All Forum Posts by: Jay Hinrichs

@J Scott

He should check with a title company before he thinks that he can bond around the Lien.... I have a lot of experience with this issue in my HML world and most title co. will not do this unless your a Premier client with very deep pockets... No reason for them to take on the liability for a one off deal.. But maybe they will do it... However as I stated I would sure check before to make sure they will... Because once the lien is there its there and the only way to take them off is court order or satisfaction.. And court order will be far more than this case is worth in the first place.... A real attorney would never take this on he would suggest that you settle it... as his fee's would exceed the amount they are arguing over.... At least in my humble opinion :))

OK off to work... I just bought 16 ocean view lots on the Oregon coast and am meeting my Architect today.. probably the last bank owned deal I will get until we have the next bank melt down... We are all out of bank owned stuff here in Oregon

@Wayne Brooks

Yes different in your neck of the woods.. We can not post a bond to remove a lien.. It can only be removed from country records by satisfaction or court order..

Now in some instances' you can have your title company hold 200% of the lien in escrow and they will write around the lien and give you a title policy but those are few and far between and pretty hard to do. The average Joe is not going to get a title insurer to do this.

I stand by my statement that this is far to little of money to go blowing thousands on attornies... the guy wants 6k he did part of the work so your probably arguing over 3k ... chalk it up to experience

then follow Will's advice moving forward.

@Wayne Brooks

Wayne I don't think its the city or county issue.. Its a title insurance issue.

cities and counties in my experience do not get involved with civil matters.

He should file a complaint with the contractors board though and or threaten that.

sounds like a small claims matter.. NOt sure what the amount is in CHC but here is 7500.00 so many of these issue get resolved that way.

Oregon were we are at liens are serious stuff as they are senior to all debt including construction loans etc etc. As long as they were properly perfected. and even if they aren't then contractors can sue for unjust enrichment and cloud title.

If it was me I would pay the dude the 6k make sure you have clear title and be done with it.. to small of amount of money to hire an attorney over.

@Sharon Tzib

good points all.. and I agree with you C class investments for out of state or newbie investors in my personal opinion are very risky... I have just seen so much financial carnage over the last 15 years from first time investors or out of state investors trying to make a go of C class properties.. I very much agree with your thoughts that if one is going to invest in these types of properties they need a partner on the ground that has a vested interest not just a PM... And especially if your leveraging these assets.. Its one thing to pay 20k for a little mid west cash flow C or D class home and pay cash for it you then get what you get return wise .. Its another to leverage with a bank that reports on your FICO... and with such small margins IE 100 to 300 a month positive cash flow it just takes one trashed unit or house to have a negative cash flow for a year. Not to mention the money it takes to go visit these places. I find it odd that with all the analysis people put into these deals they never include their travel expenses as an operating cost... If you live on the West coast and have to fly to the mid west that's going to be 1k or more if you have to travel with a spouse or sig other. And that is one months worth of rent for the year.. Then you take the leasing fee that's another month and right out of the gate your only collecting rent 10 of 12 months...

When one invests in A and B rentals the returns on paper do not look as strong as C and D on paper but they are much more predictable, with tenant retention , less travel, maintenance issues etc etc.

@JT Spangler

I doubt he bought a duplex in PDX for 85k ... duplex 's here would be double to triple that with not much greater monthly income.

@Seth B.

You may want to consider investing in Deeds of Trust instead of owning assets and all the risk's that go along with them... Especially here in PDX there are some very very good hard money lenders that place funds for clients on rock solid PDX properties and you could get 12 to 14% cash on cash very easily.

Most of the Out of state cash flow properties will never go up in value or if they do your repair costs to own them and keep them will mitigate any so called increase in value. In my mind these types of cash flow rentals to make sense you need a bunch of them like you eluded to and they need to get paid off quickly.. When they are paid for then that's another kettle of fish entirely.

@Jason Farmer

I fund a few guys that buy pre tax sale.. We did good on one of the bigger mid west towns this year.. I like the pre tax sale strategy lot of foot work but very rewarding probably the biggest % profit deals we will do in the course of the year... Inventory is limited otherwise that is all I would do :) Well not me but the guys I loan money to :). I like the my money and your hard work equation.

@Michael Lemieux

I think in many of these cases it just happens to be the property next door to the one you live on and it makes sense to add it to your holdings.

@Matthew Paul

and the same sales methods were used to sell recreational land in CA.. Primairly Boise Cascade and that created the Public Report that needs to be filed with the DRE when selling more than 5 vacant lots in a subdivision that is not served by city sewer water and elec.

located in Kokomo IN.... full rehab including new roof in the last 18 months.

rents are 390 and 450.00

I will finance with 5k and 1k a month no interest until paid.. So you can own this property free and clear in 3 short years...

Or I will finance it over 15 years do in 5 at 6%...

I advertised this right before I went to Hawaii a few weeks ago ( my mistake) I really could not respond to the people that were interested so for those that might have enquired already please do so again. I am back at work and can process this straight away..

Jay Hinrichs owner 503 789 2451 if interested or just respond to this post.

@Patrick L.

very good points Patrick I remember reading an article in Forbes about a firm maybe 10 or 15 years ago that was buying down the returns and buying in huge numbers...

Of course there is a lot more to this than meets the eye... I went to my first Tax cert course back in the early 90's nothing has changed.

And of course Arizona is very active in this venue as well from what I understand.