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The Business of Flipping Houses
From the July 2006 Oregon Real Estate News-Journal

“Renovation game pays in hot market”  June 24, 2005 – Portland Tribune
“Remodeling pros tell how to ‘flip’ houses”  May 13, 2006 – The Oregonian

And then there was the March 23, 2006 article in The Oregonian’s Neighborhood section which told about a couple’s faith in a three and a half inch statue of St. Joseph placed in the yard to sell the home.  In reading the story, it revealed the home was being “flipped”.

Flipping* houses is the term used to buy a home, fix it up and then selling it for a profit.  It’s big business.  And it is a business, a regulated business.

The Construction Contractors Board (CCB) is the state agency which protects consumers by regulating the construction industry.  Oregon law defines a contractor as a person who for compensation or with the intent to sell, arranges, undertakes, offers to undertake or submits a bid to construct, alter, repair, or improve any building or structure attached to real property.  Contractors must be licensed with the CCB.

Below are listed a few of the exemptions from the licensing requirement:
A person can work on their own home. [ORS 701.010 (1)]
A person who furnishes the materials, supplies or equipment and does not for compensation, install or arrange to have them installed. [ORS 701.010 (3)]
An owner can arrange for the work to be done by a licensed contractor.  But this exemption does not apply to a person who, in the pursuit of an independent business, does the work themselves or arranges for the work with the intent of offering the structure for sale before, upon or after completion.  It is considered prima facie evidence that it was the intent to offer the structure for sale if the owner does not occupy the structure after completion.  [ORS 701.010 (6)]
A real estate licensee when performing work on the structure that the real estate licensee manages under contract. [ORS 701.010 (12)]

Contractors in the business of flipping homes can be licensed as a Licensed Developer as long as they do not perform any of the work themselves.  For more information go to http://www.oregon.gov/ccb and click on Licensing.  You can also call the CCB at (503) 378-4621,

*The term flipping can also be used to describe the purchase of real estate, holding for a short time, even a matter of minutes, and reselling it for a profit because they either bought it below market value or market values is appreciating so rapidly.  If nothing is done to the real estate, this action does not fall under the jurisdiction of the CCB