Real Estate Investor Salary: How Much Do Real Estate Investors Really Make?

Are you considering a career in real estate investing? Want to make sure you'll make the cash you need to stay afloat?

The average real estate investor's salary in the U.S. sits around $87,000 per year, with most investors earning between $58,000 and $104,000, depending on the state where they're based. Read on for a more detailed breakdown of what you can expect to earn.

There's no single factor that determines success or failure in real estate investing, and luck often plays a significant role. Having said that, four major factors influence the amount of money that can be made by investing in real estate:

• Location. If you're in the real estate business, you've heard this one more than a thousand times: Location, location, location. Not all real estate markets are created equal, and not all are booming or going bust at the same time.
• Experience. It's possible to become a successful real estate investor in a very short period of time -- but not very likely. Most people who have acquired wealth through real estate have a significant amount of experience in the field, giving them an advantage over the competition.
• Markets. Again, not all real estate markets are created equal. Successful real estate investors have enough knowledge about a market to determine if there's money to be made.
• Investment type. Flipping houses or wholesaling home contracts offer much greater rewards than attempting to make money from a short-term rental -- but also much greater risks.

Diversify

If you've only flipped properties or rented out single-family homes, expand into other forms of real estate investing. Add a few vacation homes to the mix, try a multifamily property, or give wholesaling a whirl. You'll increase your earning potential -- plus, you could find something you're really good at or just enjoy more.

Do more deals

This one's pretty simple: The more deals you do, the more you'll earn. If you're only doing five flips per year, think about adding another two. If you have two rental properties, consider a third (maybe even a duplex or triplex to really increase those earnings). Just keep in mind that the bigger your portfolio grows, the more work you'll be required to do. So be prepared and set aside the time (or team) to do it.

Get a mentor

If your real estate career isn't quite panning out, then look to someone who's come before you. Many successful real estate investors offer coaching and mentoring programs, and they can help guide you in growing your career and your earnings. Attending networking events is a great way to find a potential mentor. You can even ask your favorite real estate agent for some recommendations in the area.

Improve at least one skill

Read, take classes, and make it a point to improve at least one of your basic investing skills. If you improve your negotiation skills, for example, it might mean lower costs and higher returns on your next flip. If you increase your knowledge of carpentry, rehab costs down the line can be reduced. Even small, incremental improvements in your capabilities can make a big difference on your bottom line -- and your real estate business as a whole.

Change your location

The data above spells it out: Real estate investing returns vary widely depending on where you're active. If your properties aren't delivering the return on investment (ROI) you've been hoping for, then branch out to a different location. Try a real estate investment in a new city or even a new state. Just be sure to do your research and identify the real estate market with the highest potential possible before diving in. You'll also want a plan in place for how you'll manage the property (or just the deal) from far away.

Increase your rents and prices

Obviously, if you charge more rent or price your flips higher, you'll make more cash. You'll just need to be careful here and make sure the price hike is justified. If it's not, you might find yourself with a vacant property -- and that can hurt your earnings (and cash flow) more than anything.

The bottom line

Real estate investor salaries are what you make of them. Your earnings directly correlate with the work you put in and the deals you strike. Not making what you hoped? Up the ante and try a new type of investment, try a new housing market, or improve your negotiating skills. In real estate, there's always a way to increase those earnings and build the wealth you want.

Don't forget: Not all real estate investing is active. If you're looking to earn passive income from real estate, look into investing in a real estate investment trust (REIT) or real estate stocks. Crowdfunded deals can also be a great way to get in on up-and-coming investments and developments.