I'm new to Bigger Pockets but already a huge fan!
My question is, would anyone recommend getting my real estate license to start fliping or wholesaling? If so, is there a way to get sponsored by a brokerage company to get the cost covered for the classes?
I have never heard of a brokerage paying for a new agent to get their license. You will have to cover that yourself. What happens when they pay and then you switch brokerages? This will not happen.
You dont need it to flip but it would hurt as there are many benefits to being an agent. I am glad I am one as I have been able to make additional commissions that I would never have been able to before.
@Kevin Hart welcome to the site.
I've seen ads for Howard Hanna brokerages that offer to pay for an agents classes. In return they give the agent a low split and have them sign a 1-2yr non compete clause
@Kevin Hart That question has been around since government regulation started. And the universal answer is "it depends." There are many people who adamantly say you need to have it, and just as many say that you shouldn't have it. The question to you, is this;
What does a license do for YOU? Does it help your business model?
- The required classes for a license do not teach investing. They teach a basic understanding real estate concepts such as Title and Appraisal, and compliance with state law.
- A license will require $$ ($1500-2500) each year to maintain your license through Continuing Education and other fees.
- A license requires you disclose you are an agent to every potential buyer or seller.
- You can pay for your own MLS login.
- You can also pay yourself your own agent commission (after your broker gets a cut)
- You can represent others in their deals.
A license is a state sanction that allows you to put together real estate transactions "for another" and to receive a commission. That can be a nice additional stream of income.
If you want a license for the ease of access to the MLS, or other agent activities, then knock yourself out and get one. Just figure the cost of the license into your business model.
If you are doing real estate for yourself, there is no need for a license.
So, back to your original question. "would anyone recommend getting my real estate license to start flipping or wholesaling?"
Personally, I would say "NO" I would not recommend you get your license to start wholesaling or flipping. However, you MAY want to get a license for the other reasons.
Welcome! I am a newbie from Cincinnati as well. I am meeting with a few brokers this week to discuss becoming an agent (again). I am choosing to be an agent as an additional stream of income and to make contacts in the industry. Even if the brokers don't formally offer a "sponsorship" program, I plan to propose a mutually beneficial situation. They can't say "yes" if I never ask!
@Darrin Carey thanks for the advice. I didn't realize I could get access to the MLS without a license. I'll definitely look into that.
The only other reason I was interested in getting licensed was I figured being an agent for a little while would help me learn more about buying and selling.
But, if you ever need help in Cincinnati, I'd love to help and learn from an experienced pro like yourself.
@Kevin Hart Sorry, I wasn't clear. I meant having a license allows you to pay for MLS access. It's about $25 per month. An unlicensed assistant, and some other related professionals can also get access without a license.
Comps are getting easier to find without the MLS, but the MLS is still a great resource.
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