Chat 6-21-04
Posted on June 21, 2004
Welcome to the chat, Ralph Roberts!
[Investment Chat]: Ralph Roberts has entered (7:58 pm)
Roger Dawson: Hi Ralph
[Investment Chat]: Ricardo - NJ has entered (7:58 pm)
Clair-MO: Hi Ralph
Mike Summey: He said, “One of the best books I’ve read on real estate in ten years.”
Ralph Roberts: hi guys
Kim-OH: Hi Ralph
Kim-OH: Hi Roger
Roger Dawson: That’s great! Al Lowry virtually started in info com business back in the 70s and created the real estate investment lecture circuit.
Mike Summey: Roger, I just called Al’s office to see if he would join us tonight, but he is at home and doesn’t have a computer there.
Mike Summey: Clair, I enjoyed talking with you today.
Kim-OH: Mike Al’s smart not having a computer at home lol
[Investment Chat]: Summer has entered (8:02 pm)
Mike Summey: Hi Summer
Kim-OH: Hi Summer
Ralph Roberts: Hi Summer!
Roger Dawson: It’s hard to predict real estate trends. I spent the weekend at my second home in Lake Arrowhead. The entire area has been devasted by a drought. Forest fires also destroyed the community last winter. 10 million fir trees have died from an infestation. Everyone thought real estate prices would nosedive, but they have boomed instead.
Mike Summey: You’re probably right Kim.
Clair-MO: Thank you Mike. I enjoyed your conversation
Ralph Roberts: on the first day of Summer!
[Investment Chat]: MarkinNC has entered (8:02 pm)
Mike Summey: Hi Mark
Clair-MO: Hi Mark
Summer: Anyone here?
Kim-OH: Hi Mark
Roger Dawson:
Clair-MO: Hi Summer
Roger Dawson: Hi Summer
MarkinNC: Hi everybody, glad to be here.
Kim-OH: Summer just you and several of your closest friends in chat lol
Summer: Anyone here?
Kim-OH: Hi Mark
Roger Dawson:
Clair-MO: Hi Summer
Roger Dawson: Hi Summer
MarkinNC: Hi everybody, glad to be here.
Kim-OH: Summer just you and several of your closest friends in chat lol
Mike Summey: I haven’t heard from him today Summer
Kim-OH: Clair ty
Summer: That guy is a bum.
Mike Summey: I talked with him earlier in the week and he said he was going to try to be here.
[Investment Chat]: Alan has entered (8:04 pm)
Mike Summey: Hi Alan
Kim-OH: Hi Alan
Clair-MO: Hi alan
MarkinNC: Didn’t buy anything this week Mike but close on my second rental next week. Working to get it rented this week.
Roger Dawson: Hi Alan
Mike Summey: A bum?
Summer: He charges up front fees for his club and delivers nothing.
Alan: Hi everyone!
Clair-MO: I feel like a “bum” at times Summer!!!
[Investment Chat]: Penny has entered (8:05 pm)
Mike Summey: I’m not familiar with how he runs his club
Clair-MO: Hi Penny
Mike Summey: Hi Penny
Roger Dawson: Hi Penny!
Summer: Clair do you charge upfront fees and then don’t deliver?
Kim-OH: Hi Penny
Summer: He charges up front fees for his club and delivers nothing.
Alan: Hi everyone!
Clair-MO: I feel like a “bum” at times Summer!!!
[Investment Chat]: Penny has entered (8:05 pm)
Mike Summey: I’m not familiar with how he runs his club
Clair-MO: Hi Penny
Mike Summey: Hi Penny
Roger Dawson: Hi Penny!
Summer: Clair do you charge upfront fees and then don’t deliver?
Kim-OH: Hi Penny
Clair-MO: Not at all!
Penny: Hello everyone.
Ricardo - NJ: Hi Penny
Summer: Al does.
Ralph Roberts: hi Penny!
Mike Summey: Summer, I’m planning to visit Al in dallas to try to learn what he does.
Alan: What are we talking about? Mortgage companies?
Summer: Someone should report him to the Attorney General.
[Investment Chat]: justin has entered (8:07 pm)
Kim-OH: Hi Justin
Mike Summey: Maybe Summer can explain it since it seems she has had some experience.
Clair-MO: Doesn’t Al have website in Texas?
Roger Dawson: Hi Justin!
Ricardo - NJ: Hi Justin
Mike Summey: Hi Justin
Summer: Mike - I will be back in 15 minutes to talk about this - I have to take a call.
MarkinNC: Hi Justin
Clair-MO: Hi Justin
justin: hi
Mike Summey: Clair, would you like to discuss the project you are working on?
Alan: Mike, do you know how much the admission fee is for that seminar in Oct?
Clair-MO: Well, I like too Mike but there is no deal!!!
MarkinNC: So here is a question. As I said I am closing on a house next week that does not have a dishwasher in it. Would you put one in?
Mike Summey: Alan, you can check it out at www.learningannex.com
Clair-MO: I called the seller’s number but no one knew anything about 56 Units
Alan: ok
Mike Summey: Mark…NO
Kim-OH: Clair don’t you just hate when that happens
Roger Dawson: Mark, not unless you have a gaping hole in the kitchen counter.
MarkinNC: Why so adamant Mike?
Alan: Not evena cheap one to draw interest?
Alan: Not evena cheap one to draw interest?
Mike Summey: I look at dishwashers and disposals as just something that adds expenses without bringing any extra rent.
Clair-MO: Mark, Why spend any more money than you have too if you are going to rent it out as a rental. Let the renters get the dishwashers!
Clair-MO: Mark, Why spend any more money than you have too if you are going to rent it out as a rental. Let the renters get the dishwashers!
MarkinNC: OK, just asking, thanks.
Roger Dawson: Has anybody heard of any buyer’s markets?
justin: Would you suggest creating an LLC for each of your rent houses?
Clair-MO: I heard tell Ohio is good place, ask Kim?
Mike Summey: Mark, I have a 12 unit complex that had dishwashers and disposals when I bought it. I had 17 calls in one month from the 12 units to send someone to unstick the disposals.
Kim-OH: Roger after the news today one county in my area will likely become more of a buyers market lol
Roger Dawson: What news Kim?
Alan: Personally, I look for apts myself if they had them there in the first place. I disregarded many places because they didn’t have that fdeature., I figure bump up the rent an extra $10 without going over market too much.
Kim-OH: Clair your area is also good isn’t it
Mike Summey: justin, I’m not sure I would create a separate LLC for each property unless the property is a very large one.
Clair-MO: I like Ok, Texas, Kansas, Nebraska and Iowa
Mike Summey: Florida is good also.
justin: So, you can have one LLC for all your rent houses?
Kim-OH: Roger it was just announced that Hamilton County Ohio has had the largest loss of population in the nation
Ricardo - NJ: Mike I’m relocating to FL
Ricardo - NJ: what areas would you recommend
Roger Dawson: Jacksonville is a booming town.
Alan: Outside Jacksonville? Youngest city on the east coast
Mike Summey: justin, Yes, you can have multiple properties in one LLC and if it is a single member LLC you don’t even have to file a tax return for it. The properties are reported on you 1040 form just as if you owned them individually.
Alan: median-age wise
Alan: LLC runs about $700 i think
justin: What is your thought of buying properties that have foundation problems?
Kim-OH: Yikes they cost $125.00 here
Clair-MO: Don’t do it!
Alan: move to another property that doesn’t
Ricardo - NJ: Roger, I was feeling concerned about moving to FL, but not after reading your book
Mike Summey: Alan, it all depends on who you get to set up the LLC. In NC you can actually set one up yourself for a little over $200. The forms are available on the Secretary of State website.
Clair-MO: 60.00 here in MO
Mike Summey: Justin, I’d probably wait until I had my first property under contract and then set up the LLC.
Mike Summey: No need to spend the money until you need to.
Alan: Good point, I guess I had to ask more than Robert Kiyowsaki with that lol
Alan: I have no idea why he regarded that entity so high
[Investment Chat]: zert has entered (8:19 pm)
Mike Summey: Hi zert
Clair-MO: Hi zert
Ralph Roberts: welcome zert
Roger Dawson: Florida is like three different states. The northwesterns live on the Atlantic coast. The MidWesterners live on the gulf coast and the panhandle is like the deep south.
Alan: Love the learning
Kim-OH: Hi zert
zert: Good Evening how is everyone
Mike Summey: Where are you from zert?
justin: If you get a loan under your name can you transfer that to your LLC. Or do you even need to do that?
[Investment Chat]: zert has entered (8:20 pm)
zert: Upstate NY
Kim-OH: wb zert
Alan: I was personally thinking of relocating to Hilton Head, SC but cannot do it without a job waiting and cash to back me up. I guess I am stuck investing in western NY
Mike Summey: justin, if you get a loan under your name, when you transfer the property to the LLC you will still be responsible for the payments, but the LLC can make them.
Alan: Where exactly zert?
Ricardo - NJ: Roger, i remember seeing somewhere that you would be able to finance a property if you can purchase it at 100 times the monthly rent
zert: pc is not cooperating
[Investment Chat]: william_san-jose has entered (8:21 pm)
[Investment Chat]: Doug in CT has entered (8:21 pm)
Mike Summey: Hi William
Mike Summey: Hi Doug
zert: Alan - Rochester
william_san-jose: hello everyone
Doug in CT: Just in from a hot tennis match
Kim-OH: Hi William
Ralph Roberts: Hi William… you in the Silicon Valley San Jose?
Kim-OH: Hi Doug
william_san-jose: yes sir
Mike Summey: zert, is it a Macintosh?
Roger Dawson: Ricardo, the 100 times the monthly rent used to be the formula. With interest rates as low as they are, you can probably pay 125 times and still make cash flow.
Alan: So am I Zert! Where?! I live in Northern Greece
zert: no! I think that I need to reboot to refresh the memory
Ralph Roberts: wow, now THERE is an interesting real estate market
Roger Dawson: Mike hates me using those gross mulitiplier rules of thumb. There’s a lot more to it than that. Figure out the NOI the way we teach in the book.
Mike Summey: I had to make Roger get a PC so things would work for him. He is a big Macintosh fan.
Alan: The interest rate being what in the formula Rog? 10%?
william_san-jose: way to go Roger! im a mac user myself
Doug in CT: Roger are you a tennis player…I remember a reference to keeping your eye on the ball in the book and tapes.
Kim-OH: wb zert
Kim-OH: have some duct tape zert lol
Roger Dawson: Doug, I’m a golfer and a skier. Tennis makes my knees ache.
Alan: zert where in Rochester?
[Investment Chat]: zert has entered (8:24 pm)
[Investment Chat]: Kris (wi) has entered (8:24 pm)
Kim-OH: Hi Kris
Roger Dawson: Hi Kris
Kim-OH: wb zert
Kris (wi): HI Roger
Mike Summey: I don’t like Roger’s use of multipliers because that only references price. Value is what we are looking for and that comes from the combination of price and terms.
Mike Summey: Hi Kris
Alan: i won’t starrt doing that for at least another 30 minutes….lol
[Investment Chat]: bosco has entered (8:25 pm)
zert: I think a hammer might be better !!
Mike Summey: Hi bosco
zert: Alan - Penfield
[Investment Chat]: Clair-MO1 has entered (8:25 pm)
Kim-OH: Hi bosco lol
Kim-OH: bosco where are you located?
Kim-OH: wb Clair
zert: Mike / Roger: what is you take on Property Managers. Theu differ on their services
Clair-MO1: Kim, It happened to me on this site too
Alan: Greece here you know of any Investor groups? TRhe only ones I know of that are close is Buffalo and Batavia {probably closed}
Kim-OH: Clair grrrr, may be your new service provider
zert: do you use the same company for all properties in a close proxiomity or mix it up
[Investment Chat]: bosco has entered (8:26 pm)
Mike Summey: William, from my discussions with Al Lee, we don’t seem to differ a lot in our philosophies as far as believing in a buy and hold strategy.
Kim-OH: wb bosco
bosco: hi kim-OH
Kim-OH: bosco where are you located?
Clair-MO1: Hi bosco
zert: Alan - have heard that a new group is trying to start up in a few months
Roger Dawson: Zert: we’re big believers in finding a good property manager. You’ll get discouraged trying to do it all youself. Keep a close eye on them until you feel sure you can trust them.
Clair-MO1: Bosco, where are you from?
william_san-jose: Mike, thats my opinion too, maybe a little difference in financing
justin: I don’t quiet understand NOI. If you don’t take into consideration the mortgage of the loan, how can that work!!! Is NOI just to tell you that you can move forward with purchasing or not purchasing.
bosco: michigan
bosco: hi Clair
Alan: I need to resell so I can generate base money
Mike Summey: zert, property managers do differ from each other, but what they do for you is what you end up contracting with them to do. They will do as much or as little as you want.
william_san-jose: im currently doing a cash out refi on my SJ home to start the process
Kim-OH: bosco what part of michigan?
Alan: Just, can’t you find preapproved financing?
bosco: why it take so long to see messages
Roger Dawson: NOI assumes a cash purchase. Then you have to make the financing fit so that you still get cash flow.
Doug in CT: Mike, I have a property that I bought about two years ago and it has appreciated from $133,500 to appraising at $154,000 last September. Is it too early to refinance out some equity and use it for more aquistions?
bosco: traverse city
zert: Roder - how about large companies vs. small individuals?
Clair-MO1: Hi alex
Mike Summey: justin, the NOI is what you have to make the mortgage payments with.
Kim-OH: alex?
bosco: hi clair
Kim-OH: tehehe
bosco: lol
bosco: what this site about?
Roger Dawson: Zert, try to find a property manager who is licensed and bonded. I’d worry about using an individual unless they were.
[Investment Chat]: zert has entered (8:29 pm)
Mike Summey: Doug, it probably is. The cost of the refinancing would be too much in relation to the amount of money you could pull out.
Clair-MO1: Mike or Roger can answer your question, bosco?
Ricardo - NJ: Mike, i was trying to make the numbers work and I could not do it with a 15yr mortgage
Doug in CT: So your telling me “Patience, Patience, Patience”
Alan: Zert who would be starting it? It probably could tell us about area Property Managers
Ricardo - NJ: This means that you would have to lower your the price by 20 to 30%
Mike Summey: bosco, this is a site for real estate investors and those who want to get started investing in real estate.
Roger Dawson: We’re real estate investors Bosco. We wrote ‘The Weekend Millionaire.”
bosco: cool
Mike Summey: Ricardo, how old are you?
Alan: My dose of revitalization for the week when I get to talk RE
[Investment Chat]: Kris (wi) has entered (8:31 pm)
Doug in CT: Where do I go to get my next down payment?
Ricardo - NJ: why do I sound very naive
Kim-OH: wb Kris
Ricardo - NJ: I’m 36
[Investment Chat]: bosco has entered (8:32 pm)
Kris (wi): hi clair
bosco: where you from?
Kris (wi): thx kim
Kim-OH: wb bosco lol
Alan: Clair, how old when you started and how long before you were financially free?
Roger Dawson: Kim, what does wb mean? Where Abouts?
Mike Summey: In the book, I mention that I like 15 year financing but I am near 60. At you age you may want to look at 20 year financing. Al Lee believes in 30 year financing. It’s all what you feel comfortable with.
Ricardo - NJ: ok
Kim-OH: Roger no welcome back
Alan: welcome back = wb
Ricardo - NJ: I must have missed that
Clair-MO1: Alan, I was 50 years old and it took me 5 years to become financially independent
Roger Dawson: Thanks. I’m just a low tech guy stuck in a high tech world.
Kim-OH: Mike I think if one is new and needs cash flow a 30 year mortgage can make sense, if you can pay extra but when it gets lean you have some cushion
Summer: William - Al Lee’s club is a ponzi scheme.
Clair-MO1: Alan, I usually tell folks that I am 22 years old with 37 years of experience
Alan: Clair, how did you firsrt get involved and what was your first major step? Did you use a DP with credit cards?
zert: I am getting to make an offer on a property. It does have positive NOI, but I’m not sure if it is first deal jitters or what.
Kris (wi): I’ve been laid off for a year and just started work again. Is it possible to get a Hard money loan
Kris (wi): I’ve been laid off for a year and just started work again. Is it possible to get a Hard money loan
Summer: I joined about 6 months ago, paid 1K and got the run around.
Doug in CT: I need some recommendations on finding a good mortgage broker. Someone who understands the investors point of view. It seems the mortage broker doesn’t need to be in my area so that I could work with anyone in the country. Doesn’t anyone have a name of an honest and reputable mortgage broker?
Mike Summey: zert, anxiety is only natural. Each offer will get easier.
Mike Summey: Kris, you’ll probably have a difficult time until you’ve been employed for a while.
zert: thks for the encourgement
bosco: god Doug
william_san-jose: summer, thanks for the info!
Alan: Y r u moving Zert?
Roger Dawson: Alan, be very careful about credit card debt. There’s nothing wrong with borrowing at 20% if you can make a 21% return, but obiviously that is much, much harder to do.
Kim-OH: Summer, yikes thats expensive, our REIA in Cincinnati has yearly dues of about 250 dollars and we meet twice monthly and have many sub group meetings throughout the month
Kris (wi): Thanks Mike
Clair-MO1: I bought Carleton Sheets’ program and my first real estate transaction was a package deal of 7 homes and I had extrememly bad credit and I bought the 7 homes which were free and clear by using a techniques in Carleton’s course of using the seller’s own credit to refinance for the purchase price and I T.O.P. thru a third party escrow company.
william_san-jose: At this point, im just comparing his book to mikes/rogers
Mike Summey: Summer, have you been offerred any deals?
bosco: Doug have you search for private money investors?
Summer: William - Also, he came up with this scheme called Turnkey Investments.
bosco: Doug have you search for private money investors?
Summer: William - Also, he came up with this scheme called Turnkey Investments.
Alan: Roger, I can’t hope to wonder how painstaking looking for seller financing would be otherwise. Can you explain carrying notes to pay for closing costs and DP please
Summer: He buys discount homes form the builders then charges the members 8-10K more than he paid for them.
zert: what is IT.O.P. ?
Kim-OH: wb bosco
bosco: thanks kim
Roger Dawson: Mike, can you answer Alan’s question?
Kim-OH: yw bosco lol
justin: I have a general question>>. In the back of your book you state you started investing in rent houses at age 34, but you became a millionaire before age 30. how is that.
Kim-OH: duct tape bosco?
Summer: Why is AL buying them cheap - why can’t the members get the same house at the same price??
Doug in CT: My wife and i put and offer in on a bread and butter house last week. To show you how heated the market is here, there were seven offers on this place and though we offerred over the asking price we didn’t have our offer accepted.
Clair-MO1: I don’t like the “turn-Key” technique
bosco: lol
Mike Summey: william, Carleton’s course covers a very wide array of real estate techinques while our book is all about buying to hold long term for the income stream. The difference is sort of like the difference between going to a fine restaurant and ordering a steak cooked just the way you want it compared to going to a cafeteria where you have hundreds of choices.
Summer: Why does this guy have to make a profit AND charge membership fees?
Doug in CT: So Mike, your program is the steak?
Mike Summey: justin, I invested in billboard signs before getting into real estate. The two work very much the same.
Clair-MO1: SummerSimple answer, greed!
Summer: Be careful with Al Lee he is double dipping.
william_san-jose: mike, personally i feel more confortable buying and holding which is why im partial to mike/roger and al lee’s philosophy
justin: So, you started at 34 with rent houses. Then, I do have hope. I’m 32 and taking things slow.
william_san-jose: aparently not al’s club..lol
Mike Summey: Doug, its more narrowly focused.
Kim-OH: Mike I also prefer the long term hold strategy, why look for good deals just to give them up
Alan: How do you know how to apply Carleton techniques at a given time? You need advisors to tell you? Don’t they require fees? I hate to look like I don’t know what I am doing. Learning a task and performing are two different animals
william_san-jose: thanks for the heads up summer!
Alan: At first, to get capital
Clair-MO1: Alan, Carleton’s has a COG chart to show you when and how to use the technique
Summer: William - your welcome! Be careful with this guy - he is a quick talkin Teaxan!
Doug in CT: I haven’t found any hard money lenders at this point. I have heard that if you find a good deal, the money will be available? Any truth to that rummor?
zert: I also tend to like the buy and hold philosophy better myself, although I have talked to people who prefer other options
Mike Summey: Summer, has Al offerred you any properties?
william_san-jose: im currently looking to get started in texas although im living in california..any long distance buying tips?
Clair-MO1: Alan, You learn quicker by asking questions and listen to what is said
Summer: No, nothing.
[Investment Chat]: bosco has entered (8:44 pm)
Kim-OH: wb bosco have some duct tape
Alan: I have it, but still, it requires a precise use. Every property is different. Using a technique now for me is like trying to drive in a nail with a high heel shoe
Clair-MO1: Kim give Bosco your duct tape
Mike Summey: Summer, I’ll ask him about you when I next talk with him. He tells me he has more properties than he can find investors for.
Kim-OH: tehehe bosco, duct tape, I will tape you to the room
Summer: That is BS.
Roger Dawson: William, be cautious about buying out of state. Texas will look like a bargain to you, but real estate sells most of the time for market value. Also, the rules are different. You have personal liablity for loans in Texas, but you don’t in California.
Summer: Mike - the problem I have is paying the upfront fees and getting nothing but a list of partners to call.
Kim-OH: Roger that’s interesting information on the loans
Alan: Roger, you get my query about 5 minutes ago? About making notes?
william_san-jose: roger, i’ve heard that before…but the costs of housing in cal. is insane..whats a newbie to do?
MarkinNC: How is that Roger? You have no personal liablility on loans on CA?
Mike Summey: Somenoe asked about Carleton’s course earlier. It contains many different techniques that range from buying, fixing up and selling to flipping to buy and hold. You have to sort through the material and use the right techniques in the right situations.
Summer: There is another investment group that invests heavily in Dallas/Ft. Worth called ICG. Has anyone heard of them??
Clair-MO1: William, Have you tried Nevada for real estate properties?
Roger Dawson: Mark, because we use trust deeds, the worst that can happen to you is you lose the property. There are virtually no deficit judgments.
william_san-jose: clair, no I haven’t but i’m all ears q
Doug in CT: I have a little niche with an organization that provides housing for mentally disabled individuals. They have their own maintenance department and have been improving the three properties I have with them nicely. The rent is guaranteed by the state. The house has 24 hour supervison. It has been a great situatuion so far (about 2 years).
Kim-OH: Roger is that because CA is such a hot market?
Clair-MO1: Summer, I have a good friend who belongs to that club
Alan: That’s part of the problem; for the first few houses, you need guidance. You can’t fumble through a technique and expect it to work.
Summer: I heard they don’t charge upfront fees. They get paid from the broker rather than the club member.
Roger Dawson: Alan, sorry. Could you restate the question? I didn’t understand it. Mike probably knows the answer.
Summer: Clair - can you give me some info on ICG?
Kim-OH: doug that’s what I want to do, provide housing for folks with disabilities
[Investment Chat]: alex has entered (8:49 pm)
Kim-OH: Hi Alex
Alan: If seller financing is the only route, how do I avoid the expenses such as Closing cost and DP by using Notes?
Mike Summey: Summer, from what I understand about Al, he finds properties and puts them under contract and then flips them to investors. That’s about all I know. He says he does make a commission on the transactions.
Clair-MO1: Summer, Are you located in Dallas area?
Alan: Do a lot of people go for this?
[Investment Chat]: alex has entered (8:50 pm)
MarkinNC: I have a son with disablilities doug, autism to be exact and would very much like to learn about a deal like that any advice on where to look?
Roger Dawson: Alan, the seller pays the expenses and adds it to the note that you owe them.]
alex: hi kim
Mike Summey: Alan, you don’t have most of the closing cost associated with bank financing when you deal with seller financing
Kim-OH: Mark, how is your son doing, I have 14 disabilities myself
Doug in CT: It’s been great. They understand the need for rent increases and hardly ever call the landlord so I don’t need a property manager.
Summer: Mike - that is his Turnkey Program - he is using the purchasing power of his PAID members and getting the discounts for himself then flipping them for a profit (8-10K per home) - there has to be something wrong with that!!!!
Alan: I do this in a two-part scheme. He carries the purchase on terms and then the note on higher terms?
william_san-jose: Clair, have you had good experiences in Nevada?
Doug in CT: Mark in NC– The group I am working with began working with individuals with autism and expanded from there.
MarkinNC: My osn is oding pretty well. He just finished forst grade in a regular class with an aide. I meet so many others who are far worse off.
Alan: If the mort is assumable then I take it over and finance the balance of the purchase?
Clair-MO1: I have several students who have done business in Las Vegas
Summer: Mike - by the way - he if flipping the houses back to his PAYING members!
Kim-OH: Mark good, it sounds like your son is getting the assistance he deserves
william_san-jose: summer, could these properties STILL be a good deal to his members?
Clair-MO1: Summer, That sounds like taking advantage of his members!!!
Mike Summey: Summer, I’m sorry that I don’t know more about Al deals. Maybe he will join us later and you can ask him. As for me, I buy properties from an individual here in NC and I know he makes 5 - 10K on each deal, but so long as the numbers work, I don’t mind that at all. Everyone has to make money for their efforts.
Doug in CT: Instead of being in some institutionalized setting, I have three young men living in my three bedroom home. They have jobs during the day and then learn life skills in the evening with the full time staff.
Kim-OH: Doug yup that’s how it works
Mike Summey: Doug, I have three properties that are like what you describe.
Doug in CT: Mark send me an email and I will tell you more about the organization I am working with. My email is
zert: Doug - how did you start this program?? and what are some of the parameters around the property?
Kim-OH: I am looking for a very specific two family right now for a person with Developmental Disabilities and his full time Aide
Alan: Is anybody going to answer my questions?
Summer: Mike - I understand that, but if someone pays 1K to join the club, why can’t they get the same deal that Al can get?
Mike Summey: A company rents the houses then puts fulltime staff in each one to look after the residents…usually 2-3 per house.
Clair-MO1: Alan, What were your questions?
william_san-jose: roger, any areas in california that aren’t rediculous?
Alan: Scroll up {S}
Mike Summey: Alan, what questions?
Doug in CT: It is not considered a group home if it is less than 3 individuals.
william_san-jose: sorry i have so many questions everyone!
Mike Summey: I guess I missed them.
Summer: Why does Al Lee have to hog these homes for himself then resell them to the paying members??
Alan: About notes, assumables, notes and purchases together, etc
[Investment Chat]: alex has entered (8:56 pm)
Roger Dawson: Most of California is outrageous right now, William. You’ve got to look at blue collar areas outside the major population centers.
Mike Summey: Summer, lets not take up any more time talking about Al. Lets wait until he is in a chat with us and ask him directly.
Kim-OH: alex, will you stay put lol
Ralph Roberts: Guys, I hate to intrude as moderator, but this chat IS about Mike and Roger’s program, not those of other people…. Let’s stay on topic please… thanks.
zert: Summer - can you take your conversation off line, I want to learn about Mike and Rogers program
Doug in CT: So far for me it has been a Win/Win/Win situation. I would recommend searching out organizations that work with severely disabled individuals.
Summer: Zert - I am done talking about Al.
Alan: I know, poor me is trying to get the basics worked out and the bosses are being distracted
zert: thank you
Roger Dawson: William, the California market has to turn when interest rates go up. Then you can buy when there is blood on the streets as Bernard Beruch used to advise.
Summer: Mike - do you buy SFH’s in Dallas/Ft, Worth?
Mike Summey: Alan, I just looked back up the transcript, but I can’t find you question about notes, etc. Can you repeat it.
Alan: Sure….
william_san-jose: blood? i am a San Jose Sharks fan!
Mike Summey: Summer, NO I limit my investments to NC & SC near where I live.
MarkinNC: Doug, your ideas have opened up a whole new avenue for me. I missed you email address though can you repost it.
Clair-MO1: Summer, Why don’t send me an email and I’ll get you in touch with my friend in Dallas. fair enough? cmcmanigal@sbcglobal.net
Alan: With limited options {no capital or credit} how do I pull off a deal with the sekller. He finances the balance of the purchse and I avoid expenses of CC and DP with a higher interest rate on a note?
Ralph Roberts: best comment all night, Doug 
zert: I know that you recommend not falling in love with a property, but what about the opposite where you are not sure about it due to location, existing tenants ets
Alan: Balance meaning I assume the mortgage
Doug in CT: It is OK to fall in love with the NOI?
Penny: I agree Ralph lol
Summer: Clair - I will e-mail you tomorrow.
Clair-MO1: ok
Mike Summey: Alan, even with limited credit, you may be able to get a bank or a third party lender to make a 25-50% loan on the property and then get the seller to finance the balance. This puts some cash into the deal for the seller as well as money for closing costs and a real estate commission. That’s jut one way.
zert: Doug - are you saying that if the NOI works, forget all else?
Doug in CT: Here is my email one more time since I didn’t see it come up:
Mike Summey: Penny, I’m glad to see you’re not dead.
Summer: Mike - Is the DFW market a bad place to buy SFH’s in your opinion?
Alan: I can’t get bank financing. I have to try another route
Doug in CT: No…I think it is a good corrective to falling in love with the property.
Mike Summey: Summer, from what I understand, it is a very good place to buy.
Penny: Absolutley not dead. Right here taking it all in!
Alan: Okay, explain how NOTES work then…i am confused but I heard they work wonders
Summer: Mike - Why do you stay so close to home?
Clair-MO1: Pen and paper in hand, no?
Ricardo - NJ: Clair I think copy and paste works best
Alan: I think i explained them right, but got no confirmation on it
zert: so what else do you evaluate besides NOI, short/long term maintenance and location?
Mike Summey: Alan, there are third party lenders who are willing to take a little risk for more than the 1-2% banks are paying for deposits. If they get a first mortgage for a 25-50% loan they are very secure.
Doug in CT: Tell me more about these “Third Party Lenders”
Roger Dawson: Alan, see if you can get a hold of Robert Allan’s book “Nothing down for the 90s” or something like that. Then you’ll understand how the seller can get their money out and still sell to you on a note.
Clair-MO1: Great idea! Ricardo.
william_san-jose: mike, whats ur opinion on texas personal liability laws when buying from out of state?
Alan: okay
Mike Summey: Doug, do you know anyone who is complaining about the low interest rate they are getting on bank CDs?
Doug in CT: Yeah!
Summer: William - what is that?
Mike Summey: Go talk to them. Offer them 5-6% on their money secured by a first mortgage on real estate. I have done this several times in the past couple of years and now have a couple of million dollars in private money which has freed up by bank credit lines.
Mike Summey: my
Alan: Try any of these ZERT? http://rochester-ny.addresses.com/city/Property+Management/Rochester-New+York-NY-173.html
Mike Summey: william, I don’t have one. I don’t know anything about Texas law.
Doug in CT: Sounds good. I definitely need a couple of million dollars in private money.
Summer: William - can you tell us what that means?
Roger Dawson: RE personal liability. Foreclosing is different using trust deeds (California) and mortgages (Texas). If the lender forecloses on a mortgage and then the foreclosure amount doesn’t pay off the loan they can come after you for a deficit judgment. If you buy right the way we tell you in the book, you’ll never be foreclosed on.
zert: send some my way if you have extra !!
[Investment Chat]: zert has entered (9:10 pm)
Roger Dawson: wb zert
william_san-jose: Thank you roger! i was stuck.
Mike Summey: Doug, there are many elderly people who were living on the interest from their CDs until the rates fell so much. Many of these people are tickled to death to get a higher return and a regular income that is close to what they used to receive.
Clair-MO1: Good night folks
william_san-jose: gnite clair
Mike Summey: Night Clair, thanks for joining us.
Roger Dawson: Good night Clair. Thanks for your input.
Kim-OH: goodnight Clair take care my friend
Ricardo - NJ: Bye Clair
MarkinNC: Good night clair
Summer: Clair - good night.
Penny: goodnight Clair
Doug in CT: fairwell Clair
Ralph Roberts: nite Clair
Mike Summey: Okay guys, he got the message.
[Investment Chat]: Alan has entered (9:12 pm)
Mike Summey: Doug, do you understand what I talking about?
william_san-jose: he’s so loved
Mike Summey: Seems that way
Summer: Mike - as a first time investor, do you recommend SFH’s or small multi unit buildings?
william_san-jose: ok, so far my greatest frustration is finding a good place to invest..i’m cash ready
Doug in CT: Yes. I have heard about a guy named Allen Cogwell in Ohio who is holding luches for prospective investors and has found that many elderly people are interested in these higher rates of return.
Mike Summey: Summer, I recommend SFH to start. They are easier to rent, easier to finance and easier to sell if you have to get out.
Alan: any place is a good place with the right research
Roger Dawson: Summer, I suggest you start with SFR. There’s a lot less you need to know about them. Eventually you’ll want to build a mix. Multi-family shows better cash flow than SFR.
Kim-OH: Mike and Roger thanks so much for this forum, look forward to next week and goodnight all
Summer: Thanks Mike.
Roger Dawson: Bye Kim
Ralph Roberts: good night, Kim
MarkinNC: good night all
Kim-OH: night Ralph ty for moderating lol
Mike Summey: Kim, Roger & I will not be back in the chat until July 12, but everyone else is welcome to talk with each other.
Summer: Mike - I have to go too. Have a good night.
Alan: You guys must have an extra tank on tonight
Kim-OH: Mike sorry to hear that but it’s great to know that you are here for us
Mike Summey: Goodnight Summer
Roger Dawson: Good night everyone!
Ricardo - NJ: Thank you Mike and Roger
Doug in CT: Thanks Mike and Roger for entering the “no spin zone” of the chat room.
Mike Summey: I have to take my airplane to Nashville for annual inspection next week and the following week is July 4th week.
justin: Do you work with the people you meet? or mentor them?
Doug in CT: We are going down to a Ron LeGrand celebration in Orlando for the 4th.
Mike Summey: justin, we don’t do any of that simply because we don’t have the time. That’s why we have these chats, to try to help as much as possible without having to charge you for it.
Mike Summey: Doug, let me know how it is.
Doug in CT: Something about Financial indepence Day.
william_san-jose: *throws mike a highfive
Mike Summey: He is going to be on a program with me in October in NY
Mike Summey: Thanks william
[Investment Chat]: b_ca has entered (9:18 pm)
Alan: You have your own plane? I bet that wasn’y considered when you had the ole 9 to 5, huh?
Mike Summey: I’m going to have to sign off in about 10 minutes also.
Mike Summey: Hi b_ca, where have you been?
b_ca: cool room..hi all
Ricardo - NJ: Good night All
Mike Summey: Alan, you’re right about that.
Doug in CT: Mike–I will let you know how it goes. Should be interesting. I will look forward to our next chat around July 12th.
william_san-jose: mike, roger sorta scared me a little with his “be careful in texas” comment…am i being too sensitive?
Penny: signing off, goodnight everyone. Its been fun watching.
Alan: How old when you started…34? I’m 32
Mike Summey: We’re going to try to invite some other real estate experts to join us in future chats. Carleton Sheets said he would love to have joined us tonight, but he didn’t get back from salt Lake City until 3:00 AM and he was tired.
Mike Summey: Night Penny
Mike Summey: Alan, you a perfect age.
b_ca: do you guys chat at certain times?
Alan: Retire by 45 is my motto…finance free by 37
Mike Summey: Just think, by the time you’re my age you too can have over 25 years experience and enjoy financial independence.
william_san-jose: im 36, so i better hurry up!
Mike Summey: b_ca, yes. If you will register on the website, you will get an email notice when Roger & I will be in the chat.
Doug in CT: I have been going to a boot camp with the “Queen of Rehab” Robyn Thompson who hails from Waterbury, CT. I haven’t been pursuaded to start rehabbing. But I have been persuaded that Donald Trump was right when he said: Donald Trump made $375,000 for each of the 16 episodes of “The Apprentice” — a total of $6 million. Here’s what he had to say about it:”That may sound like a lot of money, but real estate is still better.”
b_ca: howdy nieghbor william
b_ca: thanks mike
Alan: i know…i have fought with expenses for over ten years and I am sick of it. I have had $500 CF for nearly 3 years now and have absolutely nothing to show for it besides the comfortable lower middle class way of living
william_san-jose: hey there b_ca
b_ca: santa cruz here william
b_ca: valley go home..;p
b_ca: lol
william_san-jose: boooo
william_san-jose: lol
b_ca: hahaha
Mike Summey: This chat room is available anytime anyone wants to use it. We have put out notices that investors can log on any day at 8:00 PM Eastern - 5:00 PM Pacific to talk real estate investing with each other.
b_ca: cool mike
Doug in CT: Well I will cash it in for the night–I need some nourishment after that rousing tennis match.
Mike Summey: The email notices go out about the chats that Roger & I participate in.
Alan: Mike before you go, tell me the single best lesson you’ve learned this past year in RE
b_ca: so ..you and roger are RE experts?
Mike Summey: I’m heading to bed also. It’s 9:30 my time and that’s bed time.
Doug in CT: The weekend millionaire chat session definitely comes before food.
Mike Summey: Alan, the single best lesson I’ve ever learned is to be patient. Wait for the right deals to come along and then act quickly when they do.
[Investment Chat]: zert has entered (9:27 pm)
Doug in CT: Good Bye!
Ralph Roberts: They are b_ca, they wrote the book this site is named after.
Alan: so it’s the same as year 1?
b_ca: ok.thanks Ralph
Mike Summey: Alan, it never changes.
zert: for what it’s worth, I’m back
Alan: you and clair are pretty abstract
Ralph Roberts: we seem to be winding down…. I’m taking off… chat transcript will be posted in mere seconds… nite all!
william_san-jose: wb zert, we were just asking where u were
Mike Summey: Alan, I’ve seen impaitence ruin more real estate investing careers that all other problems combined.
zert: pc bombed out again, I guess the duct tape didn’t hold
Mike Summey: On that note, I’m going to sign off as well. Goodnight all! See you July 12th.
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