FAQ on HUD MPS What Your Buyer and Sellers Need YOU to know

As an inspector, we are always looking for things that could be wrong with the property. We're trained to look for cracks, for mistakes. Too many times we bear the burden of delivering bad news. But some inspectors have discovered a way to use their skills and talents to instead create a vision of what could be. To look for the good, to create opportunity and become the hero.

The 203k in a box program is the number one system for new and veteran 203k consultants. It's the place you can feel confident knowing you have a team of experts backing you up, that I'm here to hold your hand. You are not alone in this anymore.

We are rebuilding neighborhoods and giving communities new life one home at a time.

You deserve to be recognized as the hero.

Hello and welcome. Let me start right off by asking you a question. Like to ask you. Tell me how many of you here believe that a safe and sound home is one of the most important things that you can have in this world, in this life? Raise your hand and yes, I can see you. Or type in the chat box. Yes. Thank you. And let me ask you another question. How many of you believe that if you can receive a information educational training in a session like this, that if it has the ability for you to be able to utilize that information immediately upon learning it, that it's worth the time and effort you spend going, raise your hand or type in the chat? Yes. Well, thank you so much for joining and welcome to FAQ on MPS inspecting for HUD minimum property standards. Understanding what your FHA buyers and sellers want you to know. This is an important session and I just wanted to first of all let you know that today we're going to be going over information that is brand new and cutting edge in this industry, some information that might not even be known to those who are actively needing to use this in the marketplace right now. So get ready for a lot of fun. And the first thing I want to do is I want to thank you and acknowledge you for being here, for taking the time and effort and energy, not just for attending this class, but for committing to learning more and being a resource for those in the real estate market that you touch. And so I just want to basically tell you that I really appreciate and honor you for being a part of our event today. As Woody Allen says, 80% of success is just showing up. So now what I want to do today is I want to let you know that today we're going to talk about the FHA minimum property standards, where they're used, what the Information is that agents, buyers and sellers need and why you need to know this information in the current market for real estate today, I'm actually going to show you that you already know more than you need to know and that you actually know more than most about the FHA minimum property standards and how they apply in today's market. So this and all while having a lot of fun while we do so. But before I do that, before I actually start diving into the information, I want to ask if I can have your permission to tell you a little bit about my journey as a home inspector and a renovation consultant. Because I believe that you do not hear a person's words until you know who that person is. So let me tell you that I didn't start out as a home inspector. I didn't just come off out of college saying I want to be a home inspector. And while now in today's market there are a number of wonderful new people who are joining our industry right out of college. But most of us started the industry coming out of the process from transition from another industry. So please, in the chat box, in the webinar today, type where you're coming from. I actually put in some questions to ask you to say hi, you, your name and where you're coming from and if you'd like to put in what your background is that you came. This is going to be an interactive event. But I didn't come out looking like I was going to be the next great home inspector. In fact, I planned on becoming the next great Broadway star. And so there you can see me in my Chippendale slippers and standing there getting ready to be just excited about life. And I still am. But now I'm more so excited about the opportunities that I can share with you as a renovation consultant and teaching you things about how to help people in their experiences as home buyers and homeowners. So now what is my background? Well, I actually started out being in the industry owning a home inspection company for over 25 years. And thanks to a government contract, my company grew and exploded. I was a multi inspector firm overnight. I had created systems for training my staff fast, not from real estate agents. Orders came over the fax. You see, when I got this government contract, I didn't have to worry about marketing to agents. The government told the nonprofit counseling agencies to send me the orders in the fax. So for six years I had no need to market from 2005 until the contract ended. And at the same time the contract ended, the market meltdown happened and I needed to change the way I got business. I was a 10 year old company in the same position as a startup, but with anything but startup overhead. So I had to get revenue fast without time consuming marketing and outreach using the customary means that home inspection companies utilize. Going door to door from real estate office to real estate office, meeting at office education trainings, my term for presentations. Now those are all great and we do those now and continue to do so. But I needed to get the word out fast. So I took stock and I looked at where we were and what made us different in the market. You know the term USP for unique selling proposition. And I found that one of our most unique selling propositions were that all of our inspectors were FHA 203k consultants. We actually had a specialized and lucrative skill that was the amazing building tool of our knowledge of FHA mps. So with that knowledge of the NPS system and with a network of lenders who I had been working with as a renovation consultant, I partnered with one of those lenders and founded the Keystone Real Estate Academy. This was the quickest way to grow our business because with this real estate school we were doing CEU education trainings for real estate office agents in sessions of 2050 at a time. And by meeting them there, they got to see me as the recognized expert. And of course what did I teach them? About 203Ks minimum property standards, FHA appraisals, what to look for in a property. And our business was able to once again ramp up. So what I did was I had developed a system, a pattern of success that allowed me to be able to make 200 3K consultants out of anyone who had a good solid background as a home inspector. I had done this repeatedly in my multi inspector business. I was suggested by a mentor of mine that if I was able to pattern this success over and over, I should package it and offer it to other home inspectors, not in my own company. And hence the 203k in a box program was born. After training over 150 consultants, it dawned on me that we need to organize to create an association of like minded individuals. We actually could have a way to be able to share with the world or actually the United States, what we know and how we do things. And that this is the best way to find a consultant. And so with that, the national association of FHA Consultants was formed. And I'm very honored to be the executive director of this association and the jewel in our crown. Because the national association of FHA Consultants lives by the motto, the mission statement to provide competency, consistency and community in the world of renovation consulting. And the easiest and most efficient way to create that kind of consistency and competency is to develop an easy, web based, simple to use renovation reporting system. And hence was born the Genesis Rehab project creator. Literally the jewel in my queen's crown. Because I'm known as the 203k queen. So the Genesis is the jewel in my crown. So just to summarize, this is just a brief description of who I am and what I've done. And as I said before, I have successfully trained hundreds of renovations of home inspectors, contractors and other building professionals to be successful 203k consultants and all while over the past 25 years empowering agents, buyers, homeowners, contractors and inspectors just like you. So I'm really excited to be the person talking to you today and I hope that I'm able to share with you this information and I hope you now trust me as a reputable individual. Talk to you so the first thing that I want to do today, as we begin our conversation, is the first thing I want to do. I wanted to give you a little bit of a background, a quick history of what FHA is and how they function. So the first thing you need to know is that FHA is not a lender. They don't give money for mortgages. What they are is an insurer of individual of the lending companies who are providing loans to people who are that are marginal or somewhat risky in that opportunity. And so FHA does not issue mortgages, but they do have different products that they will provide the insurance. So what are those different products? The different products that they have are the FHA203B, which is the standard FHA mortgage. And this is the one that most people are familiar with when they say they're getting an FHA mortgage. All the items that are in that home must meet a certain minimum property standard as determined and reported on, usually through a report provided by an appraiser. And if it doesn't, those items must be completed prior to closing. Another very important element in another insurable mortgage that FHA has that a lot of people don't know about is the 203H. The 203H is like a 203 program. But the big difference is that this is a cash investment in the cash amount that they will invest on the borrower's behalf. You see, with the 203H, a borrower can get up to 100% financing. The original home must have been located in an area that's been designated by the president as a federally declared disaster and the home must have been destroyed or damaged to such an extent that reconstruction or replacement is necessary. They can rebuild the home on the existing property or they can get a new home in a totally different area. And this is a great program that allows for rebuilding, not renovation, but total rebuilding of the property. And guess who they need to help determine what those rebuilding efforts are? You guessed it, Renovation consultants. My favorite product, the 203K rehabilitation mortgage is a fully disbursed loan. By that it's escrowed the full amount of the rehab plus the purchase. And it allows a borrower to buy or refinance a property and establish the escrow account for the cost of the renovation. And because it's fully dispersed at closing, the loan can be insured by HUD as soon as the loan closes. And the mortgage, this is the great part about 200 3k loans is an amount based on the lesser of the projected value of the property and and after repaired or as is value plus the renovation. In other words, what that means is the value of the property is not what it looks like when you walk through the property on day one. The value is based upon what will it be worth after the rehab is completed. And this is a great program. My favorite thing and another program that we don't have time to deep dive today, but I will be offering to you in a future webinar is a training about the energy efficient mortgage. This is a mortgage that allows a borrower to be able to add to any of the other three FHA loans. The ability to add an additional mortgage that covers energy improvements whether excuse me, solar heating systems, geothermal, new thermal insulated doors, new windows, new high efficiency heating, no second appraisals required for this repair. And the borrower doesn't have to question qualify for this extra money so long as the utility bills and the cost savings in those utility bills is reflected by the new systems that are put in. An important element about the HERS rating, excuse me, about the EEM is that it does require a home energy rating score or a BPI audit that will give an estimate on what the cost projection of the value of the new systems being installed. So now that gives you an overview of what FHA is and what are the different types of mortgages mortgage insurance programs that will require a home to meet basic minimum property standards. The next question is what are the FHA minimum property standards? So now and who decides if a property is acceptable? These are the Most two important questions and a lot of myths around these two questions. So first of all, an FHA MPR or mps, it stands for minimum property standards or minimum property requirements. And there is no difference in the terminology. It's basically the standards are used for the construction of new homes and the requirements are what existing homes must meet. So that's the only difference between NPS and npr. And it basically is determining the condition of a property to make sure it is a readily marketable real estate property and eligible for FHA insurance. And those minimum property standards are used as a determining guideline when you are appraising the value of the property for the insurance, whether when you are trying to be, when a client is trying to qualify for a federal home ownership grant, anytime the government is giving any money, either in insurance or in a grant for closing costs, the home that they're providing the service on must be meet those minimum property standards. And also for underwriting and mortgaging for regular conventional loans. Many conventional lenders will use the minimum property standards to help determine what they're going to evaluate the property as far as repair needs, even for conventional loans. So now giving you that idea and an understanding that these are basic minimum property standards, I'd like you to take a second, actually one minute and pull out a piece of paper for me. And actually, you know what, instead of doing that, I'd like you just to write it down on the chat box. What are some items that you feel would be eligible for FHA minimum property standards? So what do you think would be an FHA minimum failure? Minimum property standard failure. I'm going to give you about 15 seconds to start typing that in. Begin. Starting now.

Excellent. And all.

So now that you've written those things down, let's check your score against the information I'm going to share. So first of all, the most important risk use of minimum property standards is for FHA appraisals. And as an FHA renovation consultant, or MPS evaluator, our job is to determine what the items are that the appraiser is going to be looking at when he or she comes to the property. The FHA appraisal guidelines have changed and they've gotten a lot stricter than they used to be. You and I all know that most cases we never thought or heard of an appraiser going on a roof, going up in an attic, or any of the things that we do as home inspectors and renovation consultants. But now FHA guidelines as of the initiation of 4000.1, and there on the Screen you can see the Hyperlink for the 4000.1 reference. These now include specific guidelines for how an FHA appraiser evaluates a property. So let's check what the FHA appraiser is needing to look at in order to evaluate minimum property standards. Let's compare it to the things that you typed into your chat box as far as things that failed to meet nps. So now here's the important thing. These are now required of FHA appraisers. They must ensure all appliances are operational and in order to do that, they need to have the water on. You have to have access to the attic and they have to be able to access it. They have to check that the water heater works. They cannot say that the inspection is referred to as an observation. They have to inspect. And if they are not willing to inspect, they have to request the services of a renovation consultant or a home inspector to confirm things. The roof that needs to be. Is there a roof? And if it has there in and the roof must have at least two years of remaining life. So if there is a roof that needs to be replaced within two years, it must be reported. So all roofs must have at least a minimum of two years of remaining life expectancy. Heating, lead based paint, which is one of the items someone wrote in the chat, the ability of no defective wiring, full exterior walls, undamaged safe drinking water, and on and on. And we're going to go through this. So these are the things that appraisers are now required to evaluate and inspect as part of the appraisal. But who is better capable of handling these types of assessments? FHA appraiser or you as a home inspector and hopefully renovation consultant? We're in a better position to do that because we're doing this now. We've been trained to do this. So let's look at some of the areas that we do this. So when we're talking about the FHA minimum property standards, we're going to talk about the exteriors, party walls, multiple units on a single lot and easement and access. So let's get into this. So whoops, hit the back way. So now party walls and detached units. Now if you look at this slide here, you can see that these are multifamily dwellings. And for an FHA insured mortgage, the property cannot have any more than four units connected to each other. Okay. On one purchase lot. They can't be. You know, you can have a string of homes getting an FHA mortgage, but you can't buy more than a four family dwelling in a single loan. And so a building constructed on or onto a property line or close to it must be separated from the adjoining building by a wall extending the full height of the building, you know, a firewall. And let's talk a little bit about easements, multiple properties on lot. So here's a situation where you have one home here and you have another home back here. You see the two mailboxes? That means these are two separate dwellings. Well, if the person who owns this portion of the property owns this portion and up and he decides to put a fence across this lawn here, then when he puts that fence up right here up against this wall, then that person who is trying to buy that property in the back, he would have be restricted from accessing his home. And that's not what you're looking for. So how do you do that? So you have to have what is known as a permanent use agreement that allows the person to be able to have uninterrupted access to that property at all times so they can access their home. And that's one of the things that an FHA appraiser and an FHA minimum property standard evaluator would flag as a home inspector. We wouldn't be concerned about easement or anything access. We're only concerned about the condition of the property, the lots, the grounds and the dwelling. And that's an example of how an FHA minimum property standard deviates from home inspection. So now let me ask you a question. How many of you, and type yes in the chat have had a situation where after you've done your home inspection, someone called you or emailed you and said, hey, you did this inspection. But the appraiser came up, asked for things that weren't on your report. How come? Raise your hand or type in the chat box. Yeah, exactly. Some of you said yes, it's because we are evaluating a home according to a different guideline. And today I hope you learned that fact so you can let people know my inspection is not meant to be a catch all for appraisal guidelines. So let's continue. So now when we're looking at the property, as you read earlier, the FHA appraiser must test that all of the systems appliances are functional and that the heater is operational and the water heater is operational. Well, you can't do that. If the utilities were off, you don't get access, you can't get that turned on. And so all the living units in the property must contain a continuous supply of safe and Potable water. It must have sanitary facilities and a safe methods of sewage. It needs to have domestic hot water as we talked about. And it's got to have electricity for lighting and in the home. Now here's the thing with the electricity. The guidelines for electricity is that there only needs to be one outlet on the wall, plus a ceiling or wall mounted light fixture operated by a wall switch. That's how minimum the standards are. So along that line, let's look at this picture here and answer the question, does this meet minimum property standards? The answer is yes, if this is a fully functional system, you can have a property that has an electrical service of as little as 30 or even 60 or even 30amps supplying the entire dwelling if it is market acceptable in that area. So let's look at another condition we talked about, acceptable heat source. Now here in this slide, I want you to see that we're showing you that this is not a wood burning stove, but in fact is a pellet stove here. And if it is a pellet stove, is it acceptable for a heat source? Well, the question again, is market acceptable? And a guideline that states if you have a situation that the heat can be sustained for a period of 10 hours without human intervention, then the property is eligible for market acceptance. And that would work. Okay, so what are some other conditions that you need to worry need to know about? Well, let's look at this one here. Does this meet minimum property standards? Well, actually no, because the bathroom facilities must be connected to the property. So having an outhouse on the back of the back 40 doesn't qualify this house if that's the only bathroom on the dwelling. But this picture here, does this meet minimum property standards? Actually it does if it's attached to the property, has a heat source, ventilation, lighting, and it has its own little mini septic system. This works. It doesn't have to have a sink even in that area. You can have a sink in another area of the home. So yes, the minimum property standards are quite low and I want you to understand that.

Now an important consideration I do want to share with regard to septic and well, if there is the ability to connect a property to public sewage or public water, then the appraiser will order that it be connected. And as a minimum property standard evaluator, you would then be able, you should be able to tell a person that at the early stages of their decision to buy a property. So let's look at this house here. Does this meet minimum property standards? So can anybody tell me what that is? What's that sitting in the shotgun in the corner for? Well, let's just put it this way. If you have to spray paint on the door that this is not a meth lab, it's probably a meth lab. And that isn't. That fails minimum property standards on a whole lot of levels. As such, it's an excellent candidate for a rehab loan. Let's talk about the inside of the property. There are a lot of conditions that are general and structural in nature that need to be determined when you're looking at a property to evaluate it for minimum property standards. Now I need you to understand something that's really important because a lot of people have a misrepresentation of this. HUD is not required to provide insurance on every property. It can turn down a property and it can fail to issue mortgage insurance based upon a number of conditions. One is what I'm showing you here right now. If the property falls within the drop zone of high tension power lines, it is not eligible for FHA insurance. Just like if you tried, if you actually are a 98 year old man and you try to get a 20 year life insurance policy, I, I can bet you you're going to be denied. HUD can deny property for conditions such as deterioration, neglect and safety and soundness concerns. So looking at this picture here, it shows you that this house here with the high tension power lines right here within the drop zone would be ineligible for insurance. Just like these two active properties that I actually had in the market that in neighborhoods that I was working in. So because these two homes were in the drop zone, this was the home I actually was working with and it did not, it did pass and did get minimum property standards. You can see we had windows were taken out and we were actually putting in the process of putting new windows in and this house here failed to get the FHA insured mortgage. Now some of you might say, well wait a minute, what if the house had FHA insurance before? This has been the situation. There is no grandfathering for this condition. Okay? So even if it had FHA insurable mortgage before, it's no longer eligible. This is not a grandfathered condition. Mixed use properties. Now you can buy a property, as I said, with FHA insured mortgage provided it has no more than four family dwelling. And you can also buy a mixed use home for a mixed use property. However.

The property, the entire building must meet minimum property standards. And for the purpose, but however, for the purpose of a renovation loan, only the residential portion, which would be this apartment here and maybe this apartment here in the back are eligible for FHA renovation services. The boarded up storefront would possibly have to be repaired prior to closing to make it meet minimum property standards. Okay, so you can't repair a commercial space with an FHA insured mortgage. So now that we've talked about a few things, let's have a quick little test. So number one, does FHA require a bedroom in a home? Yes or no? Type yes or no in the chat real quick. Number two, does FHA require a closet in a bedroom?

Number three, is a home with a propane fired furnace in the crawl space eligible for an FHA insured mortgage?

I'll give you a hint. Remember what I said before, not all homes get FHA insurance. And number four, does FHA require a maximum of two layers of roofing?

So now I'm seeing you type in a couple of answers to all of these, but let me just simplify it for you. No to all the questions. And let's just go into this a little bit better. What is what constitutes a bedroom? So now for hud, the determining of a bedroom is that it must have at least two methods of egress. Okay? So how do you enter? Must have a ceiling height of at least 7ft tall. In the majority, at least 50% of the ceiling must be a 7ft high. So if it slopes down a little bit in the back, maybe it's like a dormer bedroom or an attic bedroom. At least 50% must be 7ft tall. It must have at least one other method of egress beyond the entrance door and another exterior door or a window with other certain requirements is eligible. And the room itself must be at least 70 square feet. And more specifically, the room cannot be smaller than 7ft in any horizontal direction. So in other words, you can't have a room that is ten foot by, you know, seven feet by one foot. Okay? So you can't have a swim that's extremely narrow but meets your 70 square feet. Okay? You must have combination, you must have 7ft in any horizontal, no smaller than 7ft in any horizontal direction. So 7 by 7 is only 49 square feet. Okay? So you have to have at least 7 by 10 to make it a legitimate room. Okay? So these are the things that constitute a bedroom. So now that you know that there is not a requirement that a room have a bedroom, you can have a large open space that has a sleeping area, a studio, for example, a 1:1 room studio chalet can get FHA insured mortgage if it's Marketably acceptable. Therefore, you now know that these are not requirements of hud. So defective and hazardous conditions. This is the next thing that you, as a home inspector or contractor already have a comfort level in. You know what to look for. And if you see a major crack like this or the siding is missing on the property or the door is falling off the hinge, these are easy ones. You know that these are things that are going to fail to meet any standard of habitability, much less the FHA minimum property standards. And so these are things that are easy for you to assess. And that's why you make the best person. As home inspectors and contractors, you are the best ideal candidate for being the one to create minimum property standard reports because you already know what to look for. And in fact, your assessment of properties is usually higher than that. And many actually, it's very much higher than the threshold for minimum property standards. And this is why it's not just important that you. It's not just nice that you know this. You need to know this so that you can address the concerns and the confusion that come up when someone says to you, well, how come I have. How come my appraisal report was different from the home inspection report? Or when I get this home inspection, is this going to be all. Everything on your part? Report going to be things needed for my appraisal? How many of you had that question ever asked to you? Okay, raise your hand or type in the chat box if someone's asked you that question. Is the things on your report going to be on the repraisal? I don't know. But if you are trained to be an FHA minimum Property standard evaluator, you will know. Okay? So another reason why it's important home inspectors want to be knowledgeable about minimum property standard is, is because it actually helps increase your accuracy when you're reporting defects, and it can help you to help your buyer identify the need to use alternative or additional financing. How many of you, when you're doing your home inspections, are asking the buyer the question, how are you purchasing your home today? FHA, VA or conventional?

You should, and you should take note because based upon the type of mortgage the client's qualifying for, will determine a lot of how they're going to use the inspection report you provide. So you might want to start asking that question. You might be surprised the answers you find.

So let's take a typical assessment of what would happen if you were providing an FHA minimum Property standard report to a client. So we are, we're going to Talk in a few minutes about a specialized report, a standalone product, very simple to use, that you can use to provide a report to your client that tells them exactly what they're going to need to know as far as what the appraiser is going to look for. Now, we asked the question earlier. Who determines whether or not an FHA property meets minimum property standards? Is it the appraiser? The answer is no. It's the underwriter. And the appraiser makes a report just like you do and makes his recommendations to the underwriter. But the final word on whether or not an FHA appraisal Minimum Property Standard deficiency must or must not be completed falls in the hands of the underwriter with the resources provided. But look at it from the standpoint of your client. They're waiting to pay 375 to $500 to determine if they can even qualify for the mortgage. What if you could offer them a service if they didn't have to wait at the same time as when you provided the home inspection? So that's called the NPS evaluation, and you can offer it free or for a fee. And when you complete the NPS evaluation report, if it passes the report, congratulations, your client can continue to purchase the property and you can let them know that with very little fear of contradiction, the home will be able to be approved for an FHA mortgage. If it does not pass that evaluation and the seller is willing to do the repairs, once again, they can move forward to buying the property. But what if the seller is not willing to make the repairs? What if there is no seller? And if the repairs are less than 32,000, then the borrower can get that FHA purchase using what is known as a limited 203. That NPS evaluation report is perfectly suited to let a client know that, yes, you're not going to be able to get your FHA mortgage unless repairs are completed. And if no one is going to do those repairs before closing, you can add those repairs that are very limited in cost to your loan. Using the 203k limited product. You don't need to have a consultant to complete the renovation activities, just a contractor who's approved by the lender. And once again, your client is on a fast track to continuing to purchase the property. But what but here's what I want you to understand and I want you to be aware that I'm telling you right up front, when you start to provide the FHA Minimum Property Standard Evaluation report to your clients, it will be, and I can think of no other term to use to describe it. It will be a gateway drug for 203k because you're going to find homes that don't pass your evaluation. There is no seller or the seller is unwilling to do the repairs, the repairs are higher than $32,000. So therefore it cannot qualify for the limited 203k. In other words, do not pass go, go straight to the full 203k. And with the full 203k you are allowing that person the ability to get what they want, the house they wanted to buy in the first place. And you're basically stopping before they get to the place where they spend money for an appraisal and have to start all over again on square one or with another home. So this is the benefit of providing an FHA Minimum Property Standard Report. Other ways that you can share this information is at Real Estate Office Education Trainings how many of you would like to get a copy of this PowerPoint presentation to be able to give to an office of real estate agents to explain to them what minimum Property standards are and how different they are from home inspection standards? How many of you would like to share with your real estate agents what they should be expecting the appraiser to do? Raise your hand or type yes in the chat box. Homebuyer Education Adding it to your home inspection or using it to determine the need for a 203k and or energy efficient mortgage service. These are just a few other ways you can use this. So now how do you be able to do this? Very easily. We've packaged all of this in an easy system called the FHA Minimum Property Standards Reporting System. Now the normal stand alone price for this product is $319 and that's a great price considering you can charge that if you would like for the service. This report is a simple PDF document, easily clickable and it basically covers all the elements in a simple quick 12 page form that you can show what fails to meet minimum property standards. In fact, it is a learning tool for you because it asks you the questions on every page as to what those minimum property standards are in each area of the home. So as I try to open this up, it's giving me a little slowness here. I'm trying to show you that this is the general health and safety and I was trying to go to the next page to show you that next slide but it froze up. There it is here. It's coming up now, so let me just go to you. And so as this is opening up I want to show you that here you can see that this is a very easy report. Let me just slide this over here on this slide to show you what it looks like. And here you can see that. Come on. There we go. There we go. All right, so here's this report.

And there you can see that it's a very simple report. It's done with a PDF editor so you actually can do it on any device or tablet. And here you can see all the questions that you need to know are already asked for you. All you have to do is chip click yes or no and there it's easily processed for you. So there's no difficulty in how you are able to manage working with this product. It's totally there for you and at any point. So this is totally great for you. When you're working with your product. You don't have to worry about learning it. It's already teaching you as you use it. We include the complete training manual and the FHA guidelines on FHA Minimum Property Standard requirements. We give you a copy of the HUD 4000.1 and have highlighted for you those areas of that document that you need to know to be able to be trained and answer questions about the actual FHA requirements. We give you an actual checklist document the NPR checklist. And this is a PDF system that you can use as many times as you like. As many members of your company can use it. There's no cost except for the one time investment and we give you a customizable agreement that says this is not a home inspection. It's not meant to be a home inspection and it will never end. It's not meant to be a substitute for one. Additionally, because we know that everything needs training, we're going to give you a jump start your Minimum Property Standard reporting system. Now this is a 21 hour course and actually it's more like 1 hour and 20 minutes each where we walk you through the marketing of the program, how to customize a PowerPoint presentation, even how to set up a webinar. We also show you how to do step by step using the MPS system. Now this is a system that typically this jumpstart your MPS business is actually an additional 257 investment. And on top of that we actually provide you with a lifetime MPS system upgrade. Samsung has just come out with a Samsung Galaxy S10 plus phone and it has better functionality with Acrobat. And so we're going to be doing an update on our MPS reporting system to allow you to key this in to directly from your iPhone or your Galaxies or any other Android device. Well, with the lifetime NPS system upgrade you will get any advances, upgrades and support you need to use this system for as long as you choose to use the system. Now this is a $175 investment as well and it actually is something that is very useful. Additionally, as an extra bonus, as I said, we give you customizable PowerPoint shows for continuing education and agent trading. So if you add up the cost of the NPS system, the jumpstart your business which will get you started right away, and the lifetime upgrades plus the agent training, you're looking at a total cost of $901. Now I just want you to know I'm not charging you $901. Obviously I want you here to be able to use this. I have been visiting many of you at Office Education at Real estate, excuse me, home inspector trainings and agent trainings. Many of you are on the phone on the call today because I invited you from a recent visit at a conference of home inspectors or from a meeting that I've recently had of contractors or from meeting my other staff around the country. Or you might have been invited from a lender who really wants you to utilize this information. And if you are the lender who is learning this, I welcome you and gratefully appreciate you being on the webinar today. So I'm not going to offer you this product for $900. I'm not even going to charge you the $275 which is the price that we give as at our shows that we recently held. What I am doing is because we need more qualified trained professionals out here explaining minimum property standards and offering this option as an upsell or as an alternative to home inspection services. We are going to be giving this to the first 24 people who sign up from this call the price of just $197 and all you have to do is go to the link which is www.203kinabox.com mps so now on the screen you should see a little box come up where you actually can click that right now to be able to not leave the webinar but still be able to sign up. So you are one of the first 24 people. We have a large number of callers on the webinar and we don't want to let anyone miss out. So please hurry up and register now while we're on the call and you just go to this page and you hit click here to get started with the NPS Reporting system. And when you do that, you're going to see a page that's going to show you all the bonuses, the lifetime support and the TARO CEU course, the jumpstart your business and inspecting for nps. Now you know how they do on infomercials. But wait, there's more. Yes, there is. We are also going to give you as an extra bonus, a free ticket to the upcoming 203K Discovery Days. This is going to be held in May 3rd and 4th in Fort Lauderdale, Florida and October 4th, 5th and 6th, or 5th and 6th in Santa Ana, California. Now, the class in May is going to be held and during that class you're going to have an opportunity to do a walkthrough of a House of Horrors and get hands on practical experience evaluating a home. Like an fha. Like an FHA inspector to, excuse me, consultant. The class in October will not have access to the House of Horrors. Just so that you know that if you want to come to the House of Horrors training, which gives you that hands on that, you want to see if you can get a ticket to the May event, that class is very limited. We're limiting that class to just 30 attendees. So you don't want to wait. If you want to be one of the 30 people to come. We've already got about half that filled up. So if you want to be able to get to the May 3rd and 4th class in Fort Lauderdale, you need to register quickly. And so why should you do this? So now why should you be an FHA consultant? Well, why should you come to the 203k discovery days? Because there's more. One biggest question I like the answer to is there's more ways to be paid before closing. An FHA consultant gets fees like this in addition to your home inspection fee. Before closing, you could pay a home inspection fee. You get a 203k feasibility review, you get to get paid for your work. Write up cost based upon a $35,000 job, that would be 750. So not including mold, radon, termite, septic, well, infrared or any other ancillary test that's necessary for the project, you're going to be earning $1,250 prior to settlement after closing. When you are doing the phase construction draws in a typical $35,000 project. After closing, we'll have about three draw inspections. Now for those of you who don't know what that is, a draw inspection is where you go out, you inspect the work completed to that point. You fill out the Paperwork so that the contractor can draw funds down from the ESTRO account. And oh, by the way, just to let you know, as of 2019, mileage is now up to 58 cents a mile. So there you go. So this money, this number would even be higher. And there where you see change orders. Well, I don't know any renovation, project, rehab or anything where the contractor didn't have a change order necessary. I'm doing a project in my home right now and we're just doing a cabinet refacing and it turned out that the one of the cabinets can't be refaced, so we're going to have to put a brand new cabinet in instead, instead of putting on new doors and drawers. Well, that's a change order. So I don't know any project, no matter how big or small, that doesn't require a change order. So this is. So when you have to process a change order, you are able to charge an additional fee of $100 that's paid to you out of the proceeds of the loan. So let's look at this as a total. Before closing, you're getting $1,250 plus additional fees of termite, radon, etc. And after closing, you're getting another $834 in phase construction draws, which take anywhere from 15 to 30 minutes at the most. So in total, you're earning a whopping 2,800, $2,084 on just one job. How many two home inspections do you need to do to earn that kind of money? That's a question you want to ask yourself. And think about it. That's a lot of money coming from one project. And because it's only one project, think of all the reduced liability. Think of the fact that there is almost no competition out there. Many of you are in markets where there are no active consultants in your area. It's a great way to get real estate agents to give you access to their agents.

Higher fees, quicker inspections. If the home is vacant, unoccupied, with utilities off, it's so easy to estimate the repairs because all you're going to say is replace the entire electric system, including main panel and outlets and lighting, to code. Now, we are not code inspectors, but we're letting them know that when the contractor does the work, he'll have to do it by code. And for some of you who have asked me in events and in emails and on Facebook, isn't this for low income? Actually not, and it never was. The 2019 loan limits are up 7.5% from 2018. So now a single family home can get a 203k mortgage for up to 314,827 for a single family home and for a four family home, up to $605,000. Now this is in, this is the average single family limits. There are high area limits and some of the high area limits are like New York city, Los Angeles, etc. And then there is the ultra high limits like Hawaii, okay, the U.S. virgin Islands, where housing prices are extremely high, where the limits are even higher than this. So just be aware that these are just the average for areas. Some areas are even higher. So in your area might be one that is. And so as I said before, there's virtually no liability. Why? Because the appraiser is going to come behind you to verify that everything that's on your report meets is what needs to be corrected to meet minimum property standards. And I'm talking about when you're providing a 203k report because as I said, doing NPS evaluations is a gateway to being, to requiring 203k consulting services. So why not come to the Tools perk discovery days and learn how to become a tool 3K consultant as well as being able to benefit from the ability to use minimum property standard reporting right now. So here's some fun things that I'd like to share with you because for me, it's all about what I can do to help make people's lives better. So here's a house that was. This is the before picture, this is the after. So we took this property and we turned it into the showplace of the neighborhood. This is the kitchen in that house. Before.

After. A big difference, isn't it? Here's a situation that I'm so proud to have been a part of. This was a property where they had a chimney puff backfire in the basement of a home. And now for those of you in the west, the south or the southwest, a basement is a part of the house where you get to go hang out and not worry about anybody else. And it's underneath the rest of the house. So here is the picture of the rollout, fire damage to the joists, to the stairs and where they tried to do the repairs themselves using the insurance funds and ran out of money. Here you can see the kitchen, old and outdated. Well, this was a widow with two sons and they wanted to stay in their home. And thanks to the 203k rehab loan, here's a picture of her with her beautiful new kitchen the repairs to the areas, the new joists, new walls, everything the way it is. And she is now a happy family owner paying a mortgage that she can manage and enjoying the home. Right then here's a situation where the property was a foreclosed home. The utilities have been turned off. So what was turned off? The sump pump. So there you can see the sump pump discharge line and you can see all the mold that's growing in the area. Well, the client couldn't afford to rehab the basement. This was also in a basement. Couldn't afford to rehab the basement fully back to a finished area. But we could, with the 203k do what it was necessary to make it a safe, sound home. And there you can see that at this inspection, they had just put down the tiles. They hadn't grouted them out yet. But this actually is as finished as it's going to be with the exception of the tile grouting, because this meets minimum property standards. So this is exactly the kind of training we're going to teach you. How to create the scope of work, how to work with the contractors to be able to do these repairs and inspect the work safely and effectively and quickly. And how and where are we going to do this at in upcoming 203k discovery days? So take a peek at what will happen at the 200k.

Came here to the NAF HAC 203k days to learn how to better help my clients. Catherine's seminar has been a wealth of information. She has more energy than my 3 year old toddler. I don't know how she does it.

Any of the training I've gone through to make my business better. This has been the best value and the most engaging. Learned a lot in this. Well worth the money, the trip.

We've only been here for a day and a half and I feel like they've got a week worth of training out.

If you could sum up this weekend.

In one word, what would it be?

Wow.

Informative. Informative.

I've learned a lot and I've signed up for the package. It's been very enlightening.

One word. Transformational. Transformational. You guys feel transformational.

So we hope that you will come and join us at an upcoming 203k discovery days. We are really excited. Our next one is May 3rd and 4th in beautiful Fort Lauderdale, Florida. And we're also holding one in October in Amazing Santa Ana, California, which is about 15, 20 minutes by Uber from guess where? Disneyland. Just in case some of your family wants to come Make a quick trip to Disney while you're studying and learning how to be a renovation consultant to quickly pay for that trip. So I hope you will take advantage Click the link on the site now. Now if someone has mentioned in their chat box I wanted I'm interested but I can't come to either of those those events. What do I do? Well, if you cannot, as part of your investment in the system, the NPS system, and with your free ticket to the 203k discovery days, we will give you the recording of the October 2018 203k discovery days right away so you can have access to last year's training and a ticket to come to this year's training. And every year the training is different. We add different speakers. We talk about different issues and activities. So what does it say there? Some say opportunities knock only once. That is not true. Opportunities knock all the time. But you have to be ready for it if the chance comes. You must have the equipment to take advantage of it. We are giving you. I can't think of any better way for you to take advantage of this opportunity to learn more about renovation consulting at an investment that is positively ridiculous. Outrageous. So please consider joining us. Click the link right here in the webinar or go to 203kinabox.com mps the special 197 price is only for the next 24 people. You don't want to miss this link. And don't forget you're going to get a free ticket to the 203k discovery days and the free link to view last year's Discovery Days. So this will not last long. I can guarantee it. There's a lot of people who've already clicked the link and are taking advantage of this deal. After the first 24th the price goes back up to 319. But it still includes the three the free ticket to the 203k discovery days. So don't miss out. Be one of the first 24 sign up now. We're doing this webinar again in a couple of hours and over the next few days. So we're going to be keeping it going. So don't say I'll do it tomorrow, I'll do it the next day. You might be able to get lucky, but do you want to risk it? So 197, you get the 203k discovery days. You get the FHA Minimum Property Standard Reporting System. You get the jumpstart your MPS business, you get the CEU training course for 203k consultants and as I said, you get the special 203k discovery days. Get fast. Get certified fast information. So. So, ladies and gentlemen, as I like to say, whenever I'm in a group, on a webinar, a coaching call, or anytime I talk to anyone, until I'm able to support you in the future, be outstanding. I really hope to see you at an upcoming 203k discovery days. Bye. Bye.