All Forum Posts by: Jay Hinrichs

@Karen Margrave

in our market you would only bring an architect in if you were doing a planned unit development and the house's needed to be part of the overall approval process.

If you were just building 100 lots you would only need Civil, Geo , land planning and the civil can usually do the land planning if its a vanilla subdivision. then once you had the lots you would then buy the plans as is being stated above.. need a site plan for each individual lot and you can have half a dozen flip flop garages and different looks in the front.

100 lot sub in our market is a 6 to 12 million dollar deal to get it to shovel ready. Karens Market it is 20 to 30 million...

some of my fondest deals though have been getting pre plats approved and flipping them to national builders... nice pay days on those.

Micheal you are a real estate agent.. did they not cover this in your training or in your office.. pretty basic stuff any Realtor should know. not to be picking on you just curious. Go to your managing broker they should have this answer for you in 30 New York seconds. :)

@Alanya Boyer

title companies in vegas give these out for free... there is usually a on line service that you can subscribe to.. I think foreclosure radar owner post on here but not sure what states he covers.

google on line foreclosures list.. Other wise just subscribe to the local legal paper and read through it and cut out the NOD's the old fashion way.

@J. Martin

hit me off line if no one has helped you with the 20k I could do it if we work out terms that we both like :)

@J. Martin

and as I think about it in my 12 years here in Oregon I have bought 5 primary residences.. first one I was in 6 months it was perfect timing bought just after 911 and market mini crashed sold it 6 months later on the rebound and made 50k.. then was in my next home 5 years and sold it and made 250k then moved into a rental condo that I had and over improved it and sold it and lost 60k sold in 2011 ish before market rebound but the next home was in a track of 14 I built and moved into that one and I have it on the market right now and will make about 175k on it tax free as I have been there 2 years.. and now living in a new home in Lake Oswego that I just custom built... So if I think about this... over 30 years probably made close to 1.2 or 1.5 mil in tax free money just on my primary resi's.. and that for a fact cannot happen in most mid west markets save the prime areas of Chicago, ny , DC, Charleston etc etc. won't happen were investors are buying 40 to 80 rentals end of that discussion.

@J. Martin

good points.. I think most people need to get started with a primary before they think of income properties.. But either way works in some cases. my comment was I think someone in the bay area or west coast should do everything they can to get a primary before they launch off into buying mid west rentals that can go upside down pretty quickly if they choose poorly to begin with.. And unfortunately they don't know what they don't know living 6 states away and only taking marketing messages as their due diligence.

and I guess I just look at my own situation.. I started in Milpitas at 18 buying my primary.. 8k down 8k send HM for a 80k shapel home did everything I could to save that 8k back then .. Sold it in 18 months for a 60k gain.. then stayed in the next house in N cal and sold it 4 years later for a 110k gain.. then Palo Alto I bought in 83 for 185k sold in 91 for just shy of 500k then up to the napa valley bought for 400k and sold for 850 9 years later.. and of course this was all tax free gains..as opposed to income properties were one would have to keep rolling up a 1031 to avoid tax at the time. and by the middle of this progression I then started to buy land and develop and sell lots and do some fix and flips.. If I look back I wish I would have and or could have bought some san jose rentals at 60k and I flipped half a dozen east palo alto homes in the early 80s bought them for 5 to 8k and sold them for 15 to 20k but hey making 8k on a flip in 1981 was all the money in the world. So In that sense yes I think buying a SFR in bay area from my personal perspective is priority one.. got to live somewhere and if you hold through the cycles your bound to make money.. as opposed to buying mid west properties that no one on the planet thinks will appreciate and thinking your going to actually amass any real cash.. Only way to do it is with huge scale and mass. Like I did last 3 years were I bought 350 of them. but when I rolled out we only did as good as if I had bought 3 houses in Cupertino in 09 and sold them this year and because I was buying them TRUE WHOLESALE not through TK operators.

pro schools is as good as any of them.. and you can walk into their office over by St. V's is you need to. I did my RE there and my NMLS

@Account Closed @Manch Hon

and in many cases keep

your day job so you can keep saving and building up cash to invest with.

I know the mid west looks appealing with the no money down scheme's or little down.. but there are land mines most West coast investors just don't or can't fathom.. just like LA is not Norcal things are different and in the mid west they are really different. at least from my experience. So in my day here is how it went.

LA promoter and there are plenty on this site.. they promote and sell properties for turn key companies throughout the mid west and south east and rust belt.

Hard money lender puts them into title .. then the buyer gets a rate term refi and has no money out of pocket and is counting on his or her 100 a month cash flow and they buy their max say 4 props because they can't afford anything in CA.

So now the cash flow does not materialize as advertised and the properties are negative cash flow ( happens more times than not) remember they bought the properties through CA based marketers so they are in essence paying the very top of the market they have put little or nothing down so they have max debt.

So now the houses are negative 100 a month each and or there is a major turn over cost say 5 to 7k very common and the no money down deal became out of pocket deal and a money bleeder and they will never amass any truth wealth as the houses on top of it all do not appreciate as even those that sell them will agree....

So bottom line if your going out of state you MUST be ultra careful not to fall in this trap and buy top quality property you buy low end dogs and you will be living with the dogs over time:)

from my point of view people that live in high priced areas like CA need to do whatever they can to first buy a home to live in. That is what is important to pay it off over time then your really have something for retirement.

But the dream of no money down and or low down positive cash flow is a strong one and put that together with very good sales folks and there you have it.

@Wayne Brooks

@James Wise

Having owned 3 Real state brokerage houses over the last 40 years.. Upon reading that bulletin I would sit down with my compliance manager and issue an edict NO working with suspected wholesalers or flippers.. I predict you will have RE agents turning in these folks left and right..

WE who have been in the business for any number of years know the call... "Hey I am an investor I want to buy 10 houses a month blah blah blah."

Adios to those guys..

I mean Lets look at this logically If anyone could sell properties they don't own to others for a fee.. Why would there be a need for a real estate industry at all... You would need closing companies attorneys title co.s etc. but you would not need C 21 or REmax or anything else. The guys and gals that are good at selling would just sell and make money on their. own.

Licensure creates a medium for proper disclosures and above all Ethics and fiduciaries to the buyer seller. Where as in wholesale and flipping you may have some ethics but you certainly do not have any Fiduciary relationships establish is caveat Emptor all the way...

@Account Closed

read on in the citations it also says purchasing and selling its a catch all to include all real estate acts. If you read the OHIO RE bulletin its pretty clear that the state is going to crack down on this unlicensed activity.