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Feb. 24, 2022

EP 124: Creative Finance & Subject To With Charles Hernandez From HBHS

EP 124: Creative Finance & Subject To With Charles Hernandez From HBHS

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Transcript
and if you're into 35 g's let's just say
you do get uh let's just say you were
your plans were to rent it
and you were you're only going to make
let's just say 250 on the back side and
you're into 35 g's let's divide that by
two by 250
that's 140 months guys
divide that by 12
that's 11 years 11.5 before you're gonna
be even
okay let's back up
same example
let's just say that you decide well i'm
going to wrap i'm going to do what we
call a subject to wrap i'm going to take
a subject too i'm going to wrap
but i got to pay to do 10 got a restate
10.
i got to uh you know i i
i got a i got um
i got a rehab 10 that's 30 and then the
rest of the cost
think about this i said this last time
and so i always say this when i'm
talking about subject to
what if you decide you're going to wrap
and the down payment in the area the
average down payment in the area is only
15
if the average is only 15 000 and you're
entered 35
or yet now you're at 20.
and let's just say you're only going to
collect 300 on the backside
so let's do that 20 divided by 300
that's 66 months it's like five years
guys before you're going to be whole
and keep in mind if you wrap it and that
person doesn't pay you still got to pay
the underlying league
what do they destroy the home what if
you got to proclaim
so you got to be real careful you have
to you have to understand
that you can't get over leverage on
these properties so let's let's back up
a little bit now let's back up
so let's just say we're looking at this
we modified the properties we know we
can get the 10 000 away we got to put 10
into the property
but this guy wants 10.
i say look bob
i'm interested in doing this deal man
but i can't give you ten thousand
dollars up front man i
i'll do it but i can't give you the tent
up front now i'm only going to do this
if i want the deal
your property is about 10 in rehab
there's 10 reading statements and it
costs me some money to try to get that
worked out you want 10 i can't do it
i'll tell you what i will do
let's do a subject to
and let's secure your 10 000
with a silent second
what's a silent second
has anybody ever heard of that
no
make it make it make it very simple
you gonna put up a second link position
well i mean i'm gonna create paper i
call that if i'm gonna create paper
then i call that a second you know a
regular second i'm calling this a silent
section
so i have created we call them
subsections i have created sub seconds
and basically what we're doing is we're
tying ten thousand dollars to the
property on the second loan and and if i
can get away with no it was no interest
i'll do that and i'll pay him over a
period of time but a solid second is
we're not recording anything
so i'm gonna take that ten thousand
dollars i'm gonna say how how
what payment can i pay this guy
and where i can get this thing paid off
let's say in 24 months so in 24 months i
said i do 10 000
divided by 24 months
so i say dude i gave 416
for the next 24 months
now if the property think about this if
the property's making let's just say 300
to 350
then you're using those funds to pay
you're using his own property to pretty
much pay a student
if you don't want to cough up that 10
g's because you may have to put 10 uses
of property now let's back up a little
bit
what if you decide to wrap the property
the down payment the down payments in
the area is 15 g's
did you get your money back
you got your money back guys
you got your money back you're making
money from the rap you're paying you're
using that money you pay this dude off
in 24 months you're good how much are
you into this deal how much you into
this deal guys
nothing
that's that's
the type of stuff that we do when it
comes to uh creative financing um and
and and uh and mixing strategies
when you're doing subject to's or
or when you're creating reverse uh
reverse wholesale transactions okay guys
last time i talked for a long time this
time i just really wanted to do is give
you guys give you guys a little bit of
juice and then give you guys the
opportunity to ask me questions if i
don't know the answer i'll tell you i
don't know the answer uh but uh but if
it's something that i do along the lines
of stuff that we do i pretty much can
answer your questions so that's what i
wanted to do today some q a um give you
guys a little bit of information anybody
have some questions
bob what is it bob
hey thank you very much
um
so how long have you been doing this i i
missed the if you told us in the
beginning i apologize
so in 2003 i got into the mortgage
business
and um
and uh i ran uh some mortgage shops so i
ran uh pretty much did a lot of guppy
loans
and so i did i dealt with a lot of
investors back then and i was i did some
investments for myself but i was mainly
constructing deals and being real
creative at it when the market tank that
just facilitated a lot of private money
so i facility a lot of private money for
investors so i was the intermediaries i
was being real creative putting deals
together for people and then in 2012 uh
um because i had lost everything because
from 2008 today i lost um everything i
had gained uh and you know they're in
the boom
and then i created hbhs and we just now
we do it for ourselves so i've been
you know i don't know man
people ask me this question and i and i
and and i want
a big part of me wants to say i've been
doing this 2003
but if i had to say hey i've been going
100 for myself hbhs i'd have to say
2012.
10 years is still i mean that's that's
impressive and
um
so my question is
why would somebody that has
you know fifteen thousand dollars to put
down fifteen twenty thousand dollars put
down take on a nine percent interest
rate
that's a good question so
you got to keep you have to keep in mind
that there's a lot of people
they're not in a position to get uh
along with the bank
and and and so
you guys as investors
you have to be real careful who you uh
who you sell to so let's
let's let's talk about that that's a
really good
question i get a lot of individuals
and i've sold a lot of properties to
individuals who somehow or another come
up with 10 or 15 20 g's
and and and
it's really easy to be like i'm gonna
stop today
as the years go by and you do a lot of
deals you figure out you got to pick and
choose
who you want to accept that 10 15 20 30
40 g's from
because
did they earn that money
and and do they have the funds to go
forward
or did they get that money from the govi
or their mama leave that money
and then they're going to be paying you
late every single month that's the first
thing
the second thing is
here at hphs i deal with a lot of
foreign nationals
a lot of individuals who come from
mexico and they're like uh
man it's pretty much like a referral
thing now like i can i can email some of
them and say hey we're we're getting you
home here
you know on the north side of san
antonio these are the numbers we sent
all the photos and they got somebody
back in mexico that wants to move
here and buy a home you have to you have
to keep in mind that they can buy even
if they don't have um even though they
don't have residency they don't have a
u.s they don't use citizens they can buy
with a green card brother anybody can
buy it
you gotta have the right attorney to
throw up the paperwork and the reason i
love to sell to them
is one they always pay on time
they always pay on time um it just i
don't know for us our experience we went
through the kobe we had one person we
have 89 properties at a time
we just had one bad low but the majority
of our people that are foreign nationals
they always paying time now what i'm
about to say may sound cruel but i like
to be a realist i like to be realistic
and i don't like to pull punches
and
i could say that maybe foreign nationals
have a little more respect for their
money
maybe i don't know
we kind of have it like the entitlement
society here in the united states
maybe that's it that you know that's why
everybody pays late
but i think what it is is that
where are they gonna go man if they
don't pay
if they don't pay and i gotta i gotta
and i gotta and i gotta go legal with
them
do they really wanna go to court
i mean i'm just being realistic with you
guys i mean do i do i target them
because of that no
we like to sell to foreign nationals
because they always pay that's just the
main reason but uh
they they they to them at nine percent
nine percent here is all good because in
mexico
that could be 16 17 20 you see what
i'm saying
so you know just a little food for
thought brother and and look there's
americans that'll pay 9 all day long
because they can't get a loan
uh if you wanted to target other people
if you wanted to target americans for
example i target individuals who
have cash businesses like like uh like
people that work they have their own
businesses like like accountants uh like
uh
uh repo man um you know people that have
their own uh their own mechanics shop
people like that that have been in
business for a while a lot of these
individuals are writing a lot of stuff
off they can't go get a loan but they
have money to pay every single month so
just fyi man um be real careful who you
who you honor finance or even rent to so
did i ask you a question bob
yes thank you very much
yes sir anybody else
yeah i got a question um
this is wayne wayne what's up wayne how
you doing
i'm good how are you doing man i'm good
brother tell me what's on your mind
buddy
um when you go to subject two and um
all the paperwork is going through the
financial financial institution
how how much of the do on sale clause
like how like percentage-wise how much
do you come across that
so first when you know whenever i'm
looking at a subject to i wanna like for
example we're doing one right now give
me a second ariel
ariel
hold on guys
okay
eric i want to ask you a question
i'm live
yes okay come here guys we're going to
show you a little treat here this ariel
one of my top guys here
so we're doing a deal right now and uh
and uh see again right yes sir okay what
did i ask you for what it asked you to
get uh reinstatements mortgage
statements uh
and remaining balance of money remaining
balance and what did you get from
everything that you needed how far how
far behind is she uh so she's a year
behind her payment's around 1200 per
month so her give or take she's probably
behind in total around 15 to 15 000.
okay uh she has a remaining balance
of around 170
um
very new homework for a new home built
in 2017
it is an fha loan 30-year note
uh with 3.875 interest rates and we're
good and seems like it's a pretty good
deal so far okay man
okay get the photos we're going to write
it up guys remember i just told you
about that one
i brought him over here he was not in my
office
i don't need to validate but i'd like
you guys to see when i'm teaching i like
people to see real action right
so it's one of my young guys here man
he's we're going to take down this
subject too i already know i want it
it sits on a half acre
property's built 2017 i love new homes i
love new homes
i'd rather have a new home i'd rather
have a new home i'm getting an echo guys
i'm getting an echo guys but i'd rather
have a new home
um one day out the gate they got they
just said they got the loan tomorrow
yesterday i love that home no equity and
we can talk about that another time why
i don't care about equity what i care
about is the home you
do i got to rehab it
what's my cost into it so for example
this particular property
uh what i asked for is the documents i
want to see what type of loan it is i
want to see it's an fha now that doesn't
mean i'm going to call the lender i'm
not going to call the lender
i don't have to call it lender all i
need from the lender is is the rest
statement
if the rest statement is 15 000
then what i want to do is i'm going to
get a poa from the lady and i'm going to
i'm going to get that deal i'm going to
get into the resolutions department and
i'm going to try to negotiate a
modification
if i can modify that 15 g's
then i'm going to take that property
subject to the existing financing and
because i want to hold that property
long term
i'm going to push that i'm going to have
her push that deal into a trust
she's going to make me the the trustee
and she's going to assign the
beneficiary rights to the trust to my
llc so now my llc
owns the trust that owns the property
and i'm the trustee that gets to make
decisions
the reason i put it into a trust and
keep in mind guys a lot of people argue
about this there's some big time gurus
that argue about trust llc let me just
say let me break this down to you i say
all the time i talk about this
if you have not done a lot of subject
tunes
and you have no experience with sub two
and if you're talking to an attorney
that tells you it should be trust it
should be sub two you know what i say
how many do you own
i get it man you can write paper all day
long depending what type what side of
this table you're you're on you're going
to the other side is wrong but how many
do you own how many lenders have you
dealt with how many insurance companies
have you dealt with how many
bankruptcies have you dealt with how
many foreclosures have you dealt with
how many do on sales have you dealt with
if you don't know you don't know because
you haven't done it
so when you've done it a lot of times
you know
this if you push a deal into an llc and
you get a poa
and that individual dies
that poa is no good guys
that individual gets lost on you 10
years from now you're trying to sell the
property for some ungodly reason the
title the title company saying hey
we need to verify this poa
for this dude you can't find him guess
what where are you going to be at on
that
dealing with his errors
so we only put properties into llc's
when we're doing short-term transactions
up to three years and if we're gonna go
along
we're gonna put him into trust because i
become the trustee
as a trustee
the trust don't die
so it doesn't matter whether the pa goes
away now to answer your question wayne
on the on the due on sale doing so don't
scare me one bit man i've had two calls
on me i won't go into my unless you guys
want me to but you don't bother me man
you got to make sure the payments are
being made
um um
look you whether you're going into a
trust your name or an llc
the the risk is the same for all three
men but what i like
what i like with being in a trust is
i've had
lenders send us them acceleration clause
and i'll call them and and i'll submit
the trust documents and i'll be like
what and i'm real aggressive guys i'm
not passive at all i'm like what is
what's the issue here
well we see the dha i get it man what's
the issue
well the owner change i get it what's
the issue what are you talking about do
you realize that the owner can create
estate planning
you have to understand the people you're
talking to they're listening
they're talking to you nine times out of
ten they they
they're making decisions man or managers
making decisions they don't they don't
understand
that that they need what they need to
ask they need to ask well has has the
owner of the property signed up their
rights to
the trust they never asked they don't
know
but as a trustee what i tell them is
look
xyz person is indisposed has chose to
put the property in trust we're
administering the trust so the payment
can be made what's the problem
and and i've gotten to back down every
single time and guys as long as you're
making the payments on time you
shouldn't have a problem with with uh
with a lender man i'm i'm not gonna sit
here and guarantee that it won't happen
we got two two deals uh accelerated on
us back in 217
um 2017 we just paid them but uh but
we've had a lot of experience since then
dealing with that we want to sell
and uh and even dealing with a do
ourselves where we wrapped the property
out of a trust
and uh and the lender got really really
really uh i mean they they wouldn't get
off the acceleration cost so what i did
is i just undid the tr i just did uh
undid the wrap and i put it back into
the trust and then and then uh and then
and then i had my attorney contact them
and explain to me why they were gonna
foreclose on the trust
that's actually made for the original
owner remember we don't tell them
that they signed over the beneficiaries
that's none of their business
um so
you know
brother as long as you're making the
payments you know i like i said i can't
don't don't take you know don't don't
take this too hard because it could
happen anything could happen
but i mean we own a lot of these things
man and and uh
you know i've had two called on me the
only two that i've ever had calling me
were in llc's
and and we had them over five years so
i just you know i've had a lot of
experience i i just feel that if you're
going to go short term put them in llc's
much easier to sell if you're going to
go long-term put them into trust
hope that made sense guys
uh any other questions
wayne did answer your question
absolutely
absolutely thank you
yeah
who else has a question
i got a question uncle charles
uh this cecil perkins cecil what's up
man how you doing
good bro i'm good
um
i my situation right now is i'm trying
to get in a multi-family
i want a house hack
and i'm thinking about taking a lot of
equity out of my current household
um
just
to get in the property quicker
but
i'm thinking should i
instead of go the conventional route
maybe just look for a sub 2
and
hope i find something that way or do the
cash out refi
so look
i mean
money in hand is always going to be
better than money and money tied up
right
we all know this you know i mean uh
i mean one of the biggest players in the
business talks about this all the time
we all can anybody guess who that is
who said that all the time
uncle grant right
uncle g
okay cash is king man but here's the
thing man
brother you can pick up if you want to
target multifamily
because that's that's we do that here
if you want to test this out get a get
up get a uh temporary account with
reality
a what
get a temporary temporary account with
reality
okay means multi-family apartment
complexes you know
and pull up all
the complexes in in you know you want to
go your city or the whole state
anything from 10 to 80 units
skip trace that thing
uh if you don't have someone that can
skip trace llc's hit me up i got
somebody that can skip trace llc's
pretty good
and start hitting them up
we have
various uh uh three plexes four plexes
ten plexes
um a few 18 plexes you know you know 16
18 plexes all subject to man
all subject to all we did was find
individuals who are in a bad spot
people
just because people own multiplexes or
apartment complexes or commercial built
commercial doesn't mean they don't that
doesn't mean they don't have the same
problems as we do everybody has the same
problems
and you can find individuals who are
either behind taxes going through
divorces
going through uh dismissed bankruptcies
um
you can find these individuals who are
willing to give these properties like
for example we got a real nice one last
year it's making us really good money
man we i
just in the gate we had 75 000 equity
the guy uh his wife moved to arizona
the guy got hooked on drugs she wouldn't
take him back she wanted to do it with
uh with the complex and he just gave it
up man he just gave it up with tennis
and all we took it over subject to
and out the gate 75 g is inequity bro
that's that's probably one of our best
four players we've ever done so should
you pull money out i think you should
you should you should have cash in hand
but i think that uh you could do a lot
more
finding finding individuals that are
willing to uh give up properties for
your subject to now for example last you
don't have to always do subjective
you know for example uh and let me back
up you can only do subject two they have
a loan
um last last week we closed on a deal on
corpus christi is another four plex
and that lady didn't have a loan
she was free and clear
now her property is probably worth about
200 000
but i said aggie 225
25 000 is more than what you want
but this is what i need
i need 120 months to pay
okay i need 120 months to pay i
amateurized
at a high at a 180 months 15 year old
15-year old amateurization
that gave me enough money to pay her
down quickly
and i gave myself
10 years for the property to appreciate
what i did is i took an average uh
excluding the covered year of what that
property was appreciated now it's not in
the best area in corpus christi so it's
appreciating very little
but in 10 years
that thing will double in appreciation
and because i'm negotiating payment
i never negotiate rate i never talk
about rate
all my payments to her
are hitting the principal
or hitting the principal buddy so so i
already know that in 120 months this
thing's going to be
this thing
i would have made a huge dent in it
i would have cash flowed these 10 years
right
and in 10 years i already know either
i'm going to sell that thing to someone
else or i'm just going to do a refi on
it and pull out and pull up you know pay
the balloon off and uh and and uh and
cash cash for some money most likely
i'll have 40 50 equity in the deal
so you don't always have to put money
into a deal bro you know how much money
having that deal
zero
well
we had nothing in that deal i just gave
her what she wanted i gave her 25
dollars above what she asked for 25
above with the property's worth nobody
would do it
and what she wanted she just that
sounded a lot better to her but to me
the 25 g's
that's not i didn't care about that
because i got the term that i wanted
if i can get the term that i want
you can do almost any deal let's just
say she would have said
charles i need uh i need a uh i need an
interest rate
well first of all she would have said
that to me
i would have i would have been
dumbfounded i would have been um
i don't understand what do you mean
why i need an interest rate
i understand
i mean i'm not asking you for a loan
i mean you're going to give me money
because that's not what i'm giving you
what you want
and i'm asking you to do the deal this
deal together so you can get what you
want and get what i mean you see guys
that's how you get out of your paying
interest
how did i get it out of paying a down
payment
well this is what i say now does that
always work
okay see so if i
i get it man you want twenty thousand i
understand but i'm not gonna live in the
property i'm not i'm not asking for that
kind of helper i'm not gonna move i'm an
investor you're an investor pretty much
because you're you're trying to do an
investment type deal i'm trying to give
you what you want i'm giving you more
than what you want
but if i give you 20 right now you gotta
give me credit
and if we're doing this deal at 225
you're gonna do another 205. that means
you gave me credit and i can't do this
deal because i need that 20 to put into
this property
and this property where you're not
putting 20 i want to put money into your
property
so why don't you keep the 20 so we can
do a full note at 225 right so you're
not giving me credit for nothing and i'm
still going to put the 20 into your
property
you see
and most people are like huh that makes
sense
why because most people are greedy
they don't want to give me credit they
want to keep the whole thing so to
answer your question man
when i'm talking i'm always throwing
nuggets hopefully uh that stuff helps
you guys
but but uh she's to ask you a question
man yes i would pull some money out
um money in hands always is always gonna
be better than money locked up but uh
you don't you know the other day if you
find the deals if you find the right
deals friend uh the money that you're
gonna have enhancement and help you do
those deals a lot easier does that make
sense
yeah yeah it does it does um i guess um
i'm more thinking speed i'm i'm in san
antonio like you and i see the prices
going up rapidly and i want to get in
earlier better than later
as well i was thinking yeah do the
conventional but um i mean you could i
mean look man i i won't say his name but
the other day we had the association
meeting
a young man that uh that i haven't seen
in a long time he he came he came he
came and i did his first deal when i was
a lender
he got a four plex he moved into one of
them and he got up i got him alone and
then he rented out the other three now
he lives somewhere else and the thing's
fully rented out i mean you could do
stuff like that man but like like myself
you know we run a lot of paper through
here
and uh you know my credit scores if i
was going to get a loan they fluctuate
between
680 and 725 680 725 depending on when i
put up my credit
but my problem is this man
i i don't have the time like me i don't
have time to show a lender where all my
money is coming from
you know um i've done those i know how
long it takes so so i don't focus on
getting traditional loans uh if that's
what you're looking to do i don't i
don't have anything against it i think i
think you can get a traditional loan you
should go that route my focus is can i
find individuals that have issues
that are willing to uh do the deal that
i want if they're willing to do the deal
that i want and i can do or get close to
the deal they want then that's more
that's even better i don't have
we own almost 100 property so i don't
have one
loan in my name but one which is my uh
primary mortgage but i don't have one
loan of money
because they're all in trust
some of them are in llc's we have deals
in colleen in gatesville in in
el paso laredo corpus
um on houston you're going to find those
airworts especially because you're
already in the business
um
you're going to find deals maybe maybe
san antonio is not the place right now
we're from san antonio but most of our
deals are not done so most of our deals
are done in dallas fort worth houston
florida you know uh because you know
it's getting a little bit it's getting a
little tight here in san fran
right right
okay well yeah that makes sense and that
helps uncle charles appreciate that look
up look up rhianna me man
of me get get get up get a temp get up
get up get up
you can do um what they call those
temporary temporary um
um axes
and pull a lot of information actually
it's expensive i think it's like 3 000 a
month sometimes i get it for a year um
but but if anything man you guys got a
good community here get about four five
six you guys together man everybody
throw a nut at that thing now you got
access and then everybody gets access
you get access monday he gets access
tuesday wednesday thursday and now
everybody's pulling lists guess what you
shared the cost for that awesome program
grounding is awesome and
you know and we're pulling data for for
uh
for um
for apartment complexes we have we have
a pretty good understanding with them so
i can just call them and pay them a fee
and they'll give me access
but um but uh if you guys want to get
access to that i would put a few guys
together and do that man because it's
it's a really strong strong program and
for multi-family
but
you get all the data i'm trying to say
you get the owner's names the llc's it
gives you everything
anybody else's question
yeah if you have time i wanted to ask
well i'm kind of working the subject to
dale well i was working with me and my
partner but we just didn't really know
how to work it uh we i still talk to the
seller here and there
um is there a way that i could contact
you so where we could like talk more on
the deal
yeah so um
i uh i do uh i do do my best to help out
you know um people that need help with
with uh
with deals and keep in mind when i talk
i talk real fast and usually if i'm on
the phone with somebody it's really
really quick you know i'm like this you
know
so i don't have a problem the reason for
that because i run a big operation here
and we run on any given time there's
like 80 contracts going through
this office it doesn't mean we're
closing any contracts
um
a month but what we have in the pipeline
constantly an average of 80 you know 70
80 contracts so really really always
busy um i will ask you a question real
quick maybe we can we can uh help you
right here real quick what what is the
issue with property so the quick
questions is
what's the balance what's the
restatement what type of loan is it um
and what's the age of the home oh well
it's a seller finance so it's free and
clear
okay so that's not a subject
yeah it's not a subject to no no
subject to is when there's a there's a
wrong
mortgage
so seller financing so we're pretty
clear so let's talk about that what's
the rv on that property
uh the arv is
i would say
it's kind of hard to compete there
because most of the properties like it
has already been converted to
condominiums it's in ocean city new
jersey so it's like a real hot rental
market it's like three blocks from the
boardwalk it's a beach um
it's like roller coasters a lot of
amenities there so this is a property
can you convert this one also
yeah you can convert it
he was saying one of one of the buyers
wanted to convert it one of the buyers
that was interested in it um
it's eight units i say if you convert it
you could get
two maybe three condos out of it and
then the condos in the area are going
for
one to two million dollars
he wants 1.6 for the property well the
same unit so first of all let me ask you
a question though
are the units are the units uh are they
um
are they are they are they filled you
know
they have tenants
i actually went to the property uh
there's three of the units that are
vacant so that's five of them occupied
and he's having uh payment issues with
the property
um
i see now let me so let me ask you
another question are you
is he running these eight units like uh
like an apex or is he running them
individually
he's running it like a
apex yes
cool
so
you know comping out um a multi-unit
property is a little bit different than
comping out a uh
single single panel forward i'd be
interested in talking to you offline if
you if you're if you're interested um
yes i need a lot more data
from you everything um
it takes too much time just do it here
right
more data um so so my my um
my emails charles
at hbhs.com
hbhs
so you can send me an email send me your
number and i'll schedule time to uh just
go over it i'll do my best to help you
um
i know i don't do deals in new jersey
but but but i have a few friends of mine
that deal in that area um maybe i can
push push you that way and you can hook
up with somebody that can they can help
you but i'll definitely um
point you in the right direction on how
to come up with some numbers for that
okay cool and just just to confirm it
was charles hbhs.com right yeah hotel
bravo hotel sierra
that got it
got it perfect thank you so much
yeah guys when you're creating when
you're doing creative financing
a lot of people sometimes ask me why
they find this is you don't you have to
they you have to create them you have to
identify them so when my guys are in
here calling lists whether
they're calling sms responses or ppc
they're they're they're
they're looking for wholesale deals or
hotel deals
but at the same time they're identifying
possible subject to's
or possible creative finance deals
for me a credit finance deal is a deal
that you put together that nobody wants
to fund
or nobody wants to buy
and and what does that mean i'll give
example
let's say you have a deal where the
for the arv is 300 000 and the person
wants
270. who's going to pay for the selling
costs we're going to pay for the even
the property is in great condition we're
going to pay for the light rehab
so what do you do with that if the deal
is functional
and and it can make money now in other
words you can rent it out every bit or
whatever
then you can get you can create a deal
around that guys and make good money as
long as you get the term that you want
um that's that's a whole subject but
what i'm trying to tell you is
that you just don't find creative
finance deals you have to identify them
and then and then start putting them
together
any other questions anybody
i got one last question
so um
i'm knocking on pre-foreclosures right
now and
i i know it's a real sensitive situation
for them and they're overwhelmed they're
they're in a messed up mind state
what are you guys saying if you have
have ever said it um we're knocking on
the pre-foreclosures
when
auctions maybe two weeks away
so
that's a really good question man so
mike and i we used to knock on doors a
lot i haven't knocked on doors in
years man excuse my language
guys um
but we used to knock on doors all the
time you know and and uh
and that was like a weekly ritual three
to four times a week we'd be out there
and it's like this guys
you and i come from that foreclosure era
where everybody was getting foreclosed
and there was a lot of modifications
going on
i come from that
and nine times out of ten somebody was
here telling me i already took care of
it
or they were telling me
i'm doing a modification
so here we go i'm gonna give you the
skit ready i haven't used this kit in a
long time but here it is
hello my speak to uh cecil
you say hi hey see so my name is charles
hernandez i'm with home buy home selling
solutions i think about that what did i
just say
that's our company name
home buying home selling solutions
he already knows that i buy and i sell
and i provide solutions that's why i
named the company on binaural science
solutions
so let me do it again hi my name is
charles i'm with homebuyer on setting
solutions hey look cecil
i get it i don't wanna i don't wanna
bother your day here but i'm not sure if
you know this man but your property is
on some type of list
here at the courthouse and uh i come out
really and i just talked to homeowners
that find themselves behind on taxes or
whatnot and man i'm always trying to
fight with the lenders and the county
you know
i was trying to foreclose on people i'm
not sure you're in that situation but
the reason i came here to talk to is
because
i'm actually interested in properties in
the area and i like to come out to talk
with you before these lenders get so
aggressive with homeowners
so what i did there is i paid the bad
guys the bad guys just the county and
the lenders i really tell them that i
knew he was in foreclosure i kind of
just said hey look i just want to help
right
now most of the time they say i already
took care of that
and then i say
man that's great man that's awesome
did you did you talk to the resolutions
department at the bank the only reason
i'm asking buddy is because a lot of
times people tell me this man they still
get they still get drama with the lender
some people get foreclosed man did you
get did you get into a modification or
something
yeah i'm modifying that's awesome man
the lender for the lender issue or
letter of position to you
and then they say well what's that
yeah yeah well you
didn't give it to you well let me
explain you got a few minutes brother
let me explain something to you look
you have to know what's going on with
these lenders man they got csr they got
resolutions department they got the
service department they got the
foreclosure department and that that
foreclosure department
they've already they usually have
contracted an attorney outside of their
system and that train is moving
if you can't get the resolutions
department to get your letter precision
to stop
the foreclosure
man that train is still moving but and
i'm not sure of your foreclosure i'm
just saying the only reason somebody
will get into modifications probably
because they're having a little bit
trouble with the lender but i want to
help you if you want hey by the way have
you gotten the letter ring statement yet
well what's that
and then i explain the lettering
statement and then i say look i'll tell
you what man let me just let's sit down
man let's call it letter man let me let
me help people
and then and most of the time we sit
down with the homeowner i'm on the phone
with the lender and then i'm talking to
the lender i'm asking all the right
questions i'm asking where are we on
this loan how far behind is he is is a
foreclosure still moving as the
resolution department started
foreclosure and they're listening to
other stuff
i hadn't even talked about subject to
i hadn't even talked about buying the
property
what i'm talking about is how can i help
you man i'm letting them listen
to what's going on
now they said for example
i already followed modification oh
that's awesome man
hey did you get the letter precision yet
that's important you know what that is
right uh no
you see guys by by knowing
information
um and and being able to be i'm not i'm
not trying to overcome his objection
what i'm trying to do is give him
information that he doesn't have um that
will help him moving forward um moving
forward now sometimes you end up helping
the people and that's good
sometimes they get we get on the phone
the bank's like yeah we'll go ahead and
issue a letter of precision just stop
the stop the
stop the foreclosure and that's great
man and then sometimes what ends up
happening those same people get into the
same problem guess where they're gonna
call they're gonna call you
so
uh to answer your question that's pretty
much the skit that we used to use man
when uh when we're door knocking
especially on foreclosures that's that's
the skit that we use but
okay that's either one of those two
things i already took care of it or did
you get a modification
and then hey did you stop the
foreclosure because you realize
you know hey did you get the letter
brief statement or if they said i fought
for modification okay did you get the
letter resisting i was
so so you're basically giving them
information
hey you said letter of resumption r-e-s
yeah i always pronounce the word wrong
i'm gonna send me a send me a message
on on on messenger and i'm gonna get you
the name of the
correct the correct spelling of that of
that would you need to be asking the
resolution department
cool
i appreciate that
i will suggest to all you guys this
is i would suggest you get familiar with
modifying properties
um
i posted not too long ago that i
recently i recently uh modified a few
properties for some people
just to help them i didn't get the deal
but what what i wanted the reason i did
it and i put it out there on facebook i
said hey somebody needs help modifying
please hit me up what i wanted to see
was the different programs i wanted to
see what fha was doing i wanted to get
on the phone with uh with a lender who's
modifying the va loans i wanted to get a
loan on on the phone with lenders that
are modifying fha loans i wanted to see
what they were talking about what
they're doing because i already know
that when these foreclosures start
coming up i don't want to pay you know
eighteen thousand dollars for any
statements i wanna modify property so i
wanna modify these loans so that i can
drop the interest rates extend the terms
push push the ring statement to the back
and if i can get into that deal with
nothing out of my pocket
then most likely what i'm going to do is
not wrap those properties most likely i
will rent or everybody those properties
if they're in good areas why because
these guys if you wrap properties you
lose the appreciation but if you rent or
airbnb properties and you hold them for
10 years and you capture all the
appreciation so little things little
things i'm sure you guys know already
but i'm just throwing them at you get
familiar with learning how to modify
properties and the different
modification programs for fha va
fha va conventional and usda loan sets
anybody else
no
can ask me anything guys we do a lot of
deals there
hey i just wanted to say man that's fire
content man and you're just touching the
surface of it so i appreciate you man
and um
thank you man
i appreciate you guys hey guys um
with uh anthony it's permission and
stuff i ain't no way um ever trying to
sell
anybody in our stuff that we do but if
you guys are interested in anything that
we uh that we're talking about
we have this private group called
alliance
and alliance is where we do a lot of
these
we drop a lot of subjects a lot of stuff
and we drop a lot of knowledge in there
and if you guys are interested in that
you know you definitely
you definitely might want to uh join
that i'll give you a little taste right
now if you guys want let me show you
real quick
so i recently posted this an alliance
let me show you here
so
this right here i did a creative
breakdown as you can see here
goes on and on and on
it talks about
why
you would consider for some of the
people here
um it talks about why you would want to
do a um
a sub
two versus a wrap or why you put
credit finance two together what to look
for like for example like on this deal
uh i'll just break it down to you real
quick a lady asked on another creative
financing uh platform uh she was talking
about the owner had a uh wanted 275 with
and with a 1800 rent payment and so of
course that's not enough information so
what i put on here was like
man in my mind guys this is what goes
through my mind that's what i'm telling
my people here
this is what goes through my mind when
i'm talking when i'm looking at it now
all this happens quick guys
it's happening quick i'm and we're
moving quick like for example the first
thing i'm asking is if i'm going to ask
the owner is is there a loan i'm asked
i'm looking what's the rv what's
conditional property what is the
estimate of the rehab what is what is is
the home function or not can
we make money now it's all rentable can
we uh again can we make money now um
you know how long are we going to be
down if we can't we can't make money
what is the holy cost what are the
rental comp will the rents cover the
piti well i have an roi can i trade this
to airbnb and it goes on these are the
stuff that's going through my mind for
example
are there any big box stores around you
know why is that important it's
important because i want to wrap the
property in the future i want to make
sure that you know that's what families
are looking for they're looking for good
schools they're looking for no crime
they're looking for big box stores
around the area you know if for example
like right here the property in the
flood zone if i'm buying near corpus
christi do i need windstorm think
hurricanes if i'm buying and cali and
i'm gonna i'm gonna buy a property over
there
i think earthquakes what kind of shoes
do i need if i'm buying by the
mississippi thing floods if i'm buying a
hurricane alley paying tornadoes you got
to think about a lot of stuff guys early
leaves hoas are there any errors was
there a probate how many years do i got
to track down
so
this is the type of stuff that we
go over
with uh with individuals
um when they're getting into trying to
do a portfolio whether they're china
portfolio uh through credit financing
through traditional financing through
private financing or through
subject-to's and whatnot if you guys are
interested in that i invite you to check
us out
and that is uh alliance you can take a
screenshot if you guys want
and um that's what we do in there guys
any questions
everybody good
okay guys
here's the details of the private
facebook group please
what's up bro
share the details of the private
facebook group that you said allah
[Music]
what we do in there is we go in there
every single
every single week
and it is either me or mike myself or
mike and we spend an hour an hour and a
half we just drop
knowledge on particular subjects you
know when it comes to what we do
now we also have a lot of
a lot of information in there that
people can watch and download and watch
videos
and we also uh you know what's like what
you guys do here
but uh you know it's it's it's our group
and i'm here with the hive to share some
of the stuff that we do
if i can help you guys do deals then
great you know
we're trying to get
i got
what's the question hey you told me you
were really good at locating llc owners
yeah so if you kind of specialize in
that can you elaborate on that
and how
so
okay so i
there's many ways to do it
um
when i pull a list of llc's
i i usually i use somebody from from
from overseas that skip trace all this
stuff so they will get us all the data
now
i
i have access to lexisnexis and tlo
so me finding somebody is gonna be a lot
easier than someone else so yeah it's
it's i mean that's those tools are those
tools are very uh
those tools are i mean something that
means if you're fine trying to find
people you can't really uh
you know
it's going to be hard for someone to
compete when they're trying to use open
corpse or you know the sos entity or or
stuff like that you know when you when
you have access to those type of systems
you can pretty much find people pretty
quickly now i don't abuse those systems
a lot of people use those systems they
run a lot of data a lot of data and they
get they get they get discontinued
we only we only we we try to keep it at
a minimum man we run maybe combine on
both systems maybe 20 25
searches and we're real particular in
what we do so that's that's how we find
a lot of these
i mean you could use other software but
that's how we find
you know you know the credit bureaus use
lexisnexis to verify to verify uh their
information so just to give you an
example
you can pretty much find anything
got you
guys any other questions
no
okay
how often are we going uh uh do these
calls with you guys
um i'm sure i'll get with frankie i mean
um
i'll talk to frankie and he can get with
you and uh but you know when i do come
on just know that i'll do my best to
always drop
drop as much fire as i can
yeah man awesome we appreciate it man i
just want you to feel like you have to
cut short you know i know everybody's
super busy especially you but if you
ever have a little bit extra time then
just feel free
i i get it man the other day i went kind
of crazy on stuff but
yeah i got i gotta
get back to the
i gotta get back to the hustle hustle
zone here we call it the hustle zone we
have uh
we have a you've been here to my office
yeah beautiful yeah so we got we got
quite a few guys popping deals today so
i gotta get back in the trenches
boom you're always working man
i love what i do man so
um
okay guys you guys know guys i got no
questions alejandro what's up you guys
have got any questions
i'm going to call it one i'm going to
call it
everybody good
appreciate you charles thank you man
we appreciate you brother see you soon
thank you so much