All Forum Posts by: Jay Hinrichs

Maybe join with some other like minded folks who have amassed some cash and do some value add investing for short term but high gains and keep going as you increase your cash

@Kristin Horowitz

If you can make a move to the mid west you can buy your dream farm for 100k not 1 mil.... but then you have to live there :)

@Henry M.

And as a follow up to the TIMBER days.. you will love this.. WE would get 100% advances from the Mills many times this paid for the timber and land at the buy. So we not only profited on the Timber but owned the land free and clear... And guess what the TERMS were... No points and NO interest just had to deliver the logs within 12 months. And they scaled them and if you were short we had to pay back if we went long we got more money.

My main mill was Menasha the company out of WI.. they had a large export bizz on the Pacfic NW our logs went to Japan, China , Korea then what was left over went domestic.. In the day talking the 90's when the Japanese were rich they out bid everyone for the premium logs.. but that's a whole nother story but a very fond one.

@Henry M.

I don't do commercial.. I have owned MHP parks and mini storage and some office , mainly offices that I located my company at.

pretty much just land Timber and subdividing, single family and lending money... My favorite of all though TIMBER by far.. Love the industry Love the ethics that loggers and Mills have... And love the smell of woods and fresh cut sits... But as housing crashed Timber crashed with it.. Although I just sold my last timber holding to Stimson lumber last June.. We had 750 acres I subdivided the front 120 acres into 14 parcels. and those sales almost paid for the land.. So we did pretty darn nice on this one. And in the day on our timber deals profits were 40 to 200k or more per job... One year we did 82 jobs.. That was a good year.

I had a partner that was the logging end and forester and office staff I handled the LOC's and the data base's.. Kind of like the YELLOW LETTER before the YELLOW Letter was invented.

Best

JLH

@Jerry W.

@Engelo Rumora

Correction 5 figure profit on a TK we all wish for 6 figure deals :)

And yes Engelo you would think so, its all about networking at the end of the day.. But from a REaltors stand point and I am one as you know ( although don't practice anymore) its still a lot of work to take a transaction through the process's and frankly I would not do that for what the agents in the mid west make.. Way to much work for the dollars so I can see both sides.. Not to mention liability as an agent in a transaction there is liability so one needs to take that into consideration.

@Henry M.

I have been doing this for 40 years.. ON the HML side of things well over 2000 transactions. ON the wholesaling side 250 is a conservative number.

spreads depending on deals can be as low as 1k for transactional one day to one week deals.. To much bigger numbers.. But as a general rule out here in the Oregon market 15 to 25k on a flip is a good HONEST number.. And of course I have done far better on some deals.

the Carolina deals are going to be pretty good I am thinking 50k ish in 6 months.

New construction we shoot for 10 to 15% of gross and we hit it most of the times and sometimes 20% if we do better means we got a super buy on the dirt.

At the end of the day I shoot for all my activity to return about 30% apr cash on cash that's the goal. Its all about having a nice amount of cash to work with as you state cash is KING always has been always will be.

What would the passive investor looking for a TK property think is a fair number to buy a property off the menu.. IE

1. profit for someone to wholesale a deal to you and you take it from there

Hard to do out of state and can be very risky

2. they provide the wholesale deal and make a few bucks flipping it to you. Then they charge you a flat fee to do the rehab..with you as investor paying for rehab at True cost. What would that be worth?

3. sell you wholesale deal make a few bucks... rehab it for you at cost make a flat fee above true rehab costs. Then refer you to trusted PM they know in their market...And charge a little for that introduction and hand off.

What does the collected wisdom think the profit at each of these steps would be. The investor provides all cash expect maybe the TK operator since speed and reaction to the market will not dictate waiting for a response from a buyer would be in title to the property then flip it to you for small gain as stated above all cash provided by buyer. Now of course this only works for cash buyers those looking to finance are stuck buying a fully rehabbed home that will pass inspection and appraisal for bank.

What say you boys and girls

@Jerry W.

Depending on price point Jerry the commish may not be worth the guys time. And he may only be a realtor to have access to MLS so he can buy the wholesale deals the day they are listed...

If your talking a 50k property there might only be 1500 buckaroos in it for him as opposed to a 6 figure profit on his or her average TK deal sold.

@Henry M.

Henry its all relative... when your talking about 450 to 700k homes in Vancouver BC that is the median so those are not high end. Same with Seattle SF PENNISULA Better parts of LA and Socal.

I get your point though and agree... your market in Austin is akin to what we have here in Portland with a median at 260k or so. And high end would be considered anything above 500 to 600k...

At the end of the day if you have the financial backing or personal Cash you can start at whatever level your finance's dictate.. Nothing different in wholesaling properties, its still the same principal of buying low and selling for more.. Just in certain parts of he country you need to add a zero or two to the end of your numbers. For me personally I work all price ranges.. Right now I have a realtor in a small mid west town buying every wholesale deal that comes on the market we are paying 7 to 15k per home... then in FLA my deals are 50 to 60k wholesale I just did a few in the Carolinas were they were 200k ish... And then in Oregon I am not wholesaling but building in price range from 200k up to 700k... So its all fun.. But the bottom line the transaction to close the 7k wholesale deal in small town mid west is the exact same paper work time and effort as selling a home for 500k or 5 million. And I think That is @Aaron Mazzrillo point he only wants to work on price point that is his median and or higher as the pay days are greater and the effort is the same. Or basically the same. When rehabbing higher end your going to take more time bigger homes are longer rehabs and your going to put obviously more expensive stuff in them etc etc.

@Steve Babiak

in the ultra competitive markets I think your suggestion is almost a must.. Especially for those that are trying to buy real low end housing. Were the flat fee's may be 2k a side..