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All Forum Posts by: Jay Hinrichs

Jay Hinrichs has started 320 posts and replied 40397 times.

Post: Foundation damage and other issues

Jay Hinrichs
Professional Services
Pro Member
#3 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 42,174
  • Votes 62,008

@Account Closed

being from the Northwest I had never experienced soil conditions like you have in the south.. But I got a baptism by fire that's for sure.. When it rains there the streets just fall apart.. when I moved there to handle my 08 09 collateral melt down I had my porshce shipped down from Portland.. The roads were so poor and rough I sold it before I came back.. Some of those roads will have humps in them 1 to 2 feet out of plumb.. Its crazy really.. From what a soil engineer told me a 100 % dry piece of Yazoo Clay 1 inch square can expand to 12 inch's square when water is added.. You can drive around Jackson and see houses that are cracked in half like humpty dumpty eggs... And of course when that happened and the investor did not have the funs to fix it.. they walked and I ended up with a jem of a foreclosure. OH well that's all behind us now....

Post: Foundation damage and other issues

Jay Hinrichs
Professional Services
Pro Member
#3 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 42,174
  • Votes 62,008

Joe may be alluding to the city red tagging the home as not habitable.

I have had this issue on a bunch of my OREO in Jackson MS.. there is Yazoo clay.. and its incredibly destructive... not only cracks in the walls the doors won't close, as you mention pipes break sewer lines break its a major problem. You need to chase down the company that gave the warranty.

JLH

Post: tax lein certificates

Jay Hinrichs
Professional Services
Pro Member
#3 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 42,174
  • Votes 62,008

@Jerry K.

I had bought many a tax sale in California and its a tax sale state. So I decided to try tax certs.. No way to really know what your buying the pro's were there with their lap tops the crier obsioulsy favored them.. I think I spent 5k then stopped I don't think I ever saw any redemtions and just forgot about it to about right now.. Another 5k lesson.. Like any of the tax forclsoures schemes there are the pro's then there are the rest of us trying to learn and learning ususally costs money

Post: Foundation damage and other issues

Jay Hinrichs
Professional Services
Pro Member
#3 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 42,174
  • Votes 62,008

Joe may be alluding to the city red tagging the home as not habitable.

I have had this issue on a bunch of my OREO in Jackson MS.. there is Yazoo clay.. and its incredibly destructive... not only cracks in the walls the doors won't close, as you mention pipes break sewer lines break its a major problem. You need to chase down the company that gave the warranty.

JLH

Post: Private Lending Business

Jay Hinrichs
Professional Services
Pro Member
#3 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 42,174
  • Votes 62,008

@Account Closed

Thank you David I was pretty sure of that but I have been up here in the Oregon rain for 10 years and I keep my CA brokers license current and that is what I thought but with all this safe act stuff and the state of Oregon taking the hard line its best to double check.. appreciate it.

Post: Private Lending Business

Jay Hinrichs
Professional Services
Pro Member
#3 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 42,174
  • Votes 62,008

@Don Konipol

@Jeff S.

Phew I was worried there about the CA broker I have been a broker in CA since the late 70's and that was the license that we used to do all our HML back in the day,, and I thought it was still the same. You go on the state DRE site and the disclosures are right there to be used by CA brokers for CA investors to make HML's.. So I think one just needs the brokers license or NMLS license and they are good.. I also have a NMLS license in Oregon ( currently in active) . However I just got it a big row with the state of Oregon about how they decided to interpret the SAFE ACT. and the state of Oregon deems any loan on any 1 to 4 unit whether its owner occ or for commercial purpose to be under the safe act and NMLS license is required. My attorney when I first set up thought we were exempt.. And when the state came in for my first audit I was so proud they asked how many loans I did I replied NON they went on to say you sure what exactly do you do.. I described it.. I make only loans to NON over occ out of state in the mid west.. They then informed me that we were under Oregon law if our brick and motor was Oregon and the loans were originated there.. So she said I want to ask you again how many have you done.. I said well about 400.. It was kind of funny at the time you had to be there... But yes Oregon does not differentiate with commercial propose as long as its 1 to 4 units. And the state really cracked down on the higher net worth guys that were loaning their own money. these guys had to partner us with and LO to stay compliant.. Not the end of the world but a change.

Also a CA broker has the right to fractionalize the Deed of Trust up to 10 is the threshold at least that was what we operated on in the day.. And I see on the CA DRE form there is a place to disclose a multi bene loan. So I would think that's still allowed.. Oregon does not allow multi bene period.. ONe of the reasons it was hard to get HML s here for more than 200k for many years you needed one investor to take down the whole note.. in my ca Days virtually every loan I made was multi bene.

The NMLS system is a big pain.. I am going to take the UTS test next week that allows me to get licensed in 39 states. Does anyone have any input on the UTS what exactly will that let me do.. Can I just open shop in any of the states on the NMLS list..I have not gotten that far to see what it allows me.. Its only 25 questions so I thought I would knock that out.

ONe last thought most states will allow up to 4 private loans in a year with no licensing or issues. and many states that deem these commercial have no regs at all that I am aware of.

And of course we can get into a big discourse about selling a security I have been in that battle for 35 years...

Post: What the heck is a land contract and how do you use it?

Jay Hinrichs
Professional Services
Pro Member
#3 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 42,174
  • Votes 62,008

@Jon Holdman

Jon great synopsis its definatly state specific.. Many gurus touted them a few years back. In Oregon if you have a land contract that is recorded or not.. The courts of Oregon will make you go through a Judicial foreclosure to remedy a default so for sellers these are terrible in this state. But they were predominantly used in land deals not many for homes until it became popular through the guru circuit. If one is not recorded and the person losing the house walks away there is no big issue. I took over a bunch of these from a young group of investors here in Portland that got their selves in a wringer listening to this particular model.. buy subject too with little or no down.. then sell on contract ( and they recorded them) with little down and make the spread. Kind of like a wrap mortgage.. Well they buggered up all the titles. and of course the low down easy qual owner occ lasted on average 16 months before they defaulted.. Original owner is not getting their payment because the investor is not getting paid.. and you had a cloud on title .. Big mess for sure.

In my mind its better to just use a deed of trust.. in most markets you can get through the forclsoure process in 6 months or so. I did a few in GA in 90 days on loans I made there... Or use a lease option.

Post: How to BULLETPROOF my rental property from destructive tenants

Jay Hinrichs
Professional Services
Pro Member
#3 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 42,174
  • Votes 62,008

@Joel Owens

cinder block walls and industrial lino works have seen it many times. for me only provide a stove... period. but I do like the prison concept.. seems like we are the wardens.

cage the condenser..When I was buying and rehabbing I always put in a new sewer line to the street if it was 20 or more years old could get it done for 1 to 12oo before its an emergency and its one of the biggest maintenance items.

And then the obvious I never put carpet in C properties.. most have hard would floors Paint them dark colors. let them use throw rugs. etc etc.

bottom line is these homes are lived in roughly

Post: Progress through NACA!

Jay Hinrichs
Professional Services
Pro Member
#3 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 42,174
  • Votes 62,008

I sold 1 of my OREO's to a naca buyer.. And then tried to work with Naca on others.. they do get deals done but as the post say its long frustrating process they are.. for me as the seller I was able to pay down the buyers interest rate to 1.5% so no money down.. As a seller Naca is contantly looking for sellers that will contribure to rate buy downs and closing cost.. I was all to happy to contribute to move one of my 200 OREO's and get basically full retail for it. But try as I might it was the only one I could ever get to go through the buyers just get frustrated and stop trying. And or the buyers just really can't get their personal stuff together and keep it together for a year that it takes.. But if you get one and have a seller contribute your getting a smoking deal. When I was at the closing I think the buyers payment was under 200 a month for a house that would rent for 800... his insurance was more than the mortgage.. B/C of past bad credit of course..

If Naca could ever get its act together they would be a game changer.. B Of A was the underlying lender and I think they probably use these for the CRI minimums.

Many other caveots with these. But I can tell when I first heard about it I thought dang I can sell all my reo's in a year or so and get made whole well not to be.

JLH

Post: Best way to learn RE development?

Jay Hinrichs
Professional Services
Pro Member
#3 All Forums Contributor
Posted
  • Lender
  • Lake Oswego OR Summerlin, NV
  • Posts 42,174
  • Votes 62,008

@J. Martin

When you get off the 101 going into the casino if you go right by the Home depot you will come to a light were you make a left to go into the parking lot.. that's La bath, my parcel is just to the right of that. I have not been in the casino yet but it looks nice.