All Forum Posts by: Jay Hinrichs

@Rick Clatfelter

Rick good to see your still with Marquis.

.. You will find very spirited debates here on BP . The common wisdom here on BP from my perspective is that many of the veterans and experienced investors here believe that BP and all the free advice ( some great, some who knows) will give investors starting out everything they need to know to get into the RE Bizz and there is no need to pay huge dollars for education ( Guru Ciruit) or over pay for cash flow rentals ( turn key business) It s my personal opinion that all of this needs to be taken with a grain of salt. And that there is no mystery that turn key providers are making a profit and a big one at times. And TV gurus make obscene profits So its buyer beware.. .. And everything in between...

Hows the blueberry play coming along?

@Lisa Miller

I would be very skeptical if you could get 16 septic systems on 2.5 acres.

If your area is like Vancouver WA.. Same weather basically they are really tough on septics.

Best of luck sounds like you know what your doing

@Account Closed concur one should have both it really comes down to the reality of the situation.. For those starting out buy their cash flow rental and they really have no equity or net worth asset protection is a waste of money a small 100 a year umbrella policy will work.. Who is going to pay thousands to litigate a claim on a 30k low end rental?

One these folks get going and have something to protect then they should spend the money on these things.. their funds would be better served used to find and close their deals

@? quit claims only release an interest in title. IN a lot of states they will bugger up title and that transfer is not insurable. In other states like MS its the preferred method.

Lets say you did a quit claim and wrote it in pen here in Oregon like you were buying a property from someone.. YOu would play hell trying to get title insurance on the resale.

Most of my commercial loans are the opposite loan to LLC with PG's. But my lender will lend to my name as well. Just depends on if its a stand alone loan or a credit facility in the name of that particular LLC

@Alex Craig

I have worked with the same type of husband and wife teams up in Kokomo indy.. very efficient.. she ran the books and leasing he did all the maintenance. they made living with only 100 homes or so.. but they also owed about 30 themselves.

@Joel Owens

the few large multi's I have brokered and there has only been 3, I gave the buyer a list of the 3 top management companies in our market, each manages over 4k doors and one 12k doors in CA WA and OR. Then they pick who they like. AS I find most buyers of these projects to get to were they are, are fairly astute and know the bizz.. Our building's here sell for oh 50 to 100k a door for multi.. some higher.. cap rates 3 to 6% best case.. Incredible sellers market here in PDX> But when you have basically zero vacancy and a stable work force the big passive money is on them like crazy..

On the other end of the spectrum and probably more germane for BP

I had a friend of mine from Oregon that I introduced GA SFR's too when I was buying them. He bought 50 in a year and flipped them.. Same as me made good money.. Then told me he was going to do multi.. And came up with a 46 unit in Memphis for 400k.. I told him War zone you will lose your a$$ he was like every other investor that just does not know what he does not know and is coming from the west coast and especially our market in OR. He blamed everything on the old owners and managers. And he was going to put in a new sport court and rehab and give a quality environment. Well he dumped 600k into it thinking it would sell for 1.5 to 1.7 well in the 18 months it went from derelict to rehab back to derelict the play ground was destroyed in a months time there has been 3 shootings 1 with a fatality. And he just sold out for 600k and took a 400k loss.

I told him only locals can effectively run war zone and slumlord stuff he did not believe it.

@Shankar Balakrishnan

In general if your going to try to buy court house steps.. YOur going to need to track virtually every sale in the county your interested in. As you just learned very few sales actually go 3P most postpone, revert, Bk, etc etc. Its a full time job to actually be successful at courthouse steps.

And in your mortgage states and from what I see in states that are attorney driven finding the information on FCL. is time consuming, compared to West coast. On the west coast if you have any kind of volume and or in the RE bizz you will have a relationship with a title co.. Be it FATCO, Fidelity etc. My go to is Chicago ( owned by Fidelity).. And our systems are all computerized. I can call my customer service agent give and address. and in 90 seconds she can give me a date down that is 95% accurate. And when I did this for a living in the PDX metro area we covered 4 counties and I had one employee that did nothing but track each and every foreclosure.

But it does not stop there. As @Steve Babiak mentioned many trustee's services that handle these sales don't post the opening bid until the day before or even right at the sale... So you don't know if its going to be a full credit bid a discount bid or a step bid. The most frustrating of all are step bids.. You call get the opening bid its 100k for a 300k house.. And when the first bidder bids. the Cryer on authorization from the lender steps the bid up to 200k or higher and everyone is severely disappointed, Has to do with mortgage insurance is what I have been told.

And if that is not all hard enough. you have the game that is played by the good ole boys at the court house steps. IE the regulars that have been doing this for years.. IN many instances they will out bid a newbie just to keep you frustrated and to run you off.. There is the offers of Lunch. Money and other means of Collusion to keep competitive bidding from happening. In some markets its so wide spread as to be a business all in its self Here in ORegon it was very common and regular practice 15 years ago. There were many that could must up a 100 to 200k cashiers check show up qualify funds but never ever had the intention of buying anything they were just looking for the 1 to 3k to not bid.. There was a group in either NC or SC that got stung for this about 5 to 6 years ago by the FBI... And they got I believe an 800k fine and some other serious stuff.

Fast forward to today and you have the new foreclosure steps Gorilla ( Hedge Funds ) and their bidding services.. When you see a 20 something with his backpack come up to a sale and qualify 1 to 2 mil in cashiers checks and just bid on everything coming up he is bidding for one of the big Hedges.. this happened in the Atlanta Market. The last court house steps property I personally bought was in clayton co. GA.. about 18 months ago.. after that time the Hedges just ran the numbers up to were it was not worth it in my model.

I have bought ct. house steps in FLA GA. MS. TN. CA. OR and WA. probably close to 500 of them over 30 years.

As one poster said as well. I like TAx deed states the best.. Although with Bid for Assets holding many of them these days the screaming deals are far and few between like we used to get.

Hope that gives you a little insight into the Ct. steps bizz at least from a West coast prospective. I am not up to speed on Judicails as well as Trustee sales.

@Rick Baggenstoss

here we go again... :)

Probably already discussed here. anyone invested in these Motel room deals. they are all over Great britian and Austrialia.. IE they tout extremely high returns, but the structure of the deal most of the GB and AU folks can't describe.. They think they are buying a Motel or hotel room that is a condo that can be sold individually.. Is there something specific to this market that allows that. I have not heard of that arrangement unless it was Crimeshare or partnership interest in the entire project etc etc.

curious to learn if someone has or is doing it.

@Lenny Longo

course of construction inspections fee's are very reasonable. WE don't pay anywhere near 1k per house though..

Although for new construction its much eaiser for the inspector he is there at post and beam and top out and rough elec. So they know those items are done and done to code.. then you have framing sheer wall siding roof etc. that's the next big inspection. then your clear to insulate sheet rock finish plumbing elec etc etc.4 inspections usually do it.. and we pay 75.00 per.

Now on rehab its a little tougher as each one is so unique. And you really have to watch most rehab contractors as they are not ( not sure how you say this) but they are not in the same league as the subs generally that have one trade do their job and go to the next one.

JLH