All Forum Posts by: Jay Hinrichs

@Andy M. 

  to be fair I did not watch the video  but it sounds like you did major reno for far less than others could do it for.. thereby creating your excellent Delta.

We had this scenario many times in my days of timber... IE you Cruise a stand  which is usually pretty accurate  but not always.. you pay for the standing timber thinking your going to make X and then you hit a huge over run  and the next thing you know you made 100 to 200k more than you projected.. Or it could go the other way you Cruise the stand pay and the harvest comes in Light and you make next to nothing...

Houses on the open market seem a little easier to get a handle on .. But in my work a day world were I fund wholesaler flippers nationwide. Some of my guys can rehab for at least half of what it would cost us here in Oregon. So value is made in labor and efficiencies no doubt. 

Like I said not much talk on BP about helping sellers maximize profit  LOL.. its all about helping investor buyers Maximize their OWN profit.... I guess that's what makes the world go round.

@Andy M. 

  What do you think the value of the house was when you bought it had there been any other suitors for it or had it been listed... Sounds  like the real profit was made on the buy  IE buying far under wholesale value...  Did the little old lady know what she had?

It is interesting in this business where we gauge success by profit and how we don't think twice about a little old lady that might have sold her asset for half of even what a good wholesale price would have been...

When I was buying direct from owners I always wrestled with that... Wonder how other people think about it.. Or is it just Caveat Emptor  for the sellers with no regard to there financial well being... Just curious what others may think.

And congrats on a nice deal that is big one in anyone's book.  

@Larry Turowski 

I like your comment about working in a pack... I think the online stuff is good for some but not all. .I personally would not have the patience to listen to pod cast or webinars. I tried a few pod cast and got 10 minutes into them and got bored... Webinars are even worse for me personally... I think the REI meetings and interaction for a lot of people is important.

For that reason I am a believer that in this industry if your new getting a RE license can be good thing.. you actually learn about real estate and laws. Instead of posting a question on laws on line and getting 5 different opinions from who knows who.. Then you have the pack aspect as you talk about in a GOOD RE brokerage setting. I owned a RE company for 10 years not to make money B/C is certainly did not.. But to interact with agents they all knew I was an investor and guess who they ran to first.. I plucked at least a deal a month or at least every two months by just being in my office and interacting with my agents.

There is no Doubt the Guru seminar is just a manifestation of the MLM presentation many of the same trigger words... IE:   Quit your job,,,  Spend more time with family  ,, make the money you DESERVE etc etc.  I sat through 5 minutes of one of these seminars while I was waiting for an appointment just happened to be in the hotel.. And there was the speaker with a picture of his wife and him Hiking in Montana and talking about how RE will set you free  Blah blah blah.   When in Fact a full time hard working RE investor has anything but free time its a job just like any other.. with the difference is you can set your own success levels.. The harder you work the more successful in most instances.  The only people that get into RE and are truly passive  made their money somewhere else or inherited.. The rest of us that started at the bottom and worked our way up.. Worked our rear ends off to get there at least that was my experience..  But I look at it as a life styly not work so in that perspective Its been great for me. 

@Cal C. 

  bought most of mine in Henry.. my PM was my partner and my rehabber.. And we bought court house steps most of the time.  we did great on these some of the best buys we made In those time periods.  sold to smaller hedge fund and made a pretty nice hit. Got in and out in 2 years which is what I like to do

@Cal C. 

  Cal. I bought about 40 homes in south Atlanta with my PM partner.. he steered me clear of clayton county.. although I think we bought one.  No one will tell you other wise unless  you uncover it yourself. He also drove me by nice looking houses that had not had a renter in over a year.. All owned by Aussies.  sad really

@Rick H. 

  and of course the Ferrari is the bomb.. I have not personally owned one but been in many there is nothing like stepping on the throttle in one of those ..  I have many Porsche over the years but they sound nothing like the biG F when you lay into them.

@Rick H. 

  Rick I was thinking the PA 161 was a piper I was not aware of . having owned 3 of them

looks like its a different bird like a stol aircraft.. did you use it for back country flying.

I used my bird for business ... but really would like an amphib for those back country lakes in BC.. and or a stole aircraft for Idaho..

Your sombrero looks very back country pilot  ESQ

@John Fedro 

 John not new license just happened to go through the 10 hour annual CE  last week so the part of MH was fresh in my mind.. as there was some discussion about it in class

@Jim Johnson 

  Agreed with your point.. if your carry a zero interest carry back you must use imputed interest and report it as a gain.. right now that's pretty small rate... My accountant handles that stuff but we have been doing 0% loans for many years my dad did them on land sales contracts in the early 80's when interest rates were 18% and up.. Guess how much land we sold   (  a bunch)

fix and flip is highly risky out of state  even more so than buy and hold.. IMO the only way you can do it is with a close personal friend or family member watching over the process

Especailly at the price point your talking about