Who is a house flipper??

Question

Hello BP friends,

I have been flipping homes in Northern NJ for a few years now. Done very quick minor fixes to additions to complete gutt to knock downs.

I am sure other flippers have similar experiences, so my question is are we Developers or Builders?

I dont own the construction company, instead work with two GCs and subcontractors with whom I have developed a nice relationship.

The question is coming as I am planning to set up a Corp and planning to start branding my product, which in this case happens to be a fully rehabbed house.

Some google searches are defining Developers as the one who defines a big area or land into lots , runs the utilities and sewer system. Builder is the one who comes and purchases the individual lot(s) and then builds a house, ok I see myself as the latter guy but I dont own the construction company still can I be called as a Buulder?

Or we are just flippers period!!!

Barry H. · Answer

KUNAL - Bulders and Developers (as you have defined) need special licensure to be granted rights to acquire and develop as you outline.  Your GCs probably have the necessary credentials, but you can start a "Development" group from an ownership model where licensure is not an issue for the owners of the company, just those who are working shovel to dirt (e.g. your Gen Contractor most likely).  Generally speaking, however, a "Developer" is a raw land buyer/builder combo and/or buys and rehabs an entire project (e.g. apartment complex or retail space).