Do You Need A Real Estate License To Flip Houses?

Do You Need A Real Estate License To Flip Houses?

Flipping houses has become very popular over the last decade, and this is largely due to the simplicity behind the idea; you simply buy cheap properties, renovate them, and sell them at a higher price.

This way, you’ll earn a profit from each property sold. But, do you need a real estate license to flip houses?

We took a closer look at the requirements and checks you need to get into house flipping – including the licenses you will need to acquire.

What's Ahead...

What Is House Flipping?

House flipping is an investment strategy that involves buying homes for less than their market value in order to make improvements and then selling those homes for more than they cost.

The goal of house flipping is to make money by taking advantage of any homebuyer’s desire to own property with no long-term commitment.

The process can be broken down into three steps:

  1. Find a Property
  2. Renovate it
  3. Sell it

If you’re interested in learning how to flip houses, we’ve put together a list of things you should know before getting started.

How Much Money Can I Make With House Flipping?

According to some estimates, you can expect to net $60,000 or more per year as a real estate investor – though it is important to remember that this will vary hugely depending on location, property value, and the number of improvements needed.

There are many factors that go into determining your earnings potential. For example, if you purchase a fixer-upper, you may have to invest significantly more time and effort than someone who buys a brand-new home.

You also need to consider whether you want to specialize in one type of property (such as foreclosures), or whether you’d rather work on a wide variety of different types of properties.

You can find out what kind of returns you can expect to see by looking up average profits made by other investors in your area.

Do You Need A Real Estate License To Flip Houses?

In most states, you do not need a license to buy and sell real estate – but taking the time to get licensed can have real advantages for your projects, particularly if you are looking to turn house flipping into a long-term career or business.

A real estate license will allow you to offer better services to clients, and it will help protect you against legal issues such as fraud and misrepresentation.

There are a number of advantages to house flippers securing their real estate license, and these include:

Direct Access To MLS

One of the biggest perks of getting your real estate license is that it allows you direct access to MLS – or Multiple Listing Service.

This database contains information about all available properties listed for sale in your area, which means you can easily check prices and availability of properties without having to contact individual sellers directly.

This makes it much easier to identify good deals and helps you avoid wasting time chasing after bad ones.

Better Services

A license gives you the opportunity to offer better services to your clients. While there are plenty of people who would happily take advantage of a non-licensed flipper, only licensed agents are allowed to advertise themselves as “real estate brokers”.

Licensed agents are also required to provide buyers with a written contract outlining the terms of the deal, including price, closing date, and other details.

A broker’s license also provides protection from liability for both parties involved in a transaction.

If you plan to run a successful business, you’ll need to make sure that you keep accurate records of every aspect of your transactions – and the best way to ensure that you meet all the requirements set out by state licensing boards is to get your license now.

It Offers Another Source of Income

Another benefit of getting your license is that it offers another source of income. Many real estate agents earn money through commissions when they sell homes, so you could potentially double your income by becoming an agent yourself.

In the event that you have to press pause on your house-flipping career, getting your real estate license will still allow you to make money selling houses while you’re waiting for things to pick back up again.

Networking Opportunities

Finally, getting your license will open up networking opportunities. By joining local real estate associations, you’ll be able to network with other professionals in your field and learn more about how the industry works.

Enjoy Lower Closing Costs

The final reason why you should consider getting your license is that it can lower your closing costs. If you want to purchase a property at auction, you may find that you need to pay a premium to secure the right to bid on the home.

However, once you’ve secured your license, you won’t need to pay this extra fee, meaning you’ll save money on the cost of bidding.

How Do I Get My Real Estate License?

To become a licensed real estate agent, you first need to pass a test administered by the National Association of Realtors (NAR).

The exam covers topics such as basic math skills, reading comprehension, knowledge of the law, and understanding of the various types of contracts used in real estate transactions.

Once you have passed the BAR exam, you’ll receive a license from your state board of realtors. This license allows you to represent sellers or buyers in residential sales and purchases, depending on which type of license you choose.

You’ll also need to complete continuing education courses to maintain your license. These courses cover topics such as marketing techniques, the laws governing real estate transactions, and the ins and outs of buying and selling properties.

The Bottom Line

Getting your real estate license isn’t just useful because it protects you from potential legal problems; it also opens up many more opportunities for making extra money.

If you’re serious about turning house flipping into a full-time job, then you should definitely think about getting your license.

Paul Martinez

Paul Martinez is the founder of He is an expert in the areas of finance, real estate, and eCommerce.  Join him on to learn how to improve your financial life and excel in these areas. Before starting this blog, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.