Chat 2-28-05
Posted on February 28, 2005
19:53:54 Ralph_Roberts: hi guys!
19:55:10 Ralph_Roberts: anyone awake? 
*beep*
20:01:38 Jeff:FestusMO: I’m here
20:01:46 Ralph_Roberts: Hi Jeff!
20:01:55 Ralph_Roberts: Welcome, Eddie!
20:01:57 Jeff:FestusMO: Hi, Ralph
20:02:12 Ralph_Roberts: we should have a good one, tonight
20:02:31 reggiebrooks: Hi, Everybody - Reggie Brooks -
20:02:37 Ralph_Roberts: I see our guest is on board… twice, in fact ;>
20:02:47 Ralph_Roberts: Are you there, Reggie?
20:02:58 reggiebrooks: Yes, both of us.
20:03:15 Jeff:FestusMO: Ralph, are we related? My last name is Roberts also.
20:03:19 Ralph_Roberts: good… I think …. heh … I’m the site administrator here
20:03:48 Ralph_Roberts: Probably, jeff…. seriously, lots of my Roberts family left WNC for points west
20:03:56 Ralph_Roberts: his steve, Roger!
20:03:57 reggiebrooks: Hi Roger…
20:04:10 Steve: Hi guys!
20:04:14 Jeff:FestusMO: I’m from Missouri
20:04:23 Roger_Dawson: Hi Reggie, thanks for joining us.
20:04:35 Ralph_Roberts: I have relatives in both KC and Springfield areas
20:04:36 reggiebrooks: My Pleasure!!
20:05:15 Ralph_Roberts: Reggie, we’ll be starting as soon as Mike shows up… we’re pretty informal… so enjoy yourself and have lots of fun!
20:05:19 Ralph_Roberts: hi Rick
20:05:30 RickCanuk: Hello
20:05:32 reggiebrooks: Okey Dokey…
20:05:40 Jeff:FestusMO: Ralph, why aren’t the forums very active?
20:05:46 Steve: Hi Reggie. I don’t know you. What is your background?
20:06:15 Ralph_Roberts: we’re working on that, Jeff… Mike and Roger stay so busy it’s hard for them to spend a lot of time in the forums
20:06:35 Ralph_Roberts: I think forums are a great tool. 
20:06:39 Jeff:FestusMO: I noticed that. I saw many posting/questions and almost no responses to anyone’s questions.
20:06:53 Ralph_Roberts: hi Bruce!
20:06:54 reggiebrooks: Born and raised in Los Angeles, Have been investing in RE for around 19 yeard, and I specialize in Abandoned Properties.
20:06:56 Jeff:FestusMO: I agree and would definitely use them if there were some responses.
20:07:10 Ralph_Roberts: Jeff> right, that’s one of our weak areas and, as stated, we working on it.
20:07:16 Steve: Good! I look forward to learning more…
20:07:35 Bruce: hi ralph
20:07:48 Jeff:FestusMO: Great, I’ll look forward to increased activity in them.
20:08:45 Ralph_Roberts: I just checked with Mike’s wife, she says he’s in Florida but has his computer with him.
20:08:51 Steve: Mike is usually one of the first ones in. He must still be counting his money…
20:08:54 Roger_Dawson: Reggie, I know that you and I have been on seminars together in San Francisco and Santa Monica. Why don’t you start out by telling us what you mean by abandoned properties?
20:09:35 Roger_Dawson: Hi Doug!
20:09:39 Ralph_Roberts: hi Doug!
20:09:49 Doug_in_CT: Hi Roger, Hi Ralph,
20:09:58 Ralph_Roberts: Zert’s here, now we can start!
20:10:07 TomB: Hello everyone.
20:10:10 reggiebrooks: Abandoned properties are properties that owners have walked away from for one reason or another.
20:10:12 Doug_in_CT: Do I need to change my color to be seen?
20:10:12 Ralph_Roberts: hi shane, brian
20:10:26 Brian-ON: Good evening all
20:10:29 zert: thanks Ralph, I feel wanted!!
20:10:29 Roger_Dawson: Hi Mike!
20:10:34 Shane: Hi everyone
20:10:35 Jeff:FestusMO: Hello
20:10:35 Mike_Summey: Hello everyone.
20:10:37 Doug_in_CT: Hi Mike!
20:10:45 Ralph_Roberts: THERE he is, Mike Summey
20:10:45 Brian-ON: Hi Mike!
20:11:00 reggiebrooks: Hi Mike..
20:11:03 Mike_Summey: Getting online here has been something else.
20:11:16 Roger_Dawson: Abadoned means that the holders of any notes didn’t choose to pick up the property to protect their position?
20:11:35 Ralph_Roberts: I hear you’re in florida… that explains it …. low tide
20:11:45 Steve: Roger, is that a frequent occurence?
20:11:53 Mike_Summey: Everyone has been telling me that I had to use the computer in the business center at a charge of $10.60 plus .84 cents per minute.
20:12:05 Roger_Dawson: I haven’t heard of it, but Reggie’s the expert.
20:12:17 TomB: Thats crazy Mike
20:12:37 Mike_Summey: My son Matt just unplugged the ethernet cable from one of their computers and plugged it into my laptop and here I am…FREE!
20:12:43 Mike_Summey: Hurray for Matt!
20:13:13 reggiebrooks: Not necessarily. The mortgages might still be paid. (owners trying to keep their credit clean)They like to sell and stop the bleeding of money going out, but they don’t have the money to fix it up. That’s where we come in.
20:13:26 Doug_in_CT: I missed last week’s chat as I was went to the monthly ctreia meeting. I was able to give a good Public Relations Announcement about Mike’s upcoming visit to the area May 21st.
20:13:33 Mike_Summey: reggie, you look liky you’re signed in twoce.
20:14:08 Roger_Dawson: Hi Penny!
20:14:10 Shane: That saved you enough for a bucket of paint
20:14:12 Mike_Summey: Hi Penny
20:14:12 reggiebrooks: I’m not the sharpest pencil in the box. Do I need to logout??
20:14:16 Ralph_Roberts: hi Penny! :>
20:14:26 Penny: Hi Roger, Mike, and Ralph!
20:14:28 Roger_Dawson: Hi Sermiex!
20:14:30 Ralph_Roberts: hi sermiex!
20:14:34 Mike_Summey: No, I just wondered how you got in twice.
20:14:43 Mike_Summey: Hi sermiex
20:14:56 Brian-ON: Mike & Roger…Do either of you have any planned visits to the Toronto area?
20:15:05 Mike_Summey: Reggie, how are things in LA?
20:15:10 Steve: Reggie, how do you go about finding these opportunities?
20:15:30 Roger_Dawson: I’m speaking an hour south of Toronto in September, but it’s to a private manufacturer.
20:15:33 sermiex: Hi All !!
20:15:44 Jeff:FestusMO: Mike or Roger, do you advise forming an LLC to buy properties?
20:15:53 RickCanuk: Maybe after it stops snowing Brian!! 
20:15:59 Doug_in_CT: I have heard Reggie before– Be careful when they say they are not the sharpest pencil in the box. Roger speaks about this as “Dumb is smart, and Smart is Dumb” in the book.
20:16:17 reggiebrooks: Beautiful day - around 68 degrees. I had my grand baby today. He’ll be 4 months, but I’m already whispering abandoned properties in his ear.
20:16:32 Brian-ON: Yep..we’re getting it again tonight…4-6″
20:16:38 Roger_Dawson: When somebody tells me that they’re a terrible negotiator, I hand on to my waller!
20:16:53 Mike_Summey: Today has been something else for me. I started at 6:30 this morning on a tractor plowing snow off my driveway and then flew to Orlando with two of my boys and played golf this afternoon.
20:16:54 Roger_Dawson: Try hand on to my walllet.
20:17:24 Doug_in_CT: I get the feeling that urban S. California is esp. good for abandoned properties, is that right Reggie?
20:17:27 zert: Brian -ON what part of Ontario, I was in Toronto this past weekend
20:17:28 Brian-ON: But are you happy Mike?
20:17:30 Steve: Mike, my heart is bleeding…
20:17:39 Roger_Dawson: How do you find abandoned properties, Reggie?
20:17:41 Mike_Summey: Reggie, I want to know more about what you do with abandoned properties.
20:17:46 Brian-ON: I’m in Toronto
20:18:17 reggiebrooks: One of the easiest ways to find abandoned properties is to drive up one street and down the other. Also, let everyone know that you’re looking for vacant, run down properties.
20:18:46 TomB: Do you look for specific types of areas?
20:18:52 zert: Reggie - how do you overcome the stigma associated with abandon properties
20:19:00 Mike_Summey: Reggie, that’s the same thing we tell people to do to find motivagted sellers.
20:19:35 rmcmillian: Reggie, Are therer any resources in cities / counties to help locat abandoned properties?
20:19:40 Mike_Summey: Sorry about my typing tonight. I’m trying to type with the computer almost up under my chin.
20:20:00 reggiebrooks: All of us have seen these properties, boarded up, run down. However, many of these properties are in much nicer areas.
20:20:48 Doug_in_CT: I saw an abandoned property nearby my house, but it is so run down I think you would have to start over with it.
20:20:48 Ralph_Roberts: rehi steve
20:20:57 sermiex: Reggie: How do you handle the rehab? Do you use architechts, licensed contractors? Do you have contracting expertise?
20:21:55 reggiebrooks: My daughter finds many of these properties in the much nicer areas - My mentor, Dr. Albert Lowry found one on a golf course in Las Vegas. He got it for $950,000 in an area where properties sell for $3,000,000.
20:22:20 sermiex: Mike: How would you figure rehab costs into NOI and roi?
20:22:45 Steve: Reggie, are you flipping these properties or using them for rentals?
20:22:55 Jeff:FestusMO: Sermiex, I had the same question. I looked at some properties this weekend, many of which need some work.
20:23:22 Shane: If a bank has foreclosed on a property, can they just sell it or do they have to auction it off?
20:23:26 Mike_Summey: sermiex, I’d figure it just the way we tell you in the book. Determine the cost of the rehab work and then let that determine how much you want to pay for the property in it’s existing state.
20:23:43 Mike_Summey: Hi mickey
20:23:49 mickey: Hello
20:24:09 sermiex: Thanks Mike
20:24:33 sermiex: Reggie: How often do actual rehab costs match estimates?
20:24:47 reggiebrooks: I keep it very simple… First of all, these properties are real headaches for the owners. Many times, they will owner finance these properties. That means no points, no garbage fees, they usually don’t care whether you have a job, money, or credit. they just want the headache to stop.
20:25:18 Jeff:FestusMO: The homes I looked at need a significant amount of rehab. I was estimating the cost and then subtracting from the noi, the monthly payment amount to cover these rehabs. The rest was used to calculate the amount that can go towards the mortgage. Does this sound correct?
20:25:34 Brian-ON: Mike & Roger in your book you advise us to beat the bushes (so to speak) Would that include calling fsbo in the classifieds?
20:25:34 Roger_Dawson: Shane, if the bank is just settling for the value of the property, they can sell it any way they want. If they’re going to go after the former owner for a deficit judgment (which is rare) they’d need to be more cirumspect in the way they handled the sale.
20:25:44 Mike_Summey: HI Michele
20:25:47 Doug_in_CT: So owner will carry is very populary when owner is gone.
20:26:21 Roger_Dawson: Calling fsbos is the first thing that I’d do. Particularly looking for out of area owners.
20:26:46 Shane: Thanks Roger, I bought one once at an auction and was just wondering.
20:26:47 reggiebrooks: As far as rehab, everyone should go to the government first!!! Always look for a low interest loan, a subsidy, or a grant to do your rehab for you.
20:26:53 Mike_Summey: Brian, anything you can do to locate motivated sellers is fine. Some people find that one method works better for them than others. It’s your personal preference how you want to farm your territory.
20:27:00 mickey: Do you look for vacant houses that are run down?
20:27:31 mickey: i know of 45 vacant houses in my town right now.
20:27:36 Mike_Summey: Out of area fsbos are deals looking for a way to happen.
20:27:52 reggiebrooks: Yes, Mickey - only these days I don’t have to beat many bushes. I have students that bring deals.
20:28:30 Steve: Mike, what are your thoughts on raising rent to a tenant who is already paying above market value? I have a 3BR SFR rented for $695 while other similar properties in the area go for $625 - $650. I feel lucky to get what I am.
20:28:34 Doug_in_CT: Now that you mention it, we had a famous street of vacants, in the next town over.
20:28:36 mickey: so do you buy the deals from your students?
20:28:41 reggiebrooks: Has anybody ever done an abandoned property deal??
20:29:04 Mike_Summey: Reggie, I have several “bird dogs” that find properties for me also. They find the deals and then flip them to me and make $2000 - $5000 on each deal.
20:29:42 Doug_in_CT: How did you find this “bird dogs” Mike?
20:29:44 mickey: Reggie do you have a course are a book out now?
20:30:05 Bruce: Reggie, I have not bought an abandoned property. Why did you ask?
20:30:07 Mike_Summey: Reggie, I’m not the sharpest knife in the drawer either. Would you define what you mean by abandoned properties?
20:30:15 mickey: i would be interested in becoming a bird dog.
20:30:45 sermiex: Mike: So would I
20:31:30 reggiebrooks: Yes, I buy deals from my students. I have created the Abandoned Property System. It consists of a workbook and a set of 6 cds.
20:31:32 Doug_in_CT: So now we got both of these “king pins” claiming to be dull…..Their Bankers know otherwise.
20:31:34 Shane: Roger, Mike I have some units under contract, and on due dilligence I found the roof to be around 18 yrs old and some units in need of repair like paint, carpet, Should I ask for a lower price or some money back at closing to cover part of cost? or can I do that at all?
20:31:52 Mike_Summey: Steve, it’s hard to advise you on raising rents, because I don’t know your market. All markets go through cycles where it is easy to raise rents at times and harder to do so at other times.
20:33:06 Doug_in_CT: But Steve, the slow and steady principle on rent is the way to go.
20:33:06 Steve: Mike, I understand. I asked because I know you suggest increasing cash flow by raising rents and doing it at a minimal amount to avoid turnover. Just thought I would ask.
20:33:13 reggiebrooks: A property that an owner walks away from. It’s no longer bringing an income for it’s owner.
20:33:19 mickey: reggie where would i find your course???
20:33:23 Mike_Summey: Shane, I would determine what the value would be based on the properties being fixed up and in good condition and then would make my offers less the amount it would take to put them in that condition.
20:33:31 Jeff:FestusMO: There are no property managers in my area. What is the best way to gauge the rent rates? I own one rental and am getting $750. Though, I don’t often see any ads in the paper above $750. What other sources are there for determining rental rates?
20:33:33 Roger_Dawson: Shane, I’d certainly test the water by asking for concessions. How well you do depends on how many options the seller has.
20:33:34 mickey: i am from Texas
20:34:34 mickey: Anyone eles here from texas?
20:34:39 Brian-ON: Unfortunately I have to run..again…youngsters hockey practice. Hopefully one night I will be able to take in a whole session. Thanks for the insight Mike, Roger, Reggie!!
20:34:42 Roger_Dawson: Jeff, I’d do some competitive shopping by acting like a renter and finding out what choices are available in your town. You’ll quickly get a feel for market rental values.
20:34:48 Bruce: Mickey, What part of Texas?
20:35:02 mickey: Galveston near Houston.
20:35:03 Mike_Summey: Jeff, you may not have any full property management firms, but I’ll bet there are real estate firms who manage as well as sell. That’s not the best scenario, but sometimes that the best you can do.
20:35:21 Jeff:FestusMO: I spoke with a real estate agent over the weekend who told me he knew of some homes in my area renting for $1,400. I’ve been watching the paper for over a month and haven’t seen any ads anywhere near that.
20:35:30 Mike_Summey: Goodnight Brian.
20:35:32 reggiebrooks: You can find it on my website (reggiebrooks.com). You’ll find other educational courses at the website. If you shoot me an email from the site, I’ll share the special price that I’m offering for Mike and Roger’s students.
20:35:37 mickey: Reggie where would i find your course?
20:35:59 Jeff:FestusMO: I met with an agent over the weekend. We had a long discussion and they are considering whether they want to get into this. I’ve got calls into several others to meet with them as well.
20:36:39 Steve: Jeff, sounds like there might be a side business opportunity for you there!
20:36:46 Jeff:FestusMO: Mike or Roger, do you advise forming an LLC to buy properties? If so, is there any other special advice you might have?
20:36:53 Mike_Summey: Jeff, if you really get serious about real estate investing, you may have to train a property manager. That’s what I did in the beginning.
20:36:59 Bruce: Reggie, Roger, if the two of you live in Southern Calif. Are either one of you investing in the Palm Springs, Desert Hot Springs area?
20:37:15 Jeff:FestusMO: Steve, I considered it. My wife used to manage an apartment complex before we got married.
20:37:33 Roger_Dawson: I’m not familiar with llcs so I’ll let Mike answer that. I know that he gets asked it a lot.
20:37:42 reggiebrooks: I’ve invested with a developer in the desert.
20:37:44 Jeff:FestusMO: Mike, I am very serious. I’ve been working hard this past week to get everything rolling.
20:37:59 Steve: Jeff, there you go! I’ve considered it myself because the management companies in my area are terrible.
20:38:01 Bruce: Reggie, in dhs?
20:38:10 mickey: Anyone from houston, Tx here.
20:38:12 Mike_Summey: Jeff, there are advantages to owning properties in llcs. One advantage is it make it easier to deal with them in your estate planning. They also offer some liability protection.
20:38:32 reggiebrooks: Palm Desert.
20:39:50 sermiex: Reggie: How often does the actual cost of rehab match the estimates?
20:39:54 Bruce: Reggie, do you think the market is pushing to La Quinta and dhs? The DHS properties can still be bought under 300K for 1600 square feet.
20:40:23 Mike_Summey: Steve, when I say you may have to train a property manager, I’m talking about determining what you want them to do and then work with one to explain what you need and let them learn how to do it. You have to watch manager, because people do what you inspect, not what you expect.
20:40:30 Mike_Summey: Hi Morgan
20:40:54 Morgan: Hi everyone!
20:40:56 reggiebrooks: We have the tendency to underestimate.
20:40:56 Jeff:FestusMO: I went out and looked at several properties this weekend, we actually walked through 3. I took lots of notes about the condition and estimated repair costs. The problem is that the NOI left over only allows me a very low offer price. For example, one home I looked at is listed at 94,500 and I can only offer in the 50’s. The seller has no equity. Should I just start making offers like this? I calculated the prices I would offer on these 3 properties and each averages a 50% discount from the asking price.
20:41:32 Jeff:FestusMO: Steve, I put together a list of services I would expect them to provide. I hope I didn’t scare them
20:42:14 Bruce: Jeff, write offers, you already have the answer NO. You might get a yes.
20:42:48 Steve: Jeff, you’re starting off on the right foot. They know what you expect from the start. Have established your LLC yet?
20:43:07 Mike_Summey: Jeff, the first thing you need to understand is that you can’t buy everything you look at. Most properties cannot be purchased usint the noi. It’s the ones that can that you want to find. sometimes you will make many offeres before one is accepted, but when it is you will make money on it. Be patient! Just buying one house a year can make you wealthy.
20:43:17 Jeff:FestusMO: I have my LLC form in front of me now from my Secretary of State. It is filled out and I am going to file it tomorrow at lunch.
20:44:08 Jeff:FestusMO: Mike, what sorts of things would prevent you from even making an offer on a property? Do you offer on most you look at based on your NOI calculation or do you offer on only a percentage?
20:44:11 Steve: Jeff, I formed a LLC but only have one of the properties I own under. It’s a gray area with the banks.
20:45:02 Jeff:FestusMO: I’ve also met with a mortgage company to establish a relationship as Mike/Roger teach in the book. I’ve so far met with an agent, a property manager, my banker and a mortgage company.
20:45:21 Mike_Summey: Jeff, you don’t have to file the LLC form until you actually get a property under contract unless you just want to. You can write a contract in you name and put “or assigns” after it. When you get an offer accepted, you will have time to file the LLC documents prior to closing.
20:45:31 Mike_Summey: Hi balsus
20:45:32 zert: Did you lock Reggie out???
20:45:50 reggiebrooks: No, Reggie’s still here.
20:45:54 Jeff:FestusMO: Mike, that’s a good point. Thank you for the advice. The only issue with that is the biz cards. I suppose I can have my LLC name printed on them anyway.
20:45:57 Morgan: Steve, how do you protect the properties that are not under the llc? With insurance?
20:46:06 Roger_Dawson: Reggie,how do you finance your properties?
20:46:18 Mike_Summey: Zert, it looks like he’s still in. that’s what I asked earlier, how could he be in twice.
20:46:25 Mike_Summey: Are you still with us Reggie?
20:46:42 Bruce: Reggie, are you developing in the desert or buying distressed properties?
20:47:05 reggiebrooks: The best financing is always Owner-Financing. Usually there are no costs, they don
20:47:09 Steve: Morgan, yes for now. If I ever refinance, I will put them under the LLC name.
20:47:21 Mike_Summey: Jeff, I’d use my own name on the business cards, not the LLC name. You may end up with several LLC before its over with.
20:47:42 reggiebrooks: they don’t care about credit, money, or a job.
20:48:25 Mike_Summey: Reggie is right. Owner financing is the best and most people never get it because they don’t ask for it.
20:48:27 Jeff:FestusMO: What ROI percentage is everyone using on money invested? I’ve been using 10%.
20:48:40 Morgan: Steve, we are in the process of forming several llc’s. When you say “gray” area as it relates to the bank, what are you speaking of?
20:48:46 reggiebrooks: Abandons are a great opportunity for someone with no money to get going in real estate.
20:48:54 Mike_Summey: Jeff, the correct answer is “all you can get.”
20:49:12 Jeff:FestusMO: Should a first offer include financing if you don’t know what position the sellers are in?
20:49:14 TomB: 10% seems low.
20:49:32 Bruce: Jeff, how are you calculating your roi? Cash in, debt reduction and appreciation?
20:49:38 Jeff:FestusMO: Tom, I’m referring to a return on my downpayment and/or any other money invested.
20:49:53 Jeff:FestusMO: Bruce, cash in
20:50:16 zert: Reggie: can you talk a bit about your experience with contractors and obtaining grants?
20:50:19 Mike_Summey: Jeff, you’ll probably never find out if an owner will finance if you don’t ask.
20:50:22 Shane: Mike, Roger, I know you base your purchase price on the NOI and whether it will cover expeses and debt service. Do you also have a cap rate you look at as well or a certain proffit margine above and beyond the debt service(like $100 per house or $50 per unit)?
20:50:23 Jeff:FestusMO: In the book, Mike suggests that you withhold from the rent proceeds an appropriate return on your own money invested.
20:51:12 Ralph_Roberts: hi Mark!
20:51:26 Shane: Jeff, I sometimes use 20%
20:51:38 Eddie: Reggie, what if an abandoned homes owner still has a mortgage on the property, do you still pursue it or does it depend on how much equity is in it?
20:52:02 Mike_Summey: Shane, if I can buy a property tht will just break even in the beginning after considering all expenses and vacancy, I consider it a good deal, because the longer you own the property the higher the margins will get as rents increase and debt pays down.
20:52:10 Jeff:FestusMO: I called about 20 mortgage vendors in my area and found that most of them charge PMI if you put down less than 20% of the purchase price, not the market value. However, I did find one that bases this decision on the market value. It pays to look around. I almost gave up and my agent referred me to a company that does it differently.
20:52:10 Mike_Summey: Hi Mark
20:52:13 sermiex: Reggie: How do you handle the “owner Occupancy” requirement in government financing?
20:52:23 reggiebrooks: I like to treat my contractors like an atheletic organization: I’ll have the “A” team, the “B” team, down to my “E” team. When one contract doesn’t get the job down, I’ll go to my “B” team, etc.
20:52:29 MarkNC: Hi Mike Ralph everybody
20:52:48 Bruce: Mark, hello
20:53:55 reggiebrooks: There is a lot of government money that easier to get. You’ll usually find that money in the “Targeted or Empowerment Zones”. Thay’s where you want to start.
20:54:27 Bruce: Reggie, how do you find targeted or empowerment zones?
20:54:33 Shane: Thanks Mike
20:54:39 Jeff:FestusMO: What criteria leads you to go for 20 vs. 15 year financing?
20:54:40 Mike_Summey: Jeff, in our book we describe several creative financing options. the problem is most people are reluctant to try them. Bankers are in business to make money just as you are. Show them a way they can do it and you’d be surprised at all the things they said they “can’t do” that they are willing to di if you can show them how it makes sense.
20:55:30 sermiex: Thanks Reggie
20:55:41 Jeff:FestusMO: Mike, I’ve listened to your CD audio program and am almost finished with the book. I’ve already told my brother about the book as well as many people I work with.
20:56:18 Roger_Dawson: Thanks Jeff! Appreciate you spreading the word for us.
20:56:27 Jeff:FestusMO: I purchased the Carleton Sheets Real Estate toolkit as well. It’s not bad, but wish it did a bit more. Anyway, I’m set and ready to start making offers.
20:56:40 Jeff:FestusMO: Roger, you’re very welcome. I’m glad to do it.
20:57:08 reggiebrooks: Government money is qualified for on an “individual” or A “project” basis. The “individual” money has to go to a qualified individual. Hence, owner-occupant. I like the “project specific” money. The project qualifies, not the individual.
20:57:23 Mike_Summey: Jeff, there are a lot of people out there selling “get-rich-quick” schemes. Personally I’ve never found one that works long term or that creats wealth as we define it in our book.
20:58:06 Bruce: Mike, Roger, do you make more profit if we buy your books from the store or off of the web? If were buying we might as well make you more money.
20:58:21 sermiex: Reggie: What kind of interest rates are out there?
20:59:16 Roger_Dawson: Bruce, if you buy off the WeekendMillionaire.com website Ralph will get you autographed copies at no extra charge!
20:59:19 reggiebrooks: Best to check with a lender. We’ve been using cash.
20:59:19 Jeff:FestusMO: I agree. I must admit I’ve been watching these infomercials since I was in college (20 years ago). I remember watching a guy named Dave Del Dotto and Carleton Sheets. When I read your book, it was amazing how sensible it was. There are no outragious claims. Everything is based upon sound analysis and that is what interested me.
20:59:30 Ralph_Roberts: tjat’
20:59:37 Ralph_Roberts: that’s right, Bruce
20:59:54 Jeff:FestusMO: Hi, Robin!
20:59:55 Mike_Summey: Jeff, I like Carleton Sheets Toolkit as it gives a beginning investor all the tools he needs to get started. As you gain experience and acquire a number of investments, you will find ways to expand on it and make it even more useful.
21:00:04 Mike_Summey: Hi Robin
21:00:06 Roger_Dawson: I have to leave you now. I’m still trying to get our phones fixed from the storm.
21:00:14 Robin: Hello!
21:00:31 sermiex: Reggie: I meant for government financing
21:01:04 Jeff:FestusMO: Yes, it’s pretty good. I created an Excel spreadsheet while I was waiting for it to arrive. I was hoping it would calculate a few more things automatically for me. But, I like the property tracking it provides.
21:01:16 TomB: Dinner is calling. Bye
21:02:14 Shane: Thanks Mike, Roger and everone. I have to leave a little early as well.
21:02:21 Mike_Summey: Jeff, I bought all of Dave Del Dottos, Carleton’s and many other real estate gurus materials. My philosophy is if I can pick up just one idea that helps me close a deal, the money is well spent.
21:02:29 reggiebrooks: There are thousands of ways to qualify for these programs. It’s impossible to answer that question - need to know the program…
21:02:29 Jeff:FestusMO: I also remember an infomercial with a short little guy and his wife. I think his name was Mike, but I don’t remember his name. There have been several over the years.
21:02:30 Mike_Summey: Goodnihgt Shane
21:03:21 Jeff:FestusMO: What ever happened to the Dave Del Dotto commercials? I guess he made his millions and retired
21:03:23 reggiebrooks: Mike, you’re absolutely correct! One idea can make you rich!!!
21:03:41 Mike_Summey: Jeff, I think he went broke!
21:04:06 reggiebrooks: Dave is making wine on his vinyard. His wine has made the Wine Spectator.
21:04:50 Jeff:FestusMO: I almost bought Carleton Sheets, but I read some really bad things about credit card billing on the Internet, so I didn’t do it.
21:04:51 Mike_Summey: Hi free2live
21:05:14 reggiebrooks: Bye, everyone…
21:05:20 Jeff:FestusMO: Bye, Reggie
21:05:26 MarkNC: Bye Reggie
21:05:27 Bruce: Reggie, do you see Desert Hot Springs as an area to invest in? It appears to be a growing area. What are your thoughts?
21:05:27 sermiex: Bye and thanks, Reggie
21:05:59 Mike_Summey: Bye Reggie. Thanks for joining us tonight.
21:06:05 rmcmillian: Thanks for the info Reggie
21:06:37 zert: interesting stuff!!
21:07:29 rmcmillian: Gotta go - bye everyone
21:07:51 free2live: Good evening, everyone. Sorry I just joined the discussions; I just got in from work.
21:08:11 Bruce: Mike in a HUD foreclosure bid situation. How do you make your ultimate decision on price. I ran my numbers on a 15yr., loan, good cash flow and lost by less than 5,000 today. (over 250 a month) Next time, should I just try to break even year one?
21:08:44 Bruce: over 250 in cash flow a month
21:08:50 Mike_Summey: free2live, please feel free to stay and chat as long ans anyone is still here. Unfortunately, I can’t stay longer tonight either. I need to go join my boys for dinner.
21:08:57 Mike_Summey: Goodnight all.
21:09:02 MarkNC: I just put in an offer on a duplex, one unit of which is leased to a battered women’s shelter as temporary housing for women. My wife seems a bit nervous about the arrangement, worried about husbands stalking the place. Anyone have any thoughts?
21:09:09 Jeff:FestusMO: Goodnight. See everyone next week.
21:09:11 MarkNC: Good night Mike
21:09:15 sermiex: Good night Mike
21:09:21 Jeff:FestusMO: Good night Robin
21:09:26 zert: thanks Mike
21:09:27 Bruce: good night mike
21:09:33 Ralph_Roberts: good night, mike
21:09:43 RickCanuk: Good night all–TY
21:09:54 Jeff:FestusMO: Ralph, what are you planning on doing to improve the forums?
21:09:59 zert: Mark - is the shelter going to provide any security guards ?
21:10:08 Ralph_Roberts: get Mike and Roger to answer questions
21:10:24 Ralph_Roberts: I’ll start doing so, as well.
21:10:28 free2live: Reggie, How does one get started doing what you’re doing?
21:10:33 Bruce: good night all
21:10:36 Jeff:FestusMO: I think it could also work if others provided meaningful responses.
21:10:38 Ralph_Roberts: it’s needs some interactivity
21:10:55 Ralph_Roberts: sure… everyone is welcome to partcipate
21:11:18 Jeff:FestusMO: I saw some very valid questions dating back to 2003 without a single response.
21:11:25 MarkNC: No, they say there has never been any problems and the sherriff knows where they are in the event of an emergency. THe other side will also likely be rented to college students as that is the main market in this area.
21:11:39 Ralph_Roberts: Hi Jim!
21:11:50 JimFletcherNC: Hello Ralph
21:11:54 JimFletcherNC: How are you?
21:12:08 Ralph_Roberts: good…. nice snow today but otherwise fine
21:12:14 zert: has this place been used as a shelter in the past? if so has there been a history of problems?
21:12:14 JimFletcherNC: I guess I am a day late and a dollar short
21:12:30 Jeff:FestusMO: I’m going to go. Bye, everyone.
21:12:32 Ralph_Roberts: yeah… Mike just left like five minutes ago
21:12:38 Ralph_Roberts: night, Jeff
21:12:40 JimFletcherNC: where are you, Ralph? Asheville or ?????
21:12:49 MarkNC: It has been used this way since last October with no real problems.
21:12:55 Ralph_Roberts: beautiful downtown Alexander
21:13:05 Ralph_Roberts: five miles NW of Asheville
21:13:10 Ralph_Roberts: near where Mike lives
21:13:14 zert: Oct of 2004? that is less than 6 months
21:13:15 JimFletcherNC: Oh, OK…. Fletcher here
21:13:23 Ralph_Roberts: yup
21:13:30 zert: what is the average length of time a person stays there?
21:13:40 MarkNC: We have about 10 inches of snow hear in Boone how much do you have Ralph?
21:14:02 Ralph_Roberts: Zert… most people seem to stay most of the first hour… then it varies
21:14:08 JimFletcherNC: About 2 inches here in Fletcher
21:14:16 MarkNC: Zert, I think about 2 months, but to be honest I have no real data,
21:14:23 Ralph_Roberts: Mark, we had maybe two here and it’s pretty well all gone now…
21:14:46 Ralph_Roberts: but I remember winter in Boone from back in my traveling salesman days
21:14:58 MarkNC: Its snowing here as we speak, they say we could get a few more inches tonight.
21:15:03 Ralph_Roberts: urk!
21:15:09 JimFletcherNC: Well, I am signing off…. take care, all.
21:15:10 zert: so average 2 months stay over the pst 5 months = 3 people. Your wife may have a valid concern!!
21:15:15 Ralph_Roberts: see ya Jim!
21:16:04 Ralph_Roberts: Zert, I musta misunderstood your question … thought you were asking about the chat?
21:16:05 MarkNC: Excuse me it has been since October of 2003
21:16:19 MarkNC: so a little more time with no problems
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