Epic Real Estate Investing - From Fear to Triumph: Hilda's First Deal Success | 1427

Episode Date: February 16, 2025

In this episode of the Epic Real Estate Investing Podcast, host Matt Theriault welcomes Hilda Jaimes, who shares her inspiring journey to closing her first real estate deal. Hilda discusses her initial fears and hesitations, the lack of support from her family, and how a mindset shift changed everything. She recounts the challenges she faced, including negotiating significant price reductions and managing home renovations. Hilda's candid stories reveal the importance of persistence, surrounding oneself with supportive people, and taking decisive action to achieve financial freedom—even when the odds seem stacked against you. Tune in for invaluable lessons and actionable advice for aspiring real estate investors. Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. All right, please help me welcome to the show. Ms. Hilda, welcome to the epic real estate investing podcast. Thank you, Matt. Thank you for the invite. You beg. Glad you're here and it's cause for a celebration. You just got your first deal done and we certainly want to talk all about that.

But can you take us back to where before we started working together and what made you first consider real estate investing and what were some of the concerns or hesitations that were holding you back? Well, what made me come back because you know. that I first joined your community in 2021. Right. Then I dive in to the course. You know, I watch all the modules or the videos, but I never took action.

I was with a lot of fear. But I knew that I really want to get financial independence. And then I said, wait, I enrolled to this course and I'm not doing anything. And I really wanted to achieve financial freedom. And I knew that this was the right path with real estate. So that's when I came back. Right. And that's a pretty common story.

People get excited about real estate. They invest in a program and then they don't do anything with it. Right. You said there was some fear. What were you most afraid of? What I was most afraid of, Matt, was that I didn't have the money. I didn't have the knowledge. How am I going to purchase the property?

Like, who's going to believe in me that I'm going to make a profit if people wants to invest with me? It was a lot of crazy thoughts, you know, doubts about myself, fear. It just blocked my head of not taking action to really where I want to execute. I think there's a lot of people that can relate to this. that. Like they think they're getting into real estate. They don't have the money. They feel like they're brand new. They don't really know anything about real estate. They're a little bit concerned. They won't be taking on seriously. But the second time around, that didn't stop you. So what changed?

I'm going to be honest. No lying aloud. No, I'm going to be honest with you because I'm not lying to you, but the second time I went to the summit, I really had a deep conversation with Mercedes about exactly what was happening in my life. So what was holding me back, addition to fear, was that I didn't have the support for my family. And not only that, I don't need my family, but in my household with my husband. I didn't have the support. And that was making it even worse to believe in me. But I knew, I knew inside of me that I wanted to do this.

I wanted to execute and get the feeling of how you feel, what do you feel when you accomplish your goals. So I took the decision that for me, in order to prove to myself that I am capable of doing and accomplish what I want, I had to take a big decision, get separate from my husband because he was one of the person who was, was dragging me down instead of pushing me to accomplish my goals. And I'm going to be honest. Once I decide that, Matt, all the opportunities start coming to me. Here I am. Here you are.

Wow. I am already with my second deal in less than six months. That's amazing. I didn't know that story. You just blocks in your mind or not only your mind, but in the environment that you surround yourself. You have to surround yourself with like-minded people. For sure.

And I was feeling so trapped. I was feeling like I explained it like a liar, you know, like you want to run because you know where you're going. But someone is holding you back. So you have to decide where you want to go. I didn't know that story. So Mercedes kept your story. Yeah, that's why I told you. I'm going to be honest with you. This is the first time.

I appreciate it. And that's something that we see pretty commonly. People come to Epic for help, whether they're going to, they want to go do it themselves and they reach out to me or they want Mercedes to do it for them and they'll reach out to her. And, you know, most people will, if they have the means and it makes sense for what they want to accomplish, they'll move forward. But probably the most common denominator amongst them, the people that do not move forward is sadly it's an unsupported. of spouse. That is true. And you can tell I first joined in 2021. I landed in my first deal in 2024.

And I came and joined back again in January the 23rd as year. That the mindset shift. Yeah. Mercedes is my third marriage. I read of everything that was holding me back. Right. This is my third time around in marriage. And I didn't really have that distinction until I connected with her because my

first two wives, they weren't supportive. They came from a very conservative background where you go to school, you get a grades, you go get a job and be responsible and you save your money type thing. You know, I always had this wild entrepreneur bone in my body that always had to be fed. And so I was always on to the next idea and doing this and that. And I didn't really realize how they were holding me back until they weren't there anymore. So for you to acknowledge it while you're in the relationship, I think that speaks volumes of who you are and what you stand for and how important financial freedom is to you. So,

exactly. Congrats. Thank you, Matt. You bet. I remember when we worked together on negotiating the purchase price for your first deal. And can you share with me what that process was like for you? I know what it was like for me, but I really want to know what it was like for you and how securing that $80,000 price reduction that we got.

How did that change the entire feasibility of that first deal? I think confidence having you as my mentor, I always get credit who deserves the credit. So if it wasn't with you because I had your help, I guess I was going to step walk out of that because the seller was not willing to bring the price down. So it came from an agent, right? So it was a direct. First thing that I asked to the agent is, why are they selling? Because, I mean, this is something that you always teach us, right? What's the need of the seller?

Why they are selling? And the agent told me that they had some medical issues, the mom. And in addition to that, they had a special child so that they were having some financial problems. and they really had to sell the house. So when I told me the offer, we agreed on a price based to the repairs. And then I went to all the inspections. They accept my offer.

I did my inspections. And based from the inspection report, I was able to bring the price down even more where exactly I was feeling more confident to close on the deal because I knew that by going through all the inspection report, I was going to have a better estimated price on how much exactly I was going to spend to repair the house. So that's how I end up closing on the deal.

Right. So you got under contract under one set of ideas of that what you thought was going on with the property. You got had the property inspected. It revealed much more than you thought was there. Exactly. Right? Yes. And then we used that to share with the seller that, you know what, it's going to cost more.

And we can't move forward unless you're willing to share in this liability with us, right? Perfectly done. Perfectly done. And the reason I kind of wanted to draw that out because it's, so many people are looking for a good deal. And they're out there and you can find them. But if you're always just looking for the good deal to be perfect right off the bat, you're going to be looking a lot longer than you would if, you know,

you just got something under contract and you're able to create a deal. Yes. And that's really what we were able to do. And there was another part that the agent was telling me, it is a good deal on this price because he was giving me an ARV of $4.50. And when I submit the contract, I told the agent, you're going to prove me that the ARV around the house that I'm buying is going to be selling at $4.50. So I let the agent know in advance that in the contract,

contract, he needed to put that if the appraiser report comes less than what he is telling me that the value of the house is going to be, I was going to also walk away. Walk away, yes. There were two things that I wouldn't under on the contract. Perfect. And then he was kind of sticking to his guns there when we were talking to him. And then we just asked him, okay, fine, well, we're willing to move forward. Sometimes appraisers get it wrong.

can you go ahead and get us some comparables that will validate the price, right? Exactly. We're willing to play ball if he could do that, but he couldn't do it, right? Nope. Nope, exactly. Super. So you got the deal, you closed through it, you closed on it, and this was a fix-and-flip deal for you. First time you've ever fixed up a house like this?

My first time, Matt. Okay. So walk me through that process. That's a big deal. You bid off a big giant bite of the... this animal here. So how did that start? Oh my God. So I start by getting together with the general contractor. How did you find the general contractor? By going to meetups. Going to real estate meetups. This is how I met this general contractor, the one that I hire. But I didn't get only one

quote. I got three quotes. So you got three different contractors, three quotes. Mm-hmm. Three quotes. One was really high. He was going to charge me $125,000. And the second one, it was between 60 and 75. Mm-hmm. And the third one was around 55. He gave me like a solid price, 55. Mm-hmm. So I stayed with the middle price.

Got it. We walked the house. I don't think I told you this too, but I hire a interior design. Oh, interior decorator? Yes, because I didn't want to lose time on getting the color of the paint, the changes that I wanted to do because I didn't know what to do in the living area. So she helped me to just do boards, you know, like pictures of all the material. We spent one entire day with her walking through all the stores, floor,

Loves Home Depot, choosing the material, and she made me some boards of everything that I was going to be using in the bathrooms, in the kitchen, in the showers, every single item for each specific area. And I started like my first payment that Gerald contractor requests for me was 50% of the total of the price. And I told him that I was not going to give. him 50% of the total price of the repair. So he said, how much are you going to give me? I said, I'm not going to give you any money until I see some, you know, work bond in the house. And he's like, no, I need at least five for $10,000.

And I said, okay, I'm going to give you that. But I want to see job done in the house in order for me to give you. you're not going to be requesting more money up front without me seeing the work bomb. It was a little bit of stress and a lot of anxiety with me because, you know, you never know what you're going to find. Right. But I guess with what you have been teaching me, you know, go through the scope of work and everything, for me, I think it was easy to follow the scope of work.

and pretty much have a very good conversation with the general contractor because in the first day we had a misunderstanding. And I called his attention and I said, you are not going to do things without asking me, please, I ask you that we need to communicate better so we can be both in the stage because you're not going to be the one deciding how the things are going to be done. I am the one who's going to be decided.

because he chose one color on the outside of the house because that's when we started first, the outside of the house. And I said, I didn't choose that color. And then he changed it. There you go. Good. You stood your ground.

You didn't give them all the money up front. That's how the contractors get you. So that's really good. So you got this through this process. And that took about how long from beginning to end to on the repair and the rehab? It took me exactly 12 weeks. to finish the repairs.

And it took me 12 weeks, Matt, because the owners stayed in the house one month after I closed on the deal. Oh, okay. Was that a surprise to you? Did you know they were going to do that? It was not a surprise to me, but it was a surprise to me that at the time that I was there with the general contractor, when I decided that they were going to be able to stay in the house,

we came to an agreement that he was going to stay in the house, but he was going to leave $50,000 in escrow for them to be able to stay in the house. When they leave, in the 30 days they were going to leave the house, then they want to get their money back. But on the contract that I signed, I told them that I was going to be walking inside of the house any time that I want. with only six hours or two hours in advance notice. So when I walk inside of the house, actually it was three times,

they denied to have access to the house. And that was something that I learned, and I'm not going to do that anymore. Very good. No, I highly encourage not to do that, unless you've just got some really strict penalties in place, right? Sweet. So 12 weeks, now the place is kind of looking like you want it to. I know Mercedes had helped you out a little bit because she would kind of pull away, right? You set her pictures back and forth.

So that was fun to see those. Let's go back before we talk about what you sold it for, how much you made. Let's talk about the money part. So that was a big fear in the beginning a couple years ago. And then we were able to overcome that. So how did you put the finances together to first acquire the property and then fix the property? Where did that come from? Okay.

So to acquire the property, Matt, I used a hard money lender. Okay. Since I started with you, you always telling us that because I was with my kids when I first met you and when I first went to the summit. So I started going to a lot of real estate meetups. And this is how I found a really good harmony lender that since day one, when I find this company, I was always, you know, reaching to them. I have this deal. I have this house. I even submit the application with them.

So when I first landed with this project, it was so easy for me because they told me, Hilda, if the house that you're buying falls in the 70% rule, the money is going to be there in less than a week for you to close on the property. So I did my numbers. I approved to the harmony lender that I had a really good deal. I sent everything, the purchase price, the cost of repairs. They purchased their property for me, and they gave me 100% of the repair costs. Nice. So explain to me what's the 70% rule to them? The 70% rule to them is that, let's say, for example, if the house that I purchased

this one, it was value at 425. $4.25 times the 70% minus the repairs. The total, after doing that map, that's where I needed to be to purchase the house. So $297 basically is 75% of that. And then we had the repairs on top of that. So they just needed the purchase price to be 70% and then they would do that plus the repairs. Yes. Perfect.

Okay. Awesome. And you met them at a meetup group. a meet-up group, uh-huh. Look at that. All your possibility, everybody, lives out there talking to other people, talking to like-minded people. Everything you need is out there.

Yeah. This can be a home-based business. Yes. But it's not a home-bound business. Exactly. Right? Yes. I also got a private money lender because I had to have 25% of the cost of repairs on the bank.

I have to prove the hard money lender that I have 25% of the repair. So you didn't have to put that in. You just had to prove that you had it. No, I didn't have to prove. They asked me for bank statements. They told me, as long as you have 15,000 in your bank account, it doesn't matter if you have them today. Just proof that they were in the last month and the previous month of last month. So like three months before. Very good. So you just had to prove that you had a balance. You didn't have to come in with the money. You didn't have to use it. Exactly. Just prove that you have the balance. They don't care if you have to. If you don't have it, they're going to give the money to start the 100% for the repairs, they cover. That's awesome.

So with your private money lender, you just had to kind of borrow their bank account, so to speak, right? Exactly, which was my son. My son is my private money lender. Nice. Keep it in the family. Yes. I love it. Very good.

All right. So how do we end up? We put the property on the market. You all right? We sold it to a retail buyer, correct? Yes, that is correct. Very good. And then how long was it on the market for?

It was only, I want to say, 48 hours. Get out of here. Yes. In this crazy market where everyone says nothing is selling. Exactly. And I still have to do my homework. I feel like maybe I priced the house very low. That's why it got sold in 48 hours.

Well, it's better to sell it in 48 hours than get stuck with it. Exactly. So what did you sell it for? I sold the house for $3.95. Okay. So $3.95. And that's kind of the number we thought where the actual after repair value was when we were to talk to the agent. Exactly. Yes.

And then after you paid everybody back, the hard money lender and all that stuff, and you paid the commissions to your agent and all that stuff, what was left over for you? $59 something, $59,000. Would you consider that a success? Oh, my God, Matt. It's a life change. That's amazing. Less than what. So how has your life changed since you brought that up after completing that first deal, both financially and personally?

I want to say that it's a big change lifestyle. You feel confident, you trust more, you know, yourself, and you have more financial freedom. Everywhere you go, you start seeing opportunities. Like every time I go out to walk or see a house, if I take one road, I don't exit the same road. I use a different road because I'm always thinking about that I'm going to find another opportunity or another house that I want to call or go walk.

You know, your mindset change. So knowing what you know now, if you could go back and talk to Hilda from 2021 when you had made this decision to become a real estate investor, but we're scared to pull the trigger. You're scared to take action. What advice would you give to that Hilda today? Very easily. Trust your instincts, Matt.

Just trust. Be patience, but take action. I'm writing all of this down. Amazing. I imagine that would be the same advice. you give to somebody listening to you right now that still hasn't done their first deal. Exactly. And another thing is that expand your circle with like-minded people.

Totally, right. Be willing to experiment and fail. Nice. Okay, let's finish it with one really invaluable lesson. And you might have said it already, but let's try and think of something different. If you were to do it all over again, what would you have done differently? don't waste time. If you know that's the path that you want to take, go for it.

Don't waste like, you know, your time in other things. Like just concentrate and focus what you want in life. Awesome. Concentrate and focus. I love it. Hilda, thank you so much. I know you've got your second deal. You're at the coaching calls every week faithfully.

I can tell you're taking action. You know what? I'm ready to take the next ride with you. So when you need me, you know how to get in touch. Thank you so much, Matt. It is a pleasure, and I'm so happy that I have you as my mentor. You have the energy that impuls me to keep learning and keep pushing to accomplish my goals. And also Mercedes, I love Mercedes.

Mercedes has an energy that, oh, my gosh. Oh, my God. Yes, I relate. That's why I married her. Awesome. But she's taking everybody. She's mine. I'll thank you so much.

You're very welcome, Matt. Thank you. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind,

please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you, and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream.

Yeah, yeah, we got cash. You didn't know home world, we got to dash low. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.