SoFi

The median pay for professional photographers is $40,170 per year, according to the most recent data from the Bureau of Labor Statistics. That said, there is a broad range of earning possible, depending on what kind of photographer a person is and where they live.

Photography may become a more in-demand skill in the future, given what a visual culture exists today. Over the next decade, it’s anticipated that photographers will see job demand increase by 5% between 2022 and 2032, which is greater than the average for all professions.

Read on to learn more about the salary and other facets of a career as a photographer.

What Are Photographers?

A photographer combines technical expertise with creativity and composition skills to produce photographic images. Photographers can get paid to take wedding, family, or pet portraits; cover news events; work for businesses and brands shooting products; or create art — among many other types of photography work.

Many photographers are also skilled in editing photos. If a photographer works for themselves, they can also be responsible for running their business and everything that entails, from advertising to accounting to operations. There are so many directions a photographer’s career can take. Some photographers also teach the art of photography, help plan creative direction for photo shoots, or use drone technology to capture shots from the sky.


💡 Quick Tip: Online tools make tracking your spending a breeze: You can easily set up budgets, then get instant updates on your progress, spot upcoming bills, analyze your spending habits, and more.

How Much Do Starting Photographers Make a Year?

When they are earning an entry-level salary, how much money a photographer makes is typically on the low end of the spectrum. Their earnings will likely grow as they gain skills and experience and make connections in the industry.

The lowest 10% of photographers earn less than $12.98 per hourly pay. That may be a good starting point if you are wondering about starting salaries.

Keep in mind that photographers in different locations and areas of focus will make an array of salaries. For instance, someone who takes baby portraits for new parents in a small town will likely never earn as much as a high-fashion photographer in a major city who is being paid by corporate clients. The latter could make $100,000 a year or considerably more.

Recommended: What Trade Makes the Most Money?

What is the Average Salary for a Photographer?

The average salary for a photographer can depend a lot, as already noted, on where someone lives. While the median annual income for this role is $40,170, the following table illustrates how the state a photographer chooses to work in can impact their potential earnings and determine if it’s a high-paying job.

What is the Average Photographer Salary by State for 2023

State	Annual Salary	Monthly Pay	Weekly Pay	Hourly Wage
Oregon	$48,870	$4,072	$939	$23.50
Alaska	$48,629	$4,052	$935	$23.38
North Dakota	$48,622	$4,051	$935	$23.38
Massachusetts	$48,041	$4,003	$923	$23.10
Hawaii	$47,595	$3,966	$915	$22.88
Washington	$46,501	$3,875	$894	$22.36
Nevada	$45,979	$3,831	$884	$22.11
South Dakota	$45,953	$3,829	$883	$22.09
Colorado	$45,377	$3,781	$872	$21.82
Rhode Island	$45,265	$3,772	$870	$21.76
New York	$43,131	$3,594	$829	$20.74
Delaware	$42,656	$3,554	$820	$20.51
Vermont	$42,118	$3,509	$809	$20.25
Virginia	$42,039	$3,503	$808	$20.21
Illinois	$42,025	$3,502	$808	$20.20
Maryland	$41,311	$3,442	$794	$19.86
Nebraska	$40,429	$3,369	$777	$19.44
Missouri	$40,178	$3,348	$772	$19.32
California	$40,067	$3,338	$770	$19.26
South Carolina	$39,831	$3,319	$765	$19.15
Pennsylvania	$39,512	$3,292	$759	$19.00
New Jersey	$39,430	$3,285	$758	$18.96
Oklahoma	$39,153	$3,262	$752	$18.82
Maine	$39,132	$3,261	$752	$18.81
Wisconsin	$39,049	$3,254	$750	$18.77
North Carolina	$39,009	$3,250	$750	$18.75
New Hampshire	$38,424	$3,202	$738	$18.47
Idaho	$38,328	$3,194	$737	$18.43
Texas	$38,071	$3,172	$732	$18.30
Kentucky	$37,948	$3,162	$729	$18.24
Wyoming	$37,814	$3,151	$727	$18.18
Minnesota	$37,716	$3,143	$725	$18.13
Michigan	$37,565	$3,130	$722	$18.06
New Mexico	$37,504	$3,125	$721	$18.03
Indiana	$37,314	$3,109	$717	$17.94
Ohio	$36,661	$3,055	$705	$17.63
Arizona	$36,543	$3,045	$702	$17.57
Connecticut	$36,357	$3,029	$699	$17.48
Mississippi	$36,102	$3,008	$694	$17.36
Iowa	$36,056	$3,004	$693	$17.34
Montana	$35,992	$2,999	$692	$17.30
Arkansas	$35,860	$2,988	$689	$17.24
Alabama	$35,543	$2,961	$683	$17.09
Utah	$35,026	$2,918	$673	$16.84
Tennessee	$35,001	$2,916	$673	$16.83
Kansas	$33,992	$2,832	$653	$16.34
Georgia	$33,110	$2,759	$636	$15.92
Louisiana	$32,930	$2,744	$633	$15.83
West Virginia	$30,515	$2,542	$586	$14.67
Florida	$29,303	$2,441	$563	$14.09

💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Photographer Job Considerations for Pay & Benefits

While photographers can often choose to set their own rates, they are also usually self-employed and therefore responsible for securing their own benefits. For instance, they won’t have access to an employer-sponsored 401(k) plan or healthcare benefits. There are some exceptions to this rule. For example, if a photographer works for a large corporation or photo studio, they may receive access to traditional employee benefits like paid time off and a retirement plan contribution match.

Other considerations can be how a career as a photographer can impact your lifestyle. If you are a news photographer, you may find that you have to be available for extended periods, whenever a situation comes up that needs documenting. If you are a travel photographer, which can sound like a dream job, you likely won’t have a typical week-to-week schedule. And if you are a wedding photographer, you will likely be spending many weekends shooting ceremonies vs. kicking back with your family.

There are some photography jobs, such as taking pictures of a product, that may not involve that much social interaction, but many kinds of photography careers do involve working with people non-stop. For this reason, it may not be the best job for antisocial people.

Pros and Cons of Photographer Salary

The main advantage of a photographer’s salary is there is no real cap on how much they earn. For example, in-demand wedding photographers or photographers who license their images for products can all demand high rates for their work. On the flip side, their salaries are often not consistent, which can be very stressful. Also, when you are self-employed, taxes can take a bite out of your earnings.

Recommended: What Is Competitive Pay?

The Takeaway

Working as a professional photographer can be a creatively fulfilling, fun, and lucrative career. Worth considering, though: How much a photographer stands to make depends a lot on their specialty, where they live, and their level of experience.

See exactly how your money comes and goes at a glance.

FAQ

Can you make 100k a year as a Photographer?

It is possible to earn $100,000 or more a year as a photographer — the sky really is the limit when it comes to income potential in this field. However, the median annual income for this role is $40,170, but photographers can earn more over time as they gain experience and a strong reputation in their industry.

Do people like being a photographer?

Many people who pursue a career in photography do so because it is a creative pursuit they are truly passionate about. Many positions can provide flexibility and fun experiences (say, if you are a travel or wedding photographer).

Is it hard to get hired as a photographer?

It can be very hard to find a job as a photographer if you don’t have the skill set required to get the job done well. Taking some time to build a strong portfolio of your work and then marketing your business can make it much easier to get hired.

---

Photo credit: iStock/ivan101

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

SORL0124030

Read more

The current median annual salary for a radiology tech is $67,180 or $32.30 per hour, according to the Bureau of Labor Statistics. This career can be a good option for those who want to work in the medical field but don’t want to attend medical school. This role typically only requires an associate’s degree, so it can be easy to pursue this career without taking on a ton of student loan debt.

For those who wonder how much a radiology tech makes, read on for details and what else you should know about this career and its earning potential.

What Are Radiology Techs?

A radiology technologist, also known as a radiographer, is a healthcare professional responsible for conducting X-rays and other diagnostic imaging procedures on patients. It typically offers a medical career path without a college degree or graduate-level degrees. It therefore can sidestep many additional years of training and the expense of that education.

The key duties of radiology techs include:

•   Adjusting and maintaining imaging equipment

•   Adhering to precise instructions from physicians regarding the targeted areas of the body for imaging

•   Preparing patients for procedures by collecting medical histories and shielding unnecessary exposed areas

•   Positioning both the patient and equipment to obtain accurate images

•   Operating computerized equipment for image capture

•   Collaborating with physicians to assess the images

•   Deciding if further imaging is necessary

•   Helping to maintain patient records.

If you’re a “people person” who enjoys interacting with patients and colleagues daily, this position could be a good fit. However, as a job for introverts, it may not be enjoyable due to the social aspect.


💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. An online budget planner can give you the same insight into your budgeting and spending at a glance, without the extra effort.

How Much Do Starting Radiology Techs Make a Year?

When someone is working as an entry-level radiology tech, they can expect to earn less than their more experienced coworkers. The median annual wage for the lowest 10% of earners in this role is less than $47,760.

In terms of how much an experienced radiology tech could make, the highest 10% earn more than $97,940. Being able to earn close to $100,000 is a good salary for a role that only requires an associate’s degree.

What is the Average Salary for a Radiology Tech?

While the median annual wage for a radiology tech is $67,180, where someone lives can greatly impact how much they stand to earn. For example:

•   Florida radiology techs can expect to earn an average salary of $66,051.

•   Those working in Oregon earn an annual salary of $108,714.

The following table sheds more light on how radiology tech salaries and hourly wages stack up.

It will give you a detailed look at how earnings vary by state.

What is the Average Radiology Tech Salary by State for 2023

State	Annual Salary	Monthly Pay	Weekly Pay	Hourly Wage
Oregon	$108,714	$9,059	$2,090	$52.27
Alaska	$108,369	$9,030	$2,084	$52.10
North Dakota	$108,210	$9,017	$2,080	$52.02
Massachusetts	$107,274	$8,939	$2,062	$51.57
Hawaii	$105,948	$8,829	$2,037	$50.94
Washington	$104,410	$8,700	$2,007	$50.20
Nevada	$102,464	$8,538	$1,970	$49.26
South Dakota	$102,270	$8,522	$1,966	$49.17
Colorado	$101,476	$8,456	$1,951	$48.79
Rhode Island	$100,695	$8,391	$1,936	$48.41
Mississippi	$98,260	$8,188	$1,889	$47.24
New York	$97,174	$8,097	$1,868	$46.72
Delaware	$95,485	$7,957	$1,836	$45.91
Vermont	$94,853	$7,904	$1,824	$45.60
Virginia	$94,142	$7,845	$1,810	$45.26
Illinois	$93,946	$7,828	$1,806	$45.17
Maryland	$92,483	$7,706	$1,778	$44.46
Kansas	$92,447	$7,703	$1,777	$44.45
Nebraska	$90,537	$7,544	$1,741	$43.53
California	$90,046	$7,503	$1,731	$43.29
Missouri	$89,904	$7,492	$1,728	$43.22
South Carolina	$89,113	$7,426	$1,713	$42.84
Pennsylvania	$89,020	$7,418	$1,711	$42.80
New Jersey	$88,951	$7,412	$1,710	$42.77
Wisconsin	$88,122	$7,343	$1,694	$42.37
Maine	$87,977	$7,331	$1,691	$42.30
Oklahoma	$87,678	$7,306	$1,686	$42.15
North Carolina	$87,273	$7,272	$1,678	$41.96
New Hampshire	$86,552	$7,212	$1,664	$41.61
Idaho	$86,116	$7,176	$1,656	$41.40
Texas	$85,514	$7,126	$1,644	$41.11
Wyoming	$85,210	$7,100	$1,638	$40.97
Minnesota	$85,148	$7,095	$1,637	$40.94
Kentucky	$84,779	$7,064	$1,630	$40.76
New Mexico	$84,632	$7,052	$1,627	$40.69
Indiana	$84,108	$7,009	$1,617	$40.44
Michigan	$84,014	$7,001	$1,615	$40.39
Ohio	$82,756	$6,896	$1,591	$39.79
Arizona	$82,368	$6,864	$1,584	$39.60
Connecticut	$82,133	$6,844	$1,579	$39.49
Iowa	$81,424	$6,785	$1,565	$39.15
Montana	$81,128	$6,760	$1,560	$39.00
Arkansas	$80,164	$6,680	$1,541	$38.54
Alabama	$80,115	$6,676	$1,540	$38.52
Utah	$79,081	$6,590	$1,520	$38.02
Tennessee	$79,008	$6,584	$1,519	$37.98
Georgia	$74,633	$6,219	$1,435	$35.88
Louisiana	$74,343	$6,195	$1,429	$35.74
West Virginia	$68,751	$5,729	$1,322	$33.05
Florida	$66,051	$5,504	$1,270	$31.76

Source: ZipRecruiter

Radiology Tech Job Considerations for Pay & Benefits

Most radiologic and MRI technologists work full time. Because imaging is sometimes needed in emergency situations, some technologists work evenings, weekends, or overnight.

Almost six out of 10 radiology techs work in hospitals; about 20% work in medical offices. One thing to note is that, as you would expect, the job involves working with potentially dangerous radiation, so appropriate protective clothing may be worn and safety practices followed.

Recommended: What Trade Job Makes the Most Money?

Pros and Cons of Radiology Tech Salary

Because radiology techs stand to earn a solid income without having to pursue higher education, there aren’t any real disadvantages to their salary. The main disadvantage of the job though is being exposed to infectious diseases through patient interaction and equipment that uses radiation. Safety procedures are in place to help offset these risks, but some people may not find the salary worth it in light of the risks.

Benefits will of course vary depending on where a radiology tech works. Packages may include health insurance, paid sick days and vacations, retirement account matching contributions, and more.

Recommended: Best Jobs for Antisocial People

The Takeaway

Working as a radiology tech can be a great way to earn a living in the medical field without having to commit to the major time and expense that comes with pursuing careers like nursing or becoming a doctor. It can offer a solid salary, benefits, and the satisfying work of helping people with their health care.

With SoFi, you can keep tabs on how your money comes and goes.

FAQ

Can you make 100k a year as a radiology tech?

It is possible to earn $100,000 a year as a radiology tech but being able to do so depends on what state someone works in, as well as other factors like experience. For example, the average annual salary of a radiologist tech in Oregon, Alaska, and North Dakota is well over $100,000.

Do people like being a radiology tech?

Being a radiology tech can be very enjoyable if someone finds the work interesting and if they enjoy interacting with patients. However, for those who don’t like being in a health care setting, repeating procedures, or working with potentially dangerous radiation, it may not be a good fit.

Is it hard to get hired as a radiology tech?

Those who want to work as a radiology tech and who have the required credentials should have no problem doing so. The job outlook for radiology techs is positive with a projected 6% growth from 2022 to 2032, which is faster than the average for all occupations. Each year, approximately 15,700 job openings for this role are expected to be available.

---

Photo credit: iStock/monkeybusinessimages

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

SORL0124026

Read more

The most recent mean annual salary for teachers nationwide is $66,450, according to the Bureau of Labor Statistics. However, there can be considerable variation depending on where a person lives, what level of student they teach, how much experience they have, and other factors.

Working as a teacher comes with an equal set of challenges and rewards. Being able to help shape young minds can be very fulfilling as well as challenging.

Want to learn more about how much teachers make and what the role entails? Read on for more insight.

What Are Teachers?

Working as a teacher can look a bit different depending on whether the teacher works in an elementary, middle, or high school setting. That being said, all teachers create lesson plans and deliver those lessons to their students. They often work individually with students who need a bit of extra support and can help foster social and emotional development. Alongside instructing pupils, they grade assignments, write report cards, and meet with parents to help them understand their child’s education progress.

Teaching may not be the right career for those who are introverts. It typically involves interacting with students, their parents, and other faculty members for much of the workday.

Worth noting: Qualifications for teaching can vary. Teachers may be required to have certificates in order to teach, which can mean time, energy, and expense to attain those credentials.


💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

How Much Do Starting Teachers Make a Year?

Like many chosen career paths, working as an entry-level teacher often comes with a lower salary. How much money might a teacher make a year when they are first starting out? The mean salary for the lowest 10% of earners in this role nationwide is $30,230.

Incidentally, some teachers do rise to earn six figures. As teachers gain years of experience, they can increase their salary (the top 10% of earners make $102,800 per year).

What is the Average Salary for a Teacher?

Regarding how much a teacher can expect to earn on average, as briefly noted earlier, the national mean is $66,450. That being said, the state you work in can greatly impact how much they earn. Cost of living and other factors are responsible for the variation in salaries, which can be significant. For example:

•   The average annual salary in Florida is $32,088.

•   In Oregon, the average is $52,816.

Prospective teachers can review the following chart to learn more about what their salary and hourly wage expectations should be in their state.

What is the Average Teacher Salary by State for 2023

State	Annual Salary	Monthly Pay	Weekly Pay	Hourly Wage
Oregon	$52,816	$4,401	$1,015	$25.39
Alaska	$52,647	$4,387	$1,012	$25.31
North Dakota	$52,570	$4,380	$1,010	$25.27
Massachusetts	$52,116	$4,343	$1,002	$25.06
Hawaii	$51,472	$4,289	$989	$24.75
Washington	$50,724	$4,227	$975	$24.39
Nevada	$49,778	$4,148	$957	$23.93
South Dakota	$49,685	$4,140	$955	$23.89
Colorado	$49,299	$4,108	$948	$23.70
Rhode Island	$48,919	$4,076	$940	$23.52
Mississippi	$47,737	$3,978	$918	$22.95
New York	$47,209	$3,934	$907	$22.70
Delaware	$46,389	$3,865	$892	$22.30
Vermont	$46,082	$3,840	$886	$22.15
Virginia	$45,736	$3,811	$879	$21.99
Illinois	$45,640	$3,803	$877	$21.94
Maryland	$44,930	$3,744	$864	$21.60
Kansas	$44,913	$3,742	$863	$21.59
Nebraska	$43,985	$3,665	$845	$21.15
California	$43,746	$3,645	$841	$21.03
Missouri	$43,676	$3,639	$839	$21.00
South Carolina	$43,292	$3,607	$832	$20.81
Pennsylvania	$43,247	$3,603	$831	$20.79
New Jersey	$43,214	$3,601	$831	$20.78
Wisconsin	$42,811	$3,567	$823	$20.58
Maine	$42,741	$3,561	$821	$20.55
Oklahoma	$42,596	$3,549	$819	$20.48
North Carolina	$42,399	$3,533	$815	$20.38
New Hampshire	$42,049	$3,504	$808	$20.22
Idaho	$41,837	$3,486	$804	$20.11
Texas	$41,544	$3,462	$798	$19.97
Wyoming	$41,397	$3,449	$796	$19.90
Minnesota	$41,366	$3,447	$795	$19.89
Kentucky	$41,187	$3,432	$792	$19.80
New Mexico	$41,116	$3,426	$790	$19.77
Indiana	$40,861	$3,405	$785	$19.64
Michigan	$40,815	$3,401	$784	$19.62
Ohio	$40,205	$3,350	$773	$19.33
Arizona	$40,016	$3,334	$769	$19.24
Connecticut	$39,902	$3,325	$767	$19.18
Iowa	$39,557	$3,296	$760	$19.02
Montana	$39,413	$3,284	$757	$18.95
Arkansas	$38,945	$3,245	$748	$18.72
Alabama	$38,921	$3,243	$748	$18.71
Utah	$38,419	$3,201	$738	$18.47
Tennessee	$38,383	$3,198	$738	$18.45
Georgia	$36,258	$3,021	$697	$17.43
Louisiana	$36,117	$3,009	$694	$17.36
West Virginia	$33,400	$2,783	$642	$16.06
Florida	$32,088	$2,674	$617	$15.43

Source: ZipRecruiter

Recommended: What Trade Makes the Most Money?

Teacher Job Considerations for Pay & Benefits

How much a teacher earns and what type of benefits they qualify for can depend on if they choose to work as a full-time teacher or as a substitute teacher. If someone works as a substitute, they are generally paid a day rate only for the days they work and don’t qualify for benefits like health care or retirement plans.

However, working as a substitute teacher can be a great job for retirees looking to earn a bit of extra cash without committing to a consistent part-time work schedule. It might be good for someone who has a side hustle going or can fill in free days with work as, say, a rideshare driver or babysitter.

Full-time teachers generally qualify for those benefits and other traditional employee benefits like paid time off for sick and personal days. Some may even still qualify for pensions, which can be a real plus when it comes to retirement planning.

There’s also the fact that school is out in the summer. Some teachers may love this time off and want that family time. Others may choose to teach summer school or at a camp or otherwise bring in extra income. Still others may use that time for creative or entrepreneurial projects, but it’s important to note whether or not you will receive a paycheck during those months.


💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Pros and Cons of Teacher Salary

Still on the fence about becoming a teacher? These are some of the common pros and cons associated with the salary.

Pros	Cons
Full-time salaries available	May not receive pay during summer or holiday breaks
Compensation package often includes benefits

Recommended: How to Negotiate for Competitive Pay

The Takeaway

The average teacher salary in the US tops $66,000. If someone has a passion for teaching and likes working with young people, they will likely love their job. There are also valuable benefits that may be available, such as paid vacations and summers off.

SoFi helps you stay on top of your finances.

FAQ

Can you make 100k a year as a teacher?

It is possible to make $100,000 a year as a teacher, which is a good salary. The 90th percentile of earners in this role nationwide brings home $102,800 annually. Teachers tend to see higher salaries as they gain years of work experience.

Do people like being a teacher?

Working as a teacher can be very hard work, but it is often very rewarding. Those who enjoy working with children and helping them learn will find they get a lot out of being a teacher. However, if they consider themselves to be antisocial, they may find this role very draining.

Is it hard to get hired as a teacher?

How challenging it is to get hired as a teacher can vary by location and year. It simply depends on what the current demand for teachers is. It is generally harder to find a role as a public school teacher as those jobs require having specific advanced degrees.

---

Photo credit: iStock/baona

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

SORL0124023

Read more

Real estate investing can be an effective way to hedge against the effects of inflation in a portfolio while generating a steady stream of income. When it comes to how to invest in real estate, there’s no single path to entry.

Where you decide to get started can ultimately depend on how much money you have to invest, your risk tolerance, and how hands-on you want to be when managing real estate investments.

Why Invest in Real Estate?

Real estate investing can yield numerous benefits, for new and seasoned investors alike. Here are some of the main advantages to consider with property investments.

•   Real estate can diversify your portfolio, allowing you to better balance risk and rewards.

•   Provides the opportunity to generate investment returns outside of owning securities such as stocks, ETFs, or bonds.

•   Historically, real estate is often seen as a hedge against inflation, since property prices tend to increase in tandem with price increases for other consumer goods and services.

•   Owning real estate investments can allow you to generate a steady stream of passive income in the form of rents or dividends.

•   Rental property ownership can include some tax breaks since the IRS allows you to deduct ordinary and necessary expenses related to operating the property.

•   Real estate may appreciate significantly over time, which could result in a sizable gain should you decide to sell it. However, real estate can also depreciate in value, leading to a possible loss or negative return. Investors should know that the real estate market is different than the stock market, and adjust their expectations accordingly.

There’s one more thing that makes real estate investing for beginners particularly attractive: There are many ways to do it, which means you can choose investments that are best suited to your needs and goals.

💡 Quick Tip: While investing directly in alternative assets often requires high minimum amounts, investing in alts through a mutual fund or ETF generally involves a low minimum requirement, making them accessible to retail investors.

7 Ways to Invest in Real Estate

Real estate investments can take different forms, some of which require direct property ownership and others that don’t. As you compare different real estate investments, here are some important things to weigh:

•   Minimum investment requirements

•   Any fees you might pay to own the investment

•   Holding periods

•   Past performance and expected returns

•   Investment-specific risk factors

With those things in mind, here are seven ways to get started with real estate investing for beginners.

1. Real Estate Investment Trusts (REITs)

A real estate investment trust (REIT) is a company that owns and operates income-producing properties. The types of properties you might find in a REIT include warehouses, storage facilities, shopping centers, and office space. A REIT may also own mortgages or mortgage-backed securities.

REITs allow investors to enjoy the benefits of property ownership without having to buy a building or land. Specifically, that means steady income as REITs are required to pay out 90% of taxable income annually to shareholders in the form of dividends. Most REIT dividends are considered to be ordinary income for tax purposes.

Many REITs are publicly traded on an exchange just like a stock. That means you can buy shares through your brokerage account if you have one, making it relatively easy to add REITs to your portfolio. Remember to consider any commission fees you might pay to trade REIT shares in your brokerage account.

2. Real Estate Funds

Real estate funds are mutual funds that own a basket of securities. Depending on the fund’s investment strategy, that may include:

•   Individual commercial properties

•   REITs

•   Mortgages and mortgage-backed securities

Mutual funds also trade on stock exchanges, just like REITs. One of the key differences is that mutual funds are not required to pay out dividends to investors, though they can do so.

Instead, real estate funds aim to provide value to investors in the form of capital appreciation. A real estate fund may buy and hold property investments for the long term, in anticipation of those investments increasing in value over time.

Investing in a real estate fund vs. REIT could offer broader exposure to a wider range of property types or investments. A REIT, for instance, may invest only in hotels and resorts whereas a real estate mutual fund may diversify with hotels, office space, retail centers, and other property types.

3. REIT ETFs

A REIT ETF or exchange-traded fund is similar to a mutual fund, but the difference is that it trades on an exchange just like a stock. There’s also a difference between REIT ETFs and real estate mutual funds regarding what they invest in. With a REIT ETF, holdings are primarily concentrated on real estate investment trusts only.

That means you could buy a single REIT ETF and gain exposure to 10, 20 or more REITs in one investment vehicle.

Some of the main advantages of choosing a REIT ETF vs. real estate funds or individual REITs include:

•   Increased tax efficiency

•   Lower expense ratios

•   Potential for higher returns

A REIT ETF may also offer a lower minimum investment than a REIT or real estate fund, which could make it suitable for beginning investors who are working with a smaller amount of capital.

But along with those advantages, investors should know about some of the potential drawbacks:

•   ETF values may be sensitive to interest rate changes

•   REIT ETFs may experience volatility related to property trends

•   REIT ETFs may be subject to several other types of risk, such as management and liquidity risk more so than other types of ETFs.

As always, investors should consider the risks along with the potential advantages of any investment.

4. Real Estate Crowdfunding

Real estate crowdfunding platforms allow multiple investors to come together and pool funds to fund property investments. The minimum investment may be as low as $500, depending on which platform you’re using, and if you have enough cash to invest you could fund multiple projects.

Compared to REITs, REIT ETFs, or real estate funds, crowdfunding is less liquid since there’s usually a required minimum holding period you’re expected to commit to. That’s important to know if you’re not looking to tie up substantial amounts of money for several years.

You’ll also need to meet a platform’s requirements before you can invest. Some crowdfunding platforms only accept accredited investors. To be accredited, you must:

•   Have a net worth over $1 million, excluding your primary residence, OR

•   Have an income of $200,000 ($300,000 if married) for each of the prior two years, with the expectation of future income at the same level

You can also qualify as accredited if you hold a Series 7, Series 65, or Series 82 securities license.

5. Rental Properties

Buying a rental property can help you create a long-term stream of income if you’re able to keep tenants in the home. Some of the ways you could generate rental income with real estate include:

•   Buying a second home and renting it out to long-term tenants

•   Buying a vacation home and renting it to short-term or seasonal tenants

•   Purchasing a multi-unit property, such as a duplex or triplex, and renting to multiple tenants

•   Renting a room in your home

But recognize the risks or downsides associated with rental properties, too:

•   Negative cash flow resulting from tenancy problems

•   Problem tenants

•   Lack of liquidity

•   Maintenance costs and property taxes

Further, the biggest consideration with rental properties usually revolves around how you’re going to finance a property purchase. You might try for a conventional mortgage, an FHA loan if you’re buying a multifamily home and plan to live in one of the units, a home equity loan or HELOC if you own a primary residence, or seller financing.

Each one has different credit, income, and down payment requirements. Weighing the pros and cons of each one can help you decide which financing option might be best.

6. Fix and Flip Properties

With fix-and-flip investments, you buy a property to renovate and then resell it for (ideally) a large profit. Becoming a house flipper could be lucrative if you’re able to buy properties low, then sell high, but it does take some knowledge of the local market you plan to sell in.

You’ll also have to think about who’s going to handle the renovations. Doing them yourself means you don’t have to spend any money hiring contractors, but if you’re not experienced with home improvements you could end up making more work for yourself in the long run.

If you’re looking for a financing option, hard money loans are one possibility. These loans let you borrow enough to cover the purchase price of the home and your estimated improvements, and make interest-only payments. However, these loans typically have terms ranging from 9 to 18 months so you’ll need to be fairly certain you can sell the property within that time frame.

7. Invest in Your Own Home

If you own a home, you could treat it as an investment on its own. Making improvements to your property that raise its value, for example, could pay off later should you decide to sell it. You may also be able to claim a tax break for the interest you pay on your mortgage.

Don’t own a home yet? Understanding what you need to qualify for a mortgage is a good place to start. Once you’re financially ready to buy, you can take the next step and shop around for the best mortgage lenders.

How to Know If Investing in Real Estate Is a Good Idea for You

Is real estate investing right for everyone? Not necessarily, as every investor’s goals are different. Asking yourself these questions can help you determine where real estate might fit into your portfolio:

•   How much money are you able and willing to invest in real estate?

•   What is your main goal or reason for considering property investments?

•   If you’re interested in rental properties, will you oversee their management yourself or hire a property management company? How much income would you need them to generate?

•   If you’re considering a fix-and-flip, can you make the necessary commitment of time and sweat equity to get the property ready to list?

•   How will you finance a rental or fix-and-flip if you’re thinking of pursuing either one?

•   If you’re thinking of choosing REITs, real estate crowdfunding, or REIT ETFs, how long do you anticipate holding them in your portfolio?

•   How much risk do you feel comfortable with, and what do you perceive as the biggest risks of real estate investing?

Talking to a financial advisor may be helpful if you’re wondering how real estate investments might affect your tax situation, or have a bigger goal in mind, like generating enough passive income from investments to retire early.

💡 Quick Tip: When you’re actively investing in stocks, it’s important to ask what types of fees you might have to pay. For example, brokers may charge a flat fee for trading stocks, or require some commission for every trade. Taking the time to manage investment costs can be beneficial over the long term.

The Takeaway

Real estate investing is one of the most attractive alternative investments for portfolio diversification. While you might assume that property investing is only for the super-rich, it’s not as difficult to get started as you might think. Keep in mind that, depending on how much money you have to invest initially and the degree of risk you’re comfortable taking, you’re not just limited to one option when building out your portfolio with real estate.

Ready to expand your portfolio's growth potential? Alternative investments, traditionally available to high-net-worth individuals, are accessible to everyday investors on SoFi's easy-to-use platform. Investments in commodities, real estate, venture capital, and more are now within reach. Alternative investments can be high risk, so it's important to consider your portfolio goals and risk tolerance to determine if they're right for you.

Invest in alts to take your portfolio beyond stocks and bonds.

FAQ

How Can I Invest in Property With Little Money?

If you don’t have a lot of money to invest in property, you might consider real estate investment trusts or real estate ETFs for your first investments. REITs and ETFs can offer lower barriers to entry versus something like purchasing a rental property or a fix-and-flip property.

Is Real Estate Investing Worth It?

Real estate investing can be worth it if you’re able to generate steady cash flow and income, hedge against inflation, enjoy tax breaks, and/or earn above-average returns. Whether investing in real estate is worth it for you can depend on what your goals are, how much money you have to invest, and how much time you’re willing to commit to managing those investments.

Is Investing in Real Estate Better Than Stocks?

Real estate tends to have a low correlation with stocks, meaning that what happens in the stock market doesn’t necessarily affect what happens in the property markets. Investing in real estate can also be attractive for investors who are looking for a way to hedge against the effects of inflation over the long term.

Is Investing in Real Estate Safer Than Stocks?

Just like stocks, real estate investments carry risk meaning one isn’t necessarily safer than the other. Investing in both real estate and stocks can help you create a well-rounded portfolio, as the risk/reward profile for each one isn’t the same.

---

Photo credit: iStock/Pheelings Media
SoFi Invest®
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

[cd_fund-fees]
Exchange Traded Funds (ETFs): Investors should carefully consider the information contained in the prospectus, which contains the Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website or by email customer service at [email protected]. Please read the prospectus carefully prior to investing.
Shares of ETFs must be bought and sold at market price, which can vary significantly from the Fund’s net asset value (NAV). Investment returns are subject to market volatility and shares may be worth more or less their original value when redeemed. The diversification of an ETF will not protect against loss. An ETF may not achieve its stated investment objective. Rebalancing and other activities within the fund may be subject to tax consequences.

Claw Promotion: Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.


An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. This and other important information are contained in the Fund’s prospectus. For a current prospectus, please click the Prospectus link on the Fund’s respective page. The prospectus should be read carefully prior to investing.
Alternative investments, including funds that invest in alternative investments, are risky and may not be suitable for all investors. Alternative investments often employ leveraging and other speculative practices that increase an investor's risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information. Registered and unregistered alternative investments are not subject to the same regulatory requirements as mutual funds.
Please note that Interval Funds are illiquid instruments, hence the ability to trade on your timeline may be restricted. Investors should review the fee schedule for Interval Funds via the prospectus.

SOIN0124116

Read more