House flipping typically involves purchasing a property in need of TLC, renovating it, and reselling it for a profit. There are a lot of moving parts in the flipping process so it can be pretty risky if you don’t know what you’re doing.
Licensed real estate agents or brokers gain valuable knowledge, through training, experience, and knowing the right people that can help mitigate the risk and increase profits while flipping property.
You may be wondering if you need a real estate license to invest in real estate and flip your properties. Technically, anyone can sell their own property without a license, but having one can be very helpful.
Here are some ways that having a real estate license can help you in your house flipping endeavors:
1. Industry Knowledge
Typically, real estate training programs include plenty of information about property ownership, government regulations, property valuation, financing options, contracts, and the real estate process. Real estate students will learn about many issues that may come up, at any stage, in flipping property, and understand how to go about solving them.
2. Knowledge of the Market
Investors need to understand what’s happening in the market if they hope to build wealth through real estate investments. Is this a good time to purchase? A good time to sell? Having a grasp on what the market is doing and where it may be headed can mean the difference between turning a profit and losing your shirt.
3. Savings on Commission
As a real estate agent, you may be able to avoid paying commission on at least one side of the transaction, or you might be paid a commission yourself, depending on your agreement with your brokerage. Either way, you won’t need to hire a real estate agent to help you with your sale.
4. Access to more buyers
When property owners list their homes without a real estate professional, potential buyers might be less likely to see the listing. Only licensed agents can access Realtor.com, the most common MLS site. Additionally, real estate agents and brokerages often have comprehensive marketing approaches to help advertise their listings.
5. Knowledge of Local Communities
Real estate agents often have their fingers on the pulse of their neighborhoods. Since they tend to know a lot of people in the community and have more contacts in the industry, they might hear about potential investment property before it goes up for sale.
Real estate agents typically have a wide and varied network including all sorts of professionals such as other investors, mortgage agents, contractors, inspectors, township officials, skilled tradespeople, home stagers, lawyers, and more. This could be a huge advantage when it comes to completing a large renovation project and securing the financing to do it.
7. Flexible Schedule
Of course, as a real estate agent, you need to take care of your clients within their availability, but usually, you choose your working hours and set your appointments to fit your needs. This means a real estate career can offer the flexibility to work on your flipping projects, or at least visit the job site as needed.
8. Higher Sale Price
According to the National Association of Realtors (NAR), eight percent of 2020 home sales, in the United States, were For Sale by Owner (FSBO). They also found a typical FSBO sale price to be $217,900 while those sold by realtors were $295,000.
Since FSBO sales take longer to sell and tend to fetch significantly lower prices, licensed real estate agents could benefit from increased profits when flipping properties.
Earn Your Real Estate License with KW Real Estate Schools
If you think a real estate license might be helpful for house flipping, we’ve got options to suit your unique learning style.
Do you like a lively, in-class environment? With Group Study, you can interact with your peers while learning from a top-producing agent instructor?
Are you an independent learner? With our self-paced, online Fast-Track program, you can work around your schedule and be earning as a real estate agent in as little as 100 days. Our 1-Day Prep class will help you prepare for the state licensing exam and we also offer tutoring support.