Published 2/25/2024

203k software, 203k loans, HUD consultants list

There are lots of consultants out there. Some are good consultants and some bad ones out there but they all charge the same fees. 

Over the last 30+ years we haver been training contractors and home inspectors to become FHA 203k consltants. What I have found to be true is that General Contractors are easier to train as consultants because they already to it. 

Why is it that they are easier to train. It is simply that a Contractor knows how to bid a job already. We just have to redirect them in the manner in which they must lay their bid out to present it to the client and the lender. It is important to note that when you are a consultant, you get paid to create that bid. Can you be the contractor and the consultant on a renovation loan? NO, at least not at the same time.

Not at the same time. So, what you can do is become an FHA 203k consultant and realize that you will be getting calls from lenders, homeowners, and you didn't do any marketing to get those calls. You just signed up for our training. So, you have some apopointments to bid a job now the fun part, the money part. Best 203k training you can purchase

You get a call for a 203k consultation or one of four other loan types that pay you to consult. You get to the project site, just like you would as a contractor. You meet with the borrower but the first thing you do is "collect your fee" up front prior to doing any work. How much is that fee going to be. Well, it depends on the size of the project. Here is a sampling of our possible fees:

< $29,999.99 - Fee will be $600 + mileage

$30,000 - 49,999.99 - Fee will be $700 + mileage

$50,000 - $74,999.99 - Fee will be $800 + mileage

$75,000 - $99,999.99 - Fee will be $900 + mileage

$100,000 - $124,999.99 - Fee will be $1,000 plus mileage

Over $125,000 - Fee will never exceed 1% of the construction cost + mileage

The mileage charge is based on all mileage over 15 miles each way and currently is $0.67 per mile round trip. So you collect your fee + mileage. Then you go over some paperwork with the client, make an inspection of the property, get a "wish list" from the client, a list of the items they want to add to the bid over and above the items you found that need to be repaired or replaced. This is a good living BTW. 

BUT WAIT! You want to be the contractor. Lets say the client wants you to be the contractor so they tell you that and you say, it is a conflict of interest for me to be the contractor and the consultant at the same time so I'll find you another consultant to take over that part of this project and I'm happy to be your contractor. If you get the job you get paid from the contracting end but need to give up the consulting fee to the new consultant and they will need to inspect the property and likely won't be adding any additional work because you took the course and know what they might add on and you already added it on. The loan can actually close faster than most 203k loans because all the pieces of the puzzle are in place. 

Our average consulting fee is between $800 and $1,000 + mileage. I have one going right now where the mileage is > $500. That isn't typical but it is possible. Is there any room for more consultants right now... glad you asked. The consutlant roster has had some recent changes and HUD has purged the list and dropped people from the roster due to their non response to a request for biannual recertifcation. That process is extremly essention to maintain your credential. It is also extremly easy to do. A simple letter on your letterhead letting HUD know you are staying in the business, sent to them every two years.

If you live in an area where you work in two or more states, you can add your services in as many states as you like with the first application. I'm personally approved in four states but can get approved in more should I ever need to do that. Are you ready to go? The investment is $999 and you will need software to format the bid to their requirements, we sell that for $999 but I recommend you purchase a 1-year license at first which is only $450 to see if you like it, then you can continue with annual software renewals or purchase a "forever license" for $999. It's up to you. 

Our training also includes a section on marketing and if you choose to follow it, you can get 10-14 projects going per week after about 6 months or working it, then it runs itself.