All Forum Posts by: Account Closed

Welcome to BP @Bryan Potts... many here can empathize with you... 

Wishing you much success!

Here in MD, the law states that anyone performing contracting work on residential structures (i.e., those with four or fewer dwelling units and the interiors of condominiums) must be properly licensed by the MHIC and will have one of two types of licenses: Contractor or Subcontractor.  Maryland does not issue a "General Contractor" license for residential work.  For new construction, one will have a MHBR number, and for existing structures, it'll be a MHIC number.  General Contractor licenses are issued by the counties and are for commercial work.  

Regarding residential work on existing structures, only a licensed Contractor is legally permitted to enter into an agreement with a licensed Subcontractor (save for those who hold trade specific licenses for electrical, plumbing and HVACR).  

That said, those who are commonly thought of as subcontractors (painters, tile-setters, etc.) and want to contract directly with those other than licensed Contractors, then they must have the MHIC Contractors license and not merely the Subcontractor one.  

In short, you may want to verify with the laws that govern the project location to determine what requirements may exist there in so much as with whom you are allowed to contract with.

And regardless of whether your hire a GC or not, every single subcontractor should have liability insurance (and worker's comp or a waiver if allowed).  Additionally, while the project is underway I believe it prudent to carry coverage accordingly (e.g., builder's risk, vacant, etc.).

@Serena He, chances are that the MLS provider sets the terms, conditions, and pricing for those they'll provide access to. That said, the provider that serves our area does allow non-licensed individuals, with stipulations (e.g., an assistant to a licensee).

And as the above poster mentioned, to have a valid and active license here in MD, one must be affiliated formally with a broker.  

While there are free sites that may have the same inventory as the MLS, they are more consumer oriented, and lack the details and tools that you may value as an investor/agent (e.g., closed priced, subsidies, etc.).

@Dan Dunmire- feel free to join a group of us gathering informally where you may be able to get a variety of opinions regarding the market here.  Details are at: https://www.biggerpockets.com/forums/521/topics/275896-frederick-maryland-networking-event

@Jason Daman- it sounds like you might benefit from finding a reputable real estate agent to help you vet places and landlords.  That said, the town/city/county/state where potential properties are located should be able to provide you some insight as to what are some basic criteria that landlords must provide... check with them too.

Things like being hot or cold is largely subjective, so that's a tough one to address... but down that track, it might be wise to gather information about the historical utility expenses.

As to how much it might leak... it shouldn't.  Period.

At a rudimentary level, trust your gut Jason as to what's appropriate for you.

Welcome to BP neighbor!

Congratulations,  that's awesome!

It is $20K per claimant now, $100K aggregate for any one contractor. Nonetheless, to your point, $20K doesn't buy much in terms of project work in a good chunk of MD.  I find it funny (tongue firmly planted in cheek) that the MHIC's policy on this does little to encourage investors to use licensed contractors...

And in Maryland, if one owns more than three residences or dwelling places, they're not entitled to make a claim against the Guaranty Fund*.  So sadly, many investor/customers have no protection via the GF, but penalties and the right to pursue legal action may remain (and as noted above, the chances of success in action may be improved if hiring a licensed contractor over an unlicensed one).

*Citation:

BUSINESS REGULATION

TITLE 8. HOME IMPROVEMENT

SUBTITLE 4. HOME IMPROVEMENT GUARANTY FUND

Md. BUSINESS REGULATION Code Ann. § 8-405 (2015)

§ 8-405. Claims against Fund

(f) Excluded claimants. --

(2) An owner may make a claim against the Fund only if the owner:

(ii) does not own more than three residences or dwelling places.