With the rising popularity of shows like Flip or Flop and Fixer Upper, many people have become intrigued by the idea of flipping houses. Shows like these can make it look easy — buy an older house in a nice area, update the flooring and fixtures, sell it and make a major profit. Of course, any professional house flipper will tell you that these shows are better-considered entertainment than education. The reality is that flipping houses is hard work, and not everybody who tries will succeed. The fact remains, however, that many people will succeed and see great profits in doing so! If you have home improvement skills and an entrepreneurial attitude, you may be equipped to join that group. You probably have questions, though — like do you need a real estate license to flip houses? Read on to learn about the license needed to flip houses.
Don’t Be Fooled: It’s Hard To Make Money Flipping Houses
One of the biggest misconceptions about flipping houses is the idea that it is “easy money.” On the contrary, every cent earned from flipping a house is money that has been hard-earned. Many flippers are motivated by major payouts, though, and it’s true that there are opportunities for impressive profits. The question remains — do you need a license to flip houses? In short, no. If you want to buy a home, complete a renovation, and sell it to a new owner, you don’t need to obtain any license to do so. There are a few reasons why you might still want to, though.
Why Should You Consider Getting Your Real Estate License To Become a Home Flipper?
Though there is no license needed to flip houses, getting a real estate license can be a beneficial business move for an aspiring flipper. Flipping a home typically entails reselling it, and this part of the process can cut into your profit if you outsource the job to another realtor. Real estate agents take a commission from every sale they make, so when you hire a realtor to sell a home for you, you’re losing out on a potential source of profit that could be yours. Do you need a license to flip houses? No, but it can make a big difference in the profits that you take home.
Earning your real estate license can also help you scout potential houses to flip. Realtors have easier access to a range of privileges when searching for homes, including the ability to view vacant properties and see off-market and coming soon listings. These benefits can give you a great advantage as you seek out the best homes to renovate, flip, and resell — and acting as your own buyer’s agent once again means that you don’t have to pay a realtor’s commission.
What If I Don’t Want to Get My Real Estate License, But I Still Want to Flip Houses?
Do you need a real estate license to sell houses? If you are acting as a real estate agent, yes — but if you are simply listing the home for sale, no. What does this mean for flippers who want to resell houses without getting a real estate license? If you aren’t interested in becoming licensed, but you still aspire to flip homes, you can certainly do so. You’ll simply need to find the right resources for your investment. One such resource is a reliable source of funding. Most flippers who are new to the game don’t have the cash to buy properties and flip them solely from their own assets. You can benefit from a partnership with a funder who offers hard money for flipping investments.
How Much Money Do You Need to Flip Houses?
Another common question is how much capital is required to complete a flip investment. The answer to this question varies based on your market, the cost of the initial investment, and the extent of the renovations. Some homes may cost as little as $25,000 to flip, whereas higher-value investments may require upwards of $100,000 to flip. You should seek out smaller projects to start so that the risk to your investment is minimal.
Funding for Flipping in Arizona, Texas, and Colorado
Flipping houses is hard, but it can be worthwhile if you develop the skill and investment savvy that’s necessary. One thing you shouldn’t have to worry about, though, is raising the necessary capital to start your endeavor. That’s where Capital Fund 1 comes in. We offer hard money that helps you improve your profit margins. For more information, call us at (480) 889-6100 or reach out to us online.
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