Acquiring a Real Estate License to Wholesale in Kansas City

[Kimberly Farrally]

Hi, I'm new to real estate investing.  I'm transitioning out of the military and my husband and I are very interested in starting our own business.  First we wanted to flip houses then learned about wholesaling as a way to gain the cash needed to start flipping.  But, my concerns are the legality of it all in the Kansas City area and making sure I'm setting up this business correctly.

I was looking at getting a real estate license just to make sure everything was legal in the process.  But according to the state of Kansas, to get your salesperson license they require your application to be signed by a supervising or branch broker who will be responsible for the applicant.  This sounds like you need a real estate company or broker to vouch for you.  How are all these people getting licenses to wholesale then?  Do I need to become a real estate agent for a company first?

Missouri's website didn't mention this requirement...so maybe it's easier to get your license in MO.  But, I would like to be able to wholesale on both sides of the stateline, especially because we'll be moving to the Kansas side.

Would appreciate any enlightenment on this topic and make sure I'm understanding this correctly.  Thanks in advance!

[Kim Tucker]

Hmm  I have been rehabbing and flipping and wholesaling in Kansas City since 2000.  I have had a real estate license since 2001.  Very valuable tool and has not hindered me in the least and has actually made me more money.

Case in point: I can look up my own accurate comps, list my own properties and save commission and get paid for buying MLS properties. - On average about $20,000 extra a year.

Case in point 2:  Motivated seller calls me with a house.  Great house, money to be made, but either not a house we really want to go on the hook to buy on the really low end markets or the seller wants and can get more than we want to pay.  We offer to list it for a fee and make a commission on a lead that would not have made us any money otherwise.  - On average $3,000 to $10,000 a house.

Case in point 3:  I can refer out deals out of my area to other Realtors and I can receive referral fees  in compensation - which is 100% totally illegal if you are not a licensed agent.  In all 50 states it is illegal to get paid for procuring a buyer or seller for a third party and all wrapped up in this is also referral fees.  On average $300 to $5,000 a house.

No a license is not required, but sure comes in handy, especially if you are new and afraid to sign on the dotted line to purchase, its much easier to sign a listing contract that does not obligate you to buy but obligates the seller to pay you if you sell it.  Priceless.

Get the to your local Real Estate Investor Group - there is one in Kansas City that I know about and you can connect with a lot of people live and in person.