I truly want to get into real estate investing for short terms and fix n flips but I’m trying to figure out if it would be best if I retrieved my real estate license first. I’ve been told I don’t need it. Advice please..
You don't need it, and I would not do this unless you want to actively pursue this as a main income stream.
I'm not 100% sure what viewpoint you're coming from with the question but here are a few possible scenarios you may be considering...
1.) you're inexperienced as a party to a real estate transaction, and you want to gain knowledge while also setting yourself up to earn income and save commissions.
2.) you're an experienced investor and have been a party to several deals, and you just want to save commissions, get easy access to properties, all while helping the occasional friend/fellow investor as supplemental income.
I'm guessing you're closer to #1, and your intentions must be abundantly clear... do you just want to avoid commissions, or are you in it to learn and grow in the business? If the former, drop it now because you don't need to be a realtor to avoid commissions. if the latter, get SERIOUS about it and partner up with a training-heavy broker who can get you on a team and provide mentorship in your first few years. happy to chat about it. I know a few short term and fix-n-flip investors who eventually got into the field because the math made sense and it added an additional income stream but only did it after they had some experience through a few deals and never because they needed to.
You don't need it, and I would not do this unless you want to actively pursue this as a main income stream.
I'm not 100% sure what viewpoint you're coming from with the question but here are a few possible scenarios you may be considering...
1.) you're inexperienced as a party to a real estate transaction, and you want to gain knowledge while also setting yourself up to earn income and save commissions.
2.) you're an experienced investor and have been a party to several deals, and you just want to save commissions, get easy access to properties, all while helping the occasional friend/fellow investor as supplemental income.
I'm guessing you're closer to #1, and your intentions must be abundantly clear... do you just want to avoid commissions, or are you in it to learn and grow in the business? If the former, drop it now because you don't need to be a realtor to avoid commissions. if the latter, get SERIOUS about it and partner up with a training-heavy broker who can get you on a team and provide mentorship in your first few years. happy to chat about it. I know a few short term and fix-n-flip investors who eventually got into the field because the math made sense and it added an additional income stream but only did it after they had some experience through a few deals and never because they needed to.
You don't need a license. Deciding to get it depends on whether or not you plan on helping others buy, sell, or invest. If you don't desire to travel that path, find an investor-friendly agent that you vibe with, who understands your tolerance, your vision, etc. Then hire them. Don't overthink it! You can do real estate without a license; says the licensed investor-friendly agent.
As mentioned above you don't need it, but it is good to have in my opinion. You can represent yourself on deals and gain commissions on the buy side and save on the sell. If you plan on making multiple purchases within a short period of time, then it does help to have access to MLS data and network within whatever brokerage you join.
You can represent yourself on deals and gain commissions on the buy side and save on the sell.
But without a license (and I've had it both ways) you can still represent yourself, right? Just find the property and present the offer for 3% less, letting the seller know that you expect the savings because you are not using a Realtor. Same money to them, they're getting the same net. OR - you can use that 3% as an enticement and leave it in the deal...
On the sell side, just list the property and be clear that you're only paying X (2%, 2.5%) to an agent that brings you a qualified buyer.
@Christian Francois, to give you a cost breakdown on how much it is to obtain a license and hang it with a brokerage; ~$300 for the real estate course, ~$200 for State and National Exam, ~$150 for the Real Estate Commission to activate your license, ~$500 annually for NAR membership, $X per month MLS fee, $X per month in broker fees, commission split with the brokerage (80/20, 70/30, 60/40), etc. As you can see, if you're not buying/selling multiple deals a year, it is not worth the time, energy, and money to get licensed. As others have mentioned, if you're interested in acquiring deals, work with an investor-focused real estate agent. Hope this helps!
@Christian Francois, congrats on deciding to step out into investing! Getting your license isn't necessary, but it can help. At some point you will most likely need an investor friendly agent on your team. If you don't mind collaborating with one, then there is no need. A majority of agents claim they are investor friendly (no one is going to turn away investor business), but many lack the ability to analyze deals from the vantage point of an investor. As someone that started in this business broke and without any connections I used my career as a Realtor to get started in investing. I was able to use the income and connections as a Realtor to become a wholesaler, open a real estate brokerage, and of course become an investor myself. We have been able to carve out a nice niche here in Orlando, FL of operating a real estate and title company owned by real estate investors with the purpose of helping other investors. The experience of working on a couple thousand investment deals with clients has proven valuable. We have been able to get key insights on different investment strategies, different areas investors are buying in, learn from other investor successes, see which lenders are reliable, get referrals for contractors, create a vast network of investor friendly vendors and resources.
If you cannot find a broker with a proven track record and expertise working with investors, then I'd recommend becoming self-taught, or working for a commercial brokerage. There really is no wrong path, just a matter of your preference.
No just like everyone else said you don't need a license to start real estate investing. All you really have to do is research about the market and figure out what your goals are whether it's flipping or renting. I would love to help you out. If you are open to it.
Depends on the circumstances of your investments but I think it's generally easier not to have it. You are held to a higher standard as an agent and can be brought before the board for unethical behavior. If you are primarily buying houses off MLS, you can get a discount by representing yourself but if you're not buying listed houses, I believe it's generally easier not to have a license. I have a license, and I can definitely say there's nothing in the course which will help you be a better investor. The licensing courses are simply not set up that way. You should try to get some kind of education from a local investor or flipper is you can, Youtube and TikTok will not provide you with any real knowledge, especially local knowledge.