We lost our house due to a fire. The insurance company paid the lender. The lender, in return, is sending one third of the balance for the beginning of our new constructions. We have an LLC. Hubby has electrical license, HVAC certified, and plumbing. He has overseen multi-unit rehabs and new construction. Is it legal for the company to send the check to our LLC, the checks, so that we can be our own contractor?
do you have a general contractor license if not i do not think you can have the check sent to you for the re do of your burnt home but you could do the stuff you are license to do
Okay,
How do we get one?
apply for it at your local state office or where ever you get your bussiness lic. at they can tell you what to do for your state
Do you have to go to school, or can you just apply?
i do not know as each state is differant check with your state laws on this
In most cases you do not need a license to do work on your own house. I assume you will have atleast a few other people doing work on your house so “hubby” isn’t working on this forever. It’s just like calling an HVAC tech out of the phone book if your heat pump goes bad (Although you would be sending your husband to home depot for parts).
;D
They said they would write checks to each invidual vender. My thing was the payroll???
danny
what about the other stuff the hubby is not lic in should they not have the lic people in those areas as well ?? As inspectors can be real butt heads about things . As well they as in the bank wants to pay every one out of a central fund kind of just like rehab funds .
I have a question hopefully to receive an answer, i recently have a foreclosure, but not yet reported on my credit, there is a broker who can get me a loan but at 11.50 percent, I have found a motivated seller who is moving and selling there property, and they are interested in my offer, I too have an llc, and am trying to avoid going to the bank, can I purchase this home in the llc, also for tax benefits, and can i apply for a hard money, what would the int rate be for something like this, and is it legal to do, what are the qualifying guidelines, because I’m also getting my business off the groud as well and am needing to seek an hard money lender for short term, I have 2 sellers that I’m working with that are in foreclosures, in Ca and the profit is good. Are there any suggestions
We are not planning to do all of the work ourselves. We would like to do most of it though, with hubby’s crew. We are in a small town where they are much more lenient. If the company writes the check to each individual vendor, then we have to wait for the check to arrive, each time we need something that was not projected. We would also have to pay the guys out of pocket. I wanted to research the cost of builders vs doing it ouselves. The less we spend, the more we get back. The house was on 12 acreas, I was thinking of using the additional funds for a small mobile home park for cash flow.
I want to do this legal and correct…so we are willing get any kind of licenses we will need. We will also contact the county, and find out what kind of permits, etc. we need, before we start. When I get the mortgate company on the phone, I get different answers. They are not local, so I can’t go talk with them. From what I understand, what ever is left over, they will send us a check and we continue to pay the loan.
The initial plan was to take the insurance money and pay off the property, but I know that we can make that money multiply.
Any opinion or advise is much appreciated! 
Hi
I don’t know much about how the insurance company and mortagage company work but you should be able to contract the house yourself. My husband and I contracted our house when we built and we did a lot of the work ourselves. To give you an idea of how much we saved I got a price from a contractor to build the house doing all the work except my husband would do the poured wall basement. The price was $250,000. We contracted it ourselves and only spent about $180,000. That’s a savings of $70,000 dollars plus we have extra upgrades like granite countertops that we wouldn’t have gotten with the contracter.
What we had to do was find a bank who was willing to do a construction loan without a contractor and didn’t want to charge an arm and a leg in fees. so you need to talk to your bank and see if it is ok with them for you to contract it yourself. Then find out what is needed from them to get your next draw. You will probably have to show receipts for what you have spent and get lien releases signed by any contractor who you have paid. This is important for you protection as well because they can place a lien on the home if they say you haven’t paid. As for the work your husband does lets say you spent $3000 on plumbing supplies you just fill out a lien release for that amount and he signs it. You should be able to add in labor for him as well. We didn’t do this since we were trying to save money.
I do have a friend also who had fire damage and the insurance company paid him to do the work, he is a carpenter but not a licensed builder.
Good luck and sorry for your loss.
kelly
Thank you!
I know that they said that they will not write out a check to us, but to either a contractor, or the individual vendors.
The Lien advise was awesome as well as the savings.
Thank you,