All Forum Posts by: Jay Hinrichs

@Ed L.

Do you know Chris Strebeck at Community bank there in Hattiesburg.. I had a commercial loan with them at one time, real good guy. I bet I was their only client from Oregon LOL....

@Account Closed

How much is the lot.. that's what you need to know and how much are the permits all in.. building cost depending on what your doing I would suspect will be in the 100 to 130 bucks a foot range flat lot standard foundation.. What I do on mine is splurge and put in Quartz or Slab granite in the kitchen and master bath.. Building from ground up in a lot of ways is more organized and predictable than a big RENO where you don't know whats behind that 80 year old wall or what the last owner did to the plumbing and electrical. YOu can nail down your budget pretty well before you start and have a good Idea were your going to be at financially.

I am very interested to hear the response's on this one Regarding the Safe act and owner contracts for Owner Occ homes.. As opposed to owner contracts for Non owner occ. I did a bunch of them pre Dodd Frank on my OREO.. in the C class area they are totally hit and miss with many more misses than hits. But they did serve a purpose.. I took a house that I did not want to dump a bunch of money in and let someone in for next to nothing with the hopes they would at least fix it up.. At the very least fix the AC and Exchanger put a water heater in it new power metor and pole and gas hook up.. But in the C areas that was about the extent of their ability.. I still have a few that I collect a payment once a year when they get their tax return. AND oh they pay the property tax.. which was huge because we had 200 or so of these buggers . But when I visit them once a year they still are living in the house half the time with no heat excetra. they own it I deeded it too them.. So I don't have landlord tenant issues. So we just kind of dance around.. I don't want the place back. and If I can get 3 or 4k a year out of it I am good with that.

'"Alex welcome.. I have been doing bizz with AU investor for about 4 years now. I am always astounded at the amount of very young people that are keen to get into real estate and have saved up cash to buy it at such young ages.

Do you ever frequent the propertyinvestingforum.com in AU.. ? not nearly as active on the US stuff. It used to be but it has about died.. Lots of US spuiekers and Aussie spruiekers on there so one has to be careful. Same here, US is not AU when it comes to investing and getting told the straight story your job will be to find the right people.

randy, welcome I too am from Portland and have been on BP one week. I see Stuart Fox chimed in.. Between Stuart and I we have done a few deals here in PDX.. Stuart was one of the largest FCL. buyers in our market and of course I have bought my share.. You will find it amazing to look at cash flow deals all across the country.. Although many folks on this site would think we are crazy to buy Cash flow rentals in PDX.. I just sent a few MLS listings over to one of my wifes clients.. Cap rates are 4 to 6%... A lot of the guys and gals on this site won't look at a rental if it is not 15 to 20% or much higher. But here in PDX we have the second strongest rental market in the entire US only behind San Jose CA. occupancy is 98% or better.. Tenant pool that basically will not trash your home as long as you keep tweakers out of it. And not much section 8 to speak of. Good luck on your hunt.. I know Anita and Courtney very well at the Beaverton RIA I have loaned money to them in the past for deals here in Oregon.

@Tony H.

for 2014 you can buy a cash flow rental in the mid west and make 10% if your lucky :) personally I think value add is a nice space to be in whether its rehab and or ground up.. We are killing it in the North west with new construction.

and I would not have said that pre 08 but with all the builders and subs going under in 08 and 09 there is some really good talent that can be brought on to manage these [projects for those that are not that savvy.. The barrier in these is usually capital especially west coast.. So if you have access to a good amount of capital and search your markets and if you can leverage.. you can achieve 35% cash on cash fairly easily and actually do much better. We are do much better here in Oregon than 35% cash on cash.. BUT you have to have access to quiet money or bank loans... there is hard money for this but your returns will go down to 20% or so if you borrow at too high a rate.

I bet you can do this in CA pretty easy to doing infill in the more popular towns. and metro areas.

@Account Closed

being from the Northwest I had never experienced soil conditions like you have in the south.. But I got a baptism by fire that's for sure.. When it rains there the streets just fall apart.. when I moved there to handle my 08 09 collateral melt down I had my porshce shipped down from Portland.. The roads were so poor and rough I sold it before I came back.. Some of those roads will have humps in them 1 to 2 feet out of plumb.. Its crazy really.. From what a soil engineer told me a 100 % dry piece of Yazoo Clay 1 inch square can expand to 12 inch's square when water is added.. You can drive around Jackson and see houses that are cracked in half like humpty dumpty eggs... And of course when that happened and the investor did not have the funs to fix it.. they walked and I ended up with a jem of a foreclosure. OH well that's all behind us now....

Joe may be alluding to the city red tagging the home as not habitable.

I have had this issue on a bunch of my OREO in Jackson MS.. there is Yazoo clay.. and its incredibly destructive... not only cracks in the walls the doors won't close, as you mention pipes break sewer lines break its a major problem. You need to chase down the company that gave the warranty.

JLH

@Jerry K.

I had bought many a tax sale in California and its a tax sale state. So I decided to try tax certs.. No way to really know what your buying the pro's were there with their lap tops the crier obsioulsy favored them.. I think I spent 5k then stopped I don't think I ever saw any redemtions and just forgot about it to about right now.. Another 5k lesson.. Like any of the tax forclsoures schemes there are the pro's then there are the rest of us trying to learn and learning ususally costs money

Joe may be alluding to the city red tagging the home as not habitable.

I have had this issue on a bunch of my OREO in Jackson MS.. there is Yazoo clay.. and its incredibly destructive... not only cracks in the walls the doors won't close, as you mention pipes break sewer lines break its a major problem. You need to chase down the company that gave the warranty.

JLH

@Account Closed

Thank you David I was pretty sure of that but I have been up here in the Oregon rain for 10 years and I keep my CA brokers license current and that is what I thought but with all this safe act stuff and the state of Oregon taking the hard line its best to double check.. appreciate it.