Would getting a Real Estate license make it easier for a Real Estate investor.?

Question

Namely a buy & flip investor?

Answer 1

As long as you follow the rules then it would make it easier, in my opinion. You will have easy access to the MLS, you will be working with other agents who may let you know when they have a great deal on the market etc... Plus, if you are buying from someone who is listed with another agent then you would be able to collect a commission on the property your purchasing for yourself. Just remember the golden rule... DISCLOSE, DISCLOSE, DISCLOSE. If you do that then you should be alright!

Just do not get tangled up on the financing side. If you're going to flip the property then show it as an investment property. When you're in the business and start trying to make everything owner occupied or 2nd home when in fact the property is an investment then you can and will get into some hot water. When you consider that the idea is to acquire, fix and flip the property in the shortest time possible then having a mortgage payment a couple hundred a month higher by doing it right is not a bug deal.

Best of luck to you! There is a ton of money to be made if you do this right.

Kevin

Answer 2

You should look up the requirements for licensing in your state.

I'm in Minnesota, and I know that if you do more than a few real estate transactions per year, they feel you should get a license. Basically anyone who intends to profit from real estate transactions should be licensed. Without a license, you cannot get paid for any transaction but your own.

The feeling is that you will basically be a "real estate professional" if you do more than a couple deals a year. This puts you in the category of the "shark vs. guppy" image that was mentioned so often in my real estate classes. Meaning, you are the shark in every transaction, and by your experience could take advantage of unsuspecting buyers. Which is why anyone listing their own home that has a license MUST disclose they have one. Getting one could protect yourself from someone who felt you took advantage of them, either by buying too low or selling to high, etc...

If this is something you intend to keep doing, you should probably get a license and create an S Corp or LLC, to protect your personal assets. And if you get real good at it, you might find that you have people who will pay you to help them do the same thing, in which case you'll already be licensed.

And at worst, you'll have attended classes and learned a fair amount more about real estate, and also meet dozens of agents you can network with.

Answer 3

No. You are far more legally accountable to the law. The courts are far more lenient when you violate the law when you don't know them, then when you do. I'm not saying you will, but there are so many laws to navigate most investors trip up on them. If it is minor the judge may give you a pass if you didn't know about it. You can't claim that , if you have a real estate license. The judge would think you are trying to game the system.

Answer 4

As you can see there are positives and negatives to being licensed. I would agree with all the previous answers. Investing in real estate comes down to having conversations. Most properties on the MLS are fairly priced. The real deals come through cold calling other owners and asking if they would be willing to sell. You have the best tool already and that is yourself and your time. Start calling.

Answer 5

It may give you an advantage if you join an active brokerage also. This is where a tremendous amount of networking occurs and many properties are discussed far before coming to market. Additionally, some states require a license if you do more than a certain number of transactions per year.

Gordy Ginsberg
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Answer 6

Yes, you get access to a lot of tools that can help find homes at the right prices without paying someone else a fee for doing it

Answer 7

No, in most cases it makes you legally and ethically responsible that non agents aren't.