All Forum Posts by: Janos Castro

 As a 7 year commercial real estate broker turned investor I would say if your situation is that of a person new to real estate and short on cash then Wholesale would be ideal because it will start bringing you quick cash which you will eventually want to use to start a buy & hold approach - this is what my approach has been but I'm sure others may have a different opinion. Typically to buy & hold you will need either cash or a private money lender to help you put up the initial investment to purchase a property, pay closing, and rehab. So you might want to do a few wholesale deals (4-5) then buy a property, and repeat. Hope this helps!

I have a client with a STR portfolio (>4 units) which includes a separate Short-Term Rental Referral Website/Business. We can valuate the properties based on long-term market rental rates and we can determine the cash flow from the STR business. What is the best way to valuate the portfolio including the business? is there a profit ratio typical for a STR Portfolio? I have another client looking to buy but I'm looking for the best way to price this deal? any ideas?

I'm not advocating for STR or LTR. Depends on the market. Our STR have to be serviced 2-3 times per week and its booked solid for 2 months in the future. The level of tenant care for the property varies. My point is that each owner/investor needs to weight in work vs profit, is it worth it? for some it's absolutely yes, for some it may not. There is no right answer. If someone asks me which one is better, I tell them it depends on what you want.

STR are more work due the higher rate of turnover. The real question: is the extra income worth the work and hassle? is hiring a cleaning service worth it? There are alternatives to STR that avoid this issue... corporate and nursing services that often bid for 2-3 month bookings instead of 2-3 days at a time. For this to work, you must be in the right location. I would look at the benefits of one vs the other. If it was my property, I would consider the earnings and the reputation of my business (reviews, vacancy).

It's not just a matter of favoring but what your team is prepared to handle. We do not compete with major corporate firms. Our niche is small-medium MF market. We further specialize by location and type of building.

Have you considered the Charlotte, NC market? incredibly high population growth rates, great demand for MF specially in the mid range and small to medium size unit counts. You will not find the cap rate specified, but certain investment strategies more than make up for that in this area. Charlotte is one of the top, if not the #1 market, for certain real estate sectors in the country. 

I've specialized in small to medium off-market MF and the potential is very rewarding if you know where you are looking.

HI, I'm new here. I had a business a few years ago that failed and killed my credit and savings. I have been a Real Estate broker since, in residential at first, but now working commercial. Until recently, it was simply sales and typical broker representation - no investment type deals. Recently I decided to focus on income producing properties and begin participating as an investor. However, my credit is bad and so are my savings due to a failed business a few years ago. I have a couple of investors/clients looking to do the same (long-term rentals and value-add multi-family resale/hold after 5 years). My question is how do I (what kind of written agreement do I need) purchase a property using their money, add-value, refinance, and repay their investment/and interest, and keep the property under my name, considering my credit problems. I would appreciate any advise. Thank you.