Real Estate Investor · New Britain, CT · Member since 2014 · 7 posts · 0 votes
Hi everyone,
New member here, with a couple questions.
I have been a licensed home improvement contractor in CT for many years back. I shut down my business a few years back when there were not so many jobs out there that you could make a living off of. Started working for a company that had me traveling all over the country, which was great. Now I'm ready to settle down back in Connecticut as I have a child on the way.
I want to get back into the construction business but this time flipping houses.
I actually have found a property that i will be flipping (just wainting on the closing next week).
Here are my questions: Considering I will be doing most of the work on the house my self.
Do I set up my home improvement business again? Getting a license with the state and of course tax numbers.
If so, do I purchase the property under the company name or myself?
Should I consider a different type of license to apply for?
Real Estate Broker · Orange, CT · Member since 2013 · 951 posts · 218 votes
12y
You might not need a license to work on your own home. But it would be a good idea to put the property in an LLC to limit liability of the project seperate from your personal assets.
Real Estate Agent · Winter haven, FL · Member since 2011 · 572 posts · 336 votes
12y
There would be no need for the extra works. Its your home you can work on it without a license but for liability you may want to enter the property under an LLC or land trust. I grew up in New Britain im curious were is your flip located at?
Property Manager · Pittsburgh, PA · Member since 2012 · 267 posts · 136 votes
12y
If this is a long term venture then create a LLC. If you are just going to do a couple houses and call it quits keep it under your name personally with an umbrella insurance policy.
Real Estate Investor · New Britain, CT · Member since 2014 · 7 posts · 0 votes
12y
Ok so i will create an llc. Do i do it as a construction company? investment company? Real estate company?
I guess thats where i get lost. I see a lot of people flipping and they have investment companies.
Rehabber · North Haven, CT · Member since 2014 · 58 posts · 26 votes
12y
Lukasz Z.
If the main thing your business will be doing is buying, rehabbing, and selling houses, I would create the LLC to do just that.
I enter all contracts to purchase real estate under my LLC, unless I'm dealing with an REO or short sale, in which case I use my personal name and then quit claim it over to my business at the closing.
In regards to getting your HIC license or not, if you own the house under an LLC you will not be able to pull any permits without the HIC license.