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?
Thanx for any input
I can't answer your questions, but I'm sure you will get some answers to your questions.
Welcome to the Best Real Estate Site on the Net.
It is always nice to see another Ct., resident in the forums.
Click on the "learn tab" at the top of this page, and you could be spending many hours on the Information that is available.
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.
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?
It's in new britain. Right on the newington border.
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.
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.
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.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.