All Forum Posts by: Jay Hinrichs

@Joe Villeneuve 

give it a rest man... the hood is the hood end of story. ARV is an allusion that out of country owners and out of state investors fall for.

why would anyone sell a property that is worth 180k for 130k  on a public forum.. this whole idea of buying form TK operators with BUILT in equity is just such a farce.

Its worth only what a willing buy and willing seller will settle on no more no less

Thank you for all the thoughtful replys. hopefully those that are trying to get into the bizz with realize to be successful you need to round out your skill set.

@David Perez 

   My father who taught me everything real estate related.. would always say you can record the star spangled banner if you wish.

Just take your document to the recorders office and record. it.. now you may have to paginate it a certain way.. but other than that anyone can record any doc you want.

@Account Closed 

  I do a lot of mezz financing in FLA  its all title company driven.

@Martin Scherer 

couer d' Alene is not in any way compared to what most think of out of state investing. IE the big cities of the mid west and east. there is no comparison in socio demographics' amount of HUD amount of Ghetto 's etc.

And you did well to find that area.. I love it there we fly up there often in our plane and visit friends that own properties there.. then on to Kalispell the next day. Our rental experinces are just not what an investor is going to experience in the mid west  or out east. where half the population rents as a life style.

@Joe Villeneuve 

  And how many of these homes are being bought by investors and how many by home owners?  its the same message in all markets in that asset class....

If the properties are such great deals and rentals WHY is it a foreclosure CLUSTER.. there are reasons for this... ONe landlords are failing left and right because of ongoing management issues and being sold on how EASY it all is when in fact it is not. And because anyone who can afford a 150k house is not going to buy in an area that is predominatly rental  the schools are usually poor etc.

@Richard C. 

  your my new hero.. thanks for calling BS when you see it sometime I feel like the lone ranger here on BP :)

@Richard C. 

your spot on .. in the day us HML use to use ARV.. I would not even consider it today. Its cost lend on cost not ARV.. If you lend on ARV you are definalty taking a huge risk. in this asset class.. that being lower end rentals. And to compound it the borrower had no skin in the game and is 100% leveraged another idot idea and one I would not partake in.

@Joe Villeneuve 

IF ARV is 180 k why can people buy them everyday of the week for 20 to 30% less than ARV.. I submit that ARV is a figment of everyone's imagination.. and that the true value is willing buyer willing seller or what your paying for the property IE much less.

And banks are falling back into the trap that got them in hot water again.. Loaning on ARV that are not real.. and when people walk banks get hosed.

So I would like you to explain why if your paying 130k for property why its worth 180k and not the 130k you just paid for it. all things being equal.

@Jon Holdman 

  could not have said it better about the false representations that  sellers be them TK private or whatever promote... But people want to believe.  your dead on   on this point.

my experience with mid to lower end rentals and I have owned hundreds of them is expenses are easily 40 to 50% over time and sometime worse if you have a trashed unit.

If you buy A type properties in low tax environments you can maybe get to 35% or IF you SELF manage that number comes down.. But going the TK route you will never ever hit anything much less than 40 to 50% OVER TIME.. there is always the honeymoon period IE the first year or two... Then reality sets in and we never hear from the investor again  :)