All Forum Posts by: Jay Hinrichs

Townhouses in shared lots are the new starter homes. There's a death to starter homes, no one will build them. 

There is no guru or course on the planet that can teach you real estate development in the span of days or weeks

Someone can teach your college level 101 stuff but I would love to see how these courses tell you how to interact with planning and zoning boards, how to negotiate proffers, how to deal with disgruntled neighbors and community members. How to hire a design team, what to look for - do you run all the agreements under the architect or separate and why…..

To me anyone going into a this type of program is going to be disappointed.

Update:

I've been really busy since my last interaction. Lets jump right it! Rule of thumb: I've been told "Never fall in love with a property". Lets add this mistake to my long list of Mistakes. I've named my book of mistakes HOA-M (H.E. double hockey sticks Of A lot Mistakes). However, I'm not 100% sure this was actually a mistake. The "New Development Pitch" turned out to be a really good learning experience. It forced me to reach out to developers, to engineers dozens of local builders and most important like minded individuals. I was wrong to fall in love with the potential of this development. I could not let it go. Negotiation after negotiation. I'm sure the owner was sick of me. I was able to gather several different teams. Each team would propose a new ideas and new creative financing to help both sides reach their goal. On one hand the seller obviously wanted as much money as they could get. The seller seeing the interest in their land, naturally did not want to budge on the price. This is where my mistake comes into play. I liked this land too much. I was willing to pay more than my competition. At this point I've convinced a team that this land was worth it. I'll be 100% honest. I was scared of actually getting the deal done as much as I was to losing the deal. I'm still scared till this day. As of this week we have secured the land. The seller was not getting much traction from the other interested parties. The seller not necessarily settled, Seller simply took the only offer they had. The reason we were able to make the deal work was the seller agreed to take a percentage lump sum up front. The remaining would be paid to them as we sell off the homes built. Now I previously mentioned i was willing to pay more than my competition. Reason being, i had teamed up with a local builder. A builder that knows the area very well. A builder that has built several subdivisions in the area. He knew exactly how many homes we could build and what they could be sold for. The price paid is well below what we should have paid based on number of lots/homes/ that can be built. Of course there are contingencies in place incase something goes wrong. Nothing is a sure bet. Now, was me falling in love with this property a mistake? It kept me pushing forward. Kept me trying to find a way to make the deal happen. It kept me awake at night just thinking about it. TBD! The mistake could be costly. Maybe one day i'll look back and wish I didn't fall in love with a property. As for now. I am over my head. I'm worried, scared and excited at the same time. If that makes sense.

@Jay Hinrichs  You mentioned Oregon and WA made foreclosure rescue lease backs totally illegal. Is this also the case when purchasing rights of redemption post-auction? Is it legal to offer to rent the property back to the homeowner who already lost their home to foreclosure when negotiating the redemption rights purchase?

@Jay Hinrichs If the bidder at the auction pays cash for keys to get the homeowner out, does the person redeeming from the owner position (exercising rights of redemption w/in 180 days) have to reimburse them for those costs they paid to get the homeowner out?

Have not taken the course but BRRR is basically dead right now due to interest rate environment - so if you take it I am not sure you can implement any training you learn at this time.

@Francisco Avancena

There are specific lenders who will do land deals

But of course not as many as traditional real estate.

The key will be skin in the game - typically for land because it is less liquid than a home the lender will want to have a lower ltv on the deal

I think it's not as worth it for builders. If they can build a larger home and sell it for the same or more rather then building a couple small homes why do it? I also don't think the price would be cheaper then preexisting homes. The smaller new builds still go for a pretty penny in my area and it's not affordable compared to what else is out there. If someone would choose a new, small 2/1 for 250K or a 3/1 1950s build for 250K they would choose the bigger one all day long. Just what I see

I think it's not as worth it for builders. If they can build a larger home and sell it for the same or more rather then building a couple small homes why do it? I also don't think the price would be cheaper then preexisting homes. The smaller new builds still go for a pretty penny in my area and it's not affordable compared to what else is out there. If someone would choose a new, small 2/1 for 250K or a 3/1 1950s build for 250K they would choose the bigger one all day long. Just what I see

 Yep. you can go to nmls consumer access and look someone up. I typically steer away from websites that have no information on who runs it. I do not need to see a picture of them (preferred) but atleast knowledge of who is behind the curtain. If its no one, I then go to linkedin and do a search there for the company. If still nothing, then I would say pass. 

As Jay mentioned -never ever ever send $ to a private lender. You only send money to an escrow or title company.