All Forum Posts by: Jay Hinrichs

http://www.youtube.com/watch?v=jVpDZQVsgSE&sns=em

This was a nice semi infill we just built and sold build time start to finish 5 months.. It was our very first foray into the Charleston Market.. Next time up tough we will not do a full wrap porch.. framing in that market is almost double what we pay in ORegon..

this one sold at 292k within 3 days on market. with a 17% net profit end of the day.

We currently have 5 more going and one is the subject of the reality show "southern charm" I will update that one once we see the video from the production company it should be pretty cool.

@Hattie Dizmond 

  with the new safe act loans most commercial banks are precluded from doing any owner occ at all.. Like my little bank can do 6 in a year .. any more than that and they need the full nmls route and all the other Tila stuff... It used to be as you described though..

@Sandra Lee 

  I don't mean you literally need a PI what you will soon find out when you start hunting down your prospects is that you can't find them.  They will be deceased,, moved  etc etc.

You need to be able to chase down next of kin neighbor's etc to try to find these folks.

Maybe in Florida it will be easier however the folks I knew that were halfway successful at this that is how they were set up.. It took a lot of effort to find the rightful owner and or their family.

@Jordan Archer 

  that strategy is a receipt for disaster if your just starting out and or have limited capital.

Its Far to risky for the seller... These types of transactions have a very high mortality rate when you sell to bad credit homeowners.. ( think Sub Prime) you place the seller in jeopardy not of their own making.  To be above board and able to pull this strategy off means you have the means to take out the sub too loan if the alienation clause is called by the lender... and or you can make payments on the home when your end buyer defaults and you have to either foreclose them out.. ( which in FL.) is a 18 month process.

So think about it.. you sell to a dead beat bad credit. they move in.. Stop paying you now have to pay the first plus pay all the foreclosure costs... What usually happens is you don't have the wherewithal to do this.. ( of course you might).. you then default on the sub too from your original seller.. The original seller is in a very crappy position.. they don't own the house and do not have a security interest in the property and could end up with a foreclosure on their FICO

Not a good strategy at all for the sellers.. Unless you can prove you have some substantial capital and will use it to protect the seller, (again when your end buyer goes TU which happens very often in this scenario)

@Nat C. 

 commission are negotiable you can indeed pay an agent more if you so desire but unless they have a buyers broker agreement with you your not obligated..

I had an agent do that on my very highest flip I did it was a 5 million dollar flip.. she brought it he buyer and she sold me the property.. So I bought it for 2 mi. she doubled ended that so 120k... then I listed it for 5 mil as I am a broker.. she brought in the buyer for 3% or 150k and then wanted a bonus because of all that she had done.. NOw granted we made a deep into 7 figure profit but we also had the cash when no one else would step up and buy this type of home which is somewhat rare in our market place.

@Sandra Lee 

  it sounds easy but in reality to chase these kind of deals down you need to be a PI and have accruant  account so you can skip trace.  Its not as easy as just getting on the phone or sending a few letter. As well as when the overage is distributed its cut to the rightful owner .. and if they consult anyone they will just not pay you.. Just like when the big company in CA tried to do that to my 80 year mother.. she signed up for it.. I stepped in thanked the company and proceeded to get my mother her overage without paying anyone. 

@Wayne Brooks 

  as Wayne stats this is been going on a long time.. google Joe Kaiser Washington for more information

@Wendell De Guzman 

  as you can see by the response's trying to take down this tape by cobbling investors together is a pretty tough road.... Everyone wants that great deal in their market.. In that size of tape your going to have many rural type properties ... Like I said been there done that.  This game is for the Big money boys that can buy the tape in cash.. then parcel out the properties. not try to raise a bunch of different investors to all come in and buy the tape.. they move to fast for that.

@Benjamin Kanevsky 

  2% and top schools is a disconnect  the majority of the time.

@Account Closed 

  you could just order the ALTA policy.. title insurance is pretty standard as there is only a handful of underwriters nationwide.. ARe you talking about the preliminary title report or title commitment that you want reviewed prior to closing the deal... ?

@Bill Sargeson 

  I bought a lot at a California tax sale and when I surveyed it the home next door was half way onto my lot making it unbuildable.  We had a little legal wrangling but at the end of the day just sold the lot to the offending encroacher for fair market value.