Do you Need a Real Estate License to Flip Houses?

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It’s better to be the most equipped than the least prepared when starting a flipping career. Although a real estate license is not required to become a house flipper, it is a good idea to have one because it will provide you with additional options along the process. Learning for real estate license exams provides house flippers with a solid foundation in all of the information, vocabulary, and procedures required to acquire and sell a home.

Is It Necessary For Me To Get A Real Estate License to Flipping Houses?

The level of difficulty in obtaining a real estate license varies by state. Qualifications, time, and effort are generally not excessively difficult or time-consuming. You’ll need to study the subject for at least three to six weeks and pass a licensure exam. That’s it!

If you pass, you will be a licensed real estate agent.

Why? You’ll be allowed to supervise construction, purchase materials, hire staff, and sell the finished product whether or not you become a real estate broker.

If you have a real estate license, however, you will be able to access the MLS, expand your network, avoid any listing commissions paid throughout the selling process, and list your own home without any assistance.

Isn’t it tempting?

When flipping houses, keeping expenses low and profit margins high is critical. Having a real estate license and saving money on expenses could make or break your venture. It can, at the absolute least, boost your overall deal earnings.

What is the use of a real estate license?

Investors who earn a real estate license will gain access to a whole new world of professional opportunities. “By earning a real estate license, you’ll be able to reap the benefits of chances you might not have otherwise realized about.  When a good deal becomes accessible, you won’t be waiting for an agent to contact you; you’ll be the first to know. It’s conceivable to obtain a new agreement simply because you have the legal authority to do so. Here are just a few of the potential business options that come with having a real estate license:

  • Selling Agent: Getting a real estate license allows you to assist others in the purchase and sale of real estate.
  • Broker: A property agent is a person who is licensed to manage his or her own team of real estate agents.
  • Leasing Agent: Agents might work as property managers or leasing agents for both residential and commercial properties.

Make the best investment decision for you

A real estate license can greatly boost investment options. A real estate license is also not outrageously expensive and should not be a barrier. A license can be obtained for less than $1,500. The education can be completed online, and the amount of hours required ranges from 45 to 90.

This isn’t a particularly challenging assignment. In fact, many other professions have more longer and more demanding tests and courses.

Obtaining a real estate license offers some benefits and may assist you in becoming an investor. You will have more inventive ways to obtain the most profit out of each deal, meet more individuals like you, and open a few doors for investment if you sacrifice a thousand bucks and a few months of research.

Cons of Getting License

Everything has advantages and disadvantages. While there are many benefits to having a real estate license, there are also some drawbacks to be aware of.

1. Preferences of Buyers and Sellers
Due of previous negative experiences with real estate agents, some investors and sellers prefer not to work with them.

2. Financial and time commitments
You will undoubtedly have to make some time and financial sacrifices in order to obtain a real estate license. There are charges associated with enrolling, acquiring pre-licensing books, and taking the exam, which can range from $600-$1,200.

What is the process of obtaining license?

State-by-state standards for a real estate license fluctuate, with varying training and testing based on where you live. Regardless, the general procedure appears to be like that. For a better knowledge of the process of getting a real estate license, follow the steps below:

Make Sure You’re Eligible: The first step is to make sure you’re eligible. This usually means you’re 18 or 18 plus, have a high school education, and are an U.S. citizen. Again, eligibility varies by state, so remember to check to see if you qualify.

Take a Pre-License Course: Obtaining a real estate license is not a conventional “college” experience, while there are courses that must be completed in order to sit for the exam. To complete the needed hours of training in a particular state, potential agents should register in a pre-license program. Depending on your location, this could take anywhere from 60 to 150 hours.

Pass the License Exam: After you’ve completed your state’s real estate licensing training, you’ll need to register for the exam. It’s usually done online and questions about state-specific as well as national practices. There is a charge to take the exam, which varies based on your state.

Activate Your License: After passing the licensure exam, you must contact your state to activate your license. This could cost somewhere between $200 to $500, hence keep that in mind as you proceed. This is also an excellent time to consider if you want to be a National Association of Realtors accredited agent (NAR).

Membership in the Multiple Listing Service (MLS): The final step in obtaining your real estate license is really not a stage at all. Rather, think of it as a reward for all of your work and effort. Pay the additional fees to join the MLS in your region using your authorized real estate license.

Is it necessary for me to have a contractor’s license in order to flip houses?

It is normally not essential to obtain a contractor’s license in order to flip houses and real estate investors actually bring in fix and flip contractors to complete the repairs. Many investors, though, may find it valuable. Different states have different rules on what licenses and licenses are needed to flip houses, so investors should find out what permits are needed in their area. Investors frequently feel that having a contractor’s license is beneficial due to the different permissions and licensing that are required.

What can I do with a contractor’s license?

There is no requirement for real estate investors to obtain a contractor’s license. It is feasible to flip properties without having a contractor’s license. It’s worth mentioning, nevertheless, that acquiring a contractor’s license has grown to be associated with a number of advantages:

  • Savings on renovations
  • Costs of permits are reduced.
  • Cost estimates for renovations that are more accurate
  • Reduce your reliance on unknown contractors.
  • When you’re not flipping houses, you can count on a steady income.

Using hard money loans to flip houses

Hard money loans are short-term financial instruments utilized by real estate developers to fund investment projects. Property developers and house flippers who would like to remodel or improve a property and then resell it for a return use fix and flip loans from lenders like 14th Street Capital because it gives them faster access to short term funding. Since fix and flip loans use property as collateral, the after repair value is considered when obtaining the loan rather than current value making it beneficial for investors despite higher interest rates. Obtaining a fix and flip loan from hard money lenders also bypasses the stringent norms of underwriting and red tape usually associated with traditional banks and other financial institutions.


The agent who has pondered whether or not you require a professional license in real estate to flip houses should now have clarity. As you can see, acquiring a real estate license has a lot of advantages. If you’re prepared to put in the time and money to get licensed and take full advantage of the benefits that come with being an agent, it could be the appropriate career decision for you.