203K Training

After talking to a few home inspectors who spent a lot of money on 203K training I felt I should post some facts about 203K’s.

Contractors, home inspectors, architects and engineers are the usual applicants applying to be 203K consultants.

No special training is required by HUD to be a 203K consultant.

There are few lenders looking for 203K consultants and in Minnesota where I am on the roster, of 40 consultants maybe a dozen are working and maybe 6 make steady money. Many lenders would prefer to do rehab loans without a consultant as good consultants may slow down the process by simply being honest with their reports.

Draws which can take 6-8 hours of screwing around when things go sour are capped at $100 each plus mileage. So if you drive 80 miles for a draw your total fee will be approximately $171.50 for what might be an 8 hour day, if the homeowner and contractor are not good at filling out paperwork, or if they are fighting it could be 8 hours work for $100.00.

The most useful skills would be how to identify mandatory health and safety items and to know about how much the repairs would cost. You will also need to be a good people manager. The inspection part is the easiest part of the job.

You can make great money being a consultant but you will do much better if you can offer ancillary services like cost to cure reports, architectural drawings and project management consulting.

Paid training can be good but some training programs will be nothing more than the information you could get for free. Choose your education carefully.

On any 203K software choose carefully as some works, some hardly works and some the banks won’t even accept.

Bottom line, it’s hard to break in, the banks don’t care about you, HUD is not there to take your calls so your on your own. If you drop your pants to get work (being the new guy) you will be required to drop em every job you get from that day on.

If you want to be involved as a 203K consultant go here HUD, this HUD site will explain the process and it won’t cost a dime.

If you have questions contact me.

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