All Forum Posts by: Jay Hinrichs

 I don't invest in things I don't understand and I don't invest in things that I can't control. For those reasons, I've never got into Crypto so I got no friggin clue.

Airport traffic hit another record in 2024. Las Vegas tourist hit a new record in 2024. Housing prices increased 5.9% in 2024. If you’ve paid for a strip hotel room in the last year you know the hotels don’t think traffic is down. 

So yes, your friend is wrong about the traffic. But that doesn’t matter. Since neither you or your girlfriend work in the tourist industry’s, nor should you plan to live in the strip. 

All you care is your house will be 40% cheaper, your insurance, gas, property insurance the same. You’ll lose the 10% state income tax, you’ll eliminate the traffic, and assuming you and your friends don’t bring it with you. You’ll escape the INSANE politics and policies that have ruined California. 

So your personal life will be cheaper, less regulated, less taxed, and less wasted in traffic. That should be all that matters. 

Ps. Because of the property tax caps you should at least consider a 2-4 year old home as you could easily save 20% or more on your property taxes for as long as you own the property. 

Pps. If you ever plan to do any STR you'll need a property with a casita or located in North Las Vegas or Henderson to avoid the Las Vegas rule requiring occupying a primwry home while renting it out STR.

@Stetson Oates @Henry Clark @Chris Seveney @John Clark. Don't get me wrong but I agree with you about selling.  The logical thing is to sell.  But as @Stetson Oates mentions they get hung up on the taxes.  The logical thing sometimes does not enter their mind.  Lower taxes, Lower maintenance, lower utility costs, less cleaning.  These should all get factored in but often don't.  My mom has a $2mm house with a $150k basis and lives in 1 room with no heat and eats rice.  She could easily sell and pay $2k a month in a rental and live a better life, but she has some idea that the kids and grandkids might come 1 X a year and then having a 6 BR house would make them come more often.  Sadly we as Americans over consume housing, then are not able to transfer to less.  The lucky ones oddly enough in this scenario are those who take multiple steps(houses) to get to the big house, as they have a larger cost basis then those who bought the big house in the nice town at the beginning. When is the optimum time to leave the big house(no pun intended) and downsize?  Does anyone have that answer?

Have done several LO and LC transactions on both ends.

Did them with integrity.

There was a company here in Detroit the 1990's and early 2000's called Phoenix Homes - like the rebirth of the mythical bird.

They has a half-page of multiple ads in every Sunday paper, "buy with no money down!".

That was a bait & switch as no one ever met the requirements for zero down, so everyone had to put down $3-5k on $80k houses. 

Then the sales price was so high, it would never appraise.

They eventually imploded and I met someone that worked for them, who told me they had almost a 100% default rate - intentionally.

Then went under because they were soliciting investors for funds and promising first lien protection - but, selling that to several investors, so the properties had multiple liens for more than they were worth. 

I love all of these people predicting a crash...still waiting. Been just around the corner for over 10 years now.

3% drop in values is a "crash?" 

All this does is scare people and create inaction, while everyone else is out there taking a chance and making real money. 

@Jay Hinrichs that’s what I’m talking about. I had an investor friend buy the house I’m living in now and he sold it to me on a lease option. It worked out great. I have a video on YouTube highlighting some people that I worked with that say how wonderful the program was for them . And those are just two out of the dozens of people that I’ve helped become homeowners. They’ve been really happy with the Lease Option program.

I wasn’t investing in the 80s or 90s or the 2000s. So I’m not familiar with the negative attitude towards lease options. In Arizona, lease options aren’t as popular as buying a home the regular way with a realtor, but they’re also not really uncommon. Similar to what you stated in your post, it’s a strategy that people may use sometimes. I just happen to like the strategy a lot so I use it all the time. And I think my favorite thing about the strategy is that I don’t have to pay realtor fees that take up a big chunk of the gain and tenant buyers can fix up the property how they like it rather than switching out things that I’ve paid retail prices for such as flooring, paint, and other things for what their preference is. 

 I don't think Politicians think or care about anything beyond "how can I get elected and re-elected."

@James Wise It seems like there may be some confirmation bias going on. I thought you were wiser than that.  

So you are stating there there is no situation in which a lease option would be a good option? 

Hi Joven, 

I do agree that their draw process is very standardized, which does not help investors get draws quickly. They require you to elaborate on draw requests and basically lay it out for them which can make the process very frustrating. It also does not help that they take forever to process your draw requests. 

I think you will benefit from a true private lender, as they don't require too much paperwork for draws and it can be as simple as submitting a form and taking pictures and receiving the draws in 24-48 hrs.