All Forum Posts by: Justin Aguilar

Hello BP & BP members,

       My name is Justin Aguilar. I have been looking and studying off and on for a couple of months as to how I can start investing in Real Estate. I would like feedback as to what I can do in my situation to reach my goal. My goal in Real Estate is to own multiple different properties(preferrably multi-families) to have enough cash flow to be financially free. As of right now, I do not have a lot of capital to work with. I am living in an apartment with 2 roommates in Los Angeles, CA. Rent is high, but i am able to keep up with my part of rent with a couple of monthly expenses. I also have enough income to keep up with my groceries. I have very good credit at around +730-760.

So far, in my situation I believe to gain quick capital and lump sums would be the best route. So instead of gradually buying property at the moment, I want to pursue in creating fast lump sums to fund those properties and as well to save some of those capital gains. I say I should start off with Wholesaling/Flipping. My strategy here is, that I find a deal and instead of wholesaling to an investor, maybe I can JV with him/her. My problem so far has been.... I CANNOT FIND A DEAL. I know when it comes to marketing I WILL be needing capital.. But how much capital will I need? Can i use my good credit as leverage for anything? I mean I have done some direct mailing. I spent $600 dollars on Free and clear homes... I got no bites.. I have done handwritten letters before, I have gotten a couple of phone calls, but a lot weren't serious sellers. I have done driving around for dollars and writing down the address and doing direct mailing to those addresses. Is there any niche you guys suggest I work myself into? Can anyone provide a link for a step-by-step guide into how i can "farm" a proper area and if its worth it? Thanks BP members!

I'm sorry I forgot to mention, that i did run comps and a home two houses north of the subject with same criteria went for $440k last year in August. I did give her a call and i mentioned that the comps I have didn't nearly reach $550k. She said her realtor believes he can sell it for that much, but in my opinion i would assume that's putting $70k of rehab cost. With that being said, who in the right mind would want to buy a home at $550k if all the homes were sold at $400-450k?

She claims her realtor knows an investor that would purchase at $375k. I did my numbers and did NOT see any type of profit

I am willing to joint venture and take a small cut. I want to learn the process!!!

Contacted owner in December 2016. Wanted to sell home and having problems with tenant. The tenant would not pay rent. The tenant finally got evicted and now is able to sell her home. She had an offer of $375,000 from an investor. She is willing to take a higher offer from us. She got the home appraised and claims the property can be sold for $550,000-$600,000. She said to make the home sellable, the rehab cost would be $45,000 - $70,000 if decided to higher the value. She has some type of contract with her tenant, where he may be able to sue her. her attorney says that if she sells the home, then in the contract there is nothing that the tenant(George) can do. Please be mindful that the contract has not be checked on our end and it NEEDS to be checked!!

- Does not know when she may pass away

- Will lose more money.

2. Rehab herself and sell

- More cash

- Time consuming, takes longer to get it out of her name.

- Heightens opportunity for tenant to hire an attorney.

- Health issues. Should not continue to rehab in her condition.

If there is anyone in the Southern California area to help guide me through the process and close this deal if its worth it, please contact me ! 

@Robin Boyer

 Wow! I'm assuming it was with the tenant you were telling me about. Well, I will be looking forward to your get together.

@Christopher Phillips

Thank you for the information! This has all been a learning experience nonetheless.

Also, his agent may be looking at a commission rate of anywhere from as high as 6% right?

@Brett Goldsmith @Christopher Phillips

Hello! so I just got an update with my broker. He said that the owner is staying with his current agent, It sounded like he just wanted a second opinion, but the good news is, that I can still purchase the home for low, because it is a SHORT SALE. As for what I know, its up to the home owner to input the offer and see if the lender will accept the offer. SO in this case, I am going to put an offer of $250,000. It may or may not get accepted, but if it does it DOESNT effect the owner whatsoever. We can make a really good profit. Worst case scenario is purchasing the home at $280k, which I will snag anyhow! I built good rapport with the home owner, but obviously the agent is going to want or convince him to put a higher offer because it wont get accepted, and from what my broker has told me, he said that the owner's agent is going to give him 1% of whatever commission he makes. which will motivate him to go his route. My idea is to beat that 1% or match it with whatever we make. Also, I will be getting a 20% referral fee from my agent, which I can leverage to use partial of that fee to give to the homeowner, which will make it stronger.

With that being said, any pointers as how I should approach this situation? I will be giving him a call later this evening.

Yes we did ! @robin 

@Robin Boyerundefined

Thanks guys for all the information. @Brett Goldsmith @Victor N. @Christopher Phillips @Account Closed

    So, what I did, I basically referred him to my broker and my broker said he would take a cut. If that still doesn't work, it looks like we can work a deal for a short sale. The problem is, with the short sale, I do not have the financing to purchase the home, do you guys have any idea as to how I can come up with the financing? I was thinking of getting a home loan, with borrowing the down payment from a friend or family and give them a cut. But that just adds to the fact that i will then have to pay the loan as well as pay off the family or friend.