Having the ability to open up search criteria beyond newly upgraded move-in ready listings will not only create opportunities for quick equity gain, but it allows the agent to better server their buyers by helping them find the right home in the neighborhood and price range they desire.

Provided the REALTOR is working with an experienced FHA 203k lender, 203k contractor, and HUD consultant, 203k loans offer many unique benefits to real estate agents and their home buying or selling clients.

One of the real estate agent’s roles is to help their buyer find the best property and negotiate a purchase contract that provides the most value. 203k loans provide instant equity in most cases, and the buyer is able to save thousands of out-of-pocket expenses that they may have spent in upgrades after closing.

Having the ability to open up search criteria beyond newly upgraded move-in ready listings will not only create opportunities for quick equity gain, but it allows the agent to better server their buyers by helping them find the right home in the neighborhood and price range they desire.

Agents can leverage 203k loans as a marketing strategy when listing homes that may need minor or major repairs to bring it inline with the asking price. This is especially helpful when sellers do not wish to invest their own money in upgrading a home up front. This also saves a seller from a fire sale when their listing is uninsurable for traditional mortgage loans due to major required repairs.

A shorter buying / selling window is a hidden benefit to the real estate agents who keep in contact with their past clients. A typical homeowner will sell every seven years due to the amount of time it takes to generate equity in their property. However, a 203k loan may speed that process up and help the buyer continue to move up in property size and price every three years. This is a wealth building strategy for the buyer that a trusted real estate agent can benefit from financially as well.

Real estate agents are working extra hard to establish their own unique value proposition as buyer and sellers leverage technology that promises to streamline the transaction process and replace the traditional roles and commissions of REALTORS. Agents who understand how to provide their buyers and sellers massive value through 203k loans will be protected from the commoditization of the iBuyer real estate trends. 203k loans allow agents to shine as contract negotiators and local neighborhood market experts.

Video Transcript
FHA 203k’s, one of the questions we got is, “Why do buyers’ agents love this program?” Now, it’s kinda pretty funny. A lot of times, an agent in general is not a huge fan of these programs and the reason why is because they’ve had a bad experience. So, it’s kind of a loaded question, right? So I totally think that if a buyer’s agent is working with the right lender, and then right HUD consultant, and the right client, who’s willing to invest in doing this type of program, the reason the agent’s gonna love this product is very simple, right? Because, your client can create instant equity and a home that they love. Imagine the fact that a homeowner is going to buy or sell a home every seven years. And typically, the reason is take seven years for them to be able to make a move is because that’s the amount of time it takes for them to create equity within the property, and also for appreciation to kick in, so that they are able to have money to be able to put as a down payment on their next property. But if you’re using a renovation loan and you’re creating instant equity into that property, and all the sudden you have ten, 20, 30, 40, $50,000 in instant equity, and you now can shorten that window from a seven-year window, let’s say down to a three-year window or a five-year window. You now have taken that client and now moved that cycle up, so now you as a real estate agent, now have the ability to potentially get a listing, and another purchase, in a much faster time period. So as an agent, wouldn’t you consider that a win? As far as I’m concerned, that means that’s why an agent should really love this program, because they’re able to do that. Now, the other part of the reason why the agent should love the program is, if you have a client that’s creating this instant equity, they’re getting this beautiful home that they’ve helped create, isn’t that gonna help you create more referrals? I think it’s a no brainer. I think it’s a guarantee that you’re gonna get that, and I think that’s a huge reason why agents in general should be huge proponents of the renovation loan, and figure out how to make it work within their business cycle. And the best way to do that is find an experienced lender that really knows how to do these programs. Find a good HUD consultant, and find a group of contractors that understand the program as well. The key to success with the renovation loan and a renovation project is building your renovation team. If you have the right team, you can be successful, you can have it be successful for your clients, and you can have it be successful for everyone along the way, and it ultimately, that is why agents are gonna love using the 203k. [Jeff] Listen, thank you so much guys. I really appreciate you being here today on this podcast and this live. Renovate this.