All Forum Posts by: Jay Hinrichs

@Dylan M.

Dylan the bay area and Socal property appreciation of the 90's created the Turn Key industry of the 2000's Investors have not been able to buy using the 1% rule or any of the other rules that are discussed here since the early 80's and maybe even the 70's.. ERGO some bright RE folks thought hey there is an appetite for RE but so many can't afford CA prices lets bring them Mid west homes and rehab and PM for them and we will call it "Turn Key" CA investor drove this market.. Then the foreigners jumped on the band wagon : Aussies especially because RE in AU is just like the BAy Area 500k and up so they also look at the US and think they can buy homes for 30k and retire. But what they don't know is that 30k homes by and Large in the US are really money pits and management intense and for the most part are not a suitable investment for arm chair quarterbacks. those that do well with them live with in an hours drive BY and Large not all but I would say a very Large %.

I bought a tear down in Barron Park for 795k in 89.. spent 300 building a new home.. I was going to move in but I ended up moving up to Napa Valley and sold that home and made few bucks.. Market was very soft in later part of 89 even in Palo Alto.. My other PA home I sold in 91 for 400k just sold at 1.6 also in Barron Park

@Marc Faulkner

Safe Act ? Owner occ issues ?

@Account Closed well if you go to Than Merrils seminar you can learn the secrets of how to buy SF bay area homes for pennies on the dollar :)

I would suspect where you can make money in the pennisula is when you buy a trashed house and do a nice rehab on it.. problem is like you said a crappy rehabber will cost you 500k plus... So when you borrow private or hard money its hard to make any money. I lived in Palo Alto for years. and even back in the late 80's we were paying 500 to 700k for tear downs.. would build new home for maybe 300k and sell at 1.2 .. now the market is double that.. 1.5 for a tear down spend 500k building house and sell for 2.5 thats what you have here. So most of the folks on this site talking about 30 to 100k rentals would not have any perspective .

now there are other areas of the country like this.. prime east coast.. and hawaii Socal etc etc.. but the bigger pockets podcasts are not going to help you with these deals. these are for real money dudes

@James Ross for those that live in the market and treat it as a business it works.. were this falls down is when someone from AU or CA buys one and has to rely on PM that this all falls down.. If I lived in your area or any area of the mid west I would do what you do and own 5 thousand of these and crate a whole buisness out of it and never deal with anyone below general manager :)

@J Scott totally agreed.. and when I took advantage of the GFC I personally bought 350 homes from 2009 until 2013 when I sold out. the only way I did it was that I had the persons buying the home and handling the tennats be MY PARTNERS..I provided the capital and they sourced the properties and did all the rehab and handled the rentals.. SO NO property managers to deal with.. I was happy to give up 50% ownership knowing that my guys that were procuring rehabbing and handling the day to day of tenants were my partners. Now not everyone can go out and buy 15 mil worth of rentals but on a small scale if you can hook up with the right folks this model works great.. big differnence when your PM rolls up to the house and he is the OWNER,, and your guy handling the rehab rolls up to the HOUSE and he is the OWNER...

@Tyson Cross being a bay area guy.. there are times a places were investors can come in and make deals.. 1989 to 1992.... 2001 to 2002... but even in 2008 melt down prices in the bay area ( and I am talking the pennisula not the east bay , north bay or solano county,) really held firm Marin , SF , Santa Clara, San Mateo, held value.. maybe the 1.1 mil home slid drastically to 985,000 but that was the extent of it. Most of the people on this site have no clue as to what values are like in the SF bay area.. heck they are buying rentals for less than the price of a car.. so no perspective at all.

Happy to grab a cub of Joe..

@Account Closed if your dad has 30 years of RE development he know more than 99% of people on this site why are you even asking this question in this forum

@Tyson Cross @Gregory Hodges waste of time.. there is no way on gods green earth that you can wholesale in SF and for that matter the peninsula from Marin county to south of San Jose,, maybe east San Jose.. the east bay Oakland Richmond you can do that.. However the competition is so keen as to be really a non starter unless you have 5 to 10 million liquid or more...

stick to the carolinas is my advice

@Rolanda Eldridge I would think you would have gotten many offers for your seller carry back note... Remember for every RE guru there is a NOTE buying Guru and those tout sending mailers to all that own Private mortgages.

@Mark C sell your property pocket the cash and then lend it out to trusted closed circle of investors. put a pref return on it apr wise then a little equity participation.. use hour cash to go to the bank and get a LOC that is used to lend and you can make far more than you ever would be a landlord.. CASH is king look at other options