All Forum Posts by: Jay Hinrichs

@Carly Staehlin

careful to keep your SDIRA away from any trade or business you engage in as those could be deemed a prohibitated transaction.. basically SDIRA needs to be invested in things that are arms length.. Use those funds for your REIT investments. I think using them for your food cart bizz could be a problem if you were challenged...

I too had a home in BC and go there twice a year fishing.. and I fly my plane up to the Puget sound and Vancouver Island often during the summer for a quick day trip or over nighter.. One spectacular part of the world no doubt.

@Corey Dutton

one of my partners in the Napa valley who owned a winery and many vineyards when he was buying a new vineyard.. Most were 5 to 50 million. he would just put in that the contract was subject to his attornies review and approval without naming many or any specifics.. then give a time line like 30 days. basically giving him a free 30 day look.. But of course he was a known buyer that carried a lot of weight.. For me a little guy, I just put in a 14 or 30 day DD period without any specifics Just saying it has to meet my intended purposes.

@Brie Schmidt

I just closed one today in Chicago loan request came in one Wed. I funded and recorded today.. it can happen just have to know where to go:)

@Joel Owens

@Marc Dufour

Mark for years at least until 1990 10% was the going rate for land deals. so 5% in my mind is a deal.. land takes much longer to sell normally.. In my day of selling land in a 15% to 18% interest environment it could take years to sell a listing I routinely would not take listings for less than 15% and went as high as 25%..... I always double ended my deals.. in those days MLS was in its infancy so you had to spend major bucks in advertising to sell land.

And on top of that I would sell for 10% down give the seller the 10% and I would take the monthly payments until my commission was paid.. Say I made 5k or so I would get the first 5k of the seller carry back.. I had such a good residual income coming in during the middle 80's because I got creative and made deals. work..99% of agents would say hey I need to be paid at closing I cant take commission over time, Me I just banked these to the point were my residual income was ridiculous.. I only sold owner occ properties with owner carry terms. I would not even deal with anyone that need to be cashed out or get a loan. So I could advertise owner carry interest at 8% when market was 15 plus. I would advertise 10% down and give the seller 100% of the proceeds so to the seller it was like getting 20% down and they did the deal because they got cash.. AVerage payment ( this is CAlifornia was 500 a month) I would get the payment for 2 to 3 years.. so after a while I had a nice 7 to 10k a month coming in residual. when agents were starving in those days.

@Bradley White

@Account Closed

if your going to flip contracts then you need cash buyers in most instances or transactional funding.. Its a dicey situation.. In my mind when I work with bird dogs I know I will be paying them or they wont bring me deals.

On the flip side when I have flipped plats to DR Horton,, they just wait in the wings and see if I can perform.. If I am flipping a plat to a builder I better have the cash to take it down lest they not close and go around me and buy it from the seller.. Cash is king

@Mark Holbrook

Mark that is a great point and a huge point, But I have been audited on this very issue.. AS long as you can prove you are actively engaged in the bizz you could lose that status, just having a license is not automatically make you a RE professional.

Post Katrina you had the GOZONE act.. many in the south will remember this.

any new builds got 50% bonus deprecation section 179. Well you had to be a RE professional to take the deduction and or use the new build in your trade or business IE car deal builds new store he got 50% write off.. Many not so nice operators were talking non RE professionals doctors dentist etc to buy these then doing LLC's and most of those got audited and thrown out ( if in deed they got audited) I bought 2 mil worth of rentals in Madison MS and took the 1 mil write off over 24 month buying spree.. AND I got Audited but it last 30 minutes I did not even go my accountant just showed the auditor all my activity in the bizz and I was good to go... So I am now just telling these as they come vacant.. So at the end of the day I have some recapture but I save 500k in income tax in those 2 years and put that basically to good use

@Jennifer Lee

I hate it when I am 100% right... usually there are those that disagree with me. But after 35 years at this game some stuff sticks

@Jennifer Lee

Jennifer for the exact reasons you mention about how much work it is and how little you get paid trying to sell homes to INVESTORS in the low end.. I am amazed anyone can get a realtor to work for them.. Many times I pay them a bonus on top of their commish because I know they are not going to work for me for peanuts. So when I see posts here on BP raging on agents because they are not busting their butts for a client that wants to maybe buy one 20k house that's the reason..

In addition that's why the guys that do this for a living and buy 2 to 10 properties a month get the deals the REaltors take them there first they know the guys have cash will close and do not have to work with newbie investor that can drive you nutty.

Just another perspective and a Reality check for those that rag on RE agents.

@? Roger that... Love that Aussie wine.. Two Hands cab shiraz yum

@Douglas B. Many have tried and many have failed with what your describing, I have a friend in Oregon that bought a 80 unit buidling in Memphis,, I told him don't do it.. " he basically said the exact same thing as you" give the tenant a quality unit try to get the best tenant etc etc.. Well they just sold and lost 400k on that one. they did all the rehab put in new play structure ( destroyed within 2 weeks. ) Bball hoops destroyed in a week.. BBG pits fights and shootings when the tenants went at it....

Personally I think if you want those really cheap type units you need to get out into the country.. find small little towns ( they are all over the midwest) Rents will be much lower but you will probably get them and your properties won't get trashed.

I have done some bizz in Kokomo IN.. thats a nice little city an hour from big city. nothing much happens but. I have never had a break in or any of the other issues you get from inner city Section 8... But I guess if you can live there and handle it you can give it a go.. those that live out of state and try it by and large get wiped out over time