All Forum Posts by: Jay Hinrichs

@Jon Holdman

are they talking about un recorded land contracts ( which are really just lease options).. Not sure what the environment is now.. however subject too for homeowners in foreclosure is a no no in a lot of states. (or at least my state)

I did quite a few sub too's in the day.. and as long as the mortgage payments was made on time I PERSONALLY did not have any issues. I did have one lender call the loan ( it was a local credit union and the seller told the credit union they had sold).. We paid it off and then resold property.. However I suspect most of the people trying to do sub too's do not have the wherewithal to payoff a mortgage if the alienation clause was invoked.. And it does put the original seller in a bad position.. As it could be a default and a bad one for their credit.. And of course you have the scammers that talk people into this then rent the houses out collect the rent and never make the payments and just walk.. Those are the ones that the AG will go after or the DA. And those were the ones that created the laws in our state to begin with.

Seems to me a lease option would get most people were they need to be.. Keeps the alienation clause from being invoked. And keeps the seller in control of the asset until they are paid off.

Not sure why investor want to buy upside down houses though seems counter intuitive.. But I guess some guru must be touting some reason they are worth going after..

@Sharon Tzib

My experience as well sec 8 was 10 to 20% higher than market rent.

Dawn,,, Not to disagree with you but I have owned 350 plus of these at one time.. So I have some knowledge about this and have financed well over 2,000 fix and flips for most of the top turn key guys since 2002. And your obviously one of the hands on folks that gets it.. You probably know more than most and you can effectively manage the manager.. I stand by my statements C class for the average busy professional that thinks they are buying something akin to a mutual fund is anything but passive.

At least 50% of all foreclosures of these same C class houses that continue to go through the buy rehab foreclosure loop are coming from Investors that were sold on passive and turn key and they failed and walked away and that is just a fact.. Of course some people do succeed but many don't...

@Jason Dillard

I think its common wisdom that maybe 5 or 10% of any of the attendees on the guru circuit will do anything with the information.. You obviously were the 5 to 10% and for that your to be congragulated ... I was at Armando's big Cerritos event last year.. Same event that the Forbes reporter was at and based the Forebes article.. I talked with many attendees. And these folks paid 30 to 40k to come to this 4 day event. Also talked to some that were Armando's students in the past and have gone on to make a living doing RE deals.. I think we all know the guru's are in the information selling business pure and simple.. However I did finance many of Armando's students fix and flips over the years. And there is no question its a huge money business for those in it.. And the fulfillment companies in Utah that run the back end of these deals.. there are 10 to 12 of them in Utah.. and there is specific reasons for this location and the work force.

I know the marketing director of this company,

this is a typical turn key operator with all the same marketing information.

Under state Operational costs

Over state rental income

and sell for top dollar.

AS one will learn over time. low end cash flow is in certain big cities in the US... to be successful in turn key you need access to lots of low end distressed Real Estate ( constant deal flow) and a city with very high % of rental vs a vi homeowners.
The reality is that most of the subprime and homeowners that were going to lose their homes have done so.. This inventory coming up in most markets are landlords that could not make it and walked.
What makes the newbie investor think they are going to do better in these C markets really befuddles me... I guess they just don't know what they don't know.. and that is C class is not passive investing its anything but.. Just look at those that post about their 30k and under homes.. there you see pride of ownership and almost all of them live near to their investments and are very much hands on...

@Duncan Taylor

I was just at a meeting with one of my new borrowers, and he told me that one company was using his inventory pictures in their promotions. and that company also advertises right here on BP... I guess that happens more often then one might think... I can see using generic but using others homes is a little strange not sure what the purpose is

Attention rehabbers property managers or IP owners.

I have 21,000 items in my warehouse in Jackson MS.. I am liquidating everything for 1 to 5 dollars a piece. I bought this hardware company inventory when I was buying all my SFR's I have since sold them all and have no need for these items everything must go..

Includes

Kwickset lock sets and pass sets.

stainless towl bars along with Nickel and Bronze

Nickel and Bronze faucets sets retail well over $100 a piece.

all sorts of lights and lighting.

cabinet pulls hinges

Vanitys sinks etc

Most items are $25 to $100 dollars a piece if bought at Home depot or Lowes

1,000.. minimum sale.. Would entertain a cash price for everything.

Fly in rent a van and drive home with 1000's of $ in savings.. 95% of items are new in the box.

I started at 18 got my license in CA within a month of my 18th BD.

My fathers attorney < ( my dad was a RE broker and developer) gave me some very good advice so I will pass it on..

LEARN the COURTHOUSE IE learn the back end of RE. learn how everything there is to know about how RE really happens.. Most agent really don't know a darn about how things work they just rely on their closing attorneys or Escrow agents.

Learn how to pull subdivision maps.. learn how to do your own title search.

learn how probate works. Learn how tax sale and foreclosures work.

ETC ETC.. that's were the money is made

@Naga A.

YOu must be a licensed Real Estate broker in GA to manage property, you can start with filing a complaint at the DRE. Most likely there will be Trust account violations IF indeed this person is licensed.

Cheap properties C class Junkers rough areas etc etc . ARE NOT APPROPRIATE investments for out of state investors who are not basically experts at the RE bizz. In my humble opinion

@James Sinclair

James I bet you would have more fun being the bank, than being the landlord. cash flow is much better let some of these young guys and gals that want to build up their portfolios deal with the 3 T's while you cash your check.

Most of the Investors I work with now a days would much prefer to be the bank than own the asset.. But hey we need those that want to own the asset so we can make loans to them...

find yourself a rising star in your market check them out carefully try some short term deals with them.. and see how you do.