"People think that to start investing in real estate, you need a lot of money, but you really don't," he said. "Once you can find the deal and understand the formula for making a profit," he said, "you bring a deal to someone like me now, and if it makes sense, I will partner with you."
As a young real estate agent he worked with investors, finding them properties to flip. "They were making $50,000 or more in profit," he said, "and I would make my little $5,000 commission." "I took Lucky to the auction and showed him what people were buying and what they were making," said Fuentes.
Plus, now there were too many investors.
Using these kind of high-interest lenders, Fuentes is able to put less down and put more money toward buying properties and renovations.
Now Fuentes funds and runs his own real estate investments, flipping about 15 homes a year, in addition to being a real estate agent and owner of three RE/MAX offices. "Perhaps your first deal is a 30% cut for you, maybe less," he said, "but you'll learn from the process and you'll make some money.
If you have a 20% or 10% drop you're not making any money."