All Forum Posts by: Jay Hinrichs

This was a new one to me.... I understand there would be class's on how to buy tax liens etc etc.. But I had never heard how to FLIP tax liens... I suppose once you buy one you could resell it... Out here on the west coast we are tax sale so not that versed at the tax certs.... And maybe they are talking about buying at tax sales and flipping..

Maybe if I am totally bored I will run by and listen to a few mintues of their pitch.. they don't have a known front man.. Like than Merrill.. Although the couple in Vegas that has a flipping show is now going out on the guru ciruit they are coming to pdx.. Makes the 5th guru in 3 months.

@Steve Babiak 

  Touché    I know when I have had big insurance claims like a burned up house first words out of the audjusters mouth are do you have a current tenant ?  when you answer no then they just nicely ask ( Oh then how long has it been vacant) and if you answer oh maybe 3 to 6 months really don't know as I live in Oregon) then they inform you of the 60 day rule ... its in the small print...

I was talking with a doctor out of Cleveland that thought it was a good idea to buy Detroit rentals.. Well you know how arson is just another sport in that city.. sure enough  one of his houses got torched it was vacant for 6 months insurance rejected his claim. he lost 60k right there.

on the radio yesterday there is a new guru program.. IE free seminar with all the same buzz words...

this one is FLIPPING TAX liens for big profits.  Make 10 to 15k a month flipping tax liens.. Make 18 to 35% guaranteed from the government ... ALL WITH NON OF YOUR OWN MONEY..

Sound familiar... have not heard this one about flipping tax liens.. anyone got any insight on this

can't comment on whether the 1k is worth the icing on the cake.. however transactional funding and proof of funds letters are readily attainable especially in your area .. If its Oakland  or Alameda county were you want to focus your investing.

Just google hard money lenders ... they will provide proof of funds.

And there really is not much TRUE transactional funding going on these days.

Most HML if not all are going to want you to have some cash as well... Its pretty difficult these days to use none of your own money or if you don't have any money make deals happen... At least with experienced lenders.

@Nat C. 

  Make sure you check with your insurance carrier if the house has been vacant for 4 months there is a good possibility that your not insured at this time.. As most policy go out of force if the property is vacant for more than two months... Many investors learn this the very hard way... Especially in this out of state low end type of rentals were your situation is just not that uncommon unfortunately..

And your not the first investors that has been ripped off by their contractor.. Again a very common occurrence.

I was talking with Bruce Norris last year at an event and he buys foreclosures in Inland empire and very common for a squatter to be in the house once they buy it at auction. And CA laws are very tenant biased.. they will automatically figure 2 to 3k to get the squatter out.. these are not hold over owners.. these are squatters same as what your dealing with.

@Dan Dwyer 

PS there minimum loan is 500k... but they will look at inner city semi ghetto dog properties they just really want to make sure the operator knows what they are doing. And the loans are usually loans to COST not ARV as we know ARV is a figment of many peoples imagination in the Mid west and south east cash flow markets ;)

@Dan Dwyer 

its Blackstone's lending arm.. Blackstone as you may know is a huge Hedge fund that jumped into the SFR rental space buying 30k homes over the last 4 years or so in many different markets.. Well they also saw the need of investors that own portfolio of SFR's and can't get any financing because fannie Freddie 10 rule... And or local community banks generally will not lend on these assets or if they do its only to those that live and work in the community. So there is a Niche for Blackstone to provide capital for those that own 10 to 1000 or more SFR's and are looking for bank type financing.

And for Blackstone they bought all these homes with the hopes of a 6% or so return. And who knows how they are doing at that, But for them to lend at 5 and 6 % and not do all the work of sourcing and buying thousands of homes.. its makes total sense I predict there lending arm will far outperform there Asset arm.. With the exception of The west coast markets they bought in... They will do pretty good on some Atlanta stuff but then they also got caught up in the escalating wholesale prices there that put most of the turn key guys right out of bizz. 

They are located in Charlotte.  And you can get a LO on the phone no problem

I know of a few that have closed deals with them they were 2k million plus loans. Its not easy and its full underwriting but its also non recourse.  Tell the I sent you they will pay me a brokers fee  LOL

docusign and hellosign are two that we use almost everyday.

I don't intiate them or know how to.. I just get them sent to me as I am the seller  or buyer.

But if I was creating documents as an agent ( have not done that in years) this is the only way I would do it... I tell all my agents that are bringing me deals they MUST use electronic sigs when able.

She could be a He... talk to female realtors about how they handle open houses and meeting with clients...

its like a craigslist stalker.

My wife is a RE broker for 25 years you need to have your radar up unfortunately in this bizz.

If your putting up 50% of the money and finding the deals and doing all the leg work and the other investor is simply putting in 50% of the cash and getting "mailbox money" that's a great deal for him,  the only benefit I would see to that structure for you is if there is a huge opportunity to build scale and mass and you need the capital..

In my mind If I was providing all the opportunity and doing the day to day I would want the investor to fund 90% to 100% of the deal and we split 50/50... Lots of work buying rehabbing and renting these homes.. Far more work than those that have never done it understand.

From investors B's position he or she probably wants to know you have skin in the game.. So maybe you put in 10% into each deal.

Also if you have this going on for you where you have wherewithal and experience and a portfolio you should be talking to B2R about financing 500k at a time for you.. super terms and you don't need equity partners.