All Forum Posts by: Jay Hinrichs

@Derek W. 

that's an interesting contract twist.. and it makes sense... gives you the ability to act like a cash purchaser and use HML to actually buy.

so in essence you can leverage your cash up without having to really have the cash. past the initial amount of one property.. I like it.

@Ian Fisher 

  Property management to be profitable for the PM needs the revenue from maintenance.

If the PM is only generating their income from the PM activities IE no brokerage actives or flipping IE TK.. The PM company won't stay in bizz by just charging a monthly fee or lease up fee.. they must charge all the other fee's to make any kind of real money.

I think your heading down the right path though... in your thought process... diversify and Notes can be a great way to do that as long as you choose your notes Very carefully. A very good First Trust deed will cash on cash out perform most of the Assets in the so called Cash flow markets.. Because of consistencies of income .. Same income every month no expenses at all. No vacancies No maintenance etc. But there is no leverage either. So if your investing for cash flow and paying cash in a market that you know the values will never really go anywhere.. Then a Note that makes 8 to 12% interest could be a great vehicle for you.. There are some tax implications for Foreign investors buying notes. But there is a tax exemption form that can be utilized as well.

The other point you made about JV with local partner works.. In my mind if your going to live 12km from the property and you have SFR's not Multi then this works well. We were west coast based I bought 350 SFR's from 09 to 2012 and that's exactly how I did it.. My PM and maintenance were my partners. No leasing fees no management fee's no mark up on maintenance etc etc. And even at that cash flow was never what we all thought it would be going into it... The reality of cash flow in SFR's in many markets is just does not match pro forma or marketing materials.. Your experience's are very typical and normal.

It also depends on the Asset class. I have GO Zone rentals in MS  that I can self manage no problem.. I pay a realtor a one time lease fee then handle everything else myself. But these are white collar rentals No sec 8  all tenants with professional type jobs.. I could not do this in the Blue collar areas at all there you need someone on the ground or you will have it far worse.

@Eugene Hoffman 

 I have never seen a closing Attorney or Title co.. verify anyone's license status.

I am a RE broker in 3 states and NMLS licensed mortgage banker I have never once been asked about licensure in almost 40 years of doing this..

In reality the issue is only going to come up if a deal went hinky and complaints are made to the DRE from the parties involved.

As a licensed broker we are precluded both in RE and in Mortgage from paying any kind of referral fee's... That is true is all the states I work in.

As stated just never seen a Title Co or Closing attorney verify these facts or even know the laws pertaining to licensure issues.

My reason for bend as well is its under the radar... prices did get hammered. and there could be some nice appreciation.  Not to mention your tenant pool is far cry different than what you will experience in the CASH flow markets of the mid west our southeast.

I was not referring to SFR's I was referring to Multi family. Also I like Hood River for vacation rentals. Bend got hammered and its on it way back up from what I know.

@Dante Devine 

   Risk = Reward  comes into play when you venture out across the US.

@Tom Mole 

   Tom's comments regarding Risk Reward are right on in my book

@Ryan Hammel 

  Bend Oregon..... New state 4 year college being built bringing in 5k employee's

Plus all the students...

@Account Closed 

  are you looking for a true line of credit or just a business CC..?

If your looking for a true LOC then your best bet is to start at all your small community banks create banking relationships with them then start small and work your way up.

Of course you can't complain about 0% interest, however I assume that's a teaser and if you run a balance on the card after month 12 you will pay interest.

I have 2 true unsecured LOC's one I got with WAMU before they got bought my Chase.. I figured chase would call it but they never did.. And its tied to prime so the rate is very low. And if there is a balance on it you have to pay principal and interest. Not sure if it reports to my personal credit. but PG is required .. My other unsecured LOC is with my community bank and I think I started 20 years ago with 50k its now substantially higher. but still unsecured and I know this one is not reported to credit.. 1 over prime with a floor of 5% interest only renews each year.. this facility gives one maximum flexibility when shopping for deals.. you just call the bank they transfer right then and there to your personal or bizz account and away you go.

@Eugene Hoffman 

  I don't think title companies get into the nitty gritty of who needs a license etc etc. or is it legal or not to. They just receive instructions as to who to pay and they pay them according to their escrow instructions signed by the parties

@Steve Babiak 

  Remember how hard it was For Seinfeld and friends to rent in NY.. same principal.. Then you had the board at Del Boca Vista and they were a tough group !