Outrunning Failures

Unique Real Estate Investing Strategies with Luis Castillo

• Vish Muni • Episode 20

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Today's guest is Luis Castillo.

Luis has over twenty years of experience in Finance and Real Estate. He presently owns “Global Trade and Financing”, “Global Trade Insurance Corp.” “Global Trade Commodities” and  “International Investors Realty”.

Mr. Castillo graduated in Economics in the University of Costa Rica and he has been a member on the board of directors of multiple organizations and chambers of commerce. He is currently a member on the board of directors of Chambers of Commerce from Colombia, Honduras, Nicaragua, Caribbean Trade Center and the Exporters Association of the United States of America, Inc. (Exports-USA).

As an active broker of Export Import Bank of the United Sates and other Export Credit Agencies.  Mr. Castillo’s companies have been the lead, arrange and broker loans in hundreds and millions of dollars in the United States as well as in the Americas, Africa, Asia and the Caribbean.

With the objective to create awareness, Mr. Castillo has been the promoter and speaker at seminars and conferences in many different countries such as Bahamas, Dominican Republic, Colombia,  Panama, Peru, Trinidad and Tobago and in United States of America, Washington DC, New York and Miami, Florida.

Mr. Castillo has been married for 27 years, has two daughters, and lives in Miami, Florida. His native language is Spanish and he speaks fluent English and Portuguese.

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Creator/Main Host: Vish Muni

Show Advisor/Editing: DBT Marketing

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>> Vish:

Well, yet another episode of outrunning failures. Today we have one of my good friend, Luis Castillo. He's not only, a real estate investor, he's got a very interesting background. He's a registered broker and advisory council, and he's a public speaker in Latin America and Caribbean. And he's a, real estate investor. Me and, Louis belong to the same mastermind group, and that's where we started. And we have a lot of common friends, and Louis is packed with full energy, a lot of excitement, and he's extremely positive. And, yes, he's involved in multiple syndications across multiple states. You will definitely not be disappointed listening to Luis today. Allow me to welcome Luis. Luis, could you please tell the audience a little about your background and, what got you started in real estate. Welcome to outrunning failures.

>> Luis Castillo:

Thank you very much, vish. It was a, it's a pleasure always, always learning from you. Remember a long time ago when you were in another property, and I say, hey, can I jump on with you? And you say, yes. Let's go. So, we did great. So I always admire, you. So, yeah, I started with real estate. You know, I was talking with a friend, and when I took the same classes that you mentioned on the same coaching, I never mentioned m what happened back in 1990s. And that's when really when I started real estate. It's like I forgot that by time, the time of my period when I started real estate, I really started in 1990. And after I had my job, and, then I was tired of the, I got, like, allergic of the 1099. So I decided, forget about this, and I got into real estate on mortgages. And that's when I started with the single families. But then I survived the crash, 2008, and then I came back after that with a multifamily and syndications. So I've been, for a while in real estate, even outside United States. I had invested, I invested in Brazil, and I was able to, get three times the value of my investment due to the, currency exchange. So I'll tell you that. Be careful investing outside, because the currency exchange can be the other way around. yes, I've been involved in different businesses. and I guess in every business, you want to grow the business, mature the business, and then right when the businesses stay by itself, automatically, then you move on to create another one, something with the real estate. So I've been doing that for a while.

>> Vish:

Got this. Fantastic. Louis, looks like you have a mixed, background, and also you. Looks like you invested international. That is exciting, because I have not, come across too many investors who had investments in south american countries. Now, that being said, and, tell us a little more about, you did say that you started with, brokerages, not a regular real estate investor, you brokerages, and then you moved into single family, and then you came to multifamily. Now, so you understand the mortgages side of it, you understand the investing point, and looks like you're the numbers guy. And then, So between all these three, what is one challenge you had? I know we all have had multiple challenges, but I just want you to talk about one challenge which you remember, which has, changed the way you invest now, and it has made you a better investor.

>> Luis Castillo:

Right. one of the challenge that made me to think to going to syndication is because I got to a point that doing great in one of my business. And then during COVID if we remember, we had to stay at home. So once you stay at home, you gotta do something new that is gonna go with the passive income. So I said, I gotta learn something new. So this time I wanna go with the big numbers, and I wanna go with teamwork, with more people involved in anything that need to be done. And that's when I make me to, to start doing the research. And I got involved into multifamily, m, and syndication. And the challenge, I guess, that I had when I started with the multifamily was raising money. We always believe, that we have the people waiting for us, waiting for us just to give you the money right away so you can go invest it. And then different schools and different mentality that they teach us somehow, but they're. But in life, you have to, you have. The reason you have to read many books is because you want to get different ideas and put it together. There's a book called, Mastermind. The book with Robert Greene. And that's what he says, that m the mind of the people. We're supposed to get different idea and come up with one different, so we can be like, on a different sandbox. Like the Rockefeller book said that, you have to choose a different sandbox. So there is no competition. Another book said that competition is bad. You have to control. I think, another person will say the same thing. You have to be dominate. So what I decided is that, look, I got to go to another niche, another type of investment. And that's when I decided. But I learned that raising money is one of the weakness that I had, and sometimes we call them weakness. And it's a word that I don't like. It, I would say, is something that I need to learn, something that I need to practice. So I got involved with another coaching that has to do only about raising money. And that coach, gave me so many ideas, which is I'm implementing now. So it's good to have challenge because that gives you incentive to become better on whatever. You have the challenge. So.

>> Vish:

Well, that is, interesting, Luis. So, I mean, you figured out that is, which is a critical component in any syndication or doing anything was capital. I mean, it's a, I call it d and d deals and dollars. Okay? You could have the best deal in the world, but if you don't have dollars, then it is of no use, right. You could have all the dollars, but if you don't have the deal, then it is of no use, right. And so it's good to have a good balance of it. And it looks like you read a lot compared to looking at your background, in your office. There's a lot of books which are stacked up, and I'll come back to that in a minute. So, raising capital. So what is your, go, to thing in raising capital? And why do you like so much raising capital?

>> Luis Castillo:

because it's challenge. But the challenge is known by the fact of raising capital is because how can I do it different from the rest of the people? And what I learned and, someone told me my, lately coaches, they told me that you have to go back of your, how they know you for go back who you are and find those people in that industry. Remember the Rockefeller habit? He says that it talks about the sandbox. You know, when you play, you playing like a kid, you have a sandbox, we go play there. But if you see a lot of kids playing in that sandbox, it's full. So you want to go in a sandbox that is empty so you can dominate the area, right. So the same thing. So how can you do it different from the rest? So you can find a sandbox that is empty so you don't have competition most of the time is where you coming from. Let's say, if you're engineering, go back to engineering club, go back to the, let's say, you repair airplanes. Go back into the class of people who repair airplanes. That's how they know you. That's how they trust you. Normally. What they're telling us, go raise money and you raise money all over and everyone, like anywhere you're going to go. But if you go back where you're coming from, your trust is already there. So that's how I'm developing now, with the international. I have a company which had to do international business with the us government. And that's what I just came back from Chile and I came back this year from Argentina and also Guatemala. And so I was talking with someone today that we're thinking to go Indonesia and Malaysia. So for next year. So we're moving different from the rest of the people. So we don't have to be competing to each other. So that's what I think is that we like about the different challenges, because that if you don't, if you don't think, about why would I do something different from the rest? You have to keep thinking that way. People read, people work, but sometimes they don't have time to think for 1 hour. Why do I do next thing different from the rest? That will be my niche.

>> Vish:

So you got to think outside the sandbox.

>> Luis Castillo:

Yes. You have to find a sandbox that is empty.

>> Vish:

Well, that's, that is so true, Louise. That is, you know, we like to complicate things. We don't like simple things. Right. And as a child in your growing up, you just go play with anybody and everybody. You don't, you're not hesitant, you're not shy, you're not scared, you just do it. But, as we grow up and we tend to have something called fear and we are always worried about, oh, what would people think about me? What will happen? I might fail, I might fall down. And we have too many limitations. Now, what you're telling makes total sense. What you're telling is just be yourself. Just pick, pick things. What you're comfortable in doing and. And do something different. Don't do what everybody is doing. Right. And play on your strengths. So these are the simple things which we tend to ignore. We want to complicate things. We tend to complicate things. Right.

>> Luis Castillo:

Yeah. And also they said that, if you only have, you only have one eye, right. You're the king. And the black in front of the blind people.

>> Vish:

You're the king. Yeah, exactly.

>> Luis Castillo:

You're the king because you're the only one who can see with one eye.

>> Vish:

Right.

>> Luis Castillo:

So what happened is. That's what I was telling to a friend. Yes. We can go to many events. For you, one of the bunch.

>> Vish:

Right.

>> Luis Castillo:

What about you? Start thinking, how can be you the one who produced the event? How can you be the one who be the speaker of the event? Now, people are going to remember you more than just one of the event. So you have to think how to manipulate m. So sometimes I might not be the right person or speaker in United States, but maybe I could be the one in one country. Because guess what? They're looking for you there. They look for american or stuff like this. So you have to think ways how to work it out with your tools and your strength, so you can make it happen, that you can make more impact in front of people.

>> Vish:

Well, that's good to know. You're thinking different, and you're connecting with people worldwide, and you're talking about telling them what you do. That is, That's really interesting. Now tell us a little more about, what is that picture at the back of your, on the wall? It says exim. What is that?

>> Luis Castillo:

Oh, that's my other business. I reach, that's one of the business that I reached the top. so it's a residual income. I only look for business with residual income. That's one of my great achievement. it's like a sba for international. We help export importers, and I reach the top. We're only 40 people. I'm the 10% of the 40 people that are on that organization, which is the United States government. And that's to do with international exporters, importers, international business, stuff like this. So that's, that's, that's my sandbox.

>> Vish:

Well, that's good. That's good. So you are able to connect with a lot of, high net worth people out there. Right then. so I'm sure that complements your syndication business. And there are a lot of, there's an overlap of, ah, a lot of people, and it's not confident, I mean, no conflict of interest, in other words. Right.

>> Luis Castillo:

And no, because, because all of them, listen, they're business owner. If somebody make money, what you want to do, you want to diversify your income, they have 50,000, 100,000, 200,000 million dollars. But one of my clients that I'm working with right now, which is about $3 million that we're doing in that company, he has about six, seven, million dollars in us, on a six 5% interest rate. So you know how much we offer when we do syndication. So obviously, that's a good target, you see? So, and we have to see the financial statements so we know who they are. So that's what I'm saying at the beginning. Go back who you are, and that's where you're going to find your niche.

>> Vish:

that's interesting. That's, good to know, Louis. So now tell us a little more about, what gets you excited in the morning when you get up, what gets you to get out of bed and be energetic all day long. I know there are a lot of people counting on you. Oh, if Lewis is so energetic, why can't I be? And, he's so energetic, he's so dynamic. So you wouldn't know. Those people may or may not tell you any on any given day, but, you know who they are. But, so how do you maintain your energy excitement all day long?

>> Luis Castillo:

I give you an analogy. people that do something wrong when they plan their vacation, and, this is the same thing for your business. People plan, they like to plan the vacation like two, three weeks in advance. And I always said, why don't you plan the vacation six months, a year in advance of, so you have more time, excited, waiting for that vacation. The same thing in life. If you have goals that you know you're going to achieve because they're bigger than you, and, something big, you can make it happen. You have reason to get up, especially when you do something that goes to their family.

>> Vish:

That's interesting.

>> Luis Castillo:

So I'll give you an idea. I'll give you an example. My, daughter is talking with my wife now over there, and we're Latino, remember? So I give you an idea. The other company, because my goal was to find more investors. So my other company is creating a lot of movement right now. So my goal is put them together, both business, right? So now I'm, creating how to develop the other company on the purpose to create more investors, you see? So that's the whole idea about reason to get up, because there is something bigger than me that sometimes I don't even know if I want to achieve it. But guess what? We're going to make it happen. I mean, it's big. While I'm doing it, it is very big, and I'm working on the compensation plan. Working. So there is a book that it tells you there are three kind of people in your mind. The technical, the management, and the entrepreneur. The technical is the doer, the management is the one who organized, and the entrepreneur is the one who always dreaming about something big, you have to wake up that personality in your mind. You have to stop and say, what I'm going to do in the future. So it's going to happen in five years and three years. And you have to keep that in your mind. That gonna wake up in the morning, and that's what keep me awake.

>> Vish:

That is good. That's good, Luis. That's good. You've broken it down to three types of people, technical, management and entrepreneurs. So. So do you think one person can.

>> Luis Castillo:

Have all these three or, all of them? We have those three. All of them. We have it. It's only that one emphasized more than another one. And I give you, I believe it's a book. One to zero is the one that to say about that. and, I'll give you an example, someone who wants to be self employed. And right now he said, okay, I want to start working by myself. Why people fail and most of the small business, because they never mature to the second stage and to the third stage. The first stage is that, I got to do everything. Now they have a company, but they're working themselves all the time. They don't delegate, so they don't know how to manage that. So they stay. So now they created a new job. They're not self employed. It's a new job they had created because they're not managing anymore. They managing themselves. It's only one person on the company. What they have to do is to, start getting, more people, more larger team, more management, and also bring the entrepreneur mentality, which is to bring what I'm going to be in five years. Why do I need to, maybe I need to move, franchise many different stores and start dreaming large. Sometimes having too much dream is too bad. You have to take action. So the technical part of your mentality has to get involved with the entrepreneur one. So the ball has to work. You have to keep that balance. And that's the difference with, why companies, they don't grow that much.

>> Vish:

So there are a couple of things. What I could, analyze is, number one, is, we got to let go control. We all, we need to learn how to delegate. I mean, most of us would think that nobody can do the job as, as good as what I do. So that is the first thing. And, we are always doubting other people. So we'll have to stop, doing micromanagement, because that happened to me in real life. When I bought my first duplex, this was, probably 2009, and when I bought my first duplex, and I was, extremely, careful about the property, and I was calling the property manager five times a day, and, and one day, the property manager got, got upset with me, and on the text message, he sent me a thing. I quit. And I've given your phone number and email and contact details to the tenants. A good luck. And he walked. So it's like you're in the middle of the ocean, and the ship captain says, thank you, guys. Enjoy the ride. I'm going. And he jumps in and jumps into the water, and he goes away, or the helicopter picks him up. And if you want to come back to shore, you learn how to navigate the boat or, swim back. It's on you now. So, I mean, that is a typical example of being, micromanage too much and not, not letting people do their job. So I learned that day that if you, you need to let go things, you need to trust in people and let them do their job. Don't get in their way of doing the job.

>> Luis Castillo:

So, two more books I mentioned to you that's going to talk about that miracle morning and clockwork.

>> Vish:

What is the other one? Miracle morning. And what's the next?

>> Luis Castillo:

Clockwork. Clockwork and miracle morning. Miracle morning. And, what they said is that, let's say Bill Gates. Bill Gates right now is a 80% thinking, but it's 2% doer.

>> Vish:

Right.

>> Luis Castillo:

So the beginning, we are 100% doer. So you have to stop the doer. You have to go step by step to be less doer, a more thinker.

>> Vish:

Right.

>> Luis Castillo:

Because that's the only way you're going to grow.

>> Vish:

Right?

>> Luis Castillo:

To give you an idea. Yeah.

>> Vish:

Yeah. So that's, that's, that's good to know. So, so you are, you have done a lot of, syndications. Now tell me, what role do you play in a syndication? You're the numbers guy, and you also raise capital.

>> Luis Castillo:

I wanted to play in all of them, and I play in all of them. and finding the property, do the underwriting, do the assets management, which is. I just came back from, from Texas. you saw me there, and I even have a little coffee because I, we went into 98 units, inside the units. you know, we met a lot of people, which is c class, you can imagine. So I play all the role because I believe if you gonna advise an investor to invest in whatever you are acquiring, you have to understand all the roles, even though if you're not good at all of them, maybe you're good at one or two, but you have, in my mentality, you have to learn how the other role works, even if you don't like it sometimes. We do things that we don't like, but that is step to go to the next step. And, so I play all the roles, even asset management. Believe me, I don't like asset management, but I have to learn that.

>> Vish:

What's your primary role in a deal? If I were to say, luis, I want you in this deal, but I don't know where to fit you, but what would you say?

>> Luis Castillo:

Due diligence is number one.

>> Vish:

Okay.

>> Luis Castillo:

Underwriting, I believe I have a good. Different coaches that they help me a lot. And my third one would be the, one that I'm still learning, of course, is, raising money. Course. And then you have the asset management on that order.

>> Vish:

Okay.

>> Luis Castillo:

Yeah.

>> Vish:

Well, that's because.

>> Luis Castillo:

And the reason, because back to who you are. Look at your background in that other business that I have, I had to do many due diligence. I have to find, why not this deal? No asking why this deal. I have to look for why not the deal? What is, Find what is wrong, know, find what is right, because you find what is right. You get in love, and the worst thing you can do in investment is getting in love with the investment. But you don't want to do that. You want to have always that counterpart. Somebody will help you also, because sometimes that's one of the big mistake that I see. And many people that come to me with some deals, they're in love with the deal. You cannot be in love with the deal.

>> Vish:

You're running a business.

>> Luis Castillo:

You have to let it go if you have to go, just to use the word next.

>> Vish:

Right. So fall in love with the numbers.

>> Luis Castillo:

Yeah. The number is the only thing, right? Yes. What is my rate of return? That's what. That's what you got to get in love with.

>> Vish:

So do you invest all over the country or just in Texas?

>> Luis Castillo:

No, the one I invested was in Brazil.

>> Vish:

Okay.

>> Luis Castillo:

It was a really. Was a partner who pushed me to invest there. And, believe it or not, it was a castle. It was a project. It was a multifamily, trend, but also, has to do with a lot of research, which was a medieval castle in Petropolis. That was, many years ago. Yeah. And also invested in back before 2008. Crash. That's something else. it's not the same thing. To read about a crash was to leave a crash. That's different. Before the crash, I did land development in North Carolina and. And also did a commercial, shopping mall in South Carolina. I did that also. And I did those. Those were the large. The large one. Then the other ones that they were small one, of course. So what I got kind of a, Be careful. Slow down. During. After the. After the crash. It can scare anybody, believe me. I'm glad that it was not as bad that I thought.

>> Vish:

So what did you do in commercial? You told you talking about strip mall. Right. And, retail. Shopping mall. So what?

>> Luis Castillo:

Yeah, it was a shopping mall in South Carolina.

>> Vish:

Right. So that is. That's good. And then land development. What was your role?

>> Luis Castillo:

Yeah, the role on that was capture investors. I don't know if you know, and the gulf. Many of those land, the way that it was created is that you buy, like, ten acres. I mean, I, just say ten acres an acre. Ten acres, obviously is more. And then you subdivide those acre and you sell it by lots. Right. And then you create the road and anything else. But that's like at, the first investment. Then it comes to the second investment and the next investor by the other investor. And then that's how many cities happen in south Florida. So we did the same thing. And, Proust Pine, North Carolina.

>> Vish:

All right. That's good.

>> Luis Castillo:

We did the development, the roads. yeah. So it was very interesting time.

>> Vish:

You have a very interesting background. And, so as far as I thought, you're only a real estate investor. But, you're like an onion. The more you peel, the more stronger you get.

>> Luis Castillo:

Because business is business. I mean, I'll give you another. Another failure that I had. That was a failure, this one. And I know you told me, tell me about your failure. Because, I mean, to succeed in life, you have to multiply your failure. I mean, that's bottom line. So I had a. I had a client. I knew the numbers because I did the financing for him here in the United States. A restaurant right here in Cora Gables. And he said, I want to open one in Aventura. And then I said, okay, good. So I become an investor. And I was the owner of a client with two other individual. And that was in Loman's Plaza. And Lomas Plaza was next to Aventura mall. It went very well for three years. We knew there's so many things happening in the area. And, we have a movie theaters there. Then they changed the movie theater to the Aventura mall. Guess with the traffic, what happened? It went down.

>> Vish:

It went down. Yeah.

>> Luis Castillo:

So we have to solve it. Only lost$30,000. So it's no big deal.

>> Vish:

But the key is, that's a lesson learned. What could go wrong? But that's the feedback.

>> Luis Castillo:

Yeah.

>> Vish:

Right. So that is the feedback you got. Because I wouldn't call them failures. I would call it feedback. Because it's like going to a gym. You can't lift 100 pounds on the day one if you go to gym. But, after six months, you will be able to lift 100 pounds because, consistent failure and, being disciplined. And you're getting back to what failed you the first place.

>> Luis Castillo:

Napoleon Hill says, and many in all this book, Napoleon Hill says that every adversity bring a seed or equal or greater benefit. So you have to look, what is the benefit that this adversity left to me so I can learn? And when you see that every adversity in life, it becomes something good that happened to you because something that you learn, what happened with many people, they don't do that, and then they feel bad. So adversity are good. I mean, you can come ahead with them.

>> Vish:

Right, right. So what is your family like? Because, how many kids you have.

>> Luis Castillo:

And how many married with the same one? One for 45 years.

>> Vish:

Well, congratulations.

>> Luis Castillo:

It's gonna be in February. 45 years with her.

>> Vish:

I,

>> Luis Castillo:

Uh-huh. Yeah. I have two daughters. One, she's an attorney. she's, 33. And, Veronica, that is the younger one, is gonna be 27. And I have two grandson.

>> Vish:

Oh, wow. Okay.

>> Luis Castillo:

Yeah. So we're gonna go September to, their, her birthday. His birthday. And so we go often to see our. Our grandsons. they're in Pennsylvania. Altoona. Yeah.

>> Vish:

You have a full family. That is good. So.

>> Luis Castillo:

Well, here in their house, believe it or not, it's only my wife and, myself even. No dog, no cat, no bird, no anything. The only birds that I have pets, they're outside my backyard, which is. I, feed them.

>> Vish:

Well, that is good. So, I mean, at least you have some family. You go to see them every now and then, a special occasion.

>> Luis Castillo:

And you said something that what keep you going in life, is the legacy you want to leave through kids. I don't want to see my fortune. I mean, you have to do a trust. That's a very important document. because many law can change in the future. And, the trust is a way that you can control that. Your legacy can stay longer. And that's very important. Use a will, because you can tell. You can tell whatever you leave behind. Hey, you can only cash 10% every year. 10% every year. So, you know, you're gonna last at least 1020 years. Your kids gonna hate you.

>> Vish:

10% better be big.

>> Luis Castillo:

Yeah. At least, well, my 10% is gonna be more than cost of living for a person, so they should be okay with that.

>> Vish:

Yeah, that's.

>> Luis Castillo:

In addition, whatever they making. I mean, you need all those multi, billionaires. They're giving 90% of their fortune, ah, to the world, and they're keeping only 10%, so.

>> Vish:

Well, from the conversation, I get to understand that you like books, you like, traveling, and, you like spending time with family, and you're not, scared of taking risks, and you're not scared of, overcoming failures. Well, that, with that being said, what. What is the next in line? what are you planning to, accomplish by the end of the year in.

>> Luis Castillo:

That's something. It's interesting that, my challenge was learn raising money. So I got involved with this coaching, and I got some session, and he said, go back to your growth. Right? So what I did is say, go back to your other business where you had the trust. I went back to the other business that made me go back to the other business. And how can I make the business grow faster so I can be more in front of business? My other business has to do that. I have to deal with a lot of financial statements. So, financial statement means that you have accountants, you have cpas. So I said, cpas knows a lot of people, that they have money to invest. All about money.

>> Vish:

Yeah.

>> Luis Castillo:

So I said, we got to go after the CPA. So I said, look, how can I go to too many people? I already tried in one country. I had an event with the US embassy, and the whole thing, something big. And I told, my va, and I told it, make this phone call and tell them this, this, this. It didn't work out because all the CPA, they didn't pay attention. They're too busy, I guess. They're very nerd. They're very green. So they're not, they're not thinking that way. So I said, okay, that didn't work. Okay, it doesn't work if I make a call, it doesn't work if I go visit them. Oh, my God, how does it work? This has to work some other way. So I said, you know what? Contact. To contact, I have to. I have to create a net of people. So how can I do a net? Hey, you know what? I'm. There's a few companies that they have created a net with the same product that I have in my other business. So why don't create a franchise over franchise of different people? So, because we're some Florida and Florida and we connected with Latin America and Caribbean. So why don't we create the net here. And all these people, they're going to contact other people with this business. But that business will take me to the CPA. So you see, sometimes one person doesn't take you to what you want, but sometimes that person will connect you with another person that has what you want. So that's what I'm trying to look. So I already did the compensation plan. I already spoke with two software company. So I'm working on something that is going to be like a net of different people that they're going to make money, which is something big that I'm working on now.

>> Vish:

So you gotta attract rather than trying to run after them, right?

>> Luis Castillo:

Yeah. attract people. So, so those people, they make money, but they be connectors to other connectors that they're gonna have cpas in your, they have to have CPA because if it's involved in every business or accountant and those, those are the one we're looking at there and we'll see how it works.

>> Vish:

Well that is, that is fantastic.

>> Luis Castillo:

That would be international. Obviously going to be domestic, but it's also going to be international.

>> Vish:

So that being said, if I want to go out and raise capital for my next deal, or contribute some money to the deal, what is one thing you want? what is one thing you recommend?

>> Luis Castillo:

First of all, my recommendation is not the best one. Because remember I said that I'm good at due diligence about looking at the property. Then I said racing. So it's not the first one. The process of learning. So my recommendation will not be the best advice. So I don't try to, I don't want to mislead saying that I'm m good at raising capital. No. Your first thing in life, you have to recognize where you weakness because otherwise you cannot correct it. Right? What I, what I said, if I want to raise money, you have, you have to do. Somebody asked me the same question today. And the first thing you have to separate. And this one, that was this word that was saying in one of the seminar that I went, you have to separate your list. Friends, family and fools. The three f. Okay, who are the friend? Who are the family was the fool. So you have to separate them. So you have to call them, just tell them, hey, if I have this property this way, would you be investing or not? Okay, no. Good. So you shorten your list. So when the next. This is my recommendation again. And it worked out at the last moment of the races that I did. Because I learned that the way that was taught, it was not working for me. So find a friend like Vish and tell. Listen, vish, what property do you have that I can help you to raise money even if you don't. Even if I don't make money? Even if I don't make money. Remember that I told you that long time ago. Can I raise the money for your property? Many years ago?

>> Vish:

Value. Give value first.

>> Luis Castillo:

Before you ask, I don't care how much you pay me, okay, whatever it is. But that give you that give you a. An option that when you want to talk to your prospect, you're not telling him. If you tell him I have a property, guess two things gonna happen. First thing's gonna happen is this. That he see you serious. It's not like Oh, I'm thinking to buy a property. I'm working. No, no, no. I have a property right now. Can you invest? You see, that's one. The second one. What happened when you come back three months later with your own property, raising money, you're going back to the same person and you're going to tell them the same thing. What the other person is going to think. Oh, now, Louisa, the second property and what people likes most of the time. No. Be the first one. So you're going to burn the first one. Tell. Listen, can I raise money for your property You give me the permission, I'll be helping you raise money. And now you go tell them, everyone. You might have somebody say yes. Let's go. Good. Then you got something done at least. Right? So that will be my recommendation to take the action on, doing it right now. Know if I have a property.

>> Vish:

Right. So that's good then. That's a lot of speaking from experience. And that's good to know that. And with that being said, so what are the deals you're working on currently? Right now?

>> Luis Castillo:

We had a. We had one in North Florida. it was trying not to go with large amount of units. And it didn't work out. We made an offer. We call them like a verbal office. You know what you're. It was, it was, ah, in North Florida, it was about $18 million they were asking. So our numbers came up to about twelve. And we, we have to tell them verbally where we're standing and didn't work out. So there are a couple of other ones. But the places I'm looking for is North Carolina, South Carolina, Georgia, Tennessee, and, north Florida. Those are the places. But we have a few that we did verbal offer because we were so far away from the asking price. But at least, like I tell people, at least you get in relation with the broker, right? At least you're not. You're not. You did not. Maybe you did not succeed to buy that property, but you succeed to speak on a real terms with a person that can bring you a deal later. You earned that.

>> Vish:

That's interesting, Louis. So you feel, the key to anything is, having strong relationships.

>> Luis Castillo:

Definitely.

>> Vish:

Right.

>> Luis Castillo:

one of the property that we have, believe it or not, it came back from a property manager, recommended us to speak with a broker that had a property, that it was going to come out of the market soon as a manager. So that's, you want to create relation.

>> Vish:

That's a way to get deals, off market deals. You, like what you're telling. Pick the sandbox. Be careful in which sandbox you pick and where you pay.

>> Luis Castillo:

Do what. Everybody goes to the left, you go to the right. I have to go to the right.

>> Vish:

But, you know, that comes with a lot of, experience and challenges and your, your attitude. So, because we all are used to, having that community, of people, we feel that we are left out, we are lonely, and what if, what if tons of left out. So that is a good thing. I'll probably, I'll think about you the next time I'm going to do that. I'm going to try and implement that. Pick a different sandbox. So, Louis, it was a pleasure having you as a guest on outrunning failures. Remember, your dedication to whatever you're doing, fuels our energy to overcoming obstacles together. All right, thank you, Luis, once again for being a, great guest on outrunning failures.

>> Luis Castillo:

Thank you very much, Vish. You know you're the best. Always looking for you.

>> Vish:

Thank you. Thank you, my friend.