All Forum Posts by: Jay Hinrichs

@Karen Margrave 

its easier to ask the question than to give the answer.. One thing that I have had long talks with my bankers is the CRE ( community reinvestment act) which forced banks not to red line and make a certain amount of loans in their footprint even though going into it they new they would be taking loss's based on the collateral ... There was a great American greed piece on Milwaukee and the loan fraud that was perpetrated there. Homes that looked just like this U tube that was posted on the thread and banks making huge loans on those assets at 100 to 150k per property and the fraudsters walking off with untold amount of ill gotten cash... they went to jail as well they should. but it did not help the neighborhoods. Its a huge problem where are banks are forced to loan into these neighborhoods yet you have the narrators of this U tube that were locals saying flat out they would never let one of their investors buy there or they would never buy there so they were red lining just like any other rational human being.. but being PC the feds made the banks go into these hell holes and loan...

Same with social support. I had one of my Off shore investors in from Asia.. there is no social support there.. If you don't work you don't eat. this was Singapore one the the cleanest best run city states in the world .. He was just amazed that someone in the US could not work and the government would pay their rent and give them money to buy food .. I know its a fine line.. but I think we have gone over the line.. the amount of people that live off of the government be them cross border illegals that walk into our emergencey rooms and use them as everyday doctors knowing they cannot be refused .. or the huge amount of folks that will never work get HUD housing and food stamps..

who knows were it will go.   But then you have investors that count on these government rents.. big circle.

That Video should be required viewing for anyone interested in out of state investing. end of discussion...

I find it funny , strange , and plane weird that 10k a month is the goal of so many ivestors IE if I can just get to 10K a month all my problems will be solved and I can live the life I dreamed of etc etc... I don't know about the rest of you RE folks.. but that seems a little light after tax's why are you folks not saying you need 20 to 30k a month. .after tax that will be closer to the 10k... Just curious really.

@Joe Villeneuve 

@Account Closed 

Joe how could you possibly be netting 400 to 800 a month on a 40k asset after all cost and mortgage.. What is your gross rent.. whats your management cost are you figuring in 1 months rent for tenant placement what is your vacancy factor what are tax's and insurance and of course maintenance that every mid west landlord underestimates by a huge margin.

Joe lets be fair here .. I know mid west stuff brought right for those that live there can be cash cows but lets not lead the CA investor into thinking they can achieve the same results you do living there and being right on top of the asset that is grossly unfair to the community

@William P. 

  Got to luv Cupertino ... I grew up there.. My grandfather from Milwaukee Wis.. used to always make fun of the name... When I was a kid Hey 9 and Stevens Creek were still gravel roads.. Now is all Apple...

There is no turning back for the peninsula its like any prime area of Europe or any other highly sought after location in the world.. Those that can buy there are blessed with one great investment that will weather the test of time.. And even in an Earth quake it will bounce back. I lived through loma Preita and it put a 24 month damper on things but did not destroy the region like some pundits on BP think will happen.

@Alvin Neal  I have been personally to a few of the Ghost towns Rick mentions and I can mention many more.. Bartlett springs ( JJ Corbit) Trained there for his heavy weight fight.  Etc Etc ... And of course most of those towns were based on mining that played out. So now in the rust belt and other mid west and deep south areas what has caused this mass defection from the neighborhoods. .Well obviously in Detroit it was the auto industry.

But what about the rural Indiana Ohio what caused those areas to suffer so much.

And the deep south why are there huge war zones and boarded up areas on KC and Memphis and St. Luis  why is that. 

The markets that I am most familiar with IE west coast. .We had a huge foreclosure problem but it got bought up by investors . Not boarded up and destroyed.. that's the major difference.

@Derek Mercer 

 there was a whole thread on the Ethics of tying up properties with the only intent to close on it was if you could flip it... The state of FLA is cracking down on this unlicensed activity.

think about the sellers in these instances put yourself in their position.. Would you want some one who has no intention of closing the deal unless they could flip it tying up your property for 60- days...

@Paul Granneman 

 I saw that Bourdain show.... its a sad commentary on a once great city that is for sure... so as it relates to BP and cash flow investing... it has also created a huge opportunity for profiteers to take advantage of those that think they are buying this cute little brick bungalow only to find out   Opps not such a good idea... I have heard that the police and fire departments will move residences ( owner occ's) to safer place's since they cannot defend or service those areas as you stated... its not a war zone its third world literally in some of these areas.

@Brandon Sturgill 

  these are called shadow plats in parts of the country.. My father made a living buying shadow plats in CA for 30 years..  Just walk right into your county surveyor or planning department with your map and see if they recognize these are legal lots of record.. or you could order a title report that should give you individual descriptions if they are legal.

then you would talk with city engineer  or City manager about improving them so you could build on them if that's what you want to do... Lots of money made in the shadow plat game on the west coast.  WE do it today in Portlandia they are called lot confirmations.. we are taking a 50/100 and back in the 1890's when they were originally platted they were 25/100's so we can get the city to recognize the old lines and then build two skinnies ... those lots sell for about 75 to 250k per 25x100 with homes selling from 375 to 700k in our market... What I see out in the mid west is that land has no value because you can buy existing houses all over the place for less than replacement value... but I don't know this area of course and maybe there is a market for new builds.

@Mike Hurney 

  Google turn key companies .GB  and take a look at their lovely inventory... not only Aussies