To be able to wholesale, rehab and flip multiple properties intended for sale/rent for profit is it necessary that I may need to obtain a real estate license or no?
No, it is not. If you don't get a license, get a strong real estate agent on your team though.
Rehab and Flip Your OWN Deals...answer is NO
Represent someone else's Fix/Flip or secure a tenant for someone else's Hold (rental), YES
Wholesale: This can be a tricky area if you don't know what you are doing. In order to be a true wholesaler, you have to first acquire an "Equitable Interest" in the asset. This is were a ton of individuals usually mess up and if the transaction is done incorrectly, you could be viewed as practicing Real Estate without a License which is a crime and carries not only fines but potential jail time.
If you don't know what is meant by (and what the courts recognize as) Equitable Interest, then get educated first and then have an Attorney prepare your contracts with the necessary verbiage required in your jurisdiction. If you bypass the education part and just get your contracts, you may not know how to use them properly which again could present a problem for you./
I recently completed the 2 courses to become a licensed real estate agent in PA and have not taken the state exam to get licensed. During my coursework I was informed by an instructor that a "licensed" RE agent who purchases a property directly from a homeowner can be viewed as a "non-ethical" business practice since the RE agent has knowledge and can be seen as taking advantage of the home owner. Not sure if this is true or not? Can anyone give their 2 cents on this? Ultimately, I only want to have my license to have access to the MLS and to be able to represent myself in my own deals. I do not want to be a buyer/seller agent. I only want to wholesale & flip.
No there is no need to get a license. There are many pros but there are cons to this as well.
No, it's not necessary, if you are interested strongly in real estate investments, then just find a good mentor.
@Willy M. the information you received is inaccurate.
when you are licensed, the main thing you have to do is fully disclose, verbally and in writing if you make an offer, is that you are a licensed real estate agent acting as principal in the transaction.
there is nothing unethical so long as you fully disclose your status and act in good faith during the transaction.
hope that clarifies the issue./
@Willy M. Assuming the seller does not have an active listing agreement with another agent, it is not unethical for you to deal with him directly, as long as you disclose you're a licensed real estate agent. And that's why I advise investors who are only buying and selling their own property to not get a license. Here in Texas, a licensed real estate agent is required to disclose their status "at the first substantive discussion."
You state that you do not want to be a buyer/seller agent, but your state real estate commission will hold you to the same standards as any other agent if you have a license.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing