All Forum Posts by: Coral Hernandez

@Mary M.

I agree 100%, at the end of the day, all you have is who you are as a person and the ones around you that you love. Being a good person goes a lot further than a dollar ever will. 

Hey guys I have been seeing alot of this as well.

You have some good questions. As in life, so in real estate; it is about who you know. Many times this phrase has been utter and it holds true. Lenders and Hard Money Lenders have been closing their doors over the past couple days. I can not give names, but they are big players and people will see them pulling out of their deals in the next coming days. Most of these Investor-backed Lenders will be pulling their funds for good, BUT NOT ALL.

Now is a good time to find and align yourself with a LENDER that will be with you and by your side during these times. Having a relationship like this can prove to be very lucrative and allow you to seize these opportunities.

Let's Connect and talk further, this is a good time for people ready to hustle!

How to Locate a Profitable Fix & Flips:

The Key to finding profitable deals is knowing not where to find the deal, but rather what Number makes it a good deal. Knowing your math is the Number One important factor to finding a good to great deal.

With that being said:

How to Locate a Profitable Deal!

• Wholesaler –
  • Individuals or Companies that have Properties Under Contract. They then sell the rights to purchase it to Investor or Buyer
• · Real Estate Broker
  • They represent multiple “Sellers” of properties. They have relationships with Owners and Investors directly, in which they are entrusted to Market and Sell their houses.
• · “In Pocket Deals”
  • Essentially “Off Market Deals”, or Properties that you can purchase before they hit the open market. This can occur, usually through a family member or friend that is or knows someone that is getting ready to sell and you can get it at below market price

• · Direct Mailing & Marketing (social media, SEO, Google Ads)
  • Another way to obtain Deals Off Market or Below Market Value
• · Driving for Dollars
  • A technique where you drive around in neighborhoods that you are looking to invest in, and you look for Distressed and/or Value-Add properties. Then, you creatively find a way to Approach and ask to Buy the House from the Owner (we’ll cover this in a future post)
• · Auctions
  • Pretty straight forward, Auction Houses place “Distressed Properties” up for bid. These houses can often time be Sight Unseen and can be High-Risk High-Reward for the Non-experienced Investors
• · Local R.E.I.A. Meetups
  • Collection of like-minded individuals in the Real Investment Field, who gather to network and discuss potential deals
• · Online Blogs and Networking (BiggerPockets, Linkedin, etc…)
  • Same as above
• · Bank Asset Managers for REO properties
  • Properties that are “Distressed” and Banks want/need to get off their books

Point Blank you have to be creative and utilize a collection of different strategies, such as the ones mentioned above, and see what Blend works for you.

@Robert Mccorkle

Hey so 70% is the amount the HML is paying of the Purchase Price. 1005 of the rehab is covered and no down payment is due on the rehab money. Your Down Payment is $12,000.00. And 50% ARV is After Repair Value, so that means the Loan they are giving you is equal to 50% of the ARV ($126,000)

You are providing $12,000 of the $40,000 Purchase price. So the Hard Money lender is Loaning you $28,000 + $40,000 Rehab = $68,000 total loan size.

So $68,000 is the amount you pay interest on every month. If your rate is 10%, then you are paying $6,800 in Interest for 12 months, broken down into Monthly Payments, this case would be $566.66/ Month

Hope this answers your questions.

Let's Connect

@India Brown

   Hey India,

That is a great question you have. And that is the last thing you want to do is pass. This is something that you need to address. If you are being asked for a POF it can mean a couple things, but most often then not, its because you are new to the game. And that is ok if you are, if you are not, well you shouldn't be running into this problem ( we need to speak further if you are).

If you are running into this, the people you are engaging with perceive you as a Newbie and don't want their time wasted or don't have the hustle it requires to work with a new Inventor. Providing and/or learning how to obtain a POF is very simple. It all starts with who you are choosing to finance your deals. The old saying " WHO, not what" you Know, go super far in Real Estate. A Proof of Funds letter is simple to obtain and should not stop you from pursuing a deal.

Lets Connect; and discuss further! 

@Joe Cassandra

     Hey Joe,  

    You have some good questions. As in life, so in real estate; it is about who you know. Many times this phrase has been utter and it holds true. Lenders and Hard Money Lenders have been closing their doors over the past couple days. I can not give names, but they are big players and people will see them pulling out of their deals in the next coming days. Some of these Investor-backed Lenders will become dried up, because the Investors have and will be pulling their funds for good.

    Now is a good time to find and align yourself with a Lender that will be with you and by your side during these times. Having a relationship like this can prove to be very lucrative and allow you to seize these opportunities. Many people have heard the success stories and deals from that time period; well, now is your time to have your own. Don't be left on the sidelines because you were to nervous to take a risk. You might actually enjoy the freeing feeling of it. Having the ability to control your everyday life is one of the best and amazing feelings, and its by these risk we take that allow us to obtain this.

     We look forward to this journey with you all. You can get your deals funded, that ones that do it right are still around.

Let's Connect!

@Robert Nelson

We have seen a sharp spike in the amount of Lenders and Hardmoney lenders pulling out of deals. Numerous HML have closed their doors.

But there is no need to worry. There is and will still be HML available. The one's who were doing it right will still be around.

Now is an opportunity for people to strike. What is going to happen is inevitable, and there are deals to be had. Remember, every house has a number that makes it a good deal. You do not find a good deal, you make one!

Let's Connect!

What is a Hard Money Loan?

A loan that is Secured by a piece of Real Estate Property

The funds are generally issued by Private Investors or Companies

The Borrower will receive Funds based off of the Property being purchased

This is considered an All Cash Offer and Transaction

Typically, the Length of Loan is a 12 Month Term

A Hard Money Lender is an asset-based lender

Closing Times are generally 14 days or less

Finding ways to use other people's money along with your own is essential in Real Estate Investing, that is, if you want to be successful.

You are giving yourself the ability to invest in properties you normally would not have been able to, or would have had to wait substantially longer before doing so.

Depending on your Real Estate Strategy, the number of houses you can purchase and Flip/Rehab in a given time period, will determine how successful you are. The type of Financing you receive is critical to this process and will determine how many properties you can purchase in a year and at what cost.

Hard Money allows for an all-cash quick-to-close option when purchasing “Distressed” or Value-Add Properties. Don’t lose out because you didn’t do your homework!

How to Locate a Profitable Fix & Flips:

The Key to finding profitable deals is knowing not where to find the deal, but rather what Number makes it a good deal. Knowing your math is the Number One important factor to finding a good to great deal.

With that being said:

How to Locate a Profitable Deal!

• Wholesaler –
  • Individuals or Companies that have Properties Under Contract. They then sell the rights to purchase it to Investor or Buyer
• · Real Estate Broker
  • They represent multiple “Sellers” of properties. They have relationships with Owners and Investors directly, in which they are entrusted to Market and Sell their houses.
• · “In Pocket Deals”
  • Essentially “Off Market Deals”, or Properties that you can purchase before they hit the open market. This can occur, usually through a family member or friend that is or knows someone that is getting ready to sell and you can get it at below market price

• · Direct Mailing & Marketing (social media, SEO, Google Ads)
  • Another way to obtain Deals Off Market or Below Market Value
• · Driving for Dollars
  • A technique where you drive around in neighborhoods that you are looking to invest in, and you look for Distressed and/or Value-Add properties. Then, you creatively find a way to Approach and ask to Buy the House from the Owner (we’ll cover this in a future post)
• · Auctions
  • Pretty straight forward, Auction Houses place “Distressed Properties” up for bid. These houses can often time be Sight Unseen and can be High-Risk High-Reward for the Non-experienced Investors
• · Local R.E.I.A. Meetups
  • Collection of like-minded individuals in the Real Investment Field, who gather to network and discuss potential deals
• · Online Blogs and Networking (BiggerPockets, Linkedin, etc…)
  • Same as above
• · Bank Asset Managers for REO properties
  • Properties that are “Distressed” and Banks want/need to get off their books

Point Blank you have to be creative and utilize a collection of different strategies, such as the ones mentioned above, and see what Blend works for you.

Is this Deal Profitable? How to Determine:

Step 1:

• o Identify the Deal Strategy
  • Fix & Flip,
• Rental (Buy & Hold)
• BRRR (Buy,Rehab,Rent,Refinance)

Step 2:

• o Determine the ARV (AFTER REPAIR VALUE) – Use Comparables, which are recently sold Houses in that area that are similar in Style/Structure.
  • This can be obtained by an “Appraiser”.

Step 3:

• o Determine your Purchase Price (Highest Dollar Amount you will pay for the deal to make sense)

• o Calculate the Total Cost of Repairs and Closing Cost
  • § “Deal Economic sheets” can be very useful to streamline this process for determining closing cost (title, tax, lawyer, etc.)

• o Add [Purchase Price and Total Cost] together.

Step 4:

• o Minus the Amount from
• o [Step 3 Purchase Price + Total Cost] from
• o [Step 2 Projected ARV Amount]
• o = TOTAL PROFIT

This will calculate the total amount of profit you will make after listing and selling the property. Your “Profitability”