Flipping houses (realtor license/certified inspector)

[Justin Malachowski]

Hello,

I am looking to start rehabbing and flipping houses in the Chicago/NWI area. Would it be beneficial to acquire my own real estate brokers license and become a home inspector so that I can better pick the houses and sell the houses I want, or is it better to pay an inspector and realtor and focus on the flipping?

Thank You

-Justin

[Michelle Etherton]

Hi Justin! I'm an agent/investor in KC and I did go ahead and get my license in KS and MO (KC area is a bordering city) so I could get access to MLS and make a commission on the buy (if on market property) and sale. There are a lot of costs and time involved in getting and maintaining your license, but for me I make more with the license than it costs me. I don't know about Chicago, but here you have to be an active agent for I think 2 years before you can get your broker's license, along with several other requirements and costs to consider. On that - I would find a broker that is comfortable with you doing mostly investing and has a good split and just keep an agent's license.

On the inspections, that's something my husband (business partner) and I are also working through. He signed up for Inter Nachi inspection courses for a few months, but we are fortunate to have a friend that owns an inspection company franchise and he said my husband could ride around with him for training which will be much better than the courses. Maybe you could find a local inspector willing to let you go through a few inspections to learn?

Best of luck to you!

[Mark Ainley]

@Justin Malachowski I alway insist a serious investor should have their RE license as it yields access to deals and info.  

As for inspectors license leave that to someone with over ten years experience but you need to learn what things cost so you can spot a good deal quick.  

[Teri Feeney Styers]

@Justin Malachowski I use my license (commission) as a negotiating point when acquiring MLS properties. I can waive thousands of dollars of commission to entice a lower purchase price. I don't hire inspectors - but I do use the inspection period to get my subs in there to look and bid - they can spot a lot of potential problems for me.

[Jeff Burdick]

Originally posted by @Michelle Etherton:

Hi Justin! I'm an agent/investor in KC and I did go ahead and get my license in KS and MO (KC area is a bordering city) so I could get access to MLS and make a commission on the buy (if on market property) and sale. There are a lot of costs and time involved in getting and maintaining your license, but for me I make more with the license than it costs me. I don't know about Chicago, but here you have to be an active agent for I think 2 years before you can get your broker's license, along with several other requirements and costs to consider. On that - I would find a broker that is comfortable with you doing mostly investing and has a good split and just keep an agent's license.

On the inspections, that's something my husband (business partner) and I are also working through. He signed up for Inter Nachi inspection courses for a few months, but we are fortunate to have a friend that owns an inspection company franchise and he said my husband could ride around with him for training which will be much better than the courses. Maybe you could find a local inspector willing to let you go through a few inspections to learn?

Best of luck to you!

 Illinois has basically the same requirements except they've changed the names.  It used to be agents worked under a broker.  Now it is broker's work under a managing broker.  Same exact concept, just different names.  

[Kumar Tummalapalli]

Originally posted by @Justin Malachowski:

Hello,

I am looking to start rehabbing and flipping houses in the Chicago/NWI area. Would it be beneficial to acquire my own real estate brokers license and become a home inspector so that I can better pick the houses and sell the houses I want, or is it better to pay an inspector and realtor and focus on the flipping?

Thank You

-Justin

I feel , getting a brokers license will help for sure . Mark Ferguson had a blog post on this , look him up . 

The only thing to look out is - if you are not comfortable with exams , just plan accordingly . I did quite a bit of research for a friend of mine and found some ways to make the process less painful , PM Me if you would need more info , we can take it offline .

[Mark Skaff]

@Justin Malachowski

Getting a RE license takes time and money upfront, but is worth it. The knowledge you gain from the classes and being in the industry is beneficial. Also, you do keep some of the commission on the buying and listing side. Which that alone pays for the license.