Applying for Real Estate License

[Luke McCann]

I will be buying and possibly flipping my first investment property this year in the North East Florida area. Need some advice- should I apply for a real estate license? If so, which type of license? I know there are Agents, Brokers, and Sales Associates licenses but I'm not sure which is most beneficial towards buying and selling real estate, or if any are beneficial at all.

[Brady Pevehouse]

Luke,

IMO, I am not for investors spending their funds on a license simply because they are going to buy and sell / flip. At least not in the beginning.  The start-up cost to real estate takes a huge chuck of the savings you are seeking to earn, and from what it sounds like, you will be doing business, wherever the business takes you... so even if you are licensed you may be searching for homes outside of your market any way therefore increasing costs to join multiple boards.

Take the first 2 deals to evaluate what you could have saved and the time invested involved and instead focus on meeting with an experienced agent and make them earn what they are to be paid. 

If you become licensed right away, you are essentially creating competition immediately, while also opening yourself up to liability as a seller, and without any experience, you are creating a much bigger task than it needs / should be.  There are reasons that millionaires, moguls and successful people hire real estate agents, its because they expect those of us who do it for a living to bring a lot to the table and earn our keep and our commissions.

My simple suggestion: Get 2 deals under your belt, focus on flipping and increasing your profit from the property level. Do not get side-tracked trying to save a nickel by getting a license and spending a dollar to do it. After a year or so, maybe re-evaluate and determine if it makes sense, or quite possibly you will have met an agent with experience who not only earns their commission, but advises you through out the flip which will likely prove to be a smart financial move.

Choose an agent whom you are not related to
Choose an agent with at least 10 years experience
Choose an agent who  has experience remodeling or flipping
Choose an agent who answers the phone
Choose an agent that you can talk to (someone who will treat you as a business partner not just a paycheck)

On a side note, it is becoming popular for real estate agents in the Orlando area to compensate non-MLS members (those not a member of the Orlando Regional Association) a fraction of what they compensate members.

Also in Florida, you must be licensed as a real estate associate for 1 year under a licensed broker, before you are allowed to seek a brokers license, which is another course + expense after obtaining your initial license. 

Just because you are not seeking a license immediately doesn't mean you can read a few books, or learn the trade. The agent you choose to assist you in the beginning might be a good source of material as well!