Build a Real Estate Empire without Bank Loans
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- Опубликовано: 3 июн 2019
- In episode 20 Fernando Hernandez detailed how he went from having nothing to owning 200 housing units and 24 land lots in Paterson, NJ. He’s currently on DJ Envy and @flipping_nj national real estate tour and his portfolio is valued at $25 million.
Fernando started with no money, no connections and no knowledge, and in less than 7 years he’s been able to amass a real estate empire.
He broke down his untraditional way of real estate investing, he explained his investment strategy (which is very similar to Monopoly, but he’s playing with real cash) and gave the details of his playbook to us for free. #realestate #realestateinvesting
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![Calculating Numbers on a Rental Property [Using The Four Square Method!]](/img/1.gif)
HELOAN, HELOCs and cash-out refis should ONLY be used as leverage for investing in rental real estate. If you have sufficient equity in your primary residence and you’ve done your due diligence and the numbers work out on a great deal, a HELOC is preferable as you can pay it off when your ARV (After Rehab Value) on the new acquisition is enough to refinance the total debt. Service that debt from the rental revenue and enjoy the residual net cash flow. Then use it again on future acquisitions. This is what I’m doing.
The only way I was able to scale through all of this without stress was by working with a financial adviser. My adviser *ROCHELLE DUNGCA-SCHREIBER* has always had my back all through the process of property investment and investing in general. You can glance her name up on the internet and verify her yourself. she has years of financial market experience.
Cash = buy..Assets..=..Cash Flow..cycle Rich Dad, Poor Dad strategies.. Good knowledge. Nice to see somebody executing..
This is by far one of the best podcasts!! You guys ask the right questions that really help people trying to get into the real-estate game, and help to demistify the process. This guy says he makes at least $1500 profit in rent for each property tho?!?!?! That is craaazy!! He must be getting deals for the low, low, looooow.
1500 a month or a year?
@@six6goddess214 I believe it's $1,500 a month based on the following: He explained if the mortgage is $2,000, he needs to collect $3,500 on rent. Set $500 a side for expenses and the remaining $1k is his profit.
32:17 Hard money Asset based lenders
What company did he say he used?
What i learned from this is that i might wanna be a hard money investor down the line 👍
Love the show! Just wish audio was better or had sound guy though. Have to replay a few times to follow conversations
It’s free
Just watching this episode. Phenomenal content. EYL please bring Fernando back for an episode in 2022.
My man with the beard. You ask the right questions. Especially that one of how you make a the team
This episode was big, lots of knowledge shared, I appreciate you guys on sharing the jewels 💯💯
Joo
This was a great podcast, this and the one with Flipping NJ is my favorite. Great program. Y'all should be #1 if aren't already.
Wow I just found you guys and I’m so glad I did , wish it would of been sooner . Great informative video , will watch all the rest haha
A lot of valuable information. A must watch!
Thank you so much for sharing this video! My mind was blown away in the first 33 minutes of the video. Had to stop; rewatch, and take notes.
Maddie Lu me too! Pause and take notes.
Money in the bank acting lazy gotta put it to work.💪
BRRRR Buy, Rehab , rent , refinance, repeat. #DebtFreeTy
Should you refinance b4 you rent? And how do you get the $ for the Repeat?
Joel D you do what’s called a cash out refinance. It allows you to pull out the money you put into acquisition, holding costs, and renovations. The tenets pay down the new mortgage, and you have all that original capital to go do another deal.
Appreciate these brothers inspiring us
Awesome show, thank you 🙏🏽🖤
Had to say it again.. AMAZING!
Thank you much needed 🙌🏾
Can you talk about capital gains tax and ways to minimize the costs maybe 1031 exchange?
Thank you so much. The best Podcast on the face of the Earth...Wealth Builder myself
GREAT ONE!! THANKS GENTLEMEN!! CHINGON FERNANDO!!
This channel is unbelievable...
GREAT episode.
I absolutely love earn your leisure. Thank you thank you!
Best one I've seen n I've seen a ton
THANK YOU SO MUCH!!!!
question: when you refinance, you pay additional fees and closing cost. how do you offset that? also, are you still managing the tenants? you will still need cash reserves if tenants dont pay on those refinance properties. How do you mitigate that risk?
👆🏾 that’s a fake account lol
You guys should be putting the people you interview down below so we can find them easily. I watch your show almost everyday but I can never find the people you interview. They say the names quickly and some times are spelt differently. Keep a link of their website or Instagram pages please!!!
New sub, appreciate the content
How does he manage all the propertys? Does he use a property management company? How and when does a LLC come in to play?
Thank you for sharing
Another dope episode
Awesome show, the Audio made it hard to follow due to the echo, but beyond that it’s grea.
Great info!
Turning my NO'S into YES'S all 2020🥳
Tanaya Talks put me on the team
Good one 🎯💡💯
2022 is my year . Thanks
Facts.. we tend to be racist ourselves and if that's the case all you see out there is racism.
Good show !!!
thanks for the video kings.
Nice info...
Love it!!
Fernando talks about giving back priceless!!!!
This joint a go!
This is a great interview I’m surprise he didn’t start out wholesaling property but 25 million a few years later isn’t bad... congrats
"isn't bad" man your standards are WAAAAAAYY higher than mine lol.
Bro. Tolliver people like to downplay unfortunately
Wholesaling is a thankless job big dog !
Awesome episode. Fernando you were great & hopefully you return on updates of the new construction.
thanks for listening
Appraisal is an art not a science appreciation
Slum lord is a term of endearment now hahaha
Rewatching from the beginning
Let's talk about payments on the hard money. Is the reason he took the entire LTV upfront, to cover those monthly payments or did he have a lender that did not require this and how do you pay the contractors are they willing to start work without upfront payments? So much info missing.
Arnita real estate investor in Minnesota to answer your question.. some Hard money lenders HML generally debit monthly or bi monthly interest only payments from your LLC account so yes he could have taken all the ltv upfront to cushion or offset his payments on interest and once he obtains the terms and paperwork on a hard money loan he purchases the property with the $100,000 and gets the direct deposit for the $50,000 rehab money usually prior to or day of closing ! so he starts with the sub contractors immediately with small upfront payments "draws" because you never pay a CON tractor up front or even 50% if you provide material I never pay contractors more then 25% upfront "1st draw" then 30-40 % after rough in inspections "With no conditions" I learned the hardway some contractors will get 25% do min work get a rough in inspection but it has tons of conditions from the city inspector ! then the rest at completion generally upon project completion and leasing you will "park" refinance with long term debt ie asset loan that adjusts every 5 years or a 30 year fixed and that cash out pays the principal of the hard money loan off.
@@tylerdiedrich1947 Hey Tyler, just curious since you seem knowledgeable about this, when you "park"/ refinance is it typically with the same lender you dealt with initially ?
@@nettaround8956 great question very rarely generally with a mortgage broker for a 30 year fixed conforming loan or a commercial loan from a small bank credit union
Can you guys profile a female real-estate investor? It seems like it is so much harder for women to navigate the business where people do not take advantage of them. Especially when dealing with renting to tenants, saftey is a concern for me.
If they know what they're doing, they can make it faster than any guy ever could
@@TheAnduwan18 well teach me something!!
It’s much easier for women
The majority of property management and leasing people are women though. Ive only dealt with a man once over the past 18 years ive been dealing with apartments. even as a kid.
There was a sister on Greener pockets recently youtube, Erickas classy climb youtube/ and instagram, charm city buyers husband and wife team instagram, annettes worth instagram, teri ijemoma stock trader and real estate instagram and youtube
I dont mean this as a criticism but you have these really high end microphones but it seems like you arent using them. What's the story with that?
Dope im @ the website"
could you list the banks he mentioned.
The podcast is great. But you guys forgot to ask how he moved to the multiunit building that put him into the 200 units. You guys jumped into the single families and lots.
Jersey City🙌🙌
7:33 can anyone elaborate on the option 2 of cash out refinancing the crib.
Good podcast just was really hard to hear the guy
Work on the audio. What's the point of mics if they aren't used right or working?
Can you guys do a podcast on wholesaling and where you can get the contracts?
Check out max maxwell on RUclips and joint wholesaling houses elite on fb. It’s a networking group. All the contracts are there.
🔥🔥✊🏿
Gold
34:56 is the biggest jewel drop for me, because no one ever talks about, after you get the hard money loan, like the usually want you out by 1 year… who is the end buyer in a hard money flip for multifamily?
$25M is impressive... divided by 200 properties is $125K/per... But - No $125K properties worth owning in Florida...
💯💯💯
Great interview, audio horrible.
27:35
🙌🏿
🔥🔥🔥
I love the info, but the echo is unbearable.
🙌🏾🙌🏾🙌🏾
SHOUTOUT TO EYL.
Lets goooooooo!!
All about getting the red building 🔥
👍🏾👍🏾💯💯💯💯💯💯
DJ envy. Cesar pina.
I thought this involved no bank loans. First thing mentioned was hard money lenders. Lol.
Did he say Visio lending or Bizo lending?
Jeremy Phillips Visio Lending
Did I miss something??? "Build a Real Estate Empire without Bank Loans".....HOW?
when you use an hard money lender you don't deal with banks
Also owner financing or lease purchases
Also by wholesaling, then start flipping houses when you have enough to purchase and renovate and sell then repeat or keep going by renting out the property’s that you do renovate
Grandparent mode
MONOPOLY MONEY!!!!
This guy is throwing so many numbers around it’s hard to follow.
Play monopoly with real cash
I think he meant bigoted not racist
My.... GUY! shout out to you man time and time again. This is EXACTLY WHAT MY BUSINESS specializes in. Any type funding or financing you need, whether for your business or a property. Contact me asap. #JDBKFUNDING
EVERYTHING BYJOHN do you do business only in your state or anywhere In the country?
Wait does he own 600 or 200 units? Does he own them or the lenders?
Depends on if some or none are paid off. Bottom line is he owns them and it is a win win if the lender is on all his properties cause theyre making the interest rate on their money and he's making cashflow.
Lenders DONT want your assets. They want your money. Stop this thinking of "the banks owns that". They dont. You do. The bank cant walk into your house and put you out. They own your future earnings because YOU promised it to them with a mortgage. The house is collateral. So is a car. It is collateral. The bank does not own it. They own the loan which is backed by the car if it is not paid.
@@elreytriton Got it!So women own the marriage to take you to court if you "default" on the loan ahem marriage.You got the marriage contract from the court I mean the bank.
@@angeleye8953 Im sure you come from a long line of baby momas and sidechicks. No one who comes from a real community says this dumb stuff. People become 1 under marriage. Financially, religiously, spiritually, socially, legally, and physically(as a unit). There is no one owner. They ARE the marriage. Marriage means union, amalgamation. It's more than just a paper from the court house and a ring. This is the problem now. Yall dont know sh*t yet continue to run your big fat low IQ mouths. Stop spreading your toxic poison just because you failed at doing the one natural job you had
Y’all niggas really too thurl! Keep going
Net worth rich, cash flow poor?
Anyone knows Fernando Instagram??
@lordoftheslums
Good information,but hard to follow because he’s talking too fast and he’s mumbling.
What is his Instagram???
I got a piece of land for Fernando. Can someone get me his email?
What's this guy Instagram
Its very difficult to hear the guy :-/. How was he able to get the loans after he lost his job in 2007? Don't lenders want some type of proof of income?
Bri Marie a hard money lender. they don’t look at income or credit. they give you money in exchange for them having a claim on the house. so if you run off with the money, they take the house and own it themselves.
they’re good but they charge more. all you need is a good deal to show to them and they’ll give you money.
He became a real estate agent after he lost his job and realtor he was working with did not find the property he was looking for. He didnt get his first property until 2011.
He talks so fast, I can't take it in while I'm grading papers. 😤😡😠
Jullien Gordon is King of the 4-3-2-1
You're a copy cat with no real history.
Mr Multifamily is #1.
10:00 Wait a minute, he's not black. Shut up about racism. Who are you to tell a black man what his experience of racism is? Shut up. You don't know 1% about the black experience. That's like a man telling a woman how childbirth feels. That's like a man telling a woman how her period feels like. You're not qualified to lecture to blacks about racism. So inappropriate. That's like George Zimmerman trying to lecture blacks on racism.