Permits or no permits

General Real Estate Investing
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Permits or no permits

David Avery
Flipper/Rehabber · Phoenix Arizona · Member since 2020 · 1k+ posts · 686 votes

Finding out whether to do permits or not .  As a general contractor I always have the investor, owner, ask me.

Shall we get a permit for this?

I have very mixed feelings after working on a few Flips.  

When the city gets involved it takes at least another 40 % longer and at least cost the owner several thousand of lost time

and interest.

If the property is done within code, and is safe are permits needed?

The electrician, plumber, HVAC /Furnace , and swimming pool are all contractors with every document to show they are

doing what is right.

Lets open up the discussion.

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  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    5y

    I think generally, for upgrades like kitchen/bath they probably aren’t as important....as in to a future buyer. As a roof, addition, enclosure, etc. I’d say yes. 

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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    5y

    I find it a little disturbing that you are a contractor and are asking whether you should get permits. If permits are required, you have to get permits or else you will put the flipper, owner, or future owner in jeopardy, even if they miss it in the present. Of course, there are jobs that could go either way in terms of what the city wants, but we present it and let them sign off on yes or no. It's not "done right" if it needs a permit and is not permitted because you can't sell the property like that in most jurisdictions. If a contractor ever asks me if I want to do it with permits or without, he or she does not get the job. I know why owners ask, but it will be a headache for them later when they go to sell a house with an unpermitted basement bathroom that needs to be ripped out to confirm the electrical and plumbing work behind the walls.

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  • La Nae Duchesneau
    Real Estate Investor · Sarasota, FL · Member since 2013 · 52 posts · 33 votes
    1y

    I have a question for you since you are posting about permits. After hurricane Milton (I live in Florida and we had a direct hit) one of my mobile homes lost part of the roof, lanai and porch. I had a roofer (he works for a roofing company so knows what he is doing) fix the roof, put back the carport and the porch roof. It is actually more sturdy than it has ever been in its life. Permitting came and said I needed a permit. Went to permitting and I mentioned the wrong word, rental. Now I need a general contractor to draw up plans, and I think she then mentioned a specialty contractor, and then the permit which is now $650 instead of $215. What can I do. I hate to tear it all down but neither do I want to pay thousands to get a general contractor?

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  • Jonathan KlemmBusiness Member
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    Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
    1y

    Permits or no permits...

    First of all, good for you @David Avery , for asking the question!

    My simple answer is yes - as a chicago investor or any investor you should pull a permit for something REQUIRES a permit!

    My reasoning is simple: not pulling a permit is an asymmetrical risk, meaning the majority of the time, you won't get caught, but eventually, you will, and it will cost you!  Not just money, but the stress of those situations is ridiculous - I know from experience.

    If the deal doesn't work because of pull permits, it's probably not a good enough deal.  There is a lot of work you can do without pulling any permits here in Chicago like cabinets, tile, flooring, paint, etc.  

    When people have an issue pulling permits, it's usually because they are in between a cosmetic renovation or a full gut - my advice would be to pick one and go all in on that strategy.  

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