I pay all cash for my fixers, why not?

By
Home Inspector with 203kOnLine.com, covering the USA S0289

Typically investors and people of money know the value of that money and the value of OPM. That is using Other People's Money (OPM). 

Currently you may buy one home at a time and make $50,000 or hope to with each one. It takes you three months to complete the construction and then you sit on it as you attempt to sell it yourself. Trust me on this, a Realtor can sell it faster and you don't get any less profit. If you are the investor, the contractor, hiring the sub contractors, and the sales team. you are not so smart. I call that someone with dollars and no scense (cents).

Think of it this way: you purchase one at a time now all cash... vs purchasing two or three per month with the same money. Instead of turning one each three months, you will turn three over in three months, then three more the next month and three more the next month. That would be about $150,000 per month profit for three months, the forth month and the fifth month, by using OPM. That means you turn $450,000 profit with the same investment. Either you are an investor or you aren't an investor, which is it?

Is there a loan that works like the FHA 203k loan program for investors? Yes there is, it is the Fannie Mae HomeStyle loan and can be used by investors and for second homes. I know you heard it was only for single family residences (SFRs)... that would be correct, however, come the first of May you will be able to use it for 1-4 unit properties as they add 2-4 units to the SFRs. This is HUGE for investors and could result in getting more homes on the market for all of us.

Did I tell you who is the biggest HomeStyle lender in the nation right now? How about Propsect Mortgage. While Prospect Mortgage is clearly a player in the FHA 203k arena they are the largest HomeStyle lender in the nation according to their corporate research.

Posted by

Mike Young, 203k Team Leader    Mike ready for your 203k order

To learn more about the FHA 203k loan program go to www.203kOnLine.comWhat is your fee? 

Got a 203k project giving you "fits" contact www.203k911.comIf you are looking for quality 203k software for consultants to speed up the underwriting process..

Skype name: the203kconsultant

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Fred Griffin, on leave of absence from ActiveRain
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

When I was 21 years old, I learned the concept of "OPM". 

   You have explained it well, Mike! 

Apr 15, 2013 12:19 PM #1
Rainmaker
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Mike Young
203kOnLine.com, covering the USA - Las Vegas, NV
FHA 203k Consultant 916-758-1809

Thank you Fred

Apr 15, 2013 04:10 PM #2
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Mike Young

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