BiggerPockets Real Estate Podcast

BiggerPockets Podcast 222: Lessons Learned from 40+ Years as a Real Estate Investor with Jay Hinrichs

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Success leaves clues! Rather than trying to figure it all out on your own, why not listen to someone who has been involved with nearly every aspect of real estate for decades? On today’s episode of The BiggerPockets Podcast, we sit down with Jay Hinrichs, an investor and hard money lender from Oregon, to learn how he has navigated the real estate market for more than 40 years—and how you can grow your own business from his wisdom!

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This Show Sponsored By

patchoflandWe just wanted to give a shout out to our podcast sponsor on today’s show: Patch of Land. Patch of Land is a Peer-to-Real-Estate (“P2RE”) lending marketplace that matches accredited and institutional investors seeking high-yield, short-term, asset-collateralized investments to borrowers seeking more timely and consistent sources of funding for rehabbing properties across America.

Learn more by visiting Patch of Land!

Fire Round Sponsor

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In This Episode We Cover:

  • How Jay Hinrichs started when he was 18
  • A discussion on whether you should get a license or not
  • His first houses in the Bay area
  • Why agents are not investing
  • What a hard money lender is
  • How to be approved by hard money lender
  • How Jay became the largest hard money lender in his area
  • Why you should consider the BRRRR strategy (and how he’s been doing it for years)
  • How to do something nice for somebody (through BiggerPockets)
  • Why you should go ask in the Forums
  • Tips for finding the right partners
  • How to get the “lion’s share
  • The most common question in the Forums
  • And SO much more!

Links from the Show

Books Mentioned in this Show

Tweetable Topics:

  • “When you’re starting out and you don’t have the money, you need to honor the money.” (Tweet This!)
  • “Any investor that I bring in a deal always makes more money than I do.” (Tweet This!)
  • “I will never retire. I’ll be doing this until I’m not functional. I love what I do.” (Tweet This!)
  • “Every market is different. You have to play to the market.” (Tweet This!)

Connect with Jay

Hoarder House

Show Preview

Real strategies that work for real people seeking to build wealth through real estate investments. Co-hosted by Brandon Turner and David Greene, this podcast provides actionable advice from investors and other real estate professionals, who chat about failures, successes, motivations, and lessons learned.

    Randy E.
    Replied over 2 years ago
    These podcast could be very helpful providing you address the nuts-and-bolts of the topic rather than all the fluff. I love listening via this format but don’t have time – or patience – to sit through the, “how was your day” dribble. I stopped listening to Biggerpockets podcasts over a year ago for this very reason.
    Richard Ball Real Estate Agent from Port Huron, Michigan
    Replied over 2 years ago
    And yet here you are on biggerpockets.com/podcast. Skip over the intro or play it at 1.5 speed. People complain about such small things, I wonder how they ever make it in life. Josh and Brandon just know for every 1 critic you have 100 fans. Thank you for not running a mundane podcast 🙂
    Randy E.
    Replied over 2 years ago
    Brilliant and witty retort, Richard. I’ll consider it a reflection of your youth and inexperience. My comment was meant as constructive criticism. Not commenting would be an indication that I no longer care about the podcasts – hence the suggestion.
    Tom Chen Real Estate Investor from Valley Stream, NY
    Replied over 2 years ago
    It’s 5 minutes…get over it. Please just take that as constructive criticism.
    Derrick Ward Investor from Raleigh, North Carolina
    Replied over 2 years ago
    I agree with Richard Bull and Tom Chen.
    Chad Carson Investor from Clemson, SC
    Replied over 2 years ago
    I respectfully disagree about what is helpful in a podcast. Can you imagine going into the nuts and bolts of every technique Jay discussed on this one episode? We would have to listen for 5 hours even at 1.5 speed! The value I get from many BP podcasts, including Jay’s episode, is to hear how the person’s mind works, what topics come up again and again (hence are important), and how the arc of their business and career seem to be going. The nuts and bolts are then something to research after the show with an article, a book, or discussions on the forums. Too many details in a podcast would ruin the glow of a very interesting conversation. In other words, keep rolling Josh and Brandon:)
    Adam Briceland Real Estate Investor from Milwaukee, Wisconsin
    Replied over 1 year ago
    Then go listen to Grant Cardone. If you don’t like two guys who enjoy what they are doing and do it at their pace that’s fine. But don’t complain about it when it’s a free service with lots of infromation.
    Randy E.
    Replied over 1 year ago
    I stopped listening the day I posted my recommendation, so everyone’s happy on my end.
    Richard Ball Real Estate Agent from Port Huron, Michigan
    Replied over 2 years ago
    Great podcast and thank you for affirming my point that paid off rentals are the goal. The goal should be 10 paid off rentals rather then 20 leveraged properties. The cash flow should be the same or better with the paid off rentals and you have half the tenant issues and everything else that goes along with rentals. Also how can we get more details on the product you mentioned at the end?
    David Krulac from Mechanicsburg, Pennsylvania
    Replied over 2 years ago
    Great presentation, Jay. Your contributions are truly appreciated. David Krulac
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    About time Jay 🙂
    John Thedford Hard Money Lender, Broker Associate, Investor from Naples, Florida
    Replied over 2 years ago
    GREAT SHOW JAY! I always appreciate your willingness to help all and you have been a great asset to the community.
    Joel Owens Commercial NNN Real Estate Broker & Syndicator from Canton, GA
    Replied over 2 years ago
    Good one Jay!
    Amit M. Rental Property Investor from San Francisco, CA
    Replied over 2 years ago
    ^ ?? ^ is supposed to be a thumbs up emoticon :~)
    Odie Ayaga Specialist from Delran, NJ
    Replied over 2 years ago
    Was just wondering if we’d ever hear the legendary Mr Hinrichs on the podcast! When I saw the guest my eyes lit up and I literally said “Yeeeees!” out loud. The show did not disappoint. Glad you made it on Jay! Thanks for being such an enduring and contributing member of the community!
    Justin Paddock from Elk Grove, CA
    Replied over 2 years ago
    I enjoyed the podcast. I assume Mr. Hinrichs is being inundated with friend requests so I don’t want to bother him with that but is there a way to hear about his new “product” referenced in the “famous four” portion of the show? Given that I have a serious interest in real estate but need to wait till I am more capital rich I would be very interested in this. Thank you in advance.
    Steve B. Investor from Centralia, IL
    Replied over 2 years ago
    Great show, I was also hoping there would be a link to this new product discussed.
    Carolyn Morales Flipper/Rehabber from Jacksonville, FL
    Replied over 2 years ago
    Jay, You mentioned you bought land lots at tax sales and such then owner financed them when you sold. Did you have to file quiet title action on all of the tax deed land lots before you sold? We are in process of a quiet title action on a triplex lot in a great spot. I have owner financed land before, but never a tax deed lot . This would be our first tax deed purchase. Thanks always for your insight and glad to hear you on the podcast .
    Carolyn Morales Flipper/Rehabber from Jacksonville, FL
    Replied over 2 years ago
    Jay Hinrichs, I forgot to tag you in my question above. Thanks!
    Nathan G. from Cody, WY
    Replied over 2 years ago
    Good show. I like that Jay is willing to admit his failings as much as his successes. It’s a little surprising to hear his “retirement” was wiped out from the market crash and he’s just now back to where he was pre-crash. That should give newer investors pause when they talk about 100% financing, buying or rehabbing with credit card debt, maximum leverage, etc.
    Gene Hacker Investor and Home Inspector from Lake Isabella, California
    Replied over 2 years ago
    Great show! I love the interviews from the truly experienced investors who have survived in the industry and the last crash. So much wisdom shared.
    Dan Cotter Developer from Atlanta, GA
    Replied over 2 years ago
    Good interview pick, guys! And Jay, thanks for being such a fixture on the forums. I don’t post much, but just about every time I search for a topic, you’re in the response thread. This was mind expanding. You’ve taken a lot of creative approaches over the years!
    Chad Carson Investor from Clemson, SC
    Replied over 2 years ago
    Loved this episode! Classic! We rarely get the perspective of 40 years yet that history in the business is so valuable to learn from. Jay is a walking, breathing lesson for those with fewer years in the biz and he just unpacked a lot of gems in this episode. Thanks to all three of you!