With so many different facets of real estate, there is a lot to consider what investments best fit your overall goals. Outside of properties, your time and education are another investment and many flippers opt to get a real estate license to help further their knowledge and capabilities within the field.
But like anything, investments require time—and time is money! So, is getting your real estate license worth the efforts?
Our expert house flippers weigh in on their thoughts. Read below to see the details and if this could be the right choice for you.
Flip Tips: Is it worth getting a real estate license? Why or why not? Do you have one or want one?
“It all depends on the individual investor, but personally I think it is worth getting a real estate license. It gives you the industry credibility if you are licensed as you are perceived to be a “professional”. It also makes you stay compliant with all real estate rules in the state, therefore reducing your chances of litigation. You are able to run your own comps and physically view properties without having to schedule it with a licensed agent. (You can view a lot more properties if you are licensed.) You are able to list your properties on the MLS without relying on another licensed agent, not to mention, you receive the commission during the sale of your properties which will be in addition to whatever you make on the deal. These are some of the reasons that made me acquire a real estate license and it’s probably one of the best decisions I ever made as an investor.”
-Albert Nyabwa, Texas, 35 flips completed, 4 years in the industry
“I am licensed. A license gives you full and legal access to MLS and allows you to take commissions.”
-Rainer Richter, Florida, 80 flips completed, 5 years in the industry
“I have a NC Brokers License. It has been useful in the past with referral fees. We are too busy renovating/building for me to become a Realtor. Overall I would say it is beneficial, but not necessary and maybe detrimental if you are trying to wholesale properties.”
-John Galarde, North Carolina, 30 years in the industry
“I don’t feel the need for one. I just work with an investor-friendly Realtor who I trust.”
-Steve Stimson, Texas, 60 flips completed, 4 years in the industry
“Yes. The information on the MLS is very helpful to all aspects of the process.”
-Daniel Carr, flips in Georgia, Alabama, and Florida, over 200 flips completed, 19 years in the industry
“We have avoided getting a license. We feel it puts too many restrictions on what you can do as an investor.”
-Mandy Clark, Nevada, 27 flips completed, 3 years in the industry
Deciding whether or not to get your real estate license or a real estate broker’s license is just one of the many decisions and options you have that could potentially help your business scale. However, it is your business to mold into what works best for you, and if this isn’t a fit, finding partners you trust can fill the void.
Get more helpful advice on next month’s Flip Tips and visit our other series topics like real estate niches, strategies on getting contractors to finish a job, and the top things to consider when buying an investment property.
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Disclaimer: The above is provided for informational purposes only and should not be considered tax, savings, financial, or legal advice.. All views and opinions expressed in this post belong to the individuals referenced. NMLS ID: 1125207 Terms, Privacy & Disclosures. Copyright LendingHome Corporation 2020.