Do hard money lenders require a licensed contractor for rehab funding?

[Account Closed]

Hello BP community,

I have an amazing contractor (with a crew) who completely remodeled my home. He's professional, fast, reasonably priced and most importantly, trustworthy. However, he is unlicensed.

I want to use him and him only for my potential rehabs in the near future. I will probably need to use a hard money type of situation when I'm ready, and wondering if most hard money lenders require licensed contractors, or if it's just a matter of finding the right lender? I am able to show the work I've already done with this contractor.

If the answer is "yes" - Does anyone know of any creative ways to get around this?

I am in California btw.

Thanks so much!

[Bill Gulley]

Depends, no not the underware, on the project.

Let's say you do some light landscaping, replace pedestal sinks, paint, polsih, and have new carpet installed, a newbie might swing that.

Next project,gut the cabinets and sheetrock in the kitchen, replace the shower/tub, match a toilet and sink, change interior doors and hardware, open the back kitchen wall for a patio door and build a deck. Absolutely not, not without experience!

Think of it this way, I give you money and my collateral is that house. You go in and TRY to do what you THINK you can, but never did before. Now, how do I know the cabinets will be level, that the doors will close, that the patio door will be plum and square, that the trim fits?????? Not with my collateral you're not! So, besides the permits getting pulled, insurance, time frame to get'r done, I'm not going to allow Ivan the Investor to be swining any hammer in my collateral.

That goes for running the job too and hiring Wine'o Willie from the day labor camp and your supervising.... :) '