All Forum Posts by: Jay Hinrichs

@Bill Gulley

In Oregon title loans pay day lenders are restricted to 36% apr.

In Oregon any loan made on a 1 to 4 unit residential building requires NMLS license.. If the loan is originated in Oregon but in another state that does not follow the safe act the originator in Oregon still needs the NMLS license.

Most states though that require NMLS license or brokers license will have an exemption of 1 to 4 loans in a year and or only 1 to 4 loans out at anyone time. For many small Lenders this exemption is all they need as they are not out there making 5 plus loans a year.. Especially west coast were 1 loan can be 200K to 1 mil easy.

@Kirsten Walstedt

I am not positive however I think AZ is one state that follows the safe act like Oregon and requires the license Kirsten may want to look to see if AZ has the exemption for 1 to 4 loans a year as I stated above.

Here is a brief list of the states on the WEst coast and what I personally know. Although I have not checked on exemptions in each state.

CA... RE brokers license NMLS license consumer finance license required

NV NMLS license required

OR NMLS license required

WA No license required for non owner occ bizz purpose loans.

ID No license require for non owner occ bizz purpose loans.

One can google many different sites that will give this information about each state.

However @Bill Gulley

as Bill has stated its probably one of the most violated transactions in the US either the lender and borrower don't know the rules or they do and its pretty hard to enforce on small time lenders.

Oregon did crack down on this, One " Private lender who I knew" who frequented the RIA meetings and was clearly in the bizz ( he had multiple millions out at anyone time) He received a Cease and Desist from the state regulating agency.. Also some who were lenders on the court house steps got C and D's... Whether one would lose all their money for a non licensed event not sure about that.. I know if you have a usurious loan that all payments go to principal and there can be treble damages. In Oregon any loan UNDER 50k secured by 1 to 4 units is subject to low rate Usury laws. Its why any Licensed lender in Oregon will rarely if ever make a loan less than 50K now this pertains to 1st position only 2nds you can charge what you want... But most individuals will not know this and most borrowers will not know this..

@Sharad M.

Hope he comes back he defiantly had good things to talk about

Anyone heard form Him?

Last I heard he was going to mentor some random Bp members.. And maybe take them for a ride in his G 4.. which I would sorely love to do.

@Account Closed Kudo's to you and your wife for not blaming the poor performance of this asset on your lender like so many investors did.

being a lender and being on the butt end of these deals your the type of person I would go to the matt for... And if you every need anything in the future please contact me.. Your the kind of Character borrower that is so lacking in the bizz... again good on you for not burning your lender.

@Clary C.

if you do not have the funds to pay cash you have to options as an honest bizzness man and seeing that your a marine I would assume that you are.

You need a money partner that has the funds and you need to partner with them. If you have the funds personally deposit them in the LLC account.

If your trying to buy properties and flip them with smoke and mirrors your late to the game I am afraid.. especially in the hot markets.

Depending on the people asking me I will provide proof of funds on deals I would be funding or going in on. And my Proof of funds are CASH.. And they will sway the deal in most cases I have done that for a few BPers ..

There are also those in the US that sell Proof of funds to folks like you. They will charge a fee... I provided a few POF to Bpers as a courtesy. But I kind of like the folks I was dealing with and did it as a favor.

JLH

@Dawn Anastasi

Same issues they moved out of state and now are absentee landlords and the property has not performed no getting around that.

My point though was I have to hand it for them for not walking and honoring their obligation when they signed their promissory note.. So many in their same situation just chucked it in and RIPPED rents and defaulted as we know that scenario is not in dispute.

@Dawn Anastasi

typical out of area experiences.. this one is one of the few that did not go into default.. have to hand it to this investor to keep his mortgage up under the circumstance.. Most in his position walked.

@John Wang

There is the rub any decent park on the west coast will NEVER sell for a 10 cap your wasting your time. the west coast is not the mid west or deep south were parks are Ghetto settings ( 15 caps)... Parks on the west coast even older single wide white trash ones are cash cows.

You may luck into one out in the boonies like mid WA or Aberdeen type setting but no way on the I 5 corridor.

I sold my Vancouver park 24 months ago at a 5.5Cap and it was a mix of single and doubles. I sold to Taylor group out of SF and they own about 100 of these type of parks and they paid cash on the barrel head.

Its all about collecting rent.. In the high cap rate parks you will have defaults on the low cap rate west coast you can bank the rents just like a security. the only time I had a default was because of death of tenant then the relatives would step in and pay.

@Johnson H.

Much like rent control in Manhatton one of my associates has a co op on about 54th and his rent control is 2500 a month.. fair market would be 15k a month.. Berkeley has the same issues. AS well as mobile home parks in CA.

@Will Barnard

Well since I am new to BP I am 6 years behind this thread. At the time of Katrina I was the largest HML in the state of MS. I also bought 11 Go zone SFR's and it was one of the best tax plays I ever made.. Along with buying an airplane and writing off 90% of it year one.. Between those 2 moves I paid very little tax.. But I also saw a ton of riff raff come into the go zone.. And all manner of folks trying to skate around the rules. In addition I got audited by the IRS the first year I took the Go zone bonus depreciation. Many unscrupulous dudes were selling these to anyone when In fact to take the Go Zone bonus deprecation the investment had to be part of your trade and bizz that you were basically full time engaged in.. So a doctor buying a gozone home got it disqualified.. Some like me who was a lender builder developer RE broker I easily qualified and my audit took only 30 minutes.

In addition you had to BUY NEW construction existing houses did not qualify I had a friend from Oregon buy a used home and said he was going to take the deprecation I had to save him he cancelled the deal but the guy selling it to him told him NP

Caveot Emptar with all these things.