All Forum Posts by: Jay Hinrichs

I was talking to a fellow bp er this morning they are pioneering a underserved market and doing well.. And this just dawned on me as we were e mailing back and forth.. What can I bring to the bizz.. Well I am thinking I could Franchise TK for those that need the systems and ability to get off the ground.. So just looking for feedback.

Start Franchise or probably just closely held company. I provide.

1. All capital to A and D first 20 homes. ( critical and the most important )

2. keep 10 home in inventory at all time.

3. I provide 5 year financing when needed.

4. I provide contacts to RE agents and trusted Marketing companies

You for lack of better wording are the Franchisee you provide.

1. source the houses

2. provide rehab crews

3. provide management in house preferably.

4. pioneer an under served market or a market were TK has not been but is prime for.

5. Sell homes TK at a very competitive price vis a vi currently on the market.

Or just wholesale Franchisor ( me) I provide capital and marketing outlets

Franchisee ( you ) source deals .

Again working underserved markets that are up and coming.

I provide other techniques I used to build up 350 TK homes then sold last Oct.

To qualify you would need:

1. Full back ground check criminal and credit.

2. bank and personal references

3. some track record of success.

Maybe I am way off base here but would like to hear some feedback both pro and cons.

For our West Coast investors I do the same but we keep 5 homes in inventory and we retail them all...Same with PHX or Vegas.

@Rick H.

Rick this is exactly why I call overages bizz the private Eye bizz.. you need to have all the tools tenacity and techniques that a private investigator has. Because that's what your doing your chasing down monies that have gone unclaimed because someone died intestate or any other myriad of reasons.

And your right its hard work the best at it I know is a company in Central Cal. And they have contracts with big banks and give a host of services in this field.

I just stumbled on it when this company called my mother and told her they found money sign this doc that gives us 50% and we will get it for you. My 80 YO mother called me.. I new it was probably tax overages for all the property we have up in Lake Co. CA. I called the tax collecter and made the claim for my mom.. Took 30 minutes. Now I check every year and sure enough there will be some odds or ends property some investor bought at tax sale and we will have some overages to claim its become a yearly event for us.

@Dante Nava

your working as a private investigator is how I look at the overage lost money type of work... and your right its time consuming and you will need lexus nexus to chase down people and next of kin.. For those that like that detail work it can be rewarding.

Many counties though frown on it.. As the county see this as profiteering from their point of view all the claimant needs to do is fill out a form and they have a hard time thinking someone who does it for them should make 50% or 30%... Some of these claims are in excess of 100k.. So you can see a county worker making 36k a year get their feathers up when a person with no real claim to the funds is getting some big pay check for what they believe should cost nothing..

@Account Closed

Cool see you there.. I have been a guest there a few times. and they are one of the great RIA's in the country..

One thing I find humorous though Is when everyone gets up to introduce themselves and what they do .. There will be 100 plus people and true to LA every other one of them says they are a private money Lender I can just see Bill Guilly just rolling his eyes..

Great group I have done many many deals with them over the years

They bring me in to balance the whole TK thing.. Now don't get me wrong there is a place for TK for sure... Just need to try to keep perspective.. And a lot of what I will speak to will be how to find fix and manage after the fact and market perspective.

And What I mean by that is do you go to a market that was crushed or invest in one that never moves.

@Mike D'Arrigo

I have also been on the radio Station that Mike's show is on,,, many times over the years.... Its really a small community.. I started with Rock and Roll radio show.. Mike Harris show Mike and I did a ton of bizz in the day. Nick Vertucci Jay and Bill in San Deigo and on and on.

@Dawn Anastasi

No I am sure your not TK provider because I have never heard of you or your company and since I have funded a good many turn key guys in my day I usually have pretty good pulse on that. And Milwaukee to my knowledge is not a turn key market per se.. Not like Chicago, Memphis , Indy, Atlanta , Charlotte, Orlando, Jackson, KC, St Luis, Detroit, Etc etc.. Of which I have loaned in each of those cities and some I have done hundreds of loans.. I was the largest Hard money lender in MS for many years.

But when you have posted some of your deals I am thinking Milwaukee is ripe and wide open for a turn key play..

I mean the city has a great story,,, Beer, brats.. Harley Davidson,, the Summer fare on the lake.. great colleges Marquette etc etc. And of course Cheese.. My grandfather had a cottage upon lake Poygen ( Winniconne) I spent my summers there in the 60s again probably before your time.

Corkage there was to bring a six pack in so you did not have to pay restaurant rates for a can of beer LOL

Keep up the good work

@Dawn Anastasi

I just remember my time times in Milwaukee.. Being from the WEst coast were we have no ethic division or anything else ethnic at the time I went Cupertino High School you may have heard of Cupertino ( now home of Apple and a bunch of rich engineers and average home price of well over 1 million) but anyways we had NO ethnic diversification 2k student population we had 2 African Americans. A few Hispanics maybe 10 Chinese,, a few Japanese ( my best friend was Japanese) then I would go to your fair town and I learned about segregation on steroids. Now this is probably before you were born.. My grandma worked downtown at the version of Nordstrom in the day. And of course she did not drive.. And my Grandpa would not let her take the bus ( which she usually did) they lived in Wauwatosa... My cousins lived in Brookfield and one lived on Pewaukee lake...

My point is they were german, and you had the Polish neighborhood the Italian the Black the etc etc and as a nieve kid from Cupertino I did not even know what a Jew was ...

So my point and I am sure your wondering Is when TK operators pitch mid west properties to CA investors Most CA investors have no clue as to what its like there and how the neighborhoods are segregatged between ethinic and racial lines. We just do not have that here ...

@Dawn Anastasi

cool glad your an equal opportunity land lord.

I give all my tenants a Turkey on thanksgiving and a ham on Christmas and have them all over for a blow out.. You should see it.. Nothing like our tenant base coming to free food and drinks :)

@Account Closed

Go to the Fibi event in Manhattan beach on the 8th I am speaking there :)

other than that google turn key in the city your interested in . and go direct.

Then make those turn key companies in the market your interested in show you that your getting a deal.. And keep in mind this is a for profit bizz.

If you were to try to do this on your own you would spend 5 to 10k in travel time and expenses. so if the local guy is making 10k on a deal that's normal you want to try to not buy deals that are 20 to 40k over what you can do on your own.

Time is money so is lack of knowledge of a market. I have trusted TK guys that I have been funding for the last 15 years and they are local don't have big marketing budgets and if you can get to them direct you will get a better deal that's bottom line.

Remember everyone in the bizz needs to make a buck..

1. wholesaler

2. rehabber

3. TK company

4 marketer

5 super marketer

Each and every level increases the purchase price..

Its the same with the very deep conversations regarding GURU training.

Everyone on this site *****'s profusely about paying gurus for training but there is little mention of those that sell houses for far over true local value.

And that is a mid west and east coast SOP... So its Caveat Emptor

The folks on this BP will gloat about how they bought this property and sold it for a big profit.. Well its oK for the everyday man but let them be TK or marketing company then they are branded as bad ....

So in my ever it to be humble opinion there is a happy medium.

I am not a proponent of low end rentals like a lot of the folks on here deal with because I have first hand experience and knowledge of the carnage it created with very nice folks in CA that bought the dream and lost all their money to the NIce TK or Marketing company that said.. Like were you live Invest were you can afford or some other clap trap like that.

@Brie Schmidt

@Curt Davis

@Mike D'Arrigo

Aaron Mazzillo

I think what we all have to realize is there is some in the bizz that get the deals hot off the press... Unless that is your vocation you will never get those deals.. Then as the properties move up the chain you have another level of investment and that creates a return on investment for this layer of the onion. then you keep moving out layers of the onion to the ultimate retail buyer whether it be local off shore or CA based. and they pay top dollar I think we all know that's the case... But its all done for them..

So playing devils advocate.. How is someone from out of area going to compete against local investors. Answer they are not... So then you move to rehab ( how can you rehab a house from a afar) well not very well in most cases but in some you can and if you can you count yourself lucky but you don't know your lucky because you don't know what you don't know)

I think what investors could do for SURE is cut out the marketing company and go direct.. Why buy from some person who is just hawking properties. seek out locations you want to invest in and then find the turn key guys in that market. If your buying from some national marketing company that does not own the property and is just taking a fee off the top then your paying one more layer than you need to pay..

Each market if you search hard enough will have locals that will give you TK deals. after all they are going to watch after them after you buy them the national marketers only make a commish and have no interest in the company or on going success of the property.

@Dawn Anastasi

Its a sad comment that you could not tell your tenant your the owner.. I think this goes to how precarious Low end rentals are.. With my A class rentals I have my tenants over for BBQ's how many of you mid west folks would invite your tenants over to your personal residence ??? I submit very few.

Low end rentals are just plain tough , I have owned hundreds of them so no one can sugar coat it for me, Like its the owners fault that things are not going right you must not be reading BP and learning all there is to know.

Now if I am off base here and you have your tenants over for dinner or BBQ I stand corrected