All Forum Posts by: Jonathan Hernandez

Looking For Agent/Realtor who can provide good forclosure properties or who is willing to assist me in the process of properties I’m interested in getting through auctions. Please contact for more info. Must be knowledgeable of the LA area and surrounding cities. Trying to find a deal before the year ends. LETS GET IT DONE !!!

@Clifford Paul hey Cliff thanks for replying. I wasn’t planning on NOT showing my bank records. Definetly wasn’t trying to do anything illegal ( at least consciously). But i guess this answered my question on the legality of my idea. Oh well. Seemed legit when i thought about it. Thanks Clifford.

@Chris Seveney

@Jason D.

@Will Barnard

Idk why the app totally botched my message hopefully the last one is a little more understandable. Ive never had this happen. Had to repost it on my browser. 

Alright here’s what I was thinking I could of HAVE possibly done. With a hypothetical deal with hypothetical numbers. The key here is not necessarily the numbers more about the tactic and if it’s LEGAL and POSSIBLE To DO it like this or if any one has tried anything similar to this:

Property purchase price: 80,000

Estimated Rehab cost : 45,000

Property ARV: 175,000

Hard money Loan used for :

DOWN PAYMENT & FIXED COST.

Down Payment: 16,000

FIXED COST : 18,000

35,000 ( added an extra grand )

HML 35,000 @ 15% interest with 6 points

Total: 46,250

LOC used for REHAB : 45,000 @ 3 % interest.

Total 47,000

HML + LOC = 93,250

Remaining Balance On House : 64,000

HML + LOC + RBOH= 157,250

House sells for 175,000

SP - HML-LOC-RBOH = 17,750 profit - tax about 11,000 grand ... not really a big number but like I said it's all hypothetical. And it being a 1st flip it's actually more about the experience and getting a foot in the Door.

Ok so the way I saw it was the HML or PL isn't getting screwed since he has more than enough equity in the purchase price alone to regain his money if the deal went South. since I'm only using 35,000 grand for the down payment. Compared to A 90-100,000 loan to fund the down payment and the rehab. He/she has even more assurance with any dollar that's put into the property with the intention of RAISING ITS VALUE. On top of that he got 6 grand in the few minutes or let's say hour it took to get the loan processed. So "skin in the game" and equity protection for the HML seems to be checked on the list.

On the LOC. Well that one is self explanatory. Good credit. ARV OF 175,000 only need about 40,000 grand for the rehab.

So my question is am I the only one that's ever thought about using a HML or PL only for the down payment of A house? Second I'm the only one that's thought to rehab a house with a LOC? And pay both back once the property sells? Or back to my original question is this just not allowed to use both in the investing world ? If not what are my options for someone with no money and willing to get into rehabing. This is just a strategy that I came up with and I thought I could utilize creatively (if the numbers worked or course) with all this I hear that you could rehab a house with no Money and not get neck deep on just a high Interest HML.

@Will Barnard thank you for the insight Will but im actually planning on investing out of state. I forgot to mention that.

@Jason DiClemente Do you have to purchase a house in full before you can Rehab?

Alright here’s what I was thinking I could of HAVE possibly done. With a hypothetical deal with hypothetical numbers. The key here is not necessarily the numbers more about the tactic and if it’s LEGAL and POSSIBLE To DO it like this or if any one has tried anything similar to this: Property purchase price: 80,000 Estimated Rehab cost : 45,000 Property ARV: 175,000 Hard money Loan used for : DOWN PAYMENT & FIXED COST. Down Payment: 16,000 FIXED COST : 18,000 35,000 ( added an extra grand ) HML 35,000 @ 15% interest with 6 points Total: 46,250 LOC used for REHAB : 45,000 @ 3 % interest. Total 47,000 HML + LOC = 93,250 Remaining Balance On House : 64,000 HML + LOC + RBOH= 157,250 House sells for 175,000 SP - HML-LOC-RBOH = 17,750 profit - tax about 11,000 grand ... not really a big number but like I said it’s all hypothetical. And it being a 1st flip it’s actually more about the experience and getting a foot in the Door. Ok so the way I saw it was the HML or PL isn’t getting screwed since he has more than enough equity in the purchase price alone to regain his money if the deal went South. since I’m only using 35,000 grand for the down payment. Compared to A 90-100,000 loan to fund the down payment and the rehab. He/she has even more assurance with any dollar that’s put into the property with the intention of RAISING ITS VALUE. On top of that he got 6 grand in the few minutes or let’s say hour it took to get the loan processed. So “skin in the game” and equity protection for the HML seems to be checked on the list. On the LOC. Well that one is self explanatory. Good credit. ARV OF 175,000 only need about 40,000 grand for the rehab. So my question is am I the only one that’s ever thought about using a HML or PL only for the down payment of A house? Second I’m the only one that’s thought to rehab a house with a LOC? And pay both back once the property sells? Or back to my original question is this just not allowed to use both in the investing world ? If not what are my options for someone with no money and willing to get into rehabing. This is just a strategy that I came up with and I thought I could utilize creatively (if the numbers worked or course) with all this I hear that you could rehab a house with no Money and not get neck deep on just a high Interest HML. @Will Barnard thank you for the insight Will but im actually planning on investing out of state. I forgot to mention that. @Jason DiClemente Do you have to purchase a house in full before you can Rehab?

@Chris Seveney @Will Barnard @Jason DiClemente Alright here’s what I was thinking I could of HAVE possibly done. With a hypothetical deal with hypothetical numbers. The key here is not necessarily the numbers more about the tactic and if it’s LEGAL and POSSIBLE To DO it like this or if any one has tried anything similar to this: Property purchase price: 80,000 Estimated Rehab cost : 45,000 Property ARV: 175,000 Hard money Loan used for : DOWN PAYMENT & FIXED COST. Down Payment: 16,000 FIXED COST : 18,000 35,000 ( added an extra grand ) HML 35,000 @ 15% interest with 6 points Total: 46,250 LOC used for REHAB : 45,000 @ 3 % interest. Total 47,000 HML + LOC = 93,250 Remaining Balance On House : 64,000 @jasonDiClemente HML + LOC + RBOH= 157,250 House sells for 175,000 SP - HML-LOC-RBOH = 17,750 profit - tax about 11,000 grand ... not really a big number but like I said it’s all hypothetical. And it being a 1st flip it’s actually more about the experience and getting a foot in the Door. Ok so the way I saw it was the HML or PL isn’t getting screwed since he has more than enough equity in the purchase price alone to regain his money if the deal went South. since I’m only using 35,000 grand for the down payment. Compared to A 90-100,000 loan to fund the down payment and the rehab. He/she has even more assurance with any dollar that’s put into the property with the intention of RAISING ITS VALUE. On top of that he got 6 grand in the few minutes or let’s say hour it took to get the loan processed. So “skin in the game” and equity protection for the HML seems to be checked on the list. On the LOC. Well that one is self explanatory. Good credit. ARV OF 175,000 only need about 40,000 grand for the rehab. So my question is am I the only one that’s ever thought about using a HML or PL only for the down payment of A house? Second I’m the only one that’s thought to rehab a house with a LOC? And pay both back once the property sells? Or back to my original question is this just not allowed to use both in the investing world ? If not what are my options for someone with no money and willing to get into rehabing. This is just a strategy that I came up with and I thought I could utilize creatively (if the numbers worked or course) with all this I hear that you could rehab a house with no Money and not get neck deep on just a high Interest HML. @Will Barnard thank you for the insight Will but im actually planning on investing out of state. I forgot to mention that.

Hey Guys. Alright some Advice from those of you with knowledge in the field would be appreciated here. I have my mind set on getting my First Flip Done. Problem is like many of us here, No capital to fund it. So i was thinking, A) Get A HML just for the Down payment of the house and Use an LOC to fund the rehab? If thats not possible B) Get a private lender again just for the down payment and an LOC for the Rehab. why? well because id figure id have a smaller amount to pay high interest on for HML OR PRIVATE lender and because i feel an LOC for rehab seems better since i only use what i need and pay back what i used instead of taking out ONE HUGE loan and paying interest on that huge loan. im thinking i may only be able to do this using the “B” strategy if the HML interferes with getting an LOC. since id potentially have 2 loans on file. like i said this would be my 1st flip so some advice from those of you who would know if i can actually try this out would be appreciated. if not then what am i looking at for plan “C“ C) suck it up, Get it all under one loan and pay the high interest? if thats the case then ill do it. this just came to mind, thought it be intersting to try it out, Again if its within “THE RULES“ of the lending realm. Thanks in advance for any insight on this.

@Larry F. Hey Larry you’re right. I wasn’t considering the 1% rule at the time. I’m actually still looking at some deals in Kansas. I’ll post some deals I’ve been calculating latey to get some feedback on them soon. Thanks Larry for the Advice. As you can see I still have a lot learn 😅...🤔..🤓.

@David D'Errico Hey David Yeah I could see why you’d say that. I actually noticed the flaws in the report after I posted It. But I actually calculated this with a 3.5 FHA LOAN. But I forgot that you have to live in the property for the first few months to use an FHA. Being this is a single family, and I wasn’t planning on living it. that wouldnt work. This is actually the first SFR deal I’ve looked into. Everything ive been calculating has been out of state and in the 80-150 thousand and multi family. So out of force of habit I guess I’m still punching in those numbers 😂😅. and yes you’re right insurance would actually be around the 200 + range But all in all i agree this isn’t worth it I was just curious to see how it could be work. Im reminded why I started looking out of state on the first place. Thanks David 👍

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Ok just having some fun with a recent property for sale about two blocks from where i live

Inviting all experienced investors to take a look at this deal, and give me they’re opinion if its even worth it.

A little bit about myself. I’m 25 live at home and currently looking to jump into my first deal.

Debt free.

Been looking for out of state deals.

But recently there’s this house that I’ve been keeping my eyes on. its had a for sale sign. now for a few good while now ( over 6 months for sure ) And recently another real estate company took over and put an open house sign. So i walked in to take a look.

Overall its pretty nice most of the interior has been remodeled. New kitchen, new floors,roof, paint, etc. The only thing is that the interior of the garage is incomplete, needs dry wall and a ceiling. I’m not a contractor so idk how much it would cost to put it back to shape, i just threw a high number into the calculator just for a prospective idea. It’s a 3 bedroom 2 bathroom house. The area is actually a growing market I’ve lived here over 20 years and its come along way from when we first moved. And it seems its been taking off the past few years 5 years They just recently build a massive shopping plaza less than a mile away. Renovated the park thats about 3 blocks away, and a new shopping plaza is under construction about 4 blocks away is near 3 major freeways and the houses around are all typically rising to the 500,000 plus price range. And about 15 min from downtown.

The house is actually listed for 499,000 but its too overpriced for the house in my opinion, I feel that’s the reason why they’re having a hard time selling, and not because no ones looking. The sign in book was actually already pretty full, so to me that tells me many people are interested in the property, maybe if they don’t end up buying the house they might consider renting it. It’s what makes me feel the problem is the price OR that simply the area is turning into an upper middle class area too fast for the people to keep up. Our house (which is 2 blocks away) was worth around 380,000 in 2015. Now its around the 498,000-500,000 range ( its a 3 bedroom 2 bathroom house as well.). I’m only going based on the home value estimator on realtor. But it seems pretty accurate considering the recent renovations the city’s has done and with the new ones on the way i feel the houses in the area are only going to continue to rise. BUT this also makes me consider this “bubble” everyone keeps mentioning, i guess no one can really say for sure when that day will come when it finally start going down. But i hear a lot of expectancy of it dropping in 2 years and then i hear a lot thats its only going to get higher for the next 5 years. So there’s that too. I mean if it’s already hard to get someone to but it now. Maybe it’ll be even harder then.?

So in nutshell this is a pretty hefty turnkey investment considering I’m just about to get started. In order to get into this property i will most likely have to co sign with a family member since my credit is around 698 and i only make around 42,000 after taxes. And it doesn’t offer much in cash flow and actually I’m almost positive I’d be paying out of pocket every month. High balling it maybe around 300 a month. So why am i considering it? The equity, the convenience that its super close to me, the experience, and my confidence that this area seems to have a good outlook in its potential growth and if I’m being honest a 300 dollar payment for a potentially 500,000 house doesn’t seem bad at all. Considering I’m living at home for free. So that’s where my heads at more or less. Just curious to see how some of you would handle this property if you had the opportunity and in my situation. Considering this is in LA county. Where almost anything decent is in the 600-700,000 ^ price range.

Cons

-high purchase price

-garage needs repairs

-most likley no positive cash flow 1st year

Pros

- House newly remodeled interior ( new kitchen, bathrooms, floors, roof, windows )

-two blocks away from me ( convinient distance )

-potential equity seems promising.

- no rent control