Real Estate Zealot

FHA 203 (k) Renovation Loans for Fix-Up Properties

In this video from BrokerIPTV.com, renovation loan specialist Tom Yoswa from MyProspectMortgage.com discusses FHA 203 (k) loans, which can assist buyers with fix-up properties.

Interviewer: Today we are talking with Tom Yoswa. He is a renovation loan specialist. How are you?

Tom Yoswa: Hi Dan. I am doing well.

Interviewer: Well we talked in a segment about what a residential loan or renovation loan specialist does, can you explain it again?

Tom Yoswa: Well, basically, I loan people money to purchase and renovate a house. You know, what I find in the market that we are in right now, there is a lot of bank foreclosures, there is a lot of HUD properties, those properties in particular, you know, a lot of them, if you show me one that doesn't need work I will show you 10 of them that probably do. So basically it enables you to take those homes, buy them and fix them all with one loan and one close.

Interviewer: And most realtors and consumers would probably know this is an FHA 203(k) loan, is that right?

Tom Yoswa: Yes.

Interviewer: Okay, yeah.

Tom Yoswa: It's basically nothing more than a regular FHA loan with the same FHA guidelines. However, there is a construction element to it and we put the money into Escrow afterwards for the repairs.

Interviewer: And traditionally what type of buyers are using this loan and what's that price point?

Tom Yoswa: Well I mean in this market right now there is a lot of first time home buyers. You know I think there are some statistics out there say you know almost 50% of all home buyers right now are first timers, which makes sense because of the market and the interest rates, etcetera. So you know, when I look at first time home buyers most of them are not buying you know $300,000 houses, they are buying $150,000 houses and you know, the large majority of those homes need some sort of work.

Interviewer: Right.

Tom Yoswa: Carpet, kitchens, bathrooms, new roofs, etcetera.

Interviewer: So a $100,000 will say what 220, 225 is pretty much the pool you are swimming in?

Tom Yoswa: I would say for the most part I mean there are other, you know, it can go higher, it can go lower, it just really depends on who the buyer is and what they are looking at.

Interviewer: And what type of repairs can they make under this program?

Tom Yoswa: Dan, you can do just about anything, you know carpet, paint, kitchens, bathrooms are usually the typical ones. People don't know you can put appliances into the loans, if it has a furnace or any of the HVAC stuff that isn't functioning, you can do that.

Interviewer: Hot water heating?

Tom Yoswa: All that stuff,...

Interviewer: Roofs?

Tom Yoswa: Roofs, you can do it, obviously anything exterior, landscaping in some situations, etcetera.

Interviewer: All right, a couple the obstacles that prevent people from buying a house. One is usually down payment, how much money do they have to put down with this loan?

Tom Yoswa: Well I mean, there is again, options there, too. I do conventional as well as FHA, it's the same guidelines as FHA and conventional. So with the 203(k) loan, it's, you know, as little as three and a half percent down.

Interviewer: Okay.

Tom Yoswa: So you know whatever the purchase plus the renovation is combined, it's three and a half per cent off of that, but there are other programs, HUD has a $100 down program if it still exists, I think it does.

Interviewer: Yeah.

Tom Yoswa: And you can use that in certain situations, so it really depends but it's as little as three and a half percent down.

Interviewer: So one of the questions I know I have been asked by buyers is can you combine the programs? I want to do the $100 down HUD program, but I need the construction financing. Can you do it?

Tom Yoswa: I have done it, just so long as it's a full-price offer.

Interviewer: Oh, it's got to be full-price offer?

Tom Yoswa: It's got to be a full-price offer. So if HUD's asking 160, you bid 156, no-go. If you bid, if it's 160, you bid 160, then yes, and then again, I am not 100% sure. I believe the program is still there.

Interviewer: It sounds good. Tom, thanks I appreciate it.

Tom Yoswa: Thank you very much, Dan.

You can reach Tom Yoswa at 303-668-4499 and at MyProspectMortgage.com online.

Renovation Loan Specialist Tom Yoswa

Tom Yoswa is a renovation loan specialist at My Prospect Mortgage. He talks about how to obtain these loans in this BrokerIPTV.com video.

Interviewer: Today we are talking with Tom Yoswa. He is a renovation loan specialist. Tell me about how do you get a renovation loan and what is it exactly?

Tom Yoswa: Well basically it's like any other loan that you are going to qualify for, the difference being is that we are going to loan you the money to purchase and renovate a house and we are going to do it all with one loan and one close.

Interviewer: Okay, so there is not a loan to buy the house and then another loan to go get some money to improve it?

Tom Yoswa: No.

Interviewer: It's all lumped in one?

Tom Yoswa: It's all put into one loan.

Interviewer: And who is it offered by?

Tom Yoswa: Well there is, there is probably several lenders that do it, but there are very few that really specialize in it.

Interviewer: And it's primarily done through FHA, correct?

Tom Yoswa: FHA... there is a conventional product but right now probably 80% of my loans are FHA.

Interviewer: And it's called the 203(k) loan through FHA, right?

Tom Yoswa: 203(k) loan, yep.

Interviewer: And explain how that works?

Tom Yoswa: Well basically you know, you have someone that wants to buy a house, maybe it's a bank foreclosure or something like that, where they might need a new kitchen new flooring, new roof, new windows, it can be just about anything, and what we are going to do is basically loan them the money to purchase, you know, they get it under contract and then there is an Escrow that we set up post-close from which they draw from to do the fix-ups in the house.

Interviewer: And how do you determine how much they get to use to fix it up?

Tom Yoswa: Well a lot of times it just depends on, you know, what the issues are with the house lot of things we have an inspection that's done. The Home Inspector might go in and have a whole laundry list of things that need to be done, other times they might just have two or three things and it's a simple one, so really it just kind of depends on the house.

Interviewer: So do you know, going in ahead of time before you give the loan, how much work of repair needs to be done?

Tom Yoswa: Yes, yes, that's the key is there before we close the loan we have a work with Escrow or a bid from a contractor and then we close the loan based on that bid and my appraisal is done with that bid in mind, subject to the repairs that are being made.

Interviewer: And then after they close, do they have to use that contractor?

Tom Yoswa: Pretty much. I mean, many times we have already got somebody in line, but you know there are people who want to change after the fact but typically they use the same contractor.

Interviewer: Right now after the close deals you just hand the customer a check, how do they get the money?

Tom Yoswa: No and that's not necessarily how it works I mean to kind of protect the customer against their contractor we put their money into an Escrow account.

Interviewer: Right.

Tom Yoswa: And then they draw money out of the Escrow account for the repair. So, that lot of times there is an Inspector involved and things like that.

Interviewer: So if I am reading you correctly, let's say some repairs were done, the contractor submits the bill to the bank, who is holding the Escrow account.

Tom Yoswa: Yeah.

Interviewer: The bank then cuts the check to the contractor for the repairs you did?

Tom Yoswa: More or less, yeah there is a draw process and there is photos that have to be taken, you know things have changed a little bit over the last few years so...

Interviewer: More work?

Tom Yoswa: Yeah, so you know it's a little bit more intensive than just that but you know there are forms, they fill it in, they get their money within 72 hours.

Interviewer: What benefit is this to realtors?

Tom Yoswa: Well I mean the realtors you know, it's a whole different animal for them because it's another notch in their belt I would like to say. It's a product that lot of them don't know about. So if you are a realtor and you have got a listing that is in need of repair and you know it's in need of repair, maybe it was a house and it hasn't been, you know, it's cosmetically challenged, hasn't been touched in 30 years.

Interviewer: Yeah.

Tom Yoswa: It's a way to maybe you know put it into their listing or into the MLS. In other ways it's beneficial because the customers that they are working with, they know about this loan and if they find a house that needs repair then they have, they know about the loan and you know we go from there.

Interviewer: So instead of a buyer walking in and walking out after they see the place, they go, whoa, wait there is money that can be set aside to fix this in your loan?

Tom Yoswa: That's exactly what I do and it's exactly the way that I present it to realtors.

Interviewer: Tom, thanks, great information. I appreciate it.

Tom Yoswa: Thanks, Dan.

You can reach Tom at 303-668-4499 and at MyProspectMortgage.com online.

METRO BROKERS INC. PROUDLY ANNOUNCES PARTNERSHIP WITH COLORADO EAGLES HOCKY TEAM

Contact: Courtney Lis Voca

PR 970.581.6231

Courtney@vocapr.com

 

METRO BROKERS INC. PROUDLY ANNOUNCES PARTNERSHIP WITH COLORADO EAGLES HOCKY TEAM

Relationship will facilitate Metro Brokers expansion and commitment to Northern Colorado

(Loveland, Colo.) - July X, 2010 – Metro Brokers, Inc. www.metrobrokersonline.com is proud to announce a joint partnership with the Colorado Eagles, Northern Colorado’s beloved hockey team based in Loveland, CO. Metro Brokers will be involved in a variety of marketing and sponsorship opportunities during the upcoming 2010/2011 hockey season at the Budweiser Events Center. Metro Brokers is dedicated to growing its membership and client base in and around Fort Collins and this relationship will help foster brand awareness for the growing real estate company in Northern Colorado.

“The Colorado Eagles have established an amazing fan base in Northern Colorado,” said Bob Luna, president, Metro Brokers, Inc. “This is a perfect venue for Metro Brokers to establish itself among the people in the community in a creative and unique manner and establish a strong identity by getting involved with such a noteworthy organization.”

As president of Metro Brokers, Bob Luna has been committed to growing its membership base into outlying areas along the front-range and this relationship illustrates their commitment to the people of Northern Colorado. A total of 9 Metro Brokers offices and 50 agents currently reside in the area.

“Metro Brokers is the ideal business model for those agents interested in controlling their own destiny,” said Doug Lindstrom, broker owner of the Metro Brokers Loveland office. “As a result, we have experienced substantial growth and success during the down market. We hope this partnership with the Eagles will prove our commitment to Northern Colorado, help us grow our businesses and foster a long relationship within our community.”

Metro Brokers Inc. provides real estate agents an independent framework to succeed through innovative technologies, brand awareness, continuing education courses and extensive multi-media mix marketing. Unlike other real estate companies, Metro Brokers Inc. is actually owned and operated by its brokers and prides itself on its strong team of agents.

“Just like the Metro Brokers organization, the Colorado Eagles are a hard working, high producing, and successful team, making this partnership a perfect fit for both sides,” said Lindstrom.

About Metro Brokers, Inc.

Metro Brokers, Inc. has been Colorado's leader in real estate, technology and services, for more than 30 years, providing the framework, structure, brand and freedom for real estate brokers to work professionally, efficiently and profitably. Our network of nearly 2,000 highly experienced real estate professionals specialize in residential, commercial and investment properties and have access to ground breaking technologies, continuing education courses, and innovative marketing that help buyers and sellers make the most of their real estate transactions. Unlike most other real estate companies Metro Brokers, Inc. is actually owned and operated by its brokers.

2010 Realtor Rally: Steve Moran with A Cleaner Carpet

In this BrokerIPTV video from the 2010 Realtor Rally in Denver, Kathy Soltero talks to Steve Moran of A Cleaner Carpet about their services.

Interviewer: Hi I am Kathy Soltero with BrokerIPTV.com. Today we are at the 2010 Realtor Rally, talking with Steve Moran. Steve, tell me a little bit about your company.

Steve Moran: Well, everything we do is environmentally friendly, power stretching and repairs, tile and grout, hardwood floors, marble and stone, water damage mitigation, just about everything we do is geared to help the realtors retain their clients and sell houses.

Interviewer: What kind of questions are you getting today from the realtors?

Steve Moran: Mostly what all we do that kind of surprise the adversity of products that we offer and services that we do offer.

Interviewer: Why is yours any different than any other carpet cleaning company?

Steve Moran: Well everything that we do is environmentally friendly. We are geared toward the newer technology and the things that are coming up in the future.

Interviewer: Okay, and you have been in business how long?

Steve Moran: For 12 years in the Denver metro area, we cover the whole Denver metro area.

Interviewer: Okay, again, what's the name of your company?

Steve Moran: We are A Cleaner Carpet and Flood Masters of Colorado, serving Denver Metro area.

Interviewer: All right, Steven. Thank you very much for joining us today.

Steve Moran: Thank you, have a great day.

Interviewer: Thank you, too, for watching Broker IPTV. For more real estate-related videos be sure to tune into BrokerIPTV.com.

Kris Jordan from Garvin's Sewer Service at the 2010 Realtor Rally

In this BrokerIPTV video from the 2010 Realtor Rally in Denver, Kathy Soltero talks to Kris Jordan from Garvin's Sewer Service about how they help residential real estate professionals and homeowners.

Interviewer: Hi I am Kathy Soltero with BrokerIPTV.com. We are talking with Kris Jordan with Garvin's Sewer Service today and Kris, thanks so much for joining us. Tell us a little bit about your company.

Kris Jordan: Well Garvin is a family-owned and operated Denver-based company; we have been in business for 70 years this year.

Interviewer: And tell me about some of the key things that you are seeing out there now in residential real estate that people are needing to deal with as far as sewer lines and that sort of thing?

Kris Jordan: Well we are noticing a trend in the home setting for longer, so the sewer lines in as good as shape as they could be. So we are doing the sewer scopes to see in and we are seeing a trend in market for doing that.

Interviewer: And what's the difference between a sewer scope and versus just cleaning it out, I mean, why would you do one or the other?

Kris Jordan: Sewer scope is designed to see inner line, the sewer cleaning actually clears any blockages and cleaning roots out of the line, it's a bladed object instead of the camera.

Interviewer: And is this really big expense for homeowners?

Kris Jordan: Not at all, the sewers scoping, that's the camera, is under $200 and same with sewer cleaning.

Interviewer: And if you are going to do something like this for your home, what kind of major expense down the road could you be preventing?

Kris Jordan: Well, keeping a good maintenance by cleaning the roots out will prevent any offsets or breaks that would cause a need to replace the line later.

Interviewer: How old are homes are we talking about?

Kris Jordan: You know it can be any age, we have seen homes that are up to a 100 years old that have never had problems and that includes clay pipes.

Interviewer: Okay and what happens when you are dealing with the clay pipes, is that any different?

Kris Jordan: It's easier for the roots to get through but they are just as healthy as any other pipes if you keep them maintained.

Interviewer: Okay, very good. Well, Kris Jordan with Garvin Sewer Service, thank you so much for joining us today.

Kris Jordan: Thank you.

Interviewer: And for more real estate-related videos you can be sure to check into BrokerIPTV.com.

Staged Homes Sell Faster Than Competing Homes

STAGED HOMES SELL FASTER THAN COMPETING HOMES.

BrokeripTV : We are talking with Ann Yrisarri today. She owns A.N Company, a design and staging firm and thanks for being with us.

Ann Yrisarri: Thank you having me.

BrokeripTV : When I was a kid we sold a lot of houses. We never had a stage or back then. When and how did staging come about?

Ann Yrisarri: The concept of staging began in California in the early 70s with Barbara Schwartz. She had a background in Theatre business and Real Estate and just felt like there was a potential that people will be missing by not staging their homes.

BrokeripTV : Define staging for me. What is it some people think you are just putting furniture in an empty house?

Ann Yrisarri: Staging and poised about an empty house and an occupied house within empty one you wanted to spell the thought that there is desperate seller and you want to create a sense of space. Really staging is about visual impact and making impression to the buyer. So we just try to bring in furnishing if thats necessary or supplement of someones already occupied but when you create a bigger sense of space.

BrkeripTV : How long do non staged home stay on the market? Do you have an idea?

Ann Yrisarri: Stagetombs.com [phonetic] did a survey for 2006 and on stage tomb was on the market for 4 ½ months and a home that was stage before that was listed was on the market for a month and a half.

RESEARCH SHOWS:

STAGED HOMES SELL FASTER THAN COMPETING HOMES.

PHOTOS OF STAGED HOMES LOOK BETTER IN PRINT AND INTERNET ADVERTISING.

STAGED HOMES ARE VIEWED AS

Robb Robichaud of AGS Constructions talks about the critical aspects of maintaining stucco

BrokerIPTV: Today we are talking with Robb Robichaud, the general manager of AGS Construction and Robb, thanks for being with us.

Robb Robichaud: Oh, it is a pleasure. Thank you.

BrokerIPTV: Talking about one of my favorite topics, stucco, EFIS and so forth, I keep seeing... I keep getting these buyers who are buying stucco homes and there are issues and people are worried and upset, which really kind of leads me into my first question. Is buying a stucco house in Colorado nothing but problems, true or false?

Robb Robichaud: False. Buying a house with stucco on it, what we recommend is to have an inspector report done and that way you can more or less determine if there are damages behind it.

BrokerIPTV: Does every house crack?

Robb Robichaud: Not every house cracks, but Colorado is an arid climate. We have high UV rays and you will get some cracking issues. If you get cracks, it is not serious unless the cracks become real wide, which is about sixteenth of an inch and that is if you can put a dime in it.

BrokerIPTV: You got a crack, what do you do?

Robb Robichaud: Well, the first thing you do is you don't caulk it.

BrokerIPTV: You don't?

Robb Robichaud: Don't caulk it.

BrokerIPTV: Okay.

Robb Robichaud: And reason why is patching it, you have to use stucco in it[Phonetic] and you have to put a texture[Phonetic] with it and then you cover it over, you can paint it or reskim the wall. If you just patch the crack and use caulk, when you paint it or if you kind of skim over it, it really... the crack will show up.

BrokerIPTV: Does that apply for windows as well? Around windows are you supposed to be caulking and maintaining those windows where the stucco meets the window frame?

Robb Robichaud: That should be Caulk Concealed [Phonetic] and it should be checked every three years.

BrokerIPTV: What happens if worst case scenario, we got water moisture behind EFIS insulation?

Robb Robichaud: Depends on how serious it is. If you have the penetration behind there, we see where we have to take it right down to the framing and sometimes we have to remove the framing and the reason why is you get black mold behind there and once you get that into the insulation, that has to be removed.

BrokerIPTV: Robb, let's say we got to make some repairs on a particular wall. If we have spots or holes or so forth, is that... can we just patch or do we have to refloat a whole wall or reskim a whole wall?

Robb Robichaud: You can patch it, but what is going to happen is once we patch it, that's going to show up. If you just do that particular section, we match the texture and the color as close as possible, but it is going to fade differently than what is existing on the wall and you don't have any way to get around it other than skimming that wall from corner to corner and then you have that uniform look.

BrokerIPTV: Robb, great information. It is a complicated topic that I know a lot of buyers and people want to know about including real estate agents. Thanks.

Robb Robichaud: Thank you very much.

Dennis Brachfeld says comfort home audit can save money

Dennis Brachfeld Provides Knowledge on Making Your Home More Comfortable and Energy Efficient

BrokerIPTV: We are talking with Dennis Brachfeld today, energy consultant for existing homes and Dennis, welcome.

Dennis Brachfeld: Welcome. Happy to be here.

BrokerIPTV: Thanks for being here. Tell me about your company, what you do?

Dennis Brachfeld: We specialize in making existing houses more comfortable and more energy efficient.

BrokerIPTV: How many homes are inefficient, when we talk about heat, when we talk about energy? What would you say?

Dennis Brachfeld: Well, I will tell you. We have worked on a little over 30,000 houses since I started the company and we still haven't even scratched the surface. So, nowadays new houses that are energy star labeled, which I would say are less than 5% of the market, are pretty energy efficient; they won't need me.

BrokerIPTV: Right.

Dennis Brachfeld: But historically....

BrokerIPTV: But that is only 5% of the market.

Dennis Brachfeld: In today's market, right. Energy ....

BrokerIPTV: That is, 95% are all losing heat and energy.

Dennis Brachfeld: Correct, wasting it.

BrokerIPTV: Why is that? We were talking before we got started and you had the perfect answer.

Dennis Brachfeld: Right, because typically homeowners ask how many square feet do I get for the buck and it is not a problem yet, but once you have a problem, you look for the best stock. So, once a homeowner acknowledges they have a problem, they look for us.

BrokerIPTV: And you do what you call a comfort home audit?

Dennis Brachfeld: Correct.

BrokerIPTV: What is it? Tell us a little bit about it?

Dennis Brachfeld: Well, I kind of believe in the 80/20 rule that if a homeowner is aware of their environment, they probably know where 80% of the problems are and we can figure out why those are problem areas - either too hot in the summer or too cold in the winter. So, we rely on their input, on the comfort audit, and you need all the instrumentation to do an audit where the homeowner doesn't know about the house. Let's say they are deciding to decide between two houses they haven't lived in yet and that is more of a detailed scientific audit.

BrokerIPTV: All right. We are also talking about keeping your house cool. You know during the summer so... is that the same process that you go through?

Dennis Brachfeld: It is a little bit different. The physics is a little bit different because the physics of heat - heat goes from hot to cold, heat does not rise, warm air rises, warm water rises, but the reason why the upstairs is hotter is basically because it is closer to the roof and the roof and attic get so hot and downstairs it is cooler because it is further away from the roof, not because warm air is rising. So, we really make sure the attic is well ventilated to let that heat out in the first place and then we insulate the attic insulation or shading east and west windows.

BrokerIPTV: All right. Last question - this wasn't what we talked about. Settle this fight for between me and my wife. We have got a finished basement. She says keep the vents closed in that basement because I want all the heat going upstairs. I say keep the vents open in the basement so you get heated from bottom up. Answer?

Dennis Brachfeld: Okay. Yeah, the answer is complicated, but it is how much air goes through your furnace. It is like your radiator. When your radiator gets plugged up, your engine overheats. By closing up some of the vents, you are slowing down the amount of heat that is going through your furnace and so you are sending more of the heat up the chimney. So, it is more efficient to have as many vents open as you can and get more heat air going through that furnace to transfer more into the house.

BrokerIPTV: I think I may have won that. Dennis, thank you very much. Appreciate talking to you.