I've been doing FHA 203k Consulting since 1994 and it seems that each year we open the eyes to a group of Realtors and agents only to hear "where has this great product been all these years?"
That is hilarious to those of us "in the know" about the program. When I visited a home inspection group to get some help for my business as an FHA 203k consultant I met an old friend that I had trained in 1995. He grinned from ear to ear and came out from behind the table where he was checking people in for the program and embraced me, only to hold me off saying something like "you aren't going to tell all these guys about the 203k are you?" Wow.
That pretty much says it all... the people who use the program feel it is there niche and theirs alone. Why share it? I'll tell you why. A RISING TIDE LIFTS ALL BOATS. If we get the momentum going all of us benefit much more. Don't get me wrong, the momentum is already going and going strong but we all need more business if I am feeling your pain at all. The banks and asset managers want to move those properties faster and the FHA 203k loan program is clearly the loan of choice right now, we are getting it done. They are no longer saying "NO FHA or VA" even the VA has hired at least one FHA 203k consultant and sends him all over the place doing 203k consulting for them. So, the VA gets it too, Wow. I know one guy they send all over the world... that is correct, to all of our military housing at all of our military bases, I wonder if he gets mileage? mmmm. Just teasing you a little John. John had an order for 500 feasibility analysis reports from HUD a few months ago and by using his "team" was able to get them completed in ten days. That is fantastic. We have a couple of asset managers that use our services but none have done 500 at one time before.
Why would it be an advantage to an asset manager to have a feasibility analysis up front? Simple, if your buyer knows what the cost to cure is going to be they can provide a more responsible offer on the property, one that doesn't have to be back and forth a few times when they do find out that there are more repairs then they expected... instead, the know what the cost to make the repairs is in advance of making the offer. Sometimes this actually makes a higher offer than would otherwise be possible. We have one asset manager who has us do two feasibilities in one report. One for the buyer who can just squeak into a property or bare bones renovation and another for the more typical buyer who might want to do an updated kitchen, and bathrooms as an example. We did one the other day that had a $24,000 renovation tag for bare bones and a $94,000 fully updated home analysis so either potential buyer was served. At $24,000 it was a Streamlined k loan and the other was a full due to the amount being over $35,000.
In any case if you need more training with regards to the 203k loan program and how you can use it to make more sales within your company just contact any 203k consultant and that should get you going. We are typically happy to provide you with the information you might need for our industry as it makes these loans go through the system and get closed so much faster when we have a team helping you with your client. This is not an advertisement, this is telling you that wherever you are located you can likely find a knowledgeable person to do your in house training, and many times some or all of it is FREE and from a local consultant. So contact your local consultant and see what you can do to get the education and knowledge you need to excel in the 203k loan program.
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