How you can earn an extra five figures a month with your background in construction

March 26, 2018

 

If you've been following my blog for a while, then you know I'm all about teaching folks how to maximize their skill set, into consistent revenue earning streams. Whether you're working a 9-5, or a full-time entrepreneur, having multiple streams of revenue is beneficial in so many ways, more importantly, it will help you achieve your financial goals faster, as opposed to relying on one source of income.

 

Today, I’ll be focusing on how you can maximize your skills in the construction industry, or if you're looking to become a full time self-employed general contractor, the 203K Consultant career path may be an option to explore. 

 

What does a 203 Consultant do?

 

The consultant is responsible for the following:

 

Onsite visits

HUD work write ups and reporting

Facilitate draws and inspections

 

What makes me, Shavaughn, an “expert” in this field? I’ve worked in financial banking sector for over a decade, with an emphasis on residential financing. I’ve personally sourced, sold and packaged, 203K loans for both buyers, and home owners, while working with 203K consultants during the loan process.

 

What is a 203K Loan?

 

203K is another financing option for buyers who may be out priced in their respective market and may need to purchase a fixer upper.

 

Who uses a 203K Consultant? 

 

Buyers and homeowners who want to complete minor home renovations, use programs such as the FHA 203K Mortgage Loan program

 

What are the benefits of the 203K loan program?

 

The benefits of the program is that buyers, and homeowners can renovate up to $35,000.

The 203K Loan program enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home. The types of improvements that borrowers may make using Section 203(k) financing include: 

  • structural alterations and reconstruction 

  • modernization and improvements to the home's function

  • elimination of health and safety hazards

  • changes that improve appearance and eliminate obsolescence

  • reconditioning or replacing plumbing; installing a well and/or septic system

  • adding or replacing roofing, gutters, and downspouts

  • adding or replacing floors and/or floor treatments

  • major landscape work and site improvements

  • enhancing accessibility for a disabled person

  • making energy conservation improvements

Other benefits include:

 

  • Buyers pay one mortgage as opposed to two unlike with traditional financing

  • Transactions typically take about 45 days to close, which means buyers can start working on the repairs of their home right away

  • Decent interest rates

  • Realtors are able to close more deals, moving their dilapidated properties faster!

Now, let’s talk money

 

These are rough estimates however, here’s a breakdown of what you can earn as a 203K Consultant

The base fee is $400 for the repairs that range between $5,000 to $7,500.

 

For amounts ranging between $7,501 to $15,000 the HUD 203k consultant fee is $500.

For renovation work amount between $15,001 to $30,000, it's $600.

 

For the cost of rehab work that falls in the range of $30,001 to $50,000, the 203k consultant fee is $700.

 

The fee will be $800 for fix-up work that falls between $50,001 to $75,000. If the proposed repair work costs between $75,001 to $100K, the fee would be $900. In those rare cases where the renovation work to be undertaken exceeds $100,000, the fee shall be $1,000

 

Let’s think about this for a second. If you were to do at least 3 inspections per month at $700.00

That’s $700.00 X 3 inspections per month = $2,100.00

$2,100.00 X 12 = $25, 200

 

That’s a down payment on a house, enough to pay off debt such as student loans, or money to start a college fund for your children.

 

What are the Qualifications to become a 203K consultant?

 

The prospective Consultant must meet the qualifications for one or more of the following:

  • be a state-licensed architect;

  • be a state-licensed engineer;

  • have at least three years of experience as a remodeling contractor or general contractor; or

  • Have at least three years of experience as a home inspector.  

 

Job duties entail the following

The prospective Consultant must

  • Submit a narrative demonstrating they fully understand the requirements of HUD’s 203(k) Program, and describing their ability to:

    • conduct Feasibility Studies;

    • review or prepare architectural exhibits;

    • prepare a Work Write-Up and Cost Estimate;

    • complete Draw Request Inspections; and

    • prepare Change Order requests.

 

Here’s a breakdown of the 203(k) Consultant application process

 

To apply for placement on the FHA 203(k) Consultant Roster, an applicant must submit the information listed below to the HOC in the area in which he/she will be conducting business. For detailed information on how to become an approved 203(k) Consultant, refer to Single Family Handbook 4000.1, Doing Business with FHA. The application information should be submitted in the following format. A list or resume documenting:

  • A minimum of three years of experience as a home inspector, remodeling contractor or general contractor. A state-licensed engineer or state-licensed architect does not need to document three years of experience;

  • State licensing requirements (remodeling or general contractor, home inspector, etc.). In those states where a Home Inspector or contractor is required to be licensed, the Department requires the applicant to be licensed and to provide proof of that licensing;

  • A narrative description of the current/prospective consultant's ability to conduct feasibility studies, review or prepare architectural drawings, use proper methods of cost estimating, prepare change orders, and complete draw inspections;

  • A certification verifying that the consultant has read and fully understands the requirements of HUD Handbook 4000.1; and

  • A 203(k) Consultant Roster Certification on their letterhead.

 

Once you’ve completed the application process, and you’re fully licensed, you will then be placed on a HUD Certified Inspection list. Buyers will be able to choose a 203K Consultant of their choice to work with.

 

“How do I build my clientele”?

 

Partner with residential Loan Officers who work at large financial institutions, as well as local realtors, including real estate investors, to build relationships. They’re a great referral source for your business and where a large percentage of your leads will come from. Relationship building is the key to being successful in this line of work. 

In essence, the 203K program is another way, to maximize your skills in the construction industry, while earning, additional revenue.

 

Ready to become a 203K Consultant? Don’t forget to purchase the “How to Start a Successful 203K Consulting Business” guide. A complete, detailed, workbook that breaks down business planning and development, along with marketing strategies to grow your business. This workbook includes:

  • Step by step guide to creating a business plan that will jump start your career

  • Learn the secrets to building key relationships with general contractors, real estate agents, loan officers, and home buyers

  • How to build your brand as an industry expert

  • How to create both online and offline marketing strategies that turn potential clients, into paying customers

  • How to set up email marketing campaigns that will maximize your marketing efforts

  • 25 ways to grow your brand using Instagram

 

$25.99

 

 

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