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All Forum Posts by: Nicholas LaGatta

Nicholas LaGatta has started 28 posts and replied 211 times.

Post: Atlanta Exception to Contractor Licensing Requirements

Nicholas LaGattaPosted
  • Real Estate Agent
  • Atlanta, GA
  • Posts 226
  • Votes 143
Originally posted by @Alex S.:

I could be wrong, but from my experience this will not work, If you are selling or renting the property. I know of a homeowner that pulled their permit as a contractor to rebuild their home, but this was for  their primary residence. They had to sign something saying  they were not going to sell within a certain time period, (I believe it was two years). It seems as if you only can be your own contractor if you are not doing it for profit. I just completed and sold a rehab on Beecher St in historic west end, I was my own contractor, but I do have license. 

Thanks for the response Alex.  I'm still trying to wrap my head around this, so I appreciate the input.  I pulled a permit as a homeowner in the past, but I don't specifically remember guaranteeing I wouldn't sell in a certain time period, although I have heard the requirement referenced.  

It also might not be a meaningful distinction, but my business is focused on buy and hold, rather than flipping, so I don't have plans to sell any of these projects in the next several years, although I likely won't personally occupy them.  

@Alex S. --- I've also explored getting my GC license, but the biggest unknown is what the board will accept for the experience requirements.  I believe I more than meet the practical needs for equivalent education/experience, but it would seem like a huge step backwards if I need to quit my day job and scale down the growth of my real estate investment business in order to go work an entry level position for a GC for 2 years.  Do you have any perspective on how flexible the GC board is on the experience requirements?  

Post: Atlanta Exception to Contractor Licensing Requirements

Nicholas LaGattaPosted
  • Real Estate Agent
  • Atlanta, GA
  • Posts 226
  • Votes 143
Originally posted by @Jay Ragland:

@Nicholas LaGatta this method will not work my friend you will need a full building permit either as an owner or through a contractor.

I'm curious why this won't work in your experience.  The municipal code exception I'm researching is the same exception as the homeowner affidavit.  

Post: What are the top places to invest for long term appreciation

Nicholas LaGattaPosted
  • Real Estate Agent
  • Atlanta, GA
  • Posts 226
  • Votes 143

Adair Park, Capitol View, and Sylvan Hills if appreciation is your strategy --- still relatively affordable with good deals, with a high likelihood of a strong equity growth in the next 3-5 years.  Cash flow will be tight, especially on the higher end, but with depreciation expense and principle pay down, you should be able to make the numbers work.  

Agree?  Disagree?  

Post: Atlanta Exception to Contractor Licensing Requirements

Nicholas LaGattaPosted
  • Real Estate Agent
  • Atlanta, GA
  • Posts 226
  • Votes 143

I closed the deal, but still trying to work out the rehab details.  My latest thinking is that I can pull permits as a specialty contractor as long as the job is less than $10k.  My full project won't be less than $10k, but I figure if I let electric, plumbing, and HVAC handle their own permits, I can apply for multiple separate permits under the $10k limit to cover paint, windows, carpentry repairs, kitchens, bathrooms, floors, etc.

I'm still not sure if this will work and I probably won't know until I tip my hand to the permit office and get on their radar, so I want to make sure I know the law, cryptic as it might be.  

Below is the relevant code.  I'm still very much open to recommendations.

Georgia Code Title 43, Professions and Businesses § 43-41-17:

(f) Nothing in this chapter shall preclude a specialty contractor from offering or contracting to perform or undertaking or performing for an owner limited, specialty, or specific trade contractor work. However, nothing in this chapter shall permit a specialty contractor to perform work falling within the licensing requirements of Chapter 14 of this title where such specialty contractor is not duly licensed under such chapter to perform such work. The board shall by rule or policy by January 1, 2008, identify specialty contractors or other criteria to determine eligibility under the exemption of this subsection. The specialty contractor otherwise exempted from license requirements under this chapter may perform work for an owner that would otherwise require a license under this chapter where the total scope of the work to be performed is predominantly of the type for which such specialty contractor is duly recognized as exempt under this subsection by the board, provided that such other work involved is incidental to and an integral part of the exempt work performed by the specialty contractor and does not exceed the greater of $10,000.00 or 25 percent of the total value at the time of contracting of the work to be performed.

Post: Is there such a thing as too many investor in an area

Nicholas LaGattaPosted
  • Real Estate Agent
  • Atlanta, GA
  • Posts 226
  • Votes 143

Hi, Kevin.  I'm bumping your post because I like the line of thinking and want to see what others think.  

What source did you pull your stats from?  I want to better understand the macro-trends in my areas.  

Post: Atlanta Exception to Contractor Licensing Requirements

Nicholas LaGattaPosted
  • Real Estate Agent
  • Atlanta, GA
  • Posts 226
  • Votes 143

It seems legitimate that specialty contractors are exempt from permitting requirements, similar to a homeowner: http://sos.ga.gov/admin/files/Traditional.pdf.  

I'm seeing the "AFFIDAVIT CONCERNING EXCEPTION TO CONTRACTOR LICENSING REQUIREMENTS" here: https://www.atlantaga.gov/home/showdocument?id=332....  

A building permit application (https://www.atlantaga.gov/home/showdocument?id=243...) contains a section for contractor information with a TBD option.  The work I plan to do is clearly exempt under: Georgia Code Title 43. Professions and Businesses § 43-41-17.  

Given that I will do the exempt work myself and sub-contract to a plumber, electricians, HVAC guys, etc., will I need to apply for a permit only covering the work I plan to do and ask the utility trades to pull their own permits?  

Post: Atlanta Exception to Contractor Licensing Requirements

Nicholas LaGattaPosted
  • Real Estate Agent
  • Atlanta, GA
  • Posts 226
  • Votes 143

This is a great recommendation I had never come across.  I have been doing some research on it, but it doesn't seem possible to apply for the license online.  I'll have to call the Secretary of State and the Office of Buildings to see if it's feasible.

Has anyone else successfully done this?

Post: Atlanta Exception to Contractor Licensing Requirements

Nicholas LaGattaPosted
  • Real Estate Agent
  • Atlanta, GA
  • Posts 226
  • Votes 143

Hi BP Team,

I'm under contract on another property in a historic district in Atlanta on a busy road.  This is a complete and major rehab, so I've got an architect that I know can get plans and a certificate of appropriateness with no problem.  I'm used to doing my own contracting as well as much of the less-critical work (kitchens, baths, paint, floors, carpentry, landscaping, repairs) but nothing really impacting health/safety (no major structural, plumbing, electrical, HVAC, roofing, etc.), mostly because it's so hard to find reliable, affordable help.  

Last fall, I was able to pull a general repair permit for a nearby livable property in the same neighborhood with the Affidavit Concerning Exception to Contractor Licensing Requirements by moving into the property and changing the address on my license.  Ideally, I'd like to do my own contracting again to save substantially on costs and avoid being reliant on a GC.  The new property won't be ready to move into until after the job is done.  

Is it possible to use the contractor licensing exemption for a property I plan to occupy only once it's completed?  Is there any issue with the fact that I used the same exemption for another project within a year?  Is there any other way to do my own contracting while still being in compliance?  

Post: Unpermitted Addition, Stop Work Order, Bad Idea?

Nicholas LaGattaPosted
  • Real Estate Agent
  • Atlanta, GA
  • Posts 226
  • Votes 143

I am interested in buying a property in a historic district, shut down for not having permits.  They put a 1000 square foot additional in the back, which appears to be quality work to code, but there are a few minor issues to correct to comply with historic regulations.  

I could have great economics with this deal, even if I paid a contractor to do the job correctly start to finish and straighten things out with the city.  

What are the risks involved?  If everything is to code, I hope it's just a matter of paying any fines and starting the paperwork from scratch.

Post: Selling a Rental Wait List Spot

Nicholas LaGattaPosted
  • Real Estate Agent
  • Atlanta, GA
  • Posts 226
  • Votes 143

If it's not specifically address by your HOA's CCRs, then it's probably at the discretion of the board to allow it or more than likely a vote would be required to approve the provision. There are many scenarios and potential disputes that could come out of that situation, so it would realistically take an attorney to draft the change.

I would tread lightly. As a former HOA president and a former member of 2 contentious HOAs (especially in the area of rental caps), I would advise you to rent the next unit that comes available and use it for yourself and then rent out your unit. It's probably going to be less effort than trying to convince a super majority to change the rules and hire an attorney to that effect.