All Forum Posts by: Jay Hinrichs

@Eric Fernwood 

  very nice reply... I would add that folks should either buy direct from the TK operator and by pass NON licensed agents that are just hawking for the TK guys... Or buy through a licensed agent so you have the protection of E and O... buying through the non licensed hawkers there is absolutely no recourse if a deal goes pear shaped. and RE broker has a fiduciary. And if you go direct to the TK company you can potentially save some because they don't have a marketing fee they need to pay.

Ask for Scope of work one of my clients that I fund acquisitions for takes EACH and every property to the studs.. and his TK product has all new. plumbing , electrical , hvac, windows, Kitchen is torn out and a brand new kitchen is put in with new cabinets and Slab granite with under mount sinks designer tile work... Flooring of course is all new or if its hardwood its completely redone. New insulation and sheet rock along with roof and paint. In my 35 years of funding rehabbers and TK guys these guys do the best I have ever seen... The danger I saw and experienced with TK guys was the fluff and buff not changing out these things and selling 20 to 40 year old homes that will just be maintenance hogs down the line.

@Neil Goradia 

  how many lots to the acre are we talking about.... 22 acres are these big lots like 4 to the acre?  I have some pretty good contacts in INDY that may want to be your partner.

I have done a lot of business in Indy over the years in my HML days.

Good luck on it.. I was just out today on my 27 lotter in Gresham ORegon.. they were coring the roads out so very exciting.

@Neal Collins 

  currently building new construction in   Hood River,, Yamhill, Carlton, McMinnville , Lake O ,, Wood Village Canby , and just broke ground on a 27 lot sub in Gresham that I am doing all the underground for as well... And have 16 lots in Seaside my bank is having me build out for them as a special project.

I also fund flippers in 11 states I do these all as Joint ventures I do not loan money anymore but in the day I owned Silverado Funding here in PDX you may know of them..

Even though I am NMLS licensed I find the JV route much cleaner and I don't have to answer to NMLS and the mortgage call reports etc.

@John Blackman 

thanks John once I click on that Icon how do I get the pictures from the MLS to here? Or off of my phone.. that is the challenge for this old dog...

@Bill Gulley 

  I should have known Bill would know what a Timber deed was and how to use them in commerce I thought I had one on the community :)

@John Blackman 

  Portlandia infil and Austin infill mirror each other in sytle designs and costs.

If I new how to put pictures on the threads I would send you some of ours you would be astonished to see the resemblances  .

I am currently building out in the Oregon wine country and we did use the attic space for bonus room.. by simply changing truss design.. we added 700 sq feet for about 11k.. added cost of truss's got the framer to just do time and materials building the stair and framing in the room.. Its a huge selling point we can then put master on the Main.

We do tussle with appraisers though over the value of said space... on the infill its not an issue it gets counted

Major pet peeve of mine with the realtors of today... they like to text  I would text when ever possible they seem to respond to those... I am still active broker in Oregon but I don't do any business per se other than my own deals... So I don't deal with the public anymore but when I did I answered live when ever possible.. even if it was to just say hey I can't talk wanted to acknowledge you called and when can I call back.. folks like that

@Joe Villeneuve 

  was lending in Detroit in 03 for about 3 years.. My TK team that I financed then moved to Indy so we stopped doing Detroit  and thankfully other wise I would have had a major problem as when the market dropped in that area it cratered and never came back like say Atlanta did..

My point is you have a universal sales pitch not only you pert near every TK company says buy from me and you get instant equity... WEll I submit that the true value is what they are paying for the asset.. If the asset could easily be sold for 25% more on the open market to a willing buyer.. YOU as a astute business man with profit in mind are not going to just sell the property to some out of state investor for 25% less than its REALLY worth...

I know the ARV REFI game participated in it literally 2,000 times ... I was closing 60 HML a month in the day and getting paid off from Country wide WElls BOA on my clients refis the same amount. it was wonderful while it worked... And yes it appears lenders have fallen right back into that method of business.. With the Buyer truly having NO CASH into the deal at the end of the day.. IE your debate on what the return is because your refing out all your cash you paid for the asset IE CASH OUT REFI.... Time will tell again .

I don't really lend anymore I just do JV's but If I was lending and you see this with many HML ers they want to see real CASH into a deal.. yes you can find those that will lend to strong repeat clients.. but the average person will have a hard time finding a HML who does not require real cash into a transaction.

I realize Detroit is not Michigan and there are plenty of other areas in MI to invest.. There is a reason that the big NOTE buyers HEdge funds would not buy NPN in MI and OH... they bought in every other state.. this is one reason there was a free fall in values as well.

@Kevin Romines 

  Kevin this probably works for you as your well capitalized.. however you have many newbie types that read these things and run out and do this and have no real capital to support a deal if it fails. I ran into just this type of investor here in PDX they had done 30 of these.. and when the tenants ( lease buyers) started defaulting one after another.. these folks did not have the means to keep making the payments and the cost involved to evict and rehab a semi trashed house.. I picked up about 10 of these from the ashes'.  The risk to the seller is usually one of credit getting hurt as they can and or will miss a few payments while they are trying to figure this out... Don't get me wrong I bought many probably close to 100 Sub two's in the day.. But we were a well financed and capable mature RE company with the ability to cut a check at any time to pay off a loan... I kept them for my rental portfolio.. Lease option to buy is just very hard to do, the only times I have really seen that work is in higher end stuff were your selling to professionals that usually have to sell a home or some other thing.. doing it on the lower end with credit challenged folks those never work out.

on the Alienation clause where in the Deed of Trust does it say one simply has to notify a lender that your taking title sub 2 and if the lender does not respond that's deemed acceptance.. being a HML for many years and dealing in TD like I have I have never seen that.. I could be wrong though.. But again Heck banks and servicing companies can still start a foreclosure while your arguing who is right and who loses the seller who sold you this property sub 2 as there credit gets trashed and you the middle man are not impacted at all. That's my point you may be correct on the aurguing the Law but that takes a year at least and the bank just moves forward with the foreclosure trashing your sellers credit.. that is the risk.. Unless one can cut a check that day to pay off a sub 2 its a risky move for the seller.. It just is.. I am not saying it can't be great for all but the sellers need to understand what could happen.

Here is one I like...

Many do not know this but Timber  IE TREE's  can be 1031 exchanged.. AS they are real property up until they are harvested and taken to the mill.

So I had clients in Oregon that were sitting on major timber holdings 7 figures ... but were afraid to cut the timber because they did not want to pay tax... I am sure people run into that objection all the time.  What I did was set up a method for us to Buy the timber Deed for cash put that cash in a 1031 exchange then I brought them a nice multi family deal that they could pay cash for or put a little debt on so they did not have boot.

So they still own their land... I replanted their timber for their next generations to enjoy they cut their trees in their farm.. that were just sitting there growing. and they 1031 into a nice performing asset they either owned free and clear or had little debt.. so trade trees standing there for 10 to 20k net positive cash flow still own your acreage and have it all replanted... Plus we made 20 to 200k a deal doing this... De[pending on the size of the timber stand.. and with ( I know your going to love this ) no money out of pocket because we would pre sell to the Mill who would front all the dough for delivered logs..

I loved the timber industry still do .. not as good as it was but we made some nice money in the day