why not be licensed if u want to flip houses in realestate and can someone explain to me about the code of...?

Question

first off this is for the state of nevada. why shouldnt i be a licensed agent if i want to flip houses. i thought you had to be. also do u have to have a bussiness license or contractor license. if so what kind and please explain everything you know. also can someone explain the "code of ethics" to me? THANKS VERY MUCH!!!

Answer 1

First off, you only need a real estate license if your going to represent someone else in a real estate transaction.

I used to flip without a license but found that I had access to more information with my license. When the home I'm buying is listed, I've been able to either get the commission on the purchase price or use it as leverage to decrease the purchase price. To me this is a definite advantage.

When buying a FSBO, the main thing you have to remember is to disclose that you have your license and intend to fix the home and sell it at a higher price. Disclosure is the most important difference.

You can still use different contracts if a lawyer prepared them or has reviewed them for you.

As for the Code of Ethics, think of them as things everyone should be doing anyways. They stop people from lying, cheating and stealing.

The biggest advantage with having your license though is definitely being able to get some of the commission when buying. Why would you want to give it to anyone else?

Answer 2

There is no license required by and sell houses. Where you required to have a realtors license in order to buy your house? Now, that being said, there are pro's and cons of being a licensed realtor if you intend to flip houses. You get some insider info from the MLS, and from being a part of the National Assoc of Realtors. Second, you don't have to pay your realtor a commission - since you are representing yourself. The cons are that you are held more legally responsible since you are the realtor representing the buyer (and seller when you decide to sell).

My view is this: actors don't learn how to be CPA's just because they make a lot of money. They learn enough to know when they are being ripped off, then they hire a CPA. They can make more money doing what they do - acting, then they could if they split their time as their own CPA.

Answer 3

As jpr30200 stated a realtor would be needed to buy and sell for you. Choose a reputable bank for your mortgage if you are not paying cash for the property. Go in with a budget in hand and stick to your budget. If you are handy do most of the work yourself so that most of your investment is sweat equity, since you will spend your most cost on the labor. For all of the work that you cannot do call in a licensed contractor that is qualified to do the work you cannot do, and get an estimate of cost and go with the best estimate. Stick to your budget and try not to go over it. Once the work is finished have the property appraised. Then you can determine how much equity has gone into the property since you purchased it, and it will also tell you how far the value of the house has increased. Then you can place it on the market with the help of a realtor for the appraised value.

Answer 4

Code of ethics = don't screw people over or be deceitful when you sell the home.

It's actually easier to be unlicensed...just act as an "investor", buy, sell, repeat. If you are licensed then you have to get through more scrutiny with the underwriting department at your lender. It's easier for "anyone" to buy a home than it is for a broker to buy one, since your business practice is so closely related to what you are trying to do...lenders see this as a conflict of interest. Plus if you are licensed, then you are responsible. If you just buy and sell, you don't carry that burden of legal responsibility.

Answer 5

You do not need a license to buy and sell houses in any state. If you are flipping house and you have a real estate license you have to disclose to your seller that you are purchasing the property as an investement property and could sell it at a higher price later. (Pretty dumb if you ask me no one buys a house to sell it at a lower price, but that is the mentality of the bureeaucrats that license Real estate agents and brokers.)

I have been in the flipping and selling business for awhile. At one time I had a license, but got rid of it when the Califronia Department of Real Estate thought it was their business to get into my personal affairs, so I turned the damn license in, therefore they could not inquire about any subsequent real estate transaction I had.

In my opinion it is better not to have a license, there are lots of restrictions and disclosures required as with any other government agencies.

You can work with real estate agents in acquiring properties, but I would not allow one to sell a property for me, they are restricted as to what they will or will not do. It takes them awhile for them to get things done as they are still trying to list other homes and sell the listings they have. On average it takes a real estate agent approximately 1-3 months to sell a house unless it is a hot market, but then in a hot market anyone can sell a house. The savings on your commission that you would have to pay can go toward your next property.

Immediately after I have a written acceptance of my deal from the sellers, I put up a fore sale sign.

When I am prepared to sell a property I advertise in the local paper what is it that I am selling, open house will be on a certain day, first come first served, bring your check book. If I have not laid carpet I advertise carpet of your choice before closing, if they make the deal that day I might through in drapes to match.

Sometimes if they are a little short I will offer to pay all closing cost. I take the application for a loan and turn it over to my buddy the loan agent. He completes it and get them a loan.

You have to check with the local city and county officials to see if you need a license to sell and flip properties in their cities, but if you call and inquire, we all know what the answer will be to our question.

You are not required tgo have a contractor's license though you might contact a few and get to know them, because in some cases you will need them especially for large electrical changes as well a roofer contractor.

No for the mondane things that you will have to do around the house you purchase like painting, carpet replacement, lawn service or other things that do not require a permit from the city or county, I normally get handy men to do the job, they are good at what they do. You will eventually acquire a list of handymen and know their capablities and those that you can depend on. You can find handy men hanging out at home depot as well as lowes.

Remember what your parents taught you about doing good to others and not taking advantage of others. My code goes something like this. "Would I do this to my grandmother or mother?" If I answer is no I don't do the deal and try my hardest to assist the homeowner in what ever they want to do with their property.

I had a client that was in foreclosure and wanted to catch up on her mortgage. Her husband had died a year or two before, she and he had stayed in the house for over 30 years. She had no other place to go. I asked myself my morals question. The answer came out is that I would not do this to my grandmother.

I told her that I was required by law to contact a member of her family in order to get her a loan. Since she had little or no income the rate I could have gotten her would have been extremely high.

Well she gave me her granddaughter's number. I called and asked if she knew her grandmother was in foreclosure and was about to lose her house. She immediately said no. I explained to her the only way I could get a loan for her grandmother and that I was willing to met her at her grandmother to explain it to her in detail. She kept telling me that her grandmother should not be in forecosure because she had enough money to pay the mortgage each month.

Well I met her at her grandmother's homes. We went over the fact that she was in fact in foreclosure. Her grandmother said she had been doing what she had been doing for years and that was putting the bills in a glass container for her husband to mail them. We went to the glass container and found the envelopes there for 8 months of bills. Come to find out her grandmother had althiemers (Not spelled correctly). I could have gotten her a loan and nothing would have been said throughout the entire process, because no one would have known and eventually she would have lost her home.

You are your code of ethnics, not what is written on some piece of paper.

Since you will be doing this for a living you should keep ever third house. This will give you the minimum of 12 house per year for rental income as well as tax deduction items, because if you are selling 2 houses per month you are gonna need a few tax write offs. Doing it this method you will have cash plus a write off.

Check with your cpa or tax advisor for tax advice.

You might also want to purchase one of the TV guru's program they have some excellent forms as well as scripts for you to use when you have a client.

There are also some excellent books about flipping and foreclosure for you to read that you can purchase at your favorite book store or check them out at the library.

I hope this has been of some help to you, good luck.

"FIGHT ON"