Skip Schenker: FHA 203K, Fixer-Uppers, and Ready4Remodel

What if buying a fixer-upper did not mean finding a separate way to pay for all the repairs?

In this episode of SF Commercial Property Conversations with Bruce Bean, Bruce talks with renovation loan specialist Skip Schenker about FHA 203K loans and other renovation financing programs that can help buyers purchase a property and finance improvements through one loan.

Skip shares how his early career selling windows and French doors eventually led him into the mortgage industry. After discovering FHA 203K loans in the 1990s, he saw an opportunity to specialize in a loan program that he believed was dramatically underused.

Bruce and Skip discuss how renovation financing works, including the important role of the after-renovated value, or ARV. Instead of looking only at a property's current condition, a renovation loan appraisal can consider the plans, specifications, and improvements that will be made to the property.

They also explore how these programs can apply to owner-occupied multi-unit properties. Skip explains how an entry-level real estate investor may be able to purchase a distressed property with up to four units, live in one unit, and renovate the property while using a portion of projected rental income to help qualify, subject to the applicable loan program requirements.

Skip also introduces Ready4Remodel, the platform he developed to make the renovation loan process easier. The platform uses location-specific remodeling cost data to help estimate renovation expenses earlier in the process. According to Skip, this can help move the appraisal forward sooner and potentially shorten the time required to close a renovation loan.

The conversation goes beyond financing. Skip discusses his book, The Living House, and his belief that a home is an extension of the people who live there. He compares the systems of a house to the systems of the human body and explains why maintaining and improving a home can affect the quality of life of the people inside it.

Whether you're a homebuyer, real estate professional, mortgage professional, or someone interested in getting started with small multi-unit properties, this conversation offers an introduction to a financing option you may not have considered.

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