All Forum Posts by: Jay Hinrichs

@Ray Eason 

  The reason you getting these responses is you may need a licnese to do business the way you are doing it.. and the attorney is CYA...

this is a on going debate about non license folks flipping houses without owning them

some states have gotten aggressive  OHIO I think is one.. It just takes someone filing a complaint with the DRE  and then you will see if its required or not 

@Jon Holdman 

my loans that I write for non recourse need 50% CASH down I only do deals at CTL not ARV.. Been there done that... But they are loans to IRA's which is my niche so they can't be guaranteed... I go 5 years on these for buy and holds.. But I only do this with as I said people with real cash and in very specific assets

@Allison Leung 

  one last point of what I do daily.. .When I bring in my profit from whatever transaction it may be   I ALWAYS PAY MYSELF THAT day... and reconcile the profit in the books so I know were I am at in real time. Plus if I don't pay myself that day I will forget to do it.

@Karen Margrave 

  my dad always preached this from form whenever I could remember  " tough times don't last but tough people do"  and once you bounce back there in SO cal your profits will be substantiall we have to hit a bunch of singles were you get to hit homeruns and grand slams  :)

@Roger Kanbar 

  Cap needs to step up and lead the team with his arm in my mind and we need a new star on defense to step up.. But yes I agree the NFC super bowl contender will need to go through SEattle to get there. and being here in Portlandia A am surrounded by these Hawk lovers  :)

@Alex Craig 

 it is a conundrum  but one must look at PM logically... Do you think the top PM's want to deal with the bottom of the barrel toughest to manage properties,, or would they rather manage homes were the rents come in on time without chasing them. The tenants don't trash the units etc.

If I was Managing low end rentals and knowing what I now know after getting a PHD in Mid west rental markets from A to D class anything C and under I would charge a flat fee of 200 a month whether there was rent or not..   Its really not being a PM at that point with that Asset class its really Asset management.. I think you would agree with me that those assets for a typical PM to charge typical rates they would go broke quick.

I always advise out of state investors to buy at the top of the market not the bottom.. Its the live well sleep well theory and also about capital protection... there is no doubt the areas of Memphis you speak that the people that bought those assets will be bleed out over time and ultimeatly end up selling to a BP wholesaler for 5 to 10k and lose all their money.. Of course were does this inventory come from.. Not all of it was the poor sub prime borrower a lot of this inventory comes from the unfortunate investor who did not know what they did not know and the slick West coast or off shore marketing companies that are financial sociopaths in my mind they care not what happens to the investor.

@Jai Coward 

 B/C it will not help you with a local bank or a national bank..

Banking and lending comes down to the three for four C's

Character, Collateral and Credit  along with Capacity.  And with many community

banks Character is number one Credit two collateral three... were with HML or private

lenders it goes the opposite its collateral credit character and capacity.

@Alex Craig 

  Exactly The Aussies were especially susceptible to pitch's form sales companies promising the Moon  and really not understanding that the Due unto others and you would yourself goes out the window when your talking out certain TK operators..and certain marketing companies that sell for turn key operators.. it was all about the Benjamin's. There were TV specials in AU  highlighted some of the blatant profiteering

@Jai Coward 

  with all due respect a D and B rating at the level of almost any fix and flipper is meaningless and a waste of money to pay for one.

@Shaun Reilly 

I suspect there are a few items missing from Karen's cash flow comment... But maybe not.. it could be 30% down was 300k or something like that so COC is very respectable.