All Forum Posts by: Francisco Hernandez

Quote from @Brandon Jensen:

Happy Friday everyone! :)

I am looking for any tips on how to go about getting the green light on getting funded for my first of many fix & flips, I started a LLC a few months back and my credit score is pretty low as I've broke both my legs over a period of time.(healed now) I have someone with a 620 (not the best) credit score willing to help me get into a business loan to try and get around 50k funded so I can use a DSCR loan to get started as id need 20% down. So I was thinking if I could get a small business loan to get my 20% covered and then get into a DSCR loan and be off to the races. Any input, ideas or suggestions on how to get going? Im damned and determined to get going asap and am doing what I need to, to get my credit back up so this is all easier for future flips!

Truly thankful for this group of extremely helpful minds! 

 My advice would be to network first. Find PMLs PMPs or buyers first and bring them deals, if you consistently bring deals they could eventually fund your flips 100% but they wont fully fund your first one and let you take off. They will probably only partner with you for the first few to see that you can pull it off. 

Quote from @Manny Vasquez:

Another one is "Sub-To"....but be careful of buying into these expensive "Sub-To" guru programs. Every gury, especially Pace Morby, makes it seem like there are a ton of these "Sub-To" deals out there when in reality, there are very, very few of these types of deals.   The "zero-down, take-over-my-2.5%-mortgage" is a unicorn example that he likes to throw out there as bait for all newbies to buy into his program.  

The subto community does not only teach subto. We teach Wholesaling, Lead Gen, Buy and hold, Business acquisitions, Networking, Sales, Underwriting, Land Deals, PML, PMP, Mobile Parks, Commercial, Cold Calling, Integration ETC. 

I've networked with beginner investors all the way up to people with 500 doors inside subto. 

Hate to spoil it to you but subject to deals are like 10% of the daily zooms. We are teaching you how to become a well rounded investor. The path you take is your choice. 

2% deals are also posted every week still to this day but nowhere near as popular as they were in 2022 and also very competitive to get in. My guess is that a lot of these sellers will either exit their current loan or be open to subto as soon as the rates ease up. 

Quote from @Doug Smith:

I'm a lender, but my wife and I invest a lot too. We've used wholesalers for some deals, but we're seeing them build in more and more to the spread where the numbers increasingly don't work in our models. Some still are careful to leave meat on the bone, but a lot are getting really greedy and play loose with their statements regarding ARV and Estimated Rehab Budgets. If a wholesaler is going to earn our long-term business, they need to be transparent and honest. We might say no to them, but if they are good to work with, honest, and transparent, we'll invest more and more time in analyzing their deals. Some we won't even waste our time with anymore.

 This is great advice. Wholesaling did not get too popular. Tons of people are getting burned out, it's a job not investing. 

Quote from @Doug Jones:

Wholesaling ain’t as easy as it used to be! It’s become over saturated thanks to the Guru boom in recent years sharing all of the trade secrets on YouTube (heck, that’s how I learned!).

My long winded question is this:

What are some fresh new money-making strategies ( real-estate or not ) that aren’t on the hype yet, that don’t take much start up capital, similar to wholesaling before it got popular?

Plenty of money to be made in wholesaling. How many agents are dropping out of the business? Have you looked? What do you think they are doing? My first choice would be wholesaling. "I got access to the MLS, I am viewed as an expert with my license, I know and can follow the regulations better than most wholesalers and I got better sales skills" If anything, there's just more competition. Only the people with a real business model will stick around.

Quote from @Wesley Bryant:

What are the main advantages of paid subscriptions like Propstream and Batchleads over free ones like Propwire. It seems like Propwire does the same thing but for free but am I missing something? TIA

 Bulk Data will always be outdated and inaccurate. Propwire makes money off the skip tracing. Not the data. You can gather propwire's free data and build a skip tracing tool (if you are good at coding) and get pretty decent "free" data. However now you have to spend time or money to figure out which one of those contacts actually wants to sell. 

The best data is not on those websites and it's not cheap. However, Batch, propstream and propwire are great places to learn the basics. 

Quote from @Ivana Timmers:

Hello everyone, 

My name is Ivana Timmers and I'm from New Jersey. I am starting my journey into to real estate investing looking to do wholesaling , I would love to connect with anyone who has knowledge on the topic. I am looking forward to connecting and working with new people. This is a journey I am eager to start I guess you can say I am all in!

 Hi Ivana,

Wholesaling is a great way to get started in real estate. 

HOWEVER, you need to consider what it is. 

Wholesaling is a sales and marketing business. It is NOT investing. 

Can you keep some of the properties you get under contract? YES. 

Are you going to make money that month if you don't sell contracts? Probably NO. 

Are you ok with building a business that needs constant sales and marketing training? 

Are you willing to start in less popular markets before competing with experienced companies using the big markets?

These are all questions to consider. If you'd like to have a longer conversation. Reach out. 

Quote from @Dani Siebzener:

Quote from @Francisco Hernandez:

Quote from @Paul Baldwin:

Just got off phone with https://www.coldcallerpros.com

Love to get some feedback on these guys OR other recommended cold calling services. Thnx. 

 My advice would be to cold call single line with very specific niche data as opposed to bulk data like propstream or batch. I network with a lot of cold callers and I would love to help you save some money and time by not using those services anymore. The entire industry is shifting away from cold calling because of restrictions. Let me know how else I can help. 

What do you suggest using then?

Single line with niche data as previously stated. You can still use VAs but you need to train and supervise. This is so your money is not going down the drain. Hiring a company is cool but if you don't have direct supervision of the cold callers, there's tons of scams where the companies are just harvesting leads with your money posing as a lead generation company. 

Quote from @Manish P.:

Thanks @Francisco Hernandez for the response. My end goal is to relocate to TX and in the interim , if I can use this opportunity to hold on to one door as a rental property( my current home ), I would like to assess the financial merits and demerits of the same. Having said that, I am not sure if I follow your suggestion of "negotiate and walk away with extra cash". If you can share some more info on that, I will appreciate it. 

@Shanequa J. Thanks for your reply. I did accounted to the said expenses and I believe it will cash flow of $500. Regarding two mortgages, thats a great point and I will check with my lender on that. 

There is a lot of variables in your question. A lot of "maybes" if you are ready to be a landlord, then this clarifies a lot of things. If you are in the 'maybe' stage, then maybe this is not the right time for you to jump into that particular field. 

I think that's the first decision you need to make before we even elaborate in any more advice.  

Quote from @Nathan Frost:

Quote from @Francisco Hernandez:

Quote from @Nathan Frost:

Quote from @Francisco Hernandez:

Quote from @Nathan Frost:

Quote from @Francisco Hernandez:

Quote from @Nathan Frost:

Hi, I have about 13 rental properties likely 14 by end of the summer.  Where is the best place to apply for business line of credit say 30-70k.  I don't need it immediately but likely in case of emergencies or vacancies.  Any advice is warranted on where to get this.

 Fund and Grow is what most people use in my circle. It works. They negotiate everything for you depending on your credit profile. They tell you upfront what they can get before you accept their service. 

 Link?

 Just google "fund and grow". Ive had bad experiences posting links in other forums. 

 I found them.  Is it a line of credit or credit cards?

 They are a service. They find credit card companies that issue business credit for your specific profile. 

 So no line credit?

Business Credit cards will have a higher limit if your credit is in good shape and depending on how seasoned your LLC is. These services provide you with the opportunity to maybe land a 0% for 12-18 months card.

If you specifically like the thought of a line of credit then you are going to have to do it the old fashioned way and apply at banks and see what they offer you. All credit cards are lines of credit but not all lines of credit have a card attached to them. It really just comes down to each bank and what they are willing to do for you. 

Try banks that you already have a relationship with. More often than not, they are more accommodating to providing you with a more generous line of credit or terms. 

Quote from @Shanequa J.:

Quote from @Francisco Hernandez:

Quote from @Shanequa J.:

Quote from @Francisco Hernandez:

Postcards are cool. Here's a few tips. 

Try to network with other wholesalers to see how much volume you need, what type of postcards and how competitive each market is. 

Have a process on what you are going to do with these leads. 

When offering a seller options you are selling speed vs convenience, do they want to move on fast? cash offer for less. Do they want top dollar? go in the MLS and wait for the right buyer.

Hope this helps. Anything else reach out. 

 I'll be sending 3k postcards every 6 weeks.

Should my postcards be geared towards listing the house or buying it as an investor?

I'm mailing postcards bc I want to find off market investment deals 

 My advice would be to find really good data and focus on one niche. Try to get good at one particular type of seller first. Are you targeting foreclosures? probates? divorces? Expired listings? all good sources but in the end you need to focus on becoming good at converting a particular type of lead. Postcards can work, track your numbers, be specific with your data, have a process in place on how to convert these leads and you increase your chances. 

I'm mailing to tax delinquent owners. I don't want to sound rude, but you've replied twice with information I already know about. Yet you still haven't answered my original question.

The first reply had all the information you need to consider and then use to make a decision that fits your business. 

Not every seller wants to use a realtor, not every seller wants to sell their house at a discount. If you advertise as a realtor you are specifically targeting people that are thinking about listing their homes. Anyone that is in emergency mode, won't contact you because they need help now. 

If you advertise as a wholesaler, you are pushing away anyone that wants to list their home at market price because they know you are trying to make a cash offer and that's not for them. 

You need a sales process that addresses both if you want to be able to help both customers. 

That is literally the expanded version of the first reply. If you only do one, you are cutting your possible leads by half.