All Forum Posts by: Jay Hinrichs

@Ryan Melton 

  building a data base of would be targets and then staying on them is an excellent way to go at least you know your fishing in a pond that has some fish in it.

@Chetan Tandon 

if your mailing NOD list then your mailing is most likely one of 20 to 50 letters that they receive through the NOD process... All basically using the same script and technique that are taught on line on BP or at seminars.. I used to do NOD myself.. door knocking was the only way to get in front of those folks. I did not door knock myself.. I had teams that I hired do it... one women one man 3 teams working a 2 million metro population we hit EVERY NOD that came up created data bases , Had one employee that did nothing but data base entry and updates in real time.. In other words a business. But one day you may get a call.

@Ryan Melton 

  were these houses all vacant??  if there was someone living there would you have door knocked them ? and skipped the letter sending ?

good job... You would be a good real estate agent with that kind of drive.. probably do pretty well at it.

@Chetan Tandon 

@Ryan Melton 

what Ryan did was target market.. he only sent letters to homes that met a criteria.. Not shot gun style..

So when you drive around looking for deals you are putting far more effort into the process then just hiring a service to send out postcards and wishing someone will call you.

Depends on the market as well.  Little Rock probably is not hit as hard as other parts of the country.

I don't solicit for deals personally, but I get a lot of this collarteral sent to me on house's we own all over the US>.. Hot markets for me to get letters of varying nature are

Orlando,, KC  , Houston... and Charleston.  Here in Oregon I never get letters on any thing we own here.. But we are not distressed.. and a lot of what I get is reverse.. Its from other wholesalers saying Hey I noticed you bought a home in the area and I have deals please check my deals out....

@Anil Samuel 

  now that you got the easy part out of the way  ( getting the license) and if you have no formal sales training. Go with the company that gives you the most sales training and motivation.. KW is know for that... Maybe join a Team at KW so you assimilate quicker.

and Remember a top agent will make pretty nice money  while your doing your investing. Its like getting paid to invest.. not sure where your price points are in your market vis a vi how much the average sale is so you can figure out how many sales you need a year to say knock down 100k or better.... And if you really excel at it and like it you will make far more money than most that are just trying to buy and hold and or wholesale.. with the same effort.. The other main benefit of being an agent.. Is you are creating relationships with our clients. I sold RE from 18 to 32 YO  35 years later I still am in contact and do business with some of my clients I sold property to that many years. ago.. they can become your investors when your doing your deals..   Remember when your buying distressed properties from folks they are one and done.. they are losing a property etc etc.

Your good buyers and your sellers that are not distressed you create long term reltionships with and you never know when one says hey I got 500k just sitting here what should I do with it.  :)  It happened to me more than once

Hire PM... Tell PM you have a your own handy man if things come up

@Dan Walters 

  Great point on the HOE  out here on the west coast we do not have that.  Tax's are figured on purchase price and in some cases the assessor will come out and take a look and establish value then you get assessed.

In many states I have worked in tax's can double or more when you take the HOE away.

@Account Closed 

the issue with ARV when you get out of the West coast is its best case scenario.. And those in the business know that a home will not sell for ARV like it will here on the west coast. I don't know this market in particular and it may work.. But when your talking most of the Mid west rust belt deep south.. ARV unless its new construction is very tough to get.

This is the trap that CA investors fall into when they go out of state they get told that the ARV is X but because your buying from us you get built in Equity of Y so on and so forth I am sure you have seen the marketing materials.. So investor thinks with a CA mentality buys and thinks they got this smoking deal when in fact they have paid at market or probably higher than market.. This is where the 2% rule kicks in locals won't pay more than a % of rent.. ARV is not done through a GRM.. its two different valuation methods.

Or in some really lower end markets Appriasial WILL throw in GRM to get a home UP in value. When you have the locals all paying 25k for a 700 rent

@Dion DePaoli 

  GREAT points on low value notes... From my world were we do the mezz financing for those that end of buying these lower value deals... zero to 10k is all anyone can expect to get out of these notes and or if they take the property after expending a lot of time and energy.  And if an investor is going to take the property to sale and think they are going to sell 3p  they need to really understand the wholesale values.. And this is where the 2% rule jumps into the mix  those that buy these want 2% or far better and work their numbers backwards.. Other wise those that buy these homes for a living will just let them go through the system let the foreclosure clean up title then buy them from the asset manager or whoever with clean title.. And again usually at 10k or under. As most of these will require pretty extensive rehab.  And there are little demand for home owner ship in these price points.. these price points through out the mid west and south have become rental assets by and large...

I have never personally modified a mortgage on a owner occ so I don't have first hand experience at that but I did prior to the laws changing bought quite a few owner occ that were in default and worked with the owner to lower their payment give them some cash etc etc so they could get back on their feet and buy the home back or live there for years to come.  I did well over 100 of these..same scenario though of doing a loan mod.. And these were in Oregon and Washington so average values were 200 to 400k per home... Of all those deals I did I had exactly 2 buy the home back.. One got relatives to pay it off the other worked for a company that had a esop and when they sold they got a big check and paid us off... The rest made it anywhere from 3 months to maybe 3 years before they were right back to the same bad habits of when they stopped paying in the first place..

For this reason I never really got excited about trying to buy notes and do mods I think its just sub prime paper as a whole  ( obviously some will work)  working in and around the mid west and south were these low value assets are I think trying to get a borrower who already defaulted on a sub 500 month payment will be challenging at best over the long haul

@John Fedro 

  John I just did my CE for my NMLS license and one module was MH in park or out. and it was very clear they fall under Safe act and dodd frank..  But an extension of credit no matter how you couch it could be construed as a loan..

the reality is from my perspective and I have owned multiple HM parks.. the risk is not very great but you may not be 100% compliant either with your process if taken to the mat 

@Jim Johnson 

  the issue if its like Oregon is that MLO's have to work for a principal broker.. and the risk reward is just not there.

this is going to create a bizz opp for the first company that steps up and does just owner finance deals for third parties. 

MLO's make 2 to who knows how much per file.. 5 to 6 is probably average ( of course I am on the west coast were our loans average 300k .. but you get the drift.

HOw much are you willing to pay for someone to do the paper work for you and keep you compliant.. 250  500.. well as a NMLS licensed mortgage banker which I am  I would never take on this risk or liability for that small amount of money..

but if I was doing 100 to 500 a month in a boiler room  gin mill type of setting I would consider it.. I am sure someone will step up and go nationwide for this service and sell it like a commodity make enough to make the down side worth it..