Should my team and I get these licenses?

Question

Hello BP. I've come to really appreciate and value the opinions and advice on BP, so I thought I would solicit some responses on an idea I've had lingering for some time.

As of right now, my team consists of myself, my wife and my brother. We have done a few fix and flips and are trying to increase our marketing efforts and do more wholesale deals while also having better options on Fix n Flips and BRRRR when we want them. We have split the team up into the 3 phases, Acquisition, Project Management, Sales. I'm generally on the Acquisitions side while also managing the marketing (but also assist in all phases). From there my brother will go view any property we have a lead on, evaluate repairs, etc. If we decide to take the property as a flip or BRRRR, he also oversees the project, but I also help where I can. He has more time than I do. Whether we decide to wholesale the property or fix it ourselves, my wife then takes over to market the property to end homeowners (for ones that are fixed) or to our buyers list for wholesales.

My idea and question is this. My background is in Accounting/Auditing. I'm currently working a full time job as an Auditor. I have the required education and experience to be eligible for my CPA license. I just need to take the tests. This is why I have become the numbers/capital guy of the team. For credibility (and to achieve a personal goal), would getting my CPA license be of benefit to the team and help grow the business?

My brother has many years of construction experience in many different trades. Would getting his Contractor's license, even just the small one (in Utah its called a R101 I think), be beneficial to the team?

My wife has a background of customer service and telephone sales. She has become quite savy using the online tools such as zillow and the like. She is currently a stay at home Mom unless we have a house to sale (which hasn't been much in the past 6 months). She is willing to get her RE license to get MLS access, to save on commission, and is also interested in maybe doing RE separate from the duties our business requires until we can turn it into a full time position in our business. So should she get her RE license? (PS we have a broker willing to put her on for basically no fee, if she just wants to do RE for our business).

I'm thinking this would be somewhat of a dream team. Having a CPA, Contractor, and RE Agent making up our team. When talking to Private Investors, motivated sellers and other professionals, I feel having these licenses will give us an edge. Or, am I just getting caught up in this in my head?

I believe me getting my CPA license will be the biggest time commitment as there are 4 exams that are recommended you do about 120 worth of studying for each part. I project I could get it done by end of 2020 if I really commit.

Contractor license and RE license should only take 4 to 6 months. Plus, they have more time than I do.

So BP, is this Dream Team idea just a fantasy, or do you think it will provide an edge in building a strong network around us? Or will these licenses give us to much exposure to liabilities?

PS - I don't plan on using my CPA to consult, advise, audit/attest, or do taxes for anybody except my own business. If that's what I wanted to do in life, I wouldn't have become a RE Investor.

Bob Norton · Answer

@Casey Bishop Get the CPA license if it means something to you personally, otherwise don't waste the time and money, especially if do not plan to use it for generating income. You have the accounting skills that you can use in your business, you do not need the license unless you just want to get it. The contractor license could be helpful, if you plan to operate as your own GC and you need a GC license to pull permits for your projects. The realtor license will be helpful, because you will have easy access to the MLS, easy access to other properties on the market, and you can list your own projects. Also, depending upon how you buy, you can also earn commissions on the properties that you buy.

Jeff Joachim · Answer

@Casey Bishop ...Kudos to you for having an awesome team and great support system! I don't think it is a complete fantasy. I'm based here in FL, and I am a licensed Real Estate Broker in both Florida and Alabama, as well as a Mortgage Loan Orignator. In addition my business partners are a Real Estate attorney, Licensed Title Agent, General Contractor, Hard Money Lender, and Home Inspector. As an investor and wholesaler, we found that we needed reliable folks throughout the entire vertical of real estate investing. For a while we kept trying to refer business to others with mixed effectiveness. Eventually, we found that a lot of our end buyers and other investors, needed reliable deals, contractors, investor friendly title companies, solid realtors, home inspectors, etc. This led us to slowly forming the collective of companies we have now to support our personal investments as well as the needs of our clients. Of the 3 you mentioned, here are the most useful licenses (in order): 1. Real Estate License: having access to the MLS is the best and easiest way to pull comps, and find more deals both for investing and wholesaling. Plus you can earn a commission when acquiring, and save commission on disposition. 2. General Contractor: It is super hard to find a good GC that is consistently reliable. Having someone on your team that can accurately quote rehab numbers, and save you money on projects, while doing quality work is huge. 3. CPA- I'm leaning more towards @Bob Norton on this one. I think this isn't a high priority. We hired a book keeper and a CPA and are very satisfied. I wish you the best in assembling your dream team, sounds like you are off to a great start!