There are a lot of people who message me about this question. They wonder if they are better off if they wait to buy their first flip until the are able to get their real estate license.
If it is going to keep you from getting started then absolutely “no”.
Not only that, it is not necessary to get a real estate license in order to buy a house to flip. In fact, it can actually be a negative especially when you are starting out. Here’s why:
1. A license doesn’t equal experience
When you obtain your real estate license you have studied and passed some tough exams. Congratulations! However, the license does not provide you with instant experience. In that way, it can be a challenge. While you may be able to book showings and access the MLS data on your own, you likely are still going to need the expertise of an agent to help with understanding it and applying it to a flip project.
2. The commission you earn may make a flip appear profitable when it wasn’t
The true profit from a flip is important to know. This is how you manage and purchase future projects and budgets. It may also influence the experiences you may draw on when helping others as well. If your numbers are including commission, which I see a lot of newer agent/investors use, then it is not a true return of the fip project itself. Make sure to separate out these numbers to most accurately determine the flip profit.
3. You change your business focus
Many investors when they become licensed start as a “flipper” but end up changing focus. It is a natural progression that as people find out more and more about what you do, that your traditional business side may increase. However, make sure that if you are trying to achieve success in a specific strategy, like house flipping, that you are not letting that fall to the side for the other part of the business.
House flipping is a lot of work and requires focus. When you are getting started learning how to do this well will be a commitment. When you may already be balancing another full time job and family or personal responsibiltiies there is a lot of balance involved. Getting your real estate license can easily be part of your future planning should you’d decide to continue with real estate and investing but do not let that be the factor that keeps you from starting.
So you’ve purchased a house to flip. Now what?
Want to buy a property and renovate it?
I have a freebie checklist that will help you — 8 Things I look for When Purchasing a Home. Just click here to download it.
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