Happy New Year – 2018

Happy New Year

Editor note…

Happy New Year everyone.

It’s been three years since my last blog and I did not want to publish just anything so I’m letting you in on my biggest project in People, Places & Things history. In the coming months you will have information on the next phase of PPT and it will a dozy for everyone involved.

So please stay tuned, you will be pleasantly surprise. As a warmup, please read this blog posting as a sneak peak to PPT new focus in 2018.

(From September 15, 2017 blog posting)

My role as a HUD 203K Consultant

As a HUD 203k consultant, I keep getting calls from people, needing a 203k consultant but it’s at a time of either the client already has a lender and contractor or the client was told by the lender that they need a 203k consultant once their contractor quote comes in. Once I explain to the client what my role in this process, things become clearer. In order to navigate through this process, most customers wants to know what is a 203k Rehab Loan?

A 203k loan is an FHA Loan that allows you to purchase a home that needs renovations or just some updating and get one loan that includes funds for the purchase AND all rehab costs, inspections fees and even 6 month’s carrying costs. HUD does realize that most people cannot afford 2 mortgage payments or paying rent and a mortgage payment while you wait for the work to be completed. HUD allows you to include up to 6 months of your mortgage payments in your loan so you do NOT have to pay your mortgage out of pocket for the first six months.

Below is the process in getting your 203k loans from initial process to the completion of your project.

Site Visit

  • Consultant meets with the borrower at the site.
  • A general examination of the work to be done determines if the project is feasible.
  • If feasible, Client signs Consultant Agreement and pays the Consultant “Feasibility Study” fee.
  • If the Contractor is already selected, the Consultant meets with the Contractor to discuss the overall project, project expectations and document preparations and submittals.

Consultant prepares a detailed Work Write-Up which contains:

  • Clear, concise project specifications
  • Construction cost analysis
  • HUD required draw request forms
  • Preparation of contractor bid packages
  • Preparation of lender packages

Consultant delivers the Work Write-Up Packages

  • Borrower
  • Lender
  • Contractor

Selection of a Contractor by the Borrower

  • The Borrower selects a contractor. Borrowers should be aware that many lenders may have contractor qualification criteria. Some lenders maintain a list of contractors that have met their qualification criteria. Discuss contractor selection with your lender to learn about their contractor requirements. If you’re considering a contractor which has not yet been approved by your lender or has never done a 203(k), it is important that they are informed early on about the 203(k) concepts as it applies to contractors. The Consultant then meets with the Contractor to discuss the overall project, project expectations and document preparations and submittals.

Loan Closes

  • Repair funds are placed in escrow.
  • Remodeling begins.

Consultant Performs Draw Request Inspections

  • 1st Draw – Consultant insures permits were issued.
  • 2nd and 3rd Draw – Draw request inspections are performed as work progresses.
  • 4th Draw – A punch list is established.
  • 5th Draw – The project is closed out and warranties and lien releases collected.

This process will work with a “Fannie Mae Homestyle Loan”, more information on that process will coming in my next blog. Your loan process should be as clean as possible and my job as a HUD 203k consultant is to be sure to keep it that way.


Happy New Year – Neighborhoods

How to define a “Neighborhood”? The Webster dictionary terms it as

A: the people living near one another and
B: a section lived in by neighbors and usually having distinguishing characteristics

When a house gets strip or gutted, it affects more than just the property value. It affects the community and the City surrounding that community. It affects the family that invested its blood, sweats and tears into the house of their dreams, only to see the vacant home next door get vandalized. It effects the City, due to the fact that the city needs families to move back into its neighborhoods to repopulate its tax base. The City needs a stable home market to maintain its communities.

How a neighborhood looks can be deceiving, just look at the one of most impoverished areas in the country the Brightmoor Community.


This community on the west side of Detroit has burned out shells of homes that was once populated with many families. Acres and acres of vacated land that is waiting to be repurposed.

There is a lot of blight, but if you look at the residences in this community, you will never know it. They are as prideful of their community as you will see in any community in this country. They have boarded up some of the homes and painted pictures of the board to make the blight not as noticeable. They started urban farming and they have made parks out of some of the empty lots. They have found creative ways to make where they live more pleasing to the eye. They have found a way to make a negative situation more positive. What they have done says a lot about the people who live in the Brightmoor Community.

If we continue to let the undesirables have their way in our communities and we don’t do anything to stop it, then you reap what we sow. Remember: Brightmoor did not look like this years ago.

From my point of view, a neighborhood is what you make of it. It’s about what people in the community think of themselves and what they think about where they live. I was brought up to believe that where you live and how you live is a reflection of who you are as a person.


Happy New Year

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