This video is so helpful only 2 minutes in. I’m a young adult in California wanting to buy a house but the prices are 👎🏽. Knowing i can get a property in Vegas for a good price and then finance my repairs , that’s my goal.
GREAT job! Your content is perfect for first-time home buyers and future real estate investors. The information is easy to understand and you have great video quality. I appreciate your teaching format--sharing the lesson, reasons why/why not and summarized bullet points. I also like this view as it showcases your interior design capabilities. As a suggestion, perhaps continue to put out more content for real estate investors within 0-5 years of experience and then also include 5-10+ years of experience to help provide a road map for beginners. Great work and I look forward to watching more of your videos!
Fatima, thanks for the kind words and your thinking is actually in line with what I am doing. Over the next year I will be focusing on road mapping new investors through the single family arena. It is the most common starting point. But for my personal growth and journey you will start to see more multifamily, bigger deals, mixed in as that is what is more exciting for me. Those deals are slower and obviously more complex but are also not covered well on youtube for those looking to make the jump. The hope is I can start to educate the new investors, develop them, create a network of like minded investors allowing me to do more deals in more markets, and hopefully the top performers can also step up into the bigger arena. Keep in touch as I will be going deeper into education later this year.
ENTP LIFE Amazing! And you are right, there is a shortage of thorough multi-family deal tutorials. I personally would like to start with small multi-family apartment, 5-10 units with upside where I can create value. I’m very excited for you and I look forward to watching your videos!
Awesome video man. Lots of good info. I’d love to hear you analyze a property sometime or talk about some numbers in addition to the main content. Also I like the new setup, but I’d still work on clearing up the audio!
Absolutely. I have some videos covering exactly what you suggested, two videos ago i did a full how to analyze a deal about 45 minutes long. I also have other videos where i go over all the numbers on those. Let me know if you have any questions about anything and thanks for the kind words.
Also any suggestions on the audio. The room im in picks up alot of reverb I think there is a dereverb effect in premiere but I feel it totally flattens out sound. I'll give it a try.
Great information and this is the way I’m going. It makes total sense. I don’t know why Grant Cardone says stay away from these type of loans. You have to start somewhere .I called your agency however I did not know how to ask for you
My real estate email is listed in the profile of this channel you can email me your contact information and I will reach out. Grant Cardone has his beliefs based on personal experience. I get and understand his point because it's a hard way to scale and make significant money in real estate. So he is speaking from the perspective of someone who has been there and if he could start all over again this is where he would start...however he forget's to mention this was part of his journey and what made his thinking shift, sometimes you have to live it to really learn. But Grant is right more units with more capital is the best way to go at it and if you have to flip your way to more money do it because the whole system changes when you size up it's just the rule of business.
You are so welcome! Glad it was helpful. When and where are you looking to buy? Also if you're thinking about investing I highly recommend my program that shows you step by step how to approach a flip/rehab investment.
I had no idea that you can take “restart” tour first time home buyer status bumpy moving. Thanks for the info. Can you do a video about common renovations and what to expect from them. Can you use this type of loan to finish a basement? Or is it mostly for safety/more functional renovations?
Yes i can and will do in the near future. You can finish a basement and I think add additions to your property. Just make sure you're doing things in accordance to your local code. The scope of renovations is entirely up to you...they don't allow for things like swimming pools, indoor movie theatres and non essential renovations. But adding square footage and remodeling is fair game. The limitations will be the After repair values. So you need to buy something under market value. Say a 200k house for 120k. That leaves you with a budget of 80k to do as you wish!
ENTP LIFE thanks! I did some reading on this loan and it seems that the money you get for remodeling is based on the projected value after remodeling? Or is it just for the costs of the remodel? I’m going to re watch your vid and do some more research.
In my previous comment I touched on this. The limiting factor is the After Repair Value of the home. The difference between your purchase price and the after repair value is the spread that you have to work with. The better your purchase price the better off you are.
Do you know what work MUST be completed with a 203k loan? I'm looking at a 4 unit property. One unit is livable. 2 are missing furnaces and the other has a missing ceiling in the kitchen and the bathroom is gutted. The real estate agent suggested a 203k loan because we plan to house hack. My plan for this property is a full rehab. A complete gut job for all units. I don't want to pay a contractor for this work as we can do it ourselves. Floor, kitchens, bathrooms, windows, etc. We can save thousands doing it ourselves and are ready and willing to do the work. Do you know of or have any resources for something like this?
Hi Erica,. Personally I would not do the work myself, you will be working too slowly and may end up costing yourself loss rent and a building mortgage reserve. I advise against that. Maybe for your unit but the others you should turn over quickly and start collecting rent. Are you on Instagram? If so let's do a live chat to dive into the details of the deal or I can do a RUclips live and answer your questions real time. In the comments section will be really difficult to give proper guidance. What do you think?
Great vid.. I Iah you would’ve elaborate the 203k minimum repair cost and maximum they would allow. Also discuss the importance of having a contractor that is licensed and bonded to be approved by fHA and the delay in payments waiting for sign off on repairs
Thanks for subscribing! If you can move quickly I advise that because lending terms are changing quickly. Make sure you scoop up a 2-4 family. If you can, catch one in weequahic or mount pleasant.
@@Karl__Pierre I am looking to purchase by mid 2020 and will definitely be buying a multi-family unit I am looking in Irvington, East Orange, Newark area. Do you have any opinions on those areas in Essex County. I will look into the areas you mentioned.
I like newark and east orange. I have a property I am in contract to sell in Newark that I got for 65k added 120 in and unloading for 310. That's in the weequahic section which is sout newark and more residential. I also like the north side, Mt pleasant I think its call. And of course downtown newark. I just started looking into east orange but don'tknow that market so well. I also picked up a 2 family in paterson that I will be showcasing.
@@Karl__Pierre Thanks for the info Weequahic, was not on my radar but it is now. I am looking carefully as I plan to house hack and have a family of 4 with small kids, so while I am all in for making a $$$ schools etc... matter. Irvington and East Orange are on my list as well. Irvington is offering 5 year tax abatements for revitalization of the township that many developers seem to be enjoying although as with anything it comes with red tape. Looking forward to hearing about your Paterson property.
Firstly, thanks for this video. It was very informative. My question, however, doesn't have anything to do with the information in the video; rather an appliance. Can you send the link to the brass/gold kitchen faucet?
@@Karl__Pierre No not yet. Just prepping, not buying until next year. Looking to do the 203k process. I just have to find a decent deal. NJ property taxes can be extremely high.
This video was helpful. I’m looking to buy property in Atlanta, GA but looking to use the 203k loan to renovate and rent out to college student. Trying to get as much knowledge before purchasing and any advice would help. Thank you
What if I want to completely demolish and rebuild? Can 203k loan be used for that? Also, how much would it cost to demolish and reconstruct a home in NYC?
Actually not sure with a full demo and rebuild. You might have to keep one wall or something like that to not qualify as new construction. Building from scratch in NY should run 200/sqft. Maybe a little less depending on who you work with. Give me more details on the proposed projects. Acquisition price, where's it's located, what you plan to do etc.
ENTP LIFE it’s a 1700sq ft home on a 4000 sq ft lot. Single family butI would like to demo and turn into 2 family. The home is for sale for $430k in Queens.
@@mnique4578 after repair value as a 2 family? And can you convert to a 2 family without a full tear down. That's more likely what you would have to do otherwise you might spend way too much, better off looking for an empty lot of fire damaged house if considering a complete teardown. Your idea would make more sense if you were inheriting a property. Is the property zone for 2 family?
ENTP LIFE yes the property zone is for 2 family. The thing is that the lot is 4000sq ft and the house is 16000sq ft. I wanted to see if I could make the home itself bigger. I’m wondering how much the overall project would cost. I would estimate that I could be approved for 600k. The house is 430k but I would try to negotiate. Does it sound worth it?
@@mnique4578 I think the conversion and major overhaul of the house could run you 150k. All depends on the comps on the 2 families. How much are renovated two families selling for in that neighborhood
Hey Ben. With $3000 i suggest you start with educating yourself and figure out what investment startegy you will pursue. If you have a strategy and know exactly how to execute your next step will be to raise 30% of the total investment from family and friends and do a deal to start building more capital and a track record....or save up around 20k and go multi family with an fha loan. What city and state are you in? What type of deals do you want buy and hold for income or flips? With a little more information I can give you some better advice.
From what I learned from you is that you need a good contactor that's willing to work with you. Good designer. Hire a HUD advisor. Buy Mutii family. My question to you is when purchasing do you know if the tenant is not paying? Or do you buy vacant. How much do you recommend having back up money. Where do you find contractors that can work with you for 203k. Can my small business do the HVAC work if we are licensed. I believe you said the bank gives you 6 months to finish. What happens of you do not finish in time? Plz help and thx for video Also what does your agency do?
yes of course you should ask seller of proof of payments. Its better to buy vacant in my opinion. should have at least 30% of the project costs as back up (cash and or credit) and about 6 months in mortgage to play it safe.
Hi I've been watching your youtube video on house hacking with 203k loans, I am based in nyc and I want to do exactly what you did with the college homes. I just have a few questions on looking for the properties... What's the furthest you would recommend from a campus ? How can you find multifamily homes and what should I be looking for when I'm looking at them? What would be a great cap rate to look forward too when renting out? How did you pick out which students you will let stay in your home? I really hope you get this and willing to help me out 🤗🤗🤗
Depends on the college. I like to keep it within walking distance to the campus. But each college town is different. To find multifamily homes search using a multifamily filter on zillow or mlsli.com also you can find a real estate agent to help you with that. know you buying criteria and tell them to find it. I like anything over an 8 Cap. That way you see at-least 2+% a year. But with college rentals if renting by the room your cap rate will be much higher into the double digits 12-20% As far as students, I target students that have the ability to pay and seem socially passive. Any fast talking slicksters will throw parties and make your life miserable. I try to get as much of the full years or semesters payments up front when possible.
Hey my name is Darius i was looking at taking this angle and doing a 203k fha i have a wife and 2 kids so i was looking at doing a duplex in a nice area here in Jacksonville fl and rent out the other unit stay there for your year then make my unit i i had a renter and we just rent out a house until we get enough cash flow and i was just seeking your advice on my plan to see if that would work? And I want to know what would be the interest rate on a loan for about 150,000?
Hey Darius, sorry for the late reply currently in Brazil and finally had time to settle in and get to sit with my computer. I think your plan is a great way to get started, just don't bite off more than you can chew when it comes to your first reno project as that could be complicated. The way I would use the 203k for a first time house hack as you described would be to find something a little run down that needs repairs of things like the roof, heating and cooling system, hot water, and basic touch up of the house. Those will be easy and fairly standard to price and find contractors for. You can hire a general contractor to handle interior work and have him work with you to outsource the roof and hvac work so you can get experience with that. The reason you should approach it this way is you are replacing the things that will get you calls from tenants. A fresh clean apartment is ok for a tenant but a leaky roof or climate control issues will be a horror for you as a first time landlord. Try to get a triplex or quad. More units are better, you'll cash flow a little more and have more options. After 1 year manage to save up enough to do it again. After you feel comfortable with that, start looking for an occasional flip, it will be good as this can sort of tubro charge the rate that you acquire properties. Typical fha 203k rates will be .5% above prime, and honestly interest rate isn't the end all be all so don't focus on that too much. Most important thing is to find a good deal and get the experience. To me a good deal is any purchase+rehab that is 70% or less of the ARV and rents for atleast 1% of the purchase price a month. On a 150k all in you want the properties rents to be atleast 1500/month. This maybe hard for you to find in the 2-4 family world but if you can't find that make sure you are getting something which will have a little equity don't pay market price.
ENTP LIFE thank you. I was reviewing a breakdown for my sister and noticed interest rate of 4.375% and APR of 5.565%. I was wondering if there is more fees charge since it’s a 203k loan
@@isidoramartinez6510 on 203k loan interest rates are typically higher but you maybe able to get a better rate than that seems a bit high. Get a second opinion
Yes one person I believe I have two mentioned in the description below this video. Matthew is closer to Brooklyn and Keith in Long Island. Loan Officers Familiar With FHA Matthew.Garland@flagstar.com KRadonis@getevolved.com (Keith)
The HUD website has a list of fha 203k approved lenders that have closed these specific types of loans. It's also important that your lender is a direct lender, not a correspondent lender. This means that the lender you close with, is the same lender controlling the renovation draws. This is important bc most lenders sell their loans to other banks after closing. This is where they make their money. However, for someone with a 203k loan, this means there could be a 3 or 4 week gap in time from closing until your first draw is approved by the new bank. Your contractor could walk off the job by then or take on a new job and add further delays to your project. So be sure to use an fha 203k approved lender that's closed these loans many times and who is a direct lender. Both lists are available on the HUD website. Google "hud 203k endorsements 2019" for a list of all the lenders who have closed these loans this year. Also google "hud lender list search" to find a lender approved in your state to close 203k loans. Select your state and uncheck all the boxes on the form except "single family and multifamily servicer-originator only" and "203K rehab mortgage insurance program" then hit search. Compare the two lists you pulled to find a 203k approved direct lender (servicer) with experience closing these loans. Interview several of them and ask for recommendations on GCs and hud consultants they've worked with in the past. Then interview all of them until you've found a couple GCs you want to invite to bid on your project when you find a property. Get pre approved by the lender you like in advance of finding the deal bc you'll need to move very quickly once you find a property. This loan take 45-60 days to close. Be sure your realtor knows what contingencies to include in the contract as well. The lender may be able to recommend a realtor as well. Your whole team needs to be familiar with this loan product so take the time to put your team together (realtor, lender, GC, hud consultant). Also, you should refi out of the fha product after 6 months to remove the MIP, if you have enough equity in the property after the reno is done. Be aware that the final appraisal for the 203k loan will be conservative. It's very likely that your new appraisal for the refi will be much higher. Knowing you will refi, negotiate with your attorney and/or title company and lender in advance, at the first closing, for reduced fees at the refinance closing.
Hundreds of thousands of student loans I would hope the career path earned them hundreds of thousands as well so their debt to income should allow them to qualify. If that is your situation I recommend sitting with a mortgage professional and seeing what you can get qualified for and make purchases within your credit range.
Yes it is similar from what I have heard however I don't know the exact details of the homestyle loan. It allows you to purchase a home and renovate the home with a single mortgage. So if a house was considered uninhabitable due to condition you would be able to use this loan. I have another more detailed video on the loan itself and my experience going through the process...check it out!
Technically speaking yes but it will be virtually impossible because auctions usually expect you to close in 30days and the fha process is 45 days at best. Better off buying an reo, Hud home, or homepath home with FHA 203k loan because you won't have the same time constraints. Where are you located?
ENTP LIFE I’m currently not approve for anything at the moment, I’m in position to be approve. But I wanted to research and have some basic knowledge before making a decision.
This video is so helpful only 2 minutes in.
I’m a young adult in California wanting to buy a house but the prices are 👎🏽. Knowing i can get a property in Vegas for a good price and then finance my repairs , that’s my goal.
Vegas prices should get really nice considering the damage done by covid to the tourism and entertainment industry there
Keep me posted with your progress
Thank you, i will do that
GREAT job! Your content is perfect for first-time home buyers and future real estate investors. The information is easy to understand and you have great video quality. I appreciate your teaching format--sharing the lesson, reasons why/why not and summarized bullet points. I also like this view as it showcases your interior design capabilities. As a suggestion, perhaps continue to put out more content for real estate investors within 0-5 years of experience and then also include 5-10+ years of experience to help provide a road map for beginners. Great work and I look forward to watching more of your videos!
Fatima, thanks for the kind words and your thinking is actually in line with what I am doing. Over the next year I will be focusing on road mapping new investors through the single family arena. It is the most common starting point. But for my personal growth and journey you will start to see more multifamily, bigger deals, mixed in as that is what is more exciting for me. Those deals are slower and obviously more complex but are also not covered well on youtube for those looking to make the jump. The hope is I can start to educate the new investors, develop them, create a network of like minded investors allowing me to do more deals in more markets, and hopefully the top performers can also step up into the bigger arena. Keep in touch as I will be going deeper into education later this year.
ENTP LIFE Amazing! And you are right, there is a shortage of thorough multi-family deal tutorials. I personally would like to start with small multi-family apartment, 5-10 units with upside where I can create value. I’m very excited for you and I look forward to watching your videos!
@@FatimaAlicia Thanks really appreciate that!
Very helpful on my journey into RE! Greatly appreciated!
No worries and thanks for the feedback what city are you in?
@@Karl__Pierre I'm in Philadelphia..
The background looks really good!
Thanks. My past house currently rented. Some of the houses in live in post flip.
Awesome video man. Lots of good info. I’d love to hear you analyze a property sometime or talk about some numbers in addition to the main content. Also I like the new setup, but I’d still work on clearing up the audio!
Absolutely. I have some videos covering exactly what you suggested, two videos ago i did a full how to analyze a deal about 45 minutes long. I also have other videos where i go over all the numbers on those. Let me know if you have any questions about anything and thanks for the kind words.
Also any suggestions on the audio. The room im in picks up alot of reverb I think there is a dereverb effect in premiere but I feel it totally flattens out sound. I'll give it a try.
This helped me so much exactly what I was looking for thank you
I'm glad you found it useful
OMG, Thank You! I was toggling between should I purchase my retirement home or purchase an investment property. You helped me.
100% investment property
Great information and this is the way I’m going. It makes total sense. I don’t know why Grant Cardone says stay away from these type of loans. You have to start somewhere .I called your agency however I did not know how to ask for you
My real estate email is listed in the profile of this channel you can email me your contact information and I will reach out. Grant Cardone has his beliefs based on personal experience. I get and understand his point because it's a hard way to scale and make significant money in real estate. So he is speaking from the perspective of someone who has been there and if he could start all over again this is where he would start...however he forget's to mention this was part of his journey and what made his thinking shift, sometimes you have to live it to really learn. But Grant is right more units with more capital is the best way to go at it and if you have to flip your way to more money do it because the whole system changes when you size up it's just the rule of business.
ENTP LIFE I will email u shortly
Thank you so much for all this wonderful information.
You are so welcome! Glad it was helpful. When and where are you looking to buy? Also if you're thinking about investing I highly recommend my program that shows you step by step how to approach a flip/rehab investment.
I am definitely thinking about investing so I will check out your program when ready.
I had no idea that you can take “restart” tour first time home buyer status bumpy moving. Thanks for the info. Can you do a video about common renovations and what to expect from them. Can you use this type of loan to finish a basement? Or is it mostly for safety/more functional renovations?
Yes i can and will do in the near future. You can finish a basement and I think add additions to your property. Just make sure you're doing things in accordance to your local code. The scope of renovations is entirely up to you...they don't allow for things like swimming pools, indoor movie theatres and non essential renovations. But adding square footage and remodeling is fair game. The limitations will be the After repair values. So you need to buy something under market value. Say a 200k house for 120k. That leaves you with a budget of 80k to do as you wish!
ENTP LIFE thanks! I did some reading on this loan and it seems that the money you get for remodeling is based on the projected value after remodeling? Or is it just for the costs of the remodel? I’m going to re watch your vid and do some more research.
In my previous comment I touched on this. The limiting factor is the After Repair Value of the home. The difference between your purchase price and the after repair value is the spread that you have to work with. The better your purchase price the better off you are.
Do you know what work MUST be completed with a 203k loan? I'm looking at a 4 unit property. One unit is livable. 2 are missing furnaces and the other has a missing ceiling in the kitchen and the bathroom is gutted. The real estate agent suggested a 203k loan because we plan to house hack. My plan for this property is a full rehab. A complete gut job for all units. I don't want to pay a contractor for this work as we can do it ourselves. Floor, kitchens, bathrooms, windows, etc. We can save thousands doing it ourselves and are ready and willing to do the work. Do you know of or have any resources for something like this?
Hi Erica,. Personally I would not do the work myself, you will be working too slowly and may end up costing yourself loss rent and a building mortgage reserve. I advise against that. Maybe for your unit but the others you should turn over quickly and start collecting rent. Are you on Instagram? If so let's do a live chat to dive into the details of the deal or I can do a RUclips live and answer your questions real time. In the comments section will be really difficult to give proper guidance. What do you think?
I have told these loans charge the main interest rate for the loans plus an APR. does that sound correct?
Great vid.. I Iah you would’ve elaborate the 203k minimum repair cost and maximum they would allow. Also discuss the importance of having a contractor that is licensed and bonded to be approved by fHA and the delay in payments waiting for sign off on repairs
Maybe I will one day. Thanks for the suggestions. I was going going off memory when I produced this video.
Can I buy an empty lot, use an FHA 203k for a new build of a 4 unit as a first-time homebuyer?
I'm really not sure if 203k is for new construction
That's a really nice eat in Kitchen BTW. You got a new subscriber! Plan on using this type of loan in NJ Essex County Area.
Does the year period you need to live in the home begin when you close, or when you actually move in?
Thanks for subscribing! If you can move quickly I advise that because lending terms are changing quickly. Make sure you scoop up a 2-4 family. If you can, catch one in weequahic or mount pleasant.
@@Karl__Pierre I am looking to purchase by mid 2020 and will definitely be buying a multi-family unit I am looking in Irvington, East Orange, Newark area. Do you have any opinions on those areas in Essex County. I will look into the areas you mentioned.
I like newark and east orange. I have a property I am in contract to sell in Newark that I got for 65k added 120 in and unloading for 310. That's in the weequahic section which is sout newark and more residential. I also like the north side, Mt pleasant I think its call. And of course downtown newark. I just started looking into east orange but don'tknow that market so well. I also picked up a 2 family in paterson that I will be showcasing.
@@Karl__Pierre Thanks for the info Weequahic, was not on my radar but it is now. I am looking carefully as I plan to house hack and have a family of 4 with small kids, so while I am all in for making a $$$ schools etc... matter. Irvington and East Orange are on my list as well. Irvington is offering 5 year tax abatements for revitalization of the township that many developers seem to be enjoying although as with anything it comes with red tape. Looking forward to hearing about your Paterson property.
Firstly, thanks for this video. It was very informative. My question, however, doesn't have anything to do with the information in the video; rather an appliance.
Can you send the link to the brass/gold kitchen faucet?
Haha no worries. Here you go amzn.to/3dEGl31 less than $100 and works pretty good. You're remodeling your kitchen?
@@Karl__Pierre No not yet. Just prepping, not buying until next year. Looking to do the 203k process. I just have to find a decent deal. NJ property taxes can be extremely high.
This video was helpful. I’m looking to buy property in Atlanta, GA but looking to use the 203k loan to renovate and rent out to college student. Trying to get as much knowledge before purchasing and any advice would help. Thank you
Buy and fix below market, get as many rooms as possible, renovate for durability because college students are savages
Great video, very informative.....
Thanks, you're currently thinking about using the loan program to buy? Where abouts?
@@Karl__Pierre Chicago
What if I want to completely demolish and rebuild? Can 203k loan be used for that? Also, how much would it cost to demolish and reconstruct a home in NYC?
Actually not sure with a full demo and rebuild. You might have to keep one wall or something like that to not qualify as new construction. Building from scratch in NY should run 200/sqft. Maybe a little less depending on who you work with. Give me more details on the proposed projects. Acquisition price, where's it's located, what you plan to do etc.
ENTP LIFE it’s a 1700sq ft home on a 4000 sq ft lot. Single family butI would like to demo and turn into 2 family. The home is for sale for $430k in Queens.
@@mnique4578 after repair value as a 2 family? And can you convert to a 2 family without a full tear down. That's more likely what you would have to do otherwise you might spend way too much, better off looking for an empty lot of fire damaged house if considering a complete teardown. Your idea would make more sense if you were inheriting a property. Is the property zone for 2 family?
ENTP LIFE yes the property zone is for 2 family. The thing is that the lot is 4000sq ft and the house is 16000sq ft. I wanted to see if I could make the home itself bigger. I’m wondering how much the overall project would cost. I would estimate that I could be approved for 600k. The house is 430k but I would try to negotiate. Does it sound worth it?
@@mnique4578 I think the conversion and major overhaul of the house could run you 150k. All depends on the comps on the 2 families. How much are renovated two families selling for in that neighborhood
Can you refinance out a FHA 203K loan to avoid paying the PMI? After having 20% equity of course.
Yes
Hello, not familiar with the loans and the breakdown. Does it sound right if the bank charges interested plus an APR for the 203k loans?
I currently have $3000 saved up and would like to start investing, but I don’t know where to start, what would you suggest?
Hey Ben. With $3000 i suggest you start with educating yourself and figure out what investment startegy you will pursue. If you have a strategy and know exactly how to execute your next step will be to raise 30% of the total investment from family and friends and do a deal to start building more capital and a track record....or save up around 20k and go multi family with an fha loan. What city and state are you in? What type of deals do you want buy and hold for income or flips? With a little more information I can give you some better advice.
Very good information!
I'm glad you found it useful!
From what I learned from you is that you need a good contactor that's willing to work with you. Good designer. Hire a HUD advisor. Buy Mutii family.
My question to you is when purchasing do you know if the tenant is not paying? Or do you buy vacant. How much do you recommend having back up money.
Where do you find contractors that can work with you for 203k.
Can my small business do the HVAC work if we are licensed.
I believe you said the bank gives you 6 months to finish. What happens of you do not finish in time?
Plz help and thx for video
Also what does your agency do?
yes of course you should ask seller of proof of payments. Its better to buy vacant in my opinion. should have at least 30% of the project costs as back up (cash and or credit) and about 6 months in mortgage to play it safe.
I am looking at setting up a Investment company, would that work, could it be a LLC, S-Corp, C-Corp, or DBA which would be under the main company?
loan will have to be in your name - then switch to LLC later
Do you have to be a first time buyer to be approved for the 203K loan program? This would actually be my second home purchase.
Yes a first time buyer or relocated more than 100 miles.
@@Karl__Pierre Gotcha. Thanks
Hi I've been watching your youtube video on house hacking with 203k loans, I am based in nyc and I want to do exactly what you did with the college homes. I just have a few questions on looking for the properties...
What's the furthest you would recommend from a campus ?
How can you find multifamily homes and what should I be looking for when I'm looking at them?
What would be a great cap rate to look forward too when renting out?
How did you pick out which students you will let stay in your home?
I really hope you get this and willing to help me out 🤗🤗🤗
Depends on the college. I like to keep it within walking distance to the campus. But each college town is different. To find multifamily homes search using a multifamily filter on zillow or mlsli.com also you can find a real estate agent to help you with that. know you buying criteria and tell them to find it. I like anything over an 8 Cap. That way you see at-least 2+% a year. But with college rentals if renting by the room your cap rate will be much higher into the double digits 12-20% As far as students, I target students that have the ability to pay and seem socially passive. Any fast talking slicksters will throw parties and make your life miserable. I try to get as much of the full years or semesters payments up front when possible.
@@Karl__Pierre wow a ton of info thank you soo much 🤗
Hey my name is Darius i was looking at taking this angle and doing a 203k fha i have a wife and 2 kids so i was looking at doing a duplex in a nice area here in Jacksonville fl and rent out the other unit stay there for your year then make my unit i i had a renter and we just rent out a house until we get enough cash flow and i was just seeking your advice on my plan to see if that would work? And I want to know what would be the interest rate on a loan for about 150,000?
Hey Darius, sorry for the late reply currently in Brazil and finally had time to settle in and get to sit with my computer. I think your plan is a great way to get started, just don't bite off more than you can chew when it comes to your first reno project as that could be complicated. The way I would use the 203k for a first time house hack as you described would be to find something a little run down that needs repairs of things like the roof, heating and cooling system, hot water, and basic touch up of the house. Those will be easy and fairly standard to price and find contractors for. You can hire a general contractor to handle interior work and have him work with you to outsource the roof and hvac work so you can get experience with that. The reason you should approach it this way is you are replacing the things that will get you calls from tenants. A fresh clean apartment is ok for a tenant but a leaky roof or climate control issues will be a horror for you as a first time landlord. Try to get a triplex or quad. More units are better, you'll cash flow a little more and have more options. After 1 year manage to save up enough to do it again. After you feel comfortable with that, start looking for an occasional flip, it will be good as this can sort of tubro charge the rate that you acquire properties. Typical fha 203k rates will be .5% above prime, and honestly interest rate isn't the end all be all so don't focus on that too much. Most important thing is to find a good deal and get the experience. To me a good deal is any purchase+rehab that is 70% or less of the ARV and rents for atleast 1% of the purchase price a month. On a 150k all in you want the properties rents to be atleast 1500/month. This maybe hard for you to find in the 2-4 family world but if you can't find that make sure you are getting something which will have a little equity don't pay market price.
Does the year period you need to live in the home begin when you close, or when you actually move in?
Starts from closing date. Make sure you also file taxes with that address as well as update your drivers license.
@@Karl__Pierre thanks.
Can I make a single family home that needs a complete renovation into a duplex with the 203k loan?
Yes if the area is zone for it
Hello, not familiar with the loans and the breakdown. Does it sound right if the bank charges a interest rates plus an APR for the 203k loans?
They may display rate and also APR which is your true rate that might be what you're seeing. It's not both adding together.
www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-mortgage-interest-rate-and-an-apr-en-135/
ENTP LIFE thank you. I was reviewing a breakdown for my sister and noticed interest rate of 4.375% and APR of 5.565%. I was wondering if there is more fees charge since it’s a 203k loan
@@isidoramartinez6510 on 203k loan interest rates are typically higher but you maybe able to get a better rate than that seems a bit high. Get a second opinion
I live in Brooklyn New York. Planning to purchase my 1st home this year. Any recommended loan officers who are familiar with the FHA 203k loan?
Yes one person I believe I have two mentioned in the description below this video. Matthew is closer to Brooklyn and Keith in Long Island.
Loan Officers Familiar With FHA
Matthew.Garland@flagstar.com
KRadonis@getevolved.com (Keith)
ENTP LIFE Thank you
@@InspirationalGem anytime
ENTP LIFE Another question, any recommended contractors who have experiences with 203k loan program ?
The HUD website has a list of fha 203k approved lenders that have closed these specific types of loans. It's also important that your lender is a direct lender, not a correspondent lender. This means that the lender you close with, is the same lender controlling the renovation draws. This is important bc most lenders sell their loans to other banks after closing. This is where they make their money. However, for someone with a 203k loan, this means there could be a 3 or 4 week gap in time from closing until your first draw is approved by the new bank. Your contractor could walk off the job by then or take on a new job and add further delays to your project. So be sure to use an fha 203k approved lender that's closed these loans many times and who is a direct lender. Both lists are available on the HUD website. Google "hud 203k endorsements 2019" for a list of all the lenders who have closed these loans this year. Also google "hud lender list search" to find a lender approved in your state to close 203k loans. Select your state and uncheck all the boxes on the form except "single family and multifamily servicer-originator only" and "203K rehab mortgage insurance program" then hit search. Compare the two lists you pulled to find a 203k approved direct lender (servicer) with experience closing these loans. Interview several of them and ask for recommendations on GCs and hud consultants they've worked with in the past. Then interview all of them until you've found a couple GCs you want to invite to bid on your project when you find a property. Get pre approved by the lender you like in advance of finding the deal bc you'll need to move very quickly once you find a property. This loan take 45-60 days to close. Be sure your realtor knows what contingencies to include in the contract as well. The lender may be able to recommend a realtor as well. Your whole team needs to be familiar with this loan product so take the time to put your team together (realtor, lender, GC, hud consultant). Also, you should refi out of the fha product after 6 months to remove the MIP, if you have enough equity in the property after the reno is done. Be aware that the final appraisal for the 203k loan will be conservative. It's very likely that your new appraisal for the refi will be much higher. Knowing you will refi, negotiate with your attorney and/or title company and lender in advance, at the first closing, for reduced fees at the refinance closing.
What about those with hundreds of thousands dollars in student loan debt. Is there a loan for them?
Hundreds of thousands of student loans I would hope the career path earned them hundreds of thousands as well so their debt to income should allow them to qualify. If that is your situation I recommend sitting with a mortgage professional and seeing what you can get qualified for and make purchases within your credit range.
Good Video
Thanks Luis, where are you looking to invest?
Puerto rico
Is this program similar to the Homestyle loan?
Yes it is similar from what I have heard however I don't know the exact details of the homestyle loan. It allows you to purchase a home and renovate the home with a single mortgage. So if a house was considered uninhabitable due to condition you would be able to use this loan. I have another more detailed video on the loan itself and my experience going through the process...check it out!
Can you purchase a home from auction.com and use the FHA203k loan program?
Technically speaking yes but it will be virtually impossible because auctions usually expect you to close in 30days and the fha process is 45 days at best. Better off buying an reo, Hud home, or homepath home with FHA 203k loan because you won't have the same time constraints. Where are you located?
ENTP LIFE I’m located in edwardsville IL, it’s about 20 minutes from st.louis Missouri
@@mackenziestone2283 are you preapproved and have a contractor who understands the 203K loan and payout pattern?
ENTP LIFE I’m currently not approve for anything at the moment, I’m in position to be approve. But I wanted to research and have some basic knowledge before making a decision.
GEMS
Thanks for the encouragement
Your audio is trash. There’s a static that comes through and it’s really low and
Haha thanks for the feedback, what do you recommend I do with me low end trash Audio