It is certainly not necessary to have a real estate license to apply for a fix and flip loan and flip houses. However, it could certainly be beneficial. There are many reasons to consider it. After some research, you can decide of a real estate license would be beneficial to you. It definitely takes some time and money to get the license. What you learn in the classes will help you better understand real estate transactions. But won’t really help you learn about the process of flipping a house. A real estate license also means that more of your time will be taken up with the transaction and that you open yourself up to more liability. However, there are many financial and general business related advantages to getting a real estate license.
A Real Estate License Can Help You Get More Contacts for Rehab Loan Deals
The first and most obvious advantage is that you will get to be the listing agent for your finished house and pocket the money instead of paying the commission to another realtor. At a 3% listing fee, that is a savings of $4500 on a $150,000 property. The more the home is listed for, the more you will save. A real estate license also gives you direct access to the MLS. You will be able to see deals on properties that you may not have otherwise known about and also be allowed to list your own properties for free. Speed in this industry can count for a lot, and the sooner your jump on a good deal the better.
A real estate license also opens many new doors to house flippers. You will be able to meet more people in the real estate industry. The more contacts you have, the more likely you will be to find new deals and opportunities. In addition to this, you may find that you really enjoy selling real estate or helping buyers to find their dream home. Even if you just help friends or family buy or sell properties you can make some nice commissions. Maybe with a little extra income you could buy houses with cash and not need a rehab loan or a fix and flip loan. Weigh the pros and cons carefully. Decide whether a real estate license may be the best idea for moving your business forward.