Chat 1-31-05
Posted on January 31, 2005
Nice chat tonight using our new chat software… alas, I did a bad and lost the first half hour of the transcript, but here’s a good solid hour of great chatting… –Ralph
8:29 PM [Mike_Summey] David, all you’re buying is the lien. You still would have to foreclose to get title to the property.
8:29 PM [David_V] yes…I just want to find a book or something to make sure I am covering my bases before bidding on something
8:29 PM David_Oro has joined the chat.
8:29 PM [Steve] Hello everyone
8:29 PM [Penny] apparently more than one.
8:29 PM [Mike_Summey] Hi Steve
8:29 PM [Mike_Summey] Hi David O
8:29 PM [Steve] New format - cool
8:30 PM [David_Oro] hola
8:30 PM [Penny] Ralph, I’ll get it together eventually. I still like your new program.
8:30 PM [Ralph_Roberts] :p I likes this software
8:30 PM [Bryant] yeah I know the idea is SFH close to home, but homes in my area are $400k-1.2M+ and rents are $1800-2500
8:30 PM [David_Oro] bryant, where are you?
8:30 PM [Rob_FL] Lately, I have been getting calls on people who do not have a lot of equity. Can you still structure a good deal?
8:30 PM [Mike_Summey] Bryant, look a little further out from where you live.
8:31 PM [Ralph_Roberts] the only major thing that needs changing is to make it take longer text input… we don’t want to slow Roger down 
8:31 PM [Mike_Summey] If you near a major city you may have to look 30-50 miles out.
8:31 PM [Bryant] Burbank, CA
8:31 PM [Doug_in_CT] I find it is easier to go back and look what happened awhile back with the new program. But I seem to have to keep it pithy.
8:31 PM [Roger_Dawson] Thanks Ralph, that would be great.
8:31 PM [Bryant] how far is too far? what is the driving criteria?
8:32 PM [Mike_Summey] Rob, if the seller doesn’t have much equity based on market values, you probably won’t be able to get a good deal.
8:32 PM [Steve] Ralph, no way to see transcript of messages prior to entering room?
8:32 PM [David_Oro] you have to go pretty far if you live in california
8:32 PM [Mike_Summey] Rob, a good deal would require the seller to bring cash to the table and most won’t do that.
8:32 PM [Ralph_Roberts] I think I’ll be able to provide that next week.
8:32 PM [Steve] Good thanks. I am not usually late, but now I see what happens when you are…
8:32 PM [Rob_FL] Mike, that’s what I thought…especially when there are repairs necessary too.
8:33 PM [Mike_Summey] Can’t you click on the 5th icon from the left at the bottom and see the prior text?
8:33 PM [Doug_in_CT] Yikes, I just tried the eraser and lost everything….careful where you click.
8:33 PM Steve has left the chat.
8:33 PM [Penny] No Mike, that just enables you to read the text without it jum….
8:33 PM [Penny] jumping to new text if someone sens new message
8:33 PM [Mike_Summey] Doug, it is still there if you click the 5th icon from the left.
8:34 PM [Penny] keeps you from having to scroll
8:34 PM [Ralph_Roberts] Doug, click on the two little page icons and you’ll be able to see everything you cleared… I think.
8:34 PM [Doug_in_CT] I have the full screen — but I am warning you….don’t touch that eraser!
8:34 PM [Penny] thats right Ralph
8:34 PM Irv_Haug has left the chat.
8:34 PM [Mike_Summey] Ralph, testing the chat program in live conditions is sort of like going on a blind date.
8:34 PM [David_V] Mike, you said I was only buying the lein, and would still have to forclose…did you mean on the tax lein?
8:34 PM [Penny] I’ve already had to do that 3 times, since I don’t know my right from left tonight
8:35 PM [Mike_Summey] Yes
8:35 PM [Ralph_Roberts] true, Mike, but you don’t get any rewards unless you DO go on a blind date, eh?
8:35 PM [Ralph_Roberts] sometimes, anyways
8:35 PM [David_V] mike, ok, I am staying away from those. just interested in those with equity and bidding only on the first.
8:35 PM [Mike_Summey] Wouldn’t know! Haven’t been on one in a long time.
8:36 PM [Penny] I agree Ralph.
8:36 PM [Mike_Summey] David, did you know that over half of the property in the US is owned free and clear?
8:36 PM [David_V] Hey, Roger,
8:36 PM [Ralph_Roberts] another neat feature…. if some one types your name, it beeps at ya ;-)… now THAT is kewl!!
8:36 PM [David_V] free and clear? didn’t know that.
8:36 PM [David_V] hmm
8:36 PM [Ralph_Roberts] and the color of the text changes
8:36 PM [Ralph_Roberts] right Ralph
8:36 PM [Ralph_Roberts] right!
8:37 PM [Doug_in_CT] I need a little winter inspiration….I feel the February blahs setting in. I need some exciting reason to get out there .
8:37 PM [Bruce] Mike, how much cash reserve should be kept per property?
8:37 PM [Roger_Dawson] Did you know that one person in 14 is a millionaire in the US?
8:37 PM [David_V] well, I’m still going after deals with owner financing, just trying to use a multipronged approach
8:37 PM [David_V] I want to be one of those 14
8:37 PM [Mike_Summey] Bruce, I try to keep at least three months, but most of the time it hovers around 5-6 months.
8:37 PM [Doug_in_CT] Thanks Roger, I am starting to feel better.
8:37 PM [Penny] Roger, I’m not that one person. but who knows, maybe one day.
8:37 PM [Rob_FL] Mike/Roger, in past chats, you said you found most of your properties via driving around and realtors? Is that right?
8:38 PM [Rob_FL] Or did you use direct mail, signs, etc.
8:38 PM [Bruce] Mike, is it actual cash or credit line you can tap into if needed?
8:38 PM [Penny] MIke, David, how would you foreclose on a tax lein if you purchased
8:38 PM [Mike_Summey] Rob, I do it both ways. In the beginning I found most of mine by riding around.
8:38 PM [David_V] I wouldn’t purchase the tax lein, Penny
8:38 PM [Mike_Summey] Bruce, cash.
8:39 PM [David_V] everythin I’ve read says stay away
8:39 PM [Mike_Summey] I use the credit lines to buy.
8:39 PM [David_V] I know there are tax lein funds that do buy them, but it isn’t for me
8:39 PM [Penny] oh, foreclose on the tax lein?
8:39 PM [Penny] how would one do that?
8:40 PM [David_V] I don’t know.
8:40 PM [David_V] I’m gonna have to make a run to the book store some time soon and find a good book on forclosure investing.
8:40 PM [Mike_Summey] Penny, you would have to have the property sold on the courthouse steps and the you would bid in the amount of the lien, just as
8:40 PM [Mike_Summey] a lender would do.
8:41 PM [David_V] I was really surprised that there weren’t more people at the auctions I attended. And most of the people there just stood aroun
8:41 PM [David_V] around
8:41 PM [Mike_Summey] Then if you get outbid, you get your money for the lien
8:41 PM [Mike_Summey] David, that’s the way most of them go.
8:41 PM [Mike_Summey] Except the ones you really want to buy.
8:41 PM [Mike_Summey] Then there are 50 people bidding.
8:42 PM [David_V] wimike you mean with few people actually bidding?
8:42 PM [Bruce] Mike, you buy with the credit line as your down payment? or buy the entire prop. with CL then put on financing later?
8:42 PM [Penny] okay
8:42 PM [David_V] ahh
8:42 PM [David_V] yeah there is one in my neighborhood in two weeks. awesome house, lots of equity.
8:42 PM [Mike_Summey] Bruce, when I buy for cash, I use the credit line and then refinance later to repay the line.
8:42 PM [David_V] I’m not ready for that big a project yet
8:43 PM [Rob_FL] sometimes it seems the screen is frozen
8:44 PM [Ralph Roberts] hmmm… I have not notice that yet… will watch for it… thanks
8:44 PM [David_V] Partnering up will allow me to bid on more than just the bargain basement properties.
8:44 PM [Penny] Mike, you’ll have to show me sometime, talk with me sometime about the researching what you are bidding on @ the courthouse step
8:44 PM [Mike_Summey] When you get full screen, you can click on the little + sign to enlarge the text.
8:44 PM [Ralph Roberts] you can send private messages by clicking on the person’s name on the right
8:44 PM [David_V] and I think it will allow me to get hold of some that I will want to keep for rental.
8:44 PM [Penny] aboout how its done
8:45 PM [Mike_Summey] did you get that?
8:45 PM [Ralph Roberts] 2879 words so far
8:46 PM MarkNC has joined the chat.
8:46 PM [Doug_in_CT] I think I need to read the new book to get my inspiration going. Are you going to post the first chapter online at the website?
8:46 PM [Mike_Summey] Hi Mark
8:46 PM [Roger_Dawson] Remember that foreclosures at the courthouse require all cash.
8:46 PM [David_V] MIke, your advice last week about not going broke on the properties you don’t get was well recieved.
8:46 PM [Bruce] MikeI’m not sure Iunderstand why you wouldhave cash sitting for 3-6 mo.s when you could have a credit line for emerg. at no cost
8:46 PM Jicheng_Hao has left the chat.
8:46 PM [Mike_Summey] Doug, I don’t know what we will be able to post yet.
8:46 PM [David_V] yes, roger, that’s why I needed to find a partner.
8:46 PM [MarkNC] Hi Sorry I’m late, did I miss anything:)
8:47 PM [David_V] Roger, you’ve done many rehabs havn’t you?
8:47 PM [Mike_Summey] Quote from our editor at McGraw-Hill, “I enjoyed the book immensely.”
8:47 PM [Roger_Dawson] Bruce, I’ll answer for Mike. Why pay interest on a credit line if you have the cash to put down
8:47 PM [Roger_Dawson] ?
8:48 PM [Bruce] Roger, if you haven’t used the credit line it is sitting idle at no cost.
8:48 PM [Roger_Dawson] David, I’ve done properties that needed fixing up but not total rehabs.
8:48 PM [Rob_FL] AFter a minute or more, all the messages suddenly appear in the chat window
8:48 PM [Mike_Summey] Bruce, I keep the cash as a reserve fund. Banks can terminate a credit line at will if they think you are having problems.
8:49 PM [Penny] Plus the cash sitting around looks good for lenders also, right Roger?
8:49 PM [Penny] the equity line looks like open credit?
8:49 PM [Penny] but equity line still great to have.
8:49 PM [Roger_Dawson] Bruce, but once you use the credit line, you’re paying interest. Let’s say 6 percent. Why do that if you have money in a bank ..
8:49 PM [Roger_Dawson] two percent.
8:49 PM [Mike_Summey] Lender love to lend to people who don’t need it.
8:49 PM [Penny] along with the cash reserve!
8:49 PM [Bruce] All, thanks, very good points.
8:49 PM [Doug_in_CT] Yeah,, Penny — they don’t like to see “recent unexplained cash infusions”
8:50 PM [Mike_Summey] Roger and I don’t see it the same way on cash in the bank.
8:50 PM [Doug_in_CT] Whose got it right?
8:50 PM [Ralph Roberts] what speed connection do you have, Rob?
8:50 PM [David_V] I’m finding that it’s easier to get credit, when I need it less.
8:50 PM [Mike_Summey] Me
8:50 PM [Roger_Dawson] me
8:50 PM [Mike_Summey] Beat you to it Roger
8:50 PM [Doug_in_CT] That was almost simultanious
8:51 PM [Bruce] Mike, my questions revolved around having more cash to buy more. I actually keep cash on hand, just wanted different opinions
8:51 PM [Roger_Dawson] Fast draw Summey
8:52 PM [Mike_Summey] Bruce, I maintain the credits lines with which to buy. My cash is a reserve in case the bank freezes the line.
8:52 PM [David_V] thought it was barefoot summye?
8:52 PM [Penny] Roger and Mike you guys are sooooo much alike! Even if the Brit and Mountain boy can’t admit it!
8:52 PM [Roger_Dawson] Used to be barefoot but now he’s got a pair of shoes there’s no stopping him’
8:52 PM Sermiex has left the chat.
8:52 PM Sermiex has joined the chat.
8:52 PM [Penny] Doug, maybe we can say we do oneday!
8:52 PM [David_V] Mike has that happened to you before? them freezing the line?
8:52 PM [Mike_Summey] Banks have problems also and this occasionally causes them to freeze credit lines and call real estate loans.
8:53 PM [Bruce] Mike, understood
8:53 PM [Shane] Good night everyone, got to leave a little early
8:53 PM Shane has left the chat.
8:53 PM [Doug_in_CT] We do What Penny?
8:53 PM [Roger_Dawson] I think she’s proposing Doug!
8:53 PM [Doug_in_CT] How much property does she have?
8:54 PM [Mike_Summey] David, yes! Nationsbank, now Bank of America, did that following their acquisition of a Texas bank that had…
8:54 PM [Roger_Dawson] That’s ruthless. I love it.
8:54 PM [David_V] so when are you guys gonna be speaking near Richmond VA?
8:54 PM [Mike_Summey] tons of bad real estate loans.
8:54 PM [Penny] maybe we can say we have the money one day!
8:55 PM [Doug_in_CT] OK– I get it , I will put the tux away.
8:55 PM [Mike_Summey] David, when you get your local real estate investment club to bring us there.
8:55 PM [Penny] cute Doug
8:55 PM [David_V] I havn’t joined the local club yet.
8:55 PM [Roger_Dawson] Richmond isn’t on the convention circuit for me but I have spoken there twice. Nice art museum.
8:56 PM [David_V] I’m hesitant.
8:56 PM [Mike_Summey] David, Why?
8:56 PM [Doug_in_CT] We are seeing lots of Bank of America signs go up around here–All of our Fleet Banks have turned to Bank of American.
8:56 PM [David_V] Art museum is good here. Richmond has a lot to offer.
8:56 PM [David_V] Hesitant….I guess I’m leary of too many con artists….I’m always suspicious.
8:57 PM [Mike_Summey] Doug, during the period when they were awash in bad real estate loans, BOA refused to rened 29 of my loans.
8:57 PM [Doug_in_CT] Very good quality David in a LandLord.
8:57 PM [Mike_Summey] In spite of the fact that I had never been a day late in over 10 years.
8:57 PM [Bruce] Mike Youstated you send your bankers monthlystatements doyou send your bankers only their loans? Oryour entire portfolio of RE
8:58 PM [David_V] Ohhh…like the rest of you here, I have tenant nightmare stories.
8:58 PM [Doug_in_CT] I will keep my distance.
8:58 PM [Mike_Summey] It wasn’t my fault, it was simple a problem the bank had to correct to keep in complaince with the Feds.
8:58 PM [Mike_Summey] Bruce, I send the entire portfolio.
8:58 PM [Roger_Dawson] David, tenant problems are the biggest reason people quit investing. Get a manager!
8:59 PM [Bruce] Mike, what do you include on your monthly report?
8:59 PM [David_V] I intend to get a manager
8:59 PM Rob_FL has left the chat.
8:59 PM [Mike_Summey] Treat tenant problems the same as you would any other unexpected business expense.
8:59 PM Rob_FL has joined the chat.
8:59 PM [Mike_Summey] Reserve for it and move on.
8:59 PM [David_V] Here’s a question. if you use a manager can you still take the active participation for taxes?
9:00 PM [Doug_in_CT] Good advice Mike….hard to swallow sometimes.
9:00 PM [Mike_Summey] David, I don’t think so, but you can take the management fee.
9:00 PM [David_V] oh, mike you don’t have to convince me. HAvn’t made a dime on the rental …repairs are flat against the income, but the house
9:00 PM [David_V] is worth 45 grand more than I paid for it.
9:01 PM [David_V] and at tax time….it’s really nice to have.
9:01 PM [Roger_Dawson] Takes a long time to save 45 grand from wages
9:01 PM Jim_FletcherNC has joined the chat.
9:01 PM [Mike_Summey] David, the cash flow will come as the debt pays down and the rents go up. It’s a game of patience.
9:01 PM [Mike_Summey] Hi Jim
9:01 PM [Roger_Dawson] Hi Jim, where you been?
9:01 PM [David_V] yeah…it sure does
9:01 PM [Jim_FletcherNC] Hello fellow investors
9:01 PM [Ralph_Roberts] hi Jim
9:01 PM [Doug_in_CT] Hello Jim
9:01 PM [Jim_FletcherNC] I was at Bible Study
9:01 PM [Mike_Summey] Been to Cancun again, Jim.
9:01 PM [Jim_FletcherNC] Hello all
9:01 PM [Doug_in_CT] Good place to be Jim.
9:02 PM [Bruce] Hello Jim
9:02 PM [Jim_FletcherNC] I have a question
9:02 PM [Penny] yes but David, breaking even is still good. Next year rent rate will go up and you’ll have cash flow. Mike and Roger say its oka
9:02 PM [Doug_in_CT] A lot of the good advice in the Weekend Millionaire is lifted right out the the Bible.
9:02 PM [Roger_Dawson] What about rich man through the eye of a needle?
9:03 PM [Mike_Summey] You finally figured it out Doug.
9:03 PM [David_V] well…..I have some cash flow, just not much….enough that I can afford the repairs and maintenance.
9:03 PM [Mike_Summey] David, that’s adequate in the beginning.
9:03 PM [Bruce] Roger, that could be a heart issue, not cash issue
9:03 PM [Penny] lifted right out of the Bible, not from the preacher on the steet corner
9:03 PM [David_V] and on paper I have “networth”
9:03 PM [Mike_Summey] Roger doesn’t like the fact that I put that line in the new book.
9:04 PM [Jim_FletcherNC] I talked to my accountant… he told me that there are a lot of “ta traps” when putting properties into LLCs.
9:04 PM [Mike_Summey] Such as Jim?
9:04 PM [Bruce] Jim, an examples?
9:04 PM [Roger_Dawson] Shouldn’t steal stuff from the Bible. Jesus will sue you.
9:04 PM [Jim_FletcherNC] He advised me not to put my investment properties into LLCs. This is against what MANY people have told me….
9:04 PM [Jim_FletcherNC] What is your take…. ANYBODY
9:04 PM [Bruce] Put it in LLC’s
9:05 PM [Mike_Summey] If the property is in a single member LLC, it is treated on your tax return as if you owned it personally.
9:05 PM [Doug_in_CT] He doesn’t recommend taking folks to court Roger…He tells us to turn the other cheek.
9:05 PM [Penny] Thanks everyone. Have to run. See you all next week, I hope.
9:05 PM [Ralph_Roberts] good night, Penny!
9:05 PM [Penny] TaTa for now!
9:05 PM [Bruce] goodnight Penny
9:05 PM [Penny] Night Raph, and I relly do like the new chat prgram
9:05 PM [Sermiex] Goodnight Penny!
9:05 PM [Mike_Summey] goodnight Penny
9:06 PM [Bruce] Mike, is it covered in your book what you send to the banker each month?
9:06 PM [Penny] night Bruce, Sermiex, and last, but not least Mike, Roger, and all.!
9:06 PM [Mike_Summey] Jim, why does he advise you not to put it in LLCs?
9:06 PM [Roger_Dawson] Night Penny
9:06 PM [hazel] What about LLC,S if you have a partner
9:06 PM [Jim_FletcherNC] I think my accountant (who is in Calif, Roger) is a little fuzzy on thepros and cons of putting properties into LLCs.
9:06 PM [David_V] Roger, .mike reccomended forclosures.com. Do you have any other reccomendations for information to work the foreclosure angle?
9:07 PM [Mike_Summey] hazel, if you have partners, you have to file a tax return for the LLC and send the partners a 1099.
9:07 PM [David_V] partners in LLC could be just me and my wife, correct?
9:07 PM [Roger_Dawson] David, I don’t have specific recommendations. Do a search on Amazon.com
9:08 PM [Mike_Summey] Jim, contact Gary Mathes at Dixon Hughes. Tell him I sent you.
9:08 PM [David_V] ok, thanks
9:08 PM [Bruce] Jim, you might want to talk to another accountant who handles RE. A RE Tax attorney is a good place to go as well
9:08 PM [Roger_Dawson] Thanks everyone, got to run now
9:08 PM Roger_Dawson has left the chat.
9:08 PM [Jim_FletcherNC] My acct does returns for all kinds of people. I don’t think he is really up on Real Estate.
9:08 PM [Mike_Summey] Roger has been sick all day.
9:09 PM [Doug_in_CT] How do you know Mike… Is he in your neck of the woods?
9:09 PM [Mike_Summey] I spoke with him on the phone this morning and he sounded terrible.
9:09 PM [Jim_FletcherNC] By single-member LLC, is that an LLC that is in my name only, or canit be in both mine and my wife’s name as organizing members?
9:10 PM [Jim_FletcherNC] What’s wrong with Roger? the flu?
9:10 PM [Mike_Summey] Jim, I’m not sure about that, but I think if you and your wife file jointly, it is still treated as a single member.
9:11 PM MarkNC has left the chat.
9:11 PM [Ralph_Roberts] good night, David.
9:11 PM [Doug_in_CT] Send her over here when she is done.
9:11 PM [David_V] night
9:11 PM [Bruce] Jim, yes
9:11 PM [Mike_Summey] Goodnight DAvid.
9:11 PM [David_V] Thanks again Mike.
9:12 PM [Jim_FletcherNC] Mike, have you flown the KingAir any lately?
9:12 PM [Mike_Summey] Jim, I think I will close on the King Air Thursday. Haven’t flown it yet.
9:12 PM David_V has left the chat.
9:13 PM [Mike_Summey] I have to go to SimCom first.
9:13 PM [Bruce] Jim, you can have as many props. as you want in the LLC.
9:13 PM [Jim_FletcherNC] I just wish I could strap you into the back seat of a two-seat F-16… I could really roll your socks down around your ankles…
9:13 PM [Jim_FletcherNC] Thanks, Bruce….
9:13 PM [Jim_FletcherNC] Is SimCOm close by, Mike?
9:14 PM [Mike_Summey] Jim, I have 65 properties in one of my single member LLCs
9:14 PM [Jim_FletcherNC] OK, Mike… thanks
9:14 PM [Mike_Summey] Orlando
9:14 PM [Jim_FletcherNC] I see…
9:14 PM [Mike_Summey] Insurance is going to make me go once a year.
9:14 PM [Jim_FletcherNC] Did Roger leave?
9:15 PM [Mike_Summey] Yeah, he’s gone.
9:15 PM [Doug_in_CT] Yeah it was a quit exit….
9:15 PM [Bruce] Mike, do you have a limit on how many props. you’ll put into an LLC because of the potential liability downstream?
9:15 PM [Jim_FletcherNC] I was going to ask him if he knew of any “tax traps”, an my acct called them with Calif LLCs.
9:16 PM [Mike_Summey] Bruce, No, but I should. I will probably move some of the ones from the larger LLC this year.
9:16 PM [Jim_FletcherNC] Anybody in the room have LLCs in the People’s Republic of California????
9:16 PM [Mike_Summey] Jim, your properties are in Calif, right?
9:16 PM [Sermiex] Mike, are all your properties in one state?
9:16 PM [Bruce] My atty. advised less than 10 per LLC. But of course, he gets paid more for every LLC
9:17 PM [Jim_FletcherNC] SOME of my properties are in Claif
9:17 PM [Mike_Summey] Sermiex, North & South Carolina
9:17 PM [Jim_FletcherNC] Calif*
own them?
9:18 PM [Jim_FletcherNC] Mike, consider yourself lucky…. It colst only $125 per LLC here…. It is $850 per LLC in Calif
9:18 PM [Mike_Summey] Or set up NC LLCs to own the CAlif properties.
9:18 PM [Mike_Summey] Jim, I believe a NC LLC canown property in Calif.
9:18 PM [Bruce] Less expensive with the same end result is much better
9:18 PM [Jim_FletcherNC] I am no tax expert… but here is a tip I got from a tax advisor
9:19 PM [Jim_FletcherNC] set up as many LLC as you want/need to hold your real estate holdings
9:19 PM [Bruce] If NC doesn’t, you might want to check Delaware and Nevada. Very popular states for LLC’s
9:19 PM [Jim_FletcherNC] then, create a “top tier” or “top shelf” LLC to put all the other LLCs into
9:20 PM [Mike_Summey] What is the purpose Jim?
9:20 PM [Jim_FletcherNC] then, you only need to file ONE RETURN, on the TOP SHELF LCC (Check with your acct to MAKE SURE THIS IS LEGIT)
9:20 PM [Mike_Summey] It all depends on what you are using the LLCs for.
9:20 PM [Bruce] Jim, If you do it that way, someone could still sue you for your entire portfolio
9:21 PM [Jim_FletcherNC] Bruce, Like I said, I am no expert. However, if they want it bad enough, and somebody is willing to sepnd enough on an atty
9:21 PM [Jim_FletcherNC] they may get it
9:21 PM [Bruce] I’m not an atty. but that is what I’ve been advised. Check with your atty. to verify
9:21 PM [Jim_FletcherNC] Life is tough all over
9:22 PM [Mike_Summey] Jim, I find it much easier to just carry a large liability umbrella policy
9:22 PM [Jim_FletcherNC] However, I do think it is wise to put properties into LLCs
9:22 PM [Jim_FletcherNC] Mike, That is wise too (having a large umbrella policy)
9:22 PM [Bruce] Mike, do you carry both on specific RE? Or do you have some in an LLC, the others under the umbrella policy?
9:22 PM [Mike_Summey] I think LLCs serve a better purpose for estate planning that for liability protection.
9:22 PM Penny has left the chat.
9:23 PM [Jim_FletcherNC] Estate planning is very important
9:23 PM [Doug_in_CT] Mike, ever look into Trusts for estate planning?
9:23 PM [Mike_Summey] Bruce, the umbrella policy is insurance, not a way to hold real estate. It protects me, the LLCs and all.
9:24 PM [Mike_Summey] Doug, yes. I use trusts for several things, but not to hold the real estate.
9:24 PM [Jim_FletcherNC] The thing is to find somebody who is knowledgeable about trusts and estate planning to guide you
9:24 PM [Bruce] Mike, understood, some investors I know do one or the other.
9:24 PM [Doug_in_CT] What kind of “several things” Mike?
9:25 PM [Jim_FletcherNC] You can specify in a will to have properties left out of a trust until the time of your death.
9:26 PM [Mike_Summey] Trusts to own life insurance, to protect children’s inheritance, etc.
9:26 PM [Mike_Summey] Living trusts to hold assets to bypass probate.
9:26 PM [Jim_FletcherNC] It is an area most people (me included) do not know much about
9:27 PM [Jim_FletcherNC] Probate …. bad, bad thing
9:27 PM [Mike_Summey] Or me either, JIm. I have good estate planning attorneys and CPAs that I listen to for advice.
9:27 PM [Bruce] Jim, agree, agree
9:27 PM [Doug_in_CT] Yeah a whole field of study when you want to think about passing it on…
9:27 PM [hazel] sounds like the best thing to do is find a good tax and real estate attorney
9:28 PM [Jim_FletcherNC] Mike, what model KingAir did you get?
9:28 PM [Mike_Summey] hazel, you finally had a brilliant thought…thanks!
9:28 PM [Jim_FletcherNC] Good advisors pay for themselves
9:29 PM s.
[Jim_FletcherNC] I think the E-90 looks hotter than the 200
9:29 PM rmcmillian has joined the chat.
9:29 PM [Mike_Summey] Hi mcmillian
9:30 PM [rmcmillian] Hi Mike! Though I’d be lucky if I could listen in on the tail end of tonights chat seession
9:30 PM [Jim_FletcherNC] Hazel is right about the hard part… it is hard lately to find properties where the numbers work… need to be persistent
9:30 PM [Mike_Summey] It has good range. The one I bought has the full Raisbeck modification package.
9:30 PM [hazel] No , I just bought your book last week
9:30 PM [Bruce] and patient
9:30 PM [Jim_FletcherNC] Raisbeck wing mod?
9:30 PM [Jim_FletcherNC] or engines?
9:30 PM [Mike_Summey] hazel, see I told you you were smart.
9:30 PM [Jim_FletcherNC] LOL
9:30 PM [Mike_Summey] 
9:31 PM [hazel] lol
9:31 PM [Mike_Summey] Both
9:31 PM [Jim_FletcherNC] WOW
9:31 PM [Jim_FletcherNC] What, about 185 Knots True?
9:31 PM [Mike_Summey] 4 Blade props, exhaust farings, wing lockers, strakes, etc.
9:31 PM [Jim_FletcherNC] or more like 220
9:31 PM [Mike_Summey] 230-240
9:31 PM [Jim_FletcherNC] Great!
9:32 PM [Jim_FletcherNC] it will really hum along
9:32 PM [Mike_Summey] Range is great. I had one before that I flew non-stop from Palm Springs, CA…good tailwind though.
9:32 PM [Jim_FletcherNC] See, folks… your motivation to do well in realestate investing is that you won’t ever have to wait in lines at the airport
9:33 PM [Jim_FletcherNC] Mike just bought his own airplane
9:33 PM [Jim_FletcherNC] and a nice one to boot!
9:33 PM [Bruce] Mike, any thoughts on where interest rates will by in Dec. 05?
9:33 PM Rob_FL has left the chat.
9:33 PM [Mike_Summey] Jim, let me sell you the Duke. It would make a good plane for you.
9:33 PM [Jim_FletcherNC] LOL
9:33 PM [Jim_FletcherNC] You would have to give me really good terms!!!
9:34 PM [Mike_Summey] Bruce, hold on a minute. I left my crystal ball upstairs.
9:34 PM [Jim_FletcherNC] would you amortize it over 125 years?
9:34 PM [Jim_FletcherNC] at a low interest rate?
9:34 PM [Bruce] yeah, yeah
9:34 PM David_Oro has left the chat.
9:34 PM [Mike_Summey] Jim, sure with a 99% down payment.
9:34 PM [Mike_Summey] I’d finance the balance at 0% interest.
9:34 PM [Jim_FletcherNC] oh, geee! how generous…. lol
9:35 PM [Mike_Summey] Anything is possible.
9:35 PM Bryant has left the chat.
9:35 PM [hazel] interesting first time in the chat
9:35 PM [Jim_FletcherNC] Where are you going to put the heart you cut out of my chest?
9:35 PM [hazel] see you next time
9:35 PM [Jim_FletcherNC] lol
9:35 PM [Mike_Summey] Well floks, I’m going to have to go. It’s past my bedtime.
9:35 PM [Ralph_Roberts] good night, hazel… thanks for dropping by.
9:35 PM [Bruce] by Hazel
9:35 PM [Mike_Summey] folks
9:35 PM [Mike_Summey] sorry
9:35 PM [Jim_FletcherNC] Thanks, again all…. great chat… good points
9:35 PM [Mike_Summey] Goodnigh all.
9:36 PM [Bruce] good night
9:36 PM [Doug_in_CT] Good night Mike. Thanks for the good info and in the inspiration to pull me out of the February Blahs.
9:36 PM [Jim_FletcherNC] I would love to see you KingAir sometime Mike
9:36 PM [Sermiex] Goodnight Mike
9:36 PM [Mike_Summey] Stay and chat as long as you like.
9:36 PM [Ralph_Roberts] chat transcript will be posted shortly.
9:36 PM hazel has left the chat.
9:36 PM [Jim_FletcherNC] Goodnight Mike and everyone else too
9:36 PM Doug_in_CT has left the chat.
9:36 PM rmcmillian has left the chat.
9:36 PM [Mike_Summey] Jim, I’ll take deliver in late March.
9:36 PM [Bruce] Jim, own anything in Tenn?
9:36 PM [Mike_Summey] goodnight
9:36 PM [Jim_FletcherNC] No, i don’t bruce
9:36 PM Mike_Summey has left the chat.
9:36 PM [Sermiex] Good night all - Great Chat!
9:37 PM [Bruce] ok, good night
9:37 PM [Jim_FletcherNC] I have properties in Calif and North Carolina
9:37 PM [Jim_FletcherNC] How about you bruce?
9:37 PM [Bruce] Tenn. only
9:37 PM Sermiex has left the chat.
9:37 PM [Jim_FletcherNC] where are you in tenn?
9:37 PM [Bruce] Nashville
9:37 PM [Jim_FletcherNC] ok
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