Realtor license or not?

When I was rehabbing and flipping houses retail in South Florida, I had no Realtor license relying on my business partner who had. My thinking was that I did not want to be constrained with how I put together a deal. My partner had access to the MLS and that was all that we need.

When I came to Birmingham in September 2011, I obtained the license only because I needed access to the MLS, did not want to leave money on the table relying on another Realtor and needed to manage the properties I bought. In Alabama, you have to be licensed to do property management unless the properties are titled in your name.

What's the advantage? Access to the MLS, easy access to properties, and most importantly when I can not make my spread on a deal, I simply act as a Realtor on the transaction. Most investors and wholesalers have to walk away but not I.

After minimum two years of being licensed by state law, I obtained my broker's license. Now 100% of the commission is mine. Sure, there's a bit more paperwork involved and the liability would be in bringing on agents but I have no delusions of grandeur. I am a one man shop.

I just closed and flipped three houses yesterday. I have another closing on Friday. These I double closed. Three more houses I am putting under contract this week. I have 7 more closings next week where I not only earn project fees post closing for the renovations, but I am getting commissions of a minimum of $1000 per property. Do the math.

My exit strategy on each transaction is dictated by the profit margin. Instead of just wholesaling or double closing, getting a Realtor commission adds a third component that most investors just don't have.

Want to do more deals as an investor? Think about getting your Realtor license.