Chat 3-28-05
Posted on March 28, 2005
Kim-OH: Yes action in Cincinnati
Kat: Good evening Mike!
Kim-OH: Hi Kat
Ralph_Roberts: Hi guys!
Kim-OH: Hi Ralph
Kim-OH: Hi Al
Ralph_Roberts: Hi Kim.
Ralph_Roberts: "The best investment on earth is earth." –Louis
J Glickman, real estate owner
Al_Lee: Hi Kim, Hi all
Al_Lee: I am a minute or two early. Tiem to adjust my seat, make sure my
wine is the right temperature, etc.
Al_Lee: Time
Kim-OH: LOL @ AL
Al_Lee: Little things mean a lot!
Kim-OH: AL you got that right, mine’s coffee here
Al_Lee: I just finished dinner and the wine was part of it, but I may go
to coffee soon
Kim-OH: Hi Roger
Ralph_Roberts: I am currently slugging back diet Root Beer
Ralph_Roberts: hi Roger!
Kim-OH: Hi Mike
Al_Lee: Ralph, take it easy on the sauce!
Ralph_Roberts: there’s Mike!
Mike_Summey: Wow, looks like I’m late.
Kim-OH: We waited for you Mike
Ralph_Roberts: Roger Dawson and Mike Summey are now both in the chat.
Mike_Summey: Hi everyone.
Al_Lee: Mike, you missed agreat chat. Wich you could have been in on it.
Al_Lee: Wish
Roger_Dawson: Hi Everyone!
Ralph_Roberts: hi Bruce
Mike_Summey: Hi Bruce
Bruce: Hi Ralph
Bruce: Hi Mike
Shane: Hi Everyone
Al_Lee: Hi Mike and Roger
Mike_Summey: I’ve been on the phone working out arrangements for a hanger
for my new plane.
Al_Lee: A hole in the sky that you pour money into
Al_Lee: That’s jealousy speaking!
Kat: I can’t believe you’d leave it not housed
Roger_Dawson: If it flies, floats or fornicates, rent it, don’t buy it.
Mike_Summey: Al, you’re right. That’s why I keep a bucket on the other
side of the hole to catch the money.
Ralph_Roberts: hi Doug
Doug_in_CT: Hi Ralph
Mike_Summey: Hi doug
Doug_in_CT: Hi Mike
Al_Lee: I never learned that trick withmy littel ariplane. The money just
floated away
Mike_Summey: Airplanes are not like real estate … that’s for sure.
Kat: If it were possible you would be able to find that hole on the other
side. A big black hole
Shane: I was up to my uncles this evening and he showed me a new plane he
was thinking of buying
Doug_in_CT: I was in heavy negotiations with my mortgage broker about a
refinance just a few minutes ago.
Mike_Summey: Hi TM
Mike_Summey: How’d it go doug?
Mike_Summey: Hi Rob
Doug_in_CT: My mortgage guy was saying that the good faith estimate I
have from Indy Mac is nothing but "bait and switch."
Roger_Dawson: Doug, it’s amazing how many different programs mortgage
brokers offer these days.
Al_Lee: Mike, I did put my plane on a leaseback program and I actually
leased it from myself when I wanted to fly it. Ti got audied by the IRS and they
said it was a personal luxury, but when I shoed them the lease and the records,
they gave up and allowe it all as a legit business expense
Rob_FL: Hi
Mike_Summey: Hi zert
Shane: I have until wed to close on 32 units, cutting it close
zert: hello everyone
Mike_Summey: Doug, why did he say that?
Roger_Dawson: Congratulations Shane. Tell us about them.
Doug_in_CT: I have a good looking GFE that indicates at rate of 6.5 and
he says that he called them today, spoke with the district manager and he can
only get 7.1 on investment property.
Mike_Summey: Al, I’m of the opinion that an individual should not own a
plane unless he can pay cash for it and not have to have tax breaks to support
it. It is a luxury, so just admit it and go on.
Al_Lee: Doug, Indy Mac is a good source for investor loans, but they do
stick you with lots of "junk fees" that you have to pay, or not get
the loan.
Mike_Summey: Gabriele
tm4mulator: How do feel about interest only loans for refi on investment
properties
gabriele: hi everyone, my first time in this chat room
Kim-OH: welcome to the chat gabriele
Al_Lee: Doug, Indy Mac is a good source for investor loans, but they do
stick you with lots of "junk fees" that you have to pay, or not get
the loan.
Mike_Summey: tm4, I don’t like interest only loans. Al loves them.
Bruce: Hi Gabriele, welcome
Doug_in_CT: So He (my Concord Mortage Broker) is saying that Indy Mac is
just doing a bait and switch on me. But I replied that I have a locked rate in
writing. He replied "not worth the paper it is written on." I told
him, I have to find out.
Mike_Summey: I like to get properties paid off. the cash flow gets reall
great then.
Al_Lee: Doug, i have gotten better loans from other lenders who sold the
loans to Indy Mac after I made the first payment–go figure!
tm4mulator: what about for the short term
Roger_Dawson: I’d say do an interest only if you have to to make the
numbers but anything you can pay down on the loan is wealth building.
Mike_Summey: Doug, if you have it in writing, I’d hold their feet to the
fire.
Shane: Thanks Roger, I am trying to use equity on another property I have
and the apprasals has not come in yet. So everything is up in the air yet.
Doug_in_CT: That is what I am planning on Mike. I will let you know how
it comes out.
gabriele: I bought our first investment property and I think I did
everything wrong. Bought it on a creditline, but the payments are high because
they are based on a 15 year loan. Any suggestion ?
Al_Lee: RE: the Good Faiteh Estimate, there are laws governing the
"good faith" aspect of that. They are called "respa"
Mike_Summey: If this is you’re first chat, how about letting us know what
part of the country you’re from.
tm4mulator: Im in Greenville, SC
gabriele: We live in northern California, 3 hours north of San Francisco
Doug_in_CT: I am very excited about the appraisal on the investment sfh
we bought less than two years ago for $150,000. The new appraisal came back last
week for the refi at $210,000. I figured that my $20,000 acquisition cost had
increased by 100% each year for the last two years.
Mike_Summey: Hi Eddie
Al_Lee: Roger, i say do an interst-only loan only if the bank will give
you one!
Eddie: hey everyone
Roger_Dawson: Gabriele, you need to keep moving the rents up. You might
think of inexpensive improvements you could do that would justify a rent
increase.
Doug_in_CT: If I had’nt of heard Mike Summey say that his real estate has
been compounding at 100% I would hardly believed it.
Mike_Summey: Gabriele, are you currently ina negative cash flow
situation?
Al_Lee: btw: Roger and Mike–MarkCT says to say hello. he may not be here
because of commitments to family, but will try.
tm4mulator: Should I increase the rent the 1st year?
Roger_Dawson: Doug, that’s a great rate of return.
Doug_in_CT: I learned it at the feet of the masters.
gabriele: In the closing the repairs made to the house were almost 30,000
and the family that lives there has a contract for a year at a set rate.
doug195: 2nd chat, but I should tell everyone I’m located in New Jersey
(right outside of Philadelphia)
Doug_in_CT: present company included.
Mike_Summey: tm4, I try to increase rents a little each anniversary of
the lease.
Ralph_Roberts: My renter told me that he lived in the same house for 10
years. When I checked, I found out he’d still be there today if the Governor
hadn’t pardoned him.
gabriele: Yes, with the payments on the creditline we are in a negative
cash flow
Rob_FL: Mike, how much is "a little" rent increase? $10? $25?
Roger_Dawson: Good one Ralph
Doug_in_CT: Sounds like some of my tenants Ralph
Bruce: Mike, if rents are at the top of the market, the tenant is on time
every month what % do you increase the rent?
Al_Lee: Ralph, he apparently lived in a big house!
Doug_in_CT: THE big house.
gabriele: I heard that we should not re-finance and get a regular
mortgage for about 6 months, is that right ?
Al_Lee: He probably also said he graduated from Penn State, but it was
the State Pen
Mike_Summey: Rob, a "little" is whatever amount you can get
without running the tenant off. the amount of the rent has a lot to do with it.
You can increase a $1000/mo rent by $25 easier than you can a $400/mo.
Shane: Roger, If everything works out I will take over the 32 units
Thurs. two yrs ago rents were 25 higher ther but do to softer mkt and
renovations it was lowered. Should I raise it? It is at $395 now
Mike_Summey: Bruce, if rents are already at the top of the market, you
probably will only be able to increase by the amount of inflation.
Al_Lee: With long-term tenants if you keep the rent just a hair below
market, yo will save a lot of money in leasing costs and make-ready. the tenant
worn; likely move if they can;t get as good a deal elsewhere.
Roger_Dawson: I think a five percent increase each year is very
reasonable. Ten percent and you need to give them a reason.
gabriele: We bought out of state, because our area is very small and the
property prices have gone through the roof. A total fixer upper would be no less
than 325,000. So we looked elsewhere, which is a little harder because we have
to do everything by phone
Al_Lee: worn is "won’t"
Kat: Who collects these rental increases? You or your managers?
Mike_Summey: Gabriele, you will be able to get a better deal on a
refinance after you own the property for about a year.
Mike_Summey: i David
david_in_sf: hi there
Kat: Back to my question Mike
Mike_Summey: Kat, my property managers collect all rents. They just make
an adjustment in the monthly rental each time a lease renews. Usually not a lot,
but every little bit helps.
gabriele: yes, that’s what I was told. So in the meantime, shall we leave
this on the creditline?
Rob_FL: On the average, how much is it costing you to replace a tenant
and he left the house in average condition?
Roger_Dawson: Be sure you increase rents a little every year. 5% a year
is much easier to get than 10% every second year.
Mike_Summey: Gabriele, are you paying interest only on the credit line?
Kat: Sorry, I wqas impatient
Al_Lee: Rob, if you can do it for one month’s rent you have done a really
good thinkg. Usually you will lose soem rent, a month or two, plus have costs,
etc. If yo use a professional manger as you should, yo will likely also pay a
commission to a realtor for finding a tenant.
Mike_Summey: Rob, that varies. When the market is tight we often put one
tenant in the next day after one moves. In slow times it may take a few weeks.
Mike_Summey: Hi jfinger
gabriele: No, I thought that this is what I was getting, but I was
mistaken and the creditline is based on a 15 year loan, making the payments
higher than what comes in as rent. I feel I’ve made a mistake there and have to
wait now to get out of it
Eddie: anyone know anything about usda autions
Eddie: auctions
Doug_in_CT: I made my trip to the accountant on Saturday to get ready my
personal return. I really had a lot of write offs this year. I was able to put a
number of my trips down as "continuing education" as I went to some
real estate training events.
Roger_Dawson: Eddie, US Dept of Agriculture?
Eddie: yes
gabriele: I’d loke to keep buying real estate, but now I’m afraid that
I’ll do it all wrong again.
Doug_in_CT: I think holding a real estate training event in a wonderful
vacation idea is likely to get a good response.
Al_Lee: gabrielle, in what state did you buy?
Mike_Summey: On the question of small rent increases. As you get more and
more properties the small increases really start to addd up. With the properties
I currently own, and average $25/mo increase amounts to well over $100,000 per
year.
gabriele: Washington
Eddie: I sat in on one the other day and saw a $100,000 shf go for 50
Roger_Dawson: Eddie, this is new to me. Tell us more.
Mike_Summey: Hi Larry
Larry_Hoffman: Hi Mike
Doug_in_CT: My accountant encouraged my to forget about the chattle on my
six single famly houses. He said it would make more sense it I had a 24 unit
apartment complex.
zert: Mike - if my math is correct that is a LOT of properties!!
Larry_Hoffman: whats the topic tonight
Larry_Hoffman: Hi Roger
Eddie: My wifes brother told us about usda’s web site and that they had
homes for sale there. I pulled it up and found two being auctioned in my area.
Roger_Dawson: Hi Larry! Don’t think we have a topic, so dive in.
gabriele: We are looking in Arizona, and the market seems to be going
crazy there too. How can one buy let’s say a 160,000 property with 10,000 down
and come out ahead, if the rents are only about 950 ?
Larry_Hoffman: cool… I in the process of buying a 12 unit multi-family
Al_Lee: gabrielle, you can’t. Have you looked in Texas?
Mike_Summey: Doug, don’t listen to him. Keep the sfhs & gradually
move into apartments. One of Roger & my best friends nearly lost everything
he had taking that kind of advice.
Larry_Hoffman: nd maybe 2 4-families as well
gabriele: Not yet looked in Texas. Are the prices lower ?
Rob_FL: Can I take a poll? How many properties do you have for rental?
Doug_in_CT: No Mike, I am not planning on selling, I am just not going to
worry about appraising my chattle in them.
Al_Lee: gabrielle, absolutely, and rents are higher. If yo will go to
http://www.TurnkeyInvestments.net yo will see actual examples. You will be
amazed!
Doug_in_CT: For me, in my lowly bracket, it just isn’t worth the trouble.
Mike_Summey: I’m an advocate of moving slowly and deliberately. Build a
solid base before moving on to larger properties.
Roger_Dawson: What does appraising a chattle mean? That much be an East
Coast expression.
zert: Doug - what is chattle??
Doug_in_CT: The contents of the properties, ovens, refrigerators,
curtains, carpets.
gabriele: So, should I just forget about Arizona or should I hope for
appreciation there?
Al_Lee: Chattle is what they call cows in Italine, no?
Al_Lee: Italian
Larry_Hoffman: the 12 family has a rent role of 47,570/year
Doug_in_CT: It does seems to be appreciating fast in AZ, but the rental
market seemed soft to me when I was out there on a bus tour with Dolff DeRoos.
Al_Lee: gabrielle, keep what you have bought until it makes sense to sell
it, but don;t buy more negative cash-flowing properties.
Larry_Hoffman: my NOI becomes after all the expenses of 20,445/year
Mike_Summey: Larry, that calculates to about $330/mo/unit rent. Sounds
like a low income property.
Mike_Summey: Hi albie
Eddie: Roger you can go the the usda’s site at www.resales.usda.gov
Roger_Dawson: Thanks Eddie
Larry_Hoffman: the rents range from 315 to 355
albie333: hello mike
tm4mulator: Mike, are you speaking in SC or NC any time soon
Al_Lee: gabrielle, the good thing about real estate is that time heals
all wounds–eventually. If you make a mistake and can hol don, it will be OK in
the long run. Just don’t make so may that yo get washed out of the game.
gabriele: No, I don’t want to buy more negative cash flow properties. It
makes no sense. That is not going to get me where I want to go for the future.
Mike_Summey: tm4, I’ll be in Charlotte on june 4 and
Greenville/Spartanburg area on June 11
Doug_in_CT: Mike, do you have any interest in going on to the
Massachuesetts Wealth Builders after your trip to ctreia?
Larry_Hoffman: hey mike how did you calculate the 330/unit
Doug_in_CT: I could ask them if they would like to invite you while you
are up in the area.
Al_Lee: gabrielle: in our club we do only positive cash-flowing
properties. We even avoid neutral cash flow unless it happens to us by mistake.
Mike_Summey: Larry, I bought 43 units that were bringing in about
$70,000/yr, spent $1,500,000 on renovations and today they bring in ove
$350,000/yr.
gabriele: I feel that I need a mentor that I can run things by before I
go out and buy any more properties. Anybody there that can help me?
tm4mulator: Mike, the info be posted on your web site for G’ville/Spartanburg?
Where?
Larry_Hoffman: Mike, man that is great… Thats what I would like to do
with this one
Doug_in_CT: They are in the house.
Roger_Dawson: Hi sermiex
Mike_Summey: Doug, is that an event of a group you want me to speak to?
Al_Lee: gabrielle: that is what I do. Look at the website I referred you
to.
Mike_Summey: Hi sermiex
Bruce: Gabrielle, Mike, Al Roger do a great job on these chats to help
you.
Roger_Dawson: Thanks, Bruce
zert: many mentors like Mike/roger and Al plus the rest of us here every
week
Doug_in_CT: Yeah, the MA wealth builders has a meeting of about 75-100
investors at their meetins.
Larry_Hoffman: Mike, do you think the 330/month is too low
Mike_Summey: The events will be posted to the website calendar this week.
gabriele: thanks, I need to know that I am not alone out there
sermiex: Hi Roger, Hi Mike, Hi All
Bruce: Larry, are they one bedroom? 2 BR?
Al_Lee: Hi sermiex
Mike_Summey: Larry, I don’t know. It sounds low to me.
Mike_Summey: Hi nico
nico: good day
Larry_Hoffman: 2 bedrooms
sermiex: Hi Al
Doug_in_CT: 2 Bedrooms in CT rent for $700/mo.
gabriele: So, should I just forget about Arizona ?
Larry_Hoffman: would you stay away from this one?
Bruce: Larry, that would be low for Nashville
Roger_Dawson: Low is good unless it’s in an area you’d be scared to walk
in during the day.
Doug_in_CT: I read that the Californians are overrunning the place. On
the bus trip I met several ca’s who had bought about 30 sfh’s in and around
Phoenix.
Shane: It’s all relevant to what you pay for it and what your expeses
are.
Mike_Summey: Larry, I had 12 one bedroom and the rest 3 bedroom units.
When I bought it it looked like a war zone. I kicked everyone out in 30 days and
started at one end and renovated every unit. Rents were $125 - $175. I brought
them to $600 - $750
Larry_Hoffman: its a really nice area of town
Larry_Hoffman: WOW
Roger_Dawson: Larry it sounds great to me.
Doug_in_CT: Location , 3x
Al_Lee: gabrielle: I tried to spread to AZ a couple of years ago and
foudn that prices were too high and rents too low, so I gave up on it. I have an
article I wrote a while back that tells why I buy in Texas and there are soem
very compelling reasons. Mike, of cours, has done really well in NC and SC, too.
But, I have established a large network of support services in texas and that is
where I invest in residential properties. I do buy elsewhere for commercial, but
not for residential
gabriele: I’ve got to go,thanks everyone, see you next week
Mike_Summey: Larry, can you renovate and bring rents up significantly?
Al_Lee: so long
Larry_Hoffman: right now its in pretty good condidtion
Larry_Hoffman: oops condition
Mike_Summey: Goodnight Gabriele. Thanks for joining us.
Mike_Summey: Larry, what town is it in?
Doug_in_CT: I heard Wright Thruston extolling on the benefits of
improving the "curb appeal" of Apartments and how it made much more
impact than interior improvements.
Larry_Hoffman: its in Cincinnati
tm4mulator: Mike, I’m having a hard time selling a property. All my
investors freinds keep saying sell, sell, but taking your advise is not to sell.
By the way, I hired a property manager last month…Thanks.
Kim-OH: Larry, where in Cincinnati?
Kim-OH: Larry is it on Hamilton Ave?
nico: question — I have been looking at some 6 unit apartment buildings
and the cap rates are about 6.5% and have cashflow of about 4 to 5000 per year
– does that make sense
Mike_Summey: Larry, I’m not familar with Cincinnati, but the rents sound
very low to me.
Larry_Hoffman: Kim, yes it is
Larry_Hoffman: Did you look at this one
Shane: I use to live in Cincinatti
Kim-OH: Larry I just ran the numbers today lol
Kim-OH: Shane, small world
Rob_FL: Al, is your Tortoise Club mainly for Texas or how will it benefit
me in Jax, FL?
Mike_Summey: nico, do you own other properties?
nico: yes I own a couple of houses and a triplex
Larry_Hoffman: Kim, I ran them the other day and made on offer
Larry_Hoffman: oops an
Larry_Hoffman: not on
Larry_Hoffman: 
Mike_Summey: nico, can you buy the property so it will at least break
even after debt service?
Kim-OH: Larry I understood what you were saying
Al_Lee: Rob: We have members nationwide, NY, FL, CA, TX, IL, etc. They
buy properties in Texas, though. We have a full network of services to manage
everything so you never need to get yoru hands dirty
nico: yes the profit i mention of 4000 to 5000 is after all costs and
debt servicing
Mike_Summey: nico, if you can do that, I’d buy it.
Kim-OH: Larry make sure the taxes get paid off, boy are they delinquent
nico: i always thought that the cap rate should be as close to 10% as
possible
Larry_Hoffman: I calcualted what the taxes would be if the 325K was
paid… Its 7300/year
Mike_Summey: nico, forget CAP rates. If you can buy the property so that
it will cover expenses and debt service, the longer you own it the wider the
margins will get.
Larry_Hoffman: His utilites were off as well… I called cg&e. Its
6403/year not 5107/year
Shane: Ithink caps of 10.5 to 12 are good
Roger_Dawson: Doug, I first met Wright Thurston about 20 year ago when he
left IBM to go on the speaking tour. He’s a good guy. His point about improving
curb appeal of apartment buildings is a good one. It takes some capital but it
pays off.
Kim-OH: I think that the current owners are about 15K in the arrears
Bruce: Larry, also check for other liens. Such as vegetation lien.
Larry_Hoffman: Thats what the realtor told me
Al_Lee: nico: cap rate does not consider debt service, which can make a
high cap rate lose money or a low one make money. There are two components to a
"deal", the property and the financing.
Kim-OH: Larry another strike by the Denhardt family LOL
Larry_Hoffman:
doug195: anybody buying in southern new jersey right now ?? seems like
such a sellers market here, that it is going to be very tough to find a single
family home that will break even. Seems to me that duplexes are priced right
though.
Rob_FL: Al, it seems like what you do require is to have people who will
put 20% down on a property, right? Do YOU find the properties?
Larry_Hoffman: Kim, did you make an offer on it
nico: with my calculations I am assuming rents will stay the same and I
can lock into long term financing at current interest rates
Doug_in_CT: Roger, I heard him at the NYC wealth expo with Trump, Summey
and some other big names. As a former seminarian (student studing to be a
preacher) I was very impressed by what was happening in that little room.
Kim-OH: Larry nope, I am watching another property
Roger_Dawson: However, a CAP rate does take into account all the
expenses, such as maintenance, insurance,
Roger_Dawson: taxes, utilities and management.
Larry_Hoffman: Kim, where in cincinnati are you located
Mike_Summey: Hi major
Kim-OH: Larry, I live in Milford and you?
Larry_Hoffman: westerhills
Kim-OH: Larry are you a member of Cincinnati reia?
Bruce: Roger, any negotiating tips tonight?
Al_Lee: Rob, Yes, I do find the properties, but you can buy with 20% or
10%, or other terms, if you like. I like 20% down (that is how I buy) because it
is easy to get great interest rates on 30-year fixed-rate loans with 10-year
interest-only periods. That give terrific cash flow.
Larry_Hoffman: yup
Doug_in_CT: Later when I was listening to Wright’s tapes, I realized he
was just using several techniques that he describes in the tapes. It was close
to hypnosis .
Kim-OH: Larry are you in the Peterson’s group?
Larry_Hoffman: I just joined last week
Kim-OH: Larry welcome to reia
Al_Lee: Rob, on the website I always persent the properties as if you
will buy with 20% down, but I also give you a spreadsheet that you can use to
compute different arrangements
Larry_Hoffman: I was a memeber a few years ago
Mike_Summey: Hi patcho
Larry_Hoffman: thanks
Roger_Dawson: Negotiating never changes. Ask for more than you expect to
get and develop alternatives.
patcho: HI Mike
Kim-OH: Larry how long ago?
tm4mulator: Al, do you recommend a down payment?
Mike_Summey: Mike Stanton, how are you tonight?
Larry_Hoffman: about 5 years ago
patcho: fine thanks and yourselves?
Al_Lee: tn4… I recommend 20% down, but you can do well with other
formats.
Kim-OH: Larry b4 my time, I was a trustee for a while
Larry_Hoffman: so you know vena?
Al_Lee: Kim, what prison? lol
Kim-OH: Larry
Kim-OH: Indeed
Kim-OH: LOL @ AL
Larry_Hoffman: I don’t know Al
nico: has anyone ever considered investing through an organization like
2020properties.com
Mike_Summey: indianheadlake, are you just observing tonight. Feel free to
jump in anytime. Where are you from?
Kim-OH: Larry, did Vena do the join reia spiel?
Roger_Dawson: What’s that Nico?
Bruce: Roger, can you give us a few examples you’ve used as alternatives
in a RE negotiation?
Doug_in_CT: Nico why would you want to dilute your oppotunities by
deworseifying?
tm4mulator: Al, do you like the interest only on refi (5 yr.)? I am in
the process of refinancing 4 properties with 5 yr. Int. over 30 fix
Rob_FL: Al, so there’s no way to buy with no money down for your
properties?
Larry_Hoffman: Actually I joined through there web site
nico: it’s a company that buys condos etc and manages them for you. You
get the title and have the choice to manage through them or on your own
Kim-OH: Larry, have you been to a meeting recently?
Al_Lee: tm4…I like the interest-only period, unless they bump the
interest rate too much for the consideratin of having an interest-only period
Mike_Summey: How would leveryone like it if I invited a senior bank
executive to join us one inght to discuss financing alternatives?
Larry_Hoffman: this coming one will be my first one in over 5 years
Kim-OH: Mike, I would love that
Doug_in_CT: *choochoo* *choochoo*
doug195: Mike I think that would be great
Bruce: Mike, that would work well, especially if he can loan outside his
region
tm4mulator: My int. will be fixed for 5 yr.
Doug_in_CT: Is he an honest banker?
nico: Doug in CT — I don’t understand your question
Al_Lee: tm4…positive cash flow is the name of the game. That makes
banks want to loan you more money–all your peroperties are making money and you
hav elots of profits
Mike_Summey: I’ll see what I can arrange within the next couple of weeks.
Kim-OH: Larry, I may be there or I may not,. If you attend and look for a
woman with a cane that will be me
Doug_in_CT: Condo’s ususally have organizational fees right?
tm4mulator: Thanks..I needed to hear that
Larry_Hoffman: Kim, ok
Mike_Summey: Larry, she will beat you with it if your get out of line.
Kim-OH: Larry, do you know Vena?
Kim-OH: Mike that’s the truth
Larry_Hoffman: thats what I’m affraid of
Larry_Hoffman:
nico: doug - yes condos usually have condo fees that take care of outside
maintenance and some common utility costs
Kim-OH: Larry, how long have you been investing?
Al_Lee: tm4… I preach to everyone to get a 30-year fixed-rate loan
(with interest-only period in the front) because rates will go up and the
fixed-rate will be money in your pocket
Mike_Summey: Bruce, if I bring a bank executive as a guest, it will be to
answer questions about financing, not to make loans.
Larry_Hoffman: about 9 years
Larry_Hoffman: I’ve done a lot of lease options
zert: Incidentally, I am seeing more fsbo properties available the past
few weeks
Kim-OH: Larry, yikes and now the city changed the rules
Doug_in_CT: Nico, it is just a loss of control of expenses, when there
are other vehicals without that drawback.
Larry_Hoffman: Kim, I know
Bruce: Mike, thanks,
Mike_Summey: Has anyone noticed the cooling that is taking place in the
real estate market.
Larry_Hoffman: thats stinks… 1.5 times the ammount of rent for option
money
Mike_Summey: As rates continue to rise, you are going to gradually see a
switch from a seller’s market to a buyer’s market.
Kim-OH: Larry have you met Vena?
tm4mulator: Al, are you concern with all those loans appearing on your
credcit reports? Is it a negative or positive?
Doug_in_CT: Maybe a little here. But I think the train was going so fast
that it will take a long time for it so slow down.
Kim-OH: Larry, yup that stinks alright
Larry_Hoffman: Kim, I haven’t met here yet
nico: mike- yes i have noticed a cooling. Places seem to stay for sale
for longer
Bruce: Mike, I’ve noticed more "price reduced" in the last two
months.
Roger_Dawson: An article in the LA times said that Boston, San Francisco
and San Jose are the most overheated markets. The most likely to drop in value.
Eddie: Mike it sure seems to have cooled down here in eastern nc
Kim-OH: Larry, Vena lives in Covedale
majormichaelstanton: Hi Mike
Larry_Hoffman: I thought she did. I saw here out one day
Mike_Summey: It’c coming everyone. Put yourself in position to take
advantage of the deals when they come.
Al_Lee: All my properties produce positive cash flow, wo I have lots of
income to offxet the debt service. I am able to get more and more loans even
though I already have dozens of loans for millions of dollars
Mike_Summey: Hi campbell
Al_Lee: tm4… my fico score is near 800 even though I have all that
debt.
Doug_in_CT: What is your secret to the high fico Al?
Kim-OH: Larry, Vena’s reaction to the new lease option regs is to sell
off all her properties in the city
Larry_Hoffman: I don’t think thats the way to do it… You can still make
money on the back end
Al_Lee: Doug… pay your bills on time, don;t use credit except for
things that make money, only buy positive cash flow properties
Doug_in_CT: Do you have a heloc on your home Al?
jcampbell: Hi, I am new to this website and just happened to notice this
chat. I was wondering if you had any advice on getting started in real estate. I
just purchased the book and it should be arriving soon. I am a college student
and am not happy with the way my life is going so hopefully real estate will set
me free
nico: where can I learn more about lease options
Larry_Hoffman: or raise the rents… I usually make it up on the backend
Mike_Summey: Doug, the secret to a high fico is pay on time, maintain a
strong cash reserve, have no consumer debt.
Kim-OH: Larry, I agree but a lot of folks have left the city for those of
us who are not concerned lol
Al_Lee: Doug… no, I don;t because I don;t need one. I buy propertie
susing the cash from incoming rents as down payments fo rmore houses. I think a
heloc is a good idea for someone who needs to rais cash to buy income
properties, though
Mike_Summey: campbell, real estate will set you free, but not without
doing your time. Investing in real estate is a sure way to wealth, but it is not
a get-rich-quick scheme.
Roger_Dawson: Jcampbell, when you read the book you’ll see that we laid
out the whole program in very easy to understand terms. You’re start to get
started investing while you’re young.
Larry_Hoffman: there are so many townships that the reg doesn’t apply too
Roger_Dawson: You’re smart
Kim-OH: Larry that’s where a lot of folks are moving their investing
doug195: ok i’m out of here folks…talk to you next week
Kim-OH: night doug
Larry_Hoffman: there are so many properties to choose from
Mike_Summey: Goodnight Doug
Ralph_Roberts: GOOD NIGHT DOUG
Ralph_Roberts: "The best investment on earth is earth." –Louis
J Glickman, real estate owner
jcampbell: Thank you for the compliments. I am very excited and looking
forward to reading your book. I think it is quite a good thing to have a
web-site like this. Do you recommend I purchase the program as well as the book?
Mike_Summey: Words of wisdom from the Ralph!
Doug_in_CT: Ralph, shoudn’t it be "rented earth."
Ralph_Roberts: you gotta own it afore you can rent it
Ralph_Roberts:
Larry_Hoffman: Kim, did you make an offer on the 12-unit
Mike_Summey: jcampbell, the advantage of owning the audio program is that
is allows you to put in a CD and listen to what you are supposed to be doing
while you are actually doing it.
Al_Lee: Ralph, unless you leae it with the right to sublease
Kim-OH: Larry, no I’m watching another property
Doug_in_CT: Too True, Too True, but certain parts of the Saraha desert
would not be the best investment.
Roger_Dawson: Jcampbell, the CDs are great to listen to when you’re
driving around looking for properties. Good Stuff!
Al_Lee: Doug… they said that about the land where Las Vegas now sits
once, too lol
Roger_Dawson: I need to leave now, thanks everyone.
Mike_Summey: Doug, Saraha may be a good investment if youa r in the sand
business. There is a use for everything.
Bruce: good night
jcampbell: I am a little worried about the market that I am in though. I
live in Mississippi. I also think that once I get started people will not want
to do business with such a young adult.
Mike_Summey: Goodnight Roger
Doug_in_CT: When my car antenia broke for the second time in the car wash
I resolved not to fix it agin. So now it is only "four wheel
university" for me.
Larry_Hoffman: I got financing at 5.5% 4 year fixed for 30 years
Al_Lee: jcampbell, if you are using a property management company, no
tenant will know how old you are
Larry_Hoffman: 90% LTV with no PMI
Mike_Summey: jcampbell, don’t worry about age. People want to do business
with people who are honest and who pay their bills. Do those things and you
won’t have trouble.
Doug_in_CT: That sounds good Larry.
nico: could anyone offer me info on where to learn more about lease
options
Kim-OH: Larry, did you use our investor friendly bank in Clifton?
Larry_Hoffman: with the number I can offer the owner of the 12-unit
either 300K or 325K with seller financing
Larry_Hoffman: I used franklin savings and loan
jcampbell: do you offer any live seminars?
Kim-OH: Larry, I think they are looking for money to pay off the taxes at
least
Mike_Summey: nico, there are several book on lease options. Check Barnes
& Noble’s real estate section.
Larry_Hoffman: Thats what I’m thinking as well….
Larry_Hoffman: I wanted to see what there motivation is
Doug_in_CT: Nico. The feller by the name of Louis Brown out of Atlanta
has a tape series on the subject. You can google him up.
Kim-OH: Larry, what realtor do you use?
Kat: Good night Mike!!!
Mike_Summey: jcampbell, yes, I do several live events each year. I’m
going to start putting them on the events calendar on the website. Look for some
of them to start showing up this week.
Mike_Summey: Goodnight Kat
Mike_Summey: Hi jmorgan
jcampbell: off the top of your head, do you know of your closest show to
the Mississippi Gulf Coast?
Mike_Summey: Where are you located jcampbell
Larry_Hoffman: Vicky Johnson for coldwell
Kim-OH: Larry, do you like her?
Larry_Hoffman: yeah, she pretty good
jcampbell: Hattiesburg, Mississippi. Home of the Southern Miss Golden
Eagles
jmorgan: Hi, Mike. I’m interested in knowing if anyone has financed with
MTA Index Mortgages. If so, how has it worked out.
nico: thanks for all the help tonight people. Good night.
Mike_Summey: jcampbell, I don’t have anything in that area schedule at
this time, but with the upcoming promotion for the Mindset book I will probably
be all over the country.
Kim-OH: g’night nice
Shane: Thanks Guys, Good night
Mike_Summey: jmorgan, I haven’t. maybe someone else know something about
them.
Kim-OH: Goodnight all, thanks for the chat
jcampbell: Sounds good. What kind of investment do you think would be
better to get started. Foreclosures or auctions. I realize deals come in
different packages. I am just wondering what would be best to get my feet wet.
Kim-OH: See you next week
Larry_Hoffman: c-ya kim
Larry_Hoffman:
Kim-OH: cya Larry
Mike_Summey: I will try to update the calendar in the next couple of
days. I’ve been a bit slack in that area. Sorry! We will have chats every Monday
in April.
Al_Lee: Mike, it was great fun as usual
Mike_Summey: Next Monday is Roger’s birthday.
Larry_Hoffman: Mike, even with the rent being low. Do you think this
would make a good investment property as long as the NOI will cover all the
expenses?
jmorgan: It’s indexed off 12 month Treasury Average. Provides payment
options from 1.25% minimum (deferring interest) to full payment of interest and
principal. It adjusts monthly. Supposedly provides maximum flexibility and
increase in cash flow.
Al_Lee: I am meeting Roger for dinner on the 6th here in Big-D
Al_Lee: I’ll wish him Happy B-Day
Al_Lee: I need to get on to family obligations now
Mike_Summey: larry, if the numbers work and the property doesn’t have a
lot of deferred maintenance it will probably make a good investment.
Doug_in_CT: Thanks Mike, I will look for more good infor on Monday’s.
Happy B-Day Roger *choochoo*
Al_Lee: Goodnight
Larry_Hoffman: thats what i thought
Mike_Summey: I’m going to have to go also. Goodnight everyone. See you
next week.
Larry_Hoffman: thanks mike
Larry_Hoffman: a
Doug_in_CT: Good night , see ya next week , same time, same station.
Ralph_Roberts: night, Mike
Larry_Hoffman: c-ya guys
jcampbell: Thanks for the help. Looking forward to next week
zert: thanks Mike and everyone
Ralph_Roberts: transcript will be posted shortly in the transcript area
zert: take care Ralph
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