If your deals have slowed down a bit and you’re wondering how you can temporarily branch out to get some cash flow, here are some ideas for an agent to supplement their commercial real estate revenue.
#1 Property Management.
Offer property management services to your clients, where you can handle the day-to-day operations, schedule maintenance, and tenant management of commercial properties.
This can be a recurring source of income, as you earn a percentage of the rental income or a flat fee for your services. You don’t have to take on a bunch of properties, you can offer this to 1-2 clients just to get some reliable, monthly cash flow.
*May require a specialty “property management” license, check your state for rules.
#2 Leasing and Tenant Representation.
I know it’s difficult when you’re used to only providing services for acquisitions and dispositions. Consider, temporarily, offering leasing services and representing tenants.
You likely already have investor clients, so offering to fill their vacant spaces would be a great place to start. You can pitch it as a “one time only” deal, to bring in some extra money.
CoStar Tenant Data is a great resource to find tenants need assistance in finding suitable locations.
#3 Real Estate Consulting.
Provide specialized consulting services to clients looking for expert advice on commercial real estate matters. This can include market analysis, investment strategies, feasibility studies, and lease negotiations.
Charge an hourly rate or project-based fee for your consulting services.
You can automate this by using Calendly’s payment at booking add-on, where people can pay upfront for consultation. You can also offer consultations to junior agents who want mentorship.
#4 Real Estate Investment.
Investment might be a big jump right now but start doing the process of figuring out your numbers. How much can you invest? How much rent does the property need to bring in to get your desired income?
REIT Investments
REITs are a way for investors to earn income from real estate without having to buy, manage, or finance properties themselves. It’s like crowd-sourcing the purchase of real estate.
While great for long-term holding, I don’t recommend REITs for short-term increased cash flow. For short-term injections of cash, try vacant land.
Vacant Land
Buying and flipping land is a great way to make short-term cash without a lot of money upfront. You can find parcels for under $3k.
I, personally, like flipping land because your worse case scenario is owning land. However, sometimes it might take a long time to sell a piece, but if you can buy land in cash, it doesn’t cost much to hold it, usually just land taxes or commercial property taxes. Buying in cash is ideal since you’re not beholden to interest rates.
Land flippers also buy large pieces of land with individual parcels. They sell the individual parcels with “owner financing terms” and receive a monthly income. If you’re looking for monthly income supplements, land owner financing is a great way to achieve it.
#5 Referral Fees.
Build a network of professionals related to the real estate industry that are not your direct competitors.
I.E. Make some industrial friends if you’re a retail agent and vice versa.
Refer clients to these professionals and earn a referral fee or commission for successful business transactions.
Affiliate payouts.
DoorDash’s Merchant Referral Program pays $1,000 if you can get a restaurant to sign up with your referral link.
If you do a lot of business with restaurants, adding a DoorDash “sign up” email and/or brochure to your sales process can bring in extra cash.
#6 Real Estate Education and Training.
Share your expertise by offering educational courses, workshops, or online training programs on commercial real estate investing, leasing, property management, or other related topics. Charge fees for enrollment or access to your educational materials.
Most local real estate schools would love to have a commercial real estate agent as an instructor, so be sure to reach out.
Check with your local laws, regulations and licensing requirements.
Just so you don’t sue me, I want to remind you to comply with all applicable laws, regulations, and licensing requirements when pursuing these additional revenue sources. Some states require extra licenses for property management and other specialties, it’s important to check.
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