All Forum Posts by: Jay Hinrichs

@Phil C. 

  I would prefer this not be posted on BP I don't want it to fall into the wrong hands  :)

my monitoring functions are in op  how do you go about getting them to work?

I sent an e mail to BP headquarters but I thought the membership would be able to give me a quick fix

thank you in advance

@Jai Coward 

your LLC does not build credit.. unless your looking for a D and B rating. at the level your talking about its all about you personally the LLC is simply to provide a level of protection vis a vi liability ( that's why its called a limited liability company).. you can build business relationships with lenders but its your relationship not the company.

@Jered Griffith 

  is absolutely correct this is how deals are done and structured.

@Clay Smith 

I also have never seen a state or federal chartered lending institution give a loan to an LLC with no PG's unless the borrower was or is HUGE financially IE have liquidity at 20 to 50 times the amount of money the LLC's borrowing... Its against the banks lending charters to make loans in this fashion at least in my experience.. But in GA who knows maybe that is why GA led the nation in bank failures.. They got to loose with the dough and did not have enough PG's or cross collateral to protect their loans.

@Brie Schmidt 

 Agree with Brie  hard money loan to a rate and term refi is what sunk the industry back in 08 when lending rules changed.. it was painful for borrowers who all of a sudden could not get refied and for lenders ( like me ) who had to wrestle with borrowers that owed us Hard money rates and could not refi.. Our loans were never designated to go more than 6 months its not financially feasible in most scenarios especially if they bought from a Turn Key company and paid top of market.

@Brett B. 

  since your not an agent and you do not have any fiduciary responsibilities and you really want the property which it sounds like you do...Then just go find the seller and if they will meet with you meet with them and then you can educate the seller in a nice. Way and put your number out there so they know your serious... When the listing expires because its way over priced maybe they will contact you.

@Joel Owens 

 Joel hit the nail on the head this is no different than the West coast sales or marketing companies selling mid west Turn Key and charging more than the properties are worth but hey they sell 100's a month to people that live off shore or in CA... I have had many Aussie clients come to me with deals that were so grossly over inflated they just did not know they were paying way to much.. One jumps out at me particularly a 4 plex in Youngstown Ohio. it was a piece of crap.. it was bought at tax sale for 5k the Aussie paid 99k cash as is.. And then could not figure out why he could not sell it.. same with many markets in the US in the Turn Key space... many homes are bought sub 10k basically nothing done to them then flipped for 40 to 60k  with extreme profiteering going on.. And those homes are being sold to what exactly Joel is alluding too  SUCKER BUYERS  and because Houston is soup de jour right now in the Turk Key world and apartment world the seller is looking for that dummy not a local who can and is buying wholesale like you are...  

@Karen Margrave 

  Life is good right now... but back in 08 to 2010  it would have been a completely different story... My little e book is basically my story of how I wrestled with the mid west.

it would have been... come to work and address my 16 employees and get our default list which grew daily.. then figure out what the heck we were going to do... It required me moving to the Mid west for almost a year to get control of my portfolio there. .I could not do any work in Oregon so I lost a year of income... Instead of getting proceeds from escrow closings I was writing checks to close deals with funds that were never going to come back..

And that is how I got a PHD in Mid west cash flow market investing Nothing like being on the ground and pounding on doors trying to figure out how the heck things could go so wonky so quickly..

Now I am as busy as ever but I just retooled in a fashion that I only need one full time book keeper everyone else runs their own business.. From my building were I hire the GC at a contract rate.. and control all the funds.. But I don't have to micro manage them Ya if I wanted to be the builder and do it all I could make 10 to 15 more per house that I currently pay them but I would truly be killing my self time wise and would not do as good a job as they do.. Same with all my fix and flip guys just let them make the big buck aroos and we make our little return but we do a lot of them... so it does add up...

If I could not get out of Oregon In the winter I would go back to how I worked in Oregon in the 90's  I would live in the Napa valley and commute up to Oregon for 3 days a week.

I sent a request into the world headquarters of BP but is suspect the audience can help me with this quicker and I don't take up valuable BP staff time.

My monitoring functions are no longer working.. I press monitor thread but nothing happens I no longer get e mail alerts etc etc.

any advice from all you computer guru's out there would be appreciated.

@Allison Leung 

since I have 3 distinct and different enterprises surround by and in RE my day is as follows.

up between 5 and 6 am  I never set the clock  just wake up when I am done sleeping

so say from 7 to 9 am its looking at the deals I am funding for fix and flippers on the east coast...

10 to 11 its off to the bank to wire funds to the east coast fix and flippers escrows or to sign docs for this activity.  then pop over to fed ex to overnight docs back to the east coast.

come back to my home office check e mail converse with my full time bookkeeper its usually how come we spent this on that and how come we did not make more on that deal LOL

then a little lunch or a lunch appointment usually with my banker.

then afternoon I make the rounds looking at the new construction I have going on in Oregon. Or sometimes meetings with city folks like last week had a sit down with the Public works department as we were scheduling a pre con meeting for a 27 lot subdivision I am building.

Once quarter I take a road trip out east and visit half of my vendors that I fund fix and flips for ( I am not a HML) I only do Jv's with them I am a capital partner big difference. that's a week on the road.. Like on the 15th my schedule with be Chicago get in late spend the 16th looking at my investments there.. then that night I am going to a Chicago meet up that Brie is holding... Next day fly to Charleston SC look at my new construction I have going there and look at the 5 lots I bought there in the last 45 days and decide which ones go first.. Also meet with my new bank there I am getting 2 vertical loans at a local bank which is really cool.

Birmingham next day  meet with my fix and flipper there I have been doing business with for over 10 years.

next day Jackson MS to meet with my guys there then back to  PDX.

Oct going to Hawaii for 10 days. I take a 10 day vacation every 90 days or less starting in Oct because the weather in Oregon well its ya now a little dreary.

Yesterday I played hooky and went flying over to sunriver and had a hot dog that cost me 350 bucks..

@Joel Owens 

  Good catch on Bob in the plane with his pooch... He was probably hitiching a ride with Duncan Taylor in his G 4 

@Jeremy Hale 

  your missing a few  things we build for 200k and sell for 400k but we pay 80k for the lot we have cost of capital ( in my case 6% because I borrow from a local community bank) you have sales commission of 24k  you have tax's insurance.. my builders risk insurance my comp insurance that runs 2 to 3k per house when your in new construction I have one full time bookkeeper that makes his monthly salary etc et.   The reason most folks don't buy and build themselves is two fold.. It is exactly like you stated in one of your above posts they are worried that something will go wonky with the GC.. believe it or not its hard to find a GC that did not get bruised in the GFC so even though they are not the borrower banks look at GC creds and will not lend if the GC has got bad recent history.. ( not all banks but many) as well as construction to perm loans are pretty tough to get.. Then you have the time it takes to build a home.. the fights the couples get into during the process its very stressful building a home and having to make every decision. So that is why people by and large just want to buy when its done.. Plus the builder is paying the carrying cost until completion.. Now we pre sell half or so of what we built.. But we have strict guidelines and time tables for the buyer to make decisions.. and we do not allow them on the Job site but once every 2 weeks at a prescribed time and we make them have their Realtor present. this cuts down on visits as the Realtor does not want to stand around why the client walks through the house... Etc etc  these are the nuances.. The only reason I even list my houses before they are dried in is because my bank will not count a pre sale against my pre approved 12 loans I can have at any time ... So if I have 5 presales I can have 17 going vertical at anyone time.  But yes good question.. hopefully my long winded answer helps you understand some of the process in Newco.

@Roger Kanbar 

  Your welcome Roger and good luck... I am like Canadian Air traffic Control  once you talk to me you will receive a small bill in the mail  LOL...

I am having coffee this afternoon with a BP member that lives here in Oregon.

Then finally its the start of the 49er season hope we do well again this year.

@Account Closed 

  Thank you Marvin I guess I did not really understand what you do or what your company does...

I do not want my E book upload or published on BP... but again I deeply appreciate the thought and time you put into trying to help me through the steps if indeed I wanted to put it up on BP... I am happy sending it to those that take the effort to send me an e mail.. I like to send it to them with a little note of encouragement and ask for feedback.  And or any other follow up I may be able to help with.. I like to help folks in my own way... I am sure the e book will get spread around organically now that I have sent it to all these BP folks.

The content of the Book as you state is not something that would benefit you.. You from the sounds of it and by reading your very well written posts could write your own.. Since your in the maintenance business that would be an invaluable E Book to the many landlords on this site.. I encourage you to do that.. As we all know bad maintenance is a leading cause of death to a cash flow investor...