How to Make Real Estate Your Side Hustle By Putting Your License on “Hold”
Real estate can be a very lucrative side hustle, allowing agents to generate income without committing to a full-time career in the industry. One of the strategies agents commonly use to generate income with their license without being actively involved in daily transactions, is placing their license in a holding company. This allows you to save money on regular dues and more importantly, make passive income through referral fees. Here’s a look at why this might be the right move for you and how real estate can act as a side hustle.
Why Put Your License On Hold?
If you're juggling a full-time job or other commitments, having the flexibility to not actively participate in real estate transactions can be very valuable. By placing your license with a holding company, you have the option to re-enter the market when you’re ready, without any pressure or need to retake courses. Real estate laws vary by state, but in Illinois, it is required that your license be held by a brokerage. A holding company fulfills this requirement, ensuring that your license remains valid and compliant with state regulations.
Keeping your license with a holding company like CRELHC can provide opportunities for career development. You’ll stay connected within the real estate industry, gain access to training resources, and be able to network with other agents. This can be beneficial if you decide to transition back into real estate work in the future.
Making Money Through Referrals
Even when your real estate license is placed in a holding company and you're not actively involved in day-to-day transactions, you can still generate income through referrals. Referral fees are a powerful way to leverage your network and knowledge of the real estate market without the demands of full-time involvement. Referral fees provide a source of passive income, allowing you to earn money by referring real estate clients to other brokers to close deals. This can be extremely beneficial if you have other commitments or are transitioning between careers.
Additionally, by staying engaged through referrals, you maintain your connections within the real estate industry. This can be valuable if you decide to reactivate your license and return to active practice in the future.
Referral Process at CRELHC
The referral process at CRELHC begins with an initial consultation. When a client approaches the broker with their license on hold and has a real estate need, we take the time to understand their specific requirements, preferences, and goals. At CRELHC, we have a large network of capable Chicago brokers who service the Chicagoland area in a variety of property niches. This allows for every area of the market to be covered and provides agents for any referral need. Once a suitable agent is identified, Pearson Realty Group facilitates the introduction between the client and the agent and presents the referral agreement contract for compensation. This transparency helps build trust and ensures a smooth transition for the client. Finally, once the referral is completed, the receiving agent will compensate the referring agent with a percentage of the commission from the sale.
Here at CRELHC, we make it our goal to make the license-holding experience as easy as possible.
For further questions regarding the specifics of the referral process at CRELHC, please refer to the FAQ page.
