The ability to fix and flip properties in a hot real estate market like Colorado can be a lucrative and rewarding way to make a living. However, it’s also become a very competitive market, so you need every edge you can get to stay ahead of the pack and earn the money you need or want to live comfortably.
Getting your real estate license can be the edge you need to get ahead of the competition in Colorado. Here’s how your real estate license can help you make more money fixing and flipping properties.
Listings of properties for sale go up on the multiple listings service (MLS), which is only available to licensed real estate agents. If you don’t have your license, you will have to wait for someone to tell you about a listing or come across it naturally when cruising around neighborhoods that you think have potential.
Another benefit of MLS listings is that they have to meet specific criteria. If you don’t have an appetite for risky properties, checking the MLS listings can show you investment opportunities that are still in reasonable shape.
However, the best way to hear about some truly great opportunities is by word of mouth. Fortunately, real estate agents are experts at networking. There are many events for real estate agents only, so getting your real estate license is the only way to be in the room when some of these potential properties get mentioned.
As you build up your network, people will understand what types of properties you’re interested in and mention them to you whenever they come across them. This can help you fill your deal pipeline with properties that you know how to handle and sell.
But networking isn’t just about people giving you opportunities. Reciprocity is the name of the game if you want to build a strong personal network, so you will need to pass on opportunities to your fellow agents. This lets you get value from opportunities that you wouldn’t otherwise want to handle.
Plus, when you pass on these deals, you will get a referral fee, a nice way to turn opportunities into profit, even if they’re not the opportunities you were looking for.
When you’re buying, this commission will save you money on the property, which can lower the costs associated with the fix and flip. Then when you sell the property, you can earn another commission, increasing the money you make on the sale.
On the other hand, being your own agent can give you a little more bargaining power if you’re prepared to forego the additional commission income when you buy a property. This is an easy way to sweeten the pot for a seller and ensure you land the property you want to fix and flip. Sometimes this ability can make a big difference in how attractive an offer appears to a seller.
Fix and flip cycles can be very profitable, but they can also come with risks. Many of the biggest risks can stem from misunderstandings about real estate law. Not knowing the law can cause you to run afoul of it in a sale, which can lead to expensive consequences in the form of lawsuits and contract cancellations.
Ignorance doesn’t protect you from the law: knowledge does. As part of your real estate licensing process, you will learn more about real estate law so you can understand which potential real estate mistakes will get you in big trouble and how to avoid them.
Networking is one of the key skills of real estate agents. In addition to sales opportunities, one of the biggest things agents pass around are references for vendors and contractors who do great work cheaply and quickly.
The profitability of each fix and flip cycle depends on being able to get the property ready for sale as quickly and efficiently as possible. Getting better deals with vendors can save you money on the supplies you need when you’re doing the work yourself. Having access to affordable contractors who can take care of the things you can’t do yourself can make an even bigger difference. Although you might want to use the same contractors with each property, you can also get references for a backup if your preferred contractor is busy when you need them.
If you are looking for a way to increase your earnings when you fix and flip properties, getting your real estate license can give your bottom line a major boost.
At Colorado Real Estate School, we can help you elevate the success of your fix and flip business. Our online real estate courses are available 24/7 to fit your schedule. All our content is locally made by real estate professionals in Colorado who know the law and know the market. It’s full of engaging instructor-led videos backed by our exclusive VideoConnect Success Learning System™ containing the largest library of video content available. These video lessons create an authentic and engaging classroom atmosphere that will enhance your learning.
Don’t worry if you’ve always had a hard time passing tests. All our online real estate courses are backed by our TruSupport Pass Guarantee™. If you don’t pass the exam on the first try, you’ll be paired with one of our instructors who will analyze your results and help you develop a customized study plan focused on the areas where you struggled on the exam. This process will set you up for success on your second try.
Contact us today to learn more about our online real estate courses.
