Is This Legal?

I want to buy five duplex lots I found for sale in my town. I want to have a contractor build duplexes for me and I sell them finished to investors. Can I do that without A RE license or a contractors license of my own?

How would it actually work? The process of the contracts financing etc.?

Comments(8)

  • cjmazur6th June, 2004

    As for purchasing, do you have enough resources to buy them all at would or can you phase the purchases.

    Do the finances make sense? does the land + permits + architecture + building costs+ misc enable a sufficient profit margin

    If you build them 1 at a time, construction financing could be easier to obtain. (basically calling them OO).

    Make sure there aren't any restrcition on building (zoning changed, slow growth initiative, etc)

    basicall the process:

    buy land
    get design work
    Plan approval (maybe multiple interations)
    get GC to bid plans
    get permits
    get construction financing
    build
    sell

    If you do more than 1 lot at a time, you can do some pipelining so same time and money

  • Ricker6th June, 2004

    Thanks for reply.

    It is zoned now and there are two being built there now by a friend of mine. He has GC who builds for cost plus ten percent.

    My main concern was is it legal to build and sell without licenses? But using a licensed GC?

  • cjmazur6th June, 2004

    Your not building the GC is

    You might want to check if duplexs need a special license to sell.

  • active_re_investor6th June, 2004

    You are not building, the GC is building. Assuming he builds to spec and has the needed permits then you are fine.

    You are allowed to sell property that you own without a license.

    You can even offer financing on the units you sell without a mortgage license.

    John
    [addsig]

  • rajwarrior6th June, 2004

    If you have a general contractor hired to build, pull permits, etc. it's perfectly legal. That's how homes are built.

    If you are the owner of the property,then you can market and sell them without having a re agent license.

    Roger

  • Ricker6th June, 2004

    Raj, I realize that is how homes are built. I just wasn't sure if I was limited to like say one a year or two etc. Like cars.

    If I own 10 cars I can only sell like 3 a year (I think it is) in FL without a dealers license. [ Edited by Ricker on Date 06/06/2004 ]

  • commercialking6th June, 2004

    You would need to check Florida law, of course, but as a general rule most places you can even be the GC without a license on houses you own yourself. And you do not need a RE license to deal in land as a principal.

  • InActive_Account6th June, 2004

    There are no laws preventing you from selling your own property(s). Some states put a limitation on how many (of your own) propeties you sell each year with out getting a real estate license. I don't think (but be sure to check) Florida is one of those state.

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