All Forum Posts by: Jay Hinrichs

@David Krulac

David I think anyone who has been buying distressed properties any length of time has come upon these situations... I have had maybe 5 or so over the years but 2 really stick out... One took 12 dumpsters and there was just little paths running through the house with stuff stacked 5 feet high everywhere else.. But half of the stuff was in the big garage.. And ( storage owners beware) they moved a bunch of it to a storage facility that was advertising 2 months free rent.. I hate to see how that ended up for the storage facility.

The other one I just sold "as is" because it had a lot that could be divided off. I never touched it.. Put it on MLS with the following warning in the private remarks..( Caution Hazmat suite recommended) I never even closed the doors.. It sold in a week or so to a developer. It is amazing how some people can live in all that filth and mold and the like, these folks they were probably late 70's that moved out of the house.. I guess they just acquire immunities to the bad stuff... At the end of the day I would think this is definitely some sort of mental illness

@Matt Lefebvre

Matt as one who grew up in a Real Estate family bizzness ( could sell a property by the time I was 9):) My dad took me on almost weekly to his showings etc etc..So I learned by osmosis. I then got my CA RE license at 18 and my brokers at 20... However I did take some College courses as well. But there is nothing like actually working in the industry.. Once you have a basic education there is nothing super complicated about RE. Its buy low sell high and mainly focused on Laws keeping you compliant. I am sure your plenty smart enough to study and pass the test right now. What you may want to focus on though for continuing education is how to become a very proficient salesmen... Sales training and education will take you a long way from separating you from Book smart agents and agents that make a killing because they are great marketers and salesmen or Women as it were.

@Alison M.

I agree with your thoughts about ending up with a dud... I did this once in a bidding war with a next door neighbor figuring they would want to buy the lot at some point.. Well that was 8 years ago and I still own the lot :)

@Brie Schmidt

Renegotiating or are you passing? Were they fresh rehab or just tenanted properties that needed maintenance?

Many times its the deal that you walk from that makes you the most money:)

@Lawrence Ratliff

Well two words about Texas HIGH TAX's but in all seriousness you can't help but notice the economic drivers and then the market is feeding on the herd mentality right now...Its Soup D Jour Like Atlanta was a few years ago

Phx and LV before that... it all goes in cycles.

@Account Closed

we call that limited representation listings works nice in a brisk market.

rarely do I meet the other agent in person unless we are doing a pre sale on new construction then its every week :(

@Account Closed

@Robert Bowles

Robert would be interested in your meetings we went round and round with DFC on our investment model ( our attorney told us we did not need a offering memorandum state said we did) we paid a small fine and created the document... Our attorney has told us that if your just a principal buying an existing Note for your personal portfolio Like off of Note exchange website or something like that.. that no license is required.. However if you are taking compensation selling notes to an Oregonian or doing business in Oregon then you need the NMLS license ( that goes for notes in any part of the country and regardless if they are quote un quote for commercial purposes)

For our note business we are headquartered across the river in Vancouver and the State of WA is like many states loans that are for business purpose's are exempt from the NMLS license requirements. WE do NO business with Oregon Notes or Oregon Investors.

Now I am not up to speed on the servicing requirements although I did make an offer to buy a portfolio of notes and the selling servicer would not sell them unless we were a licensed servicer.. So there is that aspect one needs to look at.. As that probably relates to Owner occ as well. but not really versed on this aspect.

Stewart the note business has treated me well for many many years.. And is a great alternative for steady returns as opposed to trying to own and run rentals. But its not without its pit falls.. I have been buying notes for my IRA since the late 70S when self directed IRA's became available to self employed and I was one of Entrusts first 500 clients when they started in their little office right off of Lake Merced in Oakland

@Bob E.

Bob not true in all states.. In Oregon any financing of a 1 to 4 unit is covered by dodd frank..... although if it is investor to investor the paper work is minimal but you still need an NMLS license.

I believe AZ is the same way .. At least that's what I have been told

State of WA were I have an office does not require the license in the scenario you describe.

@Aaron Yates

and as a follow up.. builders and infill builders usually have a pretty good handle on their inventory and how to buy it.. Along with realtors that specialize in New construction.. Most builders ( me included ) have realtors that are our bird dogs..not necessarly to sell me the lot but to get the list back. Most all the time they take no commish on the lot purchase with expectation of getting the listing and creating their own inventory.. builder realtor teams are the norm in the building bizz

@David Krulac

David out here in Oregon we use 4X to 5X and of course as the value of the house goes up say North of million you can pay much more for the dirt.

So when I am looking at buying lots for say a 250k sale I would want to buy those for no more than 50k.. And then it depends on system development fees, school impact fees, transportation fees, building permit fee's.. those all have to be taken into consideration.. In Lake Oswego were I have 2 under construction right now 2700 sq ft and 3500 sq ft all in for permits was 45k

I have 3 going in the Carolinas right now 1800 to 2000 sq ft all in permits 5K

Also sub cost to build are vastly different in different parts of the country. Look what they can do in Texas perfect example of all in and can make a profit selling a brand new 1500 sq ft home for 80 to 90 a Foot.. Our build cost range from 65 to 95 depending on the house PLUS permits.

As I stated before this is just another way some company makes 1k a deal and maybe those buy a few lots just to say they did.. they bring in 100's of thousand with the public and maybe buy or payout a few with no intention of building on the lot or anything else.

Its just Guruism in my mind.