Chat 7-12-04 with Al Lowry, special guest!
Posted on July 12, 2004
Welcome to the chat, Ralph Roberts!
[Investment Chat]: Ralph Roberts has entered (7:56 pm)
Ralph Roberts: hi, Mike
Mike Summey: Hi Ralph
Mike Summey: Al Lowry was just on but signed off
Mike Summey: I guess he didn’t see anyone and left till later.
Ralph Roberts: yep
Mike Summey: I got the Offer Generator program to run.
Mike Summey: It shows a lot of promise.
Ralph Roberts: good
[Investment Chat]: ALowryRBrooks has entered (7:57 pm)
Mike Summey: You need to download the latest version of Java to get it to run
Ralph Roberts: Welcome Al
Mike Summey: Hi Al
Ralph Roberts: 1.4?
ALowryRBrooks: Hi Guys
Mike Summey: Are you with Reggie?
ALowryRBrooks: No, Here alone
Mike Summey: Is Reggie going to join us?
[Investment Chat]: Roger Dawson has entered (7:58 pm)
Ralph Roberts: Roger! hi
Mike Summey: He called but I never could reach him on the return
Mike Summey: Hi Rog
ALowryRBrooks: No He will not be able to make it, he is in LA
[Investment Chat]: Jim’N'Con_NC has entered (7:59 pm)
[Investment Chat]: Rick has entered (7:59 pm)
Mike Summey: Al why don’t you go out of the chat and come back as just Al Lowry so people won’t be confused
Mike Summey: Hi jim
Jim’N'Con_NC: Hello everybody
Mike Summey: Hi Rick
Roger Dawson: Hi Jim and Rick
ALowryRBrooks: Ok no problem
Ralph Roberts: welcome guys
Rick: Hello Mike and Roger
[Investment Chat]: Albert Lowry has entered (8:00 pm)
Mike Summey: Welcome back Al
Mike Summey: Now we know who is there.
Roger Dawson: Welcome Al! I have fond memories of being a speaker on the Al Lowry Superstar Tour twenty years ago.
Jim’N'Con_NC: Hi Ralph… thanks again for your work in setting this up and also the trasncripts.
Albert Lowry: Thanks Roger, remember you well from LA
Jim’N'Con_NC: transripts*
Mike Summey: Any questions to get us started?
Ralph Roberts: Glad to do it.
Jim’N'Con_NC: Albert… welcome to the chat. Please offer us some insight on your thoughts about the real estate market now and where you think it is headed
[Investment Chat]: Farris has entered (8:03 pm)
Mike Summey: Hi Farris
Mike Summey: Welcome to the chat
Albert Lowry: Real Estate market is lovely and will continue for the next few months
Roger Dawson: Hi Farris
Farris: Hello
[Investment Chat]: Mickey has entered (8:04 pm)
Mike Summey: I think we are in a situation now where the extremely low interest rates have pushed prices up, but I’ve been through the cycles before.
Ralph Roberts: welcome, Mickey
Mike Summey: Hi Mickey
Jim’N'Con_NC: Albert, do you see any significant changes in how real estate may go? (ie, rising rates; retiring baby-boomers; etc)
Mickey: Hello
[Investment Chat]: Penny has entered (8:05 pm)
Mike Summey: Hi Penny
Penny: Hello Mike!
Roger Dawson: It’s curious that although the treasury interest rate went up, mortgage rates have gone down again in the last two weeks.
Ralph Roberts: Hi Penny!!!!
[Investment Chat]: Doug in CT has entered (8:06 pm)
Mike Summey: I noticed that today. there was an article about it in our local paper.
Mike Summey: Hi Doug
Penny: Hi Ralph, how are you?
Ralph Roberts: Great.
Albert Lowry: Interest rate will increase slowly over the next year, condominium market is excellent to invest in at this time and receivng appreciation and higher in most markets then single family dwellings
Jim’N'Con_NC: interesting isn’t it, Roger? Int rates rise and mortgage rates fell
Albert Lowry: remember the welath from real estate is long term, you invest today to reach the harvest for the future
Albert Lowry: wealth*
Penny: Good, and thanks again for your advice with my computer troubles.
Mike Summey: Interesting Albert! I’ve never had much faith in Condos
[Investment Chat]: Tyrone has entered (8:07 pm)
[Investment Chat]: ozzie has entered (8:07 pm)
Mike Summey: Hi Tyrone & ozzie
Tyrone: hello mike
Tyrone: I have been reading your book like crazy (weekend mill.) since it was given to me in NY on April 17th
Mike Summey: Are you talking about condos for resale or to hold for income?
Mickey: Mr lowry what price range would be good to invest in condos?
Mike Summey: Hi Tyrone & ozzie
Tyrone: hello mike
Tyrone: I have been reading your book like crazy (weekend mill.) since it was given to me in NY on April 17th
Mike Summey: Are you talking about condos for resale or to hold for income?
Mickey: Mr lowry what price range would be good to invest in condos?
Mike Summey: Tyrone, were you at the Learning Annex event?
Albert Lowry: For both resale and income
Tyrone: yes
Roger Dawson: For those of you who don’t know our guest Albert Lowry, he virtually invented the info-commercial and pioneered real estate investment seminars 30 years ago.
Mike Summey: I think I remember you. You came over and talked with me didn’t you.
Tyrone: yes. the guy with the yankee hat on
Roger Dawson: For those of you who don’t know our guest Albert Lowry, he virtually invented the info-commercial and pioneered real estate investment seminars 30 years ago.
Mike Summey: I think I remember you. You came over and talked with me didn’t you.
Tyrone: yes. the guy with the yankee hat on
Mike Summey: Al, I referred to you as the Godfather of Real Estate Investing in the email I Sent out announcing you would be with us tonight.
Albert Lowry: Make sure you always get a copy of Home owners rules and regulations before completing the purchase of your unit, remember all markets are different, therefore before purchasing lookout at a minimum of 20-25 comparable properties before you close your transaction
Tyrone: came to talk to you and get your autograph
Mike Summey: Thanks
Mickey: Mr Lowry what you invest in starting out in real estate as a new invester?
Albert Lowry: Prices always depend on the market that you are in, if you are purchasing in Pennsylvania, your prices would be only 1/4 of what they would be in California
Jim’N'Con_NC: Albert, do condo developments usually have a limit (%age) on the number of units in any development that can be used for rental purposes?
Tyrone: I am really trying to get my first deal going but all the realtors in NY want money down
Mike Summey: I will be back in NY at the Learning Annex event in October along with Donald Trump, Rudy Gulliani, Suze Orman, Robert Kyiosaki and the most important one Albert Lowry.
Albert Lowry: The safest of all properties is the single family dwelling
Albert Lowry: easier to buy easier to manage easier to exchange easier to sell
Mike Summey: On that we agree.
Tyrone: how can I structure a deal with a realtor with no money down in NY if the first thing that they ask when you call is how much do you have to put down?
Doug in CT: One thing that impressed me about Dr. Lowry in the Orlando event was the ernestness of the message. It was like a preacher telling us we needed to be saved. But the message from Dr. Lowry was that we needed to gain wealth.
Roger Dawson: And SFRs attract more permanent tenants
Jim’N'Con_NC: Gee, Mike. You need to start hanging out with “classier” people… LOL
Albert Lowry: In some cases yes and in some cases no, you must see the rules and regulations of the development
[Investment Chat]: Christopher has entered (8:12 pm)
Mickey: Do you do any subject to investing?
Mike Summey: Tyrone, what he wants to know is if there is money in the deal to pay his commission.
Mike Summey: Hi Christopher
Tyrone: oh
Mike Summey: Tyrone, have you looked at any For Sale By Owner properties?
[Investment Chat]: J.B. has entered (8:13 pm)
Mike Summey: Hi J. B.
[Investment Chat]: Christopher has entered (8:14 pm)
[Investment Chat]: Kim-OH has entered (8:14 pm)
Mike Summey: Hi Kim
Kim-OH: Hi Mike
Tyrone: yes, but there are not too many in nyc I am looking to invest in the bronx
Farris: Any advise on what is the best use of a lot of capital. I need income now. My properties are all cash flowing nicely but very little positive cash flow after expenses and debt retirement. Should I put a lot down to create more cash flow?
Doug in CT: Dr. Lowry’s biography was also impressive, it sounded like Mike’s bio, carrying all that dirt to build a terrace.
Roger Dawson: We’ve had some abuses in CA with home owner associations foreclosing for minor arrears in dues. The legislature is working on a law that anything less than $5000 must be persued in small claims court, not by foreclosure.
Kim-OH: Mike how was your trip
[Investment Chat]: Christopher has entered (8:14 pm)
Mike Summey: Christopher is having a case of the in & outs.
J.B.: Hello Mike!
Mike Summey: Are you counting Jim?
Mickey: Mr lowry will you be coming to TX soon..
Roger Dawson: Farris, in a boom market, leverage is the name of the game. Own as much real estate as you can for as little down. The cash flow will come later.
Mike Summey: Farris, the cash flow will build over time. Every year the rents go up the mortgage pays down and the properties appreciate. Be patient.
Albert Lowry: Suggest strongly that your finance be structured as to makeing sure that your net income exceeds your monthly debt service, with interest rates as they are that should not be that difficult, There are many ways to reduce monthly payments, such as adjustable rate mortgages
Mike Summey: There are several lenders who are now offering 5-10 years interest only before amortization begins.
Albert Lowry: Yes I will be in Texas, scheduled to be speaking with Wright Thurston and with other teams of experts in the fall
Jim’N'Con_NC: Mike… it’s pretty impressive to see you amongst a group like Trump, Guiliani, Orman, et al.
[Investment Chat]: gjb has entered (8:17 pm)
[Investment Chat]: Testut has entered (8:17 pm)
Mike Summey: Hi gib
Mike Summey: Hi Testut
Albert Lowry: I will be in Dallas and Arlington.
Farris: The only problem with waiting for later for the income is that I am fulltime as an investor now. No other income. Just capital.
Mike Summey: Jim, they’ll have to just get used to it.
Mickey: Will you be coming to Houston, TX?
gjb: Hello
Doug in CT: I got a couple of 30 year fixed, interest only for the first 10 years. Great for cash flow.
Mike Summey: Farris, maybe you’ve tried to go fulltime a little too soon.
Jim’N'Con_NC: True, Mike
Albert Lowry: Yes, however it is scheduled to be with REIA in Texas, early part of 2005
Farris: I can get 30 years fixed, how did you get interest only for that long?
Mickey: Great look forward to seeingyou in Houston..
[Investment Chat]: J.B. has entered (8:19 pm)
Mickey: Mr Lowry dop you have a web site?
Mike Summey: Farris, I didn’t decide to go fulltime as an investor until I had over $100,000 per month in positive cash flow. maybe I waited a little too long.
Albert Lowry: The website is under construction as of now, it should be up and running by Aug. 1st.
[Investment Chat]: jamesfool has entered (8:20 pm)
Albert Lowry: of this year 2004
Mike Summey: Hi jamesfool
jamesfool: hi mike
jamesfool: hi everyone
Jim’N'Con_NC: Dr. Lowry… do you know what your website addrees will be?????????
Mickey: Good look forward to adding it to my buddy list.
Tyrone: is anyone in the room from NYC?
Albert Lowry: The address will be put in the Newsletter for Aug.
Testut: Mike: Seems like the only way to generate positive cash flow on properties in my area is to put 20% down or do an interest only loan. What are your thoughts on Interest Only?
Doug in CT: We are a little north of NYC near Hartford, CT
Mickey: i had a book of yours and some tapes but lost them in a house fire.
Ralph Roberts: a good website is a mighty powerful tool 
Jim’N'Con_NC: Mike, I wanted to ask you before, but where are most of your properties? Or are they “scattered” around the country?
Tyrone: Doug how r u doing in your real estate investing?
[Investment Chat]: J.B. has entered (8:22 pm)
Mike Summey: Testut, the interest only loans work well to help get you started.
Mickey: Mr lowry if you were new to real estate and had no money are credit how would you start?
Mike Summey: Jim, my properties are mostly in Western North & South Carolina.
[Investment Chat]: newinvestor has entered (8:24 pm)
Farris: Mike, I left my family company with a sizeable nest egg. Figured with that kind of leverage I could create income to live on while some of my properties were growing. I’ve already stepped off the ledge, no looking back. I have however invested a little in other industries for income.
Mike Summey: Hi newinvestor
Doug in CT: We are following the Week-end Millionair model. Slow and steady wins the race. Buy low, rent out, never sell, wait until you get 100K/mo. in cash flow and then write a book, find a negotiator, partner up, find a web guru and the rest is well…..history.
newinvestor: Hi Mike
J.B.: Mike, my wife and I are new to REI. We are looking at a nice Single family home. Price is $95,000 and owners are firm and want all cash at closing. We computed NOI at $634.00. We presently have $75,000 cash for investment - looking for ideas on structuring offer.
Mike Summey: Farris, if you have the cash to invest, you can always put more down on the properties to get cash flow coming early.
Albert Lowry: Easiest way is to locate a seller who is willing to lease the property to you with the option to purchase the property in the future 1,2,3 years.
[Investment Chat]: Steve WI has entered (8:25 pm)
Mike Summey: Hi Steve
Jim’N'Con_NC: MIke & Dr. Lowry… regarding interest only loans… would you recommend converting to a conventional laon as soon as your cash flow can support it, or let the loan continue as interest only for the full term; ie 10 years???
Mickey: so subject to.
Doug in CT: Hi Steve does WI stand for Wisconsin?
newinvestor: Mike I have read your Weekend Millionaire book, it’s a great book. Thanks for sharing your knowledge.
Mike Summey: JB, my advice is to not fall in love with any property. If you can’t make a deal that works for you, then move on to one that will.
Mike Summey: Roger & I have an announcement for you tonight.
Doug in CT: Ron LeGrand’s presentation in Orlando was much like what Mike has just said. There are too many people willing to give you equity so you wait until you find the person who NEEDS to sell and doesn’t just WANT to.
Steve WI: Good evening. Yes, Green Bay…..as in Packers. Just finished the book today and found it very educational, inspiring, and lots of tools to get started. Thanks.
Albert Lowry: All depends on the immediate need of the owner of the property, if you really want to get money working instead of putting it all into mortgage payments, you might want to go the the market, and you will find loans currently available at 1.25% and 1.95% which is negative ammortization, however it does allow you to free up money for other investments and improvments
Mike Summey: We just signed the contracts for a new book with the working title of The Weekend Millionaire Mindset: How Ordinary People Can Achieve Extraordinary Financial Success.
Doug in CT: I was raised in Madison, WI and I am still a big Packer fan.
Jim’N'Con_NC: Great, Mike… Roger. When will it be released?
Kim-OH: Mike that’s exciting, when do you expect to have the book finished?
Roger Dawson: Look for it in the spring of 2005.
Mike Summey: It will be next year.
[Investment Chat]: J.B. has entered (8:29 pm)
Mike Summey: Roger & I have an announcement for you tonight.
Doug in CT: Ron LeGrand’s presentation in Orlando was much like what Mike has just said. There are too many people willing to give you equity so you wait until you find the person who NEEDS to sell and doesn’t just WANT to.
Steve WI: Good evening. Yes, Green Bay…..as in Packers. Just finished the book today and found it very educational, inspiring, and lots of tools to get started. Thanks.
Albert Lowry: All depends on the immediate need of the owner of the property, if you really want to get money working instead of putting it all into mortgage payments, you might want to go the the market, and you will find loans currently available at 1.25% and 1.95% which is negative ammortization, however it does allow you to free up money for other investments and improvments
Mike Summey: We just signed the contracts for a new book with the working title of The Weekend Millionaire Mindset: How Ordinary People Can Achieve Extraordinary Financial Success.
Doug in CT: I was raised in Madison, WI and I am still a big Packer fan.
Jim’N'Con_NC: Great, Mike… Roger. When will it be released?
Kim-OH: Mike that’s exciting, when do you expect to have the book finished?
Roger Dawson: Look for it in the spring of 2005.
Mike Summey: It will be next year.
[Investment Chat]: J.B. has entered (8:29 pm)
Kim-OH: Hi J.B.
jamesfool: Looking forward to the book
Ralph Roberts: congrats to Mike and Roger!
Doug in CT: Another presentation that was very memorable in Orlando was Harv Ecker’s on the Millionaire mind. He had us turn to our neighbor and say “You have a Millionaire Mind” about a dozen times during the presentation. By the end of the talk many of us were beliveing it.
Farris: Mike, by the way, I emailed you a couple of months ago. Told you about my uncle whom you helped bring to A-ville for city management. I live in your old hometown.
Mike Summey: Albert, another good source of financing is private mortgages. I have several where individuals who were getting 1-2% on CDs converted them to mortgages with me at 3-6%.
Mike Summey: Farris, yes I remember. I brought you uncle here as interim city manager when the old one was ousted.
[Investment Chat]: J.B. has entered (8:31 pm)
Testut: Mike: How do you find private mortgages?
Mike Summey: JB, now you have the in & outs.
[Investment Chat]: J.B. has entered (8:32 pm)
Mike Summey: Testut, I knew people who had significant deposits. That made it a little easier.
J.B.: Mike, hope we’re in for the rest of the hour
Mike Summey: I will be…probably a little longer.
Ralph Roberts: there will be a transcript for any one who misses part of the conference tonight
[Investment Chat]: J.B. has entered (8:33 pm)
Mike Summey: Ralph is great about getting the transcripts posted within minutes of the chat wrapping up.
newinvestor: Mike…Roger…in your opinion, as a beginning investor, should I shy away from old houses like 100+ yr old houses, or is this something I shouldn’t be worried about.
[Investment Chat]: Farris has entered (8:35 pm)
Roger Dawson: I’d be concerned about major maintenance problems with 100 year old houses.
jamesfool: I have a question about an abondon place which I found. An investor bought it and now turn around asking for 279k. I see great potential in turning it into a $350k property. If I can negotiate it to bring down the price, how should I do it?
Testut: Mike, do you ever purchase new homes? I just found a builder in the area that is offering nice homes with two year warrenties at better prices than I can find existing homes at.
[Investment Chat]: J.B. has entered (8:35 pm)
Mike Summey: newinvestor, itdepends on what the cost. If you factor in much higher maintenance cost and consider and needed defferred maintenance you may have some okay deals. The things to be most concerned about are lead paint, asbestos, etc.
Albert Lowry: Make an offer on the property won which you can pay to make the deal
Jim’N'Con_NC: Mike & Roger… Is there a “packaged set” of your materials that you would recommend for new investors like a lot of us here tonight? Maybe a “Starter’s List” of books & materials that would compliment each other and help us on the road to financial freedom?
Mike Summey: If I were going to look at older houses, I’d probably be more inclined to find ones I could fix up and flip rather than ones to hold long term.
newinvestor: that’s what I thought too. old houses shouldn’t be held long term
newinvestor: thanks for your thoughts
Kim-OH: Mike when you say older how old are you referring to?
[Investment Chat]: Farris has entered (8:38 pm)
Mike Summey: Jim, the package on our website is as good as it gets. Roger’s negotiating, persuasion, performance and decision making programs along with the Weekend Millionaire program touch on just about everything you will encounter in real estate investing.
newinvestor: I understand the benefits of holding properties for long term portfolio, but can you give me your opinion on 3 yr lease options?
Jim’N'Con_NC: ARent’ newer houses, ones with air cond and some of the nicer amenities, easier to rent than older houses?
Jim’N'Con_NC: aren’t*
Mike Summey: Yes
Mike Summey: Albert, you’d probably be better at the lease option question than me.
Jim’N'Con_NC: I know in the area here where we live, Mike, I am inclined to stay away from houses with oil heat
Mike Summey: Jim, I have several with oil heat and don’t seem to have any major problems with them.
Albert Lowry: A 3year lease options is the perferred length of time the owner would give to a prospective buyer for the future, as this has excellent tax benefits.
Jim’N'Con_NC: Mike… are tho houses with il heat more difficult to get renters into?
Jim’N'Con_NC: oil heat*
[Investment Chat]: Steve WI has entered (8:42 pm)
Mike Summey: No
Jim’N'Con_NC: Dr. Lowry - When you do a 3 year lease option, how is the purchase price determined?
Mike Summey: Welcome back Steve
jamesfool: How can we hold the upper hand in negotiating with an experience investor? Is there a rule that we can follow?
Mike Summey: That on is yours Roger
Albert Lowry: I determine the price based upon the fare market value of the property today and have the property appraised at the time the buyer would like to purchase, and I have the buyer pay the new value at the time of exercising of the option.
Roger Dawson: Jamesfool, power in a negotiation comes from having options. You need to project to the seller that you have better options available to you.
Farris: Mike - regarding property management - no such animal in my neck of the woods. Some realtors manage some rentals but they seem to belong to the realtor/broker. Would you see a benefit in starting my own management firm, hire competent individuals to manage my propertires but also other investors. Do you managers handle all financials; ie bills, taxes, bookkeeping, etc.?
[Investment Chat]: Rick has entered (8:45 pm)
Mike Summey: The best advice I was ever give was more than 35 years ago when a brilliant PhD Chemist told me if I would read an hour a day about something I didn’t know anything about it would change my life forever. Boy was he right!
Jim’N'Con_NC: Dr. Lowry - If I am the buyer doing a three-year lease option, is it “legit” to set the price upfront or what?
jamesfool: Do you think it would be possible to negotiate a property of 279k down to like 99k?
Albert Lowry: Yes
Mike Summey: Farris, my managers handle everything except mortgage payments, taxes and insurance.
[Investment Chat]: Steve WI has entered (8:46 pm)
jamesfool: wow…how can I do that?
Farris: Do you handle those your self?
Jim’N'Con_NC: jamesfool… I am not sure he was answering your question or mine….
Albert Lowry: Yes to to setting the price upfront, and NO to 279K down to 99K
newinvestor: Albert, I guess my question is not clear, what I wanted to know is if you think that 3 yr lease option is a good compromise between holding a property long term and flipping the property
Jim’N'Con_NC: Ok thanks for clearing that one up
jamesfool: yes, thanks
Mike Summey: Farris, yes I handle those. I also handle the accounting. It is all computerized and what I do is post the property managers reports to my system which combines their numbers with the things I pay. This forces me to look at every expenditure every month. It’s my way of managing the managers.
Jim’N'Con_NC: Mike/Roger - have you done many lease-option PURCHASES?
[Investment Chat]: Roger Dawson has entered (8:48 pm)
Roger Dawson: I leased optioned one of my properties for $2000 a month, with a set purchase price at the end of the year. The property went up in value $80,000 during the lease and the lessee still didn’t pick up the option. Go figure. But it was great for me.
Mike Summey: Jim, I’ve never done one, that’s why I deferred the question to Albert.
Jim’N'Con_NC: Mike - Any progress on the KingAIr?
Mike Summey: Not yet. If you’d buy the Duke, I’d look harder.
Farris: Mike- how often are you home in Asheville. Would you be interested in my meeting you and taking you out to lunch sometime and chew the fat? Abingdon is only 2 hours away?
Jim’N'Con_NC: I would love to… just not quite there yet. Sone day!
Jim’N'Con_NC: Some*
Mike Summey: Farris, I’d be happy to if we could find a convenient time.
Jim’N'Con_NC: Mind if I tag along, Mike?
Mike Summey: I will be traveling until about the middle of August.
Jim’N'Con_NC: ( I live in the area)
Mike Summey: Jim, I’ll catch you at the airport.
Jim’N'Con_NC: Ok that’s cool
Farris: Well my schedule is fairly flexible. Email me, just give me 24 hours notice.
Mike Summey: I have to drive to Nashville on Wednesday to pick up the plane. It has been in for annual inspection.
[Investment Chat]: free2live has entered (8:53 pm)
Mike Summey: Then to Phoenix on Friday.
Mike Summey: Hi free2live
Jim’N'Con_NC: Dr. Lowry, where do you live?
Albert Lowry: Las Vegas, Nevada
Mike Summey: Albert lives out there with the High Rollers
Farris: Jim’N'Con, where are you?
Jim’N'Con_NC: Ahh… I fly over Las Vegas all the time. Incredible growth!
Mike Summey: Jim is an airline pilot. Which airline Jim?
[Investment Chat]: Steve WI has entered (8:55 pm)
Jim’N'Con_NC: US Airways
Jim’N'Con_NC:
Jim’N'Con_NC: snicker* Jim’N'Con_NC: lol newinvestor: Mike…Roger… if you would start investing all over again, what would you do and not do? What advice can you give to beginning investors like me? Jim’N'Con_NC: good question Mike Summey: newinvestor, I tried to share what I have done in the book. I can’t say that I would change anything, it has been very good for me. Testut: Roger, would you say your negotiating skills (for real estate) have contributed greatly to your net worth? Mike Summey: newinvestor, I tried to share what I have done in the book. I can’t say that I would change anything, it has been very good for me. Testut: Roger, would you say your negotiating skills (for real estate) have contributed greatly to your net worth? Roger Dawson: I would build a portfolio of 6 SFRs and then move into 4 plexes and 16 unit apartment buildings. Mike Summey: No to mine! Albert Lowry: Great chatting with you all, I am heading off for dinner Farris: Ahh- some doctor in Fletcher (Gilmer) alledgely murdered his father and drove him here where I live in Virginia and dumped his body. Did you hear about that? Roger Dawson: Thanks Albert! Jim’N'Con_NC: thank you, Dr. Lowry Mike Summey: I have used techniques from Rogers negotiating program to make millions. Mike Summey: Goodnight Albert, thanks for joining us. Jim’N'Con_NC: we appreciate your input. Please come back again and chat some more! Ralph Roberts: Thank you! jamesfool: thanks dr.lowry Roger Dawson: Testut: I don’t care if you do brain surgery, you will never make money faster than you will when you’re negotiating! Mike Summey: That’s true. Jim’N'Con_NC: Farris - Didn’t hear about the doctor. We are new to the area as of 1999. Moved from Fresno/Clovis California (We DEFINITELY made the right move!!!) [Investment Chat]: Paulboston has entered (8:59 pm) [Investment Chat]: Steve WI has entered (8:59 pm) Mike Summey: Hi Paulboston Paulboston: Hi Mike Testut: What is Roger’s program called? Roger Dawson: Jim, I lived in Bakersfield for 3.5 years and hated every minute of it! Mike Summey: Secrets of Power Negotiating. It’s on the homepage of this site. Roger Dawson: Testut, my other program is called “Secrets of Power Persuasion.” Jim’N'Con_NC: Roger - I feel your pain… Bakersfield is the Gateway to Fresno Paulboston: 2 great programs Roger, I have both [Investment Chat]: Steve WI has entered (9:01 pm) Ralph Roberts: Look for the little video of Roger talking down on the left… it’s a link to his site, rdawson.com. Roger Dawson: Thanks Paul. I knew somebody had bought a set, but I didn’t know who it was. Mike Summey: Testut, the negotiating program deals more with the logic side of a transaction while the persuasion deals more with the emotional side. Testut: Mike/Roger, looks like I have another excellent way to spend that “hour” each night–Roger’s program! Paulboston: Giving altermatives and knowing when you’ll walk away are key Roger Dawson: Mike, that’s good. May I use it? Mike Summey: For a fee Jim’N'Con_NC: Roger, Although Fresno sux, it is playing catch-up with the rest of the state in the real estate market right now. Both prices and rents. Roger Dawson: I bought my house in Bakersfield for $32,000. Sold it for $64,000 and thought I’d made a killing. Jim’N'Con_NC: Roger - WIll your programs help me win more arguments with my wife?????? newinvestor: The Secrets of Power Negotiating is very good, I have listened to the audio book, even my 3 yr old listened to it. Roger Dawson: Jim, there’s only one way to win an argument with a woman. Let her know that she can win the argument because you love her so much. Mike Summey: That’s nearly a 30% return on investment. Ralph Roberts: if you’re going to lose anyway, turn it into a strongpoint, as Roger says Roger Dawson: new investor: Thank you! Roger Dawson: new investor: Thank you! newinvestor: no Roger, Thank you! Jim’N'Con_NC: Roger - You are a wise ( and I believe a MARRIED) man! Mike Summey: I’m not going to get into that discussion. Jim’N'Con_NC: LOL Roger Dawson: Yes, I’ve been married to Gisela for just over nine years. It makes a big difference when you find the right one! Paulboston: and expensive whenyou don’t Mike Summey: What he isn’t telling is that I had to give my approval before he married her. Mike Summey: What he isn’t telling is that I had to give my approval before he married her. Roger Dawson: I wouldn’t make a move without your approval Mike. Mike Summey: Yeah right! Testut: We seem to be talking about a different type of real estate suddenly! Mike Summey: I’m glad you brought that to our attention. We are getting a bit off track. Jim’N'Con_NC: Mike/Roger - I really appreciate all your great points. It is so refreshing to gain insight on how you think. Your example on the 30% return is so different from the way I was “educated” in the traditional sense. Thanks. It is truly an honor to get such sage advide “from the horse’s mouth”. free2live: Is it always a good idea to offer the seller 70% or less of the asking price? Jim’N'Con_NC: advice* Mike Summey: free2live, remember that value is the combination of price and terms. How you pay is often times more important hhan what you pay. [Investment Chat]: newinvestor has entered (9:10 pm) free2live: Thank you. Jim’N'Con_NC: Roger - Earlier you mentioned 6 SFRs; 4-plexes, and then I think you said 24 unit apt complexes. What are your thoughts about getting into anything bigger (ie; 200+ units apt complexes) Mike Summey: Would you rather pay $50,000 cash for a $100,000 property or pay $120,000 for the same property if you could pay it $50 per month for 20 year with a baloon payment at the end? free2live: Very good point! Thanks, again. Mike Summey: Jim, my personal rule is to not buy a property that represents more than 15-20% of the aggrate total of what you own. [Investment Chat]: newinvestor has entered (9:13 pm) Mike Summey: You don’t want to get yourself in a position where the tail can wag the dog. Jim’N'Con_NC: Roger - The reason for my question is that I will be coming into a good sum of money in the future and I need to invest it. Should I go for large apt complex type properties ro go for multiple smaller-type complexes? Mike Summey: A good friend of Roger and I was doing very well buying single family homes until he decided to buy a 24 unit building. It nearly broke him before he could sell it. Jim’N'Con_NC: Or should I think about commercial (ie; shopping malls; etc) Mike Summey: Jim, if it were me, I’d much rather have numerous small properties than one large one. Jim’N'Con_NC: I ahve a few years to go before I have to commit. I would like to make the right decision. Mike Summey: In the stock market they call it diversification. Jim’N'Con_NC: Thanks, Mike, Roger. Jim’N'Con_NC: It’s hard to beat single-family homes Mike Summey: I think we lost Roger Jim’N'Con_NC: His wife got him! [Investment Chat]: Testut has entered (9:17 pm) newinvestor: Thanks for chatting with me. I have to go. Ralph Roberts: Thank for dropping in, newinvestor! Testut: Mike/Roger, regarding diversification, would you say it is good to develope a portfolio of a few properties that rent for $950, a few for $1200 and a one or two at $1400 assuming that is the mid rent range rather than just $950 homes Mike Summey: Jim, after you get a few single family homes, then start looking at 2-4 unit properties, get a few of these before moving to the 10-30 unit properties. Wait a long time before jumping into a 200 unit complex. Mike Summey: goodnight newinvestor newinvestor: thanks for sharing your thoughts newinvestor: goodnight everyone jamesfool: good night free2live: came across a prop with asking price of $988K; it needs about $30 of work; we were going to offer $900K and have the owner carry. Do you think this is too high of a deal for a newbie? What do you think? Mike Summey: Testut, that would let you appeal to a wider range of renters, but I don’t think it’s too important to worry about diversifing that way. I’d rather see you buy is several different communities rather than have 10 houses in one neighborhood. Mike Summey: goodnight jamesfool jamesfool: I have to go too…thanks a lot for making this every monday. this is my first time in the forum and I will be coming in every monday from now on. Jim’N'Con_NC: OK, Mike. FYI, we have 6 SFRs so far (in NC). So, you recommend looking at duplexes and 4-plexes at this point in time? Mike Summey: jamesfool, be sure to sign up as a new user so you can get email notices of the chats. We don’t do them every Monday. Testut: Mike, got to sign off. Thanks again for all the advice! jamesfool: ok…I will do that. [Investment Chat]: Steve WI has entered (9:22 pm) Mike Summey: Jim, if you alread have six, I wouldn’t be concerned about looking at a duplex , triplex or fourplex. Once you buy one, wait a while before buying a second. Learn the difference between multifamily and single family. Mike Summey: There are a number of differences. Jim’N'Con_NC: OK, thanks Mike Summey: free2live, what kind of property is the $900,000 property? Jim’N'Con_NC: I have six, single-family homes. No duplexes or bigger [Investment Chat]: kathi has entered (9:25 pm) Mike Summey: Hi Kathi free2live: It’s a SFR. Homes in that area are going for 1.2M. Mike Summey: Where have you been Mike Summey: free2live, that does not sound to me like a good rental. kathi: Hi, thanks for answering my e-mail earlier and telling me about this chat Mike Summey: You’re welcome. Mike Summey: Sorry your late. We will be wrapping up soon. free2live: You’re right. I was thinking of doing the repairs and selling it. Mike Summey: That’s a different deal. If you can make a big chunk by turning it you may want to consider it. Jim’N'Con_NC: kathi - you need to get here at 8PM EDT. LOTS of GREAT advice here! [Investment Chat]: Steve WI has entered (9:29 pm) Mike Summey: Kathi, did you have any questions before we wrap up? I am going to have to sign off soon. Tyrone: I second that! kathi: are there any benefits in lease with option to but with me doing the finacing..? OK next time i’ll be on time Mike Summey: kathi, have you registered onthe website? free2live: Thanks for the adice. I’m sure $200-300K would be good chunk. kathi: just now Mike Summey: I’m not sure I follow you question about lease/option. Are you selling or buying? kathi: was thinking about buying, doing repairs, then sell with lease with option to buy. Jim’N'Con_NC: Goodnight all. Great discussion, as usual. Thanks again, Mike. Happy Investing/Landings! Mike Summey: Have you considered keeping the property and renting it? That’s how you build a steady income stream. Ralph Roberts: nite, Jim Tyrone: mike what do you think about me doing my first deal in Albany NY, which is about 90-100 miles away from where I live now in the Bronx Mike Summey: Goodnight Jim Jim’N'Con_NC: Thanks to yu too, Ralph. Appreciate the fine job you are doing! Mike Summey: If the deal is good that should be fine. Are you comfortable with it. Ralph Roberts: t’anks, Jim kathi: with lease/options–wondered if that would shift more repairs/upkeep to renters Tyrone: so the location doesn’t matter as long as the numbers work and it is in a rentable or sellable neighborhood [Investment Chat]: Steve WI has entered (9:35 pm) Mike Summey: Tyrone, I like to keep things close, but in some areas its hard to find anything close. If you’re comfortable, I don’t think that is too far away. I have a whole group of properties in SC that are about 100 miles away. Mike Summey: kathi, if you figure the repairs and maintenance cost into the purchase when you make it, you should have no problem covering repairs from your rent. Mike Summey: There’s a whole section in the book about this. Study it carefully. [Investment Chat]: Steve WI has entered (9:37 pm) Mike Summey: You may also want to get the audio program. Some people learn better when they hear things, but everyone learns faster and retains more when they both read and hear the material. Mike Summey: You can sample the audio program on this website. kathi: thanks I will. regarding distance, what about buying in another state where family/friends live and could assist with needs? Recently got carlton sheets on audio, didn’t know you had one, i’ll look into it. thanks again. Mike Summey: Carleton was on the last chat with us. I talked with him today for about an hour today. Mike Summey: He’s a great guy. Tyrone: it has been an very informative night I def. will be here next week! Mike Summey: If you have friends who can keep an eye on properties for you when they are not close, that is a benefit. [Investment Chat]: bwalke1 has entered (9:41 pm) Mike Summey: Tyrone, register on the website. There will not be a chat next Monday as both Roger and I will be in Phoenix for the National Speakers Association convention. Tyrone: that’s (or I can get a good management comp. as soon as I find my first property) Tyrone: okay then the week after Mike Summey: If you are registered, you will get email notices of the chats and anything else new that is happening. Mike Summey: Hi bwalker1, where have you been? [Investment Chat]: Steve WI has entered (9:43 pm) bwalke1: Hello, Just thought I would check things out… Mike Summey: I’m going to have to sign off for tonight. It’s been fun everyone. You are welcome to stay and chat with each other as long as you wish. Mike Summey: kathi, send me an email and tell me how you sister is doing. Ralph Roberts: It’s been a good one tonight! bwalke1: Is it possible to see the entire chat for tonight? Ralph Roberts: I’ll have a complete transcript posted in just a few minutes kathi: it seems like there are alot of houses for rent in the ashevillI’ll do it, thanks so much for the info Mike Summey: Ralph, thanks for keeping us all straight and gor getting the transcripts posted so soon after the chats are over. I know everyone appreciates you. Ralph Roberts: click on the Chat Transcripts button bwalke1: Thank you. Ralph Roberts: glad ta do it Mike Summey: bwalker1, get registered so you can find out about the next chat. Ralph Roberts: nite all free2live: Thanks, Mike and Roger. The chat has been very informative. Mike Summey: Goodnight all. Ralph Roberts: —- end recording —– » Filed Under Uncategorized Leave a ReplyComments