The concept behind the 203k originally was to "Spread the Wealth" therefore the set up some "confilcts of interest". You can't be the appraiser. the contractor, consulant and the lender, etc at the same time on the same project.
Taking that a step farther when you put a 203k project together and are putting the work out to bid... make every attempt to use contractors who are in the neighborhood where the home is or hire from that neighborhood.
An investment in a home is a big investment. If you want the neighborhod to thrive you must "support it" by shopping locally for your needs so the money 'turns over' at least three times in that neighborhood. When you go sixty miles away and bring a contractor who bings his/her crew from that area, they take that money back to their neighborhood and spend it. This is really a very important concept that I hope you will all consider.
Having said that, I had a client in Marin County, CA where her "local contractor" who we all wanted to get the job came in nearly double my bid. At that point she considered bringing in an outside contractor who's bid was very closet to mine and nearly half the local person's bid... $160,000 versus $298,000. That difference made her sit up and take notice.
Part of the consultant's work is to keep the client safe from contractors who would otherwise cheat a person they felt they could take advantage of. Buyer beware has never been more true.
Look at all the people who benefit from an FHA 203k project. Local contractors who hire sub contractors locally, the consultant, the lender, local building officials, cities and counties, Realtors & agents, beyond that the new buyers will find local places to shop that further strenghten the local economy.
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