All Forum Posts by: Jay Hinrichs

@Joseph R.

Not absolutely sure in your state, however in most states I work in. If you buy a TAX DEED it does extinguish everything accept IRS tax liens ( IRS has a redemption period however rarely will they step in)

In TAX certificate states. I would think for you to take ownership you would need to Quiet title. and the act of quieting title will extinguish all Liens and encumbrances..

Jon is correct as well first in line is first in time.. or we used to call it a race to the recorders office

@Dawn Anastasi

Dawn those are just awesome numbers.. 1595 rent out of a 88k homes that for us west coast people is mind boggling. we rent 350k homes for 1700.

rents have a ceiling here. like 1.5 mil sfr's will rent for 5k a month or so.

its not exponential on property value vis a vi rent.

No wonder you mid western investors have all the dough :)

@Dawn Anastasi

Geez Oh pete you guys are so spoiled 2.7% 35k for a 1k rent.

We have the .50% rule here on the west coast.

I suppose the only benefit or difference is that your homes probably are worth what they are worth and really never move in value.

West coast investors fully expect something they buy today to be worth 10 to 50% more in 5 years and in many markets that is what will happen

Any one have any success with this. One of my turn key clients was using it, but the company just said they would stop writing policies effective Post haste

for me personally I could never figure out how they could make it. if they were working mid west and low end markets

@Account Closed

Out here in Oregon the Green would be growing Weed.. Now you talk about a landlords worst nightmare.. you get someone moving in and making your house into a grow house. the house can be destroyed in no time.

@Account Closed @Brian Gibbons

Brian not sure what it cost to put a child through college in CA now.. I put my daughter threw UC Davis 1998 to 2002 and it cost me 50k all in class's room and board. she also interned and made spending money. And I am proud to say I paid for her education so she has no debt to worry about. ( Plus I bought her a car when she graduated, if she hit a certain GPA that was the deal)

being raised in the Napa valley she thought about viticulture and also pre med. but at the end of the day she got a degree in Managerial economics. graduated top of her class ( say proud dad) and in one of the worst hiring environments ever 2002 ( post 911) got offers from Microsoft and Intel. She chose Intel and has been there for 12 years now and is one step below controller..

If there is anything that I learned from that experience is if your child can put the time and effort in and get the GPA the top companies will hire them. If your child goes through school and comes out at 3.0 or lower they have a tough time when hiring is like it was

@Brian Bower

@Bill Jacobsen

All the mid west to deep south investors or rust belt would no way touch this deal. but this is what we have here on the West coast. I sold a duplex in N Portland last month for 379k rents were 1000 and 1200. different world here.

Ergo people push off to the mid west were you would buy the same thing your describing for 100k not 250k same rents.

It just is what it is. when you have the 2nd best land lord market in the country second only to San Jose CA this is what you get.

LOW returns but you get the returns and you can cherry pick tenants. Section 8 what is that.. No one even knows what it is in our market because it for all intense and purposes does not exist.

different world. thanks for sharing.

@Account Closed

I had two business partners in my Silverado funding days. One owned a garbage company in Norcal and sold to waste management. The other a serial entrepreneur who ran the largest wine concern in the US and took it public.

One owned everything in cash period and had no debt the serial entrepreneur had all sorts of deals going and believed in debt and financing but that I am sure because of his background running public companies.

In our business we borrowed from banks ( credit facilities) to loan to those that needed MHL's and we made the spread which as you know is pretty nice, but even those facilities required us to have 20% of our own capital in each loan.

So the capital structure of each HML I made was our strip of capital ( cash) at 20% banks at 80% but with the bank never being more than 56% of appraised value. if the loans were higher LTV we needed more cash.

So at the end of the day I think it depends on what your doing how big you are and of course your deal flow..

As I move forward loaning money I require CASH into each deal I do with very few exceptions.

So combination of cash and OPM seems to be the right formula.. Investors and lenders want to deal with those that offer to put their own skin in.. The day of your great idea and deal and our capital is much tougher unless its friends and family

@Matt Mason

Matt I think you have the grasp of turn key.

If you can search my post "turn key demystified" I give chapter and verse of my almost 15 years and over 2,000, HML's made to turn key clients. I too had to weed through some pretty bad actors to find the few good ones that actually give the TK investor half a chance.

And unfortunately I have 1st hand personal knowledge of at least 200 people that failed miserably buying turn key.. They were clients I had to foreclose on when the turn key model did not work the way it was advertised.

And your dead on your in ground Zero for TK companies target marketing.

LA basin is second to no place in the world were the most investors that buy from TK companies come from. SF is in the Top 5 AU CA and NZ and GB follow up the rest.. But your not getting many folks that live in Say KC that buy from a turn key company..the locals just do it themselves Right?

You have many radio shows in LA touting turn key in some form.. I am sure your familiar with them, at one point I have done bizz with each and everyone of these folks clients. Its how it was done Pre 08.

As you know the sentiment here on BP from the Old Guard and heavy contributors is DIY learn here and then go DIY you need no Guru at least that is what I get from being on the site less than a month.

And lest one of the Gurus or turn key guys with less than reputable presences tries to troll here for bizz they are flamed straight away. See the Marquis REalty post.. etc etc.

In your area if your not familiar with FIBI meetings I highly recommend those. "For Investors by Investors" I will be a guest speaker at the April 8th meeting in Manhatton beach.. There is no selling and I pay my own way ( of course not hard to get me out of the Oregon winter to the sunny LA coast for a few days)

@Matt Mason great question. I think a lot of investors like to be in total control of asset IE buy a home themselves and want no other partners. And want it to be were they can drive to it..

Others like to spread their funds over multiple investments.

In the syndication approach its really all about the operator and the asset both are equally important in my mind.

Turn key business is defiantly down in sales volume. At least with the 7 or 8 I do bizz with. Hedges have defiantly impacted a lot of these companies. As well as currency fluctuations

However as long as TK companies can show 8 to 10% returns,, ( in a 1% CD) environment people will continue to buy

If your going turn key just make sure PM is nailed down to a Tee and buy higher end. Thats my opinion. super low end works for those that live and work them, but Turn Key with super low priced rentals is really really tough.. And there is no resale market. these homes are what they are and will be what they are for now and until they are torn down burn down or become just functionally obsolete