All Forum Posts by: Jay Hinrichs

@James Ross for those that live in the market and treat it as a business it works.. were this falls down is when someone from AU or CA buys one and has to rely on PM that this all falls down.. If I lived in your area or any area of the mid west I would do what you do and own 5 thousand of these and crate a whole buisness out of it and never deal with anyone below general manager :)

@J Scott totally agreed.. and when I took advantage of the GFC I personally bought 350 homes from 2009 until 2013 when I sold out. the only way I did it was that I had the persons buying the home and handling the tennats be MY PARTNERS..I provided the capital and they sourced the properties and did all the rehab and handled the rentals.. SO NO property managers to deal with.. I was happy to give up 50% ownership knowing that my guys that were procuring rehabbing and handling the day to day of tenants were my partners. Now not everyone can go out and buy 15 mil worth of rentals but on a small scale if you can hook up with the right folks this model works great.. big differnence when your PM rolls up to the house and he is the OWNER,, and your guy handling the rehab rolls up to the HOUSE and he is the OWNER...

@Tyson Cross being a bay area guy.. there are times a places were investors can come in and make deals.. 1989 to 1992.... 2001 to 2002... but even in 2008 melt down prices in the bay area ( and I am talking the pennisula not the east bay , north bay or solano county,) really held firm Marin , SF , Santa Clara, San Mateo, held value.. maybe the 1.1 mil home slid drastically to 985,000 but that was the extent of it. Most of the people on this site have no clue as to what values are like in the SF bay area.. heck they are buying rentals for less than the price of a car.. so no perspective at all.

Happy to grab a cub of Joe..

@Account Closed if your dad has 30 years of RE development he know more than 99% of people on this site why are you even asking this question in this forum

@Tyson Cross @Gregory Hodges waste of time.. there is no way on gods green earth that you can wholesale in SF and for that matter the peninsula from Marin county to south of San Jose,, maybe east San Jose.. the east bay Oakland Richmond you can do that.. However the competition is so keen as to be really a non starter unless you have 5 to 10 million liquid or more...

stick to the carolinas is my advice

@Rolanda Eldridge I would think you would have gotten many offers for your seller carry back note... Remember for every RE guru there is a NOTE buying Guru and those tout sending mailers to all that own Private mortgages.

@Mark C sell your property pocket the cash and then lend it out to trusted closed circle of investors. put a pref return on it apr wise then a little equity participation.. use hour cash to go to the bank and get a LOC that is used to lend and you can make far more than you ever would be a landlord.. CASH is king look at other options

@Michael Do

send me a PM will put you on our bid list for mechanical.

@Natalie Mil

here is what I would do.

I would contact a Real estate broker and explain the situation that you just want to get this property turned around then you want him or her to list it and sell it.. Offer to pay them a MUCH higher than normal commission on the list side ( example if full commission is 6% and they are a 50/50 split area. Offer the listing agent a full 6 % so their list side is double) but for doing that they will ( through their experience find you a quality licensed rehabber that won't rip you off) Many good agents have these people as part of their team. Then I would get it fixed and sell it. being a absentee landlord in AU is not like investing in an Annuity, your always going to have issues from maintenance to tenants to PM.. And if this situation is causing you this kind of stress then absentee land lording is probably not for you.

If you go shopping from AU looking for a contractor you are going to get bids that are probably going to be super high and you have no way of knowing if they are in line or not... You need someone on the ground in the market that knows what things cost that will help you with the bid process and selecting the contractor.

Once its put back together as stated above let the realtor sell it..

That is how I personally would get out of this deal.. Its going to cost you one way or the other. If you sell it now as is your probably going to take a big loss. But its still worth asking this agent your going to hire what it would bring as is right now.. You may be pleasantly surprised and you may just sell it now take your loss and move. But most likely your going to have to finish the project if you want to not take a massive financial loss and I would do what I described above.

Unless someone on this site wants to step up and do something for you pro bono I have done that for AU clients in the past but some where appreciative others were not and so other than a post on this site I would not go there again.

Lastly contrary to popular belief in AU lawyers and lawsuits over these types of things are very rare, as the dollars involved are not worth the price of litigating them. Especially against a non licensed person who probably has no assets and bad credit already etc etc.

@Joel Owens

Agreed RE is such a big field NO one knows it all or even close to it.

And as we gain experience we learn new things. A lot of what we learn is by doing it.. Trial and Error. Making boo boo's learning from those boo boo's.

The reality is what most investors gravitate to when they are starting out is what is most visible in their daily lives and that's basically flipping houses ERGO HGTV and all the off shoot celebrity flipper shows and people, then those guys get a name and morph into the the Seminar bizz. Its just a business of selling information and willing buyer and willing seller comes to play..

And unless one was handed an already operating profitable RE business we ALL started as newbies never have done a deal,, little or no cash, and somehow figured out how to succeed..

Those with backgrounds in finance and Marketing and construction. Have a distinct advantage over those with no fundamental RE knowledge. This is why for me I think a good suggestion to those starting out is get a RE license that will at least teach you the terminology and laws of the land.. And most RE companies give those course's for free or nominal costs ( in the hopes you will work for them when you pass the test.)

For me personally I had good background in Sales and Marketing, but I hired the accounting, and construction I have just learned by trial and error and or hired people that new that field. But when your starting out which is like we are stating 90% of the audience here they have to be all things. So that is where a seminar or paid mentorship could be a benefit to some... Not all but to some. and especially those that can afford it.

AS for little secrets my favorite that I learned was standing in the basement of this lovely bricker in Detroit the rehabber was working and they were painting the copper pipes grey.. I asked why are you doing that.. Response.. When the thieves come in at night looking for copper they see these grey pipes and think its Galvanized and they don't have value and they don't steal them... Nice little touch and a trade secret Eh.