If you think we've got troubles today you should have been in the Midwest in 1973! We didn't have any money! Or, in California where they had so much money that they'd loan any amount on any thing and the only qualification was the ability to fog a mirror, more on that another time.

I was a young REALTOR® in Kalamazoo selling investment properties and homes when we went from money being hard to getin 1973 to impossible by 1974. My investor clients needed tax shelters. This was pre- Reagan and marginal tax rates went to 90%! That means that for each extra dollar you made the IRS took 90¢! It was a lot easer to shelter dollars you already made than to make $10.00 to take home $1.00. The best tax shelter were rental housing with new apartments providing the most shelter.

There was just one little problem. No one had any money to loan to build new apartments in the Midwest! The bankers, my peers, and everyone kept telling me "it can't be done! It can't be done! It can't be done! It can't be done! It can't be done! It can't be done! It can't be done! It can't be done! It can't be done!"

Not possessing the common sense of the average person, I just knew there is always more than one way! A year before in 1973 I'd been hired to do demographic studies for two "Rural Rental Housing" projects. Those projects were to small to make senses for my investors, but there was money available for them from the FmHA, Farmer's Home Administration! The two 24 unit projects I'd worked on were just to small. I determined that 36 units just worked and that 48 units were ideal.

I met with the state office of the FmHA. I told them what I wanted to do. It seems that the program would allow up to 50 units in a single phase, but no one had yet built more than 24. It can't be done they said, because at 25 units lots of additional regulations and laws, both State and Federal, had to be complied with, it can't be done!

Can you say? Subdividing, EPA, environmental impact reports, the then new ADA, zoning, FHA compliance (As in HUD, they provided architectural approvals.), cost restrictions (We built to FHA/HUD standards, but only had half the money!), FmHA inspections, FHA/HUD inspections, local building inspections, and God forbid DAVIS BACON! They said it can't be done!

My Grand Fathers and my Father would never let me accept "it can't be done!" Worse Brenda didn't believe there was any thing I couldn't do. There is always more than one way! Always!

I had a client with tax problems, 90 days after I convinced him we could do what no one had yet done in Michigan we had approval for 36 units in Bronson, 150 days after we started we broke ground! Never tell me it can't be done, tell me what I have to do to do it! A year later I developed the first 48 unit project in Hastings, and on, an on, until 1984.

That was then . Now! There are two programs that fascinate me. Strangely they're both FHA/HUD!

FHA 203k allows you to repair remodel and rejuvenate owner occupied housing. Before Ike, the hurricane I saw a listing on Galveston Island that would make a great B & B, while FHA doesn't finance business there are no restrictions on an owner occupied 6 bed room 7 bath home if you can afford it, what a great opportunity for a small family.

We also looked at some very large, very old, very neglected fixer uppers, in what my hostess called the YUPPIE belt. Old homes being taken back to and beyond their original value. 203k would let young families build/rebuild dream homes. This loan is not easy you're going to have to do as much possibly more than you would to build from scratch, but think of the possibilities! There is always more than one way! If I had an ambitious client or couple today we'd talk about 203k.

The other loan is the reverse mortgage. I'm still learning about this tool, but it appears that since the first of this year a senior at least 62 only needs to have or find a suitable home and put at least 40% down. Provided they can fog the mirror. Now I've never before advocated 40% down on anything, but many senior buyers are planing to pay all cash to avoid having to make monthly payments out of their retirement. The reverse mortgage eliminates the mortgage payment and either leverages or conserves their cash reserves. An incredible tool for seniors! People that were going to settle for an $80,000.00 home could now have a $200,000.00 home and in today's market that was at least a $300,000.00 house just a year or two ago, people that want the smaller home could hold on to an extra $64,000.00 of liquid security.

Impossible? It can't be done! It's true for those that tell you so, they can't do it! But, to the true believer there is always more than one way! Never ask, can it be done? If you must ask, ask what do I need to do?

You can do things like they've always been done or you can create your own realty! You can help a young family needing a part time stay at home business. You can help the urban professionals to their dream home years before they thought it possible. You can leverage seniors into more comfort and security than ever before. You can be in the real estate business selling houses or you can be in the people business building lives. The choice is yours, there is always more than one way!

Bill

William J Archambault Jr

The Real Estate Investment Institute