All Forum Posts by: Jay Hinrichs

OP.  All of the issues stated don’t matter.  

1.  Real estate is local.

2.  2 topics throughout this thread which are different.   RE investing and affordable housing.  

3.  You want aberrations to make more money.  The fact the market is high here, low there, interest rates, availability, etc.  The more aberrations greater chance for profit.  Change your RE formula.

4.   There is tons of affordable housing.  Even in the major cities. People “are” living  somewhere, no matter their income level.  They are not in situations most BP investors imagine but they have housing.  My friend Jose.  5 siblings 20 to 25, one baby, mother 50 living in 1,200 sqft.  Father died when he was 2.  

5. We BP are trained to use OPM but there is a cash market that is active.  Our first two subdivision lot sales are to people who have debt free homes who are building.  One wants to live in the country on a larger lot, the other is retiring and moving back to the area.  We only need 1/10 of 1% of the market to make our deal work.  One of our neighbors, Hispanic, just does cash, even buying their home.  Two different ends of the wealth distribution. 

6.  Generational differences?  Give me a young person, any social or economic background and I can help them be a millionaire by 40.  And then once they learn the game their snowball grows faster and faster.  

7.  Any one want an existing $1mm house or condo for $250,000?  I can get you 300,000 of them.  Again RE is local.  

8.  Including land, utility hookup, road access.   Can build a 2,000 sqft home for $100,000. Rent in this area would be around $1,500 for that home.  About 40 lots available, so not a one off. 

 
9. Concentration of wealth? May 1982 I had $300 and a truck I bought for $100. The concepts of wealthy and poor are personal decisions. That was actually the same year I made the greatest financial mistake of my life. I should have dropped out of college and gotten an IRA. $2,000 contribution per year compounding at 20% fixed for the rest of my life. I did "see" it, but didn't take action.

RE is local from an investors standpoint. 

There is no affordable housing issue.  People are living somewhere.

My neighbors son 20, 2 years out of high school just bought a house.  With his money and financing. 


It's out there. You might just need to tweak your REI model.

Fine.

clayton and his wife have a long running podcast they have interesting takes on stuff.

@Chris Seveney My thoughts exactly. Tax treatment has such a significant impact. I was surprised they couldn't provide an explanation of why this fund would generate LTCG treatment despite asserting it would. Perhaps they thought the investors listening in would be so mesmerized by the excel slide showing the potential of a 5.8X multiple in a 3-5 year hold and 80%+ IRR they wouldn't sweat the small details :)

 @Chris Seveney I was working at RADD when two of the bigger events occurred.  I believe the initial IWS that Grant Cardone spoke at a very high price tag.  At the second event, Tucker Carlson, Buck Sexton, and Lisa Boothe spoke.  I don't believe any of these speakers were paid to attend to necessarily promote RADD or Dutch, but more to bring in an audience that would pay just to listen to them speak.  I oversaw security for both events and didnt really listen to what they actually spoke about, but I do remember Tucker stating that he wasn't even sure why he was paid to be there.  @Joseph M. you are correct, they were paid thousands, an unbelievable amount.  I feel that that the mythology was to get these speakers to fill the seats and then Dutch and Team would attempt to bring them into investing with RADD and other opportunities.  Also, you are correct reference the book sales.  Most all publishers will do this for books. The initial fee involves a large initial purchase on platforms like Amazon etc.  They will spike the sale the day of release and as long as it hits #1 for only one day, it still is advertised as a "#1 Best Seller", this process is not isolated to Dutch's book or the Money Shackles process. 

Looking forward to having you, Jay!

Why would a rental ever be paid off? You are not using leverage to your advantage and that is the biggest benefit to investing in real estate.

Thanks for the inputs, I guess we are all on the same page.

the lawyer input was in regards to potential lawsuits once the property is paid off

the properties will be paid off by the tenants,

I will probably use the paid off rentals as a bank, cash out and reinvest, and have tenants pay down the loan again.  While I buy more real estate, equities, and relax on vacations.

Rinse and repeat and pass to on to family