203K renovation loan - REO Property Preservation Forum
 
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post #1 of 8 (permalink) Old 12-03-2013, 10:45 PM Thread Starter
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203K renovation loan

Do any of you guys have any experience with these loans? I have a realtor and a prospective home buyer coming to me stating that they have 30k to put into a property and want me to do the work. It's a sweet deal because they are basically saying do as much as you can for 30k. The property is pretty nice to begin with so this will be a nice job.

The thing is we are not FHA approved at this point and I am not sure how to get approved exactly?

it has been a strange fall for us as we are practically dead with the Nationals and i don't care enough to even call and ask why. (I don't really want their work anyway) We lost an 80k rehab when the bank SOLD the property as construction was beginning and they are reimbursing us for our start up costs. Then one of my realtors has been having to bid jobs against another local broker and his crew of illegals. They must count debris different in spanish because we lose every job when we go against this outfit. it seems that every opportunity that presents itself right now is some sort of curve ball.

Just because the Nationals are not involved does not necessarily mean things will be smooth sailing.
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post #2 of 8 (permalink) Old 12-03-2013, 11:24 PM
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Originally Posted by Craigslist Hack View Post
Do any of you guys have any experience with these loans? I have a realtor and a prospective home buyer coming to me stating that they have 30k to put into a property and want me to do the work. It's a sweet deal because they are basically saying do as much as you can for 30k. The property is pretty nice to begin with so this will be a nice job.

The thing is we are not FHA approved at this point and I am not sure how to get approved exactly?

it has been a strange fall for us as we are practically dead with the Nationals and i don't care enough to even call and ask why. (I don't really want their work anyway) We lost an 80k rehab when the bank SOLD the property as construction was beginning and they are reimbursing us for our start up costs. Then one of my realtors has been having to bid jobs against another local broker and his crew of illegals. They must count debris different in spanish because we lose every job when we go against this outfit. it seems that every opportunity that presents itself right now is some sort of curve ball.

Just because the Nationals are not involved does not necessarily mean things will be smooth sailing.
I hear you there! I know on here people say things would improve if property handled by Realtor! But I think most do the money making jobs they would do them self or hire friends or in-laws.
A few years ago I ran into some guys that worked(employee`s) for a Realtor,he had a approval to mow the grass. They were there trying to mow with a riding mower from Home depot. Grass was 36" tall and very thick I was there doing a few approved jobs for FAS! One was a initial lawn , I was in house doing something I think winterizing house. The guys were complaining about have try to mow yards with mower they were given to use and eyeing my JD 757 on my trailer. after about an hour they give up on mowing the yard and left, tall grass keep killing there mower. I finished mowing the yard and made it look good , was glad I had taken my before lawn photos before they got there.
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post #3 of 8 (permalink) Old 12-03-2013, 11:26 PM
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I hear you there! I know on here people say things would improve if property handled by Realtor! But I think most do the money making jobs they would do them self or hire friends or in-laws.
A few years ago I ran into some guys that worked(employee`s) for a Realtor,he had a approval to mow the grass. They were there trying to mow with a riding mower from Home depot. Grass was 36" tall and very thick I was there doing a few approved jobs for FAS! One was a initial lawn , I was in house doing something I think winterizing house. The guys were complaining about have try to mow yards with mower they were given to use and eyeing my JD 757 on my trailer. after about an hour they give up on mowing the yard and left, tall grass keep killing there mower. I finished mowing the yard and made it look good , was glad I had taken my before lawn photos before they got there.
sorry not know anything about 203K renovation loan
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post #4 of 8 (permalink) Old 12-03-2013, 11:35 PM
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Originally Posted by Craigslist Hack View Post
Do any of you guys have any experience with these loans? I have a realtor and a prospective home buyer coming to me stating that they have 30k to put into a property and want me to do the work. It's a sweet deal because they are basically saying do as much as you can for 30k. The property is pretty nice to begin with so this will be a nice job.

The thing is we are not FHA approved at this point and I am not sure how to get approved exactly?

it has been a strange fall for us as we are practically dead with the Nationals and i don't care enough to even call and ask why. (I don't really want their work anyway) We lost an 80k rehab when the bank SOLD the property as construction was beginning and they are reimbursing us for our start up costs. Then one of my realtors has been having to bid jobs against another local broker and his crew of illegals. They must count debris different in spanish because we lose every job when we go against this outfit. it seems that every opportunity that presents itself right now is some sort of curve ball.

Just because the Nationals are not involved does not necessarily mean things will be smooth sailing.
That's a great question. I had 2 calls in the last 6 months from homeowners asking if I was a 203k contractor. Both said they were having trouble even finding one in the area.

It is something I plan on figuring out when things slow down this winter.

I'll offer you a deal, if I find out something, I'll share with you. You find out something, let me know. Sound fair???



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post #5 of 8 (permalink) Old 12-03-2013, 11:49 PM
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That's a great question. I had 2 calls in the last 6 months from homeowners asking if I was a 203k contractor. Both said they were having trouble even finding one in the area.

It is something I plan on figuring out when things slow down this winter.

I'll offer you a deal, if I find out something, I'll share with you. You find out something, let me know. Sound fair???
Brad, after our conversation on this same topic last night I did a little digging and came across a site if you or Craigslist Hack would like the address feel free to PM me....
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post #6 of 8 (permalink) Old 12-04-2013, 01:28 AM
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Shoot me a pm with phone number. I do 30+ / yr on 203k & b loans. started a 28k job yesterday (monday).

The biggest problem for newbs is: You dont get paid till completed and inspections are passed.
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post #7 of 8 (permalink) Old 12-04-2013, 08:40 PM
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Originally Posted by Craigslist Hack View Post
Do any of you guys have any experience with these loans? I have a realtor and a prospective home buyer coming to me stating that they have 30k to put into a property and want me to do the work. It's a sweet deal because they are basically saying do as much as you can for 30k. The property is pretty nice to begin with so this will be a nice job.

The thing is we are not FHA approved at this point and I am not sure how to get approved exactly?

it has been a strange fall for us as we are practically dead with the Nationals and i don't care enough to even call and ask why. (I don't really want their work anyway) We lost an 80k rehab when the bank SOLD the property as construction was beginning and they are reimbursing us for our start up costs. Then one of my realtors has been having to bid jobs against another local broker and his crew of illegals. They must count debris different in spanish because we lose every job when we go against this outfit. it seems that every opportunity that presents itself right now is some sort of curve ball.

Just because the Nationals are not involved does not necessarily mean things will be smooth sailing.
Easiest way to stop illegals around here is to call the state Worker's Compensation Code Enforcement, not INS. See in Florida if you have 4 or more employees in a non-construction industry you are required to have WC insurance for them. Once WC code enforcement gets a hold of them it will usually spell the end of their company. WC Code Enforcement makes the IRS look like camp fire girls passing out flower garlands and free cookies.

I had a former employee who was gonna show me how it was done. He hired about 6 guys and went to work for one of my biggest customers. He would drive by my jobs every time he got a check and brag about how much money he was making to my guys.

One day the WC code enforcement guys show up and checked everyone working for anyone on the site. Basically, your crew sits done on the clock until you either provide proof or send them home. It took me 10 minutes to fax in the proper papers and my guys were back to work.

He had only an exemption for himself. So they shut him down and fined him $1,000 on the spot for working without coverage and fined him $1,000 per day per man until he got coverage back dated to the start of the project. There were other fines tossed in for other things too. It took him a little less than a week to get the coverage and pay the fines. Total cost was to the tune of $50,000+ dollars to pay for the insurance and the fines. The next day he closed the doors and went job hunting.

They also went after the GCs WC insurance to provide coverage for his crew until he provided proof of coverage. Contractors will turn a blind eye to the use of illegals and even hire them if it gets the job done. They will never turn a blind eye to having the state add all your guys to their insurance as employees.
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post #8 of 8 (permalink) Old 12-04-2013, 08:51 PM Thread Starter
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Easiest way to stop illegals around here is to call the state Worker's Compensation Code Enforcement, not INS. See in Florida if you have 4 or more employees in a non-construction industry you are required to have WC insurance for them. Once WC code enforcement gets a hold of them it will usually spell the end of their company. WC Code Enforcement makes the IRS look like camp fire girls passing out flower garlands and free cookies.

I had a former employee who was gonna show me how it was done. He hired about 6 guys and went to work for one of my biggest customers. He would drive by my jobs every time he got a check and brag about how much money he was making to my guys.

One day the WC code enforcement guys show up and checked everyone working for anyone on the site. Basically, your crew sits done on the clock until you either provide proof or send them home. It took me 10 minutes to fax in the proper papers and my guys were back to work.

He had only an exemption for himself. So they shut him down and fined him $1,000 on the spot for working without coverage and fined him $1,000 per day per man until he got coverage back dated to the start of the project. There were other fines tossed in for other things too. It took him a little less than a week to get the coverage and pay the fines. Total cost was to the tune of $50,000+ dollars to pay for the insurance and the fines. The next day he closed the doors and went job hunting.

They also went after the GCs WC insurance to provide coverage for his crew until he provided proof of coverage. Contractors will turn a blind eye to the use of illegals and even hire them if it gets the job done. They will never turn a blind eye to having the state add all your guys to their insurance as employees.
On these trash outs and Initials the realtor is hiring subs who probably then hire subs. It's like day labor really and Indiana is pretty wide open. I would like to see someone come in and jam some of these companies up for using this business model.
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