All Forum Posts by: Luis Castillo

Lauren, call me tomorrow after noon. I can help you. I was a broker for 25 years. You don't need an attorney here in Ca. I have realtor friends that will give the seller all the disclosures. I would go straight to escrow and get title insurance and you'll be good as long as this is an investment property and you're not purchasing it to live in.

Alex,
I am from CA. and have purchased in Texas. I haven't purchased in Dallas but I think that it will be my next move. You can still buy cheap and generate cash flow. Although I believe in appreciation and hope for it everyday, I feel that if you buy it right you don't have to worry about it. With 100k I would buy a multi family property around 20 units if you can and amortize it over 20 years. Management will be easier than buying several SFR's and it should generate a great cash flow.

Good luck.

By the way, Indiana looks good on paper and it's closer to you, I would also consider that area.

Hey John,

Glad to see you're staying busy. Call me tomorrow around noon, I found a few interesting properties.

Everyone is concerned with which party will win. I have been investing over 30 years and have always done best in down markets, but I like what Jim Rohn says and I am paraphrasing, "Don't try to change the economy, change your philosophy." That means we can all make money in good times or bad times, Democratic or Republican, just keep your mind open and keep updating your information. Don't be stagnate in your way of thinkilng.

BP has been a great help. I have read many interesting articles and responses by some real smart people. I am glad we have it. Thanks Joel and everyone who participates.

I respectfully disagree with Dale. I think that A has the risk that anyone can lose a property in foreclosure and tie it up for years in BK.
At the end you may or may not get out with your investment but you will not receive monthly payments for a while. I give this a 3 because more than likely it won't happen.

I like B the most because you receive steady rents and there are several tenants. If a few don't pay, you have normally written it off already as your expected vacancy. Over the years rents go up and your income steadily increases unlike the Note. Because you're income is received from several tenants and multi-family is steady at the moment, I give this a 4.

C and D I would give a 2 only because the market is soft and vacancies tend to be prolonged. I have seen offices and shopping centers stay vacant for years.

Having said all this, everyone usually thinks that their field is the safest. Since they are experts in that field they believe they know what to watch out for and can manuever safely through the mine fields pertaining to that investment.

Jilliene, you didn't tell us what you think.

Laurie, I think youir numbers are off. $31,000 divided by 12 comes out to $2,583 per month. Using your monthly payment of $1796 per month for a 15 yr. mortgage at 3%, leaves Dale with a net monthly income of $787, annuall of $9,448. If Dale buys puts 20% down and has 3% in closing cost he will need $74,750. $9,448 annually is a 12.6% cash on cash return, which isn't bad keeping in mind that he is amortizing his loan over 15 years and will be getting a nice principal reduction every month.

You say drop the price to $300,000, I agree if that's possible. Dale look at your comps, see what's available, see how long this property has been on the market and if there aren't several offers on the property maybe you can start low. Otherwise do your homework. The expenses on the property are less than 25%, that's pretty low. Check vacancy in the area. Are they including a management fee? Are they setting aside any reserves? Are the rents they are using actual or projected? All of these can change it from a good deal to an OK deal or even a bad deal.

Good Luck!!!

Sorry, I meant to say the relief runs out in Jan. 2013.

I need some information please. It is my understanding that when you do a short sale right now, lets say you owe 200K and you sell it for 150k the difference in what you owe and the sales price (50K)is mortgage relief, which I understand at the present time is not being taxed. I heard that the government has given relief, but apparently it out January 1, 2013. First of all is any of this right and second of all does it expire and if it does, is there any talk of extending the relief.

Consider doing a lease option on a house you really like right now. Lock the price down for two years and you will easily qualify and hopefully the market has recovered by then. In the meantime use the money to buy a multi-family to generate even more income.

Money can be made in any city and in any business. I am sure people have made fortunes cleaning out cesspools. I just don't know if that's how you want to make your money, knowing that you can make it selling perfume.