This is a big one. If you are involved with the FHA 203k at any level we can generate our own business without allot of effort. Just consistency wins out every time. Be there when they need the information.
I can’t count how many times have I asked Realtor Associations how may people come into their offices just to find out after they have wasted about twenty minutes that they don’t have any down payment. Maybe they heard some TV or Radio show that says you can buy property with no money down. I ask them and you the next time that happens set it up with the newest, greenest, agent in the office, the one that knows nothing yet. The good thing about that person is that they don’t have any preconceived notions about buyer. That has to be learned.
I then coach that new agent to bring those people to a seminar like the one I’m giving tomorrow at Security Pacific Real Estate at the Richmond Hilltop location for a number of agents and Realtors. Just bring them please. Why? Because I’ll put them in a house. This event is a Realtor oriented seminar to show you “how can you make money with the 203k?” It is NOT like the one tonight in Concord, CA which is more of a production meeting. Where we produce real estate sales, match up buyers and sellers and investors and buyers.
The seminar like the one we are giving October 26th in Concord is an event where we ask participants to bring with them a borrower/owner occupant, an investors, yes investors (Do you think I don’t know investors can’t buy using the 203k – don’t fool yourself into believing that for a second, just hear me out). Many of you cater to investors and I have also done that for many years. They are a crucial part of the puzzle. Once we are in the meeting and get the “203k basics” laid out for everyone we move right into the real reason everyone comes to my seminars, the GAME is on. We ask all of the home buyers if they would please fill out the “Quick Qualifier” loan application for the host lender who is Brian Reeg of Prospect Mortgage Concord tonight and Garry Bettencourt at All California Mortgage an old friend who has done many 203k loans since the mid 1990’s who is hosting tomorrow morning at Security Pacific RE.
The “host lender” typically pays for the hall and gets all the loans we can produce in the room that night or in the days that follow due to our efforts. Then we have a “Sponsor Realtor” that gets all of the fresh home buyers that weren’t accompanied by an agent or other Realtor. We also encourage FSBO sellers to join us. All we ask is that the FSBO seller sign an agency agreement and to pay a commission if we sell the property through our efforts. They typically don’t mind and our lender quite often gets a conventional loan or a 203b loan as these properties quite often don’t require any work. Find some work and turn it into a 203k or Streamlined k of the appraisal comes in too low and pick up another 10% on the value over the “after improved” value appraisal.
I guarantee you will learn something you didn’t know about the 203k if you will join us. We have done enough of these loans to have seen pretty much everything you can see. This becomes an asset to our clients and associates as we can offer suggestions on turning that warehouse into living units, or a 5-8 unit building into a 4-plex using the 203k, or how to get an investor to buy and fix up a property for a future buyer so the agent or Realtor that finds that property can sell it to the investor and pick up a commission, then when the home buyer with no down payment pays “higher than market rents” for a period of time can EARN their down payment and by the way this is an approved manner to do just that by HUD, and then the agent gets another commission from the investor as they wrote that second contract the same night they signed the contract for the investor. You get two contracts and two commissions on the same home, both written the same night but one for now and one for 6-12 months down the road after that buyer who didn’t have a down payment has created their down payment. You end up banking a second future sale. Who wins? YOU DO! Who else? Everyone else wins to.
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