Flipping homes have become increasingly more popular in the past several years. It is a very creative and non-traditional way to make some extra cash that can be enjoyable. Many investors wonder if it is necessary to get a real estate license before starting to flip homes. While it is not necessary, it brings about many benefits and can be a very useful tool. You should get a real estate license if you are going to flip more than 1 or 2 houses a year. Also, it brings about a lot of networking where you are exposed to many new people who can buy your homes and who you can buy homes from to flip.
Here are some tips and topics about having a real estate license and flipping homes.
Strong knowledge of real estate
If you start to have an interest in flipping homes, but you don’t know a whole lot about the business aspect of it yet, it may seem very difficult. With a real estate license, you will be exposed to the foundation of real estate and will better understand how to create a home that will sell quickly.
It also helps you understand what customers want. You will get familiar with the popular areas that people frequently buy homes in, and what people are looking for when buying a home. Overall it gives you a great foundation to base the homes you are flipping off of.
It could help you become very successful at flipping homes, instead of just mediocre. The industry can teach a lot and the education you receive to get your license will carry through your entire career.
MLS (Multiple Listing Service)
The MLS is the Multiple Listing Service which real estate brokers use to represent sellers and share information about properties or assets. It is the most accurate and verified way to find a property.
If you not a member of a real estate association on some level, you could pay up to $1,000 to list your property on MLS.
Basically, if you don’t have a real estate license you would never have access to all this networking and pool of buyers and sellers. If you are trying to flip multiple homes, $1,000 a home can really affect how much profit you are going to make overall.
Having a license gives you access to deals that you would have never found out about before. You won’t have to wait for a realtor to tell you about a deal, you will know immediately.
It also gives you the opportunity to see houses before they are even on the market and also maybe even sell a house you’ve flipped before you put it up for sale.
Networking and connections are everything and can be the difference between losing money and making a good profit. You are immersing yourself in a pool of experts who are very knowledgeable on the topic and can help you get the most profit out of flipping homes.
You’ll also get exposure to plumbers, painters, etc. who can help you when it comes to flipping your house. You will be introduced to people and businesses that can help you. Even if you don’t meet them first hand, others in the field can recommend them to you. You will have the opportunity to meet so many people that can help with this aspect of your life.
The real estate agent who shows up with the buyer will always receive a small percentage of about 2-3% of the home when bringing a buyer. If you have a real estate license you can represent your own property and therefore you get the commission.
You could save up to $3,000 or more depending on the listing price. This makes a huge difference when you are hoping to flip several homes. You wouldn’t have to go through anyone else and work with their schedules, it would all be on your own time, and you will be receiving the commission rather than an agent representing you.
Basically, you can make money off of selling others home while you’re fixing up your own to sell as well. Since you basically control your schedule, you can work around not only your social life but the hours that you really want to spend on working on your houses or properties you’re trying to flip as well.
Options with a real estate license
Along with having a real estate license brings upon the opportunities to be other things as well. You can be a sales agent, a broker, or a leasing agent. A sales agent basically is someone who assists others in buying and selling a property. A broker is someone who is actually licensed to manage their own real estate agents. A leasing agent works on finding good tenants for building for property owners.
It is important to know that you do have many options to do once you do have this license. Even if you are simply getting it to help with flipping homes, it opens so many doors for you.
When you are buying a house, reconstructing it, and then trying to sell it and make a profit, you are doing a lot of estimating. This may be hard at first if you don’t have a lot of experience with how much homes sell for. Estimating plays a very important role in making the most profit in this situation, so it is good to be educated. If you have a real estate license you will be surrounded by this environment all the time and have a better idea about the prices of homes. If you have a good concept of how much homes sell for, and what they need to have to sell for certain prices, you will start having a better idea of how much money to spend on specifics when flipping a home.
Education is hard work
Now all of these topics have really good points, but it is important to remember that getting a real estate license is going to be expensive just like all other education. It also takes a lot of hard work and dedication and wants to learn more about the topic. You have to like what you’re doing to do well in it.
If you don’t find real estate interesting it might not be worth it to spend the money and do the work to get the license. It can be a great tool to have when flipping homes but it is a costly and time-consuming task. Don’t get yourself involved in trying to get the license if you aren’t interested in the commitment.
There is also a lot of paperwork that you will have to be responsible for Turning into lawyers, agents, and brokers. A real estate license is a great thing to have but it isn’t all rainbows, butterflies, and profit. You have to put the work and the time in. So be sure that you are aware of your responsibilities before you get involved.
To learn more about how to get a real estate license check out Kaplan.
Flipping homes can be a great thing to get involved with. I talked about how a real estate license is not mandatory when flipping homes, but there are so many benefits that you will get out of having a license when flipping homes.
There are so many networking opportunities with a license to meet buyers and sellers and have a better opportunity to sell your house. Apart from networking, you can learn so much from the education of getting a license that will help you when it comes time to flip homes. You will have all the information you need to be successful.
You will also be surrounded by the real estate business enough to have valid reasoning for estimation when it comes to buying and renovating a home. There are a lot of numbers and estimating when it comes to hoping to profit from a home being flipped, and any information and education you can get on selling homes can help.
Although there are many benefits of getting a license, it is important to remember that there is a lot of hard work, dedication, and expenses that come along with it. Education for real estate can be expensive just like anything else. It also takes a lot of time, energy, and paperwork. Make the decision that is best for you, but makes sure to evaluate the pros and cons and be prepared for what you are getting yourself into.