Hi there BP family!
I have a potential property that I need a few quotes on in Oxford, NC. I will be using a 203k loan so I need GC’s that are certified in 203k. Not sure how else to find referrals without calling 100 GC’s in the area, but I will if I have to. Hoping you guys can help me out! Needed for 2/28/2020
There's an online directory of Certified 203k Contractors. There you can find them. Just do an internet search for Certified 203k Contractors or Certified 203k Contractor Directory and you'll find it.
@Hyacinthe Canton your bank should offer you some GCs. Any licensed GC can do 203k work though in the state of NC. Im a subcontractor and know quiet a few GCs. Do be sure to vet your GC, a friend of mine just purchased a house using 203k and used the bank recommended GC, he did shotty work, only completed about 20% of the job and quit. After receiving almost 50% draw. So thats something they have to fight now. Be sure to check lots of referrals and quality of work
@Brandon Cooper thanks. Is there anyone that you would recommend by chance?
@Paul Welden thank you. I did that and ran into a few “half done” website directories. Is there a specific website you’d recommend ?
@Hyacinthe Canton possibly, i dont think he will even look at it if its not at least 50k in work but his work is amazing. Hes the only GC i know that may even go out that far as im in the Winston salem, greensboro area. His name is Nik Wilson with Wilson Homes
@Brandon Cooper Yes it’s definitely over 50 K. Thank you!
@Hyacinthe Canton give him a call then. You wont be disappointed with the quality of his work
@Hyacinthe Canton the term "203K Certified Contractor" is a bit of a misnomer. There isnt any HUD sanctioned agency that certifies contractors to be authorized to work on rehabs being funded by FHA. However, the lenders who are approved by HUD to underwrite 203K loans do have to approve the contractor you decide to use for the project. I'm not sure the exact guidelines for approving this lender, but I imagine it's very basic: current contractors license, liability insurance, business license, ability to submit an itemized bid, statement of work with milestone payments, and a clear understanding of how the draw schedule works.
There is an independent organization that has a database for GCs who want to get certified in this space: 203kcontractors.com. However, I live in Atlanta and not one GC is listed in this directory so I am not sure how much rigor is involved with vetting these contractors.
As far as how to find GCs with experience, I started with the lenders. HUD has a list of lenders who've closed 203k loans called the 203K endorsements list. Here, you can find all the lenders in your state who have closed this loan product, and how many they've closed in the past 12 months. If you start calling these lenders and interviewing them, ask them if they have worked with any GCs that they could recommend. I've gotten referrals from every one of the lenders I spoke to. Then I've interviewed all the GCs to make sure they were competent, organized, liquid enough to pay their crews until the draws were authorized, and not surprisingly, I needed to make sure they werent going to "man-splain" me because I'm a woman and a new investor. Keep in mind, you'll need bids from 3 or more GCs as part of the 203K project so find a few you're comfortable with. Some of them may even walk prospective properties with you before you put in an offer.
I've done a lot of research on this loan product as I'm looking for a quadplex to use it on currently. Feel free to reach out and chat about it. Theres a lot of nuance to this loan and having the details have made me much more prepared going into this complex but beneficial purchase approach.
I contacted BuildZoom. They vetted and referred several contractors to bid my 203k project. It’s still in process, but will post results after it is done.
@Latasha Griffin thank you. I am definitely interested in understanding the fine print. I’ll send you a message directly.
@Paul Weldon, thanks for the correction. Yes that's the site I was referring to. Atlanta is a very active city for renovating properties. For there to be one single contractor on this site is very peculiar in my opinion.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you