All Forum Posts by: Jay Hinrichs

@Account Closed

At some point the hedges will have to sell and when that happens there will be a glut of rental properties in the markets that they were heavy in .. IE Atlanta PHX,, CA and others... There are Very few buyers other than other Hedge funds who can buy groups of 50 to 200 homes at a time.

What had traditionally been a mom and pop bizz has changed dramatically as we know... So the maybe these large bundles of inventory will be sold off to mid level syndicators ,, ( same people that are buying apartment complex's right now)...

What happens in these markets were 50% of the homes are rentals is the rental stock really just keeps being recycled... Investors retire or get burned so bad they just sell out.. Keep in mind that all this inventory for fresh rehab homes comes primarily from an investor who failed and bailed.

BP Nation great website with a lot of great info and people. can't believe I had never heard of it until 3 months ago..

@James Park

Well this tought me a big lesson I will keep my mouth shut about other states unless I am dead certain... I would never have thought that to be the case... AS I posted in Oregon you need a GC license for a developers license if you are going to buy reno and resell for profit even if its just one home.

Not all state recip on licenses maybe GA and WI do... I know I got a recip from Oregon to MS.. I got a MS brokers license by taking a 15 question test.. Its was more akin to getting a drivers license they handed me a little booklet to study.. I got 13 questions right so I did not over train.

But its a huge benefit for those in the bizz having real time access to MLS in my mind is a must if your going to be competing with locals players.

@William Hochstedler

Auction companies have RE licenses or will engage a broker when they are in a particular state.

@J Scott

One thing that dawned on me. when we talk about unlicensed activity in the act of buy rehabbing and flipping homes.

And my opinion that you don't need a RE license to sell your own property.

In my state Oregon you can sell your own property without a RE license but you CANNOT buy with the intention to rehab and resell or construct ground up any home or commercial building without a DEVELOPERS license.

Now anyone can get a developers license there is no test.. But you have to pay a fee and have the same insurance coverage that a GC has plus a 50k bond. And of course as with everything RE related many fix and flippers in Oregon do not even know this law exists.. And the only time you would be called on it is if someone complained or your in litigation over a construction defect.

And with a Developers license you may NOT do any of the work your self.. from running a broom to a paint brush or hammer.. If you do any work yourself then you need to be a GC.

But no RE license required to buy and sell your own deals.

Of course you need one if your acting as a broker and selling property you don't own..

So I am going to back down from my blanket statement that no RE license is required to sell your own properties in all 50 states.. I do not have first hand knowledge of every state. It just rubs me the wrong way thinking one cannot buy and sell their own deals...

@J Scott

OK but I would challenge that one all the way to the supreme court.

that's total BS... But if you list them with a Realtor your OK

Now I sound like one of the BP posters LOL

@Account Closed

@J Scott

Absolutely no law against selling your own property without a RE license in any state period end of that discussion.. but even an owner seller needs to follow RE law regarding Sellers disclosures lead based paint etc etc. K M the agent who said you needed a license and FSBO 's are not legal is incorrect in CA its totally legal to sell your own properties.

And of course nary a few Non agents use these forms or disclosures and they just sell their properties with a simple contract and open escrow and off you go.

I have been funding a bunch of Homepath and Fannie stuff the last 60 days and these companies have lead base paint disclosures and other statutory disclosure requirements.

And not providing Sellers disclosures have different penalties in different states. For instance in Oregon if you do not give a seller a Sellers disclosure form the buyer can back out at any time and they are entitled to their EM back regardless of what the contract says.. then of course if you close and their are issues the seller is going to have an issue if they did not give the disclosures there will be little to no defense especially if they claim they sold the property AS IS.. but again every state is different.

And of course for Tax purposes being in the bizz and or having your properties considered inventory the threshold had always been 7 or so. Do more than 7 deals in a year your in the bizz.

@Account Closed

that's all well and good if its from the general public or competitor but if its from a state regulatory body,, then its a whole nother kettle of fish... the bureaucrats get paid to follow up on these and they get paid if they win or lose.

At the end of the day... as we all know there are so many laws technically broken in the RE industry every minute of everyday that unless someone piss's someone off or there are numerous complaints people will just keep doing what they are doing.

And of course from my standpoint of helping finance deals. I am not the license police..

One thing that our state did though was crack down on Private money lenders those that had pretty big books say 2 to 5 million of personal money out there... And were clearly in the bizz the state sought them out and gave them cease and desists. Just writing this loan is for commercial purposes did not get them any leeway with the safe act :)

@Account Closed

my kids went to Juana Briones grade school.. Know the property well.

Agree on the scale you mention my point is your not going to give a 1k EM deposit and then flip it... with 35 dollars in your pocket... Like you can all over the mid west...

Do you know if Dick Coker is still active there his offices were off of Stelling and Homestead.. He was one GREAT hard money lender in the day.

there is this anti CA investing vibe by some of the marketing companies that sell mid west TK... so the argument is what is better CA and no cash flow but chance to make a bunch on appreciation or buy a rental and make 100 a month =(maybe in the Midwest)

And my point is its all about timing... So think about PA in 1975 you could buy homes for 35k or less new construction in Cupertino for 50k... and you would have paid the same in KC INDY Memphis etc.

So fast forward to today the house's in indy and KC Memphis are maybe 100k if your lucky 150k and in Cupertino and PA they are as you said 900k on average.. So it all depends on timing and LUCK you were lucky if you happen to live and invest in the Peninsula you weren't any smarter than anyone else.. you got taken up the equity latter by the market.. HI Tech incredible weather lifestyle and all the other things that make the Peninsula one of the greatest places on Earth to live...Not to mention the 49ers Giants etc etc. Now I am a little bias as you can tell but.. it is interesting to think of the west coast and Mid west dynamics.

@Wayne Brooks

@Account Closed

@Bill Gulley

Wayne I suspect this is basically the statue in all 50 states or some version of it..

I stand on my opinion that if anyone could negotiate to buy then negotiate to sell a property they do not own and take a fee for that activity that its clearly the activity of a RE broker.. So in Bill's case of helping his friend out and getting a fee regardless of full transparency etc etc I believe he needs to be a RE broker to do that whether Bill is or not I do not know.

Additionally pretty much every state has a Disclosure law that RE agents must have the sellers sign IE property disclosure form...and these are required by law in every state I have done bizz in.. But the only time you see one is if a RE agent is involved if its a flipper wholesaler TK guy you never or if rarely see one... Lots of little things going on in these deals. Now there are exemptions for Lenders and banks that aquire these assets through a foreclosure. IE they don't need to disclose.. But the Hey I never lived there though I owned the home that does not cut it if your ever taken to task on the subject.

But again at the end of the day with all this flipping that goes on in the mid west and Southest and northeast who the heck is going to figure it out there is not enough man power.. The only way anyone gets a sniff is if someone files a written complaint with the DRE or AG's office.