All Forum Posts by: Jay Hinrichs

@Bill Gulley when I was still lending one off to the general public I had a subscription to Lexus Nexus and they had a mortgage lender fraud algorithm since we could not meet everyone we dealt with.. (based in Portland lending to Socal investors) we ran them through this.. And about 10% were providing false information.

With a lot of deals in ones past you deal with all sorts of good or bad.. And a bad apple who might get taught some of these more creative RE techniques can do harm to the industry.

Lots of sociopathic personalities out there,,

however at the end of the day buying rehabbers is not a highly complicated business as you state

@Bill Gulley those are reasonable steps to take... My thought is if you really don't know these people, the last thing you want to do is educate someone who lacks character and then unleash them on the public.. As you know and as I know being a lender there are all sorts of yahoo's out there that think of RE as get rich quick. And if unleashed on the unsuspecting public can cause harm to the industry.

@Duncan Taylor @Bill Gulley Interesting, I think most veteran RE investors have done this many times over their careers. I think of all my employees that have come and gone and learned the ropes from us while we paid them and then went off to be successful investors in their own right. Like the one post about having agents waste your time in the RE bizz.. Seems to me some very good advice would be to these newbies is to go get a RE license in the state you work.. Century 21 has really good training for newbie agents.. they learn and get the basic skills before they meet with someone who is going to show them how to do a deal..

I agree with Bill before someone is mentored ( or I would call your mentoring an advanced course) they should have the grasp of the basics and the ability to execute.

Meeting some stranger on line and offering to help them seems like internet dating to me. Who are these people what do you really know about them etc etc.

How would you vette a potential mentee to make sure they have the character to be turned out into the investing world.

@Cynthia Chang @Engelo Rumora Utah based MLM turn key operator. they engage Real Estate agents in a MLM manner to bring in investors.

@Adam Johnson Would you say the free seminar gave you the motivation to take action of some kind?.. like in your case going to the library and DIY study and learning.

Seems to me some people that would spend 3k to get going , get materials and motivation that could be worth it to them.. 3k in the big picture of real estate ( take your 2 mil portfolio) is a drop in the bucket. And if as I said it motivates someone to take action then its Cheap and well worth the money.. Many people are not self starters and need to be motivated.. REI meetings in our market are only once a month.. And how much can you really rely on some mentor to spend time helping you out, successful RE investors are bizzy people by and large.

The theme on BP is why spend money when its all here for free, while this is true I really don't know many business's that you can start with no up front capital. And there are all sorts of bizzness's as we know where the owners maxed out credit cards loans from family etc etc. to get their bizz off the ground. So why is this any different than those situations.

In my mind if someone has no cash and is trying to get into RE I would consider them extremely undercapitalized.

@Daniel Phillips you can look for the course's all those that sell investment advice on e bay or other sites. buy them for a few dollars. There is a lot of good BASIC information in most of the written material presented.

When your starting out terminology is a big learning curve. You just don't know what you don't know.

And the REI's will most certainly always have some experienced guys that will give their points of view on how and what to do.

Since your in WA. one thing to remember is our West coast market is far different than the mid west.. Far more competitive tons of capital chasing to few deals. Unless you get out into the very rural communities that were logging or fishing based that have crashed. anything in the Metro areas is going to start at 100 to 200k per deal for the same house most of these mid west and north east investors pay 10k to 30k for or Less. And the rents could be less than the mid west rents. West coast is a tough place to be in the rental game if your just starting out. Flipping requires significant capital... then there is birddogging which can work.. I buy from bird dogs and enjoy those experiences saves me a ton of time and I am happy to reward them

@CK Hwang I sold my Atlanta holdings last summer. I entered the market in 2011 a year or 2 late unfortunately. and exited in 2013 with very tidy profits.

We bought courthouse steps and sold to hedge fund from Carmel IN.

We rehabbed and had them all tenanted were picky were we bought etc etc.

What I learned in the GFC is to take profit when you can. we left meat on the bone for the next guy got great returns and rolled into the next market we like.

@Bill Jacobsen 20% in the very competitive Willamette valley market is strong good job... And can vouch for rents here.. Not as strong as whats happening in the SF bay area but better than most places in the country. ( IE rents are paid and vacancy is an extreme rarity)

Just can't get those 2 to 3% rules those in the mid west preach about.

@David Krulac and to follow up your train of thought why for someone to be successful at it they need to have more than passing knowledge and or be taught from a weekend course.

However this thread is about CA. and its pretty cut and dry in this state.

Washington is just like CA... but Oregon is far different they do not like to sell tax deliquent properties and will go to far ends to keep that from happening.. I had a logged over timber site, that was surplus and a county employee tracked me down and even got my cell number and called me to tell me I was going to lose the property in 2 weeks time If I did not pay the tax's..

@Rick H. Rick and thats another bizz I do not see talked about here on BP is going after tax sale overages. We still have oh 50 to 80 junker lots in Lake county CA in our name.. and occasionally the tax collector will sell them and we get noticed and can apply for our overages.

And I have not bought a tax sale prop in CA since the late 90's however we got our our deeds from the tax collector within a few weeks and filed them we closed many deals to new owner within 60 to 90 days as a matter of course.

Socal and Norcal do business differently in regards to title and escrow.

@David Krulac I realize tax sales are far different in each state. In MS I lost a few properties as a lender in possession and was able to get the courts to overturn the sale using the same arguments you post above.

And there is one case in San Francisco in the 80's I recall it made regional if not national news. Little old lady lost her 800k home for 30k in back tax's.. even though the sale was done properly the Judge nullified it by what I have to assume was intense pressure from the public and doing the right thing. And or it could have been who ever bought it gave it back through negotiation.