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All Forum Posts by: Jay Hinrichs

Jay Hinrichs has started 325 posts and replied 41434 times.

Post: How to pull equity out of a subject to property?

Jay Hinrichs
#1 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 43,194
  • Votes 63,806
Quote from @Laura Navaquin:

Hey David,
Great question, and you’re not alone! A lot of investors are facing the same challenge with these low-interest "subject to" deals.

You're right, refinancing and giving up that 3% rate would be a disadvantage currently, so here are a few alternative options to consider for pulling equity without touching that primary loan:

  1. HELOC or Second Position Loan – Some lenders are open to issuing a HELOC or second mortgage, even on a subject-to property, if there's enough equity and the property is titled in your name or trust. These can be harder to find, but they’re out there, especially local credit unions or portfolio lenders.

  2. Private Money – You could work with a private lender who’s comfortable with a second lien position. You’ll likely pay a higher rate, but it keeps the original mortgage intact, and it’s often quicker and more flexible.

Happy to chat more about what might work best depending on your situation. There’s definitely more than one way to tap into that equity!


 one thing we are forgetting here is in the event of a default the original seller is totally screwed unless they did a wrap and have the ability to foreclose out thier sub to buyer.. as the first will HAVE to foreclose to wipe out the second.. jsut a bad play all around.. there are going to be so many screwed up deals with all these folks thinking sub to is great for long term hold ( which it is not) IMHO

Post: Foreclosure with Redemption Period

Jay Hinrichs
#1 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 43,194
  • Votes 63,806

every state has specific redemtion rules just need to read them thoroughly

Like in alabama there is a redemention period but its so rarely done we have never had problem getting title insurance post sale 

Post: Can a New Airbnb Nearby Cause Economic Obsolescence?

Jay Hinrichs
#1 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 43,194
  • Votes 63,806
Quote from @John Underwood:

I have recently seen a friend that had their bookings drop way off due to a super nice competitive property that was charging less money.

So yes it can happen.


I worked for a syndicator in the 80s who got absolutly hammered in dallas tx when a brand new property opened literally across the street from his 20 year old units and offered move in specials etc.. they lost that property to the bank and got sued for millions ( deficiancy)

Post: RAD Diversified SCAM ALERT!!!

Jay Hinrichs
#1 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 43,194
  • Votes 63,806
Quote from @Anon Smithson:

As a former employee's close confidant, this company is an absolute scam with zero loyalty to its long-term employees, let alone investors. They filed for Chapter 11, but it was denied because they owe their employees money and refuse to pay them. As the owners, Dutch and Amy, pocket the money from their illegal activities to fund their lavish lifestyles, they continue to take advantage of everyone else. They use the money they defraud people out of to funnel it through the business, covering their outlandish living expenses. As investors who have been screwed by them and former employees try to recov er their money, Dutch is going on cruises for his wedding anniversary and for holidays while Amy goes on lavish outings and recently came back from the Bahamas. They claim to be god-fearing, good people, but in reality, none of them has stepped foot in a church and would set it on fire if they did. They live immoral and thieving lives. Dutch and Amy are facing prison time for how they have cheated within their company, while they continue to act like all is good and well, while trying to con unknowing and loyal investors into new start-ups to fund their lavish lifestyles with no intention of doing good with it.

These are not the kind of people you want to invest with or have handle large amounts of money. They both suffer from narcissism and care more about money and their image than doing right by people. They mistreat even the ones closest to them, including family. The co-owner, Amy, adopted a son but has never treated him properly. Yet, she goes on stage and gushes about him as her "why" and talks about all the stuff she does for adoption companies (NOT TRUE) as she walks off, and is far from a mother. In her personal life, she is involved with someone who deals drugs, as they do drugs and are involved in illegal activities. The cops in the area know the guy, he is a career criminal who has held a gun to employees and at her, yet he is still involved in her business dealings and in her house. She uses company money to pay her boyfriend a ridiculous weekly amount (2500 per week) as an employee, even though he does absolutely nothing for the company. Dutch does the same for his own family members. They run an illegal gambling ring in one of the company's commercial buildings. There are many things I could say, but we will be here all day. Hopefully, this gives you a picture of who you would be investing your money in. Amy's adult son currently has a criminal case for molesting a small child of one of her long time employees and she spends her time hiding his behaviors, blaming and indirectly threatening the victim and the victims family rather than being a decent human being (not so Godly eh?) while spending tons of INVESTOR money for his defense so she can save face for the next scheme they are currently working on.

This company owes a ton of good, hard-working, and loyal people money, and they fired them and refuse to pay them the many weeks' worth of pay they owe them. If they can do that to their long-term employees, whom they supposedly form strong bonds with, imagine what they can do to someone they just see as a dollar sign. The company owes many people a lot of money with no way or intention to pay it back. DO NOT invest your money here or with Dutch Mendenhall or Amy Vaughn (Also can go by other aliases such as Amy Whit-Vaughn, Amy Whitson, Amy Whitson-Vaughn) unless you never want to see your money again and want to get tied into fruitless legal battles. They just look for the next start-up scheme to fund their lavish lifestyles until that well runs dry, and then rebrand themselves and do it all over again. This is not the first time, and it will not be the last unless those involved speak up and report them until the government has to listen. There's so much more I could say and have receipts for, but I'll leave it at that. If you want or need more information to help, reach out to me on this forum. I am just someone with insider information who is sick and tired of watching them cheat and abuse the system and hurt and steal from good people.


just love the lavish lifestlye comments. what is lavish.. one man's lavish is another mans slumming it.. I mean the Bahamas i would hardly say is lavish to me its dangerous and I would never go there.  But I get it if they have no money and are spending money that should go to employees thats not good. 

the lavish lifestyle comments are what the FBI says when they nail a crook .. U know high end cars  like owning a Mercedes is some lavish expensive car all cars are expensive these days.. And Cruises same thing cruises are cheap .. all walks of life go on cruises especially to the carib that's the cheapest crusing you can do.  Just sayin.. 

Post: Does Bigger Pockets facilitate a Culture of Trash Individuals???

Jay Hinrichs
#1 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 43,194
  • Votes 63,806
Quote from @Nicholas L.:

@Jay Hinrichs

yes great point. even in just the closing - lots of different folks involved with different responsibilities.

a lot of folks are also coming in now and still digesting content from 2012-2019.  so they watch the Brandon Turner webinar or read his old books and they're ready for their "cash flow."  and even Brandon is saying LTRs aren't what they used to be.  not sure what to do about that...


yup all those theories work or worked over time nothing is new in the landlording rehabbing game.. it evolves goes up goes down goes sideways.. but nothing has really changed in 100 years :) oh so your working on a house that is 100 years old.. just think how many times its been remodeled especially if its been a rental. The BRRR book that came out I know intentions were great and the info is real but the execution and the Risk was severely downplayed

Post: Are We In a bubble? Will It Correct or Just Continue To Always Rise (Musical Chairs?)

Jay Hinrichs
#1 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 43,194
  • Votes 63,806
Ken your way to smart and experienced to know this answer LOL.. 

Post: How to pull equity out of a subject to property?

Jay Hinrichs
#1 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 43,194
  • Votes 63,806
Quote from @Kerry Baird:

@Jacob Sherman, this is a strategy where the seller agrees to leave their mortgage in place. The handful of houses I got sub2 (short-hand version) were houses that were going to foreclosure, and the sellers were motivated to sell quickly. Sub2 is very fast, as we needed to record the deed, get insurance and were off to work on the house. We rehabbed and sold after a few months.

In this situation, the OP would like to tap equity.  Refinance or selling are the two ways forward, as I see it.


this is the proper way to use sub too.. get in title rehab flip.. long term hold on sub to becomes a can of worms many times

Post: Does Bigger Pockets facilitate a Culture of Trash Individuals???

Jay Hinrichs
#1 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 43,194
  • Votes 63,806
Quote from @Nicholas L.:

@James Wise

agree with you, and I think it comes down to new folks thinking they're paying for an OUTCOME, when they're actually paying for a SERVICE.  as you well know, a PM can do a great job, abide by their contract, and still a tenant relationship can go bad and result in a rough turnover or an eviction.  having a bad tenant or a tenante that starts out great and then stops paying doesn't mean the PM did anything wrong.  the question to ask is... did the PM abide by the contract?  not - what was the outcome?

with that said... i do think there is a lot of cheerleading in the forums that makes it seem like new investors will get OUTCOMES rather than SERVICES. 


I like this  Outcome vs service. and given the fact that so many different individuals touch a rehab and then a rental its hard to control out come of all these different folks and service providers.  thinking someone can  put this all in a can and all you have to do is open the can and warm it up.  not quite reality

Post: Hard Money Loan to close in 5 day

Jay Hinrichs
#1 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 43,194
  • Votes 63,806

@Ian Walsh  contact Ian he is a big lender in that market he might be able to pull it off.. I personally will not loan in NJ Pa ny 

@?

Post: Hard Money Loan to close in 5 day

Jay Hinrichs
#1 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 43,194
  • Votes 63,806

if you want to get this done you better order title report Monday if you have not already.