Who do you broker with if you are licensed and want to flip?

Question

Hello,

I am getting my Real Estate License and plan on flipping some houses and/or buying rental properties in the future... I DO NOT PLAN ON BECOMING A REALTOR... problem is how does it work as I know I need to be under a broker to write offers, have signs up for selling houses, and be able to collect commission, etc .. But do Brokers's want to have you work with them if you are not a realtor , but a flipper? How do people who pass the exam, but need to be attached to a broker to get full license do this if they have no interest in becoming a realtor to sell other peoples houses, just your own... Any suggestions! I'm also from Canada so know some things maybe no the same cross border but any answers would be helpful! Thank you :) PS Another note do I get access to the MLS as soon as I pass my exam or only once I get full license with a broker?

Kristin Hamilton · Answer

My main goal was to have full access to MLS, see comps, houses that fell off the MLS, have access to lock boxes or to view listings without having to meet with another realtor, be able to sell the house I flip myself on MLS , collect commission on the purchase , etc. I would probably list most of my offers under my husbands name anyways but will offer full disclosure on all deals 100%.

Jonathan Wilks · Answer

I'm not sure about in Canada, but many berkshire hathway homeservices will partner with agents to do flips on properties using their money. It allows realtors to do normal real estate activity, but it helps berkshire to leverage its cashflow and great a great partnership. I would check into them to see if they have a similar opportunity in Canada. If not i would try to find a investor that is a broker that will allow you to learn and grow with them.

Mindy Jensen · Answer

I work for a brokerage that charges a flat fee (to me) for each deal I do. I pay nominal monthly desk fees on top of that.

I would be honest about your intent. I have no minimums for sales or listings, and I am sure there are brokerages in your area that do that as well.

I knew who I was going to work for before I took my licensing test, and as soon as I received my license, I signed up with the MLS, so access was just about instant.

Demi Rae Morris · Answer

You can do whatever you want, they will take your money! There are tons of Realtors who aren't active.  They don't really care what you do as long as you pay your fees

Karen Margrave · Answer

@Kristin  Hamilton

That's how we use our license. However; my husband is also a broker so that helps. There are many brokers that will let you hang your licensed with them for a flat monthly fee or percentage of the commissions you generate from your deals.

It's also good for the broker as your ads help bring more traffic to their sites. You will want to make sure you spell out how you will pay for signage, ads, lock box, Ommission and Errors insurance (do they require that in Canada?) and other things.

Since you don't want to work with other clients other than those on your listing, you might set it up to let other agents hold open houses on your properties, with them picking up leads, and some type of arrangement if they sell your house.

Good luck!

Joshua Springer · Answer

Being a "Realtor" is not the same as a normal job.  You pay for the privelege to access certain things based on your brokerage.  Here in the states you typically are on a local board of Realtors and get MLS access through them.  You have annual dues for that access.  Your broker can charge you for lots of things as well like desk space, phone #'s, branding, etc etc.

From the sounds of it your main goal should be to find a small broker that will only charge you a commission and not any extra fee's.  Then if you do 0 deals you're only on the hook for your board of realtors dues.  Find one with a good commision split.  Mine is 90/10 after 3 deals but most are either 60/40, 70/30 or 80/20.

Rodney Marcantel · Answer

I find it interesting that you think you need an RE license to flip homes only to access the MLS. Unless you plan to use your license as a Real Estate Agent, you'll be wasting your money if your goal is to flip houses and not use your license as a Real Estate Agent (marketing homes for buyers and sellers).

Better to partner with an agent who is versed in distressed properties and/or has worked with flippers in the past with success. That agent would be more than happy to provide properties and MLS comps anytime you need them.

Leverage is the key to success. Leverage your time and money. Time is something you cannot get more of. You have to leverage your time so you can focus on finding and securing deals for your contractors and your selling agent.

Tarek and Christina from Flip or Flop were agents with an RE business before getting into flipping. They didn't get into flipping because they were RE agents. It was  out of a necessity due to a downturned market.

Skyler Smith · Answer

@Kristin  Hamilton

Yeah, you'll probably need to get your license AND become a Realtor to get a commission and have MLS access. Good luck!

Skyler Smith · Answer

In my jurisdiction we have a few brokerages that are not Realtors, there are some spec builders here that are pretty active but don't really need to pay for MLS access and all the other fun stuff. You could look around for that type of brokerage, knowing that you won't have all the perks of being a Realtor, but keeping an active license to do a few deals off market if you like.

You probably don't need your RE license to do your own flipping and manage your own properties. What is your goal in getting the license?

Demi Rae Morris · Answer

I am a full time Realtor in South Surrey near White Rock! No flips yet, just rental properties.

Who do you broker with if you are licensed and want to flip?

Most Popular Reply