All Forum Posts by: Joey Chrisman

I wouldn't sweat it for cosmetic stuff like flooring and painting. Yes, you are supposed to have a license for any work above $1000, but most cities around PHX do not require permits or inspections for cosmetic work anyway and are unlikely to enforce that rule IF you're only doing cosmetic work. Just make sure you know what you're doing. Believe it or not it is possible to screw up painting, flooring, etc. so do the future homeowners a favor and call a pro if you're not 100% confident you know the proper materials and protocols for installation. 

HOWEVER, if you plan on doing anything beyond cosmetic work (structural, mechanical, electrical, etc.), you should be using licensed contractors, especially if you're doing work that requires a permit. This absolutely will be enforced. In most cities, you're required to list a ROC# just to pull the permit.

PS That law isn't ridiculous. It's there for consumer protection. In your case it seems petty because you're just painting one house, but imagine if there was an unlicensed painter running around doing 100+ houses per year, 100's of thousands of dollars worth of revenue, all without proper licensing, liability insurance, backgrounds check, no warranties, etc. See how that could become a problem?

PPS The fact that you're familiar with these laws and asking these questions puts you ahead of 95% of the flippers out there. I just finished a job where 2 of the houses across the street were flips-in-progress. Major plumbing, electrical, and structural modifications with no permits and probably not a single licensed contractor in sight. Absolutely butchered by the looks of it. Keep exercising due diligence and use common sense and you will be fine.

I'm curious why the painter and tile are required to be licensed. I'd love to see the ARS for that. Not that it doesn't exist, but I'd like to read it.

 Does that mean your neighbor can't help you tile on a saturday afternoon?

https://www.azleg.gov/viewdocu...

32-1121. Persons not required to be licensed; penalties; applicability

A. This chapter does not apply to:

10. Employees of the owners of condominiums, townhouses, cooperative units or apartment complexes of four units or less or the owners' management agent or employees of the management agent repairing or maintaining structures owned by them.

11. Any person who engages in the activities regulated by this chapter, as an employee of an exempt property owner or as an employee with wages as the person's sole compensation.

Finding below market deals in Arizona is definitely a challenge. I get wholesalers sending me properties here daily that don't pencil out and wonder who is buying these homes? 

I like to target homeowners in foreclosure with less than 30 days until auction. At this point they're out of options and the big iBuyers can't help, nor can a Realtor. My last two deals (fix and flips) I acquired directly from the homeowner 24 hours prior to the auction.

Your best bet Joey is to source your own deals through marketing, networking, etc. Trying to make a deal with a HML buying paper, short sales, etc. is high-hanging fruit. Good luck!

 Buy the note at a discount.  However I've seen numerous defaulted fix and flip loans, and the lenders are holding out for par.  They are still in disbelief, like many sellers are, that house prices have come down and not willing to budge much.  AZ is non-judicial so the foreclosure cost is relatively quick and inexpensive 

it would be rare that you could talk to the lender once the house is taken back.

The lenders have protocols to follow and once they take it back they will then list it with their Pet REO broker thats the person U want to snuggle up to

A great OREO broker is a great contact.