Is Getting a GC License Worth It for a New Flipper?

Question

I’m a young, new house flipper, and I’m considering getting my General Contractor (GC) license. I enjoy doing the labor and working on flips myself, so being able to take on more responsibility during projects really appeals to me. I can get my GC license fairly quickly and without too much hassle from prior experience. However, I’m wondering if it’s worth the time and effort, especially at this stage of my career. Would having the license help me save money or gain more control over my projects? I’d love to hear any advice or personal experiences from others who have been in a similar position. Thanks in advance for your input!

Zachary Deal · Answer

One thing to keep in mind is typically a lender will not be able to reimburse you for labor you complete yourself on a flip. However, as Erik mentioned, having a GC license definitely helps with the approval process on hard money loans and can get you more competitive terms as well!

Mija Aguilera · Answer

@Dylan Jeluso Brother, I have both a GC and a Real Estate license, and if someone had advised me earlier, I would have focused on building deals and relationships first. Remember, deals come from people, not licenses. Every license comes with its own responsibilities, fees, and obligations—like insurance, NAR dues, and other costs—so it’s important to think carefully about your goals before jumping in.

I have to respectfully disagree with Erik. You can achieve so much more by collaborating with people who have more knowledge and experience than you. They can help you save time and fast-track your learning, rather than starting everything from scratch.

Evan Polaski · Answer

@Dylan Jeluso, where are you feeling you don't have control?  If it is working with subs, a GC license won't help that in any practical way.

At the end of the day, it depends on what you are looking to achieve.  I have had both my GC license and real estate license, and have let both lapse.  Like Mija noted, they cost real money and time to maintain, and I simply was not deriving enough value from either.

I had no intention of GC-ing jobs for clients, which is about all it would have allowed me to do that I can't do already.  And the agent license was same, I didn't want to represent clients, so the ongoing cost and time investment was not worth it.

I had never heard about lenders allowing higher LTV, or anything like that simply because you have a license.  And finally, while there are likely some pro accounts that will only give you discounts if you are licensed, most will let anyone sign up, and are often based on volume spent at that store anyways.

Deborah Wodell · Answer

Getting a General Contractor (GC) license can be a smart move, but it depends on your priorities as a flipper. It might save you money on labor and give you more control over projects, but it also means taking on more responsibility for permits, inspections, and subcontractors. If you enjoy the hands-on work, keep in mind that managing as a GC might pull you away from that. Alternatively, partnering with a reliable GC can help you scale without adding extra responsibilities. It’s all about aligning it with your long-term goals.

Nik Farooqui · Answer

I think you might consider the fact that not every state even has GC licensing.  There might be an upside in the lending process to say that you are a licensed GC, but there are plenty of options without it as well.  Myself being a GC, developer and construction consultant as my main business... the question of GC licensing has never been a factor in lending or in selling for me.  But that again might just be my own experience so take that with a grain of salt.

Kevin Ivey · Answer

I didn't get my GC for the first 2 years I did flips using subcontractors for the particular work.  There is a definite liability to being a "GC" of the project, vs the I didn't realize, my contractor didn't tell me I thought they did it ... for minor things.  : )

Dylan Jeluso · Answer

Thanks for the advice! I didn’t realize a GC license could boost LTV/LTC. I’m taking my Real Estate License exam in a few weeks, so this is super helpful—appreciate it!

Erik Estrada · Answer

Having a Real Estate License will also help.

Peter Mckernan · Answer

This questions is the same question as getting your real estate license when doing flips, you have access to the MLS, you save money on the commission, and you have a little bit of a competitive advantage over the next person that is not licensed. I would say I have clients that don't have either license and they do great even with paying a contractor and agent. I also have friends that are licensed agents and flip properties that do great. There are some I know that do have their GC license that flip too.

The slippery slop in both situations is that I would suggest sticking to one thing and not spread yourself too thin. For example, sometimes as a GC a person you know will ask you to do a job, you say to yourself, this will be quick and I'll get a little capital for the next deal. This situation can compound to you doing more jobs and getting more capital for the next deal, but then losing sight of really why you got the license which is saving money on flips and doing more of them because the margins are so great for you being licensed. Just make sure you stay the course if you do get licensed and flip.

Side note this happens to realtors too that flip. They are like, oh I can do this deal, great numbers, and the next deal and so on.. Meanwhile, their mom wants to list a house and their friend wants to buy a house at the same time (taking their eye of the ball).

Christian Hwang · Answer

Hi Dylan.

Like many businesses, the flipping niche has 3 categories that differentiate one flipper from another: quality, faster, cheaper. I'm assuming you haven't achieved mastery in all 3 categories, but realistically you can choose from 2 of the 3 categories. If you get your GC license and intend to run your flips entirely, you may save money (cheaper), but it'll cost you your time (faster) and might have better quality of work. If you want to scale, it likely won't involve you running your own renovations as a GC. You can always do some hands-on work without a GC license so I would agree with the others who say that having a RE license and GC license are not worth it.

Take my advice with a grain of salt since I have neither a RE license nor a GC license.

Is Getting a GC License Worth It for a New Flipper?

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