All Forum Posts by: Jay Hinrichs

@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.

@Ann Bellamy

@Kirsten Walstedt

As Ann said in much greater detail, if you follow that road map you will be in good shape.. and I can't stress enough her comment about only making 1ST position loans... Junior loans are very risky and Trillions have been lost in the last 5 years with wiped out Juniors. Its really great time to be a lender values settled down.. One last thing be very conservative on LTV.. Don't let anyone talk to you into 80% or anything like that.. My bar is 65% with 50 to 60% much more comfortable. And you can get those LTV's if your competitive on your rates.