All Forum Posts by: Laura R.

Hi Chris,

The locality where I am interested in doing business is similar to yours, you can pull your own permits, and they really don't seem too strict overall. 

The statute I am referring to is according to the state regulations. The lady at the state quoted me the exact passage from the statute. Although I do not quite remember the wording, it is something like: If you are purchasing a property for a person other than yourself to live in ( this applies to flipping as well as landlords), and you are supervising the work being done, whether or not you are having work done by a GC, then you are acting in a role of GC and/or supervising or managing a project, and this requires YOU to hold a license.  There were a few exceptions she listed. For ex, workers for Habitat for Humanity and when purchasing a property for a direct family member, you are allowed to work on the home or manage work without a contractor's license even though you personally will not be living there; otherwise, the owner/investor needs a license. 

I have called them more than once to get different people just in case the person on the phone was not fully informed, but have received the same answer each time.

My realtor, who works primarily with investors, and real estate attorney where not aware of this, so I suspect it is little known or enforced, but I would truly like to know whether this is the law.  

Hi All, 

I was just reading the "flipping in Washington" post regarding the requirement that the owner of a property intending to fix and flip must have a GC license. I have recently become aware that this is also the law in Virginia. I have contacted the licensing board 3 times as well as my local building code office, and each time I have been informed that you the owner, regardless of whether you are hiring a GC, MUST have a contractor's license. 

I subsequently called a real estate attorney, who didn't seem to know anything about this rule. I again called the licensing board and specifically asked if the owner/investor needed a contractor's license if all of the work was being done by permit with licensed contractors as well as managed by a contractor, and the board was very clear that the OWNER/INVESTOR needs a contractor's license. 

My husband is sitting for the class A license next week, so I don't expect this to be an issue for us, but being a stickler for details, I was wondering if any of you are familiar with this being the law in Virginia? Have you consulted an attorney and gotten a clear answer, as my attorney "is checking into it further" ...... 

Hi Rebecca, 

Take this time while you are looking to set up a spread sheet with some hard numbers so you know all of the actual costs, including insurance, water, elec, etc. Go to Home Depot and Lowes (or on line) and price up all the basic items. You may find them cheaper elsehwere, but if you are in the middle of a rehab and need something quickly, chances are you will be at one of those 2 stores to pick up the item. 

Always estimate on the high side for each of your projects, both in time and dollars.

Most flippers allow an approx a 10% contingency, but for the first flip, I think 15% is a better idea. 

Make sure your comps are solid and be sure to check the days on market for each comp. 

If you and your husband run the numbers for the repairs, know the comps, and allow for a good contingency and your numbers all still work, your husband should go into the deal feeling much more comfortable. 

It took us multiple offers to find that first deal, so we had a lot of practice running all of these numbers, etc. When that first deal finally came through and it all checked out, we felt the number were solid and were more excited than nervous.

Hi Rebecca! I am also in the Richmond area. I would definitely suggest setting up a HELOC if that is how you intent to finance your properties up front. If you are making an all cash offer, the seller (bank on a repo) will want to see the proof of funds available, not just that your home has the equity.

What we have found in the Richmond market is that, if it is a good deal, there might be 11-15 offers. You will defintely have to come in with cash in those instances to compete, so having that line available will be to your advantage in making your bid viable. 

Thanks for the quick response. This property has been on the market 1 day. It is a vacant property listed through MLS, owned by the VA. It has a few issues, but nothing too major. I am guessing, given the the other multiple offers, that is the take of the others as well. This home is also in a great area with good schools. I didn't mention the other comps both closed in May, so they are a very recent reflection of the value.

Mainly I am unsure where my offer should fall. My thought is that I will need to go above asking, but obviously I want to keep it as low as possible. Is 72,000 enough , 75,000 or closer to 80,000? Just wanted to get sort of a gut sense from other more seasoned investors what they would do.

Hi All,

I have found a VA foreclosure in my area that is a great deal. It is a 1000 sf 3/1 with a 1 car detached garage listed for $69,900. The other comps are both 1000 sf, 3/1, and one is the exact same model home. That one is on the same street and sold for 134,000 and the other one is on the street behind this one, a slightly different config, and sold for 130,000. They also have 1 car detached garages. From the pics, they were clean and well kept, but not particularly updated.

There are multiple offers on this property, which will all be submitted on Tuesday. By our calculations, we can go as high as 81,000 (all cash) and still come out in the 20,000+ range in profit. I have never bid on a VA foreclosure nor gone up against a multiple bid situation. My questions are 1) what would you (other seasoned investors) bid in this situation, and 2) is there anything in particular about a VA offer that will get you noticed above another offer, or is it typically just the highest bidder that wins? THANKS!

Thanks everyone! As I mentioned, we are about to do our first flip. When sitting down and looking at the spreadsheets on the houses we are interested in, we were surprised at just how fast all of the little things added up!

I have plenty of room to store things, so that is not really an issue.

It was my thought to stock up on some of the more commonly used items when I find them on a major markdown, items similar to those general things mentioned above, hardware, ceiling fans, brushed nickel or oil rubbed bronze bathroom fixtures in a set, lighting fixtures, etc.

From the houses we have seen, these items would almost certainly be used pretty quickly. I have seen some "get rid of it" prices and thought I would just buy them out on some of these things.

It has been my experience when doing major projects at my own home, if I pass on a really great bargain when I see it, I pay the price later when I am actually at the point when I need that item, so was wondering if anyone grabbed these when they saw them.

It looks like most of you buy as needed, so I will just use my best judgement when I see something. If I know it is a real steal, I will go ahead and grab it, but not worry too much about amassing a stockpile of things.

I tend to be overly organized, so thought having some things handy and certain styles ahead of time might direct some of the choices during the rehab.

Have read up on most of the posts here, but will also check out the pod casts - thanks for the tip!

HI All, I am new here but have been lurking for quite a while. My husband and I have narrowed down our property search and are almost ready to make an offer on our first property to flip. I do have a question though about construction and finish materials.

I am very good at sniffing out bargains. What I have almost always found to be the case with a great bargain is, if you don't grab the item at the time, it will not be there long and you will not see that deal again.

Do you guys just buy random items because they are a great deal and set them aside for some future job? Can you deduct that expense if it is not specifically bought for a property you already own?