Do You Need A Real Estate License To Flip Houses?
Author:
Kaitlin DavisJun 28, 2024
•5-minute read
One of the many ways to make money in real estate is by flipping properties, which is the act of purchasing distressed properties, fixing them up and reselling them for a profit.
While you don’t need a real estate license to flip houses, having one comes with pros and cons.
Do You Need A License To Flip Houses?
You don’t need a real estate license to flip houses. The coursework for a real estate license teaches agents about the laws, regulations and ethics that govern the real estate industry, not the business and economics behind being a successful flipper.
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 throug