Question for flippers with out a RE license

3 Replies

Why don't you have one? lol 

I'm about to get started flipping when I move back to Chicago and I couldn't imagine losing 5-6% on every house I flip.
Is there something I'm missing? 

It depends on what you're good at, and how much you want to specialize.

A great flipper could have lots of off-market leads coming in, which would save the fees but keep the deals.

A specialist flipper might not want to handle the load of paperwork that comes with closing on and selling houses. I really hate that part of the process myself, and that's one of the reasons I haven't got my license (though I am still considering it.)

Also, if a flipper's specialty is finding, analyzing and negotiating deals, maybe he can get a better ROI on his time only doing those things, instead of doing showings and paperwork and coordinating with the title company and lender and all that sort of thing that's involved on the agent's side.

You could make the same argument for "why isn't every flipper his own GC? He'd save so much!" but that doesn't account for him getting really good at an aspect of the business, and getting others who are really great at their parts of it to help out.

Not a bad idea having your license as a flipper though!!! I'm only playing devil's advocate here. It really depends on how you think your time is best spent, and what you're good at.

@Anthony Brancato I’m still new at this but I used to have my agents license but I let it expire before I thought about flipping. I don’t regret it tho. Most of the deals that I hope to do are from leads and driving around. The mls gets picked over pretty fast and with lots of competition. I don’t like bidding wars and in my city that happens too often.

I can see both sides.

For me, the advantages outweigh the costs.

Cost is about 2000 a year for me.

I cover that helping a friend here and there make a purchase.

At this point in the re cycle, most deals are non MLS but that will swing back when things turn down.

Disclosures are no big deal. Its just a few words and agent involved deals are super common so no one is wary.

Paperwork is all digital now, easy to complete and keep organized. 

There are many 100% payout brokers. So fee sharing is reasonable. 

Advantages for me are depth of info available. Yes, I can cobble together most MLS listings and property info from public records, Zillow, etc but with agent access more is available in one place.

For me, the kicker is scheduling my own showings. The convenience of being able to pop in and view a house I just drove past is worth much more than any costs. I would do it just for that.