Your FIRST Year in Real Estate? Here’s How to Make $100,000

I’ve tried soooo many ways to make money in real estate, and what I wanted to do is make a video covering the ways, based on personal experience, on what you can do to make 6 figures in your first year in this real estate business.

Whether you have a job that consumes most of your time, or even if you are self-employed, making 100k doing any strategy will require dedication, consistency, and hard work.

The 4 ways listed in this amazing article, is the most probable way to make this amount of money within 1 year of starting.

There are real estate strategies that can make you a lot more money, but when considering the amount of time and experience needed to start, it would most likely exceed a years’ time.

To be a successful real estate investor and before we go into, the 4 ways, it’s important be in the right mindset that will set you up for success. Whether you’re in this part time or want to do some damage and really make this a part of your long-term vision. Either way you will want to have and maintain the right mindset so you can follow through and hit your milestones.

So here’s what help me as far as my mindset before starting a new business in real estate whether it full time or part time:

Vision: Successful real estate investors have a clear vision of what they want to achieve and how they plan on getting there. You will want to create actionable plans, reverse engineering your end goal so that you can create a plan to accomplish them.

Persistence and Perseverance: Real estate investing can be challenging. So try to maintain a resilient attitude and learn from your failures. This requires staying committed and not giving up easily.

Financial Discipline: Real estate investing involves managing your finances effectively. You can do this by creating budgets, tracking expenses, managing cash flow, minimizing unnecessary expenses, and maximizing returns.

Risk Management: Some RE strategies carry more risk than others. Our job as investors is to understand and assess all the risks associated with each investment strategy which we will discuss. You can assess risk by doing thorough due diligence, analyzing market trends, and seeking advice from a mentor or someone with experience that you trust. AND thinking of multiple exit strategies to mitigate potential risks.

Continuous Learning: You will always be learning, that didn’t sound grammatically correct, but you know what I mean. There are experienced investors with 30 years of experience that still learn everyday to perfect their craft and excel.

Networking and Mentors: Real estate investing is a people business. Successful investors understand the importance of building a strong network and nurturing those relationships. They actively seek out connections with professionals, like real estate agents, lenders, contractors, and mentors. They understand that collaboration and mutually beneficial relationships can lead to new opportunities and resources.

Patience: Real estate investing is ultimately a long-term game. But there are short term strategies that can make you 100K in one year if you’re willing to work at it. Remember to give yourself grace and have patience and understand that building wealth in real estate takes time. But with the following real estate strategies you can successfully make 6 figures your first year.

Lets start with..

1. Flipping Houses

This is a great way to make 100K in a single year. Flipping houses is buying distressed properties at a discounted price, renovating them to increase their value, and quickly reselling them for a profit. So, you are targeting houses in need of repairs and buying them below market value. You then fix it up, based on recent comps, and then market and sell the property at a higher price.

Let’s say you average 50K profit per flip, you would only need 2 flips in a year to make six figures.

Here’s a quick math breakdown on a deal:

Let’s say you buy a house for 170K from either an agent, direct to seller marketing or bought it from a wholesaler.

You get a bid from a contractor that your mentor recommended, and they stated it would cost 40K to renovate it.

Let’s say you got a hard money loan, and you have monthly overhead cost such as loan payments, insurance, utilities, and property taxes, at $1,500 per month.

So here is how this will look.

170K for the purchase + 40K for rehab + 4 months of holding costs which is 6K + the agent you hired will list it for 350K based on recent comps, so your commission and will include closing cost and fees will be around 30K.

This puts your break-even number at 246K, let’s say in the perfect scenario and market it sold at asking price with no issues.

350K sold price minus 246K is a profit of 104K in a 4-to-6-month time period.

This sounds great but please remember that it’s high risk, high reward, and remember to use the risk management tactic we talked about earlier.

The next way to make 100k in a year with real estate is..

2. Flipping Land

You probably seen some of these videos where I talk about this. But essentially you are buying raw vacant land for less and selling it for more.

This is usually done by direct to seller marketing and you make an offer around 35-45% of its market resell value.

So, you can buy for 3K and sell for 9-10K and make a profit of around 4K after title and fees. You would have cost of overhead which consist mostly of marketing to landowners.

If you want to take it a step further, you can do some sort of value add to increase your exit price. So, for example this could be subdividing land which is where you take a large parcel of land and break it into smaller individual lots, which will ultimately increase the sole price per sq ft.

You can add utilities, clear the lot of trees or get necessary permits and plans for the developers who can be your end buyer. This would increase the price because it saves the builders time when the site is ready to build.

I’ve made over 6 figures in less than 10 months doing this, so I know it’s possible and a great way to make money whether your full time or part time.

Next, we have…

3. Wholesaling Houses/Land

When I first started real estate investing journey, I started with wholesaling real estate. Me and my business partner then got up to 10 deals a month at one point.

Our average profit per deal closed was around 8-10K at the time. So, making 100K in a year wholesaling real estate is very doable.

Wholesaling real estate is basically finding discounted properties from motivated sellers and entering contracts to buy them at a lower price. Instead of purchasing the property yourself, you would assign the contract to a buyer who pays a slightly higher price. So, you are assigning your equitable interest and you earn a profit from the price difference in what you contracted it for and what you assign it for without actually taking ownership of the property. It’s a strategy to make money by connecting sellers and buyers while avoiding the costs and risks of taking it down yourself.

You are the middleman.

This is a good skill to learn because it can help you move into other areas of real estate like flipping houses, where you can cherry pick the best deals and keep them and take it down as your own renovation project.

Ultimately a great skill to learn that can make you 6 figures if you work at it diligently. Here’s my full disclaimer with this strategy. In a competitive market it can get hard to find deals, also there is the cost of marketing to get in front of the sellers. There are low cost ways to find deals like driving for dollars but it does require some financial investment, just keep that in mind and you should be fine.

Next, we have

4. Getting your RE License

Out of everything we mentioned this is the lowest cost way to achieve 100K a year. You can invest about 1000 to get licensed here in Texas and once your license you can increase your ability to earn more significantly.

The average house here is about 350K, if you made 3% commission on that, it would be 10.5K. For you to achieve 6 figures in one year, would mean that you need to do about 10 transactions a year.

I you work hard enough, stay consistent, do lead gen, and network and nurture those relationships, you can make great money doing this.

Whether you have a full-time job or not, you can make this work.

I wanted to include this real estate strategy because there are a lot of benefits with starting here.

You have access to MLS and a network or other realtors.

You can learn how to comp and value properties and learn more about what areas you would want to invest in later down the line when you save up some investment capital.

This can be a good starting point for anyone who has absolutely no experience in real estate, has little to no capital and wants to increase their ability to earn more.

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