It’s not necessary to possess a real estate license to become a house flipper, but it is suggested since it will broaden your prospects throughout the process.
Why should you get a real estate license to flip houses? You may think that as long as you have the money, skills, and knowledge to make successful deals, having your real estate license is unnecessary.
We cannot blame those who believe this because many famous house flippers don’t have it. However, we can confidently say that having a real estate license will give any new real estate investor an advantage no matter how good they are at doing deals and 3d architectural rendering.
Every person that has ever wanted to become a real estate investor should consider getting their real estate license. There are many reasons why being licensed will help you become a better and more profitable flipper. Let’s take a look at some of the most compelling benefits you’ll have once you have your real estate license or brokerage license.
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You Can Ask For A Discount From Contractors Or Other Vendors
One huge benefit of being a licensed realtor is that you can ask for discounts from contractors or other vendors you will hire for your flips. Contractors and other professionals in the industry know that realtors have access to many potential buyers, so they will be more likely to give you a discount if you are a licensed realtor.
You Can Get Access To More Properties
Being a real estate agent also gives you access to many properties that are not available to the public. Most of these properties are listed exclusively with real estate agents and are not advertised online or in newspapers. The sellers or agents want to deal only with licensed agents.
You Can Set Your Hours
One of the biggest advantages of being a real estate agent is that you can set your own hours. It means that you can work as much or as little as you want, and you can take time off whenever you want.
You, Will, Get Paid Higher Commissions
Lastly, another huge benefit of being a licensed realtor is getting paid higher commissions. Most agents receive a commission of 5-6% of the deal amount, while some experienced agents may negotiate a commission rate of 10-12%. So if you’re looking to make more money flipping houses, then getting your real estate license is the way to go!
You can list properties for sale directly with homeowners
It will give you complete control over the sales process. It also allows you to earn money on every single deal instead of only making commissions when working with agents as buyers agents, sellers agents, or sub brokerages. My friends from Icons of Real Estate regularly publish interesting posts about various brokerages. I highly recommend checking them out for more information.
It will be much easier for people to trust you as an agent because they see that a lot of work is put into becoming a real estate agent. They will feel more confident entrusting you with their most significant investment and potentially life-changing decision to sell or buy a home.
You, Will, be Able to Attend Open Houses
You can attend all the open houses that occur every weekend, where potential deals are often found without being out on your searching for properties yourself. Real estate agents will also give you access to listings they don’t advertise to find you good deals and not waste your time with bad opportunities. It means if the agent knows that most homes in your market do not sell in a week, they will only send you listings that have been on the market for more than seven days.
You Can have Access to Network
You have access to a network of professionals that can help you with your business. It could include home stagers, contractors, lawyers, and accountants. These are all important professionals to have on your team when flipping houses so that you can save money and time.
You Can Negotiate Better Deals
Being licensed allows you to negotiate deals better because agents are taught how to bargain and get the best prices for their clients. They know the market inside out and understand what different sellers are looking for when they put their homes on the market.
Last but not least, having a real estate license or brokerage license looks good on your resume. It shows that you are serious about real estate and have taken the time to get all the proper education and training.
Wrapping Up!
There are many reasons why getting a real estate license is essential for house flippers. Some of these reasons include the ability to ask for discounts from contractors and other vendors, the ability to get access to more properties, the ability to set your hours, and the ability to make higher commissions. So if you’re looking to become a successful house flipper, then getting your real estate license is the way to go!
Flipping houses can be a very profitable business venture, but it’s not without risks. By getting your real estate license or brokerage license, you’ll be able to mitigate some of those risks and increase your chances of success. So what are you waiting for? Get licensed and start flipping houses today!