We’ve discussed this before ( I think I am going to adopt the phrase “home rehabber” instead of flipper to my personal activities) but if you are considering getting into the rehabber/flipping business in Oregon, you’re going to have to be a licensed contractor. For the purposes of our home rehabbing, I am the managing member of Sapphire Development LLC (CCB #176425).
Who Needs To Be Licensed
Oregon law requires anyone who works for compensation in any construction activity involving improvements to real property to be licensed with the Oregon Construction Contractors Board (CCB). This includes roofing, siding, painting, carpentry, concrete, on-site appliance repair, heating and air conditioning, home inspections, tree service, plumbing, electrical, floor covering, manufactured dwelling installations, land development and most other construction and repair services.
A CCB license is also required for:
- those who purchase homes with the intent to fix them up and resell them, even if they do not perform the work themselves.
- material suppliers that receive compensation for installing or arranging the installation of the materials.
The cost of being legal is so much higher than floating under the radar and hoping nothing goes wrong or you get caught. With Sapphire Development as the deeded property owner everything is more expensive. The property insurance is more than double what I would expect to pay if the deed were in my personal name. Sapphire has a construction loan which cost 2% in points. It’s a whole different world. This is the first time that I have been involved in a construction loan as we bought our last house on contract.