a Salary From Real Estate Business Operations
After leasing a property, you can still make money by selling services to your tenants. You can lease hotel premises and sell trending movies to your customers either in a theater within the hotel. You can own a car wash and make money using timer controlled vacuum cleaners.
Some investments might require professional knowledge. If you have a specialty, make money out of it or hire someone to actualize the business.
See Related: How to Invest in Industrial Real Estate
Real Estate Investor Salaries In Various States (By Zip Code)
In the United States, every state has different needs when it comes to real estate. Property prices are different too.
Let us look at different cities and the salary of real estate investors in these specific cities. Below is a summary of 10 cities and the average investor salaries calculated based on several jobs.
Here is the real estate investor salary by zip code in the US:
|Region||Amount per Year||Number of Salaries||Zipcode|
|Utah||$200,000||As per 8 salaries||84101|
|South Carolina||$200,000||As per 8 salaries||29401|
|New Jersey||$200,000||As per 9 salaries||07001|
|Indiana||$200,000||As per 20 salaries||46077|
|Florida||$187,000||As per 205 salaries||32003|
|California||$127,000||As per 102 salaries||90001|
|Virginia||$125,000||As per 10 salaries||23821|
|Georgia||$120,000||As per 43 salaries||30002|
|Massachusetts||$110,000||As per 14 salaries||01001|
|Washington||$100,000||As per 13 salaries||98002|
|Nevada||$100,000||As per 13 Salaries||89144|
Can Real Estate Investing Support My Life?
You can dedicate some of your time to real estate and learn the role while you keep your day job.
To become a successful investor, consider the steps below, and success will be inevitable.
- Change your mindset
- Read widely on wealth creation and investing
- Change your clique and surround yourself with like-minded people
- Get a mentor with tons of experience and success in real estate
- Learn the language of property sellers, buyers, and investors
- Learn different languages
- Gather good leads to real estate investments
- Put together your own team
- Ask good questions and learn to listen too
- Be a great negotiator
Change Your Mindset
The mind is where all plans and ideas happen. You need to change your mindset to know and accept that you have chosen a new path to become an investor. Think like the real estate investor you want to be.
You will be responsible for making all decisions and overseeing their implementation, unlike your day job where decisions are made, and you implement a part of them.
Your mind should be set on the money you want to make, but remember to get rid of any negative energy or emotions from your system. Don’t accommodate negative thoughts. Let your mind focus on wealth creation.
Once you start exploring the investor field, you will meet seasoned investors who will be willing to walk you through the journey to grow as a real estate investor.
They might ask for some kind of payment, but it is only fair because they will give you real experience and share their knowledge.
Consider these best apps for real estate investors to make your life easier.
Read Widely On Wealth Creation And Investing
Reading will help you shift your mindset to a new world of wealth creation and entrepreneurship. Get books with success stories from people who have made it in real estate investment.
Don’t make excuses that you have no money to buy books.
You can get second-hand books from your local library. Read newspapers, watch the news, and listen to real success stories from real investors.
Surround Yourself With People Who Are Like-Minded (Investor Minds)
As they say, “birds of a feather…” Yes, put yourself in the company of people who reflect what you want to become. Stay away from anyone who talks you out of your goals. Engage yourself only with people who support your dreams.
You may have to make tough decisions, but hey, your life is taking a new turn. You are no longer an employee but a potential employer or the next big investor in town.
See Related: Best Apps for Real Estate Investors
Get a Mentor With Tons of Experience And Success In Real Estate
In any field of investment, it is wise to have a mentor. This is someone who has made it in life doing the kind of business you have decided to do. Take an interest in someone who has been in the field long enough and made it.
With evident success stories that they were once beginners, and they made it all the way up! That is your key interest.
If you don’t know any real estate investor, google, and you will definitely find more than one person who can be of help to you.
Learn The Language of Property Sellers, Buyers, And Investors
Buying, selling, and investing in your new tasks and responsibilities. You must know how to go about it and the language to use in order to close a deal.
Talking and convincing people might not be your thing, but you must learn how to do it somehow. You might be bad at it in the beginning but guess what, you will be better tomorrow.
You will only mess around a little but turn out good after a few practices. One day you will be best and share how you began, so please keep going.
Learn from your mentor, how they talk, how they relate with buyers or sellers and ask relevant questions.
Learn Many Languages
This is not about learning French, Chinese, or Japanese. No. I mean business languages. In real estate investment, different terms will be used.
Like for example, debt service means mortgage payment. Take time and learn all terminologies used in order to flow with business discussions.
You can use a tool like Fundrise to invest anywhere in the US from the comforts of your couch.
|Min To Invest||Accredited Only?||Fees||Next Steps|
|$500||No||1%/year||Sign Up||Read Full Review|
Gather Good Leads to Real Estate Investment
Find a way to know the “need” and a way to address it satisfactorily. You carry out a survey on social media platforms like Facebook, Twitter, or Instagram. Once people get in touch, be keen on what they say and note it down.
Have good conversations with interested parties and get with their confidence for a start. Note the issues brought about and find a way to meet these needs.
Keep all the information collected well for future reference.
Put Together a Team
At the beginning of your new journey, you might be able to do everything by yourself, but in due time, you will have no choice but to get a few helping hands. Recruit people to your team who are trustworthy and hardworking.
People who share your vision and work with you towards achieving it.
See Related: How to Get a HELOC on a Rental Property
Ask Good Questions And Learn to Listen Also
A good conversation is about talking, listening, and asking relevant questions. If you discuss something and understand each other, then you are getting somewhere.
An investor’s job is to solve other people’s problems, so be a good listener.
Be a Great Negotiator
Our daily life revolves around negotiations, but we may not see it that way. You negotiate with your spouse, children, and even colleagues.
The only difference here could be that you are not aiming to close a deal or how much money should you make in the end. This is exactly what happens in the life of an investor.
No doubt, it will be tough at the beginning but train yourself. Don’t be afraid to open a negotiation with a small amount of money as it breaks the ice for serious negotiations.
Offer even a small amount and pick it from there.
See Related: Real Estate Crowdfunding Guide
Conclusion on Real Estate Investor Salary
Were you wondering what is the annual salary for a real estate investor? Is being a real estate investor your new goal? Well, now, you know.
It is a good business, but you need to strategize and get it right to avoid plunging into risky grounds in the name of becoming a real estate investor. You can start as a part-time investor to test the waters then slowly go in full time once it picks.
Keep your day job to be able to run your normal life and avoid getting stranded if the expected real estate investor’s salary does not turn out as expected.
Make decisions wisely, especially when it comes to buying a property. Hopefully, this post has added to your knowledge of becoming a real estate investor.
If you have any questions, please feel free contact me directly.
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