All Forum Posts by: Jay Hinrichs

@Scott Stevens 

  Scott just curious how you can think this investor has a GOOD problem from all appearances he has got caught up with one of the BAD TK companies and the off shore marketing guys.. and paid probably double for what the properties would sell for to  a local investor.. And these properties will probably always be management intensive with maybe rent collected 5 to 6 months out of the year... How is that a good problem ??? :)

@Joel Owens 

  as Dawn said 80k each which is the issue in of itself.

its buyer beware with TK companies and the marketing folks that rep them either in the states or off shore... This is likely to be a very expensive lesson for this investor.

It sounds from the local guys that the areas these homes are in are the bottom of the totum pole but this investor paid at the top...

My old partner in Atlanta ( he works south side) he won't touch these type of homes for management.. find a good manager is going to be very tough.

One may wish to just cut bait and dump these and start over... 

short term deals = fix and flip  not buy and hold

Been getting spammed lately with fake Docu signs and fake huds... anyone getting these.

As I get docusigns and Huds to review pretty much dialy I open them by accident now I just delete them

@Brandon Luke 

  Like to think I invented No is OK but I did not.. it was one of those lines I picked up in a sales meeting 35 years ago.. when we would all round table and brain storm on technique and what worked for what people.

And the one who taught me that approach was a retired Army officer who I worked with.

It is hands down the best line I have ever been taught or ever used..

@Account Closed 

  agree K  with that point  if your seller is in CA and there is no deficiency judgement and their credit has been trashed by the BK already.

so I correct my statement that its dangerous for a seller that still has good credit to do these deals.

@Wayne Brooks 

  I have seen it happen many times personally.... There was a group here in my market PDX.  That went to a training session on how to do sub two.. they had no real capital. but were gifted in research and closing deals.

Well they did about 30 of them.. with the strategy to build CASH flow on the delta.

they took title sub too then sold the houses to owner occ on land contracts which they recorded.  The buyers were buying with 1 to 2k down no credit blah blah blah... The delta was on a given property 200 to 300 a month .. so they got up to about 5 to 6k a month positive.  the down payments went to the people they bought the home from.

Well as anyone who has ever been around the game very long knows that low down easy credit is basically a glorified renter. 

Then the house of cards started to fall.. one by the one the new buyers defaulted.. there was not enough cash flow to pay all the underlying mortgages.. and to make matters worse the recorded land contracts in Oregon require a judicial foreclosure to extinguish.

And of course the dead beat buyer is now squatting in the house... So in this scenario just imagine what it was like to be the original seller.

You have moved on, you thought your problem was solved.  you now can't make the payment because its not coming in.. and you can't get your property back because you don't own it.  Its a mess and again why I think its a very dangerous strategy for sellers ...

this company as you might imagine got turned in to the AG and had some other legal issues.

@Tyler Mills 

  the reality is most who do sub too are doing it because they do not have any real money to speak of probably no credit and probably would not qualify if they tried to assume. I would venture to guess this is really only viable for an owner occ with good credit and job etc etc.

Its a risky move for a seller to sell their property in this manner  from many angles.

@Account Closed 

 its a small market only 6k residents in town... and no Inventory.. and a world wide buyer pool.. Of the 24 homes I built at Rand rd.. the buyers were from

Texas,,, Seattle, Australia, Beverly Hill's, Bend, Portland, Tri cities WA. , SF, LA.. etc etc. and half paid CASH... so very nice deal.

People come there for the out doors  its the wind surfing capital of the west and popular world wide.. along with skiing on Hood.. bikes Fishing boating etc.. pretty neat little area.. Not to mention the Brewery the wineries... Right up the road at Marrydale Peter Frampton and Jethro Tull are playing in a concert next month  I will be there !!

@Account Closed talked about lets say you do one of these in Texas were its common to get a deficiency judgment in the case of a foreclosure.  Seller lets someone take sub too.. this person defaults  the Seller does not have the wherewithal to cure. They thought there problem had been solved.. Bank forecloses it screws up sellers credit for ever and bank gets a deficiency judgment to boot. Investor who talked unsuspecting seller into the scenario is long gone...

Sub too is just flat dangerous to a Seller in any scenario really.. If your going to look at the risk factor for the seller.  And then all the wanna bee's that can get into title on a house for next to nothing.. its ripe for all sorts of problems..