All Forum Posts by: Jay Hinrichs

@Taylor Shields 

  good thought on being able to match any offer to buy the note in the secondary market.

WE had a substantial ( seven figure) LOC with a bank that got taken over and were able to step in and buy our own debt at a big discount... About the only thing good that happened to us during the GFC

@Jeff Sims 

  I drive a Hyundai and my wife has an accord.. they are 1 year old.. we only keep cars 3 years then trade them in.. I don't have time to do anything other than change the oil so I don't want a vehicle that has to go to the shop or if it does is not under full warranty. And I never want to be stranded anywhere or anytime...

That's cool is that the new lexus?

@Marvin Brannaka 

  these strategies in my mind are regional... might work were you have a plethora of homes that need major work.. on the west coast your going to play heck finding anyone who will give you an option.. they will want serious EM and a close in 30 days or less. and many times will not allow assignments at all. If they are represented by realtors here in our market ... To many realtors have been burned by the no money wholesale gig.

However in your market I can see that working all day long given the amount of inventory you have to work with.

@Roy N. 

one of the down falls of the US market was the cash out refi... Where the banks counted on investors to put money into reserves and or buy other RE.. well they bought vacations , cars jet ski's boats and who knows what other kind of consumables.. So when the GFC hit there were no reserves to run the railroad and the investors tanked... Saw it happen hundreds of times in my HML days when I would put investor into title and get paid off by a cash out refi.... Investor in the SFR space would get 5 to 10k back per home in this scenario.. and of course its tax free so they ran out and spent it. ( at least most did) that was bad debt.

Were your at in age and business cycle also has an impact on your debt tolerance. Along with your culture you were raised in.  

@J Scott 

  your going to get flooded with requests for money now  J.....  LOL.

@Bill Gulley 

 from my limited experience in the lending world I think there are 12 states that make the stricter interp  about the 1 to 4 unit.. One just needs to check with their state..

In practice MLO's will have a very hard time doing these deals, at least the one's I know there is not enough money in it for them and a ton of risk.  I could see the day were some one makes a specialty out of it and corners the market on seller carry back.. Although with each state pretty much having an exemption for one time or doing just a few a year. Its probably a moot point for most sellers.

@Account Closed 

  I still use a stick for accuracy.. just have to make sure you use Jet A when needed or 100LL when appropriate wrong juice can ruin your day

Just cruising my Cirrus owner and pilots association website  ( plane that just parachuted off of Hawaii you may have saw on the news).  Many pilots as you can imagine are self made RE entrepreneurs and builders and developers.  Well for all you out there wanting to make it RE this is something to strive for.

The bigger boys have moved up to light jets.. Or personal jets. and were talking about how much they spend a year to fly them.. consensus was 350 to 450k a year.. And they talk about those like us folks on BP talk about buying a rental house.. pretty comical really and something to work towards.

So remember when you quit your day job this is what you need to be making to be  a jet setting RE developer ..

@Jason Wolff 

@Account Closed 

May happen as Jason alludes to but its very rare.. and with the reality of many inner city dead and dying towns its a real issue.. property is not worth what the tax's are owed so the properties just sit there and gather mold and dust and deteriorate.. I don't think the taxing authorities ever thought the day would come that homes would only be worth 500 dollars like they are in many inner city hoods.. and tax's are 5 to 20k... its an issue of social concience