All Forum Posts by: Steven Holiday

Thanks so much for the clarification. 

Okay. 

One toe at a time, I'm dipping into the --FHA 203k process and I have many questions. Obviously I could Google the answers, but there are so many of you with so much experience and you never know what you're going to get on a Google search. So thanks for your help in advance.

So if I understand the process completely, it works something like this. 

1.  I find a home (hopefully very motivated and undervalue). 

2.  I walk through with a contractor and we determine the amount of work needed to put it in acceptable condition. 

3.  I use appropriate pro's to determine the project's after repair value.

4.  We take the deal to the lender and see where they want to go. 

So my three-part questions is,

-- is my understanding pretty close (at least up to that point)? 

--I would never think of closing an MLS house without a property inspections, but in this case, would that be overkill?

--Would most contractors do the walkthrough like a bid on a job, (ie, no cash required) , would they expect a fee to do the "walk though", or is it negotiable/case-by-case? 

Thanks again in advance, everybody. 

That's for an excellent summary of the situation. I don't want to "skirt" any rules or bumble into anything unaware. It seems like so many MLS houses are priced top dollar with features I NEVER would have chosen when it seems a buyer could pick up a motivated sale after a contractor did a walkthrough with a good idea of what would be needed to make it the "After" picture at closing. Thanks again to both of you for the illumination.

sh

Makes sense. 

Thanks. 

Hi Everybody.

If someone intends to owner/occupy a home after renovations....

and the approved contractor has an agreement on the job...

Can the GC "supervise" the work done by the borrower or hired help (trashout, prep/cleanup, etc.), to reduce the actual cost?  

Would the loan fund with some cash back to the borrower?  

Not looking to break any rules, just curious about process.  

Thanks.

Hi Everybody.

If someone intends to owner/occupy a home after renovations....

and the approved contractor has an agreement on the job...

Can the GC "supervise" the work done by the borrower or hired help (trashout, prep/cleanup, etc.), to reduce the actual cost?  

Would the loan fund with some cash back to the borrower?  

Not looking to break any rules, just curious about process.  

Thanks.

Stockton, Modesto, Turlock, Fresno, Merced.  You would break even, depending on your mortgage, down payment, etc.  Not a very landlord friendly state, but the Central Valley is generally friendly to investment.  Lots of quality PM's and usually good labor options.  

I work in education.  I'm very passionate about cultural transformation, social justice, great movies, etc.  Yesterday, I had a great chat with a realtor, 20 minutes after I found out that the prop he listed was in counters and was a transaction between two chain smokers.  He also told me the ballpark terms they were working with.  That part of the conversation took south of 90 seconds.  For the rest of the 15 minute call, I found out I went to school in his hometown.  His grandpa used to hold public office in my hometown.  He operates 2 or 3 hours away from me, but I found myself thinking, "I'd sure like to do a deal with that guy."  

A real estate question transitioned into a chat between friends when he asked me, as a teacher, about the school down the street and the culture of the neighborhood.  Looking back, he sucked me in by "being a nice guy", but really he appealed to my ego.  That sounds shallow, but people dedicate their lives to medicine, law, grocery, childcare, whatever: that's their passion and a clear path to their trust and personal regard.  

The really successful people, in any field, are those who can really invest in every opportunity to build a connection, regardless of outcome.  I know it's much easier said than done, but I sure appreciate it when it happens.  

Thanks for sharing your journey! 

Someone can let me know iif I'm missing something, butFHA requires pmi.  Not just to 20%, but for the life of the loan.  So when you get to 20% equity, you can refi for cash out, or for a lower rate -w/o the pmi, which allows for cash accumulation.  

Thanks Chris.  

Once I heard back from her, she admitted she only knew what the company was sending her.  She and I agreed to stick to the props we had already agreed to look into.  I just like to know where people are motivated.  Thanks for your input.  I can use all the guidance I can get.