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

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

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

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

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

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 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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

okay so i

there's many ways to do it

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 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

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

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

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