Do I need a Contractors License to Flip a Property?

Question

Hi Everyone,

I am about to purchase my first home to flip in Fredericksburg, VA. I formed an LLC which I realize isn't necessary (but I was advised to do so) and am purchasing the property through the LLC. This is not my primary job so I will be hiring contractors to complete all parts of the rehab with the exception of painting. I will need a permit for about half of the work being done on this house. I already have quotes in hand from all necessary contractors but a close relative who owns a construction company mentioned I may need a General Contractors license or I may need to hire a GC to oversee the project.

My question is...Since I am purchasing the property through the LLC do I need to:

1. Have a General Contractors License in order to hire the various contractors to do the work?

2. Hire a GC to oversee the project and various contractors

3. I don't need options 1 or 2 and can oversee and hire all contractors myself (legally)

Thanks ahead of time

Patti Robertson · Answer

Not in Virginia.  Here and owner can only pull permits if they are an owner occupant.  Some municipalities have an exemption for an owner who owns a certain number of properties.

Joshua Sedlak · Answer

Thanks everyone!

Abe Scott · Answer

@ Joshua Sedlak there might be county specific restrictions that you need to check for , for instance the building department in my county will allow for " Owner Builder" to pull permits  with out a contractors license , but prohibits sale of  property in 12 months from date of permit. In general they are a little less stringent on the onwer builders permits  than the contractor one.

Matt P. · Answer

@Joshua Sedlak Just call your building department. You don't need to give an address. Way better than asking a bunch of strangers on the internet. You'll know in a 10 minute conversation.

Joshua Sedlak · Answer

Thanks everyone for your responses. I'm hoping someone from Virginia will be able to chime in.

Wayne Brooks · Answer

In Most jurisdictions.....you can pull owner permits IF you bought in your own name AND if it is to be your primary residence for at least one year (some jurisdictions actually place a deed restriction on your house preventing the sale within one year).

Since you will need permits, a 99% chance you need a licensed GC.

Your permitting dept I’d the only valid source to answer this question.

Lien Vuong · Answer

@Jason D. My flipper clients do it for condo conversions as well as single families but I can only speak of the Boston market. I do not have intimate details of other city's regulations.

Jason D. · Answer

@Lien Vuong he bought it in an LLC, so he probably can't pull permits as the owner. Most cities will require a contractor pull them

Lien Vuong · Answer

You can pull the permits as an owner of the property making improvements. Make sure that your project is within what the city deems as a renovation not as a 'reconstruction' which would then require structural engineers etc. and it'll get more complicated.

Jay Hinrichs · Answer

every state is different .. like in Oregon you would need a Developers license..