All Forum Posts by: Miguel Hernandez

Hello BP members. I am from Los Angeles, but I virtually fix and hold properties in Wisconsin. It’s been pretty slow for me so I sat down to go over some things I needed to scale my business to the next level. I realized I need more funds, a bigger network, and more leads coming in. Since these are my 3 main struggles, I had an idea to Wholesale properties in my current markets in Wisconsin. However I have a few questions and I’m hoping someone can help me out. 

With the current market rates and the fear some investors have, is there any advice an experienced Wholesaler can give? I know wholesalers rely directly on buyers, so how were you able to find buyers that aren't afraid of the current market? I havnt started but I have a fear that buyers still continuing  to purchase properties are very minimal. How can a new Wholesaler like myself stand out?

Also I work a regular Blue Collard job that takes about 40-60 hours of my time per week. So my strategy is to text blast, that way I could reach more people in distress to help with their situation. Hopefully God points me in the right direction to help those in need. Any advice on text blasting is much appreciated, thank you so much for your time. 

Hi BP members. Currently I work a Blue Collard job that I can’t leave just yet. I currently fix and hold properties in Wisconsin, but I want to start real estate here in California. I currently live in the OC. I fell in love with the world of Real Estate and I had an idea of becoming a Real Estate agent here in my hometown. However I have a few questions and I’m wondering can someone help me. Is being a “Part Time Real Estate Agent” a thing? Also in what ways will becoming an Agent negatively affect me if I want to invest here in California in the future? Thank you.

Quote from @Jerry W.:

@Miguel Hernandez, I obviously have no idea of the real situation with your contractor, but let me give you my experience.  Right now contractors are extremely busy.  Like everyone else when demand is high it is hard not to take on a lot of work.  I have contractors who are booked out 2  years in advance.  They try to figure out how long a job will take and plan it in.  When something really unexpected happens they end up behind schedule but already have start dates they have given to other people.  Often the dates are important, there is a baby due, or furniture is coming, or even supplies are going to be delivered and they cannot let them sit out.  Now if you want to ruin the relationship with your contractor jump him about the issue.  Maybe just ask him what his timeline is and will he be able to fit the rest of your project in?  If so what is a realistic timeline?  You said the mold was very extensive and it took a lot longer.  Did you really think that he did not have any other projects lined up?  The better the contractor the more they are in demand.  Just my 2 cents, but if I knew my project ran over long in time because of issues that were not his fault, I would try to be very understanding.

Hey Jerry, thank you for this post. This is my first time working with a contractor so in my head I feel like it should have been completed.
Yes the work was a lot and the mold set us back. Thank you for sharing your wisdom. I feel extremely better and I will be more patient. 

Hello fellow BP members. Hope everyone had a great Labor Day weekend.

I am from Los Angeles but I target homes in Wisconsin. Currently I am in the process of rehabbing my first BRRRR, but I've ran into an issue.
My contractor and I started off great. He gave a great bid, we discussed the rehab, rehab budget, and we both came up with a reasonable date for the work to be completed. However, during this rehab process, one of my units (the property is a duplex) had LOTS of mold in the kitchen. The mold was so bad, most of the walls had to come out in both units! The cabinets had mold in them as well. This added a couple more thousand to my rehab budget, which I was fine with because I gave myself some cushion. I know this issues will cause the rehab to take a bit longer, but now we are 1 month behind schedule. Our contract states that work should have been completed August 3rd. So I was trying to be understanding and nice, I called my contractor to get a new confirmation date, and he said he got on another job that will be taking him away for a little bit, but how can he take another job when my rehab is behind? I don’t want to create bad blood, but I’m also losing money because this rehab is taking FOREVER. It’s been almost 3 months. Can someone please help me, I am frustrated and want to blow up but I know that is not good business. How would you handle this situation? Thank you.

Quote from @Nicholas Creahan:

Hey all. I am buying a property in Cleveland area to BRRRR. I am in the initial phases of getting a cash offer accepted. I have a pretty good realtor and property manager. I have a decent contractor lined up, though I have not worked with him yet, people have recommended him and their reviews seem legit. Last bit, which I guess is my question. Should I have a lender lined up and pre approved before rehab OR wait until rehab is done or nearing done until I get one in place? I am new to BRRRR, so any insight would be much appreciated! Also, I have not asked my realtor if he recommends any lenders yet, but does anyone have a Ohio lender they recommend? Thank you to the moon and back for any answers to my questions!

-Nick 

Hey Nick, congrats on your investing journey. When you talk about a Lender, are you talking about the refinance period, or the purchase? 
I assume you’re talking about the refinance period. Having a lender to refinance your property when it’s all done is very important but I don’t think it is needed ASAP. Definitely shop around and see who can offer you the best terms. Since it is a BRRRR I assume the property needs some rehab work done, so that’ll give you a little time to shop around for the best terms.
Have you read David Green’s BRRRR book? He gives GREAT advice on what to look for when finding a lender to refinance your property. 
Goodluck I hope you’re able to close on a property soon!

@Matt M.

Hey Matt thanks for your insight! I thought that as well. If I hired him as my contractor to get the rehab done, there would be no reason to hire another contractor to help with the painting and flooring.

@Brad Hammond

Thank you for your insight, I will contact him and respond with that tomorrow morning. I believe he wants to hire other contractors to do that work but I disagree. I hired him as the GC so the work should be done by him as stated in the contract

@Patrick Liska

Thank you for the response, I am definitely going to try and set things strait tomorrow.

Hi BP members! I need a little help. I recently purchased a duplex in WI and I am in the process of rehabbing the property. I hired a contractor and things have been going fine recently until today. I received a phone call today that my contractor wants to have someone else come in and paint the property, as well as lay LVP in the property. He told me the price the person is charging and that’s where I got a little confused.

In our contract we both signed, I have a scope of work document saying the contractor will paint and lay LVP flooring, however, the contract states that he can hire on people to the job-site. Does this mean I have to pay the people he hires on? I feel like I hired him to do the job (paint and lay LVP) but now he is just out sourcing the work. I am paying him 12k for rehabbing this 1 unit. I paid half in the beginning and the rest will be paid once he is finished, (it’s in pretty rough shape), but I expect a 12k performance done by him. If he wants to hire people on to help him paint and lay LVP, does that come out of the 12k I am paying him, or does that have to come out of my pocket?

Any help is appreciated, thank you.

Thank you Drew