Rental Property Investor · Clarkston, GA · Member since 2012 · 2k+ posts · 1k+ votes
6y
Hi Luke, OI've done maybe 6 homestyle rehab loans for rentals. Its a good deal. BUT forget GCs on the bank's list. Those guys gave me insanely high bids. And GCs are hard to find, certainly ones who will give lower bids AND do the work fast. So many horror stories about GCs tearing up the house and disappearing for months.
My best tip is to join the local REIAs. REIAs are where more experienced investors hang. Google real estate investor association. I joined them all. Each has their own personality and value. I ended up just keeping GaREIA FWIW. They have a google group/email list to ask for contractors and other questions.
Have you checked BP's contractor section which is new?
Rental Property Investor · Clarkston, GA · Member since 2012 · 2k+ posts · 1k+ votes
6y
Hi Luke, OI've done maybe 6 homestyle rehab loans for rentals. Its a good deal. BUT forget GCs on the bank's list. Those guys gave me insanely high bids. And GCs are hard to find, certainly ones who will give lower bids AND do the work fast. So many horror stories about GCs tearing up the house and disappearing for months.
My best tip is to join the local REIAs. REIAs are where more experienced investors hang. Google real estate investor association. I joined them all. Each has their own personality and value. I ended up just keeping GaREIA FWIW. They have a google group/email list to ask for contractors and other questions.
Have you checked BP's contractor section which is new?
Atlanta, GA · Member since 2019 · 12 posts · 0 votes
6y
Curt,
Thanks for sharing this information. I thought atlantareai.com was the only REIA group/s in Atlanta. I've been to many of their different meetings and I will definitely be looking into gareai.com and their subgroups now. Which subgroup is FWIW, I don't see a subgroup that matches that acronym?
As for the "contractors section" are you referring to the "Home advisor" app? I've started working through the app questionnaire before but didn't finish. I didn't know how it all worked. I have looked up construction companies in the BP company tab though. I got a GC from there to get me a bid on the property I'm under contract on. Two other GC's that came to the property are completely unresponsive to my inquiries for getting their bids. I then had a GC acquaintance I met at the "have and wants meeting" come out to give a bid, and the verdict is still out on that. I have to get a bid to the appraiser by this Friday if we are going to close on time.
Feels very out of my control and beyond frustrating, but I'm trying to work through it. Another possibility is closing now then doing a second mortgage or refinance with a Homestyle loan after we own it.
What I would love is to get an estimate by giving a GC a list of work that needs done along with pics and a sketch of the layout, sight unseen, because chances of getting in the house again are slim. Their estimate would of course be subject to change once they had access.
Do I need to become a member to get the email list?
Real Estate Agent · Atlanta · Member since 2019 · 2 posts · 2 votes
6y
Your challenges are going to be finding a contractor who:
1. Can churn out a general estimate quickly and without drawings. This estimate needs to include everything you want done to home. Once the loan closes, outside of the contingency amount, there is no going back to the lender for more money.
2. Is responsive to submitting information (formatted to the bank’s specifications) to your lender in order for the loan to fund.
3. Is licensed, organized enough to due enough with pre-planning to get permits secured within the first few weeks after closing so that work can begin within the first month of the loan closing (this is a lender requirement).
Rental Property Investor · Atlanta, GA · Member since 2019 · 82 posts · 68 votes
6y
@Luke Meeker I realize this may be too late to help, however, I am planning to use an FHA 203k product (very similar to Homestyle) to purchase and renovate a 4 unit in a few months. I have been interviewing GCs that were provided to me by the lenders I have also been interviewing. The GCs who were responsive, understood the 302k process and could support it financially, provided me with their license/insurance info and references are the ones I will invite to bid once I find a property I want to put under contract. So far, I have has good responses from a few. Private message me if you want their contact info.
Rental Property Investor · Orangeburg, SC · Member since 2019 · 73 posts · 16 votes
5y
@Luke Meeker
Hey Luke, hope all is I am considering doing the Homestyle Loan. I also live in Atlanta. Would love to speak to you and pick you brain about the process if you have the time.
Rental Property Investor · Orangeburg, SC · Member since 2019 · 73 posts · 16 votes
5y
@Latasha Griffin
Hello Latasha, hope all is well. I am going back and forth between doing the 203k and Homestyle loan. I saw you were in the process of doing the 203k. If ok with you would love to chat to get some tips on steps.