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All about Renovation, remodeling, and updating your property
Renovation loans are all about proving you with the financing to purchase or refinance your first loan and then including the money for the renovations all in one low interest loan. We even have programs for Manufactured Homes.
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Consultant - A misunderstood but crucial part of your renovation team
Got a call from a long-time client. They were asking if I had a list of contractors in the area of their new home. I asked why and they informed me that they had been having trouble getting a contractor to bid their project for two months now, everyone was busy in Napa due to the fires.
Frankly that question surprised me as that is what we do, bid jobs. They knew that yet when I expressed that sentiment I was told “it isn’t for a loan we are paying for this project renovation with our own funds…
I was shocked. Had they called us, they would have had a bid in about five days or less depending on the size of the project. They would be two months ahead of where they are.
What they thought was “why should we pay a consultant” when we could just get contractor bids… Right…. NOT! That is the same as saying they don’t believe we do anything for our fee. That is so far from the truth as this other client found out.
We were asked to do a consultation and put a bid together to install a new foundation in her 100-year old home and create a partial second story addition… we bid $159,000 + contingency for this project and we did it all in five days. Bingo, that is a big deal. You may not realize it but it actually is a very big deal.
Why, because you know in five days if this project is going to be viable and fit the budget with accurate numbers you can depend on.
As the story goes, the client told us not to get bids from anyone as she had a contractor selected. No problem… yes, it is, you would always want at least two bids and preferably three. What if the one you get is not a reliable bid. Well that is exactly what happened in this case. Her contractor took five weeks to come up with a bid of $298,000 + contingency for what I had bid at $159,000 + contingency.
She actually looked at me and asked if we knew what we were doing? I just suggested we get another bid and asked her to look in the phone book or ask friends for suggestions and she found one, in about three more weeks she had a bid that matched mine… it came in at $161,000 and she asked if she should talk them down to the $159,000 that I bid. Holy cow. I said “actually this is a very good bid, and you shouldn’t start the relationship with trying to reduce the contractor bid in this case.” I mean he did beat the heck out of your first contractor’s bid and was less than a half percent different than my bid.
I saved her $137,000 and she is worried about another $2,000.00
203k 911 for your problem projects
While most of the 203k’s go off without a hitch from time to time you may find yourself with nobody to talk to on your side that understands the 203K program. If you have a problem renovation project and don’t mind discussing it on live radio please call in. If you want to do it privately we have helped lots of people so far and the initial call is totally FREE, contact us a www.203k911.com