All Forum Posts by: Jay Hinrichs

@Account Closed 

  I am not suggesting anyone break the dodd frank rules by any means Being a NMLS licensed Mortgage banker like I am I think I understand those rules pretty well.

And this buyer being an Attorney I had to figure I did not have to spell out how to protect himself if he choose to sell units instead of own them.. IN my experience with my parks on the west coast.. Another reason that you don't want to own the units is that lenders don't like it and won't give you any value for them. NOw in this case there is no lender. And then the maintenance issue as I said is a bugger with these old ( and just assuming single wides)

So yes if you want to sell the units you could just sell them for a few grand cash and be done or have a LO prep the paper work according to the laws of OK.

NOw on the lagoon I personally have never heard of one or know what one is.. I can only surmise its some sort of sewage system.. So I think my advice to go into the county and talk to the head sanitarian or whatever you call them there is pretty sound, after all it would be them who would shut you down if the system is condemnable.

On a side note I have looked at parks through out the mid west texas and those areas and they sure sell for next to nothing compared to our parks here.. I did sell my 44 space park in Vancouver a while back and I got just shy of 2 mil for it.  Parks in our neck of the woods sell for 4 to 7 caps  Or just about as much as paul is paying for the whole place we pay that amount per space :)  and then there are Socal and SF Bay area parks that are off the charts in value.  It is a great business that's for sure

@Greg H. 

 seriously would not even pay for my gas in my airplane for a month...  LOL

@Dick Rosen 

I agree with your point of view.. then there is reality for those buying in little towns all over the mid west.. Many times the only managers are mom and pops with no license and maybe they handle 30 homes etc etc. Really depends on the area your investing in and the asset class for sure. And then what your personal pain level is.. And or like some they want total control of their assets.. Or like Mike M who has a multi million dollar empire up and running and its a business to him with multiple layers of management between him and the tenant and absolutely no need for him to engage in PM by himself. But I know plenty of mom and pops that own 20 to 50 houses and this what they do for a living Wife handles management Hubby does fix it work and evictions,, this type of mom and pop bizz is very prevalent in the mid west were so many SFR's are rentals compared to other parts of the country..

End of the day as you say PM will make and or break you and interviewing and choosing a quality PM is paramount to your success..

Plus like I tell folks.. When your start looking out of state, why talk with some one sitting in LA trying to hawk properties in 4 or 5 markets. .YOu should start with a Good PM in the market and get the real low down on where to invest what price points are realistic what rent really is... I see so many buying form these marketing companies only to engage PM and rent is no what was advertised area is rougher than they knew etc etc.

Dick what is your take on Investors talking to you first instead of after they buy I would be interested in your take on that.

@Michael Evans 

  last word on this... NO mortgage broker in his right mind would participate in this... It has red flags written all over it from a Mortgage broker stand point.

1. Your not going to get a mortgage using a POA the mortgage company will want to deal with the borrower.. You have the patriot act and other issues that come into play.. In banking its called KNOW your customer.

2. Mortgage brokers get penalized if a loan pays off in less than 6 months. they are not in the bizz to make Bridge loans.. And if there is a pattern its trouble

3. last thing most investors are going to do is give you or anyone a POA to go out and put 300k loan in their name.. Way too many things could go wrong with this scenario that would be very detrimental to the investor

Good luck with it.. Like I said flipping the EM contract in a hot market seems a lot cleaner and easier to me..

I am a mortgage banker.. have been for many years.. I never did conventional lending just HML and I am not active right at the minute, But I did just take my 10 hours of CE and stay up on the rules an regs to a certain degree.. And as stated this would be a HUGE red flag deal and I really don't think you will get past square one with in on the loan side. And who really needs you anyway... If they have a few bucks and want to play the game its their money their credit,, what do you bring to the table that an investor would see as value.. Make them a huge whopping 1700 .... Do it for yourself but getting others involved is really a non starter I bet.

@Brian Mathews 

 my Madison go zone homes are the best rentals I have ever owned.. as you know the area has a huge medical so I have had doctors that were there for 2 years and other white collar professionals... And others that have moved for the schools the best public school system in MS.. So a few of them have had the same tenant since I bought them in 06 07.. other than filters and misc these are no issues. But again I bought them brand new. and paid 175 to 225k each for them. so they only hit the .05 to .75 rule.. but they break even which was fine with me because each one saved me 20 to 30k in direct tax payment to Uncle in the year I bought them.. And they have held value.. I am now liquidating them all and I think I will sell them for what I paid for them. so they served the purpose in my very high earning years of 06 to 08... But If I wanted to keep them real long term like let the tenant pay off the mortgage this is were I would do it... Because these homes will hold value won't turn into rental Ghettos.. etc etc.  Just be very cautious about having to hit a certain % return and going down the path of buying in lower end homes find a happy medium. Life is to short to take a risk on inner city if you are just starting out.  IMO 

@Brian Mathews 

  by starting out handling your own rentals you will gain the skills needed to know when your PM is not doing a good job.. instead of learning they are not doing a good job by very poor financial performance.. This is why those that sell first time buyers out of state properties and couch it that it will all work just handed it over to your trusted team etc etc that is like bringing the little sheep to a shearing  this out of state investors has no clue and then you get all these post about Hey my PM is terrible I need to switch. I am on my 3rd pm help me..

So I think the whole slant of BP is to learn this stuff your self.. And on your first one this is a good learning lesson then if you don't like it toss it to PM.. Or if you don't mind giving 25% of your cash flow to someone because you don't want to deal with it that's fine too.

This is why many recommend that you invest close to home instead of all over the country when your first starting out. Nothing worse than sitting in LA and your property in Philly or INdy or Atlanta is having issues and you have to rely on a for  profit 3rd party to handle it.

I don't care how good a PM or the team is or the boots on the ground are.. When your rent does not come in, your unit gets trashed your condenser unit is stolen etc etc. You really need to be right on top of the situation or your going to suffer financially far worse than you need to.

@Paul Choate 

  well drillers will be able to refer you to well monitoring companies as well as the county health department... the MH in our state are transferred by title like a car. I would just ask them to transfer the titles with no liens on them.  We pay a per visit fee. they do the work and turn into the state water agency.. Ours is called DEQ

@Account Closed 

  Yes and farm leases and nursery stock leases .. And anyone in our state going to an attorney for the prep of a lease option to purchase would be given the advice to record it.

And my favorite Timber Deeds of which I traded in during the great logging days of the 90s here in Oregon.

By recording the lease if there is a foreclosure the Trustee will have to notify the holder of the lease of the foreclosure just like any other lien or person with an interest in the property.. If more people recoreded leases they would not wake up one day and realize their house was going to go to foreclosure in a week.. they would know right at the start and have some ability to help with the situation.. Kind of like on a All inclusive DT in CA you have the right to pay the first if the person who wrapped you failed to make it.. At least the ones I did in the 80's in CA had a place right in the All inclusive DT for the bene's info.

WAG is all I can say.. and very frustrating when investors look at Zillow then question values.

@Brian Mathews 

  hows the market there in Starkville that might just be a nice under the radar city for investors?