1) Becoming a licensed real estate agent provides benefits to house flippers like saving on closing costs and gaining early access to property listings. 2) To become an agent, one must complete pre-licensing education that varies by state, typically taking a few months. 3) Candidates then take a state exam, passing rates range from 44-61%, before applying for an actual license.

1. What are
the
Benefits
to
Becoming
a
Licensed
Agent?

2. Flipping houses has gotten
increasingly more difficult as the
market changes. One certain way to
accelerate the success of your
properties is to become a licensed
real estate agent.

3. Being a real estate agent gives you
extra benefits. How can you become
a licensed real estate agent and how
does it benefit your flipping
business?

4. Benefits of
the License

5. Saving
costs:

6. When you are capable of managing
your sales and contracts, you save
money on closing costs. You will join
a network of fellow real estate
agents who have buyers looking for
homes in your area, which also adds
to your insider knowledge.

7. Housing
search:

8. Ever feel like there are people who
must know about houses going
immediately on the market? Why do
they get to withhold this
information? As a licensed real
estate agent, you receive alerts as
new homes come fresh on the
market.

9. You then can access local multiple
listing service. Plus, as a licensed
agent you can develop a network
with other agents who could reach
out to you when they have potential
homes coming onto the market.

10. Education:

11. You will be more skilled in evaluating
houses and judging investments on
renovations and improvements. An
adequate education will keep you ahead in
comparable sales in your market. As an
agent, you’ll also be required to complete
continuing education, which will add value
to your business.

12. Ok, I want to get
licensed. How do I do
it?

13. Getting a real estate
license involves three
steps:

14. Pre-license
Education:

15. Requirements vary state to state.
Before you can take the licensing
exam, most states provide online or
textbook resources. Most courses be
completed in a few months.
California requires 135 credit hours
but Texas requires 180 hours and
Florida only 63.

16. Topics covered include listing and
selling property,escrow procedures,
property valuation, the law of
agency, counseling buyers, and more.
Basic math education is included,
such as calculating commissions,
price per square foot, real estate
taxes, etc.

17. Licenses normally are good for two to
four years and continuing education
is required before renewal, with
hours varying by state.

18. License
Exam:

19. Once you’ve completed the education
requirements, you are eligible to take
the state licensing exam. Exam times
vary from 1.5 to 3.5 hours, again
depending upon the state. Most
require you to correctly answer 70%
to 75% of the questions correctly.

20. If you’ve been involved in the real
estate business for a while, you’ve
probably heard horror stories about
the exams. Most include 100-150
multiple choice questions on national
and state real estate laws and
practices.

21. Passage rates are relatively low
(California 54%, Florida 44% and
Texas 61%), but a motivated learner
who has taken the course work
seriously and complete the practice
tests has a pretty good chance of
passing.

22. It’s a good idea to take the test as
quickly as you can after finishing the
course work so the material remains
fresh in your mind.

23. Submit your
license
application:

24. After you’ve completed the exam, you
submit your results to the state licensing
board, along with any applicable fees and
other requirements (some state require
finger prints, proof of residency, proof
right to work, etc.). You likely will need to
be affiliated with a local real estate broker.
With a few years of experience, you can
apply for your own broker license.

25. Once you have your license, you can
check for reciprocity agreements
with other states (i.e., Florida has one
with Georgia), or states make it
easier to get a license if you have a
valid license in another state.

26. The total cost of obtaining your
license will vary by state, but
generally can be completed for $400
to $1,000. This is a smart investment
now that you can earn it back with
fees you save on just one one house
sale, not to mention the savings you
might get through early access to
properties.

27. As you continue flipping houses,
contact Center Street Lending at
anytime to learn more about
financing your purchases or
remodeling costs. Follow us on
Twitter!