Pedro had a nightmare about a demon woman being in the room, and he started screaming. 

Rafael later had a similar dream, prompting Alaric to close down the school in a sense and sent the students to Lockwood Mansion.

Rafael's dreams intensified when Hope started to get closer to him, and the demon made fun of him for it. 

He later told Hope they couldn't be near each other for Landon's sake, prompting a bitter war of words. 

But Hope was lying to Landon to protect him. In the end, her lies helped save their lives. 

Hope overpowered the demon after bringing it to this world. 

The TRIAD industries man showed up at the foster home and quizzed about Rafael and Landon's whereabouts. 

In a bitter standoff, the man realizes the parents have been messed with.