All Forum Posts by: Jay Hinrichs

@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.

@Sharad M. 

  to follow up on your demo house..on a few hard money loans I made in the day ( areas I would not touch today as I learned my lesson) when driving by to inspect my collateral is was bulldozed... Oh well wrote that one off... and we know the lots are worthless so total loss.

the reasons are endless. they may not know the true value... House generally needs a lot of repairs that they don't have the dough for .... Area has turned for the worse and they want out.

Many times those that inherit just want quick cash... And depending on which market your in houses may be very difficult to sell on the open market. And the only way to sell them is to put them through a Highly financed marketing program and offer them out of state to investors that really don't know the areas

Not keeping my first house I bought in Palo Alto for 180k  because I was worried that I would be 250.00 a month negative.. And I did not need to sell it to buy the new place in the Napa Valley... Well 250 negative would have over the preceeding 20 years would have been 2 to 3k a month positive on that one house. and today its worth 1.5 mil.

Not understanding that there are TWO values in the mid west as south east.. There is appraised value and WHAT someone will actually pay for a home.

coming from West coast were our houses generally ( fixed up ) sell within a few % of appraised value... Out east is a whole nother kettle of fish.

Not buying ski in ski out condo's at Silverstar BC for 29k Canadian  when the exchange rate was almost 60/40 to our favor... those things sky rocketed in value.

To many F ups with mom and pop contractors to talk about... Just don't pay in advance is good advice.

Best thing I did was hire a single mom of 3 to manage my tenants and take the calls. I was a push over I believed every sob story and was terrible at being a landlord.. my gal she took no crap from tenants or got sucked into their sob stories.

@J Scott 

   Ergo the difference between our market PDX and others. We don't give anyone keys until we are well into finish work . the garage door is unlocked they just roll it up and close it when they leave. we need no security at any time during the first 2/3rds of construction.

once cabs and appliances are in we will lock up and activate the garage door.. then we simply give the garage door code to all the contractors. or the code to the contractors lock box.

If our foundation guy did not put pass throughs  in for plumbing etc he would be fired. Would not be anything I would have to do.

@Aaron Mazzrillo 

  Aaron real investors don't let other big dog investors fly commercial.. you no doubt have a net jet account and by pass TSA... I know I do.. But I just fly my little bug smasher at 200 mph.. ...    so how do you find all these smoking deals. the Big yellow card????

@Kevin D. 

  One thing is for certain managing these properties and the tenant demographics in the mid west is a VERY Tough job.. that is why so many investors fail they get terrible management... any one can buy a house fix it up and sell but not everyone knows how to deal with their particular tenant pool.. And when you look at Memphis specifically remember 55% or so of ALL single family homes are rentals.. ON the west coast that number is from 0 to maybe 10% depending on the area. So you have professional renters and renters that will never own.. They will live in a 5 mile area.. be born raised and move 50 times in their life.. never ever been on a plane and maybe went to New Oreleans once or twice or Chicago... So for MI or any other company to manage thousands of these and only have a few complaints that pretty stellar in my book...

My experience you have small to medium size companies and they just up and quit on you one day.. Or like what happened to some of my borrowers the PM just collect about 3 months worth of rent and fled with 250k  only to be arrested down the road and go to prison.  the mid west is full of these land minds..

So have a little bit of an open mind when you research PM...