All Forum Posts by: Jay Hinrichs

@CK Hwang I sold my Atlanta holdings last summer. I entered the market in 2011 a year or 2 late unfortunately. and exited in 2013 with very tidy profits.

We bought courthouse steps and sold to hedge fund from Carmel IN.

We rehabbed and had them all tenanted were picky were we bought etc etc.

What I learned in the GFC is to take profit when you can. we left meat on the bone for the next guy got great returns and rolled into the next market we like.

@Bill Jacobsen 20% in the very competitive Willamette valley market is strong good job... And can vouch for rents here.. Not as strong as whats happening in the SF bay area but better than most places in the country. ( IE rents are paid and vacancy is an extreme rarity)

Just can't get those 2 to 3% rules those in the mid west preach about.

@David Krulac and to follow up your train of thought why for someone to be successful at it they need to have more than passing knowledge and or be taught from a weekend course.

However this thread is about CA. and its pretty cut and dry in this state.

Washington is just like CA... but Oregon is far different they do not like to sell tax deliquent properties and will go to far ends to keep that from happening.. I had a logged over timber site, that was surplus and a county employee tracked me down and even got my cell number and called me to tell me I was going to lose the property in 2 weeks time If I did not pay the tax's..

@Rick H. Rick and thats another bizz I do not see talked about here on BP is going after tax sale overages. We still have oh 50 to 80 junker lots in Lake county CA in our name.. and occasionally the tax collector will sell them and we get noticed and can apply for our overages.

And I have not bought a tax sale prop in CA since the late 90's however we got our our deeds from the tax collector within a few weeks and filed them we closed many deals to new owner within 60 to 90 days as a matter of course.

Socal and Norcal do business differently in regards to title and escrow.

@David Krulac I realize tax sales are far different in each state. In MS I lost a few properties as a lender in possession and was able to get the courts to overturn the sale using the same arguments you post above.

And there is one case in San Francisco in the 80's I recall it made regional if not national news. Little old lady lost her 800k home for 30k in back tax's.. even though the sale was done properly the Judge nullified it by what I have to assume was intense pressure from the public and doing the right thing. And or it could have been who ever bought it gave it back through negotiation.

@James Wise even the cheapest builders have about a 65 a foot cost to build thats no profit....so when folks are buying 50k house s 1200 sq ft there is no way to replace them .. and in most places you have to pay 65 plus demo costs p

@Marc Dufour

@Wayne Brooks

@Troy Fisher

Gentlemen,, My family has been buying CA tax sale foreclosures since the 1960's...

The Sale is final... The only way the sale can be overturned if a the owner that lost the property can prove through a court action that the county messed up the sale. IE missed the publication times, and notification requirements.

When we were hot and heavy in this bizz we would buy 200 plus properties a year and before you get excited we were buying properties for 200 dollars to 5k

Each title company had their own requirements for title insurance. Fatco wanted 5 years .. but we got Fidelty to insure the day we got the Tax sale deed and recorded it. the fact is there is no redemption period in CA.

however reality is if your only buying a few properties a year your not going to have any juice with a title co.. the one that insured ours ( we closed 500 plus transactions a year)..

worse case scenario is wait a year and sell it.

We did have one property that we bought were they challenged the sale and the county F up and the judge nullified the sale.. so one in 40 years

@Ryan Watson Ryan the problem with demo ing a home in almost all the cash flow markets and sub 100k homes is the LOTS are WORTHLESS..

To replace any kind of home would cost double quadriple what you folks pay for homes in your markets..

So if you buy a 40k home that rents for 700 a month..... there is no replacement value except for a catastrophic loss ( fire).. you could not rebuild that home for double what you folks pay for these cash flow homes in the mid west and East.

@Adam Roberts @Dmitriy Fomichenko what Dmitriy said that would be a prohibitive transaction.

@Brian Mathews I hear ya my point is so many folks pass away from HA and end stage cancer ( Hospice) that there is no way to know if someone has passed in a home.

I know personally my father, father in law and mother in law, plus many other family members passed away peacefully at home with their loving family at their sides.

@Brian Mathews the reality is if you think of all the folks that pass away from heart attacks at home.. or in hospice situations. these are not thought of as someone passing away in a home. this is why its not required to disclose these in RE disclosure docs.. nature happens.. The suicide, murder and we as society then put the hex and those homes.