if your company buys an investment property, can you gut the inside and do everything on your own, without getting permits or licensed people to do the work for plumbing and simple electric?
obviously, it’s better to have a seperate company that you own, do the work with a partner who is licensed. but again, we don’t live in a perfect world.
pre-auction foreclosures (HUD) - now specifically, what is the deal with these? As an investor, you can’t buy them unless…?
You can!! Is it legal uhhhhhh NO get permits on everything. You can pull a home owners permit fairly cheap! At least here in Colorado.
The thing to keep in mind is WHEN (Not if) you get caught they will either
A. Make it hare on you to pass the inspection on the property. And they will inspect it.
B. Make you rip it all out and start fresh after you get the permit.
So I guess your next question would be how do you know?
The answer to that is Please Don’t ask!! Because it cost me a bunch of money!
here on long island, if you own it, you do not need any licenses or permits to do any work within the house. if you add anything - then yes, you need permits, inspections, the whole nine…i think ;D
T,
The answer is, it depends. It depends on exactly what you are doing and exactly how it is going to be done, and how much it’s going to cost.
It also depends on what county the property is in, as permits/inspections is a county run thing and could vary greatly between counties.
What exactly do you mean by “gutting?” Are we talking about a complete tear-out, or are we just tearing out sheetrock? What type of plumbing exactly and what exactly is “simple” electric?
Raj
we’re talking new sheetrock where needed, windows (if needed), new sink in kitchen, appliances maybe, rugs, doors, a new vanity in the bathroom, paint, landscape.
anything that has to be done further than this in terms of plumbing or electric- we’ll get a licensed contractor in the state of NC. however, if we’re talking a new outlet or two or a light fixture - we’ll do this.
that’s it. if LLC purchases - they can’t be HUD foreclosures correct?
does LLC need to have the above work all inspected and or need permits? i’m asking, but i think i know the answer to this question.
From what you’ve posted, no, you would not have to have permits to do, as long as the total rehab dollar amount is less than $30K or so (again, verify with the county).
depending on the extent of plumbing/electric a handyman can do that as well, though it is limited if you want to follow the laws of the land.
If you pull a permit, then the county will inspect the property.
I think that it would be prudent for you, or an associate, to inspect any and all work performed, especially if it’s an out of state purchase.
Raj
If the job is over a certain limit, which is I believe based on the local ordinance, you should pull a permit. If it is under $30K you do not need a general contractor (state issued) license, but you still may need a permit. If you’re going to do the work right, or have your contractor do the work right, then the inspectors can be your friends as they’ll help make sure its right. If you’re going to half way it then you could skip the permit but you take your chances as you’ll be violating the local ordinances. We pull the permit for major rehabs.
If its work that requires a license such as electrical, mechanical (HVAC), or plumbing, then anything other than very basic you should get the subcontractor that is properly licensed to pull their permit. Minor fixup we usually don’t bother but new service, major work, etc. I would recommend getting the sub to pull the permit.
If the deal doesn’t have enough in it to justify the permit and using licensed subs for the three tasks noted then consider saying “next”.
If you try to bypass the inspectors and you get caught they can go from being your best friend to your worst enemy. They’re there for a good reason and as I’ve seen so much shoddy workmanship I have come to respect what they do and they are one of our best allies.