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Question

What are the legal requirements in PA on buying, rehabbing and selling distressed properties using investor’s money? I have my own business performing Commercial/Industrial repairs and fabrications. I am registered with the Department of state and have an entity and tax ID number. I would be buying and selling properties through a realtor. Are there any special licenses I would need in regards to the buying and selling and also any requirement regarding the use of investor's money?

Submitted: 36 days and 22 hours ago.
Category: Finance
Value: $18
Status: CLOSED

Accepted Answer

Thanks for the question.

 

This is a great business to get into.

 

You will be pleased to know there are no licenses or certifications required except when a permit is required.

 

If you rehab a house that requires a permit, then you need a home improvement license to pull that permit at the county.

 

Your realtor is the key to everything. Make sure he/she is the very best, not just in selling, but knowing the exact repairs needed before buying, what will sell and at what price, and the legalities that keep everyone out of trouble. Your realtor needs to be uber-serious about this or it will lead to big problems.

 

If you're going to do the work yourself, that will be good. If you're going to hire someone else, make sure that contractor is uber-serious. Don't take the cheap way out. Make sure your contractor is bonded and licensed and be prepared to pay more to get the job done exactly to the realtor's standards because he/she knows what will sell.

 

Furthermre, make sure you have a CPA to organize the corporation to take in investor and distribute investor funds. Do this right. Consult a CPA regardless of what type of entity to start.

 

But, like I've said, it's a good business and you've done the hard part in finding the funds.

 

Regards.

 

 

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Expert: James Heal
Pos. Feedback: 100.0 %
Accepts: 
Answered: 10/17/2009

Financial Advisor

15 years expertise in all ares of personal finance, including credit cards, mortgages, real estate.

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