All Forum Posts by: Jay Hinrichs

@Sarah Becker 

your in CA correct? laws as you know regarding tax sales are state specific, you should simply talk to your title co.. and or the title officer at a title company they will be able to tell you in very short order if the TAX sale wipes out HOA's in CA.. In my experience buying tax sales in CA it did.. But that was years ago ...

@Chris Adams 

  Build out on this will be 12 to 16 months.. we will sell 2 to 3 a month.. ( according to the 5k bank MAI appraisal :)  )  But we should easily hit that metric.

Our base model will cost 85 a foot all in and sell right at 325k for 2000 sq ft. plus 66k for lot which is our all in cost on the lot.  We are the listing agents so 10k for sales cost 5k for tax's insurance etc. nets us 310k per home...

170k all in build cost +  66k for the lot =  236k all in but lets round up to 250k because we all know it never goes right or cost what you think...  so 310k - 250k = 60k net net per house X 27 = 1.620.000 on 500k investment in 24 months max start to finish.

We do not have accelerated pay downs on the lots its straight prorata. Although I have had the bank do that in the past were we ended up with the last 5 lots free and clear.

WE also have INTENSE competition for lots in the Portlandia market..

One reason to build it out is its darn hard were we live to buy one lot let alone have 27 of them all in one spot that we don't have to try to buy one at a time or a few at a time.

this is one of 6 subdivisions I have going in the Metro market. this is the largest smallest is 5 lots.. But they are all in different sub markets so no competition for buyers between them.

We are going to go at it hard for the next 24 months then see were it all shakes out.

Our market was a 10,000 door per year growth market in new construction from 1990 until 2008 with 30% of those being multi family... In 09  a total of 700 doors were built. Our construction industry imploded.. Next year we pulled about 2k, then the next 3500 and so on.. I think we are back to about 4500 for 2014 maybe a little higher.. So you have pent up demand for housing as our population continues to grow even in the down times.

@Brian Beadle 

  its a fine line.. and really depends on asset class and tenant make up.

those that buy in low end areas with tough tenants even though they say they are long term buy and hold rarely make it 5 years if they are investing out of state.. those in state that do it for a living can and do well. The reality is low end rentals will just eat out of state investors lunch.

There was a thread a while back on BP that asked for anyone who had lived in CA or other areas and invested out of state that has been owned for more than 10 years.. the responses were crickets on BP...

@Account Closed 

 these are the scenarios we buy... literally clear the tax's last minute.. then probate if necessary or whatever hair is on the deal..

I have bought them in CA and this was years ago.. but they were extinguished laws may have changed I know Nevada has some action going on HOA's recently.

When I bought foreclsoures in Oregon the HOA would always try to collect but we refused and never did have to pay any of the back fee's just our fee's going forward.

I have used this title company and closed well over 100 transactions with them last 2 years they are very investor oriented .. Just tell Leah Jay said HI...

[email protected]

@David Krulac 

@Andrey Y.

Great question.. here are just a few items.

1. The aussie's banking system is all ACH no one has checks rent is due it comes in on the due date no late pays.

2. there is a housing authority that holds and controls rental deposits and their job is to mediate tenant complaints and landlord complaints.. NO going to court like we do. The housing authority decides who gets what of the tenants deposits.  And we know in the lower end rentals in the US no one ever gives back a deposit that class of tenant by and large does not expect it back.

3. And I love this one.. the tenants because of their automated banking system pays rent weekly every week they pay rent... This creates real time cash flow and in the very rare instance of a non pay the landlord knows right away instead of waiting to the end of the month etc etc.

4. Aussie pay their bills foreclosures are rare .. whole nother kettle of fish compared to our renters at least in the lower asset class's as we know what a nightmare that can be.

@Robert Leonard 

  just a casual observation is all.  FCI will have a lot of west coast properties with much larger note values... But like you said Due Diligence is the key...

I tend to lean towards more conservative type of note investing. For these NPN its a job and a lot of work.. its not passive by any stretch... And risky as heck as well if you really don't know what your doing.

Many folks in my mind would be better served finding a Really good HML in their town and just let them place the funds for you... Instead of buying these kinds of assets or knowingly buying into a troubled loan.

But I am jaded having been a HML and going through 08 to 2010 the last thing I would want is having to deal with down on their luck homeowners and all the drama that comes with that But that's just me... Just like tax's I like write on's not write off's :)

@JPaul Mills 

Most certainly you need a pre approval letter that your qualified for a loan or POF if your paying cash... Sounds like your trying to do a transaction as posted by the NO money out of pocket bad credit no job type of spiels ... The agent who wrote the offer should have vetted you better frankly... As it sounds like this is just a hope and prayer you have the cart far in front of the horse.. get your financing lined up or your investors or whatever.

Plus banks are not too keen on allowing people to flip short sales.  IE once you make the offer in a certain name they are only going to sell or deed to that name or entity. At least that's what the guys I fund through out the US run into.

@Alvin Neal 

  most of the brokers I know that deal with low valued assets like your talking about have a flat fee of 2k per transaction no matter the price.. about 35k  then the 6% comes into play.

Its the same thing with lending money... Investors are thinking hey I should get a loan for 1 or 2 points.. and they want a 20k loan.. who in their right mind would lend like that make a 200 to 400 dollar fee.  So I follow what RE brokers do when I do my deals 2k is minimum fee regardless of value just not worth the time risk etc for anything less