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All Forum Posts by: Jimmy H.

Jimmy H. has started 63 posts and replied 284 times.

Post: Becoming a commercial agent

Jimmy H.Posted
  • Lexington, KY
  • Posts 315
  • Votes 133

I would recommend speaking with the broker to hash out the details, then come back to BP with a more accurate picture. Then you can begin to compare and see what's best for you.

There is definitely a leap of faith in taking the agent position.

Post: Question about William Nickerson's way

Jimmy H.Posted
  • Lexington, KY
  • Posts 315
  • Votes 133

Speaking of picking up the conversation again - how about 3.5 years later?

Anyways, I too am curious about the OP's question. I have recently become interested in William/Bill Nickerson - he seems to be credited with being the original real estate "guru".

I do understand that his original book was written 52 years ago and the investment climate was different in many ways as compared to now.

I am curious about his strategy - it seems to be a mix of rent and flip that I don't quite understand. Can anyone provide more detail?

Post: Not only are we "dumbing down" in our education system, but ...

Jimmy H.Posted
  • Lexington, KY
  • Posts 315
  • Votes 133

Vikram - I agree with your thoughts and think that privatization is the key. This fosters competition between both schools and students.

Americans need to wake up that we are competing on a global scale now and that includes areas such as education and employment.

School in America is a joke - including colleges. I spent 1st grade at the best public school in my town, they decided to switch to some sort of blended grade program, luckily my parents were fortunate enough to be able provide private education for me for 1-8 (I was held back in my first year of private school due to age and probably to increase the schools revenue for another year). The school i went to cost 10k+ per year even for kids as young as kindergarten. We were doing math handouts from public school books that specifically said grade 11 and grade 12 at the top, and we were doing them with ease in 4th grade.

I then switched to public high school and attended a public university. I spent my high school getting drunk, partying, "experimenting", and skipping school with little regard for reprecussion as my school was overwhelmed with children with true behavioral disorders. I knew high school didnt matter. I was also in high school for no child left behind and can vouch first hand that it had terrible effects that were noticeable immediately.

I then attended public college and graduated with two degrees in only 2.5 years (5 semesters). I also completed an MBA in Finance and had completed my entire college education, including MBA, in 4 years.

I can honestly say that my private school education carried me all the way through college with relative ease.

I know this is a specific example, but I believe it demonstrates effectively that the public education system is a joke. I learned more about gangs, drugs, and drinking in high school than anything else.

In fact, my junior english teacher allowed our students to put up a "hood word of the day" on the black board. Consequently, I expanded my vocabulary in those years with words like "smedium", "cat", and "whodi".

In short, my entire public school experience was a joke - including college.

SCHOOL IS WHAT YOU MAKE OF IT, and often times parents dont instill the appropriate sense of respect and importance of education.

In generations past, school was seen as a way to prosperity, an opportunity. Kids now are raised to take for granted everything they have and therefore we will be outdone by children from other countries who are "hungry" for education and appreciate even the opportunity to attend school.

In that regard i think parenting and instilled values are as important as the system itself - it is a sense of entitlement that keeps individuals from wanting to engage in the learning experience.

The solution with education is privatization, we should abolish the department of education along with the department of energy, the FED, the IRS, medicaire, medicaid, welfare, obamacare....the list goes on.

I do like the idea of incentivizing good grades monetarily. This is perhps a solution that would be developed by a private school system, and sought out by "education consumers" as bryan has termed it.

I think a voucher system creates a mess just like section 8 and would not effect the change needed.

"the Great Recession" apparently did not do the trick in sending the american consumers....i mean citizen....the clear message that a "new normal" is upon us - as Mohamed el-Erian coined it. We are now competing on a global scale. It is the responsibility of each individual to take their own education seriously and use the opportunities they have to better themselves.

I think it is clear that our current system isn't working and our government needs to effect a complete education overhaul. I'd like to call it "change", but that word conjures familiar feelings and, to me, entails the notion of ideals that never come to fruition.

If the current crisis didn't provide a clear wake up call to the gov't, "education consumers", and lazy americans in general, i don't know what will.

Post: Do you believe in hyperinflation ??

Jimmy H.Posted
  • Lexington, KY
  • Posts 315
  • Votes 133

Hyperinflation, by its own definition, is not acheivable IMO.

It's like going hunting for a chupacabra - you might shoot one ugly *** goat - but it's not a chupacabra.

In other words, I think we are in for a prolonged period of stagflation, not hyperinflation.

Post: Pay Down Philosophy

Jimmy H.Posted
  • Lexington, KY
  • Posts 315
  • Votes 133

Joel, without a doubt, I would recommend hoarding cash.

Get your reserve levels to where you want them - and then star packing away the extra cash into some sort of money market savings. then start keeping a keen eye out in your market for your next deal, be patient and hop on another good one that you know will CF. Then get your reserves up on that property and repeat the process.

The key is to maintain sufficient reserve and continue monitoring your current properties so that they continue to run in the most efficient manner. Then patiently add to your portfolio....cash is king - start stacking it away and you'll be able in an advantaged position to take down another good deal when the opportunity arises.

There is no sense in paying down "good debt" on an asset that currently has sufficient debt service capacity all unto itself. This will only lead to a free and clear property that you will likely finance again to get cash out and that will be at a higher interest rate most likely.

Post: Preparing for tax lien sales

Jimmy H.Posted
  • Lexington, KY
  • Posts 315
  • Votes 133

Joe, yes it is interesting. Thanks again for the info.

My understanding of having precedent on property leins where you own previous years liens is the same - and that is how it works in KY. But the way you speak about the 1/10 that you foreclose on "sinking" your profits is actually kind of counterintuivtive and the dead opposite of my thinking. Of course, there are those rotten deals where the property is worth nothing and the owner never intends to repay you and you lose money - but with a reasonable amount of due diligence I would think this is easily avoidable.

My thought was that the foreclosures might actually be the bigger money maker if done correctly - if the tax lien holder forecloses the mortgage gets wiped out all together so you ownt he property free and clear (barring and IRS or other senior liens) In this scenario you get a house at a steal of a price.

On a second thought though, if a property has a mortgage you could keep collecting subsequent years liens and when/if the mortgage holder forecloses you would get repaid - which would be a great return.

Joe- are you experienced in KY liens? I see you reside in Cinci. Might you be interested in partnering on a "tax lien fund" - I plan on starting one this year and preapring for the sales in in Lexington that occur in august. generally, every county in the state has annual lien sales that occur in july or august. I have been reading the KRS statutes diligently but somethings are still not crystal clear - that is why i want to get some hands on experience in this coming year 2011.

Post: Preparing for tax lien sales

Jimmy H.Posted
  • Lexington, KY
  • Posts 315
  • Votes 133

Joe, great posts, i've found them very helpful.

A few questions:

When you say you attended 5 auction to meet people and get a feel before ever making a purchase - that sounds like a great idea but my tax lien sales only happen once a year and im not going to wait 5 years to get involved - how did you go about this?

What do you mean by macro-economic and demographic criteria - being the property type, locations ,details (zoning etc)?

Also in terms of the title search - you essentially pass thru the cost and bill the property owner the cost of the title search as a fee when they settle their debt?

Also, I hear that only 1/10 gets foreclosed on, so you want to make sure it is worth it in a worst case scenario - this would be where i'd imagine you get burnt - buying a lien that noone intends to pay and foreclosing on a worthless property - this is probably also why you'd want to avoid properties with prior liens?

In my state those who have previous years liens on a proeprty get precedent to buy this years liens again - why would they do this? Why not foreclose using last years liens then let it keep dragging out and buying more and more years of liens on the same property?

Post: Contacting property owners directly

Jimmy H.Posted
  • Lexington, KY
  • Posts 315
  • Votes 133

I was wondering if any of you BPers have experience in directly contacting owners.

I can look up owners names through my PVA, and if owned by an LLC can research owners through the SOS website.

Some peoples names you type into google and it (creepily enough) will show their name adress and phone number.

Others (presumably those who dont list with yellow pages) are tough to find. What "geurilla" tactics do you use to contact these owners.

Websites you use?
Knock on the door and ask the tenant for owners number (kinda creepy and instrusive)?
Lock at the adress of the owner and write him an offer letter?
Skip tracers? heard about this on NPR
All of the above, what else?

Specifically I have a condo I was eyeing, good deal, and was taken off the market (or at least i think). this property was lsited and this monday is not showing, and does not show as "pending" on the MLS either.I have forgotten which realtor it was. How can I get ahold of this seller?

Also, given the fact that every owner has to have a registered address on the PVA, i can "snail mail" a proposal letter. Would anyone be kind enough to forward or provide a link to a good template for "cold mailing" people about your interest in their property?

Post: Wider Motivations for Investing?

Jimmy H.Posted
  • Lexington, KY
  • Posts 315
  • Votes 133

I think it is different for each individual.

Consistently I think you will find "wealth" at the top of most people's lists.

For me it is also the challenge. It is engaging, risky, and challenges you on a variety of levels and think that purpose and drive and sense of accomplishment is an addicting feeling.

Why property and not another venture, well, small business owners will give you a different answer than day traders, who will likely give you a different reasnoning than those on BP who have chosen to pursue RE.

Maybe we all just grew up playing Monopoly.

Post: Is Portugal a good place for investing now?

Jimmy H.Posted
  • Lexington, KY
  • Posts 315
  • Votes 133

I'm a few months late to this idscussion. But, it is seems that the PIIGS debacle is heating up.

Here in the next month or two things should get quite interesting. If you are certain you want to make this move and the deal makes sense, I would wait to buy until the outlook in Portugal look the most bleak. Portugal isn't going anywhere long term, so I would buy and try to negotiate the price down when things look the worse.

Greece might not be a bad place either, plus it isn't like you'll really have to pay any taxes there. lol