FUEL Vol. 1

REFUELING REAL ESTATE CAREERS

VOL No. 1

GETTING

THROUGH

TO MILLENNIAL

BUYERS

& MORE!

3 STRATEGIES TO

TAKE YOUR REAL

ESTATE CAREER

TO THE NEXT

LEVEL

LARRY ZANAS

NAPLES, FL /

CARRINGTON INVESTS

IN MY BUSINESS

5

Giving back to the communities in which we live and work is the way we stay connected to what is really

important in life. Since 2010, Carrington Charitable Foundation (CCF) has supported a variety of nonprofit causes, including those that impact children’s charities, food banks, animal shelters, military troops, and more through fundraising, in-kind donation drives, and volunteer opportunities. Through CCF’s signature program, Carrington House, the Foundation provides housing to our returning wounded servicemen and women who have dedicated their lives to protecting our country’s freedom. CCF honors their selfless sacrifices by building permanent housing for these servicemembers and their families. CCF is proud to partner with the Gary Sinise Foundation’s R.I.S.E. (Restoring Independence Supporting Empowerment) program to build one-of-a-kind, permanent automated homes for severely wounded Veterans and their families across the United States.

To get involved and learn more about the Carrington Charitable Foundation, or to give a donation, please visit carringtoncf.org. Thank you!

YOU CAN

MAKE A

DIFFERENCE

E D I TO R ’ S N OT EAs an entrepreneur in today’s market, the only way you will maximize your earning potential year after year is to have a

strong business partnership with your brokerage.

At Carrington Real Estate Services we think you deserve leadership, innovation, mentoring, and 24/7 access to

resources that assist you in reaching your income goals. That is why one of the many ways we REFUEL real estate careers is to provide you with this quarterly magazine filled with valuable

information that will help take your business to the next level!

We are very excited to be publishing our first magazine. It is a family affair! Carrington Real Estate Services is one of the 16

operating businesses under Carrington Holding Organization. We’ve built a unique business model based on maximizing the

value of the single-family asset. This is great news for you since you will be able to leverage our great family ties to provide

unparalleled service to your clients.

Do yourself a favor and grab a cup of coffee and take a few minutes to read this magazine today. It is filled with ideas you

can implement into your business right now!

Happy Selling!

Wendy ForsytheEVP/Head of Global OperationsCarrington Real Estate Services

[email protected]

REFUELING REAL ESTATE CARREERScarr ingtonrealestate .com

THIS ISSUE

LARRY ZANASNAPLES, FL / CARRINGTON INVESTS IN MY BUSINESS / Page 4

3 STRATEGIES TO TAKE YOUR REAL ESTATE CAREER TO THE NEXT LEVEL / Page 5

ARE YOUR CLIENTS MORTGAGE-LITERATE? / Page 6

GETTING THROUGH TO MILLENNIAL BUYERS / Page 11

SECOND QUARTER TOP 10 PRODUCERS / Pages 12–13

UNDERSTANDING THE TITLECOMMITMENT / Page 14

AUCTIONS: LOVE THEM ORHATE THEM / Page 15

COMPETING IN THE ONLINE WORLD OF REAL ESTATE / Page 16

REHAB & REPAIR WITH THE

203(K) / Page 18

Third Quarter 2015, VOL No.1/Summer. FUEL is a publication of Carrington Real Estate Services, LLC. 1600 S Douglass Road, Suite, 120 Anaheim, CA 92806. 877-330-2773

Editorial or advertising does not constitute advice but is considered informative. ©2015 Carrington Real Estate Services, LLC. All rights reserved.

REFUELING REAL ESTATE CAREERS 3

CARRINGTON

INVESTS

IN MY

BUSINESS

LARRY ZANAS

CARRINGTON REAL ESTATE SERVICES

NAPLES, FLORIDA

. . . that helps me put more money in my pocket versus spending it to run my business. That is why I joined Carrington Real Estate Services. It has been unbelievable to find out all the training, tools, and resources that they invest in to make my business successful. I have a free website and a CRM system powered by BoomTown, no monthly fees, and quality lead sources — just to name a few.”

“My business is on steroids! Thanks Carrington!”

As an entrepreneur in today’s market, the only way you will maximize your earning potential year after year is to have a strong business partnership with your brokerage.

To learn more call 877-330-2773 or email [email protected].

“I FINALLY

FOUND A

BROKERAGE . . .

LARRY ZANAS

CARRINGTON REAL ESTATE SERVICES (US), LLC

NAPLES, FLORIDA

STRATEGY 2: REDECORATEIt’s possible that your next level doesn’t require all the demolition involved in a renovation. Maybe you just need to redecorate your career a little.

•Whenwasthelasttimeyouupdatedyourmarketing materials?•Doyouneedtofreshenupyourworkingenvironment? Does it have a positive effect on your energy? Think about your home office and car.•Doyouneedtobringinsomenewideas(inprospecting, marketing, technology, or networking) to really get the flow of your career to the next level?•Haveyouinvestedinreadingorlisteningtoanygood professional development books lately?•When’sthelasttimeyouinvitedsomeoneyouadmireto lunch? A little inspiration can go a long way.

STRATEGY 3: REARRANGEIf things are going along well and you’re hitting your goals but feeling tired and strapped for time, try strategy three. Many of us rearrange the furniture in our homes in order to gain a different perspective. A little rearrangement in your daily flow can give you an extra boost of energy and a next-level opportunity.

•Trytime-blockingyourdailycalendartoincludepersonaltime, family time, and playtime.•Consideravirtualassistantoranotherpart-timesupport.•Takeaminivacation.

Make the commitment today to get to your next level. Opportunities in today’s market are abundant, you don’t want to miss them because you’re stuck in a rut. You can do it!


STRATEGY 1: RENOVATEAs real estate professionals, we know that a strategic renovation project like updating a kitchen or bathroom in a home can add value to a property that far exceeds the cost. The same principal applies to your career. There might be areas of your career that could use a renovation. Find a quiet spot and turn off all electronic devices. Ask and answer the following questions:

•Howmanyhoursperdayareyouprospecting?What does that look like?•Howmanydifferentsourcesofleadgenerationareyou utilizing? Are these enough?•Howdoyoustayintouchwithyoursphereofinfluence? When and how?•Areyoubuildinganemaillist?•Areyouusinge-alerts?•Areyougeneratingonlineleads?Areyouconverting online leads?•Doyouhaveageographicornichefarmingstrategy?•Areyougatheringratingsandreviewsfromyourclients?•Areyoucommunicatingaconsistentbrandingstrategy with your marketing activities?•Doyouhavecoverageonthetoprealestateportals (Zillow, Trulia, and realtor.com®)?•Areyouusingtextmarketing,videomarketing,and email marketing?•Areyouattendingatleastonenetworkingeventeach week?

Once you’ve identified the answers to these questions, you can start planning your career renovation. Focus on the areas that will bring the highest return on investment.

We all get stuck from time to time and it can be frustrating. Feeling like we are just spinning our wheels

is something all real estate professionals go through occasionally. If you’re feeling unsatisfied and want to

take your career to the next level, consider these three strategies.

3STRATEGIES TO

TAKE YOUR REAL ESTATE CAREER TO

THE NEXT LEVEL


6

Understanding the process and terms of

a mortgage is critical for homebuyers’

financial literacy.

As more and more consumers take steps to improve their knowledge and understanding of personal finance, they should also consider how a mortgage might — or might not — fit into their overall financial picture.

The real estate market is continuing its gradual recovery, and as the market stabilizes, many consumers are starting to consider purchasing a home, particularly first-time homebuyers and those in the millennial generation.

According to the Federal Reserve Bank of New York, mortgages make up the largest component of household debt. In fact, in the most recent quarterly report on Household Debt and Credit, mortgage balances stood at $8.17 trillion, almost 70 percent of total household debt. Before taking on such a significant responsibility, potential homebuyers should educate themselves thoroughly on the mortgage process, the qualifications, the various fees one incurs, and the ongoing responsibilities it entails.

Real estate agents working with first-time or inexperienced homebuyers should encourage their clients to investigate the rights and responsibilities a mortgage confers. Although homebuyers are responsible for any loan they undertake, it is also the responsibility of the lender to fully explain the details and complexities of the mortgages they offer.

Some lenders offer online tools that walk borrowers through every detail of their mortgage, giving them a thorough understanding of all their obligations under the mortgage application and contract.

Homebuyers also should look for resources outside of their lenders’ offerings. Real estate agents working with first-time homebuyers or inexperienced consumers should be aware of the varied resources and educational tools available to potential homebuyers today, many of which are accessible online.

First, you might want to start with the basics and direct clients to access their free annual credit report. Reading through this and understanding what drives their scores is an important first step to overall financial literacy.

Next, clients should make sure they understand all the terminology that will be used while buying a home. Sites like the Center for Responsible Lending offer glossaries that explain mortgage and finance terms.

Finally, point clients to the Consumer Financial Protection Bureau (CFPB) to get more information on specific mortgage-related questions and issues. They offer an interest rate review tool that samples real rates from lenders across the country, as well as documents that explain complex closing forms and provide a closing checklist for homebuyers. Here, they can also look for complaints about lenders they are considering using. The Better Business Bureau is also an excellent resource to help clients ensure that they find a reputable lender. Consumers with access to these resources should have no reason they should not be making solid, educated decisions about their finances and buying a home.

Real estate agents with these resources can assist and advise their clients to achieve mortgage literacy. Borrowers must understand critical details such as transaction costs, mortgage loan principal amounts, the term of the loan, interest rates, and monthly loan payments, as wells as contingencies for missed or late payments.

By working with experienced real estate agents and lenders who provide the necessary homebuyer education, today’s consumers can increase their mortgage literacy and, not only better understand their responsibilities as a homeowner, but also improve their overall financial literacy.

To learn more call 877-277-7256 or visitcarringtonhomeloans.com.

ARE YOUR CLIENTS MORTGAGE-LITERATE?

FUELING YOUR REAL ESTATE CAREER6

DID YOU KNOW— CARRINGTON REAL ESTATE SERVICESis one of a family of companies within the Carrington Holdings organization? Each company is uniquely

positioned to provide market insight and expertise that far exceed what is available at your typical real estate

brokerage. This means we offer the highest level of expertise available to help your buyers/sellers with a home

sale or purchase. That’s why HousingWire.com named Carrington Real Estate Services’ parent company,

Carrington Holding Company, as one of the top 15 real estate companies to watch in 2015.

Whether your clients are buying their first home, moving to a new home, or buying an investment property, a real

estate transaction is multifaceted and often complicated. At Carrington, we’ve built a unique business model

based on maximizing the value of the single-family asset.

8

The exclusive Carrington Business-Building Program gives our real estate professionals a unique combination of

marketing tools, training, and local market expertise that result in a high level of service and a keen

understanding of the needs of today’s buyers and sellers.

OUR PROMISE: Over 90 percent of consumers rely on the Internet as

their primary source for real estate information. That’s why Carrington combines the latest in digital initiatives

with more traditional marketing strategies like for sale signs and open houses. This leading-edge approach will

help you find your clients new homes faster or sell their existing homes at maximum value.

CARRINGTONBUSINESS SY

STEM

To learn more call 877-330-2773or email [email protected].


CHRISTEL CARLYLE & MARY RUSSO ANDREWS

CARRINGTON REAL ESTATE SERVICES

DEL MAR, CALIFORNIA

CalBRE#00681090, CalBRE#00890527

HOW WE LEVERAGE OUR

STRONG BUSINESS PARTNERSHIP

WITH CARRINGTON“AS A TOP PRODUCING TEAM . . .. . . we get calls every day to join this

firm or that firm. Frankly, they are

wasting their time.

“Mary and I knew that Carrington was

different when their EVP/Head of

Global Operations volunteered to go on

a listing appointment with us. That is

the type of commitment we get from

Carrington at every level of the

organization. This is what helps us FUEL

our success! And by the way — we got

the listing!”

As an entrepreneur in today’s market,

the only way you will maximize your

earning potential year after year is to

have a strong business partnership with

your broker. At Carrington we think you

deserve leadership, innovation,

mentoring, and 24/7 access to

resources that will take your business

to the next level.

To find out how we can FUEL your real

estate career, contact us today.

— Christel CarlyleMary Russo Andrews

877.330.2773 / [email protected]

carringtonrealestate.com/join

facebook.com/carringtonres

twitter.com/carringtonres

10

The question remains, however: How can real estate

professionals help millennial renters become homeowners?

The process begins with communication.

In some ways, converting millennial leads into clients

follows the same pattern as other leads. Taking those

same steps, but adjusting them toward a millennial

audience is key to working with this demographic. Real

estate professionals should:

• Followupimmediatelywithleadswhorequest

information. Consider texting the client instead of

calling or emailing.

• Usee-alertstogetvisitorstocomebacktoyoursite.

• Createdripcampaignstocultivateleadsthataren’t

ready to act yet. Provide information that millennials

are looking for, like the latest on entry-level housing or

first-time homebuyer products.

In fact, using Twitter, Instagram, and other social media

sites is like the ultimate drip campaign in many ways.

You establish yourself and your company as a source of

valuable information, particularly information that isn’t

easily available through simple Internet research. A real

estate agent’s value doesn’t come from being able to link

to the latest rates or the newest listing, but rather from

her ability to interpret information and translate it for her

clients. Your knowledge of the local market is invaluable;

now you simply have to communicate that knowledge to

clients in a way that they understand and in a way with

which they are comfortable.

Although learning to communicate in 140 characters

(Twitter’s character limit) or less may seem daunting, it will

be an important skill to have for years to come, as more

millennials move into position to buy their first home. Of

course, technology will continue to change and evolve,

but the lesson of meeting your buyers where they live — in

an online sort of way — will prove to be a fruitful one as

the largest generation since the baby boomers starts to

become the largest segment of homeowners.

To learn more call 877-330-2773 or email

[email protected].

GETTING THROUGH TO

MILLENNIAL BUYERS

Despite some barriers to

homeownership, there’s no doubt that

millennials will be the next big market

of homebuyers. Reaching the target

demographic of millennial homebuyers

is a challenge that real estate

professionals must tackle today.

REFUELING REAL ESTATE CAREERS 1 1

APRILUNITS SOLDBonnie Maloney Escondido, CAAndrew Sawyer Henderson, NVMelanie Croft Chicago, ILHeidi Cordray Great Neck, NYSean Bates Tampa, FL Sarena Marques Tampa, FL Brian Daddona Great Neck, NYLarry Zanas Naples, FLDeborah Cote Boca Raton, FLChong Yi Baltimore, MD

SALES VOLUMEBonnie Maloney Escondido, CA Sandra Hadley Carlsbad, CA Raini Gordy Del Mar, CA Steve Webber Escondido, CA Marcia Roth Folsom, CA Melody Kramer Vacaville, CA Ana Vasquez San Jose, CA Jason Debord & Kathie Debord Folsom, CA Linda Isordia Riverside, CA Larry Zanas Naples, FL

AGENT GENERATEDBonnie Maloney Escondido, CA Sandra Hadley Carlsbad, CARaini Gordy Del Mar, CA Jason Debord & Kathie Debord Folsom, CA Steve Webber Escondido, CA Larry Zanas Naples, FL Christel Carlyle & Mary Russo Andrews Del Mar, CAMelody Kramer Vacaville, CA Marcia Roth Folsom, CA Ellen Zunsman Tampa, FL

MAYUNITS SOLDSharon Geier San Diego, CA Harriett Love Baltimore, MDDeborah Cote Boca Raton, FL Ana Atkins & Victoria Bader Palm Coast, FLRobert Miller Orland Park, ILJack Stroup Oldsmar, FLChong Yi Baltimore, MDHeidi Cordray Great Neck, NYDeon Paul & George Brown Palm Coast, FLLarry Zanas Naples, FL

CONGRATULATIONSSECOND QUARTER TOP 10 PRODUCERS

TOP

10

12

SALES VOLUMELarry Zanas Naples, FLHarriett Love Baltimore, MDMagdalena Niski Naples, FLAlice Greliak San Diego, CA Richard Diaz San Jose, CA Steve Leach Carlsbad, CA Sandra Hadley Carlsbad, CA Steve Webber Escondido, CA Deborah Cote Boca Raton, FL Virginia Clark Irvine, CA

AGENT GENERATEDLarry Zanas Naples, FL Magdalena Niski Naples, FLAlice Greliak San Diego, CA Steve Leach Carlsbad, CA Sandra Hadley Carlsbad, CA Steve Webber Escondido, CA Lanting Huang-Truong Wakefield, MACindy Davis San Diego, CA Thai Nguyen McLean, VAConnie Hawkins McLean, VA

JUNEUNITS SOLDDeon Paul & George Brown Palm Coast, FLMelanie Croft Chicago, ILChad Crookes Great Neck, NYMaria Cronin Orland Park, ILSteve Webber Escondido, CA Sean Bates Tampa, FLBrian Daddona Great Neck, NYTeri Gormley Palm Coast, FLMike Althof San Diego, CA Alice Greliak San Diego, CA

SALES VOLUMESteve Webber Escondido, CA Maria Cronin Orland Park, ILElisabeth Ceja Long Beach, CA Vanessa Ainzuain Sunny Isle, FL Alice Greliak San Diego, CA Chris Boone Ashburn, VA Joseph Howard Escondido, CA Melanie Croft Chicago, ILJoseph Limo Riverside, CA Christel Carlyle & Mary Russo Andrews Del Mar, CA

AGENT GENERATEDSteve Webber Escondido, CA Vanessa Ainzuain Sunny Isle, FL Chris Boone Ashburn, VA Alice Greliak San Diego, CA Joseph Howard Escondido, CA Christel Carlyle & Mary Russo Andrews Del Mar, CA Alfonso Torres III Ashburn, VAJoseph Limo Riverside, CA Elisabeth Ceja Long Beach, CA Melody Kramer Vacaville, CA

TOP

10


14

Congratulations — you now have the signed

contract, earnest money, and the information

is with the title company. After a thorough

examination of the property a Title Commitment

is issued and sent to all parties.

However, many agents do not know what to do when the Title Commitment is sent to them. Don’t just file the commitment into your online file, take a look at it, be prepared for issues that may arise and ask questions if needed.

Sounds easy right, well has anyone ever explained to you what questions to ask, why a commitment is needed, or even what you are looking at? If the answer is no, then here are a few key points you want to keep in mind.

On an ALTA (American Land Title Association) Commitment you will have a Schedule A and a Schedule B. On Texas transactions the Title Commitment has three sections, Schedule A, Schedule B and Schedule C.

Schedule A will contain the actual facts; compare this to your contract. Match up the names of the Buyer, Seller, and Lender as well as the sales price and loan amounts. If you see any discrepancies contact your escrow officer so that you will not experience a delay in closing. One example of an issue would be if you have a contract signed by one party and yet Schedule A is showing someone else in title. By reviewing this immediately you can help the title company and your client in being proactive and getting this resolved or preparing all parties for a potential delay.

Schedule B is divided into two parts. Schedule B, section one (Schedule C in Texas = Clear to Close) will consist of the requirements. Any items in this section will need to be addressed. As you review this section prepare your seller by letting them know what is reflected in this section. Occasionally there will be a mortgage, abstract of judgments, or IRS liens on the property. The title company will need to find out if they belong to the seller and obtain a payoff and release of lien to move the closing forward.

Section B will also contain the encumbrances. These are items that will remain on the title and will be passed on with the property. Typical encumbrances will be utility easements or association or governmental access rights to the property. If your client has questions about any items reflected here, contact the title company and request the recorded document for them to review.

If you would like to learn more or have any questions, please contact Carrington Title Services at 844-507-4172.

UnderstandingTHE TITLECommitment

1. Foreclosure auctions are still typically done on the courthouse steps, without the direct involvement of an agent. These properties are sold by an auctioneer, a trustee, or a sheriff — all via a live auction — so there’s no listing agent. The majority of buyers aren’t represented either.

2. 0ccupied REO auctions are typically conducted immediately after a foreclosure process has been completed. In these cases, the lender, or noteholder, has decided to move the property right away rather than take title, manage the eviction, repair, and remarket the property. This approach is growing. Generally, these sales don’t have a listing agent involved, but buyer’s agents are welcome. And they can usually get a referral fee as long as their buyer registers them online with the auction company.

3. Vacant REO auctions are the most like a traditional home sale. Many of these have a listing agent assigned by the lender and preset terms for agent compensation on both sides of the sale. Many of these properties are available for inspection, or have scheduled open houses. It’s incumbent upon buyers and their agents to take full advantage of the opportunity to do as much homework as possible before buying anything.

From a seller’s perspective, auctions have always been regarded as a way to get what they consider to be fair market value for a property since they pit interested parties against each other in an open competition. While a lot of people think of auctions as a way to buy things at a discount (and there are bargains to be found), the reality is that auctions often deliver higher sale prices than traditional sales methods in a variety of markets. In the near future, agents and brokers will be able to begin posting traditional residential properties on sites like Homesearch.com and Auction.com. This will combine the marketing reach and efficiency of an online auction with the local market expertise and client management skills for which good agents are known.

Whether you love them or hate them, auctions are here to stay, and will become a bigger part of our marketing strategy. Seems like it’s time we let go of those high school days and made friends with online auctions.


But that was then, and this is now. In today’s market, auctions are typically used at the extreme ends of the spectrum: distressed properties and ultra-luxury homes. Most agents don’t get to play in the ultra-luxury market, so we’ll discuss distressed properties.

There are three types of distressed residentiaI property auctions: foreclosure sales, occupied real estate owned (REO) sales, and vacant REO sales. For the most part, the bidders at these auctions are individual and institutional investors. However, in a recent survey by Auction.com, it was found that 15 percent of their registered bidders were trying to buy a home to live in.

Auctions:LOVE THEM OR

HATE THEM

Remember that kid in high school that none of

your friends liked, so you weren’t supposed to

like them either? Instead of getting to know them

and making your own assessment, you just went

along with the crowd in condemning that kid as an

unlikable person. Auctions are like that.


Today’s homebuyers are hungry for information and they expect to get that information with a few quick taps on their smartphones, tablets, or laptops. Reaching potential buyers where they are is critical — and buyers are online. So how can real estate agents compete in an increasingly competitive online world?

First, you have to be online in a real and transparent way. Consumers are not only looking for the details of the home they want to buy, but also the kind of agent and company with whom they want to work. lf you’re not online, consumers aren’t going to find you or be able to validate your skills and expertise.

The second key to competing online is to create trust with the consumer. Creating trust in a digital environmentcan be tricky, but it starts with providing information in a timely and reliable way. When potential homebuyers are searching online, they frequently request more information and become leads. And it’s what you do with these leads that will differentiate you from the rest of the pack — and turn that potential homebuyer into a homeowner.

Although millions of online leads are generated every month, the vast majority of those leads never turn into sales. How can you avoid wasting these opportunities?

FOLLOW THESE THREE SIMPLE STRATEGIES:1. Respond quickly.2. Follow up consistently.3. Set up contacts with e-alerts.

One of the most critical elements of a successful online lead strategy is the response time. According to lnsideSales.com, the success rate of making contact with a lead shoots up to 90 percent or more if the initial response is sent within five minutes of receiving the inquiry. Obviously, real estate agents can’t sit in front of their computers waiting for a lead to come in, but a quality customer relationship management (CRM) system will send email or text alerts so you can respond in a timely fashion.

Once you’ve made that initial contact,following up becomes key. Often, online leads are contacted only once and then forgotten. Successful agents know that persistence is critical. Do you reach out twice and then give up? Three times? Four? You might be surprised to discover that six is actually the magic number. According to Velocify.com, if you attempt to reach a lead at least six times, you will make contact 93 percent of the time. Six attempts may seem like a lot of follow-up phone calls and emails, but it can also mean a lot of business.

COMPETING IN THE

ONLINE WORLD OF

REAL ESTATE

Finally, set up your online leads with a system of e-alerts. Let them know when a new house in their area or price range becomes available, or when interest rates hit a particular point. According to research, leads are two-and-a-half times more likely to contact you directly when they are on an e-alert system. And they are 15 times more likely to return to your website than those without e-alerts. Make potential buyers aware of the value you are offering, and they will turn to you when they’re ready to purchase a home.

Although the digital age is changing the way consumers buy homes, real estate agents must learn to harness all the potential that technology offers. With the right online strategy, CRM, and consistent follow-through, agents can turn the river of online leads into a steady stream of business while meeting consumers’ expectations.

To learn more call877-330-2773 or email [email protected].

16

MANAGEMENT

CAREERWITH CARRINGTON

YOUR

WE HAVE LOCAL OFFICE LEADERSHIPOPPORTUNITIES AVAILABLE ACROSSTHE COUNTRY. Carrington Real Estate Services is one

of the 16 companies under Carrington

Holding Company, LLC. Together, these

businesses cover virtually every aspect

of the single-family residential real estate

transaction. This unique business

continuum is extremely effective,

positioning our local office leaders for

success in any market cycle. We have

proof it works — last year we increased

our agent count by over 55 percent! That’s

why we need you on #TeamCarrington.

To find out how our FUEL and the Carrington Business System can help you TAKE YOUR LEADERSHIP TO THE NEXT LEVEL, connect with Wendy at Carrington today!

877.330.2773 / [email protected]

carringtonrealestate.com/joinWendy Forsythe

EVP/Head of Global Operations


2. STANDARD 203(K) Also known as the 203(k) mortgage, the 203(k) standard program is well-suited for projects that need major reconstruction and renovation. The FHA considers this program an important tool for neighborhood revitalization and the expansion of homeownership opportunities. Often, traditional home-improvement loans come with high interest rates and short repayment terms, but with the FHA’s backing, 203(k) insured loans can save borrowers time and money.

3. POWERSAVER PILOT 203(K) This program is an expansion of the FHA PowerSaver Home Energy Retrofit Loan Pilot Program that began in May 2011. Launched in August 2013, the 203(k) pilot program allows homeowners and homebuyers access to funds similar to those that are available for the streamlined and standard 203(k) loans, but energy-saving improvements are incentivized with low-cost financing. Energy improvements can include a wide range of upgrades, from updating the heating system to installing new windows, but they must be based on the list of approved measures from the FHA and the U.S. Department of Energy.

By partnering with the right lenders and contractors, owners and buyers can create the home they desire with low-cost financing from the FHA 203(k) program. Learning about each loan type will arm you with the knowledge you need to help your clients find a property that they can make all their own.


Although many foreclosure and distressed property statistics have been trending downward in recent years, these homes still comprise a significant portion of the market. As confidence in the housing market begins to climb upward, more potential buyers are looking at these properties as opportunities for homeownership and for long-term resale value, even if these projects tend to be seen as time-consuming and expensive.

Since many distressed properties need serious repairs or updating, you should make your clients aware of the opportunities offered by the Federal Housing Administration (FHA) for the rehabilitation and repair of single-family homes. Its primary vehicle to help homebuyers and homeowners is the Section 203(k) mortgage program, which allows for the purchase or refinancing of a home in addition to financing eligible repairs and improvements. All the programs can be used for either purchase or refinance transactions, as long as the subject property is a residential dwelling on which initial construction has been completed for at least a year, with a maximum of four units. The FHA Section 203(k) mortgage program has three loan types:

1. STREAMLINED 203(K) This program is used primarily for repairs or improvements that cost less than $35,000. This loan will be most appropriate for homebuyers who are looking to do either modest repair work or cosmetic improvements. According to the FHA’s guidelines, these loans are best for improvements that do not require plans, consultants, engineers, and/or architects.

REHAB & REPAIR WITH THE 203(K)

18

WE MAKE

MONDAYS YOUR

FAVORITE DAY

OF THE WEEK.The Carrington e-newsletter is delivered to your in-box every Monday morning. It gives you the FUEL you need to kick-start your week.

This blog-style format is easier to read, especially on mobile devices and includes:

•Advice and success stories from seasoned agents • Company-provided training and tools created exclusively for #TeamCarrington • Expert marketing tips • Content to share on your social media channels •And much more

Our e-newsletter is the perfect way to FUEL up when you need it most — on Mondays! It will help you set a game plan to build your business the entire week.

#mondayfuel

FUEL Vol. 1

Documents

Transcript of FUEL Vol. 1