All Forum Posts by: Lou Castillo

Any terms that you negotiated in the PSA can be Assigned which is my preferred method. I try to never own a property if I don't have to. Having said that, I do want you to consider what it means to pass along the ST. Your seller is believing that you will make their mortgage payments. When you pass it on to your investor buyer you have no idea whether they'll make the payments or not. If they don't - who will the seller hold responsible in their mind? This is the reason the Attorney Generals from different states want to prohibit or at least restrict STs. So be carefule on how you do it.

You're welcome. I just wanted to confirm that you realize that the PSA is mine and is copyrighted by my company?

It used to be my primary source of income - and a very good source. I have now added information marketing as well. It ties in very well with real estate investing without having to start up a brand new business.

This economy that everyone in the media loves to talk about so much is actually a windfall for investors. what we're really seeing now is an abundance of super motivated sellers.

Having said that, if you truly want to be successful you have to find really profitable deals. There are still plenty of investor buyers, but they are more cautious. They want to ensure it's a good deal.

Like was said earlier, this is a marketing business. develop a good marketing campaign and stick to it. Get the leads coming in - that's how you'll find good deals. And don't be discouraged. You'll still talk to 20 to find 1 good deal. But then it will sell because of the profit.

You're right to get training in this business before you get started. You have to know what you're doing.

You're welcome. I hope it benefits others.

As far as I know it works in all states, but you may want to run it past a local attorney to verify. They will also tell you what I already told you which is that there are none of the typical contingencies (financing; inspection; termite). I have done that on purpose. This PSA limits your total exposure to the amount of the earnest money that you put down. So I don't need a bunch of contingencies.

Thanks Jon.

OK everyone. Attached is my 1-page PSA. My only word of caution is that I removed all contingencies because I know that I am going to buy the property.

I'm not sure how to post the PSA on the Board, but anyone who sends me a PM I'll be happy to send it to them.

Make sure that your Purchase and Sales Agreement (PSA) is as simple as possible for the Seller. A confused mind alwasy says NO. My PSA is just 1 page long. Also, embedded in the legal jargon is a statement that specifically allows the assignment of the contract

I usually do not put earnest money on a house that I am buying. I tell the sellers that I buy a lot of houses. If I had to put earnest money down on every one, I couldn't buy as many houses. I also remind them that my contract has no contingencies because I am going to buy the house. I'm not playing games.

For the few where I do have to list earnest money, I will have my attoreny hold the funds. The only time I give the earnest money to the Seller is if I have used it as an inducement to get them to sign now. In these cases I know that I'll never see the earnest money again if the deal falls through for some reason.