Flipping, a real estate investment instrument that buys valuable assets and immediately sells for profit is a very good way to generate positive cash flow. Cash flow is important if you pay the bill and pay the family salary. Flipping has become a big business. Encourage my Protestants to profitably buy and sell without having their goals become investors into the rehabilitation business.
In Oregon state you need to be careful how you keep flipping. If you buy a house and sell it without working it you will not be in line with the Board of Directors of the State Construction Contractor (CCB). But be careful. If you think you can buy a house if you have a general contractor license or developer license, you can remodel it and sell it. In other words, it is regulated by state. The aim is to provide some degree of protection to consumers.
CCB's declared mission is:
The Construction Contractor Committee keeps public concern about real estate improvement. The Board regulates construction contractors and promotes a competitive business environment through education, contractor license, dispute resolution and law enforcement.
With a general contract license you can do it yourself at the house you plan to purchase, repair, and sell. With developer licenses, you can buy and hire contractors to rehabilitate.
Who needs to acquire a license?
According to CCB:
Under the law of Oregon State, we need a person who licenses compensation to the Oregon Construction Contractor Committee (CCB) for compensation of construction activities including improvement of real estate. This includes, but is not limited to, roofing, siding, painting, woodworking, concrete, field appliance repair, heating and air conditioning, home inspection, wood service, plumbing, electricity, floor covering, Other construction and repair services are included.
A CCB license is also required in the following cases:
* Person who buys a house with the intention to fix it and resell it even if they do not work themselves.
* Material supplier receiving compensation for installation or installation of material.
It is not difficult to meet the contractor or developer licensing requirements. You simply cost about $ 200, but you can learn about OSHA, the mortgage law, and so on. For carpenters and other methods it is rare. Then add $ 50 to 100 dollars. Testing is designed to allow states to collect fees as well as most state tests. You can go through it. When I first got approved, what I needed was bonds and liability insurance that was about $ 125 if I remember correctly, the state license was $ 50. I was a contractor.
The difficult part of the process is to secure responsibility insurance that you can afford. Bob Gorham (541-382-4211) of my insurance broker, Bend's Century Insurance, has done a good job for me in the past. The insurance part of the equation is severe, but you must acquire it to comply with state regulations.
Do not you need to have a license to work at home?
According to the Construction Contractor Committee Bulletin July issue, the answer to that question is:
1. Person who works at home
2. Provide supplies, fixtures or supplies, and those who do not receive allowance shall install or maintain them.
3. Owner who arranges work to be done by authorized contractor. However, this exemption does not apply to those pursuing independent projects, those who do the work itself or agree with the intention of providing a structure for sale before, after, or after completion. It is considered as the main evidence that if the owner did not occupy the structure after completion it was intended to provide a structure for sale.
4. A person who does the work of property possessed even if he does not live there. Also, the owner's employees can do the work.
5. Real estate licensee handling the mechanism managed by real estate licensee under contract.
For details of licensing, you can call CCB at 503-378-4621. Their web address is http://www.oregon.gov/ccb.
