Flipping properties worth becoming a licensed agent?

Question

Lien Vuong · Answer

It looks like an obvious saving in the front end of listing your own properties but unless you're seasoned agent who is well trained to analyze properties and valuate them, it might not be worth it for the handful (if those) that you will be transacting. I echo with my peers on this with the fact that you'll put yourself up for some liability of not complete disclosure, the start up cost and split cost of the listings, as well as time spent in running this deal - wouldn't your Highest and Best Use be out there finding the best deals and managing the project?

Its really important for the long term goal of your business if you're looking to be in RE for the long haul to align yourself with an investor centric real estate agent who will make you more than the 5-6% listing fees for your properties.

Good luck!

Stefanie Willie-Bonglo · Answer

Hi @Timothy Joseph ORegan

I am licensed in NH and if you're not making a living from it, the costs do tend to add up. When you sign on with a broker there are certain requirements to become a part of realtor boards, MLS dues etc. Another point I bring up is that when you put your listing on the market, you want it syndicated and marketed to as many people as possible. Agents like myself invest in marketing systems such as email programs, hiring telemarketers, lead in signs, the list goes on. It's worth it for me because I do so much business, but wouldn't be worth it for someone only doing a few transactions per year. Either way, I will send you info on our investor meet up group, we meet in Haverhill MA which is right on the border, good luck!

Jabari Long · Answer

@Timothy Joseph ORegan I ONLY became licensed to add to the bottom line of my investment deals.  I definitley suggest you get it.  There will be Investor/Broker like myself in your market who will let you hang your license with favorable fees and commission splits.

Peter Philando · Answer

I'm in Florida and currently in the process of getting my license for the same reason. I know it will cost but I want to have access to MLS and be able to see property as soon as and whenever I want. I also want to be able to submit offers without worry about whether or not an agent believe the offer wont/will be accepted. The bonus is the commission savings and hopefully be able to work with an investor broker. That's the plan anyways.

Russell Brazil · Answer

When I sell my own properties now, I do so through a colleague instead of through my own license. Liability is too high for me to risk my license on my own transactions.

Christopher Phillips · Answer

@Timothy Joseph ORegan

Getting a license isn't worth it if you aren't going to sell property for other people. Yes, many investors get a license. Many Agents flip homes and also do buy and hold. Some even get into commercial property.

To get your license will vary somewhat for each state, but essentially, you'll have the cost to get the training, to take the test, and the register your license. You'll have to hang your license with a broker in order to use it. They'll charge you monthly tech fees while you're there. You'll have to pay annual fees of around $600-$800 per year to the local board of realtors. You'll have to may them for monthly access to the MLS. And you'll have to pay for continuing education every year. And, you'll still have to split your commissions with the office.

You don't need a license to buy property and you don't need a license to sell your own property. You only need it if you plan to sell other people's property. It's only worth getting a license if you plan to do enough volume in transactions to make up for the costs.