All Forum Posts by: Jay Hinrichs

this deal has JV written all over it. !!

how do you develop 24 lots for 40 to 60k total.. that seems like a disconnect.. It cost us 35 to 40k PER lot just to develop them to shovel ready status.  In many markets like your talking about its no feasible to create new lots as existing lots cost less than replacement costs.

can you elaborate on the infrastructure aspect of the deal.

@Steve Trotta 

  I would think you want your investors lined up prior to offering.. experience helps along with putting some skin in the game

@Bryan R. 

  that's good information.. It will be interesting to see how each of these companies do over the course of the next 5 years.. and how they did compared to region they invested in. Theres no doubt the first ones into PHX Socal and Vegas have done very well on apprceation.

@Dave Bicket 

  not an expert here but I think since the deal is done, and you have received monies your ability to 1031 is done as well..

@Dave Foster 

But remember what Mark Twain said - ""No man's life, liberty, or property are safe while the legislature is in session"

@Bryan R. 

 40 to 50 a month that is massive buying were they set up at the Friday Foreclosure auctions or just buying off of Mls Like 4Rents did here in the PDX market... I will check with my broker buddy who old a bunch of those .. and see if they are still just holding.. I know in the PDX market with our less than 1% vacancy rate and rents that rose 20% in 3 years they are probably pretty pleased with what they have.

@Dave Foster 

  Thanks Dave.... I sold a piece of property to Starker I had a little odd ball piece and they wanted to square up one of their sections.. very well to do Oregon timber family.

The timber deed 1031 is still alive and well just there is very few folks that are aware of it outside of the industry and the power it has for land owners who have sat on timber holdings for years have no basis in the stand of trees and pay massive tax when they finally log it.  The 1031 allow them to cut the tree's roll all that tax deffered money into an income producing property.. it was sweet.. but hard to convince old farmers who are so afraid of paying tax in the first place.. or live in their old shacks and are sitting on a few million dollars of timber and do nothing with.. it.. REmainder trusts also work well for timber

@Brian Ellis 

  I would sell it in a heartbeat... bird in the hand and all of that.. deals are like street cars one on every corner especially out in the mid west...  You may want to counter a little bit

@Chris Clothier 

  I look at the hedge fund phenom from a RE brokers standpoint... Just like really good brokers nationwide  when they recognized that banks were going to be over their heads and short sales were going to be half or more of the sales... The really good agents hopped on planes knocked on banks doors and asset manager doors.. Sold their services to the institution and next thing you know you have a very few brokers in a market getting all the distressed bank inventory  ( we all know those brokers)... Well the opportunity is the same in reverse with the Hedge funds or other smaller investors cobbling a few million together or maybe a 5 mil PPM to buy distressed assets.. the local guy has an opp to find those players and get in front of them.. It could mean flying to their office and making a personal presentation.. and then getting in on the pipeline.  If you can't beat em join em.. or you one can just sit on the side line and whine that there are no deals because the big players are dominating the market... !