All Forum Posts by: Jay Hinrichs

that when the Bitterroot is running at 2700 CFS the Green drake hatch won't happen

That we live in the greatest country on Earth.. that real estate business is one of the best on the planet as anyone can do it regardless of education wealth ethnicity etc etc.

Along with Cash is King... Buy low sell high.. And low end cash flow rentals are Risky proposition to the un aware.

NMLS only means that they are licensed through the federal system.. its not an endorsement of any kind...  Just FYI...

I am a licensed NMLS mortgage banker ( in active) so are hundreds of thousands of others. Its what you need to work in the Mortgage bizz. you would be more concerned if they were NMLS licensed

Agree with K marie  I would sell this one.. Unless you see upside short term say 400 to 500k in 3 years.. then a small negative for that gain is acceptable just like CA. investors.

Although you take on risk of a Minnie bubble and values drop...

30k net gain on a 350k project is not the end of the world.. Most builders that build new construction net 10 to 15% ( of course they are building multiple units a year)  And many rehabbers don't do a heck of a lot better given the competiton. So your not in that bad of shape is you can NET 30k  including ALL in costs. ( which most investors have a hard time calculating) as K marie points out many times.

Nope have no clue..

agree with the gold rush mentality though

Este  Southeast

@Matt R.   for companies its just not that profitable.. most TK guys are making there money just like any other flipper.. on the front end. . when the buyer closes the TK operator has all their profits in pocket then its up to the owner to deal with the property and the PM...

In a partnership like we have been discussing there is little to no up front fee. So TK operators by and large just could not do this as they have to pay there WEst coast marketing folks and or national marketing folks  then there over head and such.. so they need to make there profit on the sale.

I did do just this as you state and bought 350 SFR's and it went very well and we sold and liquidated to some very nice results.

@Mike D'Arrigo @Brie Schmidt Mike I am going to disagree with you on the point between being and investor and a landlord.. Owning SFR rentals is just not that passive of investing in my experience which is considerable on the subject. And to represent or market or sell folks on the fact that this TK type of investing is the same as walking into your stock broker and picking a mutual fund is just not reality when it comes to these investments and the amount of time and effort and RISK one has to put into them.

Now again I am talking more on C and D class units... I own quite of few A class SFR's and the management experience in those is not anything like C and D. Its a totally different tenant base.

I have seen your product and your on the upper end for sure in Indy compared to others that are selling TK. So your personal experience's may not be as significant as those buying lower end units. 

My point in this thread is that in the long run if one can find a TRUE EQUITY partner on the ground in the MARKET you want to invest in that you WILL make more money in the long run and have much fewer sleepless nights with a partner than you will buying from companies that are making a profit selling it to you ( not off of MLS) and managers that are in the business to MAKE money and they make it off of your cash flow and repairs)

AS I stated.. If you have no leasing fee's no PM fee's and no mark ups on repairs. IE you have a partner that does this for you plus puts in equity. Not only that the partner on the ground is going to get the deal TRUE wholesale not marked up 3 times between the wholesaler and the contractor and the marketing company, thats the reality of the business.  If you have to set home and let other people source your deals your going to pay far more than a local in the same market and in the same asset class. If you have to hire PM to manage your property you have to pay for that.  So that was my point of the thread and what I liked about the pod cast.

AS for when partnerships end.. You simply need a buy sell in the LLC agreement. And since they will be in the properties wholesale and not marked way up they can probably exit for at least what they paid for them.. Where its very unlikely that anyone who buys through a turn key operator in a C or D class will make a profit trying to sell on their own it just is.

@Cliff Mccue 

agreed until one has owned a SFR rental for 3 to 5 years return on investment is just a guess.. And of course the marketing companies have to top one another in advertising returns.. so they leave a few key numbers out. So they can compete with each other.

biggest one is under stating on going maintenance when your buying these older homes your just going to have issues come up through out the year...

I think the statement "live were you want and invest were it makes sense or is affordable" leads many down a very bad path if they try to do it on their own with little or no ability to analyze the risk and are putting 100% of there outcome in for profit companies. .  ....

Investment properties are not passive investments as you stated . And out of state is very difficult at best..  ( Caveat I am talking about low end rentals) not A to B grade properties or nice condo's that have management in place for a lot of these things.

@Michael Dunn 

and really depends on the class of property.. if your buying in a predominantly rental area its hard if not impossible to establish a true ARV.. If you are buying in ESTABLISHED and KNOWN owner occupied and are doing RETAIL flips then you can get a pretty good handle on ARV through all the methods mentioned above.

However if your trying to comp low end cheapie houses that are rentals.. then they are only worth what basically a wholesaler will pay for them.. regardless of comps. I learned this the hard way myself.

every state has companys that do back ground checks and such for landlords  average fee is 40 bucks... for criminal and credit.  like Joe says just google them