Residential Land Development 101: 3 of 3

Residential Land Development 101: 2 of 3

Residential Development 101

Valuing & Vetting Vacant Land (SoCal): Appraisal Basics & Due Diligence 101

Sizing Up Rentals (1–4 Units): Cap Rate, Cash‑on‑Cash, DSCR

Ask These 25 Questions Before You Hire a Realtor (OC Homes & Lots)

Welcome back to Unlocking Real Estate! I’m your host, RJ Hernandez, and today, we’re talking about everyone’s favorite F-word: Financing. In a world where interest rates are on a rollercoaster, and banks are pickier than ever, how do you actually fund your deals in 2025? We’ll explore traditional options, creative workarounds, and real stories from the frontlines.

SEGMENT 1: THE LAY OF THE LAND Let’s start with the basics:

· Conventional mortgages: down payment, credit requirements, DTI ratios

· Portfolio and commercial loans: how they’re underwritten

· Bridge loans and hard money—fast but costly

SEGMENT 2: CREATIVE FINANCING STRATEGIES When banks say no, investors get creative.

· Seller financing and subject-to deals

· Lease options, wraps, and contract for deed

· Partnerships and syndications: split the risk, split the reward

· Crowdfunding: is it hype or a true alternative?

SEGMENT 3: THE 2025 LENDING ENVIRONMENT It’s not 2019 anymore! In 2025:

· Underwriting is tighter, documentation is heavier

· Rates are volatile—should you float or lock?

· Banks favor low-risk, high-equity projects

SEGMENT 4: PROTECTING YOUR DEAL Tips for weathering funding storms:

· Always have a Plan B for financing

· Use escalation clauses for interest rates

· Get clear on your exit strategy before you sign

· The real cost of private and hard money—run the numbers twice

Financing can make or break your next deal, but it doesn’t have to be a black box. If you want the show notes or example deal calculators, visit our website and sign up for our newsletter.

Next episode, we’ll flip the script—literally—and talk flips: the good, the bad, and the ugly. See you next time on Unlocking Real Estate.

Welcome back to Unlocking Real Estate, where we pull back the curtain on what really happens in today’s property market. I’m your host, RJ Hernandez, and in this episode, we’re going deep on the anatomy of a deal—from that first spark of an opportunity all the way to a signed contract and keys in hand.

Have you ever wondered how professionals spot deals, structure them, and avoid disasters? Today, we’ll break it all down—step by step—and share stories from the trenches.

SEGMENT 1: FINDING THE DEAL Every great deal starts with a lead. But where do they really come from?

· MLS listings and on-market properties

· Off-market deals via networking, wholesalers, or direct outreach

· Data mining and driving for dollars

· Building a referral network

SEGMENT 2: DUE DILIGENCE DEEP DIVE Once you’ve found a potential property, due diligence begins. This is where real estate fortunes are made—or lost.

· Title search, liens, and encumbrances

· Physical inspections: roof, foundation, major systems

· Zoning and land use

· Environmental checks (soil, flood, fire)

· Market comps and rent analysis

SEGMENT 3: NEGOTIATION & CONTRACTS Now, it’s time to negotiate. Price matters, but so do terms:

· Contingencies (inspection, appraisal, financing)

· Earnest money and escrow

· Creative clauses—seller carry, assignment, inspection windows

· Working with or around agents

SEGMENT 4: FINANCING THE DEAL How you fund the purchase can mean the difference between success and a cash crunch:

· Conventional loans, bridge loans, and hard money

· Raising capital—partners, syndications, private equity

· The importance of timeline alignment: do your funds match your escrow and build-out?

SEGMENT 5: CLOSING & LESSONS LEARNED The last mile: closing. But don’t pop the champagne until the funds have cleared and the deed is recorded.

· Final walk-throughs

· Closing statements

· Wire fraud and last-minute disasters

· The emotional rollercoaster of closing day

That’s the anatomy of a deal—lead, diligence, negotiate, finance, and close. Whether you’re a newbie or a seasoned pro, mastering these steps is key to success in real estate.

Have questions? Want your deal featured on a future episode? Reach out via our website or social channels. Next week, we’re talking creative financing in a rising rate world—don’t miss it.

Subscribe, share, and keep unlocking your next opportunity!