All Forum Posts by: Jay Hinrichs

@Dawn Anastasi 

  or more like 600k  true story on the high end all over the country.

I do have some fears of certain markets were they are flooded with rentals.. WE saw that a little bit in certain markets were rents soften because of supply and demand.. however seems to be stable at the moment.. the real risk is it the Gov decides to wake up and lower the HUD subsidies to market rates.

@Jason Rucker 

  Lets get one of yours up here....

@Jason Rucker 

  you probably recognize a Portland Foursquare when you see one.. its a Mark Stewart design.

does it have a basement.. if your in MI I assume your not paying very much for it.

if it works for a rental and is not flooding or cracking walls I would not let that kill the deal unless there is some major structural issues as well

I posted another one just FYI

http://www.youtube.com/watch?v=jVpDZQVsgSE&sns=em

This was a nice semi infill we just built and sold build time start to finish 5 months.. It was our very first foray into the Charleston Market.. Next time up tough we will not do a full wrap porch.. framing in that market is almost double what we pay in ORegon..

this one sold at 292k within 3 days on market. with a 17% net profit end of the day.

We currently have 5 more going and one is the subject of the reality show "southern charm" I will update that one once we see the video from the production company it should be pretty cool.

@Hattie Dizmond 

  with the new safe act loans most commercial banks are precluded from doing any owner occ at all.. Like my little bank can do 6 in a year .. any more than that and they need the full nmls route and all the other Tila stuff... It used to be as you described though..

@Sandra Lee 

  I don't mean you literally need a PI what you will soon find out when you start hunting down your prospects is that you can't find them.  They will be deceased,, moved  etc etc.

You need to be able to chase down next of kin neighbor's etc to try to find these folks.

Maybe in Florida it will be easier however the folks I knew that were halfway successful at this that is how they were set up.. It took a lot of effort to find the rightful owner and or their family.

@Jordan Archer 

  that strategy is a receipt for disaster if your just starting out and or have limited capital.

Its Far to risky for the seller... These types of transactions have a very high mortality rate when you sell to bad credit homeowners.. ( think Sub Prime) you place the seller in jeopardy not of their own making.  To be above board and able to pull this strategy off means you have the means to take out the sub too loan if the alienation clause is called by the lender... and or you can make payments on the home when your end buyer defaults and you have to either foreclose them out.. ( which in FL.) is a 18 month process.

So think about it.. you sell to a dead beat bad credit. they move in.. Stop paying you now have to pay the first plus pay all the foreclosure costs... What usually happens is you don't have the wherewithal to do this.. ( of course you might).. you then default on the sub too from your original seller.. The original seller is in a very crappy position.. they don't own the house and do not have a security interest in the property and could end up with a foreclosure on their FICO

Not a good strategy at all for the sellers.. Unless you can prove you have some substantial capital and will use it to protect the seller, (again when your end buyer goes TU which happens very often in this scenario)

@Nat C. 

 commission are negotiable you can indeed pay an agent more if you so desire but unless they have a buyers broker agreement with you your not obligated..

I had an agent do that on my very highest flip I did it was a 5 million dollar flip.. she brought it he buyer and she sold me the property.. So I bought it for 2 mi. she doubled ended that so 120k... then I listed it for 5 mil as I am a broker.. she brought in the buyer for 3% or 150k and then wanted a bonus because of all that she had done.. NOw granted we made a deep into 7 figure profit but we also had the cash when no one else would step up and buy this type of home which is somewhat rare in our market place.