Reasons Why You Should Wait For Your Real Estate License | Success Path
Are you wanting to start a successful house flipping business and think that investing in your real estate license is a necessary step to achieving your goals? While getting your license might seem like a logical step in the process, many professionals in the industry suggest that by waiting to get your real estate license, you can actually navigate the beginning stages of house flipping success with added freedom.
Boundaries by Brokers
One of the biggest downfalls of getting your real estate license is that, in order to earn it, you have to go through a brokerage firm or independent broker. This means that, until you’re independent yourself, you’ll have to work under someone else when it comes to negotiating real estate deals. Furthermore, even if you do become a legitimate real estate agent, you still cannot gain access to the MLS (multiple listing service) unless you’re part of a brokerage, and you’ll likely have to join a local real estate board and pay fees to maintain membership.
By waiting to get a real estate license, however, you maintain the freedom to buy properties from any qualified broker, and by working with an expert real estate agent, you can focus solely on the properties you’re flipping without worrying about paying fees, dues, or running into brokerage restraints.
Licensing Takes Time and Work
Many real estate professionals are taken back by the amount of work it takes to gain licensure. Contrary to the common belief that getting licensed is as easy as adding your name to the state licensing commission, the process is actually incredibly lengthy and time-consuming. In fact, experts suggest that you’ll need to put in roughly 100 hours of coursework and a substantial amount of studying prior to taking the exam — a test that many people don’t pass the first time.
The Process Isn’t Cheap
If you’re new to the flipping scene, chances are you’ll be tight on funds or even in the negative for a while until you get in the groove of things. Therefore, you probably don’t want the financial burden of the expensive licensing process hanging over your head. Not only will you have to invest money in exam courses, pay the exam fee, and maintain membership of costly licensing organizations, but working under a broker will also require you to put in a lot more time and money than you might have available.
Prepare With a Plan
Though these disadvantages highlight reasons why you should wait to get your real estate license during the beginning of your house flipping career, it doesn’t mean that you shouldn’t plan to obtain it in the future. Afterall, acting as your own real estate agent does come with its perks when the time is right. Perhaps the most important step you can take during this process is to develop a long-term plan that will help you make the best use of your time and money, while also increasing your return percentages.
If you can, consider waiting to get your real estate license and instead work with a qualified, licensed professional until your real estate investing business has achieved stability. Not only will this give you time to develop and understand a reliable business model, but it also allows you to adjust to a lifestyle that can often be orchestrated by ups and downs. However, if you want to start your real estate investing business as your own, personal realtor, getting your license first and then working under the guidance of an experienced broker can be a viable option. Just remember, though, that by postponing your licensure, you can save money and time, all while gaining experience and establishing a solid foundation for your house flipping business.
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