Mike Young

203k rehab loan program... how can you get more RE sales? be sure your RE listings include the words 'rehab' if you want to make it easier for 203k buyers to find your listings. I can't believe how many homes need some amount of rehab and the listing doesn't say anything about it. don't worry about saying that because many people would purchase a rehab property. You might even suggest that your listing is a "streamline 203k potential" and identify that how much rehab it needs if you know. If it requires a lot of work then a full blown 203k may be the just the ticket to get it sold fast.

While there are many people who don't realize the potential of the "k" to get a home sold a great many do. I have one consultant in the NE part of the country who is doing 10-12 per week... he isn't the only consultant in town. Another area in the SE part of the country lenders are seeing contractors to become consultants because the six consultants in town won't take on any new customers... they have too much business.

The problem as I see it is that you won't have enough lenders to make the loans for you. There is that much business out there. If you have a listing that needs work give it a try. remember that there is no minimum rehab amount on a streamliine and the maximum rehab amount is only governed by the maximum mortgage amount. We have done some with over $100,000 in rehab. I am working on one now with over $200,000 in rehab and most of that is room additions.

Big News

HUD has just extended the waiver of the 90 day seasoning for REOs being sold to FHA customers. They have extened it to May 10th 2010. That means you can sell an REO to an FHA borrower immediately. No waiting the 90 days.. sounds like a challenge. This includes the 203b and 203k.

Property Flipping has been frowned on and considered illegal by HUD for quite a while. I remember having them in my office once years ago telling me just that. I had purchased a property at a wholesale price, and sold it a few days later for a nice profit... they lectured me on how that was illegal. I then suggested that I had a grocery store and purchased bread at a wholesale price, put a markup on that bread and resold it later that same day to achieve my profit. The fact was that the property I sold, without doing anything to it, was sold under market by me as well. I finally was able to convence them what I had done was normal in the course of real estate business. I never heard from them again so I guess they agreed.

Can a contractor be a 203k consultant?

Absolutely. in fact a contractor can make a great 203k consultant. Recenlty we trained a couple of contractors in the same city in SC. They are working on several projects together now. Each one is bidding on the other's projects.

I received a call from a contractor in FL a couple days ago. He was asked by a lender to become a consultant. He really didn't want to be finally agreed to look into it. Thus he found me. In talking to him I asked him if there weren't some 203k consultants in his area of FL. His answer was perplexing... he said there were six but they all were not taking on any more business. They had all they could handle. Wow. I had about fifteen consultants working for me at one point in my carear... Aparently they don't hire anyone. We had about 135 projects under construction at any one time... all I did was draw inspections.

The 203k can be the biggest thing you've seen in a long time. If you are a contractor and looking for a suplimental income... this is a hot product.

M

PRESS RELEASE

203k Loan – The hottest rehab loan product on the market

A Guide for the most popular all-in-one purchase or refinance and real estate rehab loan product in the USA

“In 1961 the FHA (Federal Housing Administration) came out with a purchase or refinance loan guarantee product that included money to make repairs in order to assist home buyers and owner’s get their properties fixed up. The program was deemed a great way to accomplish this. While many were done, the use of the program was hindered by typical large amounts of paperwork and in realty few were actually completed. In 1994 the program was revised addressing the paperwork issue by creating “203k Consultants” who would learn the paperwork end of the program and help the borrowers through the pitfalls of the program. Mike Young was one of those early “203k Consultants” who decided early on to become an expert in the 203k loan program. Mike has been hearing so much misinformation surrounding the 203k during the past few months that he felt the need to clear the air with his new book ’203k Loan – The hottest rehab loan product on the market’ as the first ‘consumer guide’ for the purchase or refinance and rehab of real estate. While the FHA 203k loan program is one of the easiest loans for borrower qualification it is likely the most misunderstood. Since he housing meltdown the FHA loan limits have increased dramatically making this loan available to more consumers than ever before. This ‘consumer guide’ takes you through six simple steps get your next home loan with money for fixing it up all-in-one loan, a must for anyone buying real property this year. Borrowers can save from $400-1000 by using the tips in this book.”

About the author:

Michael A. Young has been a national leader in providing FHA 203k information and training to consultants and consumers and one of the largest FHA 203k consultants since 1994. Guest speaker at numerous home inspector conventions and providing continuing education for appraisers and home inspectors as well as thousands of FREE public awareness seminars.

We are going to have a 203k teaching session on June 4th in Columbia SC... there is a limited number of seats so... let me know if you want to be there at 10 am and i'll pass it along to the moderator. This is a FREE, live event and you can expect to have several tools to take with you from the seminar. It should last about 1 hour to 1.5 hours at the most. We will be discussing the basiscs of the 203k then move into how you can use the 203k to get more sales and reduce your liability. Come join us, I guarantee you will walk away with an entirely different view of the 203k. I will be talking and telling you about some of the thousands of projects we have worked on to open your eyes to some intersting possibilities... you will love it. M