Johnston, IA · Member since 2016 · 8 posts · 2 votes
Hey everyone!
Background:
I'm moving to Wichita KS in June after I graduate (undergrad) and I'm looking to start wholesaling/fix-flip etc once I make it to Wichita.
Questions:
Is there benefit to getting my RE license? Also, should I get a brokers or agent license?
In theory, I want to take the licensing course because I enjoy learning and want that knowledge but is it a requirement for me to get started? Will it save me money if I can process deals through myself?
The next question I have is should I have an LLC before my first deal?
Thanks to everyone for your answers.
Charles
Investor · New York City, NY · Member since 2013 · 263 posts · 141 votes
10y
I believe it will be beneficial if you get a license when you are fixing and flipping in the same city state that you live in. The benefit is you have access to the mls and the tax write off. I do not believe the license alone helps in investing because networking and taking classes at the local REIA may benefit. Just don't do like I did and be too trusting of all of the members in there no matter what their title is.
I started my LLC before my first deal and I think it does make it better because those who buy the house in their own name and then transfer it to the LLC name normally have to pay a lot of money to do so. Check with your accountant and lawyer first of course.
Investor · New York City, NY · Member since 2013 · 263 posts · 141 votes
10y
I believe it will be beneficial if you get a license when you are fixing and flipping in the same city state that you live in. The benefit is you have access to the mls and the tax write off. I do not believe the license alone helps in investing because networking and taking classes at the local REIA may benefit. Just don't do like I did and be too trusting of all of the members in there no matter what their title is.
I started my LLC before my first deal and I think it does make it better because those who buy the house in their own name and then transfer it to the LLC name normally have to pay a lot of money to do so. Check with your accountant and lawyer first of course.
Wichita, KS · Member since 2013 · 39 posts · 10 votes
10y
Hey Charles,
I'm an investor and a Realtor here in Wichita, Ks. I wouldn't recommend taking the real estate licensing course...it is really designed to teach you to pass the test...you do learn a little bit, but it is very minimal. You really start to learn real estate once you get out in the field and start doing deals. Which by the way in Kansas (in almost all cases) you have to be a realtor for 2 years before being able to go for your broker's license.
Is there a benefit for a flipper/wholesaler to have their license??? They'll have access to the mls, and will be able to write their own deals, but most flips and wholesales are not going to come from the mls...some will though...It costs a little over $2000/year just to maintain a real estate license (+ classes you have to take,) and that's not counting lock boxes, signs, marketing, misc... A flip has many moving parts. You're better off hiring a realtor along with contractors, etc...instead of trying to do everything yourself.
Finally you don't need an LLC to do your 1st deal, but if I would suggest getting an LLC if you are going to do multiple flips or be a full time flipper...however you might do 1 or 2 flips and realize Wichita just isn't the best market for flips...it's perfect for buy and hold rentals though.
Johnston, IA · Member since 2016 · 8 posts · 2 votes
10y
Lelith,
Thank you for the starting knowledge I truly appreciate it.
Jimmy,
Thank you for the advice specific to Wichita. I'd love to sit down with you (to pick your brain) once I make it there come June. Beer/Coffee on me.
Appreciate it.
Wichita, KS · Member since 2013 · 39 posts · 10 votes
10y
Charles,
Sounds good to me! When you get here look me up and we can talk all things real estate & Wichita & wealth building...and beer! We have some cool breweries here as well ;) I look forward to meeting you.