All Forum Posts by: Jay Hinrichs

@Engelo Rumora

and as a follow up to the larger management companies that specialize in apartments. they may or may not partake in brokerage fee's which can be substantial if you selling 3 to 20 million dollar properties. But they will be the go to person for the investor in the DD stage.... The investors in this class will rely very heavily if not almost 100% on what the PM has to say about the property.

@Engelo Rumora

@Jimmy Klein

Quick answer to this is they don't make any money, unless they are very large IE 700 to 3k units and have a bunch of multi family. those that run 100 to 300 units of single family C class just make wages at best.. And most do it because they have to, they need to support their turn key operation without it the investors would be failing all over the place and they would have a difficult time selling new deals. Just about every top notch Turn Key company has PM in house and its a necessary evil Not a profit center, they make their money selling the house and making the 10 to 30k on the sale.. If they break even at PM that's all they are looking to do. Until of course you get to mass and scale then all the lease fee's, service call mark ups. late fee's and PM fee's start to add up. And if you manage 2 to 5k multi family doors it can be very good.

But they do it different.. The PM charges maybe 3 to 5% but the owners pay for the onsite manager and all other overhead. the PM basically makes his money doing the books and managing the onsite person to make sure they are in line with performance and collection of rent.

@Gary Parker

And same with the Home Security business. 90% of the door to door sales forces that cruise through America originate in Utah

@Account Closed

The bar has moved in HML since the great GFC.. In our market in PDX were builders basically all went broke in flaming fashion.. Most are back at it but most now have to use HML. As banks are precluded from ever lending to a person or entity that they took loses with. ( or at least most won't) so in our market there are many buidlers that were multi million dollar companies that are now in the HML pool.. We could never have loaned them money pre 09 they would have laughed at 2 point and 12% much less 4 and 14.

@Jason Topolski in most lending scenerios your name would appear on the trust deed or mortgage as the beneficiary. The broker placing the loan makes the points and may charge a % for collecting payments and forwarding to you.

This is called servicing the loan.

A good reputable HML with years of experience ( and there are many in each and every good size city in the US) will be glad to broker funds for you.

ASk a good closing attorney or title company for referrals to those that have a track record.

@Lenny Longo

I use construction monitoring services when I do new construction loans. however I do not usually use them on light to medium rehab deals. My bank here in Oregon that gives me vertical for my new construction uses said services once a month before we submit for our draws.

@Gary Parker

Start with Premier marketing and move out from there.

the reason is the work force that works the boiler rooms are full of young mentors that are fresh off of their missions and are used to rejection and are really great at the up sell. they get blasted on the phone and they move to the next one.. these are your mentors that are with you for the year.. their cubes are full of notes pinned up with their information that they will impart on the Students.

@Engelo Rumora

When I first started contributing to the AU forums.. investors only talked about Gross rental income with no concept of net.. that was hard for a US investor to understand as we all focus on Net.

@Jason Topolski

Jason you may want to start with a very good reputable HML that will bring deals to you and help you with due diligence they make points you make yeild

Look for quality properties and quality fix and flippers as well. stay out of war zones by and large.

that would be my advice

@Engelo Rumora

Your fellow country men are lucky to have someone watch after them. If they were just trying to manage property mangers from AU.. in those price points it would be frustrating for them no doubt.. Especially as the average AU investor has no clue as to what the tenant base is in the US.. The fact that so many US citizens do not have checking accounts just blows them away.. Banking is all automated in AU.. In our low end areas of the US there is no banking its all cash, money orders, pay day loans,, Car title loans, cashier checks etc. ITs a death spiral most of these folks get into then it becomes the habit and culture as well.

@Brian Gibbons

I can see that in certain markets.. were your banking on appreciation.. but in markets that don't move much historically they seem fruitless to me personally.