Are you wondering whether you need a real estate license to flip houses?
It’s not surprising that you’re not the only one going through this. There is often a heated debate among investors about whether they should get a real estate license when flipping houses.
Using your real estate license actively can expose you to more liability than working with another agent. You will need to make additional disclosures, which can take more time away from your valuable time.
You may also be subject to a strict code of ethics if you join your local Realtor’s association, increasing your risk of complaints. Despite this, flipping houses has huge advantages.
Flipping houses requires a real estate license. Should I get one?
You should only get a real estate license if it makes sense for you and your house-flipping business. To flip houses professionally, Tony Martins, the founder of Profitable Ventures, does not require a real estate license.
It is not necessary to have a real estate license to flip houses. Understanding property laws can be helpful, but you can also accomplish the same thing by studying on your own time.
To obtain a real estate license, you must complete the real estate education required by your state. In this form of real estate education, you will gain some insight into the legal and financial aspects of real estate transactions, but you should be aware that it is not practical for flipping houses.
The biggest benefit of having a real estate license is having direct MLS access. It is certainly a great way to save when buying homes for real estate investment purposes. Depending on the property, savings can easily reach $3,000. Real estate licenses also give you the ability to list your properties for free on the Multiple Listing Service. In flipping houses, the MLS accounts for around 80% of property sales and is far more effective than other forms of marketing.
With a real estate license, you can both enjoy the accessibility and savings of real estate investing without incurring extra liabilities or adding to your real estate investing workload. When you have obtained your real estate license, you can legally receive referral fees from agents when flipping houses.
It means you can hire another licensed agent to do the work and receive the bulk of the commission back. As a result, you have more profit in your pocket and can even receive more cash upfront when flipping houses. Another option is to hire a virtual assistant to assist you with flipping houses daily. From searching for houses to uploading listings to reviewing contracts, they can do it all.