All Forum Posts by: Jay Hinrichs

@Account Closed   In my opinion 20k is cutting it very close on capital needed to get into the rental game... buying out of state or country  in this   price range you can afford could cause you to lose this capital.. You may want to consider other avenues for this capital.. 

if you would like my E book that I wrote on the doe's and don'ts of out of area investing just e mail me at [email protected]  it was written for Aussie investors who were getting taken to the cleaners by US turn key outfits and there is some good stuff for CDN investors as well. 

At the end of the day I know there are HML in CDN I did a few and they could broker some funds for you on local deals so you got a little extra cash flow and did not risk losing your money... Low end 20k properties if that is what I am understanding you want to invest in is very very risky in the US... It just is for out of state or country investors. For locals that can stay right on top of them and scale it ,,, there probably is not a finer cash flow investment around given anyone can do it.

Always be a need for realtors... commission will get negotiated as they have been for years.  however buyer's and sellers need that buffer to put deals together.. buyers that are not educated in the process need representation so they don't get totally hosed as we know many sellers  don't exactly tell the truth about their properties.  

Its the reason that any good agent will always tell the SEller to leave the home when a prospective buyer is coming through... you don't want the seller blabbing something out that drives the buyer away... Or ego's get involved when buyer low balls  etc etc.

The above is for Joe and Jane homeowner selling to Jim and Mary home buyer.

Can you by pass RE brokers in the wholesaling of properties that are vacant.. I think that is very evident as there are thread after thread about wholesaling on BP and whether you can do it without a license etc  this activity already exists.

Then you take the busy professional they don't have the time or the hard working Truck driver how is he going to sell his home when he is on the road or the airline pilot who is on a 6 day trip half way around the world how is he going to sell his home.

@Brian Burke   LOL  we made money in Lake county in the 60's and 70's lots of picks broken in Lake county over the years...One project I worked on just had a major slide.. ( lakeside heights) thankfully I was just the broker 25 years ago :)... But fond memories my kids were born there !!

From my point of view there is a huge demand to provide funds on the performing side.

There are plenty of states that one can lend in where HML are exempt from Dodd frank for commercial purposes.. and there are states were that activity is not exempt. As HML in Oregon our target was 20% apr and all were performing.. And that business is out there in certain markets to be had and even greater returns for performing.. Of all the notes and loans I have done over the years I have never got into a deal that was none performing at least at inception I have had my share of bad loans especially in 08 09 .. I understand the whole NPN craze and I can see that in firsts but for newbies or those that can't scale to buy NPN seconds I don't see that at all.. And I think most newbies would be well served to find a good HML who can get them 10 to 14% on local loans and call it a day.. Once you have some experience then one could venture out on their own.

@Karen Margrave   we went with Wolf in my personal home and a spec.. the big house I showed you on the willamette river had all Viking... Sub zero and wolf are made by the same company in Wisconsin viking is made in Mississippi I find the wolf sub zero to be better built.. And I like the red handles on the Wolf... I have 3 sub zero's one refrig one freezer and one really cool wine center with two drawers below for water coke beer whatever... its a nice layout.

One spec I just put in DCS and thats nice stuff.. We went with the draw dishwasher. and Micro down low in the cabinet.. I did the micro down low in the cabinet in my new house and like it just fine as we only reheat things.. just as easy to lift up a cup of coffee as to reach up for it.   I wait for my distirbutors annual sale and buy 3 or 4 sets and save a ton. Then take them to storage.. the Wolf range in my personal home I bought on sale ( 8 years ago for 4600)  its a monster one 60 inch with double oven and infrared on top  sat in my airplane hanger all these years until I installed it a few months ago.. I priced out a new one at a little over 17k.. so that was a nice win.

@Brian Burke   what lakefront if you can share.

Mine was lake wildwood in nevada county.. I put the first mello roos in nevada county 11 million bond issue.. we had 480 lots  built the first 110... all presold ... the earth quake the war and we did not close a one... it took 20 years plus to unwind that deal.. although I was up there last summer and it was all built out  so someone did OK with it.

I have 4 subdivisions going now biggest is 27 lots  so not doing anything major and trying to get in an out in 12 to 18 months but I hear ya.. Been there done that in the exact manner you speak.

@Patrick H.   Awesome job... did you have any holding costs?  I have tied up a few of those homes and backed out just to daunting with the unknowns.. we are just doing new co on vacant lots.  Its a great market with True 15 to 20% nets... which we just don't enjoy in Portlandia with all the competition.   I was at Aiken on Wed.. its great and an anomaly in the south were revitalization is displacing the older low income existing homes and the owners thereof.. nothing like it in the south that I am aware of.

@Jay Newa   if you could send me an e mail to [email protected]  I will send I cannot cut and paste from BP website thank you

@Eduardo Cardena   As Dion States that is pretty aggressive for someone starting out.

The only way that I make those kind of returns is with forced appreciation  IE new builds and leverage.. IE bank financing for new builds to sell to home owners.  I am sure many in the paper business hit these kind of returns .. but someone starting out its probably not realistic.. As you have to realize there are going to be bummers as well as winners. 

There are other methods of investing that can hit these returns but its not by buying NPN.. the incubation time between getting them performing and invested capital creates severe drag on capital invested.

@Karen Margrave   I am on one of my trips to my markets I work in.. and I was just in Charleston looking at our new builds there its Awesome what we have going on.. Its inner city revival at its best.. Can't wait to post our 46 Aiken project