How to have it and Then Some – Your Most Affordable Property Buying Power 4

Your own property is the most valuable asset in your lifetime. It’s not because it’s a big ticket item to purchase that makes it most valuable. Moreover, it is not most valuable because you take years to pay it – not every buyer does. As a matter of fact, it is because it is so valuable an asset that’s why you get the affordable terms.

Think of your core reasons for shelter and security and you will see many ways you have been taking such an asset for granted. Reflect about it; what other big ticket purchase that you get to finance with low down payments. What other asset protects you from the environment, appreciates in value while keeping you comfortable. You can customize it the way you please and in good times – it is more equitable than any bank’s savings account.

According to the Mortgage Reports

“In general, the FHA 203K program has more flexible guidelines for the borrower. But, it has stricter guidelines for the property.

For instance, borrowers can have lower FICO scores and higher debt-to-income ratios. FHA loans in general are more lenient than conventional loans in this way. But the property must be a primary residence, and “luxury” improvements cannot be financed.

The conventional HomeStyle® loan, on the other hand, allows you to finance primary, vacation, and rental properties. In turn, it requires higher credit scores and lower debt-to-income ratios.”

Seeing Those Low Priced Properties But Can’t Buy Because They Are Hard To Finance?

“Property is sold as-is and your financiers won’t do it” is what you will hear when you show interest in the low priced houses on the market today. Don’t think that means, that price is not for you if you don’t have 20% of the price as down-payment and another 10% for closing. To the affordable home shopper like you – that does not seem so affordable anymore. Find representatives who are in the know. Don’t despair or give up on your dream for homeownership.

HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
HUD is working to strengthen the housing market to bolster the economy and help buyers like those whom do not have a lot of cash to afford a reasonable priced home and improve it comfortably. One of HUD’s products is the FHA-203K loan program that applies to two levels of any property’s physical needs assessments. Contact us for more information and ask any questions that come to mind. Provide confidential information about your desires.

The loan is for acquiring the property and paying for the reparations and/or improvements so you will have one mortgage repayment schedule. It consolidates a loan for your right to own the property with a loan for improving same property. It is all done up-front during the purchasing process. Like all mortgages it is dependent upon your credit and income qualifications. The benefit is; it makes your housing purchase still affordable because there are two levels to the program’s assessments.

The 203K Standard loan is for the bigger projects which involve structural improvements and expansions such as room additions. The 203k Streamline has a reparation cost not-to-exceed $35,000.00. In today’s prices, you may renew the finishes; modernize your kitchens and bathrooms with new countertops, cabinets, plumbing fixtures, paint etc. You will need some ideas of costs when doing you PNA (Physical Needs Assessments).

So before you hire a contractor to go around with you while you are looking at properties, financing will require a formal procurement process with certified estimations and agreed schedules from HUD’s 203K registered constructors. The 203K mortgage loan is great for any one property that’s 4 units and less. You will need to occupy the property as your primary residence while letting tenants occupy the other available units if there is more than one. The important thing is to work with an agent who can help you find your F.O.C.U.S. so you can weigh all your projected costs. After you have gotten qualified and nailed down your budgets, them at you can get the best prices from constructor when they compete for your project.

Whether you are borrowing from a participating bank or a qualified mortgage company the underwriting guidelines for you are the same FHA product. There will be two Appraised values to the property. One is for the property in its “as-is” state (before), and the other is the improved value projecting the repairs (after). Your mortgage payments and loan amount will be scheduled from the “after” value. The first is to ensure you are agreeing to a reasonable market value and the latter establishes the value of your hard work.

Once you are preapproved for FHA borrowing, it is not any harder getting for the 203K loan. However the offering price for the property you like must be less than your maximum which is based on your adjusted household income. Sellers and their agents will require you specify that you are using FHA-203K loan financing. Otherwise they tend to ignore your offer. Most sellers want to settle quickly so they will wait for buyers with conventional financing.

When you have your F.O.C.U.S. ©, it will have your list of repairs that are to be done. The repair funds are given in draws and phases. For the smaller 203K Streamline loan, you get two draws and you work directly with the contractor. Naturally with the larger 203K Standard, you get up to 5 progressive funding scheduled and reviewed by a HUD Consultant overseeing the constructors and the lender. So you will be ensured to have the property you desire.

Again the benefits are to get accurate assessments and projected expenditures in line while you are previewing properties. Most contractors do not get involve with shopping for your property. Getting friends to do the work is not a reliable option. It isn’t a good idea because they can’t get the work done ahead of getting paid even though they can “do-it-for-less.” There are qualitative and quantitative differences between contractors and constructors. It’s better to use 203K experienced contractors who can work within the framework of the loan. Friends and relatives used to be allowed to do the work, but it caused nothing but problems so that went away.

Rodwell Building Services work with a compendium of lenders whom does both the 203k Streamline and Standard loan, than select the contractor obtain estimates and turn them in to the lender and it’ll take off from there. When it’s F.O.C.U.S. correctly in the beginning and you have us in your corner, you will acquire the property to your order.

Like us or follow us on Facebook: Next time we will tell you about the Energy Efficiency programs from both US Housing Urban Development and US Department of Energy that will benefit you. Bank of America has bettered the FHA program by offering great interest rate loans with as little as 3.0% down payment. Consequently, the opportunities for owning and affording your solution to your core needs are even better. Subscribe to newsletters and blogs to be in-the-know.

Modern Kitchens In Classically Renewed Houses

Winter’s cold and snowed-in days can make you appreciate your custom home with a modern kitchen so well.

Winter’s cold and snowed-in days can make you appreciate your custom home with a modern kitchen so well these days, you might even be anxiously looking forward to your first Spring Cleaning in your own custom home.

The center of your home is the kitchen. With the exception of excreting your bodily waste, you can do all the other functions you have a special room in your home.

Think about it! It hasn’t been such a long time ago when outhouses were the modern practice, people lived in one room. There wasn’t a need for mechanical rooms – the fireplace was for cooking, heating up the house and boiling water for your bath. Off to sides and up in lofts the beds were there in that same room for cozy comforts. The dining and sitting areas were also central to that same room so there was no need for another room to your home during those times.

My point is that the kitchen is still the center of the home and will be for a long time coming. Have you noticed the new houses on the market now? Agree; the kitchens are opening up again and they are getting some very elaborate distinguishing features.

Kitchens did not get more unseen over the yesteryears. As a matter of fact
when maids, nannies, servants and butlers were common to the housekeeping responsibilities, the kitchen was placed behind the scenes from the braggarts who could only be seen more affluent by the size of their hosting parties, dining and entertainment rooms. However behind the picturesque of high-end, well-run homes were equally efficient kitchens. Kitchens were rarely seen but most integral nonetheless.

Nowadays you can see the kitchens coming back into the forward scenes. Most designers are opening up the floorplans so the kitchen areas are more of the appeal to buyers. And on the social scenes, many people are visiting with their friends who are preparing large meals just so they can spend the time conversing and sipping. Yes, I have a television set in my kitchen and there is a sofa and stools for making food preparation chores seem less laborious and more entertaining. More people who thought it was stylish to say, “I can’t cook” are making efforts to meet-up at related projects

That’s enough of why kitchens are important. Let’s get back to why you will like to have your own custom home with a modern kitchen of your choosing soon. We may even show you some resources readily available for you now even if your “home savings account” is less than 5% of the cost of the dream house you are imagining.


nowed-in days and slowly making comfort meals is when you can appreciate custom homes with modern kitchens. You can see the potential of something that few others can. It gives time to reach out to our community members and see how they are enjoying their customized properties.

M. Jones expressed, “Years ago, we purchased a vacant house that had been on the market for over a year, and we made it into our dream house. All that took listening to your insights and contracting with those reliable constructors. Your strong vision made it a very great deal. We still love it now, Rod!”


pgrade your preferences! With great advantages in buying a fixer upper and having your home upgraded to your taste and design preferences. You can decide what types of tiles to use in the bathroom, or how you want the floor plan designed. RodwellBuildingServices knows the varying distinctions of the National Capital area markets and how to estimate and project those costs based on your specifics. So hire the professional real estate agency with the experience to work through the processes efficiently and effectively.

Rodwell Building Services is always assisting you when your contracting professional has issues dealing directly with constructors. We also help keeping everything on track, and facilitating the contracts and escrow to a successful, smooth close.

Take Advantage of a 203k Mortgage Loan or a HomeStyle®. Both programs are federally insured and equally laden with governing regulations for you, your lender, your constructor, and of course us. That’s why we make it our specialty. The affordable FHA 203k loan allows homeowners to buy a home and finance the renovations it needs all into the 1 mortgage loan. There are many benefits to taking advantage of this loan. Existing homeowners can make renovations in a timely fashion without reducing their own cash reserves. However we prefer working with new buyers because an empty property reduces obstructions and delays. We believe it’s a false-economy to comprehensively overhaul your house while you are occupying and living inside it. With our way you can own it and redesign it before moving into it. It will be very BRNAD NEW! Your branding at that too.

Use the professional real estate agency with the experience to work through the processes efficiently and effectively. Assisting you with your financing professional issues – you are never alone trying to create the home you always desired. You will have to deal directly with Loan Officers’ requirements but we can assist you with coordinating your contractors and your HUD’s Consultant on your behalf.

Create the custom home you deserve and you too can enjoy comfort foods when the weather tells you to slowly cook in your bright and luxurious kitchen. Make that one of your resolution for this New Year! You can start your FOCUS Consult here!

How to make your own customized house with all the comforts and features you want…and have it the way you love your home…5 Architecture and Style

How to make your own customized house with all the comforts and features you want…and have it the way you love your home…5 A redevelopment project using a FHA 203K and Fannie Mae HomeStyle® Renovation Mortgage Financing for your Architecture and custom Style.

Within the real estate development industry, I am amazed at the amounts of misinformed people attempt to amass a lot of properties and what is more amazing is the same tried and failed mediocre methods they practice over and over again. There are many non-greedy avenues that they can take but everyone seems to want to use the same quick reckless method to investing in real estate.

It’s true! Real estate is one of the surest means for investing in today’s economy. Most people have made fortunes and some gone into becoming president of the United States of America with their wealth in developing ideas. However the average Joe fails to see that it is not a simple buy-low then sell-high business.

Fact is real estate cost will continue to rise. It’s just that simple. People consume space and the right to space is real estate. The world’s population is growing and the world is not manufacturing any more space. It’s no surprise that the real estate developer of a president lessen the protected lands for more demands. It’s not like there are more land space available for the increasing population so real estate prices will continually demand higher prices. So if you buy it at a $100 today and the economic conditions and inflation raises; say, 3% then the real estate will worth $103 next time. Of course demands for the property also determine the price. So, for my money and any frugal and savvy real estate developer knows you should develop the value of the property by increasing its demand. Many investors think that they can buy into an area of high demand and clean up later. That’s just false economy and at best the investment is based upon inflation and cost of living. It’s stable growth return but not what developers do.

That was some no-nonsense examples. You could earn a doctorate degree in economics if and when you try to bring it into accord with University standards. Nevertheless the point is; you can be very wealthy developing real estate but it requires the developments. It is not just buying a whole bunch of property like some of my sphere did 9 to 12 years ago. They bought properties as it was easy to finance, then they would rent them or hold mortgage notes on them. That’s fine but if they did not do any physical developments, when the economic pendulum swings in the other direction all they will be left with are carrying cost for over inflated properties. Can you see how recessions get on the way?

Anyway let’s get back to the drawing board. In proceeding posts of these “How to make your own customized house with all the comforts and features you want…and have it the way you love your home”. In this post we will use a specific property that has met the preceding criteria so you can experience this “How to make your own customized house with all the comforts and features you want…and have it the way you love your home” objectively and because this is FOCUS on developing the product (the property in this case is the product) although it is #5 of the series let’s name it “Architecture and Style”.

Most of our blog posts are general real estate information so we should introduce you to a specific property. It is in every way in distress. Clearing the lien to having full right to this property will cost ($582,000.00 less Short-Sale15% is $494,700). The location is under marketed. Almost hidden and strong communication is underway so it will be much known as of now. Strong market response is available but the property is not in any condition for a mere fix-then-flip as you can imagine. The truth is, mediocre redevelopers would only see it viable if they could acquire it for $300,000 to $330,000 as they could renovate it with around $100,000 to $150,000 and then resell it for $600,000 to $650,000. After taxes and other appurtenant fees they would net around $60,000 to $80,000. This is not poor for 6 to 9 months of work. Of course the controls are what will make projects such as this undertaking be more fruitful. Any shortened step in any of the processes and you can see how easy one could lose the profits and may even have to spend more to exit the deal. You would require much experience to see much more viable options for making similar redevelopment projects most lucrative. Rodwell Building Services is organized for adding value to any real estate developments.


Successful buyer/redeveloper would only have a $730,000 mortgage to repay?

Did that sound too good to be real? Most redevelopers won’t realize those margins because they are reselling the property immediately and paying lots of taxes. They would also just repair the property as it is and not maximize on a most valuable use reconstruction options. If you were redeveloping as your primary residence, you could realize those benefits in no time and you could maximize its use by making it into a multifamily primary residence dwelling for yourself. If you are keen on mortgage financing and real estate investing you probably realize that in 15 years the property value would have doubled and you would have more equitable position than the principal debt you originally borrowed. So remaking a distressed property into a property of higher demand is the most lucrative strategy.

First you will discover your requirements when you start your FOCUS Consult. You will also learn what your needs are in comparable to what kind of properties that could suit those needs and position your desires available for you. Then you will learn of what features of your needs and desires are considered as higher-demand properties. As an example, let’s use the model distress property previously discussed. Yes! That one shown in picture is 3004 Perry Street, NE Washington, DC 20018. It is not an average quick repair or fast renovation candidate so the opportunity to greater customizing benefits with little to no competition makes you the driver. The renovation mortgage loan numbers will provide more equity for the custom homemaker than for a fix-and-flip reseller. Furthermore, the renovation mortgage lending programs are for primary residents.

Several colleagues foul up the real estate process thinking that you only need a renovation mortgage loan when your proposed purchase needs repairs. I say that is nonsense and here is why. Simply, it isn’t frugal to buy property that is in disrepair and with some features that barely fulfill your custom needs. Furthermore you will have to extend added financing to repair the same under-customized property. Why would you do that when the same process can make your own customized house with all the comforts and features you want…and have it the way you love your home.

Get your favorite beverage and find your favorite reading place!

You will need to read this through. Subscribe to our posts because this may take several publications. What I am venturing to do is show you how real estate development plans are done by the definite real estate developers. I will quickly draft you a plan and this time I will use the specific property that I am promoting and I will write it to you so you can realize what real estate developers do to make big margins are quite simple you should be able to do it too.

These are similar plans I projected for bigger companies and government agencies daily while I founded Rodwell Building Services. I have contracted work with some of the biggest development companies in the world. So find these experiences beneficial and available for you. In his book “the art of the deal” have you ever wonder why he called his architects first after he acquired the abandoned warehouse. That author and now President of the United State did not acquire a billion dollars’ worth of real estate for becoming a billionaire. Fact is he bought several million dollars of real estate and turned them into real estate valuing several billion dollars to earn his billionaire status. Nevertheless, with any of the residential programmed renovation mortgage loans we are discussing herein, you won’t need to hire architects and engineers. Each program certifies local constructors for them to work with you.

There is a well-defined system for developing real estate. All developers use borrowed money to finance the development. So even if they have deep pockets they lend their projects the money from their own pockets just the same. There are ways to evaluate a development project that lenders will need to consider. All a primary residence redeveloper has to do is qualify to borrow a 203K or a HomeStyle® mortgage loan financing for your custom home acquisition and simultaneous customization before moving in your family. However the principles are available and you should consider your project in similar terms.

Your objective is to use a realtor that can guide you through everything expeditiously and my objective is to offer you just that. You will need to think of your project as a real life executive would. Even though you may not sit in front of your banking loan officer because there are many 203-K or HomeStyle® Loan Officers for residential mortgage lending available to you, the programs are very well defined but you should have your project summary at the tip of your fervor.

If you are looking for financing partners an Executive Summary is highly recommended. When your project is going through a renovation mortgage loan program you should still have it in mind or written in your notes. It can be complex depending on the size of the project. Simply, an Executive Summary reads: This project proposal will explore the highest and best use for a residential redevelopment project located at 3004 Northeast Perry Street, Washington, DC 20018 in the neighborhood of Woodridge just bordering historic Mt. Rainier, MD.

The site area includes 3 parcels of land totaling 4,902
SF. The property was purchased in 2006 by Mr. and Mrs. Flowers. In 2008 the inflated mortgages strained the family’s relationships and caused the Flowers to divorce and separate themselves from the property and making no further effort to modify the mortgage. Today the property is in eligible for Short-Sale as the mortgage servicer should have responded earlier. The effect of the financial crisis and a mortgage that is 8 years old and the site available for sale, buyers are interested in acquiring and redeveloping the property into a custom home for our family and two apartment units for adding household income.

The best part of an executive summary is the appetite wetting statement that is important for getting financiers more interested in your proposal. It is not so essential to prose this in the residential sphere because you are the only person to know that about your plan. However let’s state it again just so you can recognize it on your own. For our specific project the appetite wetting conclusion of the executive summary would read: We are securing $750,000 renovation mortgage financing for renewing 3004 Northeast Perry Street, Washington DC into a $1.3M triplex for a primary residence with two separate rental units for additional property owner’s income.

After the executive summary you should be able to tell a Site Overview. It’s like a map and a topographical data you see when you see a real estate listing online. Professional real estate developers would go into more details. But do not let that throw you. You can use a Google Map like this:

The project site is located in Woodridge, Washington, DC with ingress and egress located on Eastern Avenue and Perry Street one block north of Rhode Island Avenue (US Rte 1). The triangular shaped site is bounded by Perry Street and Eastern Avenue to the apex and backs up to vacant land controlled by the National Park Service.

The site currently has the base structure that requires comprehensive reconstruction before meeting the current building construction and housing codes adopted by Washington, DC. The location offers prime detached residential frontage along the border of Mount Rainier, Maryland and Woodridge, Washington, DC and is ideal for higher end residences due to its one bus ride’s proximity to any of 3 Metrorail Stations and local restaurants, retail, and small businesses.

You will need to show an ownership history of your proposed redevelopment so a realtor can help you get that section Ownership History or a title search on your particular property before going through closing. Rodwell Building Services has such ownership history for the property but will not show it here.

You will need to do a Location Analysis for your redevelopment project. For commercial redevelopment and larger projects requiring investors to partner with you, you must show some logistics that will highlight how the location will best serve the businesses that will be located in the site. Since our subject site is a primary residence, we will get off with understanding the site’s proximately to notable spots in the Washington Metro area. Listed are driving and metro commute times from the subject site.

Reagan Airport is 30 minutes’ drive non rush hours and 24 minutes by Metro Rail. Union Station is 23 minutes by bus and train from Rhode Island Avenue Metro Station. Verizon Center is about 26 minutes. The National Mall and other points downtown central are about 38 minutes due to traffic congestion.

Now that you deal with the site and the location and showing proximities you will be required to deliberate on Construction: The development will work XYZ Construction Company as the General Contractor for the Project. You will need to show they have experience constructing similar projects to convince others that you have selected the best. However, for residential 203K or HomeStyle renovation mortgage financing, the US HUD provides you with listing of prospective constructors whom are able to front your redevelopment and not let it run further than 6 months. They are all over the community and if you select a constructor that is not listed, they will need to provide credentials before approvals for undertaking your redevelopment.

Building and Site Design is up to you when you are redeveloping your primary residence as in the cases of using 203K and HomeStyle mortgages. Again, if you are dealing with a commercial or a larger project not for your primary residence, your architect will produce the documentations describing the building and site design they prepared for your project. Of course there will be plenty of specialties under that scope such as engineers and a landscape architect will design the outdoor spaces and incorporate a mixture of bushes, trees, grass, and flowers. The overall concept must be written to provide readers with vivid depictions of what you are proposing.

Parking Requirements, Financial Analysis, Site Acquisition Costs determined by two approaches: 1) Value appraisal provided by the jurisdictional Real Estate Assessment; 2) Comparable property sales or CMA, Real Estate Taxes and Hard Costs are some of the reviewable components required in any real estate development proposal when it is not using on one of the renovation mortgage financing Rodwell Building Services specialize in assisting you. If you are thinking it could be as complex as a Business Plan is because it is just that. Any real estate development or redevelopment project is a business plan and rightfully so. Your redevelopment project for your primary residence using either the 203K or HomeStyle renovation mortgage financing is designed to convene the primary resident so make the most of it for having your custom home.

The reconstruction cost for renewing 3004 Northeast Perry Street, Washington, DC is estimated at $247,414.00 added to the approximate $500,000 Site Acquisition Cost totaling $750,000. Affordable residential construction recommends the structure to be constructed of stick build wood framing as the existing one level structure already in place.  Stick build is substantially less expensive due to structural requirements and fire/safety guidelines and life cycle costs. A Reference – Construction Budget will be embedded on for download. You will need to register for a FOCUS Consult for access.

You must understand the Soft Costs of your development project and able to defend it as well. The soft costs cover construction expenses that do not include the typical “bricks and mortar” line items. Soft costs include expenses associated with marketing, legal, engineering, permits and fees, insurance, utility connection fees, taxes, architectural fees, organizational overhead, closing costs and environmental certification fees when you are dealing with larger commercial projects. Your 203K or HomeStyle lender allows a 10% soft cost contingency retention reserved to cover unforeseen expenses and emergencies and Rodwell Building Services charges a brokerage/construction management fee (202K and HomeStyle® development fee) of 8% is standard for projects under $1M. Please note that fee is applicable to the initial site acquisition price and not the total value of the project.

With all redevelopment projects, you will be required to show Equity Partnership Agreements or a joint venture agreement with a non-managing equity partner. That is not required for borrowing a 203K or a HomeStyle Renovation Financing application as any partners will be included in purchasing. Moreover, you will have to identify your Permanent Financing once the construction is complete and stabilization is reached on larger development projects. The beauty of the residential type renovation mortgage financing is that the amount for reconstruction/renovation/renewal is combined with the amount for acquiring the property. A structure must exist and you will borrow the mortgage as easy as obtaining a conventional FHA 203B mortgage. Bet you didn’t know that it has a number also?

The conclusion is that 3004 Northeast Perry Street, Washington, DC 20018 be redeveloped as a primary residence featuring two apartment dwelling units. Based on the FHA 203K and the Fannie Mae HomeStyle® renovation mortgage loan requirement, that is the highest and best use for the subject property in Washington, DC. Redevelopment factors that are vital to the successful custom home project are originating a buyer or group of buyers financially qualified for any of said renovation mortgage financing and Rodwell Building Services’ real estate improvement expertise. Basic conceptual designs were used for establishing construction budgets and the site acquisition cost is subject to further negotiations in the Short-Sale arena. Should any of those factors and if they were to change the project would need to be re-evaluated. The timing of the development is ideal for early start in 2018 and for completion by June 2018. The proposed redevelopment will contribute 2 units to the Maryland Arts District in historic Mount Rainier Maryland with address in the District of Columbia.

Now we have come a long way and as you were reading you saw where we could have gone a long way further with this topic. The series is now five parts and we have covered generalities and some specifics. The idea is that you will have to develop your property into more valuable property in order to be wealthier than you are today. That is the secret. It is not running out an purchase a lot of houses and let them out so the leases carry the notes and give you some extra income. That is almost false economy. As a matter of fact that was the trend that caused the recessions in 2006 to 2009 and the then president had to bailout the banks. All those rental houses sold at tomorrow’s inflated prices were no longer appreciated by either holder or tenants so the holders had to throw them back to the banks. That’s never a good thing for any economy. Banks are never property holders in the first place and second, they could never succeed holding undervalued properties. Period!

I will close before we digress into another peeve of mine… Don’t run out and hire an architect then ask for advice. Also don’t run out and hire a Realtor® to search for just any property. Your intention may be great at the beginning but you won’t get great options. An architect will tell you properties cannot be changed inexpensively and the real estate agent will show you a few properties then stop returning your calls. If you think it is smart to get your local contractor to view and analyze properties with you, I know exactly what they will say; if and when they accompany you at all.

Afterword: There are plenty successful real estate holders today. There is nothing wrong with buying property and hold it for the steady growth. However if you are going into that business, do realize that it is a business and it requires an operating plan and is subjected to operating costs and attentions also. Consequently, just holding the title to some real estate without improving its value is for the passive investor who buys it after you develop it. Real estate development can be very lucrative when you have the Rodwell Building Services systems in place. As always you should verify any undertaking you are about to do so I would like to hear your ideas. The pictures I have presented for the projected renewed property is for your imagination to explore. Actually the style and constructions could be to your unique vision. I have seen many modern large houses that could easily hold several dwelling units without detracting from the surrounding architecture so send me some pictures of what you think should renew our pet project.