All Forum Posts by: Luis Castillo

Thanks guys.  Steve, I already cut the package down. The seller owns over 50 properties and I was able to cherry pick these 10.  You're right though, maybe I can do 5 and 5.  Good idea.

I am purchasing 10 SFR in Lubbock. The property will be held in an LLC. The properties are all occupied and rent on average for $675 per month. I am looking for long term financing but am willing to do 1 year to close the deal. Sales price is $425,00 and I can put up to 30% down but I need a quick close. At most 3 weeks. Please send me some professional lenders with integrity

Thank you!

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Briefly explain that a broker will take the overpriced listing and try to convince her to take less as time goes on. The agent will hope that she will get desperate and take a lower price. Tell her to ask the agent to put you as her potential buyer. She can sell to you at any time and cancel her listing agreement. Tell your seller when the listing agent starts bringing you the lowball offers to call you and you will buy it.

You probably have a 50/50 shot that she will call you later. At least she will know you are knowledgeable. Even if she doesn't sell to you (she might be embarrassed to call you) she might refer someone to you in the future.

To sell through an agent she will have to either put money in the property, or sell to an investor who will only pay wholesale prices. Eventually she will see you were right.

I agree with Joel on purchasing a large apartment complex. With your cash there are definitely properties that you can buy below market and build even more equity.

Basically the government is lending you the $750,000 interest free to buy more units. If you pay $25,000 per door, they are basically giving you 30 units free and clear. If each unit rents out at $500 per month and your expenses on the property are 50%, that's an extra $90,000 per year that you are making.

Also if you pay the $750,000 in taxes, you have to invest the other $750,000 and profit 100% in one year just to break-even. That's not counting the extra $90,000 you could make mentioned above.

The normal foreclosure process starts with a Notice of Default it's a 90 day and you supposedly have that time to bring your mortgage current. After that the trustee files a Notice of Sale which gives you 21 days to supposedly payoff your loan in full.

I say supposedly because most lenders today will give you until the actual sale to bring the loan current. In the old days most lenders waited 2-4 months to actually start the foreclosure process and it would normally take approximately four months to complete.

There is no court action necessary. The trustee files the notice in the newspaper and has to deliver notice to the owner which is usually done by registered mail.

As you may know, because of all the mess nowadays, a foreclosure can take several years but I think once we get back to normal we'll see lenders in CA. taking 6 months to foreclose.

As far as companies that sell you information, I agree that you should use someone local. I use a company in Los Angeles that gives you pretty accurate info and what I like is that they were one of the first companies to list all the loans on a property and tell you which one was foreclosing. Previously most companies just told me there was a foreclosing trust deed and an amount, I never knew what position the loan was in.

Good luck, I hope I have helped.

You can find the value of most properties by sales comps in the area. Then loans are usually public record. Find the value, subtract the loans and you come up with the equity.

In California, title companies give us property profiles which have all of the information in one package.

Thanks guys. That's the information I needed. Since taxes aren't my strong suit, I had never even heard the term "disguised sale"

Melody, if all he cares about is the monthly payment, don't raise your price or the interest rate just shorten the years of amortization. You can still get a good price and low interest rate. You will raise your monthly payment but you will be reducing your loan amount faster.

Kenneth I believe in buy and hold. FOREVER!!! Yes maybe exchange up during some great buying markets like now. I want to see all my properties free and clear in 15 years. This way it really doesn't matter if real estate is up or down. Keep your properties clean, safe and in great condition and you will usually be full.

Make sure you buy right and the properties cash flow then let time take over. Before you know it you'll be sitting pretty.

I purchased 10 units with $40k and the seller carried back a first for 30 years. When we closed he told me that the tenants were all his friends and he wanted the rents to remain low for at least six months. They were about half of market rents. My first reaction was that he was kidding so half joking I told him I could leave the rents the same for six months if I didn't have to pay him for those months and he quickly said OK.

So I collected $2750 per month for six months without having to make any payments. The loan amount was $190,000 and within a year he agrees to take $150,000 if I paid him early. So I saved another $40,000.