Do You Need a Real Estate License to Flip Houses?

Do You Need a Real Estate License to Flip Houses?

by The CE Shop Team

Becoming a Real Estate Agent Can Boost Your House Flipping Career

Most of us have seen the house flipper dramas on television. The premise is always very similar: a licensed agent and a general contractor get together to start their own house flipping business. The real estate agent finds properties that need help, then negotiates a lower sale price with the homeowners based on the local real estate market. After the deal is done, the licensed contractor comes in for the next step in the flipping process. They revitalize the property, creating drama around renovation costs and the bottom line, while the agent starts marketing the property to potential buyers. Eventually, the property sells for a profit and everybody walks away just a little bit richer. 

The growing popularity of HGTV-style house flipping shows has likely led many people to wonder, “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?"

While you don’t need a real estate license to flip houses, this guide on real estate agents flipping houses will explain why getting a real estate license is a sizeable advantage if you're interested in flipping homes full-time.  

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 payment real estate agents receive after selling homes or if they're the buyer's agent. 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 real estate transaction 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 agent 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, distinguishing yourself from other agents is the secret to success. There’s a sea of competition, and with 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. Additionally, earning your license sets you up to pursue more lucrative opportunities, such as real estate investing. Whatever your business plan is, holding a real estate license can make your dreams more accessible.

Pro Tip:

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. That's why it's worth looking into joining the National Association of REALTORS® (NAR). No matter your niche, knowing the people of influence in your community is another great way to set yourself up for success. When you start flipping houses, knowing the right professionals can pump up your profit margin. Your network can get more eyes on the properties you’ve flipped and are looking to sell or help connect you with a group of real estate investors. But before you list properties, you need to “flip” them. 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 can be difficult. If you’re a part of a network of professionals, they refer you to quality contractors. After getting your real estate license and gaining 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 find potential homebuyers and snag the purchase price you're seeking. This software allows real estate agents to search for listings from other members of the MLS. For those still wondering if they should get a real estate license to flip houses, the answer is yes. After all, you need a real estate license to access the MLS. So while we simply recommend that you get your real estate license to flip houses, you'll need to have your license in order to access this crucial tool.  

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 of becoming 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 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, or contact us via chat.

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