CASTLE ARCH

REAL ESTATE INVESTMENT COMPANY

Distressed PropertyInvesting

A user guide to understanding the opportunity underneath the foreclosure crisis in America

A foreclosure and REO snapshot forfinancial advisors and their clients

TABLE OF CONTENTS

Distressed Real Estate Primer

1. Introduction2. Real Estate Value3. The Distressed Real Estate Market4. The Opportunity in Distressed Real Estate

Finding

5.StartWithFinancingandaProfle

6. Which Rocks to Look Under

Due Diligence

7. Inspection8. Professional Inspector?9. Rehab Estimates10. Occupancy11. Appraisal/Valuation12. Valuing Income Property

Contract and Close

13. How Much to Offer?14. Liens15. Taxes16. Creating a Holding Company17. Financing18. Negotiating With the Seller and Submitting an Offer 19. The REPC20. Closing, Title and Escrow133710111919202122243133353536373940

Page

Rehabilitation

21. Finding a Contractor 22. What You Should or Shouldn’t Do Yourself

Exit

23. Lease to Own (Seller Financing)24. Owner Occupancy25. Sale26. Income Property

ConclusionAppendix

Bank and Lender REO ResourcesGovernment WebsitesAdditional Finding ResourcesAsset Management CompaniesSample Home Inspection ChecklistSample REPC (State of Utah)Sample Seller’s Disclosure Form (State of Indiana)FTC Real Estate Glossary444748484950IIVVIIVIVIIIXXVIXVIII