Real Estate License: How To Really Work On “No Money Down” Deals

Countless individuals looking to enter the world of real estate investing first reaction is to wholesale. As an alternative, another option is your real estate license. The license often appears overlooked, perhaps that’s because there’s at least 5 people running Facebook campaigns to teach you to “flip houses for no-money down” and none suggesting your license.

Wholesaling for starters isn’t no-money down. Someone has to front the earnest deposit. Even assuming you “borrow” the earnest deposit – then anything in real estate can technically be “no-money down” because some kind soul was persuaded to fund your transaction without a single dollar put forth on your part. In any case, successful wholesaling really isn’t low cost endeavor. Wholesaling comes down to marketing and buyer list. Marketing isn’t free and developing a buyer list can have costs too.

What if there was a way to work real estate transactions without putting down an earnest deposit (i.e. a real “no money down” deal), and get paid a good finder’s fee for connecting the buyer and seller? And you could do this part-time? What if you could reach cash buyers without spending a dime or minute on building a buyer list? Rather than paying a national “guru”, you could join organization overseen by a local professional with real world experience that you can ask for day-to-day guidance while learning the ropes? You could do all these things while building capital for real estate investment and, at the very same time, source your own deals? And you could qualify for all this for a couple hundred and two weeks work? Too good to be true, I know.

Getting your real estate license is perhaps not as “enticing” as becoming a wholesaler. That’s one reason (among others) that people buy into these “flip houses with no money down!” programs rather than getting their license. I had a conversation with a person that called asking to discuss breaking into real estate investment. He had no experience connected to real estate. When I asked what kind of bankroll he has to invest, he said not really any.

I suggested he scrape together enough to get a license, look for a friendly brokerage, and begin pushing his business card to friends, family, anyone that would listen. He essentially ignored what I said, and asked about wholesaling, flipping houses, and even asked (with not a day of construction experience to his name) how can he become a general contractor? I said, well, nobody wants a general contractor that has no experience in repairs. Next question, how do I find contractors if I’m a GC.

If you are in position to have enough capital for a hard-money loan, great. You can flip houses. If you are in position to spend a couple thousand on marketing per month, great. You can be a wholesaler. If you have no money, experience, or skill – a great option is to go get your license!