All Forum Posts by: Jay Hinrichs

@Alex Craig 

  the foreign investors by and large had no idea what a ghetto was or war zone... they were yield driven.. I would venture to guess that will walk away from 500 million or more in Ghetto dogs that have been sold to them in Detroit Memphis , Rochester, indy, Cleveland etc etc. Even Atlanta's hoods.. they just did not know what they did not know.  They were driven by such low prices and claims of 30% returns.. which we all know only happen for locals who buy at true wholesale and are in the bizz.

@Ethan Bowen 

  to answer your question absolutely .. I sold a 4.5 million dollar apartment building in Portland in 06.. for cash  IT was a 1031 rolling out of vegas.. These particular investors have no debt on anything.. and its a 5.5 cap... Its the quality of the asset that is so different. When you have solid west coast or other known prime rental markets the big money is going for safety not the highest yield..

As we start in RE we are looking for the highest yields generally and that's what leads many newbies into war zones and ghettos not realizing there is a huge difference in asset class's.   This particular property runs 95% full at all times.. PM is 4%  plus on site manager. My client comes once a year to look at it for 1 hour. then we go have dinner and fine wine.

they are now buying the one right next door for 3.5 mil cash same cash flow..

And it was great timing on their sale in Vegas if they kept vegas they would have lost 50% of their value buying in Oregon it did not go up but it did not go down and it cash flows uninterrupted with no management issues like clock work.

@Jonathan G. 

  many have commented and all have given you some good advice.

But this is an easy one... low rents = generally equal Intense management situations. If this was a deal or a nice Multi there would not be a seller looking to bail and finance it.

the Multi sector is red hot for quality assets as has been posted.

I suspect this is a semi ghetto slumlord situation with a ton of deferred maintenance and really tough tenant demographic

@J. Martin 

I did not have to sell that house to buy my house up at Silverado.. I was afraid of the 300 a month negative cash flow and I just could not see how the house could keep going up 3 to 5k a year LOL.... Oh well..... I could have also bought McQuen condos in San Jose for 5k a door FHA 500 down and 175 a month that rented for 250.00 and they of course are probably worth 250k a door or more... Lots of shoulda woulda coulda when it comes to BAy area RE. But life is good. I was young then too the McQuen condos I was 18 to 20 selling real estate and having fun really did not want to be tied down to owning much of anything I was like all young kids with more money than sense I bought nice cars.. an airplane and took great vacations :) stayed in aviation though since then and that has been a great life experience that I would not really trade for any amount of money

@J. Martin 

  So  J.  you think I should have kept my palo alto house I paid 180k for in the day?

@Jacob Taylor 

  Looked at the site... what they are doing is exactly what the Guru's do.. bus tours only looks like they take car's..  REally depends on the depth of the information and how much they charge.

I like to tell folks that one of the best ways to start if its fix and flip you want to do is

1. study and get a RE license  go to C 21 or many other brokers that will pay for the training if you just hang your license with them. YOu then get to network with those in the industry

2. STudy and get your contractors license... Get with a good interior decorator.. WE pay 150 to 350 per house to get all the colors right and ideas we would never do on our own and on the right budget.

3. If you need money start with friends and family but only invest when you have a clue as to what you are doing.. Pretty hard to take a few weekends and drive up and look at houses with 20 other people any one can walk you through a house and point things out its not rocket sceience

Have some patients and create a base of knowledge it will help you in the long run

@Jacob Taylor 

  Utah is ground zero for many of the fulfillment companies that are the back end of all the gurus you see on TV.  If you have an actual link to the site maybe we could take a look and formulate an opinon

@Account Closed 

  what you describe is a prohibited transaction in Oregon.. When I give referrals to brokers in the Napa valley and Palm springs from Oregonians looking for 2nd homes. I get a referral fee however they ask for my brokers license number and verify that is current.. That's my CA Brokers license. At least the bigger shops will.  I think every state has a different twist on this one.. One things is certain though its not the title companies job to decide who is licensed and who is not and who should get paid.

PS on another thread folks were talking about EM deposits.  When you do your transactions do you use an attorney to close them or a title and escrow company? And or have you ever used an attorney to do the functions of a title company on a closing ?

@Chris Martin 

I have never seen a  title company  get involved with licensure issues. and the broker in most states that I am aware of is the one who gets paid. Not the agent.. And its the Seller 98% of the time paying the commish... So if a seller says last minute hey my guy has no license and instructs title not to pay the agent the escrow company can disregard the broker demand but I will bet 50 cents that if that was the case the title co. would hold the funds until the parties reached a resolution or if no resolution was made would interplead the funds. The broker in this illustration cannot just unilaterally make a demand for the whole commish at lest I have never heard of it or seen it.

@Account Closed 

Really Joe,,, ... rare is it that an attorney closes a SFR or small investment deal on the west coast.

Big mulit and commercial deals multi millions etc  yes... but even then they work with the title company and the escrow officer handles most of the duties Attorney may draft the note or Deed  and review.

Maybe some of the CA investors can weight in and advise who they use for escrow closings.  completely different closing norms than an attorney driven closing state.