Chat 2-7-2005
Posted on February 7, 2005
02/7/05 19:59:27 Ralph_Roberts: hi Roger!
02/7/05 20:00:09 Roger_Dawson: Hi Ralph!
02/7/05 20:00:41 Ralph_Roberts: New chat software is mighty fine.
02/7/05 20:01:35 Ralph_Roberts: hi Mike!
02/7/05 20:01:46 Mike_Summey: The eagle has landed!
02/7/05 20:01:52 Ralph_Roberts: how was it?
02/7/05 20:02:02 Mike_Summey: Great!
02/7/05 20:02:13 Ralph_Roberts: is it being painted now?
02/7/05 20:02:28 Mike_Summey: Looks like it’s just us chickens at the moment!
02/7/05 20:02:53 Ralph_Roberts: yep, but there were a bunch of people on the site when I came in
02/7/05 20:03:00 Mike_Summey: :>
02/7/05 20:03:13 Ralph_Roberts: 14 now
02/7/05 20:03:13 Mike_Summey: Where are they?
02/7/05 20:03:34 Ralph_Roberts: Hi Mark!
02/7/05 20:03:48 MarkNC: Hi Mike, Palph
02/7/05 20:04:03 Mike_Summey: I got a message from Al Lee about last week’s chat. He said there weren’t but a couple of people in the chat and Roger & I weren’t there. I wonder where he was.
02/7/05 20:04:05 MarkNC: I mean Ralph, and you to Roger
02/7/05 20:04:07 Mike_Summey: Hi Mark
02/7/05 20:04:12 Mike_Summey: Hi Penny
02/7/05 20:04:15 Ralph_Roberts: hi Penny!!!!
02/7/05 20:04:22 Penny: Hi mike and Ralph!
02/7/05 20:04:31 Ralph_Roberts: Penny is :>
02/7/05 20:04:37 MarkNC: Hi Penny
02/7/05 20:05:01 Penny: Thats pretty neat Ralph!
02/7/05 20:05:01 Mike_Summey: This new chat program is going to take a bit of getting used to.
02/7/05 20:05:12 Mike_Summey: roger Dawson
02/7/05 20:05:14 Penny: Hi Mark
02/7/05 20:05:20 Mike_Summey: Hi Craig
02/7/05 20:05:23 Ralph_Roberts: Mike Summey
02/7/05 20:05:27 Craig: hi Mike! 
02/7/05 20:05:42 Roger_Dawson: I’ll bet you that Al Lee was in a different room in the chat.
02/7/05 20:05:53 Mike_Summey: Hi Bruce
02/7/05 20:05:54 Penny: Oh whow, how are you guys inserting the pictures?
02/7/05 20:06:02 Bruce: Hi Mike
02/7/05 20:06:05 Mike_Summey: Wouldn’t you like to know.
02/7/05 20:06:11 Ralph_Roberts: I’ve only activated one room so far, Roger … but we can have many more
02/7/05 20:06:34 Mike_Summey: Ralph, could Al have gotten in the wrong room last week?
02/7/05 20:06:44 Ralph_Roberts: Penny, ;>
02/7/05 20:06:50 Mike_Summey: Hi Sermieux
02/7/05 20:06:54 Ralph_Roberts: hi Sermiex
02/7/05 20:07:11 MarkNC: Mike I have a brother in law that is considering moving to the Black Mountain-Swananoa area. What is real estate like around there?
02/7/05 20:07:14 Penny: cool
02/7/05 20:07:16 Ralph_Roberts: Mike, shouldn’t have been able to… last week was only one room
02/7/05 20:07:22 Sermiex: Hi All!
02/7/05 20:07:36 Ralph_Roberts: also
02/7/05 20:07:36 Bruce: Hi Sermiex
02/7/05 20:07:39 Mike_Summey: Mark, that is a good area. I own several properties in that area.
02/7/05 20:08:05 Penny: Hi Roger.
02/7/05 20:08:17 Mike_Summey: *choochoo*
02/7/05 20:08:25 Mike_Summey: Just playing around.
02/7/05 20:08:27 Roger_Dawson: Hi Penny!
02/7/05 20:08:38 Mike_Summey: *evil*
02/7/05 20:08:39 Penny: warm where you are?
02/7/05 20:08:44 Craig: lol@Mike!
02/7/05 20:08:53 Roger_Dawson: I’m in Palm Beach, where the money meets the sea!
02/7/05 20:08:54 Mike_Summey: Hi djdto
02/7/05 20:08:58 Penny: Mikes having fun tonight.
02/7/05 20:09:06 djdto: hi there…
02/7/05 20:09:11 Mike_Summey: Hi dobefan
02/7/05 20:09:35 dobefan: Hi everyone
02/7/05 20:09:43 Mike_Summey: Let’s get some questions going.
02/7/05 20:09:45 Ralph_Roberts: Tonight’s special guests: Mike Summey & Roger Dawson
02/7/05 20:09:55 djdto: cool…pictures.
02/7/05 20:10:07 dobefan: My first time here. What is the topic tonight?
02/7/05 20:10:08 Mike_Summey: Or, has anyone had a succes they would liek to talk aobut.
02/7/05 20:10:27 Mike_Summey: Any topic you want djdto
02/7/05 20:10:30 Mike_Summey: JD
02/7/05 20:10:48 Mike_Summey: Hi JD
02/7/05 20:10:54 dobefan: I am just beginning at this real estate opportunity.
02/7/05 20:10:57 Mike_Summey: Hi Rob
02/7/05 20:10:59 JD: HI
02/7/05 20:11:05 MarkNC: No real success but I made three offers this week, was laughes at for two of them, oh well, good luck to them.
02/7/05 20:11:11 Rob: Hi
02/7/05 20:11:33 Roger_Dawson: Congratulations Mark. That’s exactly the right approach.
02/7/05 20:11:33 dobefan: What do you think about new housing as investment property?
02/7/05 20:11:44 Sermiex: Mikew, Roger Could you talk about offers? Should we use a form, write our own, what about weasel clauses?
02/7/05 20:11:49 Craig: finally looked a couple of possibiloities for investment properties…………….
02/7/05 20:11:57 Mike_Summey: Mark, you’ll never lose money on an offer you get laughed at for making. You can on some that you don’t get laughed at for.
02/7/05 20:13:04 Mike_Summey: Sermiex, I use a version of the contract in Carleton Sheets Toolkit that is on this website. I took it and modified it to suit me. That’s what I use when I make offers.
02/7/05 20:13:16 Ralph_Roberts: Hi Matthew! Glad you could make it all the way from Louisiana!
02/7/05 20:13:32 Roger_Dawson: Sermiex, I’ve never worried too much about weasel clauses. If you put up a $500 deposit, that’s the extent of your potential loss in the event you decide to back out.
02/7/05 20:13:33 MarkNC: I know, I’m getting to where it doesn’t bother me anymore, although the realtor I was working with is moving to Charleston and his partner seems bothered by some of my offers. Maybe its time for a new realtor.
02/7/05 20:13:33 Mike_Summey: Hi MatthewTooTall, Your name is too long. Logout and come back as Matt
02/7/05 20:13:34 David_V: hey
02/7/05 20:13:42 Mike_Summey: Hi David
02/7/05 20:13:53 Craig: one needs only a few hundred dollars’ worth of work, the other needs AT least $10,000 worth of work so I’m staying away from that one…….
02/7/05 20:13:58 djdto: i have a question about calculating the value of a property based on noi. If i understand it correctly, if you take the yearly NOI and divide that by the an interest rate on your loan, does that tell you how much you can pay for a property? e.g. 10,000 monthly noi/ 5 percent interest = $200,000. Does this make sense?
02/7/05 20:14:01 Sermiex: Thanks Mike, I plan to get the Toolkit this week
02/7/05 20:14:11 djdto: sorry monthly NOI
02/7/05 20:14:54 Mike_Summey: Craig, the amount of work needed is not important if you allow for it in the purchase offer.
02/7/05 20:15:08 David_V: I had a good week . had two meetings with my partner to get our business going.
02/7/05 20:15:12 Sermiex: Thanks Roger - By the way - I got your set of tapes on Negotiating many years ago from Nightingale 0 they are great!!
02/7/05 20:15:27 Mike_Summey: Mark, the reason it bothers the realtos is because he/she is supposed to be getting you to offer full price.
02/7/05 20:15:40 Craig: true Mike……………but right now I don’t have much cash for investing, not to mention fixing things up……………
02/7/05 20:15:41 Roger_Dawson: Thanks sermiex, I knew somebody bought a set and I didn’t know who it was!
02/7/05 20:16:35 David_V: Oh, and I got my loan confirmed and a closing date set tonight.
02/7/05 20:16:36 Mike_Summey: Sermiex, eventually Raplh will have all of our audio products show up in the top right corner and you can just click on one if you want to purchase and then it will bring you right back to the chat.
02/7/05 20:16:56 Mike_Summey: Great David
02/7/05 20:17:12 MarkNC: Yeah, I know, but I finally had a guy that understood looking for investment properties and I hoped his partner would be the same but he’s not.
02/7/05 20:17:21 Mike_Summey: Hi Martin
02/7/05 20:17:30 Mike_Summey: Hi Dean
02/7/05 20:17:33 Bruce: Mike when buying apt. units, how do you account for vacancy? As an example, 34 units with 10 vacancies. Do you run your numbers on actual rent roll & Operating. expenses?
02/7/05 20:17:38 Martin: Hi Mike!
02/7/05 20:17:50 Dean: Hi everyone
02/7/05 20:18:00 Ralph_Roberts: Hi Dean
02/7/05 20:18:04 Sermiex: Thanks Mike - I’m ordering the Toolkit from this site
02/7/05 20:18:13 Mike_Summey: Bruce, I use a conservative market average for a vacancy factor when computing noi.
02/7/05 20:18:55 Mike_Summey: Sermiex, maybe Raplh will put the Toolkit in the corner occasionally.
02/7/05 20:19:30 Roger_Dawson: Bruce, I’d suggest a 3% to 10% vacancy factor depending on how many for rent ads there are in the classified section.
02/7/05 20:19:38 David_V: Roger and Mike, How do you handle routine maintenance like painting when you have long term tennants in a place. My tennants have been there going on 4 years. The place looks bad on the inside.
02/7/05 20:19:56 Bruce: Mike, Roger if a complex has that many vacancies, the area is good, what would be one way to negotiate great terms?
02/7/05 20:20:02 Sermiex: Mike, if he does I’ll get it tonight
02/7/05 20:20:27 David_V: I’m painting the outside this summer, but I noticed the paint is pealing from the bathroom ceiling. Don’t like that. But what do you do when you have people in the place?
02/7/05 20:20:40 Mike_Summey: David, if it’s time to paint, tell the tenants to move over while you get the work done. They will appreciate it. Mosto of the time; however, you can do the painting between tenants.
02/7/05 20:21:13 David_V: Well these tennants are probably gonna live there for a long time to come.
02/7/05 20:22:09 Mike_Summey: Bruce, if the seller will give you the vacancy numbers for the past year and they are more than what you would figuer, use theirs. A little market research will help you determine a reasonable vacancy factor.
02/7/05 20:22:09 Penny: Roger, would that 3-10% be based on the for rents in the potential purchase area or in general?
02/7/05 20:23:21 Mike_Summey: David, if it was their house, they would have to get out of the painters way. Since it’s not, they will still appreciate you wanting to keep it nice for them.
02/7/05 20:23:36 David_V: I can’t stand the place looking like that. First I think it looks like a crack den, and second it’s my investment.
02/7/05 20:24:12 David_V: thanks, I’ll give them a call and set it up so I can get the place painted.
02/7/05 20:24:20 Martin: Mike, I went to real estate auction on Saturday where a local real estate company was auctioning over 25 properties. After the winning bid thay added 10% to come up with the final selling price. Is that common- 10%? There was several properties that didi not bring minimum bid, so they didn’t sell.
02/7/05 20:24:34 Mike_Summey: David, I just did the same thing in one of my 4 unit buildings.
02/7/05 20:24:39 Sermiex: David, if your tenants are elderly they may need help with moving furniture
02/7/05 20:25:19 Ralph_Roberts: TIP: <--- remember, folks, you can make the chat full screen by clicking on the two little screen icons just to the left of the question mark below.
02/7/05 20:25:27 Mike_Summey: Martin, that is common. The 10% is the auctioneer’s fee. They should have explained that before the auction started.
02/7/05 20:25:35 Ralph_Roberts: makes it a LOT easier to read
02/7/05 20:26:13 David_V: Not elderly, but I was surprised they didn’t say something to me about that paint. it was all cracking and peeling. Never gonna let anyone use cheap paint again.
02/7/05 20:26:34 Mike_Summey: Yeah Ralph, that’s what I did. Click on the icon and then grab the corner of the window and enlarge it to fit the screen.
02/7/05 20:26:35 MarkNC: djdto I was looking back up at your question on NOI and I don’t think its correct. The NOI has to cover your mortgage payment so you want the price that gives that payment. Your example seems to give a much lower price. How long you wish to finance the property is also a consideration.
02/7/05 20:27:22 Mike_Summey: Hi Doug
02/7/05 20:27:22 David_V: I have another question. When you buy a place that needs work…do you have a special insurance agent? my regular insurance agent won’t cover a place till it’s been fixed up and I’m getting ready to buy some property that needs work.
02/7/05 20:27:27 Doug_in_CT: Hi Mike.
02/7/05 20:27:41 djdto: thanks, mark. i thought that didn’t sound right. i got it confused in my head. i guess as long as you can get the debt service to meet noi, it’s a good deal.
02/7/05 20:27:59 Ralph_Roberts: I got bounced but did not lose a character! This new software is NICE!
02/7/05 20:27:59 Mike_Summey: David, you should be able to obtain “builder’s risk” insurance in teh interim.
02/7/05 20:28:35 David_V: Builder’s risk ….I’m writing that down.
02/7/05 20:28:44 Mike_Summey: djdto, that’s correct. You can match the payment to the NOI by either adjusting the price or the interest rate.
02/7/05 20:28:56 MarkNC: djdto, of course in noi, I always include the return I want on any money I put in the property
02/7/05 20:29:29 djdto: marknc - Is that typically 10% for you? Do you ever make it less?
02/7/05 20:29:32 Mike_Summey: Ralph, it looks like people are being kicked out of the chat…including you. Is there a problem?
02/7/05 20:29:48 David_V: Thanks Mike. I really appreciate these gems. I’d have to read a dozen books to get the answer to some of these questions.
02/7/05 20:29:58 Ralph_Roberts: Don’t think so… just normal Internet traffic
02/7/05 20:30:22 Mike_Summey: Hi bsalus
02/7/05 20:30:36 MarkNC: I try 10% but will sometimes make an offer based on a lower percentage if I really like the proerty and feel the rents can go up.
02/7/05 20:30:40 Sermiex: Mike, Roger will we have an opportunity to get the new book before it’s released to stores?
02/7/05 20:30:59 Martin: Mike, the problem I see with auctions is that the seller is not getting fair mkt value and the buyers are buying because of the 10% fee. Are these auctions popular in other parts of the country?
02/7/05 20:31:08 Mike_Summey: Sermiex, not that I’m aware of. That is McGraw-Hills call.
02/7/05 20:31:14 Mike_Summey: Hi smason
02/7/05 20:31:22 Mike_Summey: Hi JJ
02/7/05 20:31:26 Bruce: Martin, Auctions are popular in Tenn.
02/7/05 20:31:27 JJ: Hey everyone
02/7/05 20:31:35 djdto: Do you guys have any thoughts on going into a deal with Negative Armotization loan? (Neg arm)?
02/7/05 20:31:35 David_V: Hey I just saw the link to amazon. Think I’ll reward myself for getting my business off the ground by buying a book and having it shipped straight here.
02/7/05 20:32:03 Ralph_Roberts: hi Steve
02/7/05 20:32:14 djdto: Neg ARM - Have you used it before? Good/bad experiences, etc?
02/7/05 20:32:22 Mike_Summey: Martin, auctions can occur for many reasons. Whether the seller gets fair market value or not is immaterial.
02/7/05 20:32:27 Steve: Hello everyone
02/7/05 20:32:28 bsalus: Sermiex, I found the book available directly from the publisher’s website as a beta book
02/7/05 20:32:55 Mike_Summey: djdto, stay away from them. Why would you want to pay for the privledge of owning a property?
02/7/05 20:33:23 Sermiex: bsalus - web address and is that OK with you Mike and Roger?
02/7/05 20:33:26 Martin: Mike, have you ever bought property at an auction?
02/7/05 20:33:59 Steve: I ran into an interesting situation this week…
02/7/05 20:34:08 JJ: mike, do you escrow taxes and insurance…or pay them directly yourself?
02/7/05 20:34:22 Doug_in_CT: Lay it on us Steve.
02/7/05 20:34:24 djdto: Thanks, Mike. Lots of mortgage brokers in California are offering Neg Arms. I just came across several offers from some lenders and was curious. You can’t really feel good about them once you know what they are about.
02/7/05 20:34:25 bsalus: I don’t have it with me right now… if I find it I will post
02/7/05 20:34:27 Mike_Summey: Sermiex, get the book where ever you like. It willnot be available until May 2005, so no one should be able to get it befor ethen…including Roger and me.
02/7/05 20:34:47 Sermiex: Gotcha!
02/7/05 20:35:04 Mike_Summey: martin, yes! There is a great story about on I bought in the Real estate book.
02/7/05 20:36:13 JJ: mike…do you escrow taxes and insurance, or pay them directly
02/7/05 20:36:15 Mike_Summey: JJ, never, never, never escrow taxes and insurance with a lender. My experience is that they often don’t pay on time and they get free use of your money in the mean time. I don’t escrow on any loans.
02/7/05 20:36:28 JJ: ok
02/7/05 20:36:32 Doug_in_CT: Yeah I remember the story, Mike offerred the bank a fair price and they said No way and then he bought it from them for less at the auction.
02/7/05 20:36:41 djdto: good question JJ. thanks for answering Mike.
02/7/05 20:36:59 Mike_Summey: djdto, I’d advise staying away fromany negative amortization loans.
02/7/05 20:37:02 Sermiex: That was a great story…
02/7/05 20:37:04 JJ: and Ive also heard they the lender doesnt even have to pay… they do it just as a courtesy
02/7/05 20:37:13 bsalus: http://books.mcgraw-hill.com/getbook.php?isbn=0071453350&template=
02/7/05 20:37:21 Kim-OH: Mike how does one not have to escrow taxes and insurance?
02/7/05 20:37:22 Mike_Summey: Hi Kim
02/7/05 20:37:31 Mike_Summey: Hi rich
02/7/05 20:37:40 richfasano: hi Mike
02/7/05 20:37:44 Kim-OH: Hi Mike
02/7/05 20:37:59 Sermiex: bsalus - thanks but I’ll pass right now - Mike and Roger will sign books for us when it comes out
02/7/05 20:38:42 JJ: anyone buy anything lately?
02/7/05 20:38:50 Kim-OH: Hi Ralph the chat looks fabulous
02/7/05 20:38:51 Mike_Summey: Kim, just refuse to let the bank hold your maoney. Of course if you are just getting started, they will try to require it in order to give you a loan.
02/7/05 20:38:56 Ralph_Roberts: thanks, Kim
02/7/05 20:39:18 Martin: Doug, that was a great story. If only I could find one of those deals!
02/7/05 20:39:23 Kim-OH: Mike yes I’m just getting started again and how can I convince them not to make me escrow?
02/7/05 20:39:24 David_V: MIke, do you get a better rate witht he insurer by paying them all at once?
02/7/05 20:39:27 smason: Yes, I just closed on a duplex and house and they said that was part of the loan…that they escrow
02/7/05 20:39:41 Mike_Summey: What happened to Roger?
02/7/05 20:39:41 Rob: Mike, now that you have so many properties and hefty monthly cash flow, do you buy your properties cash or do you still finance it with a bank?
02/7/05 20:39:56 Ralph_Roberts: Roger got lost?
02/7/05 20:39:58 Steve: Has anyone ever asked a seller for cash back at closing?
02/7/05 20:40:21 Mike_Summey: Kim, you may be at the lender’s mercy for the first few deals.
02/7/05 20:40:21 Kim-OH: wb Roger
02/7/05 20:40:35 Kim-OH: Thanks Mike I was afraid of that
02/7/05 20:40:37 JJ: I closed on a Triplex and Taxes and Insurance are escrowed, but on a SFH (4/2) and a Duplex, they are not…. and probably wont be for a 12 unit Im getting
02/7/05 20:40:41 Roger_Dawson: I’m back, had a major computer malfunction.
02/7/05 20:40:52 Mike_Summey: David, I’m not sure if paying my own taxes and insurance effects the rates I get.
02/7/05 20:41:05 DaveO: hey all sorry I am late
02/7/05 20:41:06 Kim-OH: Roger my major puter malfunctions are usually just me lol
02/7/05 20:41:17 Mike_Summey: Rob, I still finance all new purchases and then let the tenants buy the properties for me.
02/7/05 20:41:21 DaveO: Mike thanks for replying to my email last week
02/7/05 20:41:27 Roger_Dawson: Could be, I am a low tech guy stuck in a hi tech world.
02/7/05 20:41:35 Doug_in_CT: Roger…I think you got to negotiate a little better with that computer of yours. 
02/7/05 20:41:42 David_V: Well, I’m sure it doesn’t effect the taxes…but insurance is a businesss…..so maybe that would be a negotiable area.
02/7/05 20:41:44 Mike_Summey: Hi DavidO
02/7/05 20:41:48 Kim-OH: Roger I feel your pain as well
02/7/05 20:41:54 Sermiex: Mike, thanks for your response to me, too
02/7/05 20:41:55 smason: Does negotiating with your computer help?
02/7/05 20:42:14 Kim-OH: smason only with a baseball bat lol
02/7/05 20:42:24 Mike_Summey: The famous negotiator roger dawson
02/7/05 20:42:28 DaveO: You guys wrote a great book.. got me all fired up Went and did my week ! assignment this past weekend
02/7/05 20:42:34 JJ: mike do your property management companies pay your loans, or you do that and they do basically everything else?
02/7/05 20:42:47 DaveO: week 1 that is
02/7/05 20:42:56 David_CA_djdto: another good question jj
02/7/05 20:43:13 JJ: and do you have the utilities in your name or the Management Compnaies?
02/7/05 20:43:14 Mike_Summey: JJ, I pay my mortgages, taxes and insurance (the important things) and the property management firms pay the rest.
02/7/05 20:43:20 JJ: ok
02/7/05 20:43:29 Mike_Summey: JJ, in the management company’s name.
02/7/05 20:43:36 JJ: thats what Im donig too
02/7/05 20:43:38 JJ: k thanks
02/7/05 20:43:45 Bruce: Mike, do your property managers charge you for the ads they place in the paper? Or is that a cost of doing business for them?
02/7/05 20:43:52 Mike_Summey: Great DavidO
02/7/05 20:44:32 Sermiex: Shouldn’t the utilities be in the tanant’s name?
02/7/05 20:44:43 JJ: i guess it depends if they oay it or not
02/7/05 20:44:53 JJ: pay*
02/7/05 20:44:55 Bruce: Sermiex, yes
02/7/05 20:45:08 JJ: i think if theyre paying for them, then yes, if you are, then management company
02/7/05 20:45:10 Mike_Summey: Bruce, that is a part of what the management firm does to earn their fee. If they want you to pay for the ads, that should tell you that you need to look elsewhere. When they have to pay for the ad, it increases their incentive to keep the properties rented.
02/7/05 20:45:27 DaveO: Mike I came up with a question while I was driving around.. the part of town I thought would be good for rentals is near downtown, near the University.. nothing stays on the market long there, even though the homes are 50+ years old.. there are a lot of duplexes there… how do you feel about duplexes compared to sfr?
02/7/05 20:45:39 Ralph_Roberts: hi TT
02/7/05 20:45:51 TT: hi
02/7/05 20:45:53 JJ: more cash flow on multi’s
02/7/05 20:46:04 Kim-OH: Roger are you stuck in that revolving door lol
02/7/05 20:46:05 Doug_in_CT: That Roger can’t tell if he is coming or going.
02/7/05 20:46:13 Mike_Summey: Sermiex, the utilities are in the tenants name if they are responsible for paying them. I though you were talking about the utilities I pay on some of my apartments. Tenants pay on sfh.
02/7/05 20:46:23 Mike_Summey: Hi TT
02/7/05 20:46:32 Sermiex: Thanks Mike
02/7/05 20:46:36 TT: hi Mike
02/7/05 20:46:45 Mike_Summey: Roger is negotiating with his computer.
02/7/05 20:46:55 Roger_Dawson: And losing!
02/7/05 20:46:55 Doug_in_CT: And losing.
02/7/05 20:46:58 Bruce: I think the computer is winning.
02/7/05 20:47:02 Craig: lol@Roger!
02/7/05 20:47:08 smason: It must be a teenager
02/7/05 20:47:18 Rob: Mike/Roger, how do you buy your properties nowadays? Do you use a heloc, pay cash, take out a mortgage, etc.?
02/7/05 20:47:42 Mike_Summey: Rob, all of the above!
02/7/05 20:47:48 Sermiex: Heloc?
02/7/05 20:47:59 Craig: what’s a heloc?
02/7/05 20:48:06 Rob: home equity line of credit
02/7/05 20:48:12 Penny: home equity line of credit
02/7/05 20:48:14 Mike_Summey: Craig, “Home Equity Line of Credit”
02/7/05 20:48:24 Craig: oh I see………………
02/7/05 20:48:34 Mike_Summey: Penny has been sitting there all this time waiting to answer a question.
02/7/05 20:48:46 Mike_Summey: Beat me to it.
02/7/05 20:48:52 TT: Mike did you pursue that mh park near the flooding that you mentioned a few weeks ago?
02/7/05 20:48:54 smason: Does a heloc affect your fico when you first take it out since it can be maxed out initially?
02/7/05 20:48:56 JJ: Mike and ROger, what you think about this…Im getting a 12 unit building worth about 530K for about 380K…Im going to get a heloc on the equity and use it to fix up rundown properties I buy, then refinance those properties to pay back the heloc, and continue the cycle?
02/7/05 20:48:59 Penny: yes, thats something I learned in an earlier chat and remembered it! How about that!
02/7/05 20:49:12 JJ: rents below market for about 5K right now^
02/7/05 20:49:18 Mike_Summey: TT, It is still up in the air. I probably won’t know until about June.
02/7/05 20:49:38 DaveO: a heloc can effect your credit in the same way as a credit card
02/7/05 20:49:42 TT: why june?
02/7/05 20:50:03 smason: thanks, DaveO
02/7/05 20:50:08 Mike_Summey: smason, I believe that you fico is based on the amount of the loan whether you draw on it or not. It is still available.
02/7/05 20:51:01 DaveO: Mike not sure if you saw my question.. how do you feel about duplexes compared to sfrs?
02/7/05 20:51:08 Mike_Summey: Steve, when did you join us?
02/7/05 20:51:28 DaveO: for a first investment that is
02/7/05 20:51:37 Steve: Mike, earlier but so many people tonight that I have just been observing!
02/7/05 20:52:11 Mike_Summey: DaveO, duplexes are great; however, they do have a few differences from sfhs. Things like common area maintenance and often utilities.
02/7/05 20:52:12 Ralph_Roberts: “When I build something for somebody, I always add $50 million or $60 million onto the price. My guys come in, they say it’s going to cost $75 million. I say it’s going to cost $125 million, and I build it for $100 million. Basically, I did a lousy job. But they think I did a great job.” –Donald J. Trump
02/7/05 20:52:13 Penny: Hey Ralph, last week a harp sound came through if your name was included in a response, this week that is not happending and the harp sound is sounding when a new person sign on.
02/7/05 20:52:37 Ralph_Roberts: Penny, it should be a beep if your name is included in the comment
02/7/05 20:52:53 Ralph_Roberts: and a different color
02/7/05 20:53:12 Penny: Okay, gottcha, I just noticed that for the first time just now.
02/7/05 20:53:13 Doug_in_CT: I didn’t know you had that kind of muscle Ralph!
02/7/05 20:53:17 Mike_Summey: Ralph is still programming on the chat. Next week, a dog may bark if your name is in the text.
02/7/05 20:53:21 Penny: that works.
02/7/05 20:53:21 Ralph_Roberts: yep
02/7/05 20:53:32 DaveO: Mike the part of Salt Lake that is really desireable for rentals has a lot of duplexes, which seem to have a better cost/rent ratio that the comparable sfrs , thats why I asked
02/7/05 20:53:40 Kim-OH: rotflmao
02/7/05 20:53:58 Steve: Mike, are you often approached to partner on investment opportunities?
02/7/05 20:54:03 Penny: Ralph, great job on the new chat format. Really like it.
02/7/05 20:54:09 Mike_Summey: DavO, just be sure you factor in the added expenses when computing the noi.
02/7/05 20:54:16 Ralph_Roberts: thanks, Penny
02/7/05 20:54:29 Penny: gotta run now though. Need to have a little dinner.
02/7/05 20:54:35 Penny: night everyone.
02/7/05 20:54:42 Kim-OH: night Penny
02/7/05 20:54:43 Ralph_Roberts: see you later, Penny
02/7/05 20:54:43 Doug_in_CT: See ya Penny.
02/7/05 20:54:46 MarkNC: good night Paenny
02/7/05 20:54:48 Sermiex: Good night Penny…
02/7/05 20:54:54 Mike_Summey: Steve, yes, quite frequently, but I don’t do partnerships. I’ve never had an investor or a partner. I’m sort of a lone eagle.
02/7/05 20:55:00 Ralph_Roberts: “Not a flock of wild geese cackles over our town, but it to some extent unsettles the value of real estate here, and, if I were a broker, I should probably take that disturbance into account.” — Henry David Thoreau
02/7/05 20:55:02 Mike_Summey: Night Penny
02/7/05 20:55:08 DaveO: I will.. I’m going to be very careful.. I am a mortgage broker and it is amazing how many people get themselves in trouble with poorly thought out real estate investments
02/7/05 20:55:51 Martin: Mike,
02/7/05 20:55:52 Mike_Summey: DaveO, you are right about that.
02/7/05 20:55:55 DaveO: then want me to refinance them to get them out of foreclosure
02/7/05 20:56:15 Doug_in_CT: I am having a little trouble renting a two bedroom apartement at the moment. I think the market is softening.
02/7/05 20:56:21 Kim-OH: Dave what percentage can you get refi’ed?
02/7/05 20:56:42 DaveO: what percentage of what?
02/7/05 20:56:44 Steve: Mike, I feel the same way. But this week my attorney mentioned a 24 unit deal he is working on but can’t finance alone. It cash flows heavily, but I am sceptical about going in with someone else.
02/7/05 20:56:59 Kim-OH: Dave of the folks facing foreclosure who come to you
02/7/05 20:57:16 Mike_Summey: Doug, I don’t know about your market, but here in Western North Carolin the rental market was very soft over the past couple of years, but it seems to be coming back now.
02/7/05 20:58:03 DaveO: not many.. generally if someone is in foreclosure already they can borrow around 65% LTV and most of them don’t have that kind of equity
02/7/05 20:58:05 Doug_in_CT: We used to be able to place an ad and get a tennant, but now we have placed three or four weeks of adds, no tennant yet.
02/7/05 20:58:15 JJ: mike you have someone make all your important payments (piti) and look over the monthyl repiorts or you still do it all yourself? use QuickBooks or anything?
02/7/05 20:58:22 Kim-OH: Dave yup that’s what I see here in my area
02/7/05 20:58:23 Martin: Mike, did you take ownership of your King Air yet?
02/7/05 20:58:26 Mike_Summey: Steve, you need to make that call yourself. If you feel comfortable with parteners, that’s one thing. The reason I don’t have partners is because I don’t think I would be a very good one for someone else.
02/7/05 20:58:35 David_V: I think with the combination of prices jumping recently and the interest rates moving up in the next year or two the rental market should firm up
02/7/05 20:58:49 Bruce: Dave, can you finance 100% if the deal qualifies. As an example, house is worth 200K, it can be bought for 100K. Are you seeing banks lend 100K? Or do they need to see some money in the deal?
02/7/05 20:58:59 MarkNC: Mike you should be in Boone, students everywhere looking for a house to rent, only problem is finding a place that can cash flow
02/7/05 20:59:10 Steve: Thanks Mike. It’s all about gut feel I guess…
02/7/05 20:59:35 Mike_Summey: JJ, I do the important things myself. I use Quicken Home and Business because no one else is working with it. If I was going to have someone else do it I would use Quickbooks.
02/7/05 21:00:09 DaveO: most lenders will only loan on a percentage of purchase price, regardless of how much the propery apprasies for. so you would only be able to borrow on the 100,000 price, then you could refinance using the 200k 6 months to a year later depending on the lender, if that makes sense
02/7/05 21:00:22 Bruce: Steve, if I went in with an atty., I’d have outside cousel help me put the partnership together.
02/7/05 21:00:48 Bruce: DaveO, yes, it makes sense.
02/7/05 21:00:50 Steve: I just switched from Quicken to Microsoft Money. I don’t know which one is better yet.
02/7/05 21:01:01 Steve: Good point, Bruce
02/7/05 21:01:05 DaveO: most lenders wont use an apprasied value until youve had it a year, but a few will do it in 6 months
02/7/05 21:01:22 DaveO: which is kinda stupid really, you get punished for getting a good deal
02/7/05 21:01:32 Kim-OH: Dave indeed
02/7/05 21:01:34 Mike_Summey: martin, I closed today. I flew it to Aiken, SC and back to Asheville. I got in one day and one night landing.
02/7/05 21:02:05 Bruce: DaveO, or find a lender that doesn’t have a clause stating you can’t re-fi immediately.
02/7/05 21:02:33 David_V: I thought there was a certain amount of “seasoning” required by law in most places
02/7/05 21:02:35 JJ: mike why dont u like section 8
02/7/05 21:02:59 Mike_Summey: Bruce, you can finance 100% if you approach it correctly. There is an example of this in the book.
02/7/05 21:03:06 Martin: Congratulations Mike!! A King Air is my dream airplane, is it a dream to fly?
02/7/05 21:04:03 DaveO: yeah im going to try to but my first property 100%.. offer get a loan for 60% and an seller carryback for 40%.. see how I do with that
02/7/05 21:04:07 Mike_Summey: JJ, I’ve just never had good experience with Section 8. Some people ahve, but not me.
02/7/05 21:04:13 Mike_Summey: Hi jfinger.
02/7/05 21:04:18 Mike_Summey: Where have you been?
02/7/05 21:04:18 JJ: ok
02/7/05 21:04:32 DaveO: my wife is my realtor and she doesn’t think I can do it, but I know there is someone out there who wants to sell me their house that way
02/7/05 21:04:55 David_V: Your wife just hasn’t seen it done.
02/7/05 21:05:06 Mike_Summey: daveo, it’s easier to get a 40% loan with 60% owner financing.
02/7/05 21:05:14 DaveO: I may fire her
02/7/05 21:05:20 David_V: hah.
02/7/05 21:05:20 Kim-OH: Mike I like the way you think
02/7/05 21:05:42 Steve: DaveO, my realtors say the same thing but it’s all a numbers game. The more offers you make that work for you, the better your chances of getting a “Yes”
02/7/05 21:05:57 JJ: mike do the tenants pay you then you pay the manager, or rent goes to manager, then they cut out their %, then oay u
02/7/05 21:06:04 JJ: pay u*
02/7/05 21:06:16 DaveO: thats my plan.. she worries about offending a seller.. ill have my real estate licence in a few weeks though then ill do it myself
02/7/05 21:06:35 Rob: DaveO, how hard was the test(s) to ge a license?
02/7/05 21:06:44 JJ: getting a lisence is easy
02/7/05 21:06:48 JJ: license*
02/7/05 21:06:53 bsalus: Mike how many realtors do you work with? how many of your deals come through them?
02/7/05 21:06:56 Mike_Summey: Most people are afraid to make offer that aren’t conventional. That’s why they get frustrated and buy very little. I’ve learned that nothing is possible unless you ask.
02/7/05 21:07:07 Kim-OH: Mike that’s s true
02/7/05 21:07:15 DaveO: the test is the easy part.. the 90 hours of school you have to take while working full time is the hard part
02/7/05 21:07:30 JJ: take the online class
02/7/05 21:07:33 Kim-OH: mike the first deal I did was a doozy and I had to ask for a lot of things from a lot of people
02/7/05 21:07:36 DaveO: you cant in utah
02/7/05 21:07:36 JJ: its being offered now
02/7/05 21:07:43 Steve: I have heard that being a realtor and an investor can be a conflict of interest. Any truth to that?
02/7/05 21:07:47 DaveO: you have to actually take the classes live here
02/7/05 21:08:08 Mike_Summey: bsalus, most of my deal now are through realtors. I have one or two I work with more extensively, but I’m willing to work with anyone who can help me make a deal.
02/7/05 21:08:34 Bruce: DaveO, weekend Millionaire, take the classes on the weekend.
02/7/05 21:08:36 DaveO: as far as I know the only problem is if you dont disclose you are a licensed realtor
02/7/05 21:08:38 Mike_Summey: DaveO, why do you want to be licensed?
02/7/05 21:08:45 Kim-OH: Got to run, thanks Mike and Ralph
02/7/05 21:08:51 Ralph_Roberts: see ya Kim!
02/7/05 21:09:08 JJ: mike does the rent go to you and then you pay the manager…or does the rent go to the manager, they take out their %, then pay u
02/7/05 21:09:11 Mike_Summey: By Kim
02/7/05 21:09:24 DaveO: im getting licensed because i want to be able to handle open houses for my wife on weekends
02/7/05 21:09:26 Steve: I’ve heard the realtor board holds you to a higher standard, but that might just be here in SC
02/7/05 21:09:57 DaveO: i am taking the classes on the weekend =) and lunch hours, and nights
02/7/05 21:09:58 bsalus: Do those one or two actively look for you?
02/7/05 21:10:06 Mike_Summey: JJ, the rent goes through the property managers. They take their cut and send me the difference along with a full report of income and expenses each month.
02/7/05 21:10:17 JJ: thats what i thought
02/7/05 21:10:51 Mike_Summey: I believe that having a license is a liability for an investor.
02/7/05 21:11:04 Bruce: Mike, what information do you send your bankers on a monthly basise as discussed in your book?
02/7/05 21:11:05 DaveO: why is that?
02/7/05 21:11:17 Steve: bsalus, there are usually certain realtors who are well connected on investment properties (and working with investors). Ask around.
02/7/05 21:11:27 JJ: mike Im getting a 530K 12 unit for 380K…using a heloc to fix up rundown properties to get them ready for rent, refinancing them, paying back the heloc is a good idea, dont u think?
02/7/05 21:11:30 MarkNC: Why Mike? ABout the license
02/7/05 21:12:21 Steve: Mike, I have heard that from actual Realtors!
02/7/05 21:12:28 Mike_Summey: DaveO, when you are licensed you are held to a higher standard. If you make a super deal on a property, you are in jeopardy of getting sued by the seller for taking advantage of them since as a licensed Realtor you are considered a professional.
02/7/05 21:12:41 Mike_Summey: Hi Jim, where ya been?
02/7/05 21:12:51 bsalus: thanks, so far I have found a bunch that want to drive me around… 
02/7/05 21:13:01 DaveO: thats what I was about to guess
02/7/05 21:13:04 JimFletcherNC: Just got back from Bible Study
02/7/05 21:13:07 Mike_Summey: JJ, sounds good to me.
02/7/05 21:13:37 JimFletcherNC: I bet I missed out on some good advice here tonight…
02/7/05 21:14:07 DaveO: its funny you say that though because most of the realtors I have met are also investors
02/7/05 21:14:13 Mike_Summey: Jim, you’re going to have to go to bible study on Tuesday.
02/7/05 21:14:20 David_V: What about my llc, I make the purchases, and another member of the LLC is a realtor if we want to sell the property?
02/7/05 21:14:21 DaveO: though they tend to buy houses to fix up and sell, not to keep
02/7/05 21:14:55 Mike_Summey: DaveO, if they were truly investors, they wouldn’t be wasting their time brokering real estate.
02/7/05 21:15:14 DaveO: nah they do it for extra cash
02/7/05 21:15:18 Bruce: Mike, good point
02/7/05 21:15:21 DaveO: they aren’t serious
02/7/05 21:15:24 Steve: The majority of investors I hear about are flippers. As a buy and hold investor, that is always great news to me!
02/7/05 21:15:46 Mike_Summey: daveo, buying, fixing up and selling is not investing. That’s speculating and a lot of realtors do that.
02/7/05 21:15:58 JJ: thats work
02/7/05 21:16:05 David_V: Steve, I’m gonna mix and match. Buy and flip, and cherry pick the ones that I think will be the best rentals for myself.
02/7/05 21:16:08 Mike_Summey: Flippers are not investors either.
02/7/05 21:16:11 DaveO: wouldn’t they be held to the same standard though if they got a great deal?
02/7/05 21:16:12 Martin: Good night everyone!
02/7/05 21:16:26 Mike_Summey: Goodnight Martin
02/7/05 21:16:27 Bruce: Good night Martin
02/7/05 21:16:40 JJ: flip to get some cash but hold to property if you dont need the cash
02/7/05 21:16:45 JJ: hold on*
02/7/05 21:16:57 Steve: David_V - there is not rule that says you have to do one or the other exclusively. I just like having a focus.
02/7/05 21:17:10 DaveO: i’d like nothing more than to be able to invest full time but im a few years away from that
02/7/05 21:17:47 MarkNC: I owuld think that flipping, with minimal rehab, is where realtors would stand the most risk, You definitely didn;t pay market for a flip
02/7/05 21:17:49 Mike_Summey: DaveO, it does take time.
02/7/05 21:18:04 MarkNC: Geez I can’t type tonight.
02/7/05 21:18:06 David_V: Yeah, me too…..I’m aiming for one rental purchase a year for the next 5 years. And multiple forclosure deals to help finance the rental down money.
02/7/05 21:18:08 Bruce: Steve, were you that focused when you started? Or did you flip early in your investing career?
02/7/05 21:18:10 DaveO: im 30 I have some time
02/7/05 21:18:32 JJ: mike would you pay more than the appraised value of a property if you get the right terms, like a lot of owner financing
02/7/05 21:19:05 Mike_Summey: JJ, yes, I’ve done that several times, especially when I have gotten 0% financing.
02/7/05 21:19:24 Steve: Bruce, I have only been investing for a couple of years and I knew rentals were going to be my focus from the start. I set a goal of retiring in 15 years so I put all of my properties on 15-year notes to help me achieve that goal.
02/7/05 21:19:39 Mike_Summey: JJ, there are stories about that in the book also.
02/7/05 21:19:39 MarkNC: Gotta go
02/7/05 21:19:43 JJ: ya
02/7/05 21:19:49 Bruce: Steve, excellent and much success on your goals.
02/7/05 21:19:55 Mike_Summey: Good move Steve.
02/7/05 21:20:03 Steve: Thanks!!
02/7/05 21:20:06 JJ: but what if it isnt 0% financing, just a regular note…but its still a great cash flow
02/7/05 21:20:10 DaveO: Mike would you consider a property to ‘work’ if the NOI works but only on 30 yr financing? or would you have to have a certain amount of cash flow right away to have 30 yr make sense?
02/7/05 21:20:30 Mike_Summey: JJ, if the cash flow works that’s what’s really important.
02/7/05 21:20:44 David_V: My lovely wife is asking how long I’ll be on the computer, so I had better say goodnight. Thanks again Mike. This gets better every week. Can’t wait for the book .
02/7/05 21:21:03 Bruce: Steve, curious , how did you set your goals? An annual cash flow amount each year?
02/7/05 21:21:08 David_V: night all
02/7/05 21:21:40 Mike_Summey: daveo, that depends on the circumstances. 30 year financing is fine when you’re young, but most of the time the difference between 15yr & 30yr is not that great.
02/7/05 21:21:46 JJ: ya cuz Im looking at a multi unit, rents for $5700/M…their asking 370K, but I think itll only appraise at like 325K, but they dont have much equity and the Realtor they may be willing to do some creative/owner financing….Ill see in the next few days
02/7/05 21:21:48 jjfinger: I have just read Weekend Millionaire and am considering purchasing my first property with a rental next door. The asking is $75,000 and the rent is $595. Do you think this sounds like a good idea?
02/7/05 21:21:53 Mike_Summey: Goodnight David
02/7/05 21:22:07 JJ: cash fklow is awesome^
02/7/05 21:22:07 Ralph_Roberts: see you David
02/7/05 21:22:35 Steve: Bruce, yes and no. I have other investments (stocks, land, etc.) so I am hoping that a combination of those and a new focus on rental property will get me there. I am only 36 now, so I feel like I am ahead of the game.
02/7/05 21:22:40 Mike_Summey: jfinger, that’s not enough information. If you follow the advice in the book it should give you all you need to know.
02/7/05 21:23:36 Shane: Looks to like to me, you could get enough cash flow before paying the 15 year notes to retire
02/7/05 21:23:57 Mike_Summey: JJ, just be careful. Unless you have a good bit of experience, there are many hidden costs that you may miss in larger multi-family properties.
02/7/05 21:24:00 JimFletcherNC: Mike, if the only way to get a positive cash flow is through an interest-only loan, is that OK in your eyes?
02/7/05 21:24:06 Shane: too many tos
02/7/05 21:24:09 JJ: no i know i know
02/7/05 21:24:25 Steve: Shane, I hope so. I love real estate and I would do it 24 hours a day if possible!!
02/7/05 21:24:31 JJ: i have someone who helps me, the guy with 150 units that got started with carletons course
02/7/05 21:24:41 Shane: me too
02/7/05 21:25:10 Steve: Bruce, how long have you been investing? How about you, Shane?
02/7/05 21:25:10 Mike_Summey: Jim, I don’t like interest only loans unless it is just for a year of two before the amortization starts.
02/7/05 21:25:19 DaveO: Mike what I was thinking of was the possibility of getting in with 30 yr financing, and then accelerating payments as the rents went up to play off in less that 30 years.. im going to try for the 15 year first of course
02/7/05 21:25:55 Mike_Summey: DaveO, that sounds like a good plan if you will stick to it.
02/7/05 21:26:14 Sermiex: What about pre payment clauses?
02/7/05 21:26:28 Shane: why not try 20 yr notes
02/7/05 21:26:42 Mike_Summey: Jim, you weren’t in earlier when I mention that I closed on the King Air today.
02/7/05 21:27:10 JimFletcherNC: No, I wasn’t here… but…. congratulations!!!!
02/7/05 21:27:32 DaveO: my research shows that most properties around here are selling at about 125 times rents so im gonna have to find one hell of a deal to make 15 year work, im gonna look for that deal though
02/7/05 21:27:32 Mike_Summey: Sermiex, never sign a note that has a prepayment penalty. You don’t have to to get financing today.
02/7/05 21:27:38 Bruce: Steve, started reading, looking, making offers about 6 mo’s ago. I’ve had two offers accepted and won a bid at auction for 6 units. I used the NOI calculation form in the book. I had another method but figured I’s use Mike’s ’cause he’s been doing this a lot longer than me.
02/7/05 21:27:41 Mike_Summey: Hi mIchelle
02/7/05 21:27:47 Ralph_Roberts: Hi Michele!
02/7/05 21:27:48 Sermiex: Thanks Mike
02/7/05 21:28:12 Steve: Great Bruce. Good luck to you!
02/7/05 21:28:12 JimFletcherNC: Mike, the KingAir gets delivered in March?
02/7/05 21:28:25 Shane: I bought my first rental when I was 19 then sold for a proffit. then got into buisness. and only started back in real estate 3 yr. ago
02/7/05 21:28:49 JJ: how old r u now shane
02/7/05 21:29:15 Shane: just turned 43
02/7/05 21:29:25 Mike_Summey: Jim, I took deliver today. Flew it to aiken, SC and back. got in one day and one night landing and now I’m putting it in for new paint and interior. Will not get it back from there until the end of March.
02/7/05 21:29:49 JimFletcherNC: OK cool… I would love to see it sometime
02/7/05 21:30:02 Mike_Summey: You will when I get it back.
02/7/05 21:30:22 JimFletcherNC: Great!
02/7/05 21:30:33 DaveO: avoid Prepays for sure.. im made the mistake of getting into one on my primary residence, and as a mortgage guy i should have known better.. now i have to wait till july to refi and i might miss the best rates
02/7/05 21:30:35 Mike_Summey: Everyone, I’m going to have to run. It’s 9:30 and I have to get up early tomorrow.
02/7/05 21:30:41 Bruce: Steve, thanks, my attitude is “I’ve already got the answer NO, so the worst thing that could happen if I write offers is yes”
02/7/05 21:30:47 audrey: aww mike i just got here
02/7/05 21:30:47 Mike_Summey: Hi audrey, are you from Ohio?
02/7/05 21:30:54 audrey: yeah it’s me mike
02/7/05 21:31:01 Steve: Good attitude!
02/7/05 21:31:03 Mike_Summey: Where have you and Joson been
02/7/05 21:31:13 audrey: i didn’t know this was going on i didn’t get the memo
02/7/05 21:31:15 Sermiex: Good Night Mike, thanks for another great chat!!
02/7/05 21:31:30 Ralph_Roberts: Good night, Sermiex
02/7/05 21:31:33 Steve: I need to run. I hope to see everyone next week!
02/7/05 21:31:33 Mike_Summey: audrey, are you registered on the website?
02/7/05 21:31:40 audrey: no i’m not
02/7/05 21:31:41 Shane: Good night Mike
02/7/05 21:31:45 Steve: Have a good night…
02/7/05 21:32:05 JimFletcherNC: take care Mike
02/7/05 21:32:22 Mike_Summey: Then that’s why you didn’t get the email. Click on the “new user” button and register, then you will get the emails.
02/7/05 21:32:44 Sermiex: Good night Ralph, thanks for the great job you do…
02/7/05 21:32:44 audrey: i was kidding about the memo thing. jason just told me about it
02/7/05 21:32:47 bsalus: night all
02/7/05 21:32:53 Ralph_Roberts: Mike Summey <--- secret MikeCam
02/7/05 21:32:57 Mike_Summey: audrey, there is also a calendar that lists the chats and times on the website.
02/7/05 21:33:04 JimFletcherNC: ph wow
02/7/05 21:33:10 JimFletcherNC: oh wow
02/7/05 21:33:15 Ralph_Roberts: tanks, Sermiex
02/7/05 21:33:27 Mike_Summey: Jim, Ralph is playing now.
02/7/05 21:33:29 Ralph_Roberts: hi Matt
02/7/05 21:33:34 DaveO: Mike why do you feel that it is easier getting 40% financing than 60%? I haven’t done a lot of NOO loans, but I have never had a problem getting people qualified for 60% LTV loans where a lower LTV would have made much of a difference?
02/7/05 21:33:38 Sermiex: Secret Mike Cam?
02/7/05 21:33:41 JimFletcherNC: the glare! the glare!
02/7/05 21:33:43 matt: hey
02/7/05 21:33:47 audrey: hi matt
02/7/05 21:33:59 Jason: Hey Matt
02/7/05 21:34:11 JimFletcherNC: i had to put on my sunglasses, Ralph
02/7/05 21:34:14 JimFletcherNC: LOL
02/7/05 21:34:14 Mike_Summey: daveo, because the more seller financing you can get the more options you have to make a deal work.
02/7/05 21:34:20 matt: hello audrey, jason,mike
02/7/05 21:34:21 Mike_Summey: Hi Matt
02/7/05 21:34:26 DaveO: oh you were coming form the seller angle
02/7/05 21:34:28 JimFletcherNC: Just kidding, Mike
02/7/05 21:35:30 JimFletcherNC: I’m losing my hair too
02/7/05 21:35:31 Mike_Summey: I don’t take responsibility for anythig that Jason, Matt or Audrey do in the chat. Good luck everyone.
02/7/05 21:35:52 Mike_Summey: Goodnight all.
02/7/05 21:35:57 JimFletcherNC: goodnight mike
02/7/05 21:36:07 DaveO: Well, thanks for all the advice.. I think I’m going to talk to a few propery managers this week and get their opinions on what different areas rent for and what kinds of vacancy rates to expect
02/7/05 21:36:45 matt: goodnight
02/7/05 21:37:05 Ralph_Roberts: good night, all … transcript will be posted shortly
02/7/05 21:38:42 matt: What about house flipping?Is that a good way to start?
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