All Forum Posts by: Jay Hinrichs
Jay Hinrichs has started 331 posts and replied 42145 times.
Post: Exploring Luxury Real Estate & Investment Opportunities in Belize
#1 All Forums ContributorPosted - Real Estate Consultant
- Summerlin, NV
- Posts 43,931
- Votes 64,925
Quote from @Edwin Varela:
Quote from @Jay Hinrichs:
client of mine is building out a small resort on one of the islands.
I went down and checked it out.. boy you have to watch out for the speed bumps on the highway LOL.. Not my cup of tea but I am sure its great for many..
😂 That's so true. Even we get annoyed of them sometimes. Hey but, it doesn't take away from all the beautiful scenery along the way.
I'm glad to hear you have a client out here in our small country. Always happy to have investors coming in.
I am just glad I was driving during the day first time there and had it been at night I am sure I would have either blown a tire or wrecked hitting a speed bump at 60 or 70 there are nice new highways..
Post: Do any agents out there text or email?
#1 All Forums ContributorPosted - Real Estate Consultant
- Summerlin, NV
- Posts 43,931
- Votes 64,925
Quote from @Seth McGathey:
Personally, as an agent, I prefer text and email when possible. If we do a call, I need to make notes to make sure I don't forget anything. If we do it via text or email, the messages are my notes. So it probably all depends on the agent.
I dont sell RE anymore but for me I want to talk to some one I HATE text messages.. in personal its like a summons out of the blue no context etc etc.. I particularly dislike the agents that on their VM on their phone say for faster service text me. I went round and round with my wife on this one and finally got her to answer the friggen phone.. And lo and behold she actually admitted she was able to get more buyers excited out our subidivsion we were building out then just letting them go and then call the next developer or Lennar or Horton or whoever..Myself I always answer and if I dont have time I just answer with Hey I am on the other line or busy at the moment just wanted to answer to tell you I will call you back in X.. that keeps folks in the game and I think works really well.. again my personal style.. So call for me its call or e mail Do NOT TEXT me I wont return a text LOL I know its the minority but thats how i work it. If I allowed all my subs all contacts to text me all day long all I would be doing is staring at my phone with two thumbs trying to return text messages..
As a larger than average owner of out of area RE with Zero debt Like 100 to 150 props you can imagine how many wholesaler text or calls I get a day.. its insane.. but even the wholesalers I will answer and then tell them no I only transact with licensed agents.
Post: Do any agents out there text or email?
#1 All Forums ContributorPosted - Real Estate Consultant
- Summerlin, NV
- Posts 43,931
- Votes 64,925
Quote from @Jake Handler:
Often the listing agent is not the person receiving the inquiry if you are inquiring through a site like Zillow. Agents pay for that click as a lead source.
Now I realize that totally does not answer your question and may actually be more confusing as to why you don't get a response, but it is an important distinction nonetheless.
yup hate the way zillow doese that.. half the time the agent who is on there has no clue about the property.. waste of time using zillow .. if I was an active broker i would never pay for zillow leads personally. I know my wife wont.
Post: Are Promissory Note Funds the Missing Piece in Your Passive Investment Strategy?
#1 All Forums ContributorPosted - Real Estate Consultant
- Summerlin, NV
- Posts 43,931
- Votes 64,925
I agree on FIRST position note funds.. but second position and while safer the way your describing it and better than being a LP.. but the results or reasons for the loan are a property in trouble. Other wise you would not be bringing in pref debt to dilute the original investors.
Just my take on it for the What its worth file.. @chrisseveney has a note fund but I believe they are generally all FIRST positions however many I do believe are work outs as well as new origination.. be neat to compare the two funds his and the one your representing.
Post: Exploring Luxury Real Estate & Investment Opportunities in Belize
#1 All Forums ContributorPosted - Real Estate Consultant
- Summerlin, NV
- Posts 43,931
- Votes 64,925
client of mine is building out a small resort on one of the islands.
I went down and checked it out.. boy you have to watch out for the speed bumps on the highway LOL.. Not my cup of tea but I am sure its great for many..
Post: SubTo Is At It Again - Ooops Bein Sued - Wholesalers Next - Be Careful Follow The Law
#1 All Forums ContributorPosted - Real Estate Consultant
- Summerlin, NV
- Posts 43,931
- Votes 64,925
Quote from @Ken M.:
Quote from @Jay Hinrichs:
this is more of a foreclosure rescue scam than a sub to issue ..
Yeah, but SubTo gets more clicks. Just Kidding.
When you read the entire 129 pages, the Subject To comes to light. Lawyers don't commonly call it "Sub To".
It's a variety of foreclosure, subject to, probate, bankruptcy, recorded "memorandums" real estate license revocations, consumer fraud, senior fraud, notary abuse, false filings, deceptive practices. I haven't had time to read it all yet. Somebody didn't get properly trained. :-)
they are crooks and this is he danger of sub to .. no qualifying very little to no money down and you end up with a bunch of sleaze bag crooks doing the things describe this is why sellers are total and absolute fools to ever sell sub to.
Post: SubTo Is At It Again - Ooops Bein Sued - Wholesalers Next - Be Careful Follow The Law
#1 All Forums ContributorPosted - Real Estate Consultant
- Summerlin, NV
- Posts 43,931
- Votes 64,925
this is more of a foreclosure rescue scam than a sub to issue ..
Post: Property Market in Jackson , MS
#1 All Forums ContributorPosted - Real Estate Consultant
- Summerlin, NV
- Posts 43,931
- Votes 64,925
Quote from @Sachin Amin:
one of my units is vacant for 6 months now. challenging to find decent PM - and when i try selling it the offers i get are 30k , i purchased it for 90k.
let me guess south Jackson ? this story has been the same for the 25 years I have been working there.. very tough to do this without living there and self managing. the nicer areas like Madison county Rankin by the resivour etc work fine but they dont cash flow need like half down to just break even. U might try owner financing thats how I got out of mine.. I offered ZERO % interest And even at that we took loss's on our all in cost and what we coould get out of them I suspect your getting trolled heavily by wholesalers
Post: Seems to me Biggerpockets Dealfinder is useless
#1 All Forums ContributorPosted - Real Estate Consultant
- Summerlin, NV
- Posts 43,931
- Votes 64,925
Quote from @Jonathan Warner:
Quote from @Jay Hinrichs:
Quote from @Jonathan Warner:
Quote from @Jay Hinrichs:
Quote from @Jonathan Warner:
Quote from @Jay Hinrichs:
Quote from @Nicholas L.:
i haven't looked at the Dealfinder, so I am not familiar with it and can't comment on it.
but, it sounds like you're not missing anything. most deals right now will not cash flow, and new investors tend not to be conservative enough.
in general, only the higher risk / more creative niches are going to cash flow right now. vanilla LTRs don't. now, to be clear, that doesn't mean they're not a good long term investment. they are- there are other benefits to RE than just cash flow.
i'm under contract right now on a property i plan to BRRRR, and... it's not going to cash flow when i'm done, it's going to break even. but that's just fine with me.
I think for today's market one has to define IT WONT CASH FLOW .. what does that mean?
IE no positive cash flow with MINIMUM down maximum leverage.. Is that why ?
Most everything cash flows when you pay CASH.. So think you have to start there and work backwards.. If the goal is to have NET NET NET operating income on a rental. One needs to work the numbers back from paying cash to how much down will create the amount of NET NET NET one is trying to achieve. Now I get it in markets that have very slow to meager appreciation there is little reason to buy rentals if you cant get some cash flow with high leverage but in other markets cash flow really is not the main concern the main concern is just getting in the game and how much can you afford to feed it with the capital you have to put down.
Personally I think it is about 30 seconds to underwrite SFR.. take gross rents use 50% for operating expenses then deduct mortgage payments and see where you land.. if its close look at it harder if you miss by a mile then move to the next. Going to have to look at a lot of deals on deal finder to find anything that works same with wholesalers MLS etc etc.
Bottom line is investors from 2010 till the rates jumped a few years ago were spoilt rotten with being able to cash flow with Max Leverage that is not how it was before the GFC and it is not returning anytime soon.. at least IMHO your mileage may vary. So bottom line today you may need 30 to 40% cash down to cash flow positive as that is the reality of the market and the mortgage market.
I'm more referring to the irresponsibility of the DealFinder calling a deal "cashflowing" when it doesn't factor for property taxes, CapEx, or maintenance. But, do you think it's unresonable to search for a (not heavily) cashflowing deal now with a 20% down payment? What if I was in no burning hurry and had the time and financial security to wait for a great deal? Searching off market, with an agent etc. I really only need a little cashflow for securuity and padding.
well were is the deal finder ? I dont think I have looked at it just classified.. I would never use any kind of calculator for sfr .. that to me is simply napkin math.. since NO rental ever follows a spread sheet .. something is always going to cause the spreadsheet to be inaccurate over time.
What's your napkin math? To me (a newbie) it just seems kind of scary to based such a large financial decision on a napkin xD Not saying big things can't be done on napkins, I'm pretty sure Lincoln wrote the Gettysburg Adress on one.
Search for "biggerpockets deal finder" It's a free tool that scours on market deals. It's a great concept but I just see big line items missing from the analyses.
I explained napkin math above.. but to me its very simple for a vanilla SFR rental.
GROSS rent divided by 2 = gross cash flow - mortgage payment = cash flow + or - simple as that .. If you do better great and if on the napkin it is really negative then probably a pass. But if it works then next step.. 50% over time is usually about right many try to use 30 to 40% but find them selves in trouble when as @Nicholas L.pointed out when you have a bad tenant turn over or a cap ex early on in the ownership.. like HVAC Roof foundtation etc etc.
And what exactly do you mean by this part?:
"50% over time is usually about right many try to use 30 to 40% but find them selves in trouble when as @Nicholas L.pointed out when you have a bad tenant turn over or a cap ex early on in the ownership.. like HVAC Roof foundtation etc etc." What is the percentage referring to?
Appreciate the responses.
sorry fast typing MANY will use 30 to 40% for expenses .. but that is hope not reality based on most who have experience.. I have owned 100s of SFRs Sold them all.. so that is my experience.
at least in the low B C asset class with 60 year old homes etc.. New builds or Properties in say Vegas with super low prop tax's and desert environment will be less.. but mid west upper mid west with snow grass that grows like crazy old housing stock.. cost are more.
I personally have zero interest in rentals at this stage of my career.. I prefer to rent my cash out to others to help them build their portfolios.. We do have some small commercial and solid B class MF west coast which performs.. but even those we run numbers at 40 to 42%
Post: Seems to me Biggerpockets Dealfinder is useless
#1 All Forums ContributorPosted - Real Estate Consultant
- Summerlin, NV
- Posts 43,931
- Votes 64,925
Quote from @Jonathan Warner:
Quote from @Jay Hinrichs:
Quote from @Jonathan Warner:
Quote from @Jay Hinrichs:
Quote from @Nicholas L.:
i haven't looked at the Dealfinder, so I am not familiar with it and can't comment on it.
but, it sounds like you're not missing anything. most deals right now will not cash flow, and new investors tend not to be conservative enough.
in general, only the higher risk / more creative niches are going to cash flow right now. vanilla LTRs don't. now, to be clear, that doesn't mean they're not a good long term investment. they are- there are other benefits to RE than just cash flow.
i'm under contract right now on a property i plan to BRRRR, and... it's not going to cash flow when i'm done, it's going to break even. but that's just fine with me.
I think for today's market one has to define IT WONT CASH FLOW .. what does that mean?
IE no positive cash flow with MINIMUM down maximum leverage.. Is that why ?
Most everything cash flows when you pay CASH.. So think you have to start there and work backwards.. If the goal is to have NET NET NET operating income on a rental. One needs to work the numbers back from paying cash to how much down will create the amount of NET NET NET one is trying to achieve. Now I get it in markets that have very slow to meager appreciation there is little reason to buy rentals if you cant get some cash flow with high leverage but in other markets cash flow really is not the main concern the main concern is just getting in the game and how much can you afford to feed it with the capital you have to put down.
Personally I think it is about 30 seconds to underwrite SFR.. take gross rents use 50% for operating expenses then deduct mortgage payments and see where you land.. if its close look at it harder if you miss by a mile then move to the next. Going to have to look at a lot of deals on deal finder to find anything that works same with wholesalers MLS etc etc.
Bottom line is investors from 2010 till the rates jumped a few years ago were spoilt rotten with being able to cash flow with Max Leverage that is not how it was before the GFC and it is not returning anytime soon.. at least IMHO your mileage may vary. So bottom line today you may need 30 to 40% cash down to cash flow positive as that is the reality of the market and the mortgage market.
I'm more referring to the irresponsibility of the DealFinder calling a deal "cashflowing" when it doesn't factor for property taxes, CapEx, or maintenance. But, do you think it's unresonable to search for a (not heavily) cashflowing deal now with a 20% down payment? What if I was in no burning hurry and had the time and financial security to wait for a great deal? Searching off market, with an agent etc. I really only need a little cashflow for securuity and padding.
well were is the deal finder ? I dont think I have looked at it just classified.. I would never use any kind of calculator for sfr .. that to me is simply napkin math.. since NO rental ever follows a spread sheet .. something is always going to cause the spreadsheet to be inaccurate over time.
What's your napkin math? To me (a newbie) it just seems kind of scary to based such a large financial decision on a napkin xD Not saying big things can't be done on napkins, I'm pretty sure Lincoln wrote the Gettysburg Adress on one.
Search for "biggerpockets deal finder" It's a free tool that scours on market deals. It's a great concept but I just see big line items missing from the analyses.
I explained napkin math above.. but to me its very simple for a vanilla SFR rental.
GROSS rent divided by 2 = gross cash flow - mortgage payment = cash flow + or - simple as that .. If you do better great and if on the napkin it is really negative then probably a pass. But if it works then next step.. 50% over time is usually about right many try to use 30 to 40% but find them selves in trouble when as @Nicholas L.pointed out when you have a bad tenant turn over or a cap ex early on in the ownership.. like HVAC Roof foundtation etc etc.