If you’re thinking about flipping houses, you might be wondering whether you need a contractors license. The good news? You don’t necessarily need one. A contractors license isn’t necessary to invest in real estate and flip houses—plenty of successful house flippers don’t have one. If you decide you want one, you should know which states prioritize them and what’s required. Regardless of your decision, if you become a HomeVestors franchisee a contractor’s license won’t be required, and you’ll get access to trusted vendors and resources designed to help you find licensed contractors and make your flips easier.

What Are Contractor Licensing Requirements?

Rules about contractor licensing vary from state to state. Some places require a contractor’s license for any renovation work, while others don’t require one at all. The type of work you do and how frequently you do it may also affect the rules.

For example, do you need a license if you’re only working on houses you own? What if the property is under an LLC? The only way to know for sure is to check with your local authorities. You may need a license from the state, county, city, or all three. Here are some examples of how licensing laws differ across the US:

• States like Alaska, Michigan, Nevada, New Mexico, and Utah require a contractor’s license for any renovation work.
• Texas and Maine don’t require general or residential contractor’s licenses.
• Delaware requires licenses for projects over $50,000, while in South Carolina, it’s for any projects over $200.
• Pennsylvania has a home improvement contractor’s license, and some cities issue additional permits. Other states with similar systems include Indiana, Kansas, Kentucky, New York, Ohio, South Dakota, and Vermont.

What Happens If You Don’t Get A Contractor’s License?

If you want to flip houses without getting a contractor’s license, you’ll need to hire contractors that have a license and understand all the regulations in your state. Not knowing the licensing laws in your area could lead to serious problems. If you do renovation work without the required license, you could face fines or even legal trouble. And if you renovate a home without the proper permits, it might be hard to sell. In many states, sellers must disclose unpermitted work, which could scare off potential buyers.

Buyers don’t want to worry about city inspectors, insurance issues, and mortgage problems that can result from unpermitted work. If you can’t sell the property, that defeats the whole purpose of buying a house to renovate and sell.

Should You Still Get A Contractor’s License If It’s Not Required?

If you’re considering flipping houses, a contractor’s license isn’t necessary. What matters most is working with reliable, licensed contractors who can handle permits, follow regulations, and keep your renovations on schedule. While getting a license is an option if you’re highly interested in hands-on renovations, it can be time-consuming and isn’t essential for success. Many successful real estate investors focus on deal-making and project management rather than doing the renovations themselves.

How Do You Get A Contractor’s License?

A contractor’s license allows you to take on renovations with less outside help, but obtaining one requires a significant investment of time and effort. You might need to take college-level courses on topics like building codes, carpentry, and excavation. Even if you don’t plan on doing all that work yourself, you still need to learn about it.

In some places, you’ll also need years of experience in construction before qualifying for a license. If you do get licensed, you’ll need to carry additional insurance to cover potential injuries on the job. Increased liability is another factor to consider when deciding whether to get licensed.

If you choose not to get a license, be careful when hiring contractors. Working with an unlicensed contractor can cause problems with permits, affect work quality, and lead to legal disputes. Cutting corners could hurt your business and cost you more in the long run.

Get The Support You Need From HomeVestors®.

The decision to get a contractor’s license is just one small part of house flipping. When it comes to your real estate investments, having the right support system can make all the difference. That’s where becoming a HomeVestors® franchisee comes in.

As a franchisee, you get access to vendors with special pricing for franchisees. We also provide you with top-notch training, including an intensive one-week course to help you get started. You’ll also have a dedicated Development Agent to provide mentorships as you grow your business.

Here at HomeVestors, we offer one of the most sophisticated lead platforms in the industry, helping franchisees get motivated leads. With national brand recognition and guidance from seasoned industry leaders, you can get the support you need to thrive.

Whether you want to get a license or not, HomeVestors can help you renovate and sell houses for profit. If you’re interested in real estate franchise opportunities, contact HomeVestors today to get started.

Each franchise office is independently owned and operated.

This blog is for informational purposes only and should not be considered legal advice.