All Forum Posts by: Matthew Bernal

Thank you for this information, @Brandon Ribeiro! I'll check these platforms out!

@Abraham Garza I'm glad I can help! Let's connect to discuss deals some time!

First off — congrats on your first land acquisition. I know this feels like a gut punch right now, but you’re not out of the game — you're just in a holding pattern that needs a strategic pivot.

I’ve worked with dozens of ground-up builders and land investors across Texas and the Southwest, and unfortunately, utility capacity limitations are becoming more common — especially in high-growth areas where cities are trying to catch up with infrastructure demands.

🚧 Here’s What You’re Dealing With:

• Moratorium or Tap Hold: Your city has essentially put a temporary freeze on new utility connections (water/sewer), often due to:

  • Treatment facility limits

  • Infrastructure funding delays

  • Regional water agreements in flux

The good news: These are usually temporary and politically pressured to resolve, especially when development demand is high.

🧠 Now… What Are Your Options?

• Secure the land by ensuring taxes are current and title is clear.

• Apply for any other permits (grading, erosion, site layout) that don’t require water service — this keeps you moving forward.

• Design the home and submit architectural plans (if the city allows), so once taps are available, you're shovel-ready.

• Monitor city council agendas and planning board minutes — developers often get early access to updates through these channels.

• File a Right of Way Permit or work with a civil engineer to get partial approvals (culverts, drive cuts, sidewalk plans).

🧩 Why this helps: You control the dirt, build goodwill with the city, and shorten your timeline later — without sinking more budget now.

• Short-Term Lease: Can you lease it to a neighbor for temporary parking, storage, or staging?

• Yard Rental: Some small contractors pay to park trucks/trailers on fenced lots.

• Land Partnership: Pitch a nearby builder to co-develop a utility petition or infrastructure agreement. They may already be fighting the same battle and have more leverage.

📉 These moves won’t create massive cash flow, but they soften the burn and can offset property taxes or holding costs.

• If you’re on a lot large enough to support dry shell structures, you may be able to:

  • Build a storage barn or detached garage for future use

  • Erect non-habitable structures that don't require taps (check zoning codes!)

  • Pour driveway or flatwork early to lock in prices before inflation hits

⚠️ Important: Don't overdevelop without knowing utility impact fees — those could change before water access is restored.

🚨 What Not to Do:

• Don’t panic sell. You’ll likely lose equity due to timeline uncertainty.

• Don’t violate city code. Drilling a well against policy or bypassing permits could kill future resale value or make the lot unbuildable.

🧭 Strategic Perspective:

This situation — while frustrating — won’t last forever. And once the moratorium lifts, build-ready lots with clear title will be in high demand. You’re in a better position than many developers who didn’t buy in early.

If you’d like, I can send over: ✅ A “Land Holding Strategy” checklist
✅ A sample Utility Delay Timeline Planner I’ve used with private builders
✅ A list of alternative monetization ideas during holding periods

Just DM me the word “CULVERT” and I’ll send it over. You’re not alone in this — and you’re still in the game.

Great question — this model is becoming increasingly common, and it’s important to vet both the operator and the structure.

I've worked extensively with short- and mid-term rental operators, both as an investor and consultant, and Wanderlust Ventures appears to follow the "master lease arbitrage" model — where they lease properties from owners and profit by subleasing them on platforms like Airbnb or for corporate housing.

This structure can be mutually beneficial when the operator is experienced, well-capitalized, and manages properties professionally. However, there are a few things to consider before moving forward:

✅ Pros:

• Guaranteed Rent: You receive a steady payment each month, regardless of occupancy.

• Property Maintenance: Professional operators typically keep the property in good shape to preserve guest satisfaction and reviews.

• Hands-Off Management: They usually handle all day-to-day operations, including cleaning, guest screening, and maintenance.

⚠️ Risks to Watch For:

1. Lease Default: If bookings slow down or they mismanage the property, you could end up with a broken lease.

2. Zoning & Regulation: Ensure your property is legally zoned for short- or mid-term rentals. Otherwise, it could be shut down by local authorities.

3. Insurance & Liability: You'll want to review your insurance policy and verify they carry commercial liability insurance and/or a STR rider.

4. Reputation Risk: Subpar operators can damage your property and your name if neighbors or HOAs complain.

🔍 Diligence Checklist:

• Ask for references from other landlords they’ve leased from.

• Request financials or proof of reserves.

• Get clarity on how they screen guests, handle noise complaints, and manage turnovers.

• Make sure the lease includes clauses that allow you to inspect the property periodically and address damages swiftly.

🧠 Competitive Alternatives:

There are quite a few other players in this space — some examples include:

• Sonder (larger urban inventory, more institutional)

• Minty Living (focused on mid-term in select cities)

• The Guild, Blueground, Landing — mostly corporate housing

• Local boutique operators or property managers offering revenue share or co-hosting models

If you're interested, I’ve structured creative leases with performance-based kickers, where base rent is guaranteed but additional upside is shared when occupancy or revenue exceeds certain benchmarks — a win-win for both parties.

Happy to review their proposal or lease agreement with you if you’d like a second set of eyes. Just DM me.

Hope that helps!

— Matthew Bernal, Investor | Consultant | Managing Partner, Pryceless Ventures

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $156,000
Cash invested: $197,000

Purchase Price: $156,000
Rehab: $24,000
Hold Time: 3 Months
ARV: $265,000

What made you interested in investing in this type of deal?

This was a great deal to launch my Houston operation. Low purchase price, simple renovations, great area.

How did you find this deal and how did you negotiate it?

I found this deal by skip tracing pre-foreclosures in Houston and then hiring a cold caller off of Fiverr.

How did you finance this deal?

I used Capital Connect to fund 80% of the purchase price and 100% of the rehab, and then partnered with a private money lender to cover the gap.

How did you add value to the deal?

1. Replace floors
2. Paint interior and exterior
3. Replace roof
4. Replace fence
5. Replace surfaces in kitchen and bathrooms
6. Replace appliances

What was the outcome?

1. The seller made a healthy profit, allowing her to reset her financial situation
2. The renovations are being completed ahead of schedule
3. The property goes on market next week

Lessons learned? Challenges?

The big lesson from this deal was the power of outsourcing seller outreach and creating efficient systems for my new team in Houston.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes!
1. Grant Haynes from Capital Connect
2. Wendel Jones- Consultant

DM me if you want their details!

🔹 Best Loan Options for Building an ADU in Garden Grove, CA 🔹

Great question! Since you own the property free and clear, you have several financing options to consider. Each has different advantages depending on your tax strategy, cash flow goals, and risk tolerance.

🏡 1. Home Equity Loan (HEL) – Best for Fixed Rates & Predictability

A Home Equity Loan (HEL) lets you borrow a lump sum against your home’s equity at a fixed interest rate. This is a solid option if:

✅ You want predictable monthly payments

✅ You’re looking for a one-time financing option for ADU construction

✅ You prefer a longer repayment period (10-30 years)

🔹 Potential Tax Benefit: Interest may be deductible if the loan is used for substantial improvements to the property. Consult your CPA to confirm.

💳 2. Home Equity Line of Credit (HELOC) – Best for Flexibility

A HELOC gives you a revolving line of credit based on your home’s equity. Think of it as a credit card secured by your property with a variable interest rate. Great if:

✅ You want flexibility and only borrow what you need

✅ You plan to do construction in phases

✅ You want interest-only payments during the draw period

⚠️ Risks: Since HELOCs have variable interest rates, your payment can increase if rates rise.

🔹 Tax Benefit? Similar to a HEL, interest is potentially deductible if funds are used for home improvements.

🏗️ 3. Cash-Out Refinance – Best for Low Interest Rates

With a cash-out refinance, you replace your existing mortgage (which you don’t have) with a new loan for a higher amount, pocketing the difference. This works well if:

✅ You want one mortgage payment instead of multiple loans

✅ You can lock in a low, fixed rate

✅ You plan to invest in additional renovations beyond the ADU

⚠️ Downside? You’ll start a new mortgage with closing costs, so it’s not always the best option unless you’re borrowing a large amount.

🏦 4. Construction Loan – Best for Larger Projects

If you’re building a high-end ADU, a construction loan may be a good option. These are typically short-term, interest-only loans that convert to a traditional mortgage upon project completion. Best if:

✅ You want funds disbursed in stages to control costs

✅ You plan to significantly increase property value

⚠️ Downside? These loans can have higher rates and require more paperwork.

📌 Final Thoughts: What’s the Best Option?

If you need a lump sum with a fixed rate → Home Equity Loan ✅

If you want flexibility to borrow as needed → HELOC ✅

If you want to refinance and access equity at a low rate → Cash-Out Refi ✅

If you plan a large-scale project → Construction Loan ✅

💡 Pro Tip: Talk to your lender and a CPA to ensure you’re maximizing tax benefits and choosing the best loan structure for your long-term goals. If you’re planning to rent the ADU, a HELOC or cash-out refi could be great options since interest may be deductible as a rental expense.

Would love to hear what others in the community have done for their ADU financing! 🚀

🚀 High-Yield Real Estate Investment – Earn $52,500 in 10 Months! 🔥

I’m seeking a private investor (NOT institutional money) to fund $350,000 for a high-value real estate redevelopment in Houston, TX (6636 Bellfort Street, 77087).

This is a short-term, secured investment with a 15% fixed return ($52,500)—backed by a $4M asset and strong investor protections.

💰 Deal Snapshot:
📌 Purchase Price: $1,200,000
📌 Rehab Budget: $550,000
📌 After-Repair Value (ARV): $4,000,000
📌 Hold Time: ~10 months
📌 Closing Date: March 31, 2025

💵 Investor Offering:
✅ Loan Amount: $350,000
✅ Fixed Return: $52,500 (15% ROI)
✅ Total Payback: $420,500 at closing

🔒 Your Investment is Secured By:
✔ Deed of Trust (recorded lien protection)
✔ Position on Property & Builder’s Risk Insurance
✔ Promissory Note & Personal Guarantee
✔ JV Agreement (optional for equity participation)
✔ Late Fee Protection: $250 per week if repayment is delayed

📢 Who This is For:
This opportunity is for an individual investor with liquidity looking for a hands-off, high-yield investment—NOT banks or institutional lenders.

💡 Why This is a Great Deal?
🔹 10-Month Hold – Shorter than a typical development project
🔹 Strong ROI – 15% fixed return on secured capital
🔹 $4M ARV – Significant upside potential
🔹 Secured Investment – Multiple layers of investor protection
🔹 Experienced Operator – Proven track record in real estate deals

📩 Let’s Make Money Together! 🚀
Interested? DM me now or comment below to learn more!

#PrivateMoneyLender #RealEstateInvesting #HoustonInvestments #FixAndFlip #HighReturns #PassiveIncome #PrivateLending

@Cody L. It's located off of Bellfort. I'm still in the fundraising process so maybe we can collaborate. 

@Taylor Georges wow. I'm sorry to hear that! How are you dealing with all of that?

You're in a solid position with a cash purchase and a tenant locked in for two years, which eliminates initial vacancy risks. Let's break down your Cash-on-Cash Return (CoC) target and whether this deal aligns with strong investment returns.

1️⃣ Calculate Your Cash-on-Cash Return (CoC)

Formula:

• Total Cash Invested = $272,000 (since you're buying in cash)
• Annual NOI = $10,600

Is 3.9% Good?
🔹 For cash purchases, investors typically aim for 6%–10%+ CoC returns.
🔹 3.9% is low for a pure cash deal, but appreciation & rent growth may improve the long-term picture.

2️⃣ Return When Factoring in Appreciation

You're estimating 3% appreciation annually.
After 5 years, estimated property value:

That’s $50K in appreciation in addition to your rental income.
Your total return (NOI + appreciation):

Over 5 years, this represents a 37.8% total return on your $272K investment (before selling costs).

3️⃣ How to Improve Your CoC Return

✅ Leverage the Purchase with a Mortgage

• Even at 50% LTV financing, your CoC return can jump to 10%–15% due to less cash invested.

✅ Increase Rent Over Time

• If rents increase 3–5% per year, your NOI rises, improving returns.

✅ Consider a Cash-Out Refinance Later

• If the property appreciates to $370K, you can pull cash out and reinvest in another deal.

Final Thoughts: Is This a Good Deal?

• For a purely cash purchase, 3.9% CoC is below ideal.
• If you plan to hold long-term & expect rent growth/appreciation, it can work.
• If you prefer higher returns now, consider adding leverage or finding a deal with stronger rental cash flow.