All Forum Posts by: Jay Hinrichs

@J Scott 

  I too have done well with direct mail I would never do the post card thing as its over saturated.. but I sent out 80 letters to a very tight controlled list of people. After first creating a data base of my market through  the local GIS cross referencing that with google earth then creating a very direct mail piece that is hand signed and post marked in the market and answered by a local phone number with my guy on the ground that could be to the property in 15 minutes. .I put two into escrow with in 5 days of my very targeted letters going out.. and they are 75 to 100k profit each once completed.   Now to be fair I had one of my staff folks create the data base.. But that's what I have done for 30 years.. I create a very defined target of interest and then go at it as I mentioned above.. I also did telemarketing for years like the other poster said ( he was doing the stock broker approach) telephoning works for SURE.. I always smiled when the log buyer wanted to know how I got that stand of timber :) and then sold it to the mill 5 miles away. ....

@Phil G. 

 I agree with you on the perception of the industry... I am with Mr. Wise on this one I think many of these folks if they would just take the time and energy to get a RE license and learn from that angle and get paid to learn they would do much better than thinking they can just learn from a guru or even on BP  its nice to talk about it all and there are many very experienced and successful folks However I suspect most of them learned the old fashion way trial and error not just reading on line how to get rich in real estate .. I mean this is fun and all but not the way to rich's its a belly to belly business need to get out there and get it done.  I like Quarles T shirt and talk idea as well that is a good one.

The other thing I think that would affect a broker is how they handle the disclosures and who is representing who etc etc.  if you have party A make a P and S contract on the property you deliver the disclosures to that party.. but then Party A flips it to party B and the agent does not know and now you need to get disclosures to this person.. Etc etc. can create problems for the brokers vis a vi their contract duties.. and if all the I's are not dotted and T's crossed their broker may withhold their commission check.. and that would not make for a happy agent.  If our brokerage market here in Oregon ( I have owned a RE company) we do not pay commission until our transaction guru has gone through all paper work and all sigs are signed where they need to be and all disclosures etc are in the file..

I know I was the worse offender in the day :)

@Joe Villeneuve 

The loans at 75% ARV I submit to you are more than the properties are worth if you were to have to sell them NOW on the open market through the MLS ( not through a TK company or your marketing efforts) What an investor who is not you would have to do to sell them... this is why the mortgage market collapse and why you still have short sales mortgages are higher than the true value.. I flat guarantee anyone who lives in your community and is in the rental business can recreate the exact same asset for less than your loan amount... I wrote a book on this.. the Do's and Donts of out of state investing an insiders view.. and I am an Insider.. My HML company did 2 thousand loans from 03 to 09 and the exit was the exact strategy you espouse.. and it worked great in the day.. but that was then and now is now.. I did 250 loans in metro Detroit alone.. But thank god the refi 's were still going by the time I got out.. I was doing HML at 60% arv and arv in those days was 100 to 130k well all my HML clients refi at 75% and have 75k loans or there abouts on assets that are worth in a good day 30 to 40k like you are talking about.

Anyone can e mail me for a copy of my E book its an eye opener for those that just don't know anything about the mid west

@Jeff S. 

  Its the same here as when folks comment on CA verses other markets... Here you Actually get your rent ON TIME and you have little to no maintenance issues. Tenants stay for long periods of time and your property over time will go up in Value.

And I think the greatest thing that investors just don't know is that the markets like Joe talks about are NOT LIQUID you could never sell a home for ARV much less what you borrowed against it. At least on the open market.. It takes highly coordinated and expensive marketing efforts out of the area to sell those homes.. If there was not a out of state Turn Key outlet for those homes the values would be even lower...

I mean other than what we did a few years ago going to CA to sell PDX properties no one does that on the west coast all our buyers are here.. And you put a home on the market in PDX and it sells for ARV ARV is not a figment of the marketing guys imagination. So if you do need to sell you can and you can get top dollar.

Own a home in the cash flow markets that are dominated by rentals and try to sell it... GOOD LUCK the only buyers are the locals that will not pay what your in the property they just won't they only buy wholesale and they dominate the market.. Its only out of state people that pay these higher prices.. Its why the locals can get the 3% rule or 5%.. But out of state NO WAY 

@Jeff S. 

  PDX is certainly under the radar but the big institutional Multi family buyers sure know we are here.

Back in 04 I did a fly and buy marketing campaign to Bay Area investors ( I brought my team to SF) we sold hundred plus homes that summer here in pdx for rentals.. And I get not one call from those folks complaining about tenants or their investments here.. Even had a few of the investors sell in Marin county and move up here permantly.

@Hal Thompson 

  you hit the nail on the head... Loan exceeds TRUE value of the home.  I have been there done that on the cash out refi program.. this is what led the nation into the abyss with to many borrower with zero cash into the properties when values crashed investors walked.

I just love all the mid west talk of hey your getting instant equity ARV is X but you only paid Y and out of the Y the promoter made a nice profit on top of the actual all in costs.

What we don't see is what happens when you don't get rent  which is common in depressed markets and down on their luck tenants.. Be it Hud or not..

There is a reason these homes are selling for so much less than other parts of the country.. Its called RISK = REWARD  and those areas are far riskier for the landlord than others so they are rewarded with higher returns if they can pull it off,,,

In the Scenario Joe talks about the cash out refi... The lenders are just going right back to what got them in trouble the last go around...

@Jai Sookhakitch 

  list it with a good broker who specializes in that product.. or on loopnet.

If you have just tied it up and don't own it yet.. and are looking to double escrow it.. then beware.. True developers will check title and see that you don't own it.. they will wait until the close date and when you don't close they will just then go direct to the owner and buy it and cut you out.. I know that's what I would do ..... NO wholesaler wanna be flipper is going to sell me a piece of dirt.. not going to happen.

I have been on the other side though were I tied up the dirt and was flipping it to a builder but I brought my cash in closed and sold to them next day.. whole nother kettle of fish vis a vi flipping cheapo sfr's

@Shaun Lapsley 

  in correct you can have someone form overseas wire you funds at any time I do it fairly regularly.. they will want to use forex so they don't get hammered on exchange rates.

@Jacob Patterson 

  you could make the case that work caused you to move so you could still take the exemption if you can substantiate that indeed work did make you relocate...

@Ronnie Boyd 

  that part of Oregon is a beautiful spot. Little rural for my taste.

I am right here in PDX... And yes Charleston is happening.. It does not meet any of he rental rules that are bandied about on BP but there are some nice fixer opps.. I am building new construction in fill close in downtown.. 400 t0 600 price point