Lender and Investor Services
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Investor Questions & Answers Consultant Questions & Answers
Investor
Questions:
Most frequently asked questions . . .
Investor questions:
How do I get started investing in real estate?
The difference between those who make it and those who don't is simply "action"... one must walk the walk. If you are going to be an investor then you need to locate a property and make an offer. You won't get everything you offer on but you won't get anything if you don't make the offer.
What type of real estate should I invest in?
Any type could be good. Look for the properties that the other investors are ignoring. I look for 5-8 unit buildings that can be transformed to 4-plexes or duplexes that have too little parking and try to down size them to a SFR. Look for a warehouse that can be converted to Live/Work space. If you have a potential property but you aren't sure what to do with it...tell me about it.
How do I find real estate at wholesale prices or below?
If you are going to invest in real estate then you need
to pay close attention to the "after improved" value and always remember that
"all real estate profits are made on the BUY". You must buy a property right as
an investor. Don't ever think that you'll pay more for a property today because you think
it will appreciate in value and you'll make a killing... that is very rare. You must
discipline yourself to "buy right" in the first place.
How do I limit my exposure and my liability when buying
real estate?
Where does it say the Electrical system must be upgraded to 220V?
This is in the Mortgagee Letter 95-40. Look under the section 28. Electrical. Where it indicates that any 30 amp system must be upgraded to a 220V system.
How do I become a consultant for the 203(k)?
First you have to be qualified. Go to the HUD page and see what the qualifications are for becoming a consultant then use your "back arrow" to come back here.
What if the list is closed?
If the list is closed at the local HOC for some reason and you are qualified to do the work you can solicit the business, perform the consultation and then hire an approved consultant to do a "plan review" of your work and sign off on the draw request. In order for you to be competitive and continue to get work from that lender you will need to pay for the "plan review" out of your fee. Otherwise the plan reviewer might get the next job from that lender. The key here is that you can, once you are capable, perform the consultation.
How do I find an appraiser team member?
It's easy to find an appraiser. Just contact a lender who does 203k loans and ask them who they use for their 203ks. Once you talk to that appraiser you'll know if you want to work with him/her. You want someone who is looking to build more business and would not only take your referral but provide referrals to you. This business is very much a "networking business". That means that you will constantly be referring business to others and in turn you want them to refer business to you.
Which lender do I team up with?
You will have many lenders that you will team up with. You may have your favorites but you should not typically limit yourself to one lender but more limit yourself to a "type of lender". Develop a profile of a lender that you'd like to do business. One that pays their bills on time and refers business to you regularly would be some starting criteria. You'll get some of the agents but you may not get them all in a particular office. Don't ever worry about getting all of the business from a particular lender, just do the best job that you can with the jobs they do give you.
When would I have just “ONE” lender?
You might work with just one lender if they put you on
staff and made you a salaried employee. If any lender tries to get you to work exclusively
for them you will limit your growth severely. You should strive to have many potential
lenders referring business to you.
How do I attract business once I'm a consultant?
The easiest way is to provide information for your local community on a regular basis. I can't stress "regular basis" enough. That means that you need to provide a weekly or a bi-weekly place to have people come to find out about the 203k. You want Investors, appraisers, other consultants, a single lender (a different one each meeting), and lots of home buyers.
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