All Forum Posts by: Lou Castillo

I use comparable sales data from one of the online sources. You can use Real Quest or SiteXData. In some areas Courthouse Retrieval Systems is available.

If you meant how do you calculate the right offer, let me know.

Here is how I approach all deals/negotiations...I am not the motivated one - they are. I can walk away. If you have truly found a motivated seller - they can't. Therefore I dictate the terms or I walk away. Is your seller really motivated? If so, just hang tough.

My advice is never start from the place of what the Seller is asking or how much they owe. Always start from what the house is worth to you. You have to know your top price before you can even start negotiating.

What I mean is this...suppose the top price you can pay for the property is $55k. Does it really matter how much she wants for moving money? You can't pay it. So ether she comes down to your price or you are not a solution for her. If she is motivated and has no other offers, she'll accept. If she has a better solution or time to wait...she will. So what? You don't want a house under contract for which you paid too much.

I have a Deal analyzer that I use and I would be willing ot share. Just write to me at [email protected]

When I say 'structuring the deal" it means what are the terms. Are you buying it "subject to" the mortgage? Can you get seller financing? When do you have to close? Can you have access to the property for 30 days? 

For rentals, I like to buy 'subject to" the mortgage so I don't have ot go out and get a new mortgage.

Adam, I think what you are really asking is where is the best place to find great deals. I recommend to my Clients that they create a marketing campaign to targeted lists. The best ones are: probates and evictions - and to a lesser degree out-of-state owners. As you grow your marketing budget, then you can start a geographic area blitz and really find great deals.

I will counsel you the same as I do with my clients - be careful getting into rentals as a 1st foray in real estate investing unless you have sufficient cash reserves to handle unexpected expenses. I have see too many investors lose everything because they were underfunded to start with rentals.

As for the other strategies, I recommend that you learn different strategies for structuring a deal, and utilize the right one for the deal in front of you rather than look for a deal that matches the strategy. 

Think about your exit strategy - are you wanting to renovate and re-sell; wholesale; or build your rental portfolio. One of the advantages of wholesaling (besides consistent cash influx) is that you can pick and choose the best properties for your rehab or rental projects.

btw...I'd be happy to share my Deal Analyzer with you. Just write to be separately at [email protected] 

When I meet with a true "private" lender I provide a brief credibility kit which I give them to look at after we have already met. It includes:

Organization Background (My bio and about my company) and the types of projects we do

A bullet point overview of the program - be sure to discuss security of their funds (low LTV; Title Insurance; Hazard Insurance)

List of Clubs & Associations (REIA; BBB; Chamber; Service; etc)

Template of the Note & the Deed

Pictures of houses yo have completed

So I would have reviewed all of this information in the personal discussion, then I present it to them in writing so they have something to take with them.

One of the big benefits of dealing with me that I offer my sellers is that they will have to pay no closing costs and the Purchase & Sales Agreement (PSA) says that.  Wen you Assign the contract to your buyer, they are agreeing to the terms in the original PSA. So ultimately it is the Buyer who pays the closing costs.

Thanks everyone. I appreciate the info.

It was my understanding that MLS had a prospecting feature for agents of all homes within a specified area so Realtors could do DM marketing. If so, that would be the feature that I would like to access.