Are RE license fees necessary? Is MLS access worth all the fees?

[Steve Edwards]

I am interested in flipping homes, and am considering getting my rel estate license. However, a friend mentioned that the costs are quite high. She mentioned Error and Omissions fees, Broker fees and MLS listing fees. This sounds very expensive. Are all these fees necessary?

Also, if I need to be sponsored by a broker, what should I look for in a broker? Generally speaking, would a broker be willing to take me on even if I'm not selling properties?

Is MLS access beneficial for a wannabe flipper? Seems like lots of people send out letters instead.

Thanks for any guidance you can offer!

[Michael Lam]

Hi @Steve Edwards

Its relative how you decide to allocate your time.  Are you the one spending time looking for deals or will you enlist help from a team of agents?  Granted getting a realtor license will save on commissions both buying and selling,  the key question could you find a real estate team worth those commissions paid? 

I personally enlist the help of agents to find me these deals.  By them helping find these deals, public or private, them handling the transactions is worth the commission paid.  Its also scalable in finding deals.  Remember your one person.  But if you work with several agents that knows your criteria, you can work out deals regarding commission payments.  

In terms of getting direct MLS, you can work with a realtor that will give you direct access. If you build a relationship (your not a one time flipper but if you plan to be doing this as a business, then its worth building such relationship), the realtor may not have problem sharing access with you.

To me as a flipper one of the key essentials is building the team around you.  But I also understand the lure of saving money and keeping a strong cushion on your profits.

In terms of fees,  that won't be a problem if you do this as a business.  But if your doing just one flip a year type deal, then that will eat into your profits.