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Show Summary
In this conversation, José Brador Jr. discusses various aspects of real estate financing, focusing on traditional lending, strategies for first-time investors, and the importance of building a tailored investment strategy. He emphasizes the significance of house hacking, down payment assistance programs, and the use of HELOCs for funding real estate investments. The discussion also touches on the value-add strategies and the importance of networking within the real estate community.
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Investor Fuel Show Transcript:
José Brador Jr. (00:00)
I really don’t sell loans. My main thing is to try to figure out where this person, this investor wants to be five years from now and then kind of build a strategy around that and then decide whether buying a multi is the best investment right now or maybe buying a single family is the best investment right now. But ultimately, my goal is to see where this person wants to be five years down the road and then build from there because at the end of the day, it’s your journey.Dylan Silver (01:58)
Hey folks, welcome back to the show. Today’s guest, Jose Brador Jr. is a mortgage originator and strategic partner to real estate investors. He specializes in structuring financing for complex and non-W2 scenarios for deals move forward without slowing down operations or cashflow. You can find him on LinkedIn. Jose, thanks for taking the time today.José Brador Jr. (01:58)
Hey folks, welcome back to the show. Today’s guest Jose Bradard Jr. is a mortgage originator and strategic partner. He specializes in structuring financing for complex and non-W2 scenarios. The deals move forward without slowing down operations or cash flow. You can find him on LinkedIn. Jose, thanks for taking the timeNo, thank you for having me,
Dylan Silver (02:19)
oftentimes people will look at a number of different sources, especially hard money or cash. But I think not often enough do we talk about where traditional financing comes in. And I think in most cases, this is probably the bulk of where real estate investors are getting their capital from in the single family space.José Brador Jr. (02:19)
Oftentimes people will look at a number of different sources, especially hard money or cash. But I think not often enough do we talk about where traditional financing comes in. And I think in most cases, it’s probably the bulk of where real estate investors are getting their capital from in the single family space.Yes, that is absolutely correct. So of course, nothing wrong with the other ways of going about getting funds to invest.
Traditional, you know lending like which is you know what I specialize in ⁓ it’s it’s definitely The vast majority of people, know are going that route even those that are looking to invest so whether it’s their primary residence or you know, someone’s maybe buying a secondary residence or You know something to Airbnb or whatever the case may be ⁓ There’s so many options just going to traditional route that will require, you know, you know, I guess
lower rates, right? Or perhaps even just less out of pocket, you know, expenses.
Dylan Silver (03:21)
You know, one of the things that people oftendon’t talk enough about specifically is how they’re able to get into that first investment property. And I think what’s common right now is you’re seeing a lot of people do house hacking, right? And so whether that’s a single family or a duplex or up to a quadplex, I’ve seen that if you have, you know, additional doors that that can potentially benefit your chances of being able to qualify. For instance, if someone’s got
José Brador Jr. (03:25)
Typically is how they’re able to get into that that first? Investment property and I think what’s common right now is you’re seeing a lot of people do house hacking right and so whether that’s a Single family or a duplex or up to a quad I’ve seen that if you have you know additional doors that that can potentially benefit your chances of being able to qualify for instance if someone’s gotDylan Silver (03:51)
that those three additional doors will will be income for them. Is that generally true across the board?José Brador Jr. (03:51)
that those three additional doors will be income for them. Is that generally true across theboard? Absolutely. mean, and I think it’s actually, it’s a very wise way to start investing for the average person where instead of, I try to tell people all the time, your first home is very likely, especially like for first time home buyers, ⁓ it’s not most likely it’s not gonna be your forever home. And it’s just so much easier to
You know, start off with buying like a multifamily and then from that, from then, you know, strategize how we can maybe go for a two-family and then eventually to a single family and then kind of go from there. But it’s all about strategy. Ultimately, the mortgage itself is, you know, it is what it is, but it’s actually about strategy when it comes to, you know, to investing. But you are right. Like house hacking has become, you know, pretty prevalent.
Dylan Silver (04:47)
you’re working with investors, I’m imagining you’re seeing a variety of different scenarios. Do you work a lot with, you know, folks who are first time investors or folks who may be newer to home ownership in general? Or are you working a lot more with maybe more seasoned folks who are coming to you for specific niches?José Brador Jr. (05:02)
So II don’t discriminate right but definitely I work primarily with first-time home buyers and in that offer some investors and It’s actually you know what I prefer to be completely honest just because
Those folks are are because they’re green. You’re right. I was you know, was the first time home buyer investor not that long ago myself and so it there they’re a lot more moldable and They tend to pay attention a little more because sometimes already been has been doing this for a while you know Experience can be improvised right? So I will get I will give them that but sometimes it’s difficult to kind of you know
make them lean a certain world direction for them to listen to a strategy because they think they’ve done it already so much that they think they know it all. Or they’ve had a bad experience and now they really don’t want to take what they perceive as a risk. so that first time home buyer, first time investor, that’s my niche and that’s actually who I like to work with primarily.
Dylan Silver (06:41)
RAIN.Now, when folks are coming to you, what type of questions do they have specifically? Or are they really looking for general guidance as far as how to get started with an investment?
José Brador Jr. (06:58)
type of questions do they have specific?with an investment
The first thing that I always had that I usually get I get asked, you know, where where rates today? Right with with everything, you know after COVID You know that little you know, I guess time period when which rates were just historically low Everybody wants to talk about talk about rates and then the other the other question that I get asked is from a down payment standpoint, right? How can you know how much?
that I think what I need if I do this or if I do that or sometimes, you know people are having You know lifeless life right and sometimes they have a little bit of a harder time, you know putting money away to save up toward a down payment and you know Finding strategies, you know, whether it’s through local organizations that help with down payment assistance or anything like that but those two things are probably the most like Almost 100 % of the time I’m gonna get asked about rates and about down payment
Dylan Silver (08:00)
Now, I know when it comes to down payment specifically, I’m a realtor licensed in Texas, know, there’s now so many ways where people can get down payment assistance, but also too, you do seem to have to have some local, you know, regional knowledge based on your market in order to know what’s available for people. And so when folks are looking for down payment assistance or trying to see what’s available, is a lot of that based on,José Brador Jr. (08:01)
it comes down in the specificnow so many ways where people can get down payment assistance but also too you do seem to have to have some local, know, regional knowledge based on your market in order to know what’s available for people and so when folks are looking for down payment assistance or trying to see what’s available is a lot of that based
on, know, what they have the bandwidth to do and the legwork that they can do or can working with, you know,
Dylan Silver (08:29)
what they have the bandwidth to do and the legwork that they can do or can working withthe right ⁓ lender and mortgage professional really facilitate that for them in some cases.
José Brador Jr. (08:43)
So I’ve been very fortunate that ⁓ you know the the the realtor partners that I work with are Really just go above and beyond for you know for their buyer And so I like to make things easier as easy as they possibly can for the investor and so yesYou know, it would be nice to have some local knowledge of what programs are available like in Massachusetts We have like a statewide, you know a couple different statewide ⁓ Down payment assistance organizations that are pretty common, know, very pretty well-known now there are things like, know per city per county ⁓ that also have their own down payment assistance programs and that’s when they’re not nearly as common and so that’s when you know working with a you know,
with great real estate professionals such as myself and another, and the realtor, we want to, we don’t mind kind of grabbing the customer by the hand, that buyer by the hand and leading them into the direction that they need to go to in order to get additional down payment assistance should it be needed.
Dylan Silver (09:46)
Now, when folks are looking at making that first investment and they’re trying to determine what area, how many doors should I have? Am I going to be doing an Airbnb here, something short term? Am going to be on a year to year lease? Or am I going to be doing midterm corporate housing? I think a lot of times people go towards what they’ve seen other people doing. I know you’re in New England. Are you seeing any strategies up there for mom and pop investors?José Brador Jr. (09:48)
at making that first investment and they’re trying to determine what area.Airbnb here for something short term, am going to be on a year to year lease, or am going be doing midterm,
I Mean I would say so nice
Dylan Silver (10:13)
that maybe are more common now than they were previously.José Brador Jr. (10:52)
yeah, I would say so primarily like I said that mom and pop and you know Investor it’s it’s a little bit easier to ⁓ Get them going should you know should they really be like motivated to do so? ⁓because again, for the most part, they’re gonna be either a first time investor or home buyer, or they’re in a position where maybe they bought a property a couple of years ago and now have a little bit of equity or things like that. ⁓ But from a strategy standpoint, I think for the most part, I think nobody has really reinvented ⁓ the wheel. Yeah, you know what mean? I think it’s incumbent on us as professionals. I don’t know, it sounds kinda cliche, but like…
Dylan Silver (11:27)
wheel. Yeah.José Brador Jr. (11:35)
I really don’t sell loans. My main thing is to try to figure out where this person, this investor wants to be five years from now and then kind of build a strategy around that and then decide whether buying a multi is the best investment right now or maybe buying a single family is the best investment right now. But ultimately, my goal is to see where this person wants to be five years down the road and then build from there because at the end of the day, it’s your journey.They’re the ones that are
putting their money and their time and effort into ⁓ buying a home, investing, whatever the case may be.
Dylan Silver (12:09)
You know, one of the things that’s interesting about investing in the single family space is that there’s no pressure on you to sell if you’re doing this purely with your own investment capital. And this is something that is potentially a long term hold. You could hold this indefinitely or you could potentially try to not time the market, but sell when your property has appreciated substantially. When folks are working with investor partners or if they’re looking at larger deals,José Brador Jr. (12:11)
about investing in the single family space is that there’s no pressure on you to sell.this is something that is potentially a long-term hold. You could hold this indefinitely longer. You could potentially try to not time the market, but sell when your property has appreciated. When folks are working with investor partners or if they’re looking at large deals,
Dylan Silver (12:39)
Typically there’s some type of exit timeframe. And so it is nice to be able to start out and say, look, I may hold this for 10, 20 years, or I may do some value add,José Brador Jr. (12:39)
typically there’s some type of exit time frame. And so it is nice to be able to start out and say, look, I may hold this for 10, 20 years, or I may do some ⁓ value add.Dylan Silver (12:51)
or it may be a rental grade property as is, and I may just hold this for five years and wait for it to appreciate it.José Brador Jr. (12:52)
or maybe you renovate properly as is and I may just hold this for five years and make sure it’s appreciated.Absolutely. that’s why again, it’s important to not, mean, everybody wants to do volume, right? Cause we’re obviously here to make a living, but that’s a byproduct of earning people’s trust and being the person that people can go to like, like, you know, Dylan knows his stuff, you know, or Jose knows his stuff, you know? So.
But you’re right it’s Depending on what? The circumstances are around money and exit strategy, whatever the case may be It’s about building a strategy that kind of tailor so that but again you as a professional I have to have that conversation First before we can even worry about getting to the closing table
Dylan Silver (13:41)
Now, one thing that I haven’tactually talked with someone in the traditional mortgage ⁓ space is, when folks are doing some type of value add, force appreciation to a ⁓ single family home, and they’re going the traditional route, how are they able to potentially secure funds for the rehab itself? Does that have to be cash that they’ve saved up out of their own accounts, or can they potentially
José Brador Jr. (13:44)
⁓ when folks are doing some type of valueto a single family home and they’re going the traditional route. How are they able to potentially secure funds for the rehab itself? Does that have to be cash that they’ve saved up out of their own accounts or can they potentially
get some type of a rehab loan? Is that a thing that Yeah, so rehab loans are definitely, they definitely do exist. And I’m a big, sorry.
Dylan Silver (14:11)
get some type of a rehab loan traditionally, is that a thing that exists?José Brador Jr. (14:21)
You know, I’m a big proponent of you know using someone else’s money instead of your instead of your own to especially when it comes to investing right because Like as great of an investment as it can be right? There’s always a good this always a little risk associated and If you do that, you know, if you build the right strategy Whether that’s through, know again different tax Strategies and things like that But definitely have loans are the way to go should you want to like do a value add?to your property that can potentially not only increase the value but of course put money back in your pocket. ⁓
Dylan Silver (14:52)
Now, I think not enough gets said about that because most of the timewhen people are talking about doing some type of rehab to the property, hear people talk about cash, you hear people talk about hard money, construction loans outside of the traditional space. But of course, they do have access to, as you mentioned, the traditional mortgage sector. If we can get a little bit granular here, maybe give away some of the gold for our audience. What does that process look like? And is it maybe more tedious in some regards?
José Brador Jr. (15:04)
and and ⁓Dylan Silver (15:21)
thannon-rehab loans, what does that process look like in general?
José Brador Jr. (16:07)
I mean like with anything else for example one of the most common ways in which people use like Money to do to invest in a property whatever the most the two most common ones are gonna be like a HELOC or or just just like a cash out refi where they can use it to do whatever they want but and Honestly, that process is just like it’s actually simpler than then purchasing ⁓ Because you already have the asset the asset it’s already thereSo just more about you making sure that there we’re gonna do there’s gonna be enough equity What’s the what’s the appraised value gonna be like after you know? You’ve done whatever you need to do to your property But that process itself if you already own the asset you want in this case the property in my in my professional opinion It’s simpler than the actual purchase of a property
Dylan Silver (16:58)
Now, whenpeople are going through the process of doing a HELOC, right, they could use that capital for anything, to my understanding. It doesn’t have to go into real estate. Now, when they are using it in real estate, are there any additional advantages or strategies that they should be looking at when they’re using a HELOC to invest in real estate?
José Brador Jr. (17:03)
they could use that capital for anything to into real estate. Now when they are using it in real estate, are there any additional advantages or strategies that they should be looking at when they’re using a HELOC?So the only thing that I, and I always advise people, especially when they’re doing ⁓ a home echo line of credit, again, it’s about where they want to be in five years or in some cases, 10 years, which is the draw period in some instances. And to never lose that vision. Money’s money, right? So if you have a $200,000 line of credit, that’s what you have. But keep in mind that, with a HELOC, for example, at some point that money is going to be
You know, you have to pay that back, right? So that’s where a lot of folks don’t ⁓ kind of lose sight of that because as they’re using the money during you know, they’re during the withdrawal period They’re only making like interest payments, right? But the thing they’re making payment toward the actual ⁓ HELOC and that’s not always necessarily the case So that’s why to me again. Yes volume is important, you know selling you know, but I’m not here to sell loans I’m literally here to make sure that if a HELOC is the best route
Then we’ll know, but if refi is gonna be the better route that you know, I’m talking people talk a lot about rates and things like that So people especially now if they bought, know, I don’t know during the pandemic whatever they may be a little hesitant to refinance because they want to hold on to that low rate But if it’s going to make business sense if there is a financial benefit for you to do so that we can have the conversation as well But the process itself is My opinion simpler than them purchasing a home
Dylan Silver (18:35)
Right.We are actually coming up on time here, Jose. Any new projects that you’re working on and then as well, what’s the best way for folks to reach out to you?
José Brador Jr. (18:52)
Thank you.So the best way to reach out to me I’m I do a lot of social media Especially they’re gonna on Instagram and my handle is @BuywithBrador And again, I you can DM me, you know, whatever just comment on any of my post and I usually personally, you know I’ll reply back. I gotta get better with some of these like ⁓ programs that it kind of automates away that stuff, but
I’m working on it. But long story short, I usually take the time to reply back personally. And then as far as projects, in my space, ⁓ I’m actually trying to ⁓ build a little bit of a network ⁓ in the local area of young professionals. Well, I’m not young, right? But just professionals ⁓ in general, where ⁓
We can actually spitball ideas amongst each other. Because again, the investment space, yeah, there are rules, are regulations and guidelines, things like that. But you’d be surprised what people see out there, properties that I may miss or somebody else may miss or just investment opportunities in general that we’re not necessarily akin to and somebody else is. And so that’s like my next project, trying to build that network. Almost like a, I hate to say it, but
almost like a B&I-ish ⁓ type of thing, but just more family-oriented, yeah.
Dylan Silver (20:23)
Coming along.Well, Jose, thank you so,
so much for coming on the show. Thanks for taking the time today.
José Brador Jr. (20:31)
Not Dylan, thank you for having me, really appreciate it.
