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

[Dylan Jeluso]

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!

[Erik Estrada]

If you are brand new and do not have much experience, having a GC license does help you get a higher LTV/LTC on hard money loans.

[Erik Estrada]

Quote from @Erik Estrada:

If you are brand new and do not have much experience, having a GC license does help you get a higher LTV/LTC on hard money loans.

 Having a Real Estate License will also help. 

[Dylan Jeluso]

Quote from @Erik Estrada:

Quote from @Erik Estrada:

If you are brand new and do not have much experience, having a GC license does help you get a higher LTV/LTC on hard money loans.

 Having a Real Estate License will also help. 

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!

[Mija Aguilera]

@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.

[Kevin Ivey]

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.  : ) 

[Evan Polaski]

@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.

[Dylan Jeluso]

Quote from @Evan Polaski:

@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.

Thanks for sharing your insight. I’m still new to the industry and learning different ways to approach my goals, so hearing your experience is really helpful. I appreciate the perspective!

[Zachary Deal]

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! 

[Nik Farooqui]

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. 

[Zachary Deal]

@Nik Farooqui You are correct in that GC licensing is never a requirement but it is more of a "silent factor" that can make a lender more comfortable lending hard money and thus the approval and loan process easier. Experience, licensing, etc are all things lender will take into consideration when evaluating a deal and the more you can show the lender the more comfortable they will be and can often result in more competitive terms, etc

[Mija Aguilera]

Quote from @Evan Polaski:

@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.

Can not agree more!  @Evan Polaski