All Forum Posts by: Josh Justiniano
Josh Justiniano has started 21 posts and replied 164 times.
Post: The right purchase agreement
- Investor
- Thousand Oaks, CA
- Posts 176
- Votes 47
I just put Contract is subject to financial partner's written approval to be provided to seller within 14 business days of the execution of this contract.
then, hey, if they don't get a written approval then that's my out.
Also, I put a liquidated damages clause in contracts as well, with EMD no more than 100 bucks.
Post: Wholesaling in 55+ communities, Can it be done?
- Investor
- Thousand Oaks, CA
- Posts 176
- Votes 47
Hmm. I personally target property that is easy to sell. But, I'm sure it can.
Post: Need Help on My First Potential Rental
- Investor
- Thousand Oaks, CA
- Posts 176
- Votes 47
My suggestion:
Model out the scenarios. Be sure to include all cash outflows and inflows. Put it into a spreadsheet then find your internal rate of return. Take the scenario with a higher IRR.
I have no idea what is better with your investment philosophy but personally, I'd like to keep as much working capital as possible to close other deals.
Post: Pulling Lists from MLS
- Investor
- Thousand Oaks, CA
- Posts 176
- Votes 47
Anyone know how to pull expired listings and create a report with the owner's name and mailing address in a single report?
What about absentee owners with site address, mailing address and owner's name?
Post: Transferring property to an LLC that is owned outright
- Investor
- Thousand Oaks, CA
- Posts 176
- Votes 47
It's probably a lot easier than if you were to have a loan. I'd say ask the real estate tax attorney to set up your LLC in MHO.
You know you're safe, plus they will answer all those questions for you.
There are also legal websites where you can pay an attorney to give you legal advise and it will be cheaper than in person.
With conventional loans it might be harder to transfer if the property is in your name.
Post: Analyzing my first deal. A Foreclosure. Would love some feedback.
- Investor
- Thousand Oaks, CA
- Posts 176
- Votes 47
Based on your numbers you are likely cash flowing negative.
Another thing, the 50% rule, or 40% rule is not a rule. It is a rule of thumb. Most of the properties I look at are actually around 55 even 58%.
Let's say your rent is 750, and you have the same sized house. Your repairs will likely be the same as the 950 house, except the percentage of PGI is more.
I actually rarely ever use it, except in the first 2 min. of looking at the deal. Also, call the property management in the area, verify the rents. Call an insurance broker and get a quote. Go to the county tax assessor website and access the property tax amount. Be sure to get the expected remaining economic life of big ticket items such as the roof, and factor that into your monthly reserves.
Based on your numbers you would likely break even a month, which actually means you will loose money because nothing goes as planned.
Another thing to look at. Your ROI may be very high if there is little money down and that may be enticing, but have a look at your debt coverage ratio. If you are at 1.05, you know you are likely going to have a problem down the road with negative cash flow, or the margins for error is extremely thin. However, if your DCR is higher around 1.25-1.5 you should be ok. I like to look at that metric as well because it will tell me how much wiggle room there is a month.
If I were you, I'd pass on it.
Post: Marketing to Churches/Charitable Organizations
- Investor
- Thousand Oaks, CA
- Posts 176
- Votes 47
What is your opinion on this practice? Do you market using professional letters, yellow letters, post cards?
Many times these organizations are willed property and would rather have liquid cash than real estate. Let me know your opinion/thoughts!
Post: College, Motivation, and Syndication
- Investor
- Thousand Oaks, CA
- Posts 176
- Votes 47
That makes sense. I'm trying to learn finances on my own (difficult) through an online free college platform called Corseara or something like that. Jumping through the bureaucracy of college is not fun, and having to take dumb classes like analyzing the movie "The Big Lebowski" doesn't seem like my best use of time. Thanks for the input and all the best!
Post: College, Motivation, and Syndication
- Investor
- Thousand Oaks, CA
- Posts 176
- Votes 47
Although I believe college is not a necessary pre-requisite for doing bigger commercial deals, how do you think it has helped you?
What do you use that you have learned in college? What do you not?
Was that as much of a factor as "seat knowledge"?
Post: Can't find any deals?
- Investor
- Thousand Oaks, CA
- Posts 176
- Votes 47
Originally posted by @Ibrahim Hughes:
1. Tired landlords a. List of eviction court attendants b. Mailers to Out of state landlords c. Mailers to Landlords who own more than one property with back taxes d. Mailers to Landlords who own tax delinquent multi-family properties e. Buy a "leads list" of landlords from: (www.realquest.com) 2. Mailers to Property owners whose assessment went way up this year 3. Mailers to Properties that were owned by known investors who went out of business 4. Mailers to out of state landlords/Owners of multifamily houses 5. Mailers to Tax delinquent homeowners 6. Place "We Buy houses" flyers/business cards at unemployment offices....a lot of people there could be having trouble with their homes and may need a solution 7. One-page Flyers posted on bulletin boards at large stores 8. Mailers to Vacant land owners (only in specific areas where development is ideal) 9. Using Craigslist to find sellers: a. Post ad that states, "We Buy houses" b. Send emails to craigslist ads with apartments for rent (the emails go to landlords who may be looking to sell, or buying more properties) 10. Mailers to specific zip codes (preferably low income neighborhoods) asking if they want to sell or know someone who does 11. Mailers to People getting divorced 12. Mailers to Divorce Attorneys who can refer clients to us 13. Mailers/emails to FSBOs 14. Send mailers to expired MLS Listings 15. Post ad on www.Backpage.com: We buy houses 16. Send mailers to properties purchased between 3k-20k within last five years (owner might be wanna-be flipper who did nothing with property) 17. Send mailers to estate Executors/Administrators 18. Send mailers to Estate/Probate Attorneys (consider having my attorney send letter, business cards to Estate attorneys because attorneys always open mail from other attorneys) 19. Bandit signs: We buy houses 20. Big Baller marketing: TV, billboards, radio ads 21. Send mailers to Out of state owner who have owned for more than x years (more than 30 years, so you know its free and clear meaning they will be more flexible with sales price) 22. Send mailers to Building code violators 23. Send mailers to Health code violators 24. Send mailers to people facing foreclosure 25. Purchase leads lists of folks who inherited homes 26. Send mailers to people making double payments (bought a new house, REALLY want to sell old house) 27. Target people who have been transferred (job) and must sell NOW 28. Target people with medical problems / health issues who cannot keep their houses 29. Target who own vacant homes 30. Target people who are having financial chaos of any sort 31. Target people who are 30-60 day late on mortgage lists 32. Send ads/ mailers/business cards to Credit Repair Agencies & Credit Counselors 33. Target HUD/VA Foreclosures 34. Send mailers to people arrested for violent crimes (going to prison for a long time) 35. Send Mailers/ads/business cards to Realtors 36. Send mailers to employees who have been laid off (ie "corporate downsizing" in the news) 37. Networking with other investors, ACRE 38. Locate list of section 8 approved properties—send mailers to the owners 39. Post Newspaper classified ads: We Buys houses 40. Send mailers to Properties with liens: Mechanics Liens, HOA Liens, Tax Liens 41. Contact sales people at new home subdivisions (their clients will want to sell their OLD houses) (or place signs near new home subdivisions that say "Sell Your House Fast" with your phone number....they will want to sell their old house ASAP) 42. Contact mortgage companies; they may know of people wanting to sell their old house/last house 43. Hire bird dogs (sometimes even through craigslist "help wanted" ads) 44. Send mailers to Bankruptcy court listings 45. Send advertisements, business cards to Accountants and CPA Firms: They have clients with financial problems where an investor can be of help. 46. Send ads, mailers, business cards to real estate attorneys 47. Advertise using Apparel with Logos: Hats, T-Shirts, Golf Shirts, 48. Send to anyone getting their car repossessed: If the car is going the house isn't far behind. 49. Send ads, business cards to carpet cleaners: Many of their customers are preparing a house for sale. 50. Consider sending mailers to charitable groups/churches: They frequently receive gifts of real estate, but they'd rather have the cash 51. Send ads, business cards to City & County Inspectors: Code violations and red tags. (If you develop a reputation of buying distressed properties and improving them, you become an asset to the 52. Community) 53. Send ads to Large Employers (HR departments): Let them know you buy properties because if they need to transfer an employee, they don't get stuck carrying the house. This can be good for renting 54. executive properties for short-term transferees, too. 55. Place ads on boards at Nursing & Retirement Homes: Frequently residents need to sell a house. 56. Consider placing Door Hangers on target properties: You can also use pre-printed post-it notes to leave messages at target properties. Be sure to advertise on both sides, you can even sell the back side 57. and recover your advertising cost! 58. Send mailers to addresses having Garage Sales: Are they moving? 59. Send mailers to Hair Salons/Barbers: A social hub! Lots of talking going on during haircuts! 60. Send mailers, ads, business cards to Insurance Brokers: Policy changes from owner occupant to landlord or vacant house coverage. 61. Recruit Mail Carriers to notify you of vacant properties 62. Send mailers to Owner of multiple properties (target them to offload portfolios) 63. Post advertisement in PennySaver type papers: We Buy houses 64. Send mailers to Water, Gas, and electric company shut off lists 65. Or, just buy leads from: a. www.Listsource.com b. www.USLeadsList.com c. www.MelissaData.com d. www.propertyleadsnow.com e. www.foreclosuredata.com f. www.Wehavehomeleads.com
This is great! But where do you find some of this information... i.e. the water gas and electric shutoffs, or mechanic's liens, tax liens, double pmt's?