All Forum Posts by: Jay Hinrichs

@Joel Owens

cinder block walls and industrial lino works have seen it many times. for me only provide a stove... period. but I do like the prison concept.. seems like we are the wardens.

cage the condenser..When I was buying and rehabbing I always put in a new sewer line to the street if it was 20 or more years old could get it done for 1 to 12oo before its an emergency and its one of the biggest maintenance items.

And then the obvious I never put carpet in C properties.. most have hard would floors Paint them dark colors. let them use throw rugs. etc etc.

bottom line is these homes are lived in roughly

I sold 1 of my OREO's to a naca buyer.. And then tried to work with Naca on others.. they do get deals done but as the post say its long frustrating process they are.. for me as the seller I was able to pay down the buyers interest rate to 1.5% so no money down.. As a seller Naca is contantly looking for sellers that will contribure to rate buy downs and closing cost.. I was all to happy to contribute to move one of my 200 OREO's and get basically full retail for it. But try as I might it was the only one I could ever get to go through the buyers just get frustrated and stop trying. And or the buyers just really can't get their personal stuff together and keep it together for a year that it takes.. But if you get one and have a seller contribute your getting a smoking deal. When I was at the closing I think the buyers payment was under 200 a month for a house that would rent for 800... his insurance was more than the mortgage.. B/C of past bad credit of course..

If Naca could ever get its act together they would be a game changer.. B Of A was the underlying lender and I think they probably use these for the CRI minimums.

Many other caveots with these. But I can tell when I first heard about it I thought dang I can sell all my reo's in a year or so and get made whole well not to be.

JLH

@J. Martin

When you get off the 101 going into the casino if you go right by the Home depot you will come to a light were you make a left to go into the parking lot.. that's La bath, my parcel is just to the right of that. I have not been in the casino yet but it looks nice.

there are still rural areas of the US were you can just post and short plat. Maybe that's were one gains a little experience.. It takes years and really decades to learn the development bizz. And VERY VERY deep pockets .

In CA we used to use Mello Roos and 15 act bonds to build the infrastructure so the developer could leverage those costs.. many of these facilities tanked in the early 90S though... In Oregon we cannot use public bond money to build infrastructure for a private development. It has to be cash form bank or internal cash.

there are still rural areas of the US were you can just post and short plat. Maybe that's were one gains a little experience.. It takes years and really decades to learn the development bizz. And VERY VERY deep pockets .

In CA we used to use Mello Roos and 15 act bonds to build the infrastructure so the developer could leverage those costs.. many of these facilities tanked in the early 90S though... In Oregon we cannot use public bond money to build infrastructure for a private development. It has to be cash form bank or internal cash.

@Karen Margrave

A ha I did it got to high light who I was responding to..

CA is really really tough even when your general plan approved. YOu still can have the EIR process which is a bear.. Vernal ponds.. toad and lizards. Indian bones, and all sorts of other little weird things most people would never think of .. And each county is different. And SO CAL is much different than N cal. And the 9 bay area counties including Monterrey are next to impossible you really need deep pockets and patients to play in those.. I did site acquisition for SFR projects from 1980 to 1991 with a medium sized syndicator ( that's what they were called before they were TIC's and before they were PPM and before they were Members of LLC's :) .. Many projects took 3 to 5 years or more. I personally own one property that I bought in 1994 in Sonoma county ( Rohnert Park) its just now coming into the city. ( they built the largest Indian Casino in CA or at least N. CA) right across the street.. I have 4 acres.. And of course like any capitalist I listed it for 3 million a few weeks ago. I paid 25k for it as an unbuildable parcel all those years ago.. But it sat behind a Home depot right off of the 101 so I thought maybe one day.. And I got brought into the city by just one lot.. So just dumb luck really.. A developer across the st. is master planning 50 acres and they brought ours in to their sphere so they are footing the bill. Looks like we are going to come in as mixed use REsi... I want to build about 35 homes there.. Hoping I can do this in 2016 and hoping the market holds.

Can't make a profit without selling..

I remember talking with Bruce Norris and he sold all his California holdings in 06 and did really well he then invested in Texas ( and did not do so well) but he did not get melted down like many others.

Once a profit is achieved its good to take profit and then look for the next deal. Plus I really wanted out of the rental bizz,, at 350 homes its a bunch of work and it was mainly b and c we did everything we could to keep it cash flow neutral to a little positive. So we got an offer from a hedge fund for our houses in Atlanta.. And my partner bought me out of the rest of them... He continues to grow the brand, I am concentrating on loaning money.. and doing 5 year non recourse as well as my construction bizz in Oregon. I am down to 11 rentals and continue to liquidate.. Better easier money in the Paper bizz in my mind.. That is if you can break into it. There is no leverage to speak of in the paper bizz.. But hey you get the right contact at from an asset manager and tie up a tape good things can happen..

to correct my last post... WE provide lending opportunites to our IRA clients at the rate of 15 to 25 deals a month.. Our clients will sometime's buy the asset but we have little call for it.. Our clients prefer being the bank.. As its much easier in the long run you give up appreciation but a well structured note deal also mitigates down side and the trivails of owning a rental.

Our company has set up about 2500 solo 401 k s and other IRA vehicles. YOu can buy real estate in your self directed accounts

We do it for clients 15 to 25 times a month....

@Jeff Clawson

thanks for walking me through that would have never figured that out but then I never read directions.