Chat 4-18-05
Posted on April 18, 2005
Ralph_Roberts: hi guys
Al_Lee: Howdy. Looks liek we’re a few minutes early.
Steve: Hello everyone!
jlbburn: Hi all
Al_Lee: SteveH. Use my spreadsheet tool and you will always knwo exactly
what it is worth
Steve: I can’t believe I missed last week’s chat - I heard it was a good
one
mrjones30: Hello
mrjones30: Yes it was
Ralph_Roberts: last week’s chat was fantastic… tonight should be good
as well.
Steve: Any guests tonight?
mrjones30: I just started coming here just recently and I have been
hooked ever since.
mrjones30: Question: What is a tax abatement?
Steve: I have been traveling so much I have missed the last few weeks
Ralph_Roberts: I’m not sure about tonight, I believe Mike has several
guests lined up for the next few chats
Ralph_Roberts: he’ll tell us, I’m sure
Ralph_Roberts: hi gabi, mark
MarkNC: Hello everyone
gabi: Hi everyone
Al_Lee: Hello, Mark
mrjones30: Hey Mark
Steve: Hi Mark
jlbburn: Tax abatement is used by municipalities to encourage
investment….
Ralph_Roberts: hi Bruce
Ralph_Roberts: there’s Mike Summey!
Bruce: Hi Ralph
Al_Lee: Hi, Mike
Mike_Summey: Hello everyone!
Steve: Hi Mike
Ralph_Roberts: Summey
Bruce: Hi Mike
Ralph_Roberts: that’s him
gabi: Hi Mike,
jlbburn: …it simply means that the municipality will
"forgive" taxes for a stipulated period of time
MarkNC: I spent most of the day traveling and listening to MIke’s first
book then had a friend who had bought me a copy of the new one. I feel like I
have spent the whole day with Mike and Roger.
Mike_Summey: Looks like we’re off to a good start tonight.
jlbburn: Hello Mike
MarkNC: Hi Mike
Mike_Summey: Mark, that must have been an interesting day.
gabi: Hi Al, I sure was sorry that the seminar in San Francisco got
postponed. I’ll see you there in May though
Ralph_Roberts: got up a good head of steam here and shoveling more coal
into the server… it’s perkin’
Mike_Summey: Hi Ray
Ralph_Roberts: hi Kim
Mike_Summey: Hi Kim
gabi: Hi Kim
Mike_Summey: Al, are we still a go for Sunday?
Al_Lee: gabi, Right! I am looking forward to beign there. May is a nice
month to be in SF, anyhow, isn;t it?
Kim-OH: Greetings All
mrjones30: Awesome….Thanks J
Ray: Hi Mike
Al_Lee: Mike, We are a GO
Mike_Summey: Hi Paul
jlbburn: What’s happining Sunday?
Paul_CA: Hello Mike, Hello everyone.
Steve: Is ROger going to be here tonight?
gabi: Hi Paul
Mike_Summey: Al, there are big things brewing for radio the first week in
May.
Al_Lee: Mike, we are a GO for April 30, not this coming Sunday.
Mike_Summey: ooks like I will be g=booked all across the country.
Bruce: Mike, last week you asked what we were seeing in the marketplace.
You stated "get ready", what trend are you seeing in the short term
i.e. next 6-12months?
Mike_Summey: Steve, he is supposed to be here.
Al_Lee: Mike, I how you don;t get the big head
Mike_Summey: Hi Dean
MarkNC: HI Dean
Dean…Weaverville: Hi everyone
Al_Lee: Mike, did you get that message about pril 30 ?
Ralph_Roberts: hi Dean
Steve: Hi Dean. I was just in Weaverville last week
mrjones30: Hello Dean
Mike_Summey: Bruce, I think we will see an real increase in foreclosures
and people in trouble for other reasons as interest rates rise.
Al_Lee: Mike, if you want to go on air this coming Sunday, just tell me
and I wil rearrange the schedule.
Mike_Summey: Al, NO! What message?
Mike_Summey: Al, do you need someone b=for both Sundays?
Paul_CA: I have been trying to get on a foreclosure list…Any
suggestions Mike? Others?
Al_Lee: Mike, You are booked with me for April 30, not this coming
Sunday. I can change that by rearranging the schedule, if you want to.
Bruce: Mike, that’s what I thought you meant, thanks for the
clarification.
Mike_Summey: Al, Apr 30 is what I have.
Al_Lee: Mike, I can use you or you and Roger both Sundays if you like. I
have a guy booked this Sunday who is local and flexible, so I can change it more
easily
Steve: paul_ca -lots of websites. iforeclosures.net is a good one. There
is usually some real estate agents who specialize in foreclosures, you just have
to find them and communicate your interests.
Mike_Summey: Al, I could probably do both if you need me to.
Mike_Summey: Hi Michele
jlbburn: Mike….i’m a real estate appraiser as well as an investor. In
my market (Dayton OH) there are some "pockets" where the prices are
astonomical….but a lot of it is a result of seller induced financing, i.e.
down payment assistance programs plus large seller cash contributions for loan
costs, etc. Have you seen stuff like this in markets you’re in?
Brian-ON: Hi Everyone!
Al_Lee: Mike, Let’s do it. I am halfway through the new book. I am not
skimming it, I am reading it. It is terrific!
Bruce: hi Brian
Kim-OH: Hey Joe is that you?
Brian-ON: Hey Bruce
Al_Lee: You can never write another book now because they will compare it
to the "Mindset" book and can never top that.
MarkNC: I agree, Al I read three chapters today while I was driving home.
Not an easy thing to do in the mountains.
Mike_Summey: jlbburn, yes I have seen situation like that several times.
When an area overheats, it is best to avoid it until people come back to
reality.
jlbburn: Hello Roger
Kim-OH: Hi Roger
Bruce: Al, you’re teasing us, we’re on hold to buy the book until May
6th.
Mike_Summey: Hi Eddie, Penny, brf, & others
Steve: Welcome Roger
MarkNC: Hi Roger
gabi: Mike - do you think Arizona is like that - overheated?
Dean…Weaverville: Hi Roger..belated happy birthday
Mike_Summey: There’s ………..Roger
Kim-OH: Gabi, did you get your power back
Roger_Dawson: Hi Everyone! Thanks Dean
Al_Lee: Mike, when I read about your childhood and thought about success
and wealth and stuff I started thinking: "Mike deserves it more than I
do"–Then I thought: "Nah!"
Brian-ON: Hi Roger!
Roger_Dawson: Hi Brian
Mike_Summey: gabi, I’m not familiar with AZ. Possible Roger may know more
than me as he is closer to your area.
Penny: Hello Mike and everyone.
gabi: Kim - Yes, thanks and then I went to San Francisco for a few days.
Paul_CA: Steve, Thanks. I tried some of those foreclosure sites, but they
only offer a location/time for a foreclosure auction. By that time, the property
has already been snatched up.
Mike_Summey: Al, you’re full of it tonight!
Al_Lee: It’s the Cabernet talking!
gabi: Roger - Are you familiar with the Arizona market? Do you think it
is wise to invest there?
Mike_Summey: Paul, why don’t you ask several of your local banks to put
you on their REO lists.
Roger_Dawson: Gabi: I don’t think that Arizona is as overpriced as
California, but it’s had a few good years. The problem with those desert towns
is that there is unlimited land available for new construction, so it holds
prices down.
Steve: Paul_CA, I agree. You really have to do some digging. Some agents
will turn you on to the banks who have the properties even before it goes to an
agent.
Brian-ON: Roger, can you tell me if you know of any Property managers in
the Toronto area thet you have dealt with..I understand you have owned
properties in Canada in the past…unbelievably pm’s are very scarse so far!!
Mike_Summey: Al, I’ll call you tomorrow to confirm this Sunday.
brf: Mike, what percent of deals do you get from working directly with
banks?
Al_Lee: Mike, OK
Roger_Dawson: Brian, no, I’ve never owned property in Canada, so I can’t
help you there.
brf: This is Brian who visited with you about the duplex in Asheville
Mike_Summey: brf, I’ve made several over the years. I’ve also gone
several years without making a single one. It’s a timing issue.
gabi: My power just went out again - it’s incredibly windy here today
Brian-ON: Sorry..thought you had Roger.
Kim-OH: Gabi, I’m so sorry to hear that
Mike_Summey: brf, you did a great job with city council. I watched you on
TV yesterday.
brf: What’s the best way to get in the door with the right people on a
local level, just make an appt. to go visit them
brf: What a ride it was, but they still got me where they want me with
extra stipulation etc at the end
Mike_Summey: Hi Rob
gabi: Roger - I noticed that the rents in Arizona are quite low to make
any kind of positive cash flow work unless you put a lot down - any suggestions?
Rob_FL: HI!
brf: But not bad needing a 6-1 vote to win and being turned down by
P&Z 5-2
jlbburn: Roger…i’ve been studing your stuff for years and use it on a
daliy basis in my business and investing…so I’m no stanger to your negoiating
techniques. I’m also a BIG fan of Mike’s as well now. It’s funny, I’ve been
doing commercial appraisals for years but never really applied that knowleged to
residential investing….which is really what the Weekend Millionare is all
about. Great stuff!
Steve: Paul_CA, I wouldn’t spend all of your time on foreclosures because
they seem to attract too much competition (other investors). There are plenty of
good deals out there from individuals selling their properties.
Roger_Dawson: Thanks jlburn, I appreciate the plug! Spread the word for
me!
Al_Lee: There was a blockbuster news story about a RE conference
involving Sam Zell (largest owner of real estate in North America) and it has
scared the pants of some. I posted a rebuttal to the article at
http://www.renthouses.org/Articles.htm called "The State of Real
Estate"
Mike_Summey: jlbburn, if you think about it, it’s all very simple. If a
deal will make you money … buy it! If it won’t … don’t.
Paul_CA: Thanks Steve. I agree, it has been time consuming, and the
efforts may not be fruitful.
Rob_FL: Over the weekend, I got my first rental filled with my first
tenant! I feel a sense of accomplishment!
jlbburn: It really IS that simple…..
Al_Lee: Rob, contratulations!
Steve: I thought Ted Turner own more real estate than anyone??
Eddie: Mike, do you use many different insurance companies for your
properties or do you try to use one
Mike_Summey: Steve, that’s my understanding too.
Roger_Dawson: Gabi, rent to purchase value may be low in the higher
priced homes, but I think if you go into the working class areas it makes more
sense. (Talking about Arizona)
Brian-ON: Mike do you always offer VTB just in your Purchase Offers or do
you try and find out if they are open to it on the initial phone call..
Al_Lee: I have read that Zell is the largest, but if not, he is one of
the largest. If you count what he controls, as well as owns, he is almost
certainly the largest.
mrjones30: Congratulations rob_fl
Steve: Mike, just for now. I know you’re nipping at his heals. 
Mike_Summey: Eddie, I have all of my properties insured with Nationwide.
My agent is their largest agent and I’m his largest client so it makes for a
good partnership.
MarkNC: I have a realtor trying to convince me that it s easier to buy
land and put modulars up rather than trying to find homes that will cash flow.
Anyone have experience with this approach and have any advice?
Rob_FL: Al, thanks. The house was paid in full. I plan to use the rent
money to feed my real estate marketing engine!!!
Ralph_Roberts: Turner definitely owns more real estate than any one
else… about 1.5% of new mexico alone
Rob_FL: My wife has a much more sense of confidence in me and that makes
a big difference!
Al_Lee: Rob. Sounds like a good plan.
Paul_CA: Gabi, I have spoken to agents in the Phoneix/Tucson area, and
they say it is a soft rental area in AZ, unless you own near Universites or
schools.
Al_Lee: marknc, modular homes may or may not appreciate like real houses.
You have to look at what type of modular home.
Mike_Summey: Mark, I’m considering building some modulars, but haven’t
gotten started yet. It appears to be a good deal, but I won’t know for sure
until I do it.
Roger_Dawson: I think that Ted owns more land than any private invidual,
but not the most value.
Eddie: Thanks, my wife and I were going over our policies today and I was
wondering if it was possible to get all under one group
brf: Mike, do you work a lot with the REO dept in banks just in the local
market or all over the nation, and what is the best way to make these contacts
gabi: Paul - Yes , that’s what I found too, the prices close to the
universities are very high - good for rent but high to purchase
Ralph_Roberts: from Yahoo.com: According to the Forbes article "This
Land is My Land," written by Monte Burke and William P. Barrett, Mr. Ted
Turner individually owns the most land in the United States. Turner’s holdings
are comprise roughly 1,800,000 acres spread across half a dozen states. Compared
to some of his other investments, Turner’s real estate portfolio has performed
admirably. Its net worth is approximately $750 million. Collectively, the
country’s 10 largest landowners own 10.6 million acres. However impressive, that
figures pale in comparison with federal ownership. According to the journalism
research group FacsNet, the federal government owns 624 million acres, or 27
percent of the country’s land.
Al_Lee: Roger, that may be where the confusion comes in. Zell owns income
proeprty, commercial and large-fromat residential, nto much l;and
Steve: Mike, are you afraid of the appreciation (or lack of) on modulars?
Will it matter?
Roger_Dawson: Robert, our banker guest last week said that they view
modulars much differently than mobile homes.
Mike_Summey: Eddie, Nationwide has all of my properties under one big
blanket policy.
Ralph_Roberts: (I LOVE the Internet, it makes ya an instant expert 
)
Mike_Summey: brf, I only buy in this local area.
Roger_Dawson: Ralph, you ought to go on Jeopardy! You’re a walking
encyclopedia!
Rob_FL: Mike, in order to do that, all properties are under your personal
name, correct?
brf: I just thought you may be able to get out of state banks to even
work better with you in the local market???
Ralph_Roberts: thanks, Rog!
Penny: Ralph, I agree with Roger.
gabi: Paul - I’m so new at this that I don’t know about flipping
properties yet.
Mike_Summey: Steve, I think modulars may appreciate similar to stick
built homes, but I’m not sure. I have to build a few and see for myself before I
pass final judgement.
mrjones30: Welcome to the club gabi….
Brian-ON: Gents..I am buying my 2nd property and am wondering if I should
create anonther bank account to keep rents seperate..comments?
Mike_Summey: Rob, No! I hae properties under several llcs all insured
under the same policy.
gabi: Thanks Mrjones30
Paul_CA: Gabi, Yeah, flipping goes against the wisedom I have not
either.
Roger_Dawson: I looked into modulars after Mike showed me some in
Asheville. The construction cost is only about 10% less than stick built.
MarkNC: Brian, seperate from the first, no. Seperate from your personal
account definitely.
jlbburn: It’s important to make the distinction between modular and
"manufactured"….two different animals in my market.
Al_Lee: Brian, I thihk one bank account is fine, but you ought to use
something like QuickBooks to keep up with the bookkeeping
Mike_Summey: gabi, I don’t know much about flipping either. Propeties are
pretty heavy to be flipping.
Al_Lee: Mike, I like to buy houses cheap from "flippers" who
hav egotten themselves in a bind.
Rob_FL: I am shopping for pest control for my rental, what do you
recommend? A one year treatment or one-time treatment or …?
Kim-OH: LOL @ Mike
brf: I always thought modular would be cheaper, but recently found that
pricing for a duplex was considerably cheaper stick built.
Mike_Summey: Brian, Mark’s advice is good.
Brian-ON: LOL Mike!
gabi: Mike - all I want is to find some good properties with some decent
cashflow that work with the formula that you and Roger outline in your book
brf: Numerous modular companies told me small duplex are hard to compete
with when stick building, but once you get larger the savings is much better for
modular
Mike_Summey: gabi, that’s what we are all looking to find.
Al_Lee: Rob, the best pest control is to put your number on the Do Not
Call List
Steve: Many comedians tonight!
Mike_Summey: brf, the duplex you are going to build … stick built or
modular?
Roger_Dawson: Rob: I don’t know anything about pest control, but I did
start a termite company once. On that, my advice is go with the lowest price you
can get. Some of those name brand termite companies can overcharge you
mercilessly.
MarkNC: Roger, I have been told here the difference is larger. Labor
costs drop dramatically here when you get even an hour away so with the modular
you can capture that difference but with a stick built it is much harder.
brf: stick built
Paul_CA: Al_lee lol
DaveO: good evening
Mike_Summey: Hi Dave
brf: I did endless research on it working directly with the factories of
modular companies, and none could compete. I think I am getting a great deal on
the stick built, but also waiting for final pricing from my GC
mrjones30: Hey Dave
brf: I’ll keep you posted on it.
Al_Lee: Paul, at least someone appreciates my wit
Mike_Summey: Did everyone get my email about our guest next week?
brf: Roger, I’ve listened to many of your tape series, and really enjoyed
them. Thanks.
Rob_FL: Roger, do your tenants pay for the pest control? Or do you pay
for it?
Bruce: yes, excited for the guest
Mike_Summey: I spoke with Carleton Sheets this morning and he may join us
as well. I’ll let you know for sure later in the week.
Roger_Dawson: Thanks brf! You made my day!
MarkNC: I got the email, sounds great Mike
Brian-ON: Gabi..stick with the formula and you will end up like me..6
months and I just got financing on my 2nd property! This will make one 4 plex
and one duplex..positive ca$h flow approx $830.00
DaveO: Hey Mike I saw your endorsement on the back of Gary Keller’s new
book!
Mike_Summey: I’m going to try to have a guest banker from a small local
bank, a regional bank, (which we had last week) and one of the large national
banks.
Roger_Dawson: Rob, if the tenants got a pest problem, the landlord would
probably have to pay. If they’re just being fastidious, the tenant should pay.
brf: I hear you can hit the ball pretty straight on the links as well
Roger. I’m in Asheville as well and would love to play when you come to town and
visit Mike
gabi: Brian-ON great job - that’s exactly what I want
Brian-ON: Just keep fighting the fight gabi
Mike_Summey: DAve, I haen’t seen it yet.
jlbburn: I’ve got to run but before I go…..The Weekend Millionaire is a
simple but powerful way to approach residential investing. And if you’ve never
been exposed to Roger Dawson before, The Secretes of Power Negociating is a
fabulous program….and I belive the best selling audio program of all time.
Don’t mean to sound like a commercial, but these guys are very good. Goodnight
all!
Roger_Dawson: Sounds brf, I’d love to play golf with you. But that talk
about me hitting the ball straight is just a vicious rumor.
gabi: Brian - I live so far away from the city that I have to look in
areas outside of where I live. Any suggestions ?
Mike_Summey: Goodnight jlbburn.
brf: On the Modular issue, there are many who say you can not work
directly with the factories, but if you dig in far enough there are plenty who
will
Rob_FL: Al, when you analyze deals on a regular basis for profitability,
do you use your rent_roi primarily or the rent_dcr spreadsheet?
MarkNC: Roger, I mentioned earlier that I was driving much of the day
listening to the Weekend Millionaire book on tape. Part of the reason for my
travel was to buy some salvage car parts (its a long story) anyway, I estimate
your negotiating tips saved my $75 to$100 on what ended up being a $150
purchase. Thanks
DaveO: That’s odd.. the top of the back cover says "This book is not
just a bargain, it’s a steal. It’s filled with practical, workable advice for
anyone wanting to build wealth." - Mike Summey
Roger_Dawson: Great Mark! I’m proud of you.
Al_Lee: Rob, Good Question. The rent_roi is what I use exclusively. The
ren_dcr is primarily for apartments (whichI have never bought)
Mike_Summey: Dave, I know what I said, I just haven’t seen one of the
books yet.
DaveO: ohhh
gabi: Brian-ON - that’s what I trying to do
DaveO: heh thought you didnt know what I was talking about
Mike_Summey: also endorsed our new book Weekend Millionaire Mindset.
Brian-ON: Keep at it
Rob_FL: Al, that spreadsheet is quite a work of art!
gabi: Brian-ON - I will
Al_Lee: Rob, thanks. I keep on making it better and better as I get
feedback from people using it.
brf: Roger, Mike has my number so let’s get in touch when you come up.
Mike_Summey: I received a call yesterday from a builder who wants to sell
me 13 apratments. I have already bought 30 from him.
brf: In asheville Mike
Al_Lee: Rob, my past life was in the computer software business, so I am
inclined to automate everything I can
Roger_Dawson: Will do brf, but it won’t be until June at the earliest.
brf: I’ll be here
Rob_FL: Al, I, too, am still in computer software so I appreciate it
mrjones30: Don’t feel bad AL my current life I’m employed by IBM and I
can’t stand it….
DaveO: Mike I like your book better.. I need layman’s terms
Mike_Summey: brf, in Black Mountain
Roger_Dawson: DaveO, we believe in the kiss principle. Keep it simple,
stupid.
brf: Good for rentals
Bruce: Mike, what terms are you buying from the apt. builder? 70%
occupied?
Al_Lee: mrjones30, I remember lots of things we used to say about ibm. I
was once a business partner of ibm’s until they decided to go in competition
with their partners!
Mike_Summey: Dave, that’s all I know … layman’s terms.
DaveO: i do well as long as i stay stupid.. its when i get a little too
smart for my own good that I get in trouble
brf: That was a question for Mike. Good for rentals? Not sure how to get
your name before my message, virgin to this chat stuff
Mike_Summey: Bruce, from what he says, they are fully occupied.
Brian-ON: Mike you said on an earlier chat that you usually added the VTB
possibility on the Purchase offer…do you always add it to your offers
initially? ..Do you usually offer more than 1 offer initially?
Rob_FL: Mike/Roger, yes, your book is very easy to read and makes the
reader feel like they can do the business!
Mike_Summey: Hi TT
MarkNC: Gotta run everyone, Good night
TT: Hi
mrjones30: Too many "Robots" and not enough creative
thinkers…if you want my opinion.
Ray: Mike/Roger, many of us are salivating over the new book. Can you
offer a hint as to why you suggest we wait until May 6th to purchase?
DaveO: now i just have to buy a property.. im chomping at the bit really,
but i have to refinance my primary residence in july and im kind of afraid to
use my credit until then
mrjones30: Take care Mark have a good night
Bruce: Mike, I didn’t read what you wrote correctly. I thought he was in
the process of building and you were buying during construction. If that were
the case, would you only close when a certain occupancy threshold was met?
Rob_FL: Al, one question about that spreadsheet. The "interest
rate" that is entered has gotta be the fixed rate, right? arms and using
prime rates cannot be figured, correct?
Mike_Summey: Brian, I add it to most offers, but with this builder, he
knows how I do business and we don’t try to one upmanship each other.
brf: Went to a seminar by David Pitts this weekend. Anyone heard of his
approach of "being the bank"
Mike_Summey: Ray, because if you wait until May 6th you will be a
priceless bookplate personalized and autographed by both Roger and myself, plus
an authentic looking $1,000,000 bill to use as a bookmark.
Al_Lee: Rob, I advise people to never use arms unless they meet some very
strict criteria. The spreadsheet uses fixed-rate only. It does supportfirst and
second lien loans and interest-only options, though. If you want to hear what I
say abut using arms, you shoudl go to my website and listen to one of the recent
radio shows I did on the topic of loans.
Brian-ON: By the way Mike, I did buy Carletons calculator…just like you
advised!
mrjones30: You want us to buy through Amazon?
Mike_Summey: Bruce, No! The project is completed and fully occupied.
Bruce: brf, I haven’t, but always willing to learn. Any salient points to
pass on?
Ray: Thanks, I’ll wait until May 6th!
Mike_Summey: mrjones, yes buy from Amazon and the forward the order
confirmation to mike@weekendmillionaire.com.
Brian-ON: Mike…fixed rate or floating?
Mike_Summey: Brian, are you finding it worth the money?
Brian-ON: 2nd property !!!!!!!
Rob_FL: Do you advise paying for a rental using a heloc? It’s the best
interest rate and cleanest transaction.
mrjones30: Got it
Roger_Dawson: Hi Everyone! Thanks Dean
mrjones30: Hey Roger
Brian-ON: and i’m still learning!! Mike
Eddie: Mike do you buy two bedroom sf or do you stick to 3 up
Mike_Summey: Brian, I like to use fixed payment, floating rate loans.
Mike_Summey: Hi justin
brf: It was just an intersting points on how to purchase from people by
ways of getting owner financing, then doing the same on the other end with a
spread. Bottom line, you still need motivated sellers.
Al_Lee: Rob, a heloc is not a bad way to get money for down payments, but
if it has an adjustable rate, you better be prepared to pay it off when rates go
up. Maybe a better way is to refi the homestead to get cash out, or just get a
home equity loan that is fixed-rate.
Mike_Summey: Eddie, I own a few 2br, but I like 3 or 4 BR.
Mike_Summey: Hi Dwayne
Roger_Dawson: I wanted to take this time to thank both you and Roger for
writing "Weekend Millionaire". It both inspired me and gave me the
knowledge to take action towards starting my real estate investment business.
Since reading your book, I have purchased 3 properties, 2 duplexes and 1 single
family unit and am looking to purchasing much more. I am a retired military
officer and currently work at Lockheed Martin as an Aerospace Engineer. My
initial goal is to replace my current income with property rentals within 3
years, sooner if possible, and I believe I am well on my way to doing that.
Bruce: Mike, at what apartment unit count do you go from a property
manager to an individual who lives in the apt. complex? 20 units? 30 units? 50
units?
Mike_Summey: Bruce, I don’t know what the right number may be. I hire
property management companies and let them decide if they feel like they need
inside help.
Rob_FL: Al, I don’t understand what you mean by "refi the homestead
to get the cash out".
Mike_Summey: Everyone, welcome next week’s guest Dwayne Wiseman. He is
checking us out.
Roger_Dawson: Bruce, in California, and many others states, you’re
required to have a resident manager if you have 16 or more units. I think that
the rest is up to negotiation.
Al_Lee: Rob, you can refinance your home for a larger suem than your
current loan balance is , taking the difference as cash to you.
Kim-OH: Hi Dwayne
Roger_Dawson: Hi Dwayne!
Bruce: Hi Dwayne, welcome
Mike_Summey: Dwayne, you’re welcome to stay and participate tonight.
TT: what does Dwayne do?
Kim-OH: Hi JR
JR_FL: hello Kim
Brian-ON: For all of you out there who need a perfect calculator for
doing REI deals …Mike reccomended me buying Carleton Sheets Toolkit 7.1…This
is kickbutt…and this is coming from a Canadian! Run..don’t walk and get one
asap!!
Mike_Summey: re may be a few questions for you.
Kim-OH: JR glad you made it
Mike_Summey: Hi JR
Dwayne_Wiseman: Hello to all. I look forward to being with you next
Monday.
JR_FL: thanks
gabi: Hi Dwayne
Roger_Dawson: Kim, did you buy that duplex yet?
Kim-OH: Roger in negotiations now
Kim-OH: Roger thanks for remembering
Mike_Summey: Brian, we recommend Carleton’s Toolkit because it has many
great tools that we don’t have to reinvent.
Brian-ON: Very true Mike
Kim-OH: Dwayne, what type of bank do you represent?
Dwayne_Wiseman: A local community bank with 8 branches.
Mike_Summey: Hi Dave
Bruce: Dwayne, with the market going down, will interest rates follow in
the short term? i.e. next 4 weeks.
mrjones30: That’s a great passage Roger. You know Roger and Mike I would
personally like to thank you for taking the time to create books and this
website on being financially independent. I believe that we are outcasts to some
degree. I mean how many people complain about there lives and don’t do anything
about it? I thank you guys because financial independence gives a person freedom
and not having to worry about retirement or social security, (If it’s going to
be there or not). Thanks a bunch guys
Mike_Summey: mrjones, thanks for the nice comment
Kim-OH: Dwayne thanks!! What do you look for from an investor who wants a
loan from your bank?
Mike_Summey: i Larry
Roger_Dawson: Gee, thanks a million Mrjones!
Bruce: I agree with mrjones 30, thanks,
TT: Dwayne, what bank, I am in Asheville and will be looking for some
financing soon.
Dwayne_Wiseman: In my opinion rates will continue to rise for the
remainder of the year. Prime will probably go to 6.75% by year end.
Dave: Mike, Hello.
Bruce: Dwayne, that’s what I thought as well.
mrjones30: I have Carlteon Sheets’ course do you guys think it was a good
buy?
Brian-ON: Dwayne..not to sound silly but what is the prime in the USA at
the moment?
mrjones30: You are welcome, you guys are awesome!!! Your good deeds will
come back to you tenfold!!!
Dwayne_Wiseman: Blue Ridge Savings Bank.
TT: Thank you.
Dwayne_Wiseman: Prime rate is 5.75%.
Mike_Summey: mrjones, Carleton is a good friend of Roger and me and I can
attest that his material is good stuff. Of course, it’s like mose other good
programs … if you buy it a put it one th shelf it won’t work.
Al_Lee: Dwayne, I have been saying (here included) that it is foolish to
get an ARM while interest rates ar where they are now. Woudl you agree that
locking in a low rate today makes sense, since you are predicting that rates
will go up significantly?
mrjones30: That’s a good point!!!
Mike_Summey: Hi jd
Dwayne_Wiseman: It depends on how long you plan to keep the property.
Long term fix it now. Less than 5 years I would due an arm.
Bruce: Mike is the 1,000,000 book mark green?
mrjones30: lol@bruce
Al_Lee: Dwayne, good point. I look at all buys as long-term, as I have
owned some properties for 25 years, so that is the perspective I always have.
Mike_Summey: Bruce, it is so authentic looking you’ll have to be careful
not to try to pass it at Wal-Mart.
Kim-OH: LOL @ mike once again
Mike_Summey: Kim, you are going to love the Mindset book. You’ll read it
and want to kick us for not getting it out sooner.
Mike_Summey: Hi DC
Al_Lee: Mike, I seriously heard a news story about a woman who was
arrested for trying to buy merchandise using counterfeit money. It was a
$1,000,000 bill! No joke.
Kim-OH: Mike thanks I would never want to kick you and Roger
Mike_Summey: Al, that’s what I was referring to. She tried to pass it at
Wal-Mart
Paul_CA: Hello Dwayne. Is a heloc considered a ‘revolving’ account by the
credit beureus?
mrjones30: When you go into Walmart they would do a sniff check on an
authentic 100 dollar bill imagine a million. Laughs!!!
Kim-OH: Dwayne thanks!!! Very informative
dc1214: hi mike
gabi: Dwayne - I bought a property with an adjustable credit line only 2
months ago. Is there a way that I can get a decent fixed rate now to lock it in
for 30 years?
Bruce: Dwayne, when your bank underwrites a loan, does it make a
difference in my financial statement if I have Interest only loans? Or do you
need to see me paying down principal?
Roger_Dawson: Al, that’s was at Kmart. They were going along with the
joke until she asked for change, which took her from a misedemenor to a felony.
Brian-ON: See you on May 6th Mike and all! Will you both sign it to
Canada Bri?
Dwayne_Wiseman: Yes heloc is consider revolving debt by credit bureaus.
Brian-ON: LOL
mrjones30: Oh no!!!!!
Bruce: Dwayne, we’re getting you warmed up for next week.
DaveO: yeah having a maxed out heloc can hurt the old credit score
Al_Lee: Roger, she is not one of you graduates from a negotiating class,
is she?
Dwayne_Wiseman: On investment property we like to see amortizing loans. I
wouldn’t always bet on appreciation.
Mike_Summey: Brian, when you send the order confirmation, just let us
know how you want the bookplate to read. We’ll do it!
Rob_FL: I got an offer in the mail by Wells Fargo who will give me a $50K
credit line and a 0% rate for the first 6 months. Sounds like a great way to buy
property! Is there a catch???
mrjones30: Psst….can we get it autographed?
Al_Lee: Mike, I woeul like mine to read: "Pay to the order
of…"
Brian-ON: Good night all..I’ve enjoyed the chat! Thanks Mike. See you all
next week!
Kim-OH: Al I like the way you think!!
Bruce: Dwayne, what if the properties cash flow, and you see discipline
in paying down the principal on a quarterly basis, is that acceptable?
Mike_Summey: Rob, I’ll let Dwayne answer that.
Al_Lee: Hi, Kim
Mike_Summey: Goodnight Brian
Paul_CA: Mike & Roger, that is a cool idea. A pesonalized
"Mindset" book is going to be priceless.
Kim-OH: Hi Al
Roger_Dawson: Rob, the catch is the six months. After that the rate will
jump.
Kim-OH: wb Dwayne
Al_Lee: Kim, I am on my third glass of after-dinner wine and the creative
juices are flowing.
Roger_Dawson: Thank you Paul. We hope so!
Rob_FL: Yes, but if I can fill the house with a tenant and then pay off
the credit card with a mortgage, wouldn’t that be "free money" for 6
months?
Dwayne_Wiseman: Yes but I belive in properly structuring the loan up
front.
Kim-OH: Al, cool have one for me too if you don’t mind
Rob_FL: All less than 6 months, that is.
Mike_Summey: Paul, even if you buy copies to give as gifts, we will
personalize the bookplates to whomever you would like if you just give us the
information in your mail forwarding the order confirmation from Amazon.
Al_Lee: Rob there is one very very large little work in your premise: IF
Al_Lee: word
TT: Dwayne I am buying a bank owned 1998 doublewide mh on .67 ac. with
permanent foundation for $28,000. It is tax valued at 78,100 and in Leicester.
Rent for 700/mo. Paying cash. When can I refinance and for about what ltv and
terms?
Mike_Summey: Kim, in other words Al is getting a bit ??????
Al_Lee: Mike, I am sitting here grinning the whole while, though
Larry: Mike, Sorry I missed last weeks chat. We had a treia board meeting
in Raleigh. I printed off the notes. It was good
DaveO: I can’t wait to read it myself.. A Millionaire Mindset is exactly
what I need to acquire
Kim-OH: Mike you know Al is always a bit fuzzy in the chatroom,, he makes
sense but he’s warm and fuzzy
Dwayne_Wiseman: TT, is the appraised value "as is" or subject
to repairs and improvements?
Rob_FL: Al, I could pay off that credit card with my heloc, right? Then
for 6 months, I didn’t even have to pay the prime rate of my heloc……I am
looking for a trap
TT: Dwayne, it will need 3500 in repairs to make it as new.
Mike_Summey: larry, well we’re glad you could join us tonight.
Al_Lee: Kim, I spend too much time every day being too serious adn I like
to let loose a little when nobody is close enough to puch at me, or anything
like that
Al_Lee: punch
Roger_Dawson: TT, that’s sounds like a great deal. Although you can’t
expect mobile homes to appreciate like real estate.
DaveO: my biggest problem in getting the mindset is i suffer from
paralysis by analysis.. i never just go out and do it
Kim-OH: Al, I don’t know why anyone would want to punch you and you know
I’m just teasing you a little
Rob_FL: Al, don’t drink and drive…I mean "type"….
Mike_Summey: Rob, just food for thought … when you pay off credit card
debt with a heloc, you are paying off unsecured debt with secured debt. Not god!
Dwayne_Wiseman: TT, on the double wide we would do 100% of your purchase
price. Also, it sounds like you stole the property!!
Al_Lee: Rob, You know that after 30 years in the computer software
business I type at about a zillion words a minute but with 50% errors–I let the
spell checker fix ‘;em
Larry: Dwayne, I’m building 18 new 1250Sq ft rental homes. Will need
perminent financing after built in 2 months. Any ideas on perminent?
Mike_Summey: Dave, just wait until May 6th and the Mindset book will get
you off the paralysis of analysis.
TT: Dwayne, I may contact you.
Rob_FL: Mike, but if it wasn’t for that credit card, I would have had to
pay for that rental with the heloc at the very start….I thought it was a good
way to use opm. Is the general concensus that it is a BAD idea?
Bruce: Dwayne, if I buy a property worth 230K, for 160K, how long would
you need to see my existing loan seasoned before I could re-fi and pull all my
money out?
Mike_Summey: Al, you are like most computer guys … you type fast and
fix it slow. I type slow and rarely have to fix it. Just another method
Mike_Summey: Rob, what did you use the credit card for?
mrjones30: Hey Mike I just praised you a few minutes!!! Don’t talk about
us Computer guys like that…..
Dwayne_Wiseman: Larry, ask me again next week and I will ask our
conforming mortgage loan office. If our Bank funded the loan we have a 30 yr
amortization with a 5 year call probably tied to prime rate with a floor
ceiling. I believe you would due much better in the conforming mortage loan
market.
Mike_Summey: Sorry mrjones.
Al_Lee: Mike, I am used to having a machine do my fixing for me. that way
I don;t have to be hindered by trying to type correctly. i actually used to be
pretty fast on a real typewriter, too.
Rob_FL: Mike, I was going to sign UP for that credit card where it is a
$50K credit line with 0% interest for 6 months
Bruce: Mike, sounds like your investing, start slow, let it build and you
don’t have to fix any financial problems because of being over extended
Dwayne_Wiseman: dhwbanker@charter.net
Larry: Thanks,Dwayne. I like 30yr am. 5yr baloon or 5/1
Mike_Summey: Rob, having 50K in unsecured debt can hurt your credit
rating. Just be careful and keep your unsecured credit in line with your income.
Rob_FL: Mike, I never carry a balance on my credit card and pay off all
my debts on time. That’s why I’ll never let it go past the 6 months.
mrjones30: Well, Mike we can’t fix things slow here in New York. You know
everything is fast here.
Mike_Summey: Bruce, you picked up on that I see.
Bruce: Mike, I read you book slowly..
gabi: I’ve got to go pick up my son. See you next week. Bye everyone !
Mike_Summey: Bruce, you get more out of it that way.
Al_Lee: mrjones, that is right, too. i am originally from new York City.
I can’t go slow
mrjones30: Take care Gabi
Roger_Dawson: Mrjones: New Yorkers say: Every stranger is just an enemy I
haven’t met yet!
mrjones30: lol!!!!!!!!!!!!!!!!
Roger_Dawson: Hi
mrjones30: That is so true
Paul_CA: Bye Gabi
Mike_Summey: Ah! Rogewr hasn’t died after all.
Bruce: Roger, good one, I haven’t heard that one before.
Rob_FL: Mike, good point. In your situation, with your bountiful cash on
hand would you take advantage of such an offer? Or do you still prefer to
get a loan and pay interest the entire time???
Al_Lee: Roger, that isn;t true. They only say that about Californians
DaveO: there is another mortage broker here in town constantly
advertising on the radio about how he can get you $700 per month in cash flow..
obviously on an option arm type product.. i feel for his clients when the rates
go up
Mike_Summey: Rob, I prefer to be paying off loans rather that paying
banks interest for the privledge of having a loan.
mrjones30: I honestly think New York is worse, you should see rush hour.
People are running everywhere to go nowhere….lol!!
Kim-OH: Mike I am in total agreement with you
DaveO: i moved out of new york 8 years ago and never looked back
Rob_FL: Mike, so you prefer to pay for your properties in cash if
possible so there is no loan? Then you get 100% cash flow???
Mike_Summey: Rob, No! I prefer to finance new purchases so that the
tenants buy them for me.
Al_Lee: I moved out of NYC 35 years ago and go back from time to time
either on business or just for fun. It is the greatest city in the wrold to
visit. I don;t want to live there though.
Roger_Dawson: I was in New York once and a guy was stealing the front
wheels off a car right in fron of my hotel. He was run over by the guy stealing
the car!
Mike_Summey: Eventually I get 100% of the cashflow when the properties
are paid off. If I used interest only loans they don’t get paid off.
DaveO: i grew up on long island though, not manhatten
Roger_Dawson: Got to run folks. Great Chat. See you next week.
Al_Lee: Dave, you mean "LawnGiland", don’t you?
Bruce: Goodnight all,
mrjones30: Where do you live now Dave?
Rob_FL: Roger, that’s why so many movies are made in NY. It’s easy to
find crazy scenes.
DaveO: salt lake city
mrjones30: Take care Roger
Mike_Summey: I used Dwayne’s bank a few years ago to purchase 41 units
and rehab them. They are great to work with.
mrjones30: lol!!!!
Mike_Summey: Welcome back Michele
Paul_CA: Dave, how is the Salt Lake City market? I have read it is red
hot. Is this true?
mrjones30: Why do you like Utah over New York?
Rob_FL: Mike, yes, I remember that you and Al have 2 different
philosophies about paying off properties….
DaveO: i like the mountains.. im a skiier
mrjones30: Ohhhhh
DaveO: salt lake market has been stagnant as can be the past 3 years or
so but it seems to be starting to pick up
Al_Lee: Rob, I’d be happy if the loans were interest-only forever. I
woeul be making money using the bank’s money without ever having to pay it back.
mrjones30: I’m a snowboarder, I like Canada better
DaveO: as a mortgage broker, the values here have been killing me..
fidning someone with equity is pretty tough
Mike_Summey: Rob, yes Al & I have different philosohies, but that’s
what makes these chats so interesting. You get to hear both viewpoints and make
you own decisions.
Dwayne_Wiseman: Good night to all look forard to being with you next
week.
mrjones30: Good point Mike
Al_Lee: Goodnight
Al_Lee: I need to sign off and go tuck the kiddies in, too
mrjones30: Take care Dwayne
Mike_Summey: Goodnight Dwayne.
Rob_FL: Thanks and see you next week!
mrjones30: Take care AL
Mike_Summey: for checking us out.
Paul_CA: Thanks Dwayne.
Al_Lee: Hope to be here next week.
justin: How can I estimate the rent on a single family home?
Al_Lee: Mike, I’ll talk to you offline about this Saturday
Kim-OH: night Al
Al_Lee: G’night
Mike_Summey: We’ll talk tomorrow Al.
Kim-OH: I have to run too, have a great week everyone
Dean…Weaverville: night all..
Kim-OH: Thanks Ralph
Paul_CA: Good night, everyone.
Ralph_Roberts: thank you, Kim
Mike_Summey: yeah, I’m heading to bed as well. Goodnight all!
Ralph_Roberts: good night, all
Ralph_Roberts: chat will be posted momentarily
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