Today I had an inspection on a house I am under contract on. When I got to the house the inspector was there already, had peeked around a bit and told me that he would feel guilty charging me for an inspection because the house clearly needed to be gutted and redone. Nothing I didn't already know but then it got interesting. He is also a contractor and flips houses himself. After letting me know about himself a little bit, he informed me that in the state of WASHINGTON you have to have a flipping license. With that, any house you flip you are on the hook for, for 7 years after you sell it. My question is this, who here in Washington has heard of this? Is he blowing smoke or is there something to it? I've never heard of such a thing, and neither had my contractor that met us at the house.
From what I have found on the State Legislature site, you the owner of the property, must be a General Contractor that is Licensed and bonded, in order to flip a house legally. No where did I find a specific "flipping" License though. Maybe @Brandon Turner has some insight on this subject?
Apparently is you do more than $500 worth of improvements you need a licence.
There is another post on this subject.
Yeah, I don't think it's called a Flipping License, just a GC thing. They want you to have a license and bond to flip. When I was flipping a lot, I had mine. Would get it again if I had to. Fairly cheap, if your credit is okay. Couple grand a year, I think!
Off topic but I just saw it came back active. Why haven't you bought that cheap duplex in Aberdeen that you posted about yet?
That's pretty much what it looked like to me too, thanks!
@Bryan R. - I've been clearing slowly out of Aberdeen and trying to buy more in Montesano (smaller town, nicer people) but I'll take a look again :)
There is another Bigger Pockets article about this. You no longer need be licensed as an Owner. You just need to hire a licensed GC.
What do people think about this scenario. I personally buy a house to flip. Can I hire the General Contractor that I am employed with to serve as the the GC of my renovation and still oversee the project myself? Rather than getting my own GC license. Thoughts?
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