All Forum Posts by: Jay Hinrichs

What is proper etiquette for

1. when someone votes for you  I have 370 plus votes in 896 posts in 5 months and have never acknowledged anyone who voted for me.. Is this rude or just the way it is.

2. Following is it proper to follow those that are following you.. I have a bunch of followers but have not followed anyone else. and what is following any ways.. does that mean when I post something that post goes to who ever is following me and vis a versa.

3. What exactly does a colleague request mean and do... I understand you accept them or deny them.. but once accepted what happens?

thank you trying to bang out 4 more replys today so I get to 900... And not one of my replys is a hey welcome to BP... I leave that to the other ambassadors.

@Account Closed 

  I am still working for a living far from done.  But I agree with you on pricing.

When you have a rare commodity... and demand you have value... The peninsula in particular.. there can be no sprawl... whats built on is basically built on.. the only real development comes from Tear downs.. Like the Barron park neighborhood I lived in in the 80's it started early 80's and when I go back now its just insane the amount of homes that have been torn down... The peninsula in my mind will become more like other parts of the world were real estate is not sold its handed down to the next generation thereby reducing inventory even more and keeping prices in the stratus... with the bay on one side and the coast range on the other.. Stanford taking up a huge area.. and super tight land use laws.. there is not going to be any crash coming soon on the peninsula... Now east bay and other CA areas this is not the Case we saw that with the GFC.

@Gabe G. 

@Jon Holdman 

  I just went through this exact exercise in Mississippi this year.. It was one of my new construction GOZONE homes that I bought  ONe of 11 that I currently have there. The tenant absolutely trashed it.. When I had my insurance go in they thought they would deny the claim because they thought it was just a little rough turn over... When the adjuster went in he said it was the worst he had seen in his 12 years. and I got a big fat check.. And this house was only 5 Years old scored concrete floors solid brick B+ neighborhood 90% owner occ etc etc.... The insurance company subrogated the claim and filed criminal and did a civil action.. since I got paid out I don't know if the Criminal went anywhere but they were going to try to attach wages etc.  So it can certainly happen when its above and beyond at least in the south and in this case.  Generally I agree with Jon though these are all civil matters.

@Jolynna Mccune 

  I am going to make a few assumptions this property is not in the best area of Memphis.

And you have gotten advice from 2 TK operators in Memphis  who deal with this everyday. One thought they had I think was tongue and cheek and brought out the SPCA.

The reality is if you bought in a C area is this is something that wholesaler turn key guys deal with on a daily bases they just try to get the houses sold to their clients as soon as they can so the risk then goes to who ever buys the house.. The thievery never stops it just becomes someone else issue...

Having dealt in 11 plus markets in the space here are some of my favorites from around the country... Remember all these guys deal with the same problems from Atlanta to Chicago. We are blessed here in PDX  we have a very small amount of it.. but that's another story.

1. This from one of the Largest PM's in Memphis.. He always puts his sign in the yard and has a large Jesus fish on it.. His comment was most of these thieves were raised in the church at some level and they will hit the house next door .

2. From my Chicago guys... BOard up all windows and use metal security doors.. while in the rehab stage and especially if there is mechanicals in the house that are new. Once you have a tenant for the house.. They walk in and see all new stuff and know the windows and doors will be replaced last... and right before they move in.. Its a coordination thing.

3. If your not going to secure the home. Do not do anything but cosmetics. all mechanical and water heater and appliances comes in within the shortest time frame possible from the HUD inspection to tenant. In MS we put the tenant in before the final HUD inspection.

4. Don't lock the doors.. In many instances if they can just open them come in and roam around that way they don't kick in the door jams.

5. Get the neighbors involved big time.. Have them park their cars in the drive way.. WEll I mean on the lawn were most tenants seem to park. This gives the impression of someone being there. and then use the security systems others are talking about.

6. Never put the condenser in until tenant moves in.

7. Prey Prey and prey harder as this is just a daily and hourly occurrence in this these neighborhoods.. So many people think they can buy these cheap houses and have all these good intentions then lose out big time because of the rampant theft issues.

8. INsurance make sure you have proper insurance... Make sure your agent knows the house is vacant and under reno.  Many investors that have these rentals when they go vacant more than 2 months the insurance will not cover fire or anything else.. read the small print.

Good luck

Few in far between.. Unless they are buying larger tapes.. the man power to buy from single investors is pretty intense... If you think about how many you would need in your pipeline to consistently do that amount.  And it certainly depends on the market..

In some markets you would be hard pressed to find 10 deals in a year.. Others in the areas of super low priced homes you could find 10 a day.. ( like Detroit).. whether you could sell them who knows..

But one things is constant... everyone one runs in 10's   Hey I am a big player I do 10 deals a month.. Hey when I get to 10k a month passive income I am going to quit my day job.

etc etc.

I haved funded about 11 wholesalers and TK guys across the country my biggest player does 20 homes a month on average TK... and his average turn time is a bout 4 to 5 months. so he needs 80 to 100 homes in his pipeline at all times.. So that equates to 6 to 7 million he needs on hand to make this all run.... Plus a staff of 10.

A nice number though is 3 to 5 most smaller guys can manage that pretty easily.

Wholesaling is another matter I think that's all predicated by the ability to source the homes that make sense to sell to others... So you need to be tied into banks and tapes etc etc. so you can get some volume. And that is a big money bizz as well.. Need lots of cash to make that work

@Russell Ponce @Account Closed 

  I would think a TRUE cop would have had to introduce himself as such before the conversation started... IE  this is JOE FRIDAY of the Santa Rosa police department we are following up on a complaint:

If this person called and just started asking questions and then said he was a cop I would think you should report him as impersonating a cop.

Equity skimming,,,, taking advantage of the elderly, or those that don't speak English etc etc   those are things one really needs to look out for... When we do business direct with an owner ( they have no realtor)  and if any of these things pop up... I make them all show up at title company or closing attorney and they have to be represented and sign disclosures etc etc...

@Kate Horrell 

  On line auctions has really taken the fun out of the bizz... Especially in the tax SALE states. back in the day I am talking the 60's through mid 90's.. in CA. you had to do your homework. But we routinely bought 100 plus properties a year in our county. and made great returns on 90% of them... And some were stellar  10X 20X type deals..

But now with bid for assets handling many of the counties we worked.. people bid on line from all over the world and drive the prices right up to retail.

rarely if ever in our counties would there be a home or improvements on the properties maybe 1 or 2 homes a year tops.. the rest was land... And there are companies that specialize in buying these type of properties then selling them through marketing channels.

Its a big bizz in Riverside and San Bernardino counties.

I had the same experience you had with TAX certs I tried it once... the amount of work it took to really make any true money at it was far more than individual investors could normally do ( at least me with my 15 minutes attention span) plus having them bid down. It was funny I think I spent 10k  I brought much more.. then quit when I realized I had no idea what I was buying I don't think I ever got one redemption.. So just a 10k learning experience for the old experience bucket.

Now I did see folks in the room working as teams with their laptops spending 100'

s of thousands of dollars so I am sure if you run it like a full blown bizz you can do well and certainly in those tax cert states end up with some homes... but like many said most of them are bombed out... I know as a lender I have let a few of my homes go to tax's and just took the overages as I did not think there was any value taking the asset.. I did more of those than I would like to admit.. But man when those neighborhoods turn to ghettos your screwed... Unless some TK company comes in and starts scooping them up to sell them to OUt of area investors who do not know any better.. 

@Johnson H.  I think your dead on about how the wealthy look at things vis a vi returns.

one of my bizz partners over the years loved to suck stockbrokers into this conversation.

Stock broker :   How are your investments.

Bizz Partner:  I am in double tax free muni's

Stock Broker:  Well return on those are low you could do much better.

Bizz Patner:  Well the return is fine if your like me and you have enough of them.

IE he has 8 figures and his tax free cash flow is more than that what most investors starting out and looking at that magic goal of 10k a month passive income ( or rental income which is anything but passive as we know) His double tax free's return him more than that DAILY

So yes as folks get truly wealthy they look for Safety then return... those starting out or in the middle of their careers are the one's looking for the homeruns.

And one might ask where this Bizz partner made his money.. Simple he owned a Garbage company and sold it to waste management in the day...Cashed in put it all in double tax free muni's...

There is no winning the cash flow mid west debate and the SF Bay area appreciation game.

Unless you have lots of cash and credit so you can buy 20 to 50 homes in the MId west and manage them like a hawk,,, One or two homes in SF will out perform those in the long run over time... Everyone wants to live on the peninsula... Not everyone wants to live in KC or Indy... JOBS JOBS JOBS and more JOBS  buying power smart people.. it all happens there.... Were else could a painter make a million bucks painting a mural at company headquarters than at Google.. Not going to happen at Angies list in INDY.

The problem most investors get when they think they need to buy a rental or two and they venture out of state.. Is that so many of them end up making little or no cash flow because they just don't understand how dog gone tough those rental markets are.. And if they bought through a marketing company they paid far more than real value they can never sell without a big loss.. I know I  have been there done that.

If you go mid west or east coast you need to find the wholesaler yourself.. and get the true deal.. not a west coast marketer like we see here on BP...

And if CA is too expensive look at Vegas and PHX.. closer and better plays in my mind.

Again personal bias

All I know is I owned 4 primary residence in the SF bay area from 1979 to 2001.. and I enjoyed when I sold each of them individually over 7 figure profit in total .. No way I could have done that in the mid west.. Only in the very top echelon markets of the big cities no way one could do that in any of the So called cash flow markets.

living in the area you can probably buy off of MLS which will give you a better deal than from someone who has had to buy the property for you, and has incurred holding costs to bring the property to you,, and or has to use some one like Ali Hipster who they have to pay a commission to to introduce you to the TK person. I believe you can buy on your own and then contact the better management companies ( one being Memphis Invest) and just have them manage the property for you... Put a little elbow grease into the acquisition and you will probably save some hard earned money in the process.