What Kind of NYS Real Estate License Do I Apply For?

[Shanz Lockett]

I am an Attorney in NY State and I am interested in starting a company to flip houses.  I see that there are several different options for the type of license that I can apply for; individual, limited liability company, Associate Broker, etc.  

I am not sure at this time if I would want to change careers and work as an agent full time. Right now I would like access to the MLS and the ability to start looking for properties. My company is not named/ no papers have been filed at this point. I intend to have a company name/ papers done by the time I actually do a deal but want the license sooner than that.

What kind of license should I apply for in the meantime/ should I wait until I have those papers for the company in place?  What is the best option for a scenario where I do want to be an agent full time for a company (like Keller Williams for example) and what are the best options for a scenario where I do not what to be an agent full time?

Any help would be greatly appreciated!  Thank you in advance!

[BB Liu]

Hi Shanitra, I am also an attorney in New York State, and I am in the process of selling my first flip. I am employed full-time as an attorney, and did the flip on the side.

I am confused by your questions, because you seem to be mixing two totally separate things: whether you need a professional license related to real estate; and what kind of entity you want to set up for your house flipping business. 

To be clear, you don't need any kind of professional license whatsoever to create an entity. Any person can do that. The most common entity for house flipping, by far, is an LLC.

Regarding access to MLS, that is where you might need a professional real estate license. If you get a license to be a broker, you don't need to answer to anyone else, but then you need to pay for your own MLS access (plus you may have other concerns such as needing to get insurance etc.). If you get a license to be an agent, then you need a broker to hire you, and you need to answer to this broker. But, the broker will get you MLS access. You may also want to explore other, less orthodox methods, such as getting hired as an assistant to someone who has MLS access.

I think you should probably read up on things before you take any action. I don’t recommend getting bogged down in the research, but I think it’s important that you are at least clear about basic concepts such as entities versus licenses.

Good luck!