All Forum Posts by: Jay Hinrichs

@Curt Davis

Fideltiy bonds are usually for employers to insure against employee theft.. what these PM's have done is criminal and should be turned over to the cops the DA and if interstate the FBI

@Dean Letfus

Dean could not agree with you more.. When I was buying houses I got calls from many AU marketers and wanted me to provide inventory,, I was doing my TWH model and they really did not get it.. But hey wanted me to provide houses I was not into selling my stuff at that time but would listen and the profit taking was off the charts not to mention they did no due diligence or asked me any pertinent questions about me or my operation. they just wanted product and hope for the best.. SEll make money duck and move on...

@Curt Davis

Curt I think I am going to get in trouble if we make a deal on the forum. I have only been on here a week.. Robert and I have been doing bizz for 3 years now.. He sold about 100 of my TWH notes.. And we started together about 18 months ago, I created the NON recourse note product for him and we have done about 20 mil since its inception.. Be happy to see what your doing.. contact me off line so I can continue to be welcomed here.. Its like old home week for me here all sorts of people that I know or did bizz with years ago.

@Chris Clothier

Chris good evening how are you... I got fully bought out of TWH in Oct. and I wrote our friend a pretty neat e mail and have never heard from him again..

I will relay it to you off line I think you will get a kick out of it.

I stand corrected on the insurance.. and that is a great point,, Anyone with a rental should ask to see if the PM has this insurance in place and its active. Like we do with appraisers. Most of the C class PM's I have ran into over the years were mom and pop types with ratty operations. B class or better is were its at..

@Curt Davis

I know most of the AU guys, and I have financed many of their buyers with my non recourse financing.. I did 20 plus for Lorne last year.. you probably know lorne.. He was one of my clients from the good ole days.

The AU and NZ investors only know what they don't know.. And what they don't know is that information about real estate abounds for free in the US. IN their countries it does not.. There is no Zillow Trillia.. there are even buying type agents in their own country... But I do know and have done a lot of bizz with a few Turn key guys in the US that also charged a one time up front fee. But it really covered more after care than just access to" the super secret off market no one can ever get it inventory" You cannot believe some of the crap that has been unloaded on these poor people.. houses that were represented to be rehabbed that were never touched. I mean out and out criminal activity. I have spent 4 years talking about it over there. and we ran most of the crooks off of the sites..

@Curt Davis

@Jackie Lange

I shared a bottle of Silver Oak a few months back with Bob Lucroy and Walter and I had lunch last time I was in Jackson.. I think we were talking when I first started TWH I ran that to 350 houses.. We sold Atlanta and made a killing.. Still own 300 of them. I sold out to my partner in Oct. Now just staying on the lending side like when you met me on the cruise.. Remember when I was doing 50 loans a month in Jackson :)

@Curt Davis

There is no insurance for this.. And a bond if you had one would be meaningless maybe 20 to 50k and next to impossible to collect on.

@Dean Letfus

Dean I was talking to one of my turn key borrowers in Memphis and this guys name came up.. Swear it happened a few hours ago.. I guess he had a real rep of pumping values and dropping severely overpriced properties on AU and NZ investors.. Of course that's not a new thing.. I just shutter when I see what some of the OZ investors send me and what they paid for them.. Its really criminal in many ways in my opinon.. Just un conscionable profit taking and spuiekerism to the maximum. AS I state many times I am of the firm Belief that C properties are NOT appropriate investments for out of area investors. For many reasons. You have C tenants and your experience with a C property manager.. Its freaking hard to manage these houses and not many can do it profitably... I have over the years heard of many C type managers taking the money and running.. ONe in Jackson MS I am aware of took over 200k he did not pay rent for 3 months and skipped.

@Jackie Lange I wrote the exact same article on the Austrialin site only not quite as long and detailed... I agree with what they say about Detroit and other markets that are controlled by wholesalers who are buying to flip to would be cash flow investors. I personally witnessed it in Atlanta.. Houses that I Personally bought on the court house steps for 40k a door in Aug. of 2012 prior to the hedge fund revolution.. Were selling for 50 to 60k in Nov of 2012 and I exited the market.. Hedge funds drove the wholesale prices up 20 to 40% in 2 months.. So yes I think the market in certain areas has been driven by large players... the article quoted also is kind of full of it.. San Francisco did not bubble. Like Vegas and PHX and central cal.. The east bay and Solano county melted down Stockten Merced melted down.. But Not Marin county south threw SF and down to San Martin and Gilroy.. Yes houses in Cupertino went from 1mil down to 900 for a time but they are now at 1.2.. and the bay area folks on this site can attest.. Vegas Phx and Atlanta to name a few saw 70 to 80% loss's in some areas. I know I bought 50 of them in Atlanta before the hedge funds came in.. The 60,000 question is what happens when the hedge funds realize that owning thousands of SFR's is really hard and almost impossible to manage.. Not like owning a dozen 200 unit garden apartments. Will they dump the inventory and take the loss's I see that coming down the road. I see hedge funds as the replacement for banks unloading inventory. Give it time..

The Option model you quote will work when you can find properties for so cheap You could spend years landing one of those deals In Portland way to much completion and way too much real CASH on the West coast for that scheme to work effectively. At least in my opinion