Pros Of Flipping Houses With A Real Estate License
While a real estate license isn’t required to start flipping houses, having one can work to your benefit as a house flipper.
A license can make you more knowledgeable in real estate processes, and it grants you access to tools and resources that can make real estate investing easier and more profitable.
Real Estate Knowledge And Experience
Becoming a real estate agent can help you become more knowledgeable about the real estate market, along with its processes and the important permits and regulations that pertain to flipping homes.
Having your real estate license ensures you’re educated on the steps to be successful when you’re buying and selling. A real estate license also prepares you for some of the surprises you may encounter after purchasing your fixer upper.
Access To The MLS
The multiple listing service (MLS) is a tool that real estate professionals use to share information with each other about all homes for sale in a given area.
This service also gives real estate investors useful information about investment properties and enables them to cast a wider net when trying to reach potential buyers. The MLS is not publicly available. You can access it only if you become a licensed real estate agent.
Added Source Of Income
Even as a full-time business, house flipping can be an inconsistent source of income. You may need to supplement the money made from investment properties with additional income streams.
If you’re looking to get into flipping homes, it’s likely that you already have a strong passion for business and a dedicated mindset – traits that’ll take you far as a real estate agent. As long as you’re able to sell properties, you can make commissions as a real estate agent to supplement the profits you make from flipping homes.
No Agent Commissions
When you buy or sell a home through a real estate agent, you (or the seller) have to pay them a fee. Most agents don’t charge a flat rate; instead, they charge a percentage of the home’s selling value – also known as a commission fee.
By becoming your own real estate agent, you’ll bypass agent commission fees and retain more of the profit.
Extended Network
House flippers need to have connections with contractors, inspectors, other investors and, of course, real estate agents to be successful. By becoming a real estate agent, you can expand on your network and build relationships with other real estate professionals.
More Credibility
When it comes time to sell a flipped house, credibility is crucial. Because you’re a professional who understands the legal and financial side of buying and selling properties, prospective buyers are more likely to perceive you as knowledgeable and trustworthy. Buyer’s agents may also be more likely to present your fixer-upper to their clients if they see you’re a fellow real estate agent.
