Becoming a Real Estate Agent Can Boost Your House Flipping Career
The popularity of HGTV house flipping shows has led people to ask, “Do you need a real estate license to flip houses?” Or, even if you don’t need to be licensed, is it best to be a licensed agent anyway? What benefits are there for the agent who flips houses that don’t exist otherwise?
While you don’t need a real estate license to flip houses, this guide on real estate agents flipping houses will cover why getting a real estate license is a great way to begin your house flipping career.
Reasons to Get a Real Estate License Before Flipping a House
Avoid Agent Fees and Commissions
Real estate agents make their money off of commissions. A real estate commission is a fee real estate agents receive after making a sale on a property. It is usually paid to the brokerage for which the real estate agent works, then it’s split based on the negotiated contract between the relevant parties. Consensus says this commission fee is 6%, though statistics show this figure as being closer to 5% on average. When it comes to real estate agents flipping houses, having your real estate license can literally pay off: If you’re a real estate agent yourself, you can avoid commission fees and take home more of the profit.
Become Knowledgeable About the Real Estate Industry
Another significant benefit to real estate agents flipping houses is the amount of industry knowledge you stand to gain. So the question is not can real estate agents flip houses - they absolutely should flip houses because of the in-depth knowledge that can be gained through the process.
When it comes to real estate, any way to distinguish yourself from other agents is the secret to success. There’s a sea of competition, and the current popularity of house flipping, those looking to get into this particular niche will need all of the help they can get. A real estate license will set you apart, allow you to earn more money, and enable you to put your house flipping knowledge to broader use within the industry.
Speaking of competitive advantages, you also don’t need a contractor’s license to flip houses, but it’s another way to give you an edge over the competition. We recommend that you not only get a real estate license to flip houses, but a contractor’s license as well to make your services truly stand out from the pack.
Network With Real Estate Professionals and Contractors
Networking in real estate is a must. No matter your niche, knowing the people of influence in your community is another great way to set yourself up for success. To get started in flipping houses, knowing the right professionals can greatly benefit your career. Your network can get more eyes on the properties you’ve flipped and are looking to sell. But before you sell the property, you need to “flip” it. In other words, you need to know not just who are contractors in your area, but who are the most reliable and trustworthy contractors to bring onto your project.
When you first start out flipping houses, making these connections is difficult. If you’re a part of a network of professionals, they could steer in the right direction when it comes to which contractors to use. After getting your real estate license to gain industry knowledge, networking is the next ingredient to make your flipping career as great as it can be.
Obtain Access to the Multiple Listing Service
You have “flipped” your property, and it’s finally ready to hit the market. Your networking with real estate professionals and contractors paid off, and everything is looking great - so, what’s the next step for real estate agents flipping houses? Posting your flipped property on the Multiple Listing Service (MLS) is the best way to get your listing in front of possible buyers. This software allows real estate agents to search for listings from other members of the MLS. To bring back that key question, “Should I get a real estate license to flip houses?” To gain access to the MLS, you need a real estate license. So while we simply recommend that you get your real estate license to flip houses, this is one area in which licensure is required.
How to Become a Real Estate Agent
Now that you know why you should get a real estate license to flip houses, how do you become a real estate agent? The five steps below will guide you through the process to become a real estate agent. Typically the process plays out in the order it’s listed below when you pursue a career as a real estate agent, but each state will have subtle differences as to how to get a real estate license.
- Qualify to become an agent in your state
- Complete your states required Pre-Licensing coursework
- Pass your state’s real estate exam
- Find a broker to work under
- Apply for your real estate license
If you have any questions on how to get your real estate license, please reach out to us at 888.827.0777, email Support@TheCEShop.com, or contact us via chat.