Because flipping houses and being a real estate agent is so closely related. It’s not uncommon for house flippers to wonder if they should become a real estate agent or for real estate agents to wonder if they should start flipping houses.
As both a full-time house flipper and a real estate agent. I wrote this article to help answer these questions and discuss both the pros and cons of flipping houses as a real estate agent.
Should a House Flipper Become a Real Estate Agent?
Even though there are both pros and cons to flipping houses as a real estate agent. In my opinion, if you’re a full-time or serious house flipper the pros far outweigh the cons and you should definitely consider getting your real estate license.
As there are several advantages to being a licensed real estate agent and a house flipper. One such advantage of being an agent is access to the MLS or multiple listing service. While there are other ways to pull comps to value property nothing compares to the ease and accuracy of having access to the MLS when pulling accurate and reliable comps.
The second advantage of having your real estate license as a house flipper is the money you can save on real estate commissions. While you still might have to pay a buyers agent commission, you can act as the listing agent on all your flips thereby cutting out half the commission you would otherwise have to pay.
This cost savings can really add up quickly as you will be able to save thousands of dollars per flip in real estate commissions.
When Should a House Flipper Not Become a Real Estate Agent?
It’s not all good news though when it comes to flipping houses as a real estate agent. Which is why not every house flipper should run out and get his or her real estate license.
The biggest con to getting your real estate license as a house flipper is not only the initial money and time to obtain a real estate license but also the money and time it takes to maintain a real estate license because of Realtor dues and fees as well as required continuing education.
Also, once you get a real estate license you will be deemed to have more knowledge and information compared to the average person about real estate. Because of this, to prevent any unfair advantages when dealing with the public most states will typically hold you to a higher standard and can require additional disclosures such as informing all buyers that the owner of the flip is a licensed real estate agent to prevent any unfair advantages.
If your a new house flipper or someone that only plans to flip a few houses its best to hold off getting your real estate license, due to the costs and time involved to receive a real estate license, as well as the potential complications of being both a real estate agent and a house flipper.
Should a Real Estate Agent Start Flipping Houses?
If your a real estate agent working with customers who flip houses you don’t have to see too many big house flipping paydays before you start to think maybe I should start flipping houses too.
This is understandable because as an agent you might have to sell 10 houses or more to earn the same amount of money that a house flipper made on 1 flip.
It’s important to remember though that while being a real estate agent and flipping houses are both in the same industry they are very different types of businesses that each requires a different and unique skill set to be successful.
That being said though being a real estate agent can really give you a leg up when starting out house flipping because you already have an in-depth understanding of the local real estate market, can identify a good deal when you see one and know what buyers are looking for.
Should a real estate agent start flipping houses? In my opinion and speaking as someone who was a real estate agent first and transitioned into flipping houses. Being a real estate agent is a great way to get your foot in the door to flipping houses.
Just remember to take it slow when entering into the house flipping world and make sure you know what you’re doing before you purchase that first flip.
Want more information on how to flip a house? Check out our article “How to Flip a House the Complete Guide“.
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