All Forum Posts by: Jay Hinrichs

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...

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@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

@Sean W. 

  that's some pretty big Sec 8 payments... its that typical in your market is that 100% section 8 payment or is there a co pay on this particular tenant.. Also what is your experience with actually collecting the co pay.

I also like to point out that section 8 is no government guaranteed.. while yes you will get your rent on time the tenant can be kicked off the program at anytime, or the house can be disqualified if its not maintained properly...

For your numbers since they are pretty big to start with.. I think it would be ( form a marketing standpoint) better to double your monthly maintenance ( as my experience with owning hundreds of these types of assets is closer to 150 to 200 a month in Capex) and you do not have any vacancy factor in there... then see where your numbers flush out and if the investor does better than great..

Is there any hope for appreciation in these assets or is it only investor driven.. What is the age of the assets and are they C D class all of that factors in for long term sustainable cash flow properties...

AS many know the first year you might hit those numbers in a fresh rehab new tenant its what you do a few years down the line that count.

And what the quality of the rehab is... if the home is just reconditioned to meet hud standards but has old mechanicals old plumbing and electrical . old windows 15 year old roof etc etc.. these turn in to Capex hogs over time.

@Steve Vaughan 

  that sandwich lease is popular with newbies but is really dangerous for the sellers.. really puts a seller in a bad place in the case of default.

Love your neck of the woods  especially Lake Chelan

@Bill Gulley 

Your not going to sell a property without providing a new title policy.. Unless it was a cash sale no lender and the buyer was not very bright.  Or your doing a transaction without the benefit of title and escrow company and just handing over a deed for money.

Seems like a lot of effort over 40 to 60 bucks... LOL

@Robert Leonard 

  I looked at the watermark site boy that's some pretty rough looking inventory......

@Brandon Sturgill 

http://www.biggerpockets.com/forums/44/topics/151875-new-subdivision-development---jay-hinrichs

I just broke ground on a 27 lot subdivision I am doing in Portland... I posted picks and deal points.. Each state is vastly different when it comes to development criteria and specs along with environmental... It is not possible in this day and age in our state to record a plat without all services being done.. Or bonded for.  Land development is a big money game by and large.. When you look at the pic's  If you look at the pic's  being in the northwest storm drainage is a big factor you will see 48 inch pipe.. that is our storm retention system. We store the storm under the streets.. We can also as Bill mentioned create ponds for storage but each site does need to store all storm and rain drains before going into the public system.

@David Krulac 

  spot on about the bridge my bank forclosed on a developer over in Central Oregon and the final phase was subject to building a bridge.. So the lots were pre platted but not buildable  BAnk ended up having to spend 200k building said bridge.. but they had more value in the lots once they were done...