2006-09-04 11:20:13 · 12 answers · asked by Darrius A 1 in Business & Finance ➔ Renting & Real Estate
First off, I must disclose that I am a real estate agent in Kansas City, Missouri. There are no permits or licensing that you need to be able to buy and sell real estate. Anyone with the cash or ability to obtain financing can buy and sell real estate--now you must decide if you would like to find a reputable real estate agent to work with, or you would like to get your real estate license to have the inside view. There are pros and cons to both sides with more people choosing not to get their license because of the hassle, upkeep, and legal liability.
As far as remodeling projects are concerned, and the project you are working on, you may need some type of building permit. For that, check with a local real estate agent, attorney, or go to the county court house or library to find out what permits you may need for your current project in that area.
And, for my final advice, I would get a good CPA that can help you with financing and tax questions you may have--as they can be endless with tons of tax incentives for rehabbing homes and neighborhoods.
For referrals for real estate agents that specialize in investment properties, contact me at Dave@TheDaveJacksonTeam.com.
Good Luck in finding your answers.
2006-09-12 09:19:00 · answer #1 · answered by David J 1 · 0⤊ 0⤋
Initiative and a plan would be a good start. However, nothing is required to start a rehabbing business. At some point, you may want to set up a legal entity (LLC, LP, S Corp, etc.), but those things are not required, just recommended.
Licensing and permit requirements will depend on what type of work you are doing and the rules in that municipality. A good contractor will know what permits are needed, and chances are, if you don't have them, you'll find out when an inspector comes knocking...
2006-09-04 11:41:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you are just starting out and purchasing residential properties, you don't need anything. You would just purchase the house like any other person, remodel, and flip it. If you are looking to do commercial properties or more than 6 residential properties at once, then you would might need to establish a business in order to secure commercial financing.
2006-09-04 11:37:44 · answer #3 · answered by dlapasky 2 · 0⤊ 0⤋
Acquire what you can and learn from your mistakes as you go. Hold on to property as long as you can. It's not for everyone. Don't work with unlicensed contractors. It will usually cost more redoing what a jack of all trades makes you think he knows. You do have to shop tho. It is also helpful to have a tax preparer who understands real estate, and an agent working for YOU.
2006-09-11 23:29:54 · answer #4 · answered by Barbwired 7 · 0⤊ 0⤋
You are getting half good answers. If you want to buy and flip properties, you dont need a if you are doing some of the work yourself, but you may need permits from the local govt. If yoy are hiring subcontractors - be sure they are licensed and insured. You can sell that property yourself no realtor license needed. Good luck!
2006-09-04 11:48:29 · answer #5 · answered by hirebookkeeper 6 · 0⤊ 0⤋
Would you consider delaying your plan? Professional investors are careful in choosing each investment that would be near or immediately cash flow positive. With overpriced housing market, that is not possbile.
For example, it costs $500,000 to $550,000 to buy a two bedroom units in Sunnyvale California. Mortgage monthly payment with nothing down is $3500 to $4000 a month with 7% APR. The rent one can collect from such unit would be $2000 a month. Therefore, for each unit you buy, you would lose $1500 a month.
* We assume tax benefits would cancel out with tax and maintenance fee. Please consult your CPA.
**If you have large down payement, the rate may be lowered.
2006-09-04 18:45:09 · answer #6 · answered by Price is what you pay for value. 3 · 0⤊ 0⤋
To buy you need good credit and money, to remodel permit and experience, and to sell a license and education to know how or good credit, title of your first home, remodel, and the education to know how!
2006-09-04 11:43:27 · answer #7 · answered by no.#1 Mom 4 · 0⤊ 0⤋
buying real estate at what seems to be the top of the market seems to be a great way to lose money, time and effort. where were you 5 years ago?
2006-09-12 02:25:20 · answer #8 · answered by Sam 3 · 0⤊ 0⤋
nothing, just keep both eyes open and I would go to investor meetings and learn as much about the process before you get in, there are so many first time investors, but not many that buy twice, (there are costly lessons out there, be ready to handle the unexpected) if you do it right you will make a killing
2006-09-10 10:28:47 · answer #9 · answered by TriDad 2 · 0⤊ 0⤋
You need a good eye in looking for opportunities. research research research.
2006-09-08 10:12:34 · answer #10 · answered by Islempress 1 · 0⤊ 0⤋