Can you flip houses without a real estate license? Can you? Do you need a
license? Is it important? Is it not important? That is what we're going to be
talking about when today's episode. I got some great info for you. Let's go. Okay, in
today's episode, I'm going to be telling you all the secrets about flipping with a
real estate license. Number 2 we're going to talk about the benefits of having
a real estate license. If we decide that that's for you. Again, I'm
going to tell you all the secrets and tips and so you'll be able to know if you
should or if you shouldn't. But I'm going to give you the benefits of having a real
estate license. Number 3 I'm going to tell you my story. Like I said, I've had
my license for many years and I have some some good and some bad that I want
to share with you so that (again) you can decide if this is right for you or
if it's not. And then lastly, I'm going to give you the one question that you need
to ask yourself to know if you should get your real estate license to flip
houses. Okay. So, first of all, let's talk about what is flipping. So, flipping.
Fix and flipping. People use this term so much and there's 2 different things
that what they're talking about when they say this. So, obviously. There is the
fix and flip. I know both of the people have seen HGTV, fix flip this house fix
and flip this house. And we've all seen those shows. And so, that is the typical
fix and flip. That is when you purchase a property, you renovate the property, fix
it up update it and then you sell the property for a profit. That is one
version of flipping. Another version of flipping... Again, these are just generally,
is just flipping the contract where you get a property under contract you don't
do any repairs to it. And you flip the contract assign the contract to another
investor that most likely will do that fix and flip, okay? So, that's what a fix
and flip is. And so, when we're talking about flipping, we're talking about do we
need a real estate license? A real estate license is to be a realtor, to be a
real estate agent where you can legally buy your state, have a license to take
people out and show them properties and sell them properties and receive a
commission, okay? That's the key word --commission. So, as a real estate
agent with a real-estate license like I have, I can take people around in my car
and I can show them houses. And if they purchase that home, I could get a
commission or I could find people that want to sell their home and I can do a
listing presentation and say, "Hey, let me list your house. Put my sign in front of
your house and sell your house for that." That is the primary reason why you get a
real estate license. So, as I gave you both of those definitions, do you see
where they don't necessarily fit with each other? You know, I told you about
fixing & flipping, renovating houses and then I started talking about
selling houses with a real estate license. So, this is why this is the best
question because so many people go get a real estate license when they want to do
flipping. Or in other words, when they want to be a real estate investor. And
you really need to know and understand the difference between the 2. So now,
that I told you what flipping is and what a real estate license does for you.
Let me quickly tell you my story. So, I have my real estate license and I've had
it for very many years. When I first got my real estate license, it was 2006. I was
in Georgia. I had a full time job and I wanted to get my real estate license because
even then, I wanted to quit my job and not work in you know a cubicle and I
wanted to just be free. And I thought having my real estate license was going to
be fabulous and I was going to make a ton of money just showing people houses and
selling houses. Well, that didn't quite work out because it took so much time.
Like, oh, my gosh. How much time it took to find clients. Driving them all around
every weekend showing them houses. They were very indecisive trying to convince
people to go with my real estate broker. And then here's the crazy part: Because I
actually was successful. Like I had a job and I was selling houses. I was selling
like one house per month. And I had decided that my price range was like
300,000. Because in the area of prices were going up. So, on my
first deal, I got like a 9,000-dollar commission check. That's what it
was supposed to be. Because I get 3% for bringing the buyer to buy
that house. You know, I drove the guy around in my car and he finally bought
it. And so he bought in his 300,000. I'm like, I get 3%
for me. You know, that's $9,000. Well no, no, no, no. I did
not get $9,000 because my broker that I worked for took like 40%, okay? So,
as a real estate agent, there are a ton of fees and you really work for a broker.
You're self-employed but you're not really self-employed because as a real
estate agent, you must have a broker that you work
under and they supervise you and they take part of your commission, okay? I
don't care what they say. They take a part of your commission in some way
shape or form. And in many cases, they take a portion of your commission and
they charge you a monthly fee just for them allowing you to work under them. So,
it just was not as profitable as I thought it was going to be. And it took
way more time than I thought. So, I'm going to give you what I did with my
real estate license to change all of that around. I'll talk about that. I
didn't figure it out for a few years but I have the answer for you. So now, let's
talk about what happened in my life and how I fix this and how I'm going to tell
you what you can really do with your real estate license. So, that was 2006. I
did that for a few years. Market crashed in 'O7 '08. So, blah there. Wasted a ton of
money getting my real estate license. I ended up putting my real estate license
on inactive status. Then I got training on how to be a real estate investor. And
that changed my life. So, when I got back into real estate
investing fast forward 2009, 2010, I had my license on inactive status.
Because the person that mentored me and coached me, he did not have his real
estate license and we were doing a lot of wholesaling and we were in the state
of Connecticut. So, he was just saying you don't even need a license.
And it's true, you don't. Okay? But I ended up going back and getting my license
because when I graduated from a wholesaling or just flipping contracts
to the fixing and flipping I found that I was able to save money with my real
estate license, okay? So, this is the benefits that I was talking about. I was
able to save money. I was able to find properties. And MLS, okay? So, in the
Multiple Listing Service, that's where all of the real estate agents put all of
their houses once they get someone to sell their house. They all put it in one
system. If you look on Zillow and realtor, know that those are just houses
in MLS at a real estate agent most likely found a person that wanted
to sell. And those are those houses. So, I started being looking through the MLS
using the expired listings, okay? So, people's listings that they
tried to sell it they were unsuccessful, I call those people and I was able to
start getting some deals with that, okay? So, I use one of the ways I use my
license and that was like crazy because they couldn't sell their house. They
already tried 4 months. And by the time they talked to me, they were way
more motivated. We talked about that word --motivation. You want people that are
motivated, ready to go. And then after I got the contract,
flip the house, renovate it; now, I could also sell the house and not have to pay
a commission to someone else, okay So, I have my real estate license. I put that
sign in front of the house myself and I sell my own flip, alright? So, those are
2 great ways that I use my real estate license to save money. Now, let's get to
the fun part. Alright? This part is going to be a little
bit scary because I'm going to tell you something that I'm a little embarrassed
to tell you. But I have to because this is the key we're talking about flipping
with a real estate license or if you should get one. So, I'm going to tell you a
horror story of flipping with a real estate license like what some of the
dangers are. So, like I said, when you're flipping a house, the key to flipping is
buying the property at the right price and finding properties that are at a
discount. How do we do that? Again I made a whole video for you how
to find properties below market value. I put a link to it for you below, you got
it. So, let's talk about now we've done that. Well, I had a real estate license. So,
I was marketing to people with property problems and we actually had a business
partner. We had we found a lady and she was going to be moving to a convalescent
home. And she sold us the property. She wholesaled it to us. She owned the
property free and clear. We flipped the property, okay? Make a ton of money. Once
the whole thing was done, the lady's daughter found out that I had my real
estate license and that I had bought the property at this really low price and it
really wasn't that low. We really gave her very for your deal. But the daughter
was looking for money at this point. And she filed a complaint with the
real estate commission because I had my license
and I bought that property or say we bought that property. She was unhappy. She
felt like, "Oh, well. My mother could have got more money and you have a real
estate license. And my mother thought you were representing her." All this other
stuff. So, I have messed up because one of the things that I did not do that I'm
telling you (my God) if you get your license, please do this: Make sure you
communicate that you do not represent the seller. That's where you can get in
really big trouble. Now, thankfully I never lost my license.
I've never had any sanctions. I'm a model student. I do what I'm supposed to do, I'm
a good person. But I almost got in a really really big trouble for this. And I
had to fight through this. So, I don't want this for you, guys. When you have
your real estate license, you are governed by the real estate commission
in your state. And it's really, really easy for anyone to just file a complaint
with them about what you've done and how much money you're making. So, you know, you
start making a lot of money. People see, you know, she saw that we had got this
house, we have fixed it up. And she just watched the show. She must have known.
Because she knew how much we pay for the house. And then she knew how much we sold
it for. So, she was trying to get some of that profit. But we had renovated the
house. We have fixed that. We had done things to earn our profit. Don't get me
wrong. We definitely earned our profit but where I messed up. I really did and I
don't get no sanctions or anything, is I should have made that lady sign
something saying that she knew I didn't represent her as a real estate license.
Okay? And that is really important if you have your real estate license. And one of
the reasons why I actually tell people if you don't need the real estate
license, you might not want to go there because you're a really easy target if
you make a lot of money and they know you have your real estate license. So,
just something to think about and I'm going to give you another secret next, too.
So, here is the final and secret thing that you need to know if you're deciding
"Should I get that real estate license for flipping or if I shouldn't?" Here is
the question that I'm going to ask you and then you gotta ask yourself. Do you want
to be a real estate, agent? Okay? A real estate license is really for a
real estate agent. That's what the license is. It says, real estate
salesperson. So, you sell real estate for a broker. So now, that I've explained
to you what the license is really for and what the training is really for, you
got to start to think about it. Because it's 2 totally different things. Like
being a real estate agent and the training that they give you at real
estate agent school versus real estate investor and what we teach and how we
look at property, they are not the same. Literally, I'm telling you. I have my
license in '06 and had no idea what I was doing and lost everything like a
year or 2 later. So, getting your real estate license does not, (I'm telling you,
this is Noelle, I love you to death) does not make you a good real estate investor.
Real estate agent and the training for real estate agent is totally different.
Real estate investor if you want that education, if you want that path, you
need to invest in the training for that path. So again, which way do you want to
go? Do you want to be showing people houses driving around in your car, sell
them houses? Again, very good money there. I've been a real estate agent. I'm still
licensed as a real estate agent in 2 states, okay? But there's things that go
along with that. Oh, my gosh, have continuing education. I have board fees. I
have broker fees. I pay a lot of money to keep my real estate license. And again,
the training and the job is totally different. And then on this side, real
estate investor, I make a lot more money but it sometimes affects what I can do
having my license. So, you have to have that balance. And so the question that
I'm asking you, don't make the mistake Noelle made. Even though (I get it)
I'm making money now and doing very well. You want to do it the right way. I want
to encourage you to not make the mistakes that I made and do it the
correct way. So, that's the question. Which one do you want to be? Do you want to be
an agent or do you want to be investor? I don't know. Which one do you want to be?
Let me know. Comment below. Do you want to be a real estate agent or do you want to
be an investor? Let me know. I want to see you guys as common. I read all of them. I
reply to them. Let me know. It's a really big decision. This is a an important
video that I got... I made for you guys. I got this question so much
that I need it to answer this for you all. So, comment below. Let's talk about it.
Okay, guys. So, that wraps up this video. I absolutely loved making this video for
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