All Forum Posts by: Jay Hinrichs

send me your e mail and  I will be happy to pass it along

I wrote an e book that was distributed in Australia  as many Australians were buying or trying to buy Turn Key properties in the US and many of them just ran into the wrong people and got into some pretty poor deals.

I teamed up with an Australian fellow who was 0 or 3 in buying cash flow rentals in the mid west and south east.. I wrote 95% of the content and its just the basics of what you look out for and what to do and don't do and little things one may not realize when buying out of area. And the book is based on my experience of one foreclosing on close to 200 mid west properties personally,, and then buying another 350 at the bottom of the market..  I would be happy to forward this to anyone who would like to read it and of course if you think it has value pass it on..

@Robert Carl 

  Robert what was described is the remedies to a bad tenant situation.. Out side of the box would be to send Guido over to the offenders new abode and bang some heads and shake them down is that the outside of the box type of constructive advice your looking for?

I grew up with Eichlers never lived in one but a bunch of my grade school friends did.

in Portland they knocked them off and call them Rummers  they sell for a big premium in our market

@Greg H. 

  there is a reason judgments sell for 5 cents on the dollar  Greg hit the nail on the head.

I used to go to all that trouble... but then they file BK and you get a letter from the trustee instructing you to give all the money you collected back to the BK court..So your actually out the money you collected and the fee's you paid to collect.

I have a good friend that owns a company that buys judgments nationwide for 1 to 5 cents on the dollar.. the ONLY way they collect is they let them season  IE to right at 9.5 years  most judgments are good for 10 years.. then they do the skip trace and garnishments the debtor had usually completely forgotten about the judgment and has new bank accounts ext.. these guys are really good at what they do but it is an expertise that the average landlord just is wasting time try to perfect a judgment.

@Sebastian Caycedo 

  I hear ya... But the issue is TK operators do not put foundation issues into their proformas and an out of state investor who finds themselves with a foundation issue will most likely not get the same price benefit you as a very experienced local get.

And some homes will be 10 to 30k to fix I know I have paid for many through rehab draws and these are my guys that have 10 plus years at buy and flip so I know they are getting local prices... so if every 5 years or so you need another 2 to 4k to keep your home level well with price run up you have currently going on in Texas  you  just spent your positive cash flow you were counting on for 20 to 40 months...

And I am sure a local is not paying the same price as someone buying turn key so they can easily afford to put corrective foundation issues into their long term budgets and do just fine.

That's the point I was trying to make...

@Andrew Eaton 

  We moved to PA for the schools that was 1986.. and I thought it was outrageous to pay 186k for a 3 and 1  900 sq ft home that had no dishwasher or garbage disposal.

But my kids got a great education as you stated and I sure wish I owned that little jewel today  LOL

@Shawn Thom 

  Shawn  my guys that I fund in the south deal with this on Many of the homes. and those that live out of the area can really be in for a shock when they see there home has had settlement of varying degrees.. Doors that won't close.. AS you state plumbing in the slab breaks  cabinets all crooked cracks in sheet rock... Its a major issue.

So I am usually funding 2 to 3  month that are going through major foundation repairs IE 15 to 30k ... so when someone buys a home and has it as a buy and hold then one day its foundation goes.. there goes 10 years of positive cash flow or more down the drain as it were. Perimeter foundations are not so bad you just jack them around but slabs can be bad.  Its amazing really you can see a house that is just cracked in half.. Like I said Humpty dumpty houses is what I call them.  And great opportunities for the flipper.. And a real bummer for the owner.

@Shawn Thom 

  Foundation issue homes are some of the best opportunities..

And based on your knowledge and experience in Texas that virtually every home will deal with it over time... That makes buy and hold in Texas that much more risky because one day you could be fine the next you have a cracked foundation and its 25k to put humpty dumpty back together..

So when people are Flocking to Texas right now ( herd mentality) and not putting future foundation issues into their long term cash flow performa's I think your correct that is wishful thinking at best.

@Lana Charova @Curt Davis 

  There are no systems to follow in Real Estate... there are proven methods of Marketing and negotiations. But this is not rocket science and anything that we discuss here on BP or is taught in the new wave of Guru has been done many times in the past.

The folks in AU need to take some responsibility as well... I mean who believes that you can pay someone ONLY 25k and they are going to do everything for you and set you up in Real Estate so you can just start making massive money... this defies logic.

And it really in my mind goes back to the MLM marketing methods they are basically the same. Right down to the trigger words you hear on the TV or Radio.

1. Make the money you DESERVE  like people that just pay for the Class DESERVE to make money

2. Financial freedom so you can spend more time with your family and children..Well maybe your family and Children don't want to spend more time with you..

Its the same... all over the world... For whatever reason people just think Real estate is the highway to rich's and like any other business it is for some ( but only a minority of very determined hard workers)  It just seems like the harder I work the luckier I get.. And then it takes market timing ,, and its regional as well... AU is a perfect example.. Anyone who bought property in Sydney 15 years ago has made a killing in appreciation. Just like those that bought in the SF Penninsula... The financial gains for those home owners is because its were they live and they wanted a roof over their head and home ownership... IT was not because they followed some system that some guru taught them