Should I get my real estate license for flipping?

Orlando, FL · Member since 2019 · 25 posts · 10 votes

I live in Orlando Fl, and currently building my team to start flipping houses. I currently have a full time job but I would eventually like to do real estate investing full time.

Now I have a general contractor and possible investors. I need to find a good broker to work with.

My question is should I get my real estate license to find my own ideals and save on some costs associated with paying an agent? Or should I just find a good agent?

I want to find my team and finances before I go looking for my first deal.

I was also thinking of sending some direct mail or cold calling.

Thanks!

Terri

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J ScottPro Member

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Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes

Originally posted by @Monte Blackwell:

Read the entire post my friend. By the looks of your photo, I've been doing this longer than you've been alive. CLEARLY, I'm must be doing something right. If you carry a license just so you can get comps, then YES, you are clearly doing something really wrong. Hang in there little buddy, experience will fatten your bank account.

Thanks for setting me straight. I'm not sure what I was thinking by pretending I knew anything about flipping houses.

How embarrassing!!!

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Bob Okenwa
Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
7y
I'd get the license. Time is money when it comes to flipping and if you can source your own deals, go for it. The more important aspect of having your license and flipping is the 3% you're saving by not having to pay an agent to list the home for you.
Ultimately, real estate isn't rocket science, but fortune favors the prepared mind. Be sure to study seriously and understand everything it takes to buy and sell a home for prices that fit your needs. Best of luck.
5 Reply
Terri Hollinsworth
OP
Orlando, FL · Member since 2019 · 25 posts · 10 votes
7y
Thank you Bob! I appreciate your advice.
1 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
personally I cant see doing the flipping business without your own license.. many times the 3% you save could be the difference from profit or loss.. plus you make commish buying if its a listed property.
you don't have to call anyone to go look at something you write contracts when you want to write them not when some agent has time etc etc..
now again if your flipping one home a year maybe not but if your going to do any volume like 1 mil plus then for sure is my mind
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Terri Hollinsworth
OP
Orlando, FL · Member since 2019 · 25 posts · 10 votes
7y
Hey Jay,
Do you think it’s a good idea for a first time flipper? Also, thanks for your advice!
1 Reply
Stephen Akindona
Investor · Memphis, TN · Member since 2013 · 741 posts · 845 votes
7y
@Terri Hollinsworth I don't think it is necessary for your first deal! What if you flip a house and decide you HATE doing that. It make sense if in fact you decide to make a legitimate go of it. I would say just do your first flip and then evaluate after you complete it!
5 Reply
Kevin Lim
New York, NY · Member since 2019 · 14 posts · 4 votes
7y
Great advice from above. What options does a licensee have in finding a sponsored broker? Are any of the online brokerage firms such as VORO in NYC reputable and dependable?
1 Reply
J ScottPro Member
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Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
7y
Start with this:
https://www.biggerpockets.com/blog/2010/02/24/shou...
Generally speaking, I like the idea of having your real estate license, assuming you don't plan to just wholesale (in which case it could be more of a hindrance than a help).
In Florida, expect that you'll pay about $300 and a few weeks to get the license (the pre-license course is online and claims to be 60 hours, so adjust the timing based on how many hours/week you can spend -- though in reality, you may be able to complete it in less time).
Then, you'll spend about $1000/month in fees for the first year (and each year thereafter) to join the local and national real estate associations and get MLS access. And then you'll pay about $100/month (at minimum) to associate with a broker.
So, once you're licensed, expect to spend about $2000-2500 per year to keep your license, plus some on-going education time (all online). If you're doing at least one $100,000 deal per year, you should expect to cover your costs just in commissions saved/earned, though there are other (more important, in my opinion) benefits as well.
If you want any recommendations on brokers in Florida, let me know...
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Terri Hollinsworth
OP
Orlando, FL · Member since 2019 · 25 posts · 10 votes
7y
Thanks Stephen! Thats actually a good point. Get my feet wet first!
2 Reply
Terri Hollinsworth
OP
Orlando, FL · Member since 2019 · 25 posts · 10 votes
7y
@J Scott So when you say 1,000/month in fees to join local and national real estate associations, is that for networking purposes? Did you mean to say 1,000 per year?
I read that article. Thanks!
It seems like yes, getting your license would save you money on fees if I plan on doing $100,000 deal per year. However, I am kind of concerned with starting off. If I become a real estate agent for the sole purpose of having access to MLS and doing my own sales, is it sort of a job in itself? On top of the flips? It seems like becoming a real estate agent will be something I need to give it my all and immerse myself in it 100%. Is that correct? Would it be wise to maybe get my license after I have a few flips under my belt? I plan on keeping my job until I have a sufficient amount of money in my bank account from real estate. What do you think?
Yes! I would love some recommendations on brokers in Florida. Specifically in Central Florida. How does one network with brokers? As a beginner? Do you have to build a good reputation? Adding to that, if i don't have my real estate license do I need to even worry about finding one?
Best,
Terri.
1 Reply
J ScottPro Member
Moderator
Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
7y
Originally posted by @Terri Hollinsworth:

@J Scott So when you say 1,000/month in fees to join local and national real estate associations, is that for networking purposes? Did you mean to say 1,000 per year?
I read that article. Thanks!
It seems like yes, getting your license would save you money on fees if I plan on doing $100,000 deal per year. However, I am kind of concerned with starting off. If I become a real estate agent for the sole purpose of having access to MLS and doing my own sales, is it sort of a job in itself? On top of the flips? It seems like becoming a real estate agent will be something I need to give it my all and immerse myself in it 100%. Is that correct? Would it be wise to maybe get my license after I have a few flips under my belt? I plan on keeping my job until I have a sufficient amount of money in my bank account from real estate. What do you think?
Yes! I would love some recommendations on brokers in Florida. Specifically in Central Florida. How does one network with brokers? As a beginner? Do you have to build a good reputation? Adding to that, if i don't have my real estate license do I need to even worry about finding one?
Best,
Terri.
WHOOPS!!! Sorry, yes, I updated the post. I meant $1000/year in fees, not $1000/month.
It's definitely a couple weeks of effort to get your license. The course takes about 40-60 hours to complete if you're starting from scratch. My wife recently got her brokers license in Florida and I have my agent license -- we both spent about 25 hours on the course, but we were able to get through it quickly because we've done it in other states.
As for whether to get it before your first deal or after you have a couple under your belt, that's really dependent on your goals. If it's for the money, there's no rush -- get a few deals under your belt first. But, if it's to get you access to the MLS to find properties and do comp analysis, then it might be worth it to get it first. There's no right answer to the question -- it will depend on your situation, your goals and the time commitment you have.
As for Florida brokers, I'll send you a PM (I don't like to put it in a post, as things can change and I don't want someone reading about a referral 5 years from now that I no longer recommend. I've had that happen with contractors... :)
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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
7y
Definitely get your license. As an example, my most recent purchase was MLS listed. I brought myself as the buyer and saved about 4K on the purchase of the property. I just had a listing close that paid me about $3500. These savings/income are just from two deals. Imagine doing lots more as a flipper.
1 Reply
Grace P.
Investor · Rapid City, SD · Member since 2018 · 47 posts · 5 votes
7y
I have thought about this as well but we only do about 1-2 properties per year at this point and we list them with a flat fee agent for $185 listing fee and offer 2.5% buyer's agent fee. So for us it just doesn't seem worth it to get licensed right now.
1 Reply
Rose Reid
Real Estate Agent · Orlando · Member since 2019 · 2 posts · 3 votes
7y
The market is very aggressive in Orlando. If you plan to rehab multiple properties a year, get the license and have access to the MLS. Time is money and you can't always rely on an agent to run comps for you (in a quick manner) to get the ARV on a deal. I have rehabbed multiple properties prior to being licensed in the Orlando area. So yes, it can be done.
2 Reply
Terri Hollinsworth
OP
Orlando, FL · Member since 2019 · 25 posts · 10 votes
7y
@Rose Reid thank you so much! It’s great to hear advice from someone in my area! I really need to sink my teeth into learning more about the Orlando Market. Do you use investors, loans, hard money or mortgages to fund your flips? Or do you just pay with your own money?
0 Reply
Monte Blackwell
Rental Property Investor · Mcallen, TX · Member since 2013 · 37 posts · 12 votes
7y
I had my license for 9 years and sent it back to the state. I'm going against the grain here but I would offer the contrary for advise. I do just fine without it and I don't have to worry about all the fees, CEU's, mls dues etc.... I can do everything a realtor can do and more (As an investor). You can flat fee your listing and get your deals on the mls and save the same 3% that everyone has mentioned. You have all the tools you need to get the deals. Showing properties as a realtor will side track you and CONSUME YOU!!!!!! Your time could be better spent working on your own deals. BTW, if you happen to get in good with a realtor or broker they can help a little. Most of all of my deals were scooped up before the Real Estate community ever saw them. Furthermore, a lot of deals you will pass up and you will wind up giving them to your favorite realtor or broker and that goes a long way. I could go on and on but I couldn't imagine, myself being bogged down with a license.
I agree with Stephen Akindona that you should do your first deal and then once you get your feet wet you can make a better decision. BTW, by the time you take your RE classes, study for your license and take the test you could have already made 5k-25k. Just saying.
Hope this helps. My experience, My opinion!
1 Reply
J ScottPro Member
Moderator
Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
7y
Originally posted by @Monte Blackwell:

I can do everything a realtor can do and more (As an investor).
Where are you getting your data for CMAs and ARVs?
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Rose Reid
Real Estate Agent · Orlando · Member since 2019 · 2 posts · 3 votes
7y
@Terri Hollinsworth Initially hard money & mortgages. Now I pay cash. If the margins are too slim for resale, I have a pool of investors that I pass along to that specifically only buy to hold.
1 Reply
Syed H.
Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
7y
Honestly, it's useful but you don't need it. Saving the 3-4% is nice on certain projects but very shortsighted on other projects. On cheap starter homes, you can sell it yourself and save the comission. On some of the luxury homes I have sold, it is not worth it. There are brokers that do 90% of the sales in my areas for a reason. They have a ton of buyers & they always deliver

Also it is good to build a relationship with the brokers in the neighborhood. I got a lot of deals from brokers in my area. My main agent brings me lucrative deals all the time. She knows not only will she make 5-6% from the seller, but when i flip the property i will give it right back to her for another 4%. Even on sheriff sales i buy, i still give it to one of my agents usually. Saving 3% isnt a huge deal when these brokers are making me a ton of money.
1 Reply
Monte Blackwell
Rental Property Investor · Mcallen, TX · Member since 2013 · 37 posts · 12 votes
7y
Simply Unnecessary. Realtors rely on those and they need them, we don't. Seasoned investors just know the market. It's quite simple. Know your market and the price P/Sq/ft is the holy grail. Also, you don't have to have a license to get CMAs if you needed some. I surely wouldn't tell someone to go and spend all that time and money to get license in case some day you might need some comps. Furthermore, a broker friend could easily put you on as a staffer and you can access the mls just the same.
2 Reply
J ScottPro Member
Moderator
Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
7y
Originally posted by @Monte Blackwell:
Simply Unnecessary. Realtors rely on those and they need them, we don't.
Investors don't rely on CMAs or ARVs?
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J ScottPro Member
Moderator
Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
7y
Originally posted by @Syed H.:

Honestly, it's useful but you don't need it.
....
But you do need mls access, you will be pulling comps all the time.
In many states, the only way to legally get access to the MLS is to be a licensed agent, broker or appraiser.
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1 Reply
Monte Blackwell
Rental Property Investor · Mcallen, TX · Member since 2013 · 37 posts · 12 votes
7y
Read the entire post my friend. By the looks of your photo, I've been doing this longer than you've been alive. CLEARLY, I'm must be doing something right. If you carry a license just so you can get comps, then YES, you are clearly doing something really wrong. Hang in there little buddy, experience will fatten your bank account.
1 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Grace P.:

I have thought about this as well but we only do about 1-2 properties per year at this point and we list them with a flat fee agent for $185 listing fee and offer 2.5% buyer's agent fee. So for us it just doesn't seem worth it to get licensed right now.
flat fee brokers like we are blessed with on the left coast don't exist in many markets.. but if they do that's a good way to go you do your own open houses and marketing use them just to get on MLS
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Syed H.
Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
7y
Originally posted by @J Scott:

Originally posted by @Syed H.:
Honestly, it's useful but you don't need it.
....
But you do need mls access, you will be pulling comps all the time.
In many states, the only way to legally get access to the MLS is to be a licensed agent, broker or appraiser.
Legally? It's not illegal to have MLS access if you aren't an agent. It might be against the MLS's rules, but not illegal.
3 Reply
J ScottPro Member
Moderator
Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
7y
Originally posted by @Syed H.:
Originally posted by @J Scott:

Originally posted by @Syed H.:
Honestly, it's useful but you don't need it.
....
But you do need mls access, you will be pulling comps all the time.
In many states, the only way to legally get access to the MLS is to be a licensed agent, broker or appraiser.
Legally? It's not illegal to have MLS access if you aren't an agent. It might be against the MLS's rules, but not illegal.
Yes, I'm sorry... I misspoke. Thank you for the correction.
But, it sounds as if we're in agreement that your assertion that you need MLS access but you don't need your license makes no sense in many states.
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