All Forum Posts by: Jay Hinrichs

@Dawn Anastasi   its the thought that counts  :)

@Ali Boone   what would be great is for you to maybe explain why you don't like Memphis currently and why you like your other markets.. what factors given your experience would lead you to that conclusion?

That is the kind of information that would be relevant and useful from someone in your position.  I personally know Memphis pretty well but don't know Philly at all... I am doing business in Chicago right now and I really like the Multi market there..

And of course you have the heard mentality rushing to anything Texas !!... However in my mind when buying in Texas one does need to be mindful of tax's and expansive soils.

With many of the mid west or upper rust belt type cities for someone who is new to TK or investing out of state they really need to understand the demographics of the ares what we class as D and C and B and A  what that  really means.  

And I agree with you someone out of state is going to take a huge risk trying to compete with Turn key guys for inventory and to get the homes rehabbed without running into yet another set of problems IE theft.. vandalism being overcharged.

@Cassandra Boyett   I like the idea ( if you can do it and it worked for you and family) of buying a 4 plex with one of your loan slots as owner occ... live there for a period of time then move on.. leaving the 4 plex as a rental.. great cash flow close to home so you can keep an eye on it.. Its all about owning doors.. so if you can use ONE mortgage slot for 4 doors as opposed to 1 door and your really long term buy and hold then its about doors as much as anything.

When you talk to those in the business of owning rentals homes if you cannot realistically in a fairly short time get scale IE own 10 to 20 SFR's in the low value markets ( compared to much of the West coast) then those folks would tell you to not buy them period.. Look for other investments.. owning a couple of long distance properties that might make you a few hundred a month is not a long term buy and hold strategy. The other thing you might want to consider is for instance some of the crowdfunding opportunities if you qualify... As well as some of the folks on BP here that set up JV deals with investors... @?dawnatasai does this in Milwaukee for instance.. there your buying at true cost and have a partner that is there managing the units.. so In essance your not out of state and out of control.. Also James Wise in Ohio is a RE broker who does JV deals.. those types of deals are much safer than trying to buy 1 SFR 10 states away.. You may want to consider following up with those folks as well and see what they have to offer.

AS well as a really GOOD Hard money lender in your area could put you into some good short term loans.. those will perform and its passive as long as the HML is a top tier company Like in your area Bruce Norris at the Norris group..

So there is some ideas for you to ponder while you take it all in... 

@Ali Boone   Are you a licensed RE broker in any state?

@Melodee Lucido   the difference is when they are recommending these other folks they are not getting compensated for it.

@Curt Davis   And Curt has a great point when the deal is done your paid and down the road... The issue many TK have with some marketing folks  ( and I am not saying that is Melodee and Ali) but what representations have been made to induce the person to buy.

Every one has financial pressures and sometimes in sales things are puffed.. and then its the TK operator that has to live with the puffing down the road..

I run into this with my long term financing that I do for IRA buyers that have bought turn key and there sometimes was a sales rep involved...

But at the end of the day from my perspective as long as you folks are licensed have E and O insurance like a licensed agent would have to protect your buyers and referrals then all is good.. 

@Ali Boone   There are two sides to what you state  its obvious a turnkey provider is going to be partial to their market.. But the exact same can be said of someone like you who gets compensated to steer folks to a certain turn key provider in a certain market... Your advice and opinions will no doubt be biased as well. And of course your not the only marketing company out there.. But your posts on BP, as the original  OP stated comes off a little short of full disclosure I mean I even know your response before you write it.. Its the "I live in Socal and its too expensive here so I  only invest out of state blah blah blah.  It would be nice if you actually gave any concrete and real advice to these folks that are asking for it.. other than to promote buying out of state as buying out of state is just plain risky and many should never attempt it for a myriad of reasons.  

@Melodee Lucido   

And are either of you lady's who are selling Real Estate for these companies licensed in your state or the state that the properties are in?

If not I think what you all are talking about, IE having websites talking to investors coordinating inventory for the investors to buy.. then getting paid to do so is clearly selling Real Estate.. And I know its a fine line here .. However I would suspect if an inquiry was made to the Department of Real Estate in the  states you folks operate out of  ( and I have looked at Ali's site) and if indeed your not licensed I think you would probably get a letter to cease activity until the time you have your RE brokers licenses. As well if an investor was hurt in a transaction and their was litigation you would be wide open to a claim.

The only West Coast marketing guys I knew that followed the rules to the letter were Jay and Bill down in San Deigo they were RE max agents had their radio show and all transactions would go through a RE max agent in the state they were working in. and of course Brokers can give other brokers in any state a referral fee all legally. I funded almost a 100 deals for their clients in the day.

@Bryan Hancock   I like it, if you can't beat em join em... 

And a follow up to what Will said   the key to any of these deals will be the sponsors.. Its the investors that will be at risk.  So sponsor vetting will be critical in my mind to the credibility and on going success. 

Wish you the best with this... 

@Cassandra Boyett   I started a thread on bp last winter called turn key demystified if you can figure out how to pull it up I give chapter and verse how turn key works and how west coast marketing companies cost you money instead of dealing direct. As well as I wrote an e book on the subject that you may want to read it will give you the knowledge to ask the questions that will help you make a successful investment ... 

@Kevin Auyong   Go Giants  hope they can pull off another World series win.. I am in Hawaii when they won in 2010 I was here also.. so hopefully history repeats itself.. Me sipping mai tai's and the giants winning.. and of course I am living the life I deserve because I am a RE investor  LOL.

@Caleb Mclamb   I love the timber business stick to that one.. forget the rest.. those trees just get bigger each day and as such your value grows.. talk about TRUE passive investing.  The number one and two holders of timber in the US  are  the Harvard endowment fund and John Hancock.. there is a reason for that.. follow in your dads footsteps the timber business was very very good to me and its a great business.

date down:  verbal title search.  Our title plants are all electonic.  

Nic