All Forum Posts by: Jay Hinrichs

@Howard C

@Account Closed

@Jon Holdman

Harold depends on what state you are in.. In some states the QCD will not be insurable going forward in other states the QCD suffice's. Its always best to get title insurance as stated above.

To answer your questions though. As Marie pointed out very few lenders in this day an age realize a property has transferred unless you specifically tell them. And they very rarely invoke their alienation clause in the Deed of trust or Mortgage. However depending on the state if you take title and a lender figures it out and they invoke the power of sale you will have between 90 days ( Georgia MS ) to 5 years ( NY FLA ) and every where in between.

however not to confuse what folks might think of HML IE no credit and no money. from my experience with the Crowdfunding and I have closed 5 deals so far with them ( not as big as Bryans) is that the crowd funders need to do very good due diligence on the borrowers. And there has to be skin in the game etc etc. So its important point I think to make that those with no money no credit and no experience think they can get crowd funding for their deals. Not going to happen in a blue moon

@Scott E.

Well buy and large from a lenders perspective.. Your brains and our money did not go over very well in the melt down. So the thinking is hey if they are true investors if they don't have a few thousand to put into the deal then they should not be in the bizz ...

@Bryan Hancock

Good work I know you worked hard to put this together.

Crowdfunding is the new HML on the block

@Scott E.

that's a lender that wants to stay in bizz

@Ali Boone

the issues I experienced where I lump turn key into this category is:,

West coast marketing company selling LA based investors Mid west or east coast properties.. that's what I call turn key. With many or most buying their very first investment property.. This is why they go turn key.. but they still don't know what they don't know. And this is what leads to negative issues with out of state investing. Not for all for of course but for a lot of Newbie first time investors that seem to gravitate to the turn key model regardless of where it is.

I mean you don't see anyone selling west coast properties as turn key like you do in the mid west, at least I have not... West coast investors drive out look at what they want usually work with contractors get their PM and on they go.

And when you have time zone issues its just that much harder to manage these as opposed to something that is close to where you live and work.

I just sold in October my 350 house out of state portfolio.. And I still own maybe 20.. with 11 of them what I would consider easy to manage. But they are all new construction that I paid 150 to 225k for each.. So the quality of the tenant is far superior to the 10 or so Semi Ghetto houses I have left.

but anyway that's my experience and what I have learned over the years.

Selling my rental portfolio was just like selling a big boat.. your happy when you buy your big boat you poor money into it then your extatic when you sell it.

@Ali Boone

@Marco Santarelli

Ali as a follow up to your comments, I personally believe that the effort needed to implement and manage turn key investments also is directly related to the particular asset.. IE what price point and rental amount are the investors dealing with.. By and large a 1,200. market rent tenant who is gainfully employed will be much less management intensive than a 100% section 8 tenant in a 600 dollar rental that someone bought for 40k.. You can have rock star PM but if they are managing low end sec 8 tenants then they and you as the owner will have a lot of interaction, at different times of the year. And they don't have to be Sec 8 just lower end tenants and properties in general, and of course the age of the property.. If your buying new construction or near new these are generally less management intensive than 60 year Old homes in the mid west markets.

My experience with the turn key product is that the owners of these can be their own worst enemy.. Not being responsive to the PM's requests. Arguing over little dollars and things that go wrong. I have seen it time and time again. Tenant wants something fixed.. PM try's to get a hold of turn key owner.. TK owner takes 3 days to respond.. Tenant gets upset etc etc.

And or worse TK owner is under capitalized and major maintenance item comes up and they don't have the funds to fix it. IE condenser unit gets stolen, which as we all know is a national sport in the mid west.

So my point is the closer the property is to the owner the easier it is to respond especially if you are in different time zones. And of course depending on the quality of the property itself.

@Francie Bea

good job.. I bet you have come close to setting a record for a student starting from scratch and doing 16 deals in 6 months.. Very few experienced investors do that well.. pretty amazing

@Ali Boone

@Jon Holdman

"Would rather kick back and just collect the checks." Ali this is the farthest thing from reality.. Turnkey can work no doubt but its not just kick back and collect checks.. You must do extensive DD on your provider, you must have independent inspections of the rehab.. You must work with and manage your PM on a monthly basis. To give the public the impression that turn key is just kick back and collect checks is really dangerous in my personal opinon and experience which is quite deep in the space.

@Bill Gulley

your right bill I guess since I am a NMLS licensed mortgage banker I can never be a private lender in the strict sense. But I don't run my business that way I am much more personal and private in my dealings.. IE no web site and only do deals by referral although I will be closing my first one for a BP reader next week. But its really not a loan in that sense we decided to do a JV