Diversification is crucial for a successful appraisal business. While you can diversify with various assignment types—such as lending work, divorce, estate, and listings—today, I want to focus on diversifying your income streams. What else do you do beyond appraisals that complements your business? I consider myself a real estate professional, encompassing roles as an appraiser, real estate broker, and investor. Having multiple complementary ventures can open doors to new opportunities. Here are a few that I have encountered through diversification:
As appraisers, we study the market daily and can spot opportunities faster than the average person. This is where we need to wear our investor hat. When a deal presents itself, we are in the best position to act quickly. If you have the means, you can purchase a property at a discount, rehab it, rent it out, or even wholesale it. Personally, I have bought properties, held them as rentals, and eventually sold them. Being an appraiser was key to finding these deals! Use your daily fieldwork and market knowledge to your advantage to gain additional income streams.
Shortly after getting my appraisal license, I decided to obtain my real estate license and later my broker license. This has been one of the best financial decisions I’ve ever made! It has resulted in hundreds of thousands of additional income over my career and provided opportunities when my appraisal business was slow. It offered much-needed diversification. You already pay MLS dues as an appraiser, so getting your real estate license is easy, continuing education is a breeze, and renewal fees are very low. During the mortgage meltdown, I worked part-time on an REO team, which provided income while the appraisal business was down. I have become a valuable resource for my brokerage and am often on call for agents, which provides additional monthly income. Occasionally, I list properties for friends and family. Though I am not a full-time agent, my appraisal business accounts for most of my income. However, the best and easiest source of income from my real estate license is with referrals.
By exploring complementary ventures beyond traditional appraisals, such as real estate sales and investing, you can unlock new opportunities and revenue streams. Leveraging your market knowledge and seizing investment opportunities can significantly enhance your financial position. Obtaining your real estate sales license can provide invaluable support during slower periods and open up new income avenues through referrals and collaborations. Embrace diversification to ensure your business not only survives but flourishes in any market condition.
If you have a real estate license and aren’t earning money from referral income, you’re missing out. These referrals are simple to source and can be integrated into your appraisal process. If you want to learn how I earned $10,000 last year from just two real estate referrals, join ReferAppraisals.com and check out our latest micro-education lesson: “Combine Your Real Estate and Appraisal Licenses to Generate Referral Income”
Dan Lindeman
Appraisal Referral Network
