All Forum Posts by: Maxwell Fontaine

Hey @Stephanie Choi, 

Some people really get scared about foundation issues because they COULD lead to some more framing issues. I personally haven't done a project with major foundation issues yet. I have had a patch up on a foundation and it wasn't all that tough. Tip! Look at the walls and drywall/ plaster if there are pretty wide cracks in them you might want to keep enough in the budget for strengthening the framing. Smaller cracks vice versa. 

Outside of the construction side be sure you get a builders risk insurance policy. JUST IN CASE. I hope that helped out a bit. And if you need any help with the insurance aspect feel free to reach out. I would love to help. 

Hey @Valerie Rogers If you have any questions about your insurance coverage and possibly help reduce your expenses please reach out. I am in the same area of your rental. 

@Mike Sola speak positively. If you are buying a multifamily dwelling its nearly never a bad move with an FHA. Congratulations on deciding to go that route. If the tools are there to use... USE THEM just know how first. Get a game plan together and a contractor that you'll be working with (they need to be licensed and insured) and you will be on your way. If you have someone in mind that you want to work with and they need insurance let me know and I will help out as much as I can. They need both in order to qualify for the FHA product.

Hey @Mike Sola

@Mike Sola@Andrew Webber is correct. The appraisal is done beforehand because you will have to get approved for the construction portion of the loan which is based on that appraisal. If you do find a property that will appraise for 110k and the rehab is actually only 20k and your purchase is 50k. WELL SIR YOU HAVE A HOME RUN. You just bought yourself a "free" house. The down payment is only 3.5% BUT once you add in the closing costs and all that you are close to 5.5% so just keep that in mind. Like Andrew said it is based on the 70k. Some technical notes if you do have a property like this example, you need to keep the FHA loan active for 6 months before you can refinance into something else.

AND you need to live in it to some capacity while using the FHA product. These are the reasons why i was saying its not friendly to the BRRRR strategy that some people follow to the T but yes it can be done.

I hope that helped a bit more.

To my knowledge that is correct. @Sai T.

Hey @Kristin Gomes, 

Just keep in mind you should protect yourself with a builder’s risk insurance policy. If you are doing your own construction and its vacant, or to use some hard money lenders a lot of times and to really ensure the private lenders position and strengthen your proposal, you should get some construction insurance. If you need any help with that aspect of it please just let me know.

Hey @Cesar Esperat Jr

Just keep in mind you should protect yourself with a builder’s risk insurance policy. If you are going to use some hard money lenders a lot of times need some construction insurance. If you need any help with that aspect of it please just let me know.

Hey @Jonathan Williams

Just keep in mind you should protect yourself with a builder’s risk insurance policy. If you are doing your own construction and its vacant, or to use some hard money lenders a lot of times and to really ensure the private lenders position and strengthen your proposal, you should get some construction insurance. If you need any help with that aspect of it please just let me know.

Hey @Francisco Jasso

Just keep in mind you should protect yourself with a builder’s risk insurance policy. If you are doing your own construction and its vacant, or to use some hard money lenders a lot of times and to really ensure the private lenders position and strengthen your proposal, you should get some construction insurance. If you need any help with that aspect of it please just let me know.

Hey @Nelson Del Castillo

Just keep in mind you should protect yourself with a builder’s risk insurance policy. To use some hard money lenders a lot of times and to really ensure the private lenders position and strengthen your proposal, you should get some construction insurance. If you need any help with that aspect of it please just let me know.