Being Your Own General Contractor


If the law is you have to build your own home to be your own unlicensed general contractor how long do you have to occupy the home before you can sell for profit?

I am in Alabama and I can not find much regarding this.

I can not even find anything officially saying I can be my own general contractor without a license.



Hi Ben,

You can sell your home anytime in most states, but unless you live in it as your principal residence for 2 years:

1. The profits will be taxed as regular income. Read the Internal Revenue Code 121.

2. The state could claim you are in the business of building homes for other people and either fine you or require you to become licensed, or both.

Read my article Mortgage Free.

As for your licensing question:

From: The Alabama Licensing Board for General Contractors.

230-X-1-.07 Owner/Builder.

“A person, firm or corporation which undertakes to construct a building or other improvements on his/her own real property is not required to be licensed as a general contractor if the person, firm or corporation's own forces (non-contractual) are used.

An owner/builder may only let and/or award contracts for work in the amount of $50,000.00 ($5,000.00 for swimming pools) or greater to a properly licensed prime contractor.”

Ben, I believe that a properly licensed prime contractor means a licensed subcontractor, but you can check with your local building inspection department.

Hope this helps,