All Forum Posts by: Jay Hinrichs

Have you purchased the property already?
How much "skin in the game" do you have?

YUp and I became proud owner of about 250 sfr's between 09 and 2011 in 5 states from land lords I lent money to and they failed..And I did not give anyone of them any money I either got deed in lu or I had to foreclose out the second lien position or contractor liens. The idea that Any real estate that has normal cash flow type debt I E 70% LTV loan is immune from owner being wiped out is simply NOT TRUE.. Only folks that I saw make it through the melt down were very well position investors ( many of mine have or had zero debt) or massive equity and RESERVES.. this does not describe the average SFR investor especially those starting out.. those starting out with maybe 50k down and 50 in reserves can and do get wiped out quite frequently.

@Bryn Kaufman this is one of the more transparent posts I've seen in a while.  I commend you for acknowledging the things you could have done better.  That is something all of us need to do more often in our investing journey is take ownership of our mistakes, but most importantly to learn from our mistakes to become better investors in the future.  Anyone who is successful has their scars from past investments gone wrong.  I know I most certainly do, and I have also lost all my money in syndications that went belly up, even after years of receiving interest payments as if all was well.

I think the big take away from this is that investors need to actually understand the risk of syndications, which absolutely is the potential to lose all your capital. IMO, the attractive IRR potential is not worth the risk of tying up your money for years with no access and potential to lose some or all of your capital invested. That is why I always recommend buying physical real estate that you 100% own and control. Yes, all forms of real estate can come with their own challenges and you can lose money on houses as well, but at least you have 100% control and it's very difficult to lose all of your money. Generally speaking with a typical rental home, if you hold it long enough, you usually come out okay even if you have some turbulence with tenants or repairs in the short term. As one of my mentors used to say, time heals all wounds when you buy and hold a rental property in a good market.

@James Wise thank you for pointing out how we deal with issues that arise, which is head on and public. This is investing and things don't always go according to plan. It would be foolish to think it does, but whenever an issue arises we do our best to help navigate the situation with the client (as long as they are professional and reasonable). I do think we have a good batting average for success with our investors. Mainly because of what I mentioned earlier, investing in a new construction SFR in a good market. It may not be the sexiest form of investing and it may not be 100% passive, but it's proven way to build wealth for over a century!

at least with food stamps that worm is turning. its a sad commentary to their lifestyles its just systemic and what they know .. And then their kids learn the same routine and just a never ending cycle. I had over 100 sfr's in Jackson MS and 98 were section 8 single mothers multiple baby daddys etc etc.. your right though some were neat and clean and respectful etc.. But that just is not the majority and those that preach get rich on Section 8 thats a pretty misleading thought process.. I no longer have tons of SFR rentals but the ones I do and with all the rules the one rule that still applys is you can ( at least out this way) require a certain fico score and I make mine 700 plus.. might take a month or two to find that tenant who qualifies but then my experience is they are of homeowner quality. never miss dont tear up the house not calling all the time.. We dont carry any debt though on our SFRs so its easy for us to let one till i get the right tenant.. But I can see spread sheet return junkies freaking out about two months of non payments LOL

 Its the age old Motto  NEXT .  BP is unforgiving for those in the RE space using it to advertise their product.. As we know not every deal works  not every rental works not every section 8 tenant pays and keeps house great.. etc etc.. There are a few on here that do a good job interacting with those that come to bP to complain.. IE  Chris Clothier.. Zach at RTR  and a few others .. but generally speaking others either wont engage on BP when anything negative comes up like it appears is happening with most all the syndicators that were on BP raising money for their deals. We dont see Norada post anymore  Open door I have not seen anything Ashcroft nothing  lane Kawaka I do still see post but mainly new deals  I dont see Ask Ben but I dont know how his deals turned out I suspect if they were great we would hear about it..etc etc