Contractors as FHA 203k Consultants?
Why not? What are your thoughts?
Contractors actually make good consultants but if you are a contractor and you are looking for more business this may just be your ticket.
What happens when a 203K buyer finds a house? They get prequalified by lender, then they have to seek a 203K consultant. The lenders actually supposed to pick the consultant but quite often they feel that's a liability and don't want to do it. So they asked the homeowner to call around and find a 203K consultant for their project.
If a contractor is a consultant they will get that first call in their city in most cases. So the homeowner does a search for a 203K consultant in Charleston, South Carolina. They find Joe consultant, and call Joe who happens to be a contractor. Joe makes an appointment to go see the property and look at that potential scope of work, help the borrower create a scope of work, then bids that project. Of this contractors bidding the project as if he's going to do the job.
All of a sudden it dawns on you that this is a job you'd really like to do. So he asks the borrower if the borrower would like him to do the job? If the borrower agrees then Joe calls another consultant who will become the draw inspector and take over as consultant on this project.
What has the contractor gained doing it this way?
1) he was called first to look at a project and therefore gain some rapport with the client.
2) is bid is the first one looked at, and likely accepted.
3) he has the opportunity to become a contractor instead of the consultant thereby making more money.
4) if he doesn't get the job, he's already been paid to provide his bid. If he does get the job as a contractor, he would use the consultant fee to pay the new consultant for a plan review, which is a lesser fee, thus he was paid to create the bid.