All Forum Posts by: Jay Hinrichs

@J. Martin 

I did not have to sell that house to buy my house up at Silverado.. I was afraid of the 300 a month negative cash flow and I just could not see how the house could keep going up 3 to 5k a year LOL.... Oh well..... I could have also bought McQuen condos in San Jose for 5k a door FHA 500 down and 175 a month that rented for 250.00 and they of course are probably worth 250k a door or more... Lots of shoulda woulda coulda when it comes to BAy area RE. But life is good. I was young then too the McQuen condos I was 18 to 20 selling real estate and having fun really did not want to be tied down to owning much of anything I was like all young kids with more money than sense I bought nice cars.. an airplane and took great vacations :) stayed in aviation though since then and that has been a great life experience that I would not really trade for any amount of money

@J. Martin 

  So  J.  you think I should have kept my palo alto house I paid 180k for in the day?

@Jacob Taylor 

  Looked at the site... what they are doing is exactly what the Guru's do.. bus tours only looks like they take car's..  REally depends on the depth of the information and how much they charge.

I like to tell folks that one of the best ways to start if its fix and flip you want to do is

1. study and get a RE license  go to C 21 or many other brokers that will pay for the training if you just hang your license with them. YOu then get to network with those in the industry

2. STudy and get your contractors license... Get with a good interior decorator.. WE pay 150 to 350 per house to get all the colors right and ideas we would never do on our own and on the right budget.

3. If you need money start with friends and family but only invest when you have a clue as to what you are doing.. Pretty hard to take a few weekends and drive up and look at houses with 20 other people any one can walk you through a house and point things out its not rocket sceience

Have some patients and create a base of knowledge it will help you in the long run

@Jacob Taylor 

  Utah is ground zero for many of the fulfillment companies that are the back end of all the gurus you see on TV.  If you have an actual link to the site maybe we could take a look and formulate an opinon

@Account Closed 

  what you describe is a prohibited transaction in Oregon.. When I give referrals to brokers in the Napa valley and Palm springs from Oregonians looking for 2nd homes. I get a referral fee however they ask for my brokers license number and verify that is current.. That's my CA Brokers license. At least the bigger shops will.  I think every state has a different twist on this one.. One things is certain though its not the title companies job to decide who is licensed and who is not and who should get paid.

PS on another thread folks were talking about EM deposits.  When you do your transactions do you use an attorney to close them or a title and escrow company? And or have you ever used an attorney to do the functions of a title company on a closing ?

@Chris Martin 

I have never seen a  title company  get involved with licensure issues. and the broker in most states that I am aware of is the one who gets paid. Not the agent.. And its the Seller 98% of the time paying the commish... So if a seller says last minute hey my guy has no license and instructs title not to pay the agent the escrow company can disregard the broker demand but I will bet 50 cents that if that was the case the title co. would hold the funds until the parties reached a resolution or if no resolution was made would interplead the funds. The broker in this illustration cannot just unilaterally make a demand for the whole commish at lest I have never heard of it or seen it.

@Account Closed 

Really Joe,,, ... rare is it that an attorney closes a SFR or small investment deal on the west coast.

Big mulit and commercial deals multi millions etc  yes... but even then they work with the title company and the escrow officer handles most of the duties Attorney may draft the note or Deed  and review.

Maybe some of the CA investors can weight in and advise who they use for escrow closings.  completely different closing norms than an attorney driven closing state.

@Nazz Wang 

  if your buying in the SF Bay Area this strategy could get costly.. A lot of the inventory that is bought out of the West coast is very low dollar... So even though they are talking 100% of purchase price I suspect many of the purchase prices are 5k to 50k... Not 600k to 1 mil that you would be spending in SF or the peninsula for a wholesale deal.

I have many times accompanied my offer with a copy of a cashiers check for the full amount. But I don't put that into escrow and there is a simple reason I don't.

On the west coast once money hits an escrow account of a major title co.. It takes both buyer and seller signing cancellation docs to release your EM... If one party won't sign the title company files and interpleader with the courts and it can take over a year to get EM back.. and the offending party is not punished in any way... Lots of EM on the West coast gets argued over in this manner.  So if your going to be doing this on the west coast be sure to ask the title co. before hand how the cancellation policy is handled. and or have it stipulated in the contract that the EM is to be released back to you within 30 days of mutual acceptance and make sure that will fly.

Its one the reasons our closing are different here.  For instance a bank making a loan will not send their funds in until 1. buyers funds are in and buyers docs are signed. 2. they get recording numbers from the county.. then they fund.. As they don't want hundreds of thousands tied up in escrows if the buyer will not release the funds back.

Out east and mid west its kind of the opposite I were sellers expect a check right that minute at closing, this never happens on the west coast as funds don't get distributed until there is an actual recording and recording numbers.. I was blown away the first few times I did deals in the MId west years ago when everyone got their money and the Attorney told me that he only went to the court house to record once a week.... Or like in Detroit were its so screwed up docs can take 20 to 60 days to get recorded.. Title co. then need to issue gap insurance as who knows what kind of crook could slip an instrument in between the time you buy and you actually record.

@Eugene Hoffman 

  Never even thought to check licensure of another agent I worked with.. I like it.. I guess since I would never in a hundred years operate and get paid as a licensed agent when I knew I was expired status ,  so I would think no one else would either.

But in our state its not the agent who is owed the commission its his Broker..and his broker would not let him work if his licensed expired. But I guess if its an independent broker IE sole practitioner I can see them taking the risk... I guess up here in Oregon we just don't think that way. 

@Ian Fisher 

in my experience with hypothecations was I was the one Hypothecating a seller carry back note ( and to my bank)  I would think in your case you would just buy the note.. Or maybe your thinking your just going to buy a set amount of cash flow not the entire note.

To structure a JV now that you already own the assets is probably going to be pretty tough especially if you bought them turn key as there is probably not much true equity if any to offer a JV partner.. I could be wrong but in my experience that is usually a correct statement.

And for a JV partner there has to be mass and scale.. Not really going to get someone to come in and do all the grunt work for a few hundred bucks a month..

I think your like many investors on the buy hold mid west model.. once your in your in..

And now that you have rental roll history the values will to a large extent be based on how well your properties perform.

What class of property would you consider these to be ,  that's another important issue as to how hard it is to actually manage them no matter who is managing.