All Forum Posts by: Jay Hinrichs

@Account Closed

On the sub too can you do those if there is a NOD filed? I use to buy all my rentals in Oregon and Washington sub too...Off the NOD lists.. However the laws changed dramatically back in 07 or 08.. two laws were past to present equity skimming etc etc.. Just wondered If CA and Co followed suit.

@Tony H. fundementials and learn from a title co.. good advice... as a young newly minted RE agent in CA.. My fathers attorney gave me a very sage bit of advice.. He said learn the court house,, IE learn how to run title , dig up maps in the surveyors offices Learn how foreclosure and tax sales really work.

And to that end In the good ole days in CA when title plants were still done by hand ( now all on computer) I befriended a title examiner and would bring in address of properties I was interested and he would let me watch him as he went through the book and pages and did a title exam.. I also worked with my fathers surveryor part time holding the chain and he tought me how to find plat maps and recorded subdivisions that had been forgotten.. those are two valuable lessons that I learned early on and used profitably to this day. Its nice to be able to go to any court house in the US and do your own research instead of waiting on the attorney or abstractor or title co. to give you info to chase down that deal.

My favorite was finding old subdivisions in CA that were platted in the 20's and the assessor for tax bill convenience converted the lots to one AP # 40 years ago. Instead of sending the same owner 50 bills they sent them one bill. You dig out the old plat... see that in fact that 5 acre tract has a shadow plat under it. take it over to the title co. and the planning depart. get lot confirmations and for not much money you have 50 legal lots of record and off you go.. WE did this many times in Santa Cruz,Sonoma and Lake co CA... a lot of the lots are worthless even today but there was enough to make it profitable at the time... I think last time I checked the county records in Lake co. we still had 100 plus properties in our name :) so I agree learn from a title co if they will give you the time go into the recorders office pull out the books dust them off and figure out how you run a chain of title all good things to know and give you a leg up,

@? based on these Homes the US has to be the cheapest place in the industrial world to live.. given police protection shopping health government stability and of course the government may pay all your bills as well

I am looking for a few good fix and flip dudes, that would like a consistent source of acquisition capital.. I only deal with those that do volume on a monthly basis,, if your doing your first I am not your guy... Prefer those established in the Turn key bizz

All markets

funding Size 250k to 1 mil per client..

I currently fund 2 companies and will be bringing on a 3rd this month looking for one or two more. This is a JV not a hard money loan.

[email protected] if your interested

WE will do 5 year non recourse ( IRA's our specialty) in the following markets.

Memphis,,,,Atlanta,,,Dallas, Houston, Charlotte, Orlando

NO C class NO HOOD's...

50% Cash down... NO LTV loans. New purchase only.. No credit pull or tax returns. We prefer aligning with reputable Turn Key operators and funding their clients.

We fund many from OZ and Singapore and GB.

E mail for rates and terms.

[email protected]

@Dion DePaoli

OK Dion you stepped into that one :) I got my RE license in CA at the age of 18 in 1975.. got my brokers at 20 in CA both as early as you can get them. Still have active license there even though I have not lived there in 12 years but I refer bizz to agents I know and make some really nice referral fee's for just providing a name of someone interested.. I am a RE Broker in Oregon were I live I have been in active for a year but am activating the license shortly. I am a RE broker in MS ( in active but starting again) I became a broker In MS to deal with my OREO that I owned I wanted the ability to list my own deals and have access to the MLS without have to use an Agent .Being a RE broker and having access to MLS is in my mind critical to profitability in the markets you work. I am also a licensed NMLS Mortgage Banker in Oregon and soon to be in 39 states when I do the UTS test later this month..My LO is inactive in Oregon B/C I only do construction loans in Oregon and its not required to have a license to do those. The Private Money lending that we do in the Turn Key states are commercial Loans so no license required.. The Safe act has been talked about ad Naseum .

The act of taking a licensee course does not prepare you for real world it just gives you the knowledge to pass the test and to be familiar with basic laws of Agency, terminology that one will need in the business , Ethics , etc etc.

You learn the bizz by doing the bizz. All these seminars folks go to are really just trying to take what most of us take years learning and depart that wisdom to you in a matter of days weeks or months. You as someone trying to break into the field just don't know what you don't know..

ONE last point and I think its a big one... RE is so Regionalized. and you have this business of Turn key and flipping that started in earnest about 20 years ago. Where you have all these companies selling properties without the benefit of RE agents and or MLS .. And these are pretty much investment rentals East of the Mississippi river.. Here on the West coast the wholesaler is just a different animal.. When I buy a foreclosure here in Oregon or CA for example I put it on MLS and sell it 95% of the time to a home owner.. What I see East of the Big Miss is that most of these homes go to Cash flow investors and would be technically OFF market.. I know some of you probably sell to homeowners but correct me if I am wrong but I am thinking most of you are flipping to those that want to buy and hold for long term wealth or that is what the average investor has read about and is trying to achieve.. The other major point is.. in the West rentals buy and large are apartments NOT SFR's.. Like it is in the Mid west and up until the 08 crash only 6% of all SFR's on the West coast were rentals. compared to say Memphis or other MId west towns were that number could be 40 to 55%.. Getting a RE license is just the first step you will learn by working in the community put in some time and learn it right.. Or you can go the seminar guru route and maybe hit on a small point that resonates.

Nothing like real everyday experience to help you along...

Its amazing how people think they can go from Not knowing anything about a bizz ( like RE) and then become an expert in a year...

If you use analogy of say becoming a pilot.. You can't just go to a seminar and learn how to fly a jet. You have to go through the progression,s you learn in a little single engine.. then get a Instrument rating then a multi rating then a type rating in a JEt etc etc.. In the old days you could be a first officer with 300 hours total time .. WEll that did not work out so well after some high profile accidents now its 1500 hours will substantial turbine time... I have been a pilot for 30 years ... What I fly now and where I fly I would never have done when I was starting out :)

@Daniel Hart

Do an equity participation loan.. where interest is enough to cover his imputed then give him participation in the upside that can then be characterized as Cap Gain.. I use equity participation Notes very frequently and built a 350 home portfolio doing this.. It was one of my better loan products for small builders and developers.. Made some pretty substantial hits prior to 08 ... would lend small builder say 500k modest interest rate. they would prosecute the plat.. Sell to bigger builder for say 1mil.. and I would get my modest interest rate plus what ever I negotiated on the profit side.. usually 25 to 40% of the ups.. All written into the promissory note.. Not sure how my CFO booked the long term gain the interest of course was taxable short term.

I can send you a copy of one of my custom notes that have my equity participation verbiage in them is you like just e mail me off line.

PS is there anyplace on this site to share those types of docs with the whole community I would be happy to do so.

@Dion DePaoli

Any of you think about simply getting a Real Estate license and working part time.. You would learn all you need to know to engage in most of what your trying to do.. And if you popped some deals along the way it could be a paid apprentice ship and or get on a successful Agents team and learn the ropes .. go to work for a commercial brokerage that specializes in Multi..If you want a carrier in RE go into the field.. Plenty of Part timers start this way then become full time..

@J Scott Being new here 1 week now I am not sure what Jackie has posted in the past.. But I have met Jackie many times and she is a nice lady and pretty easy going.. Her and I have debated her techniques.. My opinion they only work in very select markets and would not work ( especially on the West Coast).. So we agree to disagree... I think the main issue I see here on BP is the divide between the do it yourselfer and the ones that are trying to provide a "turn key product" which in my opinion and in my experience which is quite deep in the space.. Turn key is anything but a passive investment.. Rare is the rental that goes smoothly and the only thing turn key is the wholesaler and rehabber getting the house ready for a tenant then the work starts and the passive arm chair investor has their work cut out for them the rest of the life cycle of the investment.. They must manage the managers, and that is a tough job in many cases.. I mean if BP is all about doing it yourself.. Then I guess to take that to the base level where does an investor draw the line.. Getting help buying the house.. IE maybe a foreclosure buying service that will bid for you. I have seen a bunch of them in Atlanta when I was buying at court house steps Vegas were I bought and Phx. I knew these 20 something's with 1 million bucks in cashiers checks weren't spending their own dough... Then do you hire a GC or are you going to sub it all out yourself and save that mark up.. Then once the house is done you run your own ad put your own tenant in there and manage it yourself. I guess that true wholesale.. So at the end of the day there is profit all along the way.. I think its up to the investor to decide if they can afford to spend the time saving money.. Some pay way to much for convenience of the deal as is well publicized especially in the day when Californians who could not believe they could buy a whole house for 50k.. this is the same mentality of the Aussies heck their transfer tax in AU is as much as these houses in many cases and they rationalize their purchases accordingly...

So for this site I think it provides both sides of the equation and the reader lurker can decided to order off the menu either ala carte or the full meal with white linens and full service

@Rick H.

Rick Dave Del Dotto was my neighbor in the Napa valley I lived right across the street from his winery, I enjoyed many a late afternoon drinking his wine and listening to his stories of the day.. He made a lot of money selling his info. Its no secret the best pitch men make far more money than anyone trying to do deals Unless they are big time developers builders own a HML that has maybe 500 mil to lend.. those are big money guys.. I was at one of Armando's deals in Cerritos last summer... 400 people probably at least 200 buying units at 30 to 40k a pop.. do the math.. True he rented a huge room and 3 smaller conference rooms for 4 full days and had 8 or 9 bus's that went out daily to show people great looking houses out in San berdo But then there are the guys working the audience reminded me of a high energy auction in a way with guys working the room pointing out the next bidders.. But they did cover a lot of detailed subjects about finding and rehabbing houses. I was there 3 of the 4 days talked with many students and like has been mentioned most of them were really diggin it and thinking they got value.. Some I talked to were back as guest and if they were telling the truth were doing well flipping homes.

It was the same event that Forbes reporter was at and wrote the article in Forbes about Armondo making 50 million last year. He might very well have grossed 50 mil but we all know it cost probably 10k per buying unit in over head and TV and Radio to put their butts in the seats...

I personally did a little mini Guru back in 2004 when I sold a bunch of Duplex's in Vancouver WA.. I rented a room in San Jose paid for radio and print.. I think it cost me 50k for the night all in.. But we sold the whole project out 125 duplex's and I was just making a 6% brokerage fee but it was a great return on my 50k But if we had laid an egg it would have been painful.. That was fun. My wife was the listing agent at the time I got up and played Guru and made the presentation. first time I had spoke in front of 300 people.

I like many go both ways on this I have been financing ARmondo's turn key partners from about the beginning of his rise.. And really have had no issues with his students as my borrower clients. Had far more issues with Mid west turn key guys selling C properties Quite Frankly...