Differentiate​ & Grow
Renovation loans are an important solution for savvy realtors.  You'll find these loans can meet a multitude of real estate needs.  Your expertise & resourcefulness will sway more clients and drive more solutions in a demanding real estate market.
San Diego county employs thousands of realtors.  Differentiation should be an important objective.  Mastering renovation loans clearly set you apart.  Although not for every buyer, positioning renovation loans as a buying strategy demonstrates expertise, professionalism and resourcefulness.  Realtors should embrace any opportunity to differentiate themselves in the marketplace.

We also feature our customize Marketing Kit.  It includes collateral, digital media for social & email marketing.

Lets look identifying Strategic objectives and then develop an Action Plan.

Strategic Objectives

Let's take a look at developing a successful strategy to grow your business in a path less traveled.
Learn - You don't need to be an expert, but need a fundamental understanding before you can recognize opportunities  & communicate benefits to your clients.  You can start with US.  We have a saved webinar that gives you a basic understanding of how the loan works and where to renovation loans are ideal for real estate needs.  
​Teamwork - You'll need to develop a solid experienced team before you engage your client.   Teamwork is essential in a successful real estate transaction.   You'll need connect with lenders, consultant/inspector and contractors as part of your team.  Seek experience, knowledge and synergy.   The good news is we have 
Market - You can create separate market strategies for your clients.  You can immediately position these solutions to your active buyers.  For past clients, you can create an emailing/mailing campaign and then a warm follow-up phone call.  You can make a distinctive impression with your knowledge and custom collateral to win more future clients.  We have collateral to get you started.

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Action Plan

 Let us help take the guesswork out of implementing your strategy.  Lets examine specifics to achieving these goals.
​Teamwork - Have your team in place before you engage your clients into this buying strategy.  Lets look at specific qualities in developing a successful team.  

• Lenders - Interview your existing lender relationships.  You also seek new lenders to get a good perspective of a good team player.  Look for experience, enthusiasm and specialization.  It's also advantageous to work with direct lender versus a broker.  Direct lender's resources will more timely and accurate.  
• Inspector/HUD 203k Consultant - Once escrow opens, time is of the essence.  Bring on your FHA inspector and/or HUD consultant as soon as you open escrow if not before.  Renovation loans require a consultant to identify health & safety or deferred conditions.  These conditions must be included in the construction bid.   If not, you're at risk if the FHA appraiser calls out conditions requiring contractor to rebid and lose valuable time during the contingency and escrow time limits.  Visit our Resources page to search for a list of active consultants. 
• Contractor - The contractor is the most important team player.  They should have experience with renovation or construction loans.  Contractor will need to have knowledge and agreeable to the process determined by HUD or Fannie Mae. One key issue with renovation loans, is that funds are only release upon verification of work through draw inspections.  This means they must have working capital available throughout the loan.  Check our contractors instructions on our Resource page.  They must be vetted for credentials & quality of work,  Its real important that the home buyer makes the selection of the contractor.  Interview several contractors.  You can search for license and insurance credentials on Calif contractors license board.  

Inventory Search
Identification of inventory for renovation loans will have a unique approach.  We're not looking for move-in ready, just the opposite.  Property that is "sitting" on the market due to condition issue, is a good target.  Ideally with a cooperating seller.   Consider properties with conditions issues, like worn furnishes, deferred conditions or bad curb appeal.  Once locating a suitable property, approach and qualify a cooperating seller.  One of the challenges with renovation loans, requires a construction bid, a work write-up documentation before an appraisal can be ordered. Don't negotiate a short contingency or escrow. 

Here are some ideas of conditions that would be suitable

• Properties that sit on the market due to physical conditions like poor curb appeal, worn flooring, outdated kitchen & bathrooms
• Deferred Conditions - Known or identified from home inspection where major components needs replacement that are costly & impairs the home from being habitable.
• Uninhabitable property - foreclosed, abandoned properties - These will require major renovation to become habitable. 
• Undesirable floorplans - Resulting from being outdated or modifications.  Also where its a 2 bed/1 bath and you need a master suite
• Zoned for multi-unit and available space - for addition of income properties 

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Marketing -  Grow & Differentiate your Business
​See our Kick-Start your Marketing Program.

Tips
The following are other important considerations to be aware of:

• Confirm the seller agent will cooperate with the process 
  • ​May need to extend contingency and/or escrow
• Value - Anticipate value on improvements
• Monitor Loan qualification - Purchase + construction bid  = 90% of appraisal