All Forum Posts by: Jay Hinrichs

@Mark McKibben 

  Oh the joys of being a local in the mid west ... you can stay right on top of your rentals NO PM .. this is a great strategy for locals. its the out of state investors that get hammered.. and then you local guys pick up the spoils am I right ????? :)

options are limited

@William P. 

 Sponser Is critical.. last thing you want to do if you want to only spend a few hours on your investments a year is buy property out of state as some above have suggested.. That endeavor is not a passive one and the returns are only pie in the sky.

Look for those that Have skin in the game do not fall into the trap of working with West coast marketing agents that own nothing and only make a commission selling you some dog in the mid west  or rust belt.

I wrote an e book on how to deal with TK companies and out of state investing if you e mail me I will send you a copy its free and non biased as I have nothing to sell .

Anytime you get on BP and say you have 250k to invest you will be hounded... tread carefully and in my opinion only invest with those that have deep track records as @Brian Burke mentioned or those with deep experience as @Joel Owens 

mentioned as for SFR's @Sharad M. has a lot of experience and you can buy direct from him not through west coast middlemen that will take a huge cut off the top. NO need to deal with them.

@Bryan Hancock 

  I would think as HOt as Austin is bank financing for vertical would be like it is here in PDX.

90% of cost 6% 12 month loans.. Only fee's are appraisals.  But that's just building on infill or sub lots.. your bigger project could be different of course.. I just closed on a 27 lot sub. with this bank  we are building out the streets and roads etc and then go vertical with the homes and my cash needs for that one was 25% of finished lot values. So  2 mil deal we needed 500k.. rate 6.5 on that one.

@Bryan Hancock 

I did not read the above Reponses and they probably have more first hand knowledge than I do.. I went down this road a few years back for our building company, and it was not feasible because of the amount of workers you would have to hire to meet their requirements. It was explained to me by the lawyer who I consulted and sets these up is that this financing works better for manufacturing type business.   So I never went any further, and for me my local community banks have gotten back in the game so cost of capital is 6% and very pain free.

@Chance Cooper 

  loans on bare land can be tough.. craigslist is not the best barometer of value. As Rick mentions list it with a good agent.. If there is a step up in basis on the inheritance there may be no tax due on sale ( check with your accountant).

It is the chicken and the egg... Have the buyer send a cashiers check to the mobile notary with instruction to hand you the check when they get you to sign the Grant deed and hand it back to the mobile notary to send back to the buyer..  That's one way you can do it.  probably some one line pay pal type of stuff also that I am not aware of.

I know title co does not like to handle transactions without escrow fee's which would eat up 25% or so of your sales price..

What county is this land in.. Just curious.. We still own a bunch of low value odds and ends in a few N. Ca counties as well.  I sell a few now and then to those that want to buy for cheap them they remarket them for 50 down 50 a month to folks that just got to own land for some reason.

@David Friedman 

  Nice margins David,,, we can't do that with any consistency here in PDX.. 10% is more realistic sometimes better but 30% is very very rare.. of course on a levered basis coc we do 100% to 300%  on new construction.

@Account Closed 

  Lenders these days won't go for hold backs   they will require the work to be completed prior to funding and for the appraiser to come back and complete the 442.

Appraisers are very cautious these days they don't want to loose there licenses for these type of issues.. Private financing No biggee

@David Friedman 

  what are your usual profit margins on your flips?  Up here in Portlandia that is ultra competitive .. we are seeing low of 10 to 15  and a good one will be 40 to 60k.  then you have upper end homes that require a whole lot more capital but profits can be 75 to 100k plus.   what is a good deal in your market..