Chat 4-25-05
Posted on April 25, 2005
mikeflyer: you’re early
Kim-OH: Hi Mike and mike and Dwayne
mikeflyer: hi from Houston
Dwayne_Wiseman: Hello
Kim-OH: Hi Bruce
Kim-OH: Dwayne how are you this week
Dwayne_Wiseman: Great!
Kim-OH: Teriffic
Kim-OH: Hi Ralph
Bruce: Greetings everyone
Kim-OH: Hi Jack
Ralph_Roberts: hi Kim, everyone
Kim-OH: Ralph good to see you
Kim-OH: Hi justin
JackChapman: Hi All
Mike_Summey: Hello everyone.
justin: hi
Kim-OH: Dwayne I really appreciated your being here last week as a tasty
prelude to this week’s chat
Dwayne_Wiseman: It was my pleasure.
Kim-OH: Hi Paul
Mike_Summey: Dwayne has come with both guns blazing tonight.
Mike_Summey: l
Mike_Summey: Hi Paul
Kim-OH: Mike, no doubt
Paul_CA: Hello Everyone, Hi Dwayne.
Dwayne_Wiseman: Paul, Hello.
Mike_Summey: Jack, where are you from?
JackChapman: Exactly where you think, WI
JackChapman: How’s it going?
Mike_Summey: I thought that might be you. Glad you could join us.
JackChapman: Glad to be here
Mike_Summey: Hi doug
Doug_CT: Hi Mike,
Mike_Summey: Jack, may I tell everyone what you do?
Bruce: Forgot to say I am from Raleigh NC
Kim-OH: Hi Al
Al_Lee: HI, All
JackChapman: Sure, a little advertisement can’t hurt.
Mike_Summey: Hi Al, I just listened to our interview. Ralph put it on the
website earlier today.
Al_Lee: Mike, That Ralph is fast!
Ralph_Roberts: Rapid Ralph!
Al_Lee: I also noticed that the green control buttons I use happen to fit
into your color scheme perfectly
Kim-OH: Hi pendara
Mike_Summey: Jack Chapman owns US State Quarters.com. He is the county’s
largest distributer of uncirculated state quarters. I’ve been buying them as
they came out right from the beginning.
Kim-OH: mike so tell us all about Jack
Mike_Summey: Hi Pendra & Brian
Kim-OH: Hi Brian
Brian-ON: Hi Guys!Hi Kim
Al_Lee: Mike, I have gotten several complaints from folks who coudl not
get the "Listen Live" to work for them. Fortunately, they can now
listen to the recorded program, but I am griping to the radio station techie
guys about it.
Mike_Summey: One of the few investments I own outside of real estate.
JackChapman: Thanks for the plug Mike.
Mike_Summey: Al, I’ve had several say the same to me.
Kim-OH: Hi toger
Mike_Summey: Hi Roger
Brian-ON: Hey Roger!
Kim-OH: oop Hi Roger
Mike_Summey: Hi Larry
Al_Lee: Jack, Is ther some deal about some of the 2005 quarters beign mis-stamped
and worth quite a bit of money?
JackChapman: I’m also getting deep into the rental market thanks to Mike.
Kim-OH: Jack, Mike sounds like you each bring something to the table
Doug_CT: Jack, which is better? Quarters or Real Estate?
Mike_Summey: Hey everyone, you’re letting Dwayne off too easy. How about
some question for him about financing?
mikeflyer: will there be audio in tonight’s session?
JackChapman: Yes, there were a couple of errors on the Wisconsin Coins
that made them worth $400- $800 each.
Mike_Summey: No Mike, we don’t have audio in the chat. You’d get tired of
listening to me if we did.
pendara: hello everyone, first time
JackChapman: They are both equally as rewarding, how’s that for
political.
Al_Lee: *meow* Here’s soem audio!
Mike_Summey: jack, have you sent me a bag of them yet?
Bruce: If an income producing property cash flows positive how important
is the purchasers credit if he puts 20% down?? I mean say 50 units plus
Kim-OH: Jack, did those coins make it into circulation?
Doug_CT: Dwayne, I put an offer on a Bank Owned Property in my town today
via their website. What can I do to get my $150,000 offer on their $191,000
single family home excepted?
Al_Lee: I thihk I had one of those Wisconsin quarters and lost it sonehow.
Kim-OH: Hi Sean
Mike_Summey: pendra, we’re all friends, so jump in anytime.
Al_Lee: somehow.
JackChapman: The Minnesota coins should be going out in the next few days
as well as the other items that we had pending.
Mike_Summey: Hi Sean
Sean_McLellan: Hey Mike! long time no talk
Al_Lee: Real estate is better, I’ve never lost a proeprty like I did that
quarter.
Bruce: lets forget the coins for now folks
pendara: thanks, Mike
JackChapman: Some of the coins did make it into circulation
Kim-OH: Thanks Jack
Mike_Summey: I was just going to say the same thing Sean.
Kim-OH: Hi jace
Mike_Summey: Hi jacepharm
Brian-ON: I bought The Weekend Millionaire about 3 months ago and have
bought a 4 plex (closed May 15) and am in the process of buying a duplex which
is closing on may 16. And to think of all the idea’s I wasted years on before I
read Mikes and Rogers book! 
Mike_Summey: Thanks Brian.
Dwayne_Wiseman: Bruce it depends on the Bank. A smaller bank is generally
more flexiable than a larger bank. Mike would probably agree and tell you to
bank with several banks that way if your favorite banker gets transfered you
have another banker already broken in.
Brian-ON: I’m forever grateful sir!
JackChapman: Thanks, had a question regarding real estate, just picked up
my 5th property this week. Was wondering if there are any benefits to
Incorporating?
Mike_Summey: Great point Dwayne.
jacepharm: Hi Mike
jacepharm: Hi Kim
Kim-OH: Hi jel
Kim-OH: wb mike
Bruce: Dwaynethanks
jelynjj: hello all
Kim-OH: Hi roshard
mikeflyer: ty
roshard30: Hello!!!
Al_Lee: Dwayne, what is the longest time you will fix the rate on a
70-80% LTV loan on RE held by an LP?
Mike_Summey: Jack, I think an LLC would probably be better than a
corporation. It’s harder to get money out of a corp than an llc. llcs are
treated the same for tax purposes as if you owned the property individually
unless you have more than one person in the llc.
Bruce: If the seller of an apartment complex is willing to take back a
second for 20% would your bank finance the other 80% for 100%cltv, if it has a
positive cash flow???
Mike_Summey: Hi Jely & roshard
Larry: Dwayne, I’m building 18 rental houses in goldsboro, NC. I need
perminent financing. Can you do 30 yr amortised, 5 yr balloon in llc?
Al_Lee: I have negotiated deals with three banks, two are large, and they
are all different, but none will fix the rate more than a few years.
Sean_McLellan: Aren’t LLC profits double taxed?
roshard30: Hello Jelyn and welcome
roshard30: Hey Mike
Bruce: Hey larry its Bruce
jacepharm: Mike I am already incorporated..Does this mean that I should
creat an llc and dissolve the corp?
Kim-OH: Hi Eddie
Dwayne_Wiseman: Jack, best to ask your accountant and attorney about
incorporating.
Mike_Summey: Sean, NO. single member llcs are treated just like you owned
the property in your personal name for tax purposes.
Mike_Summey: Hi Eddie
Eddie: Hey everyone
Sean_McLellan: So a single member LLC is treated just like personally
owning it for tax purposes… but then you get the added benefit of not having
personal liability?
JackChapman: Thanks for the suggestions,
Larry: Is that Eddie in eastern NC?
Dwayne_Wiseman: Al, 30 year amortization with 5 year balloon.
Mike_Summey: jacepharm, ask an attorney and a CPA that operates in your
state.
Eddie: yes
Al_Lee: Dwayne, that menas we re-negotiate the rate every 5 years, right?
Dwayne_Wiseman: Bruce, generally speaking yes. It depends on the amount
and other credit factors.
jacepharm: thanks Mike
Larry: I met you and your wife when Mike came to Raleigh
Bruce: Thank you
Eddie: That’s right
roshard30: Mike if you were being sued wouldn’t a corporation protect you
more?
Mike_Summey: Sean, unless your LLC has the net worth to support loans in
its name only, you will still probably have to guarantee the loan personally.
The LLC will give you some liability protection and works well for estate
planning.
Bruce: Does your bank do out of state loans, and what might those other
credit factors be??
Doug_CT: Dwayne, I am working with my realtor on a bank owned reo, they
seem to want to do it all through their website. Should I try to make some
personal contact to get my offer accepted?
Paul_CA: Dwayne, what are some common mistakes beginning investors make
when obtaining financing through your bank?
Dwayne_Wiseman: Larry, yes we can but Goldsboro would be considered out
of market for our bank; however, there is a good community bank in Kinston calle
the The Little Bank. You may want to check them out.
Roger_Dawson: I’m incorporated but I don’t expect it to help me much if
I’m sued. It’s easy for attorneys to penetrate a privately held coporation.
Larry: Thanks, the little bank
Dwayne_Wiseman: Al, yes.
Kim-OH: Hi zert
Al_Lee: Roger, the best protection against a lawsuit is to form a Limited
Partnership and a llc. Have the LLC be the general partner of the LP and you be
a limited partner.
Mike_Summey: roshard,if I were being sued, the corporation wouldn’t
matter. If the corporation was being sued or an llc, either may give some
measure of protection.
Al_Lee: Roger, I’ve been over that with my lawyers a gazillion times and
it always come sout the same
Kim-OH: wb Brian
Mike_Summey: Hi zert
Brian-ON: Computer crashed..
Kim-OH: Brian I hate when that happens
zert: good evening everyone
Roger_Dawson: Thanks Al, good advice, although I’ve never been sued and
have never sued anyone, other than tenants who wouldn’t pay their rent.
Al_Lee: However, if you control the entity and you did something illegal
or fraudulent, there is no protection at all.
Mike_Summey: Hi TT
Kim-OH: Hi TT
TT: Hi
Brian-ON: Hey TT
roshard30: O okay, I was wondering if all of my properties were under a
corporation and I owned nothing personally. Wouldn’t that protect the indivdual?
Eddie: Mike, how many properties do you put under an llc before you start
another one?
Al_Lee: Roger, i work with a lot of doctors and lawyers who are paranoid
about being sued. I ahve never been sued in over 30 years of owning ren t
proerties, either
Mike_Summey: roshard, that’s a question an attorney should answer.
Larry: Eddie, how is r.e. down east
zert: Does anyone have any experience renting to college students?
JackChapman: I guess the best rule of thumb is to keep your nose clean
and keep the properties well maintained
Brian-ON: Mike/Rog do you keep seperate bank accounts for each property?
Kinda makes sense….
Mike_Summey: Eddie, I don’t have any set number. I have 2 llcs. One owns
properties in SC and one in NC.
roshard30: O okay….thanks
Eddie: Very slow. I haven’t bought anything in quiet a while now
Mike_Summey: Good point Jack
Al_Lee: roshard, the strategy is just the opposite, put all yoeur assets
in yoru name and all you liability int o the entity
Roger_Dawson: I think the best answer is to go speak softly and hire a
property manager with a big stick.
JackChapman: There you go, Roger
Eddie: Thanks Mike, Our accountant suggested that we have more than one
Al_Lee: Accountants love legal entities because each one needs its own
bookkeeping and filings
Doug_CT: Zert, we have rented to Faculty and Grad Students at uconn and
it has worked out well. I a little leary of students. We did rent to four grad
students for a year and they were excellent. The Museum curator was also
excellent for four years.
Mike_Summey: Brian, I have separate bank accounts for each of my llcs,
but each has many properties in it.
Sean_McLellan: Mike–I am taking the affiliate broker pre-licensing
courses next month. I’m aware of the upsides and downsides to being a licensed
agent and an investor… do you personally see much of a problem with the
downsides?
Kim-OH: Hi oz
Bruce: Dwayne does your bank lend outside the state??
Mike_Summey: Sean, yes. Being a licensed broker puts you under a much
higher degree of scrutiny and opens you up to being sued for taking advantage of
unsuspecting people when you buy at a discount.
Mike_Summey: Hi Oz
Al_Lee: Dwayne, is it possible to get a 30-year fixed-rate through a
local bank?
Brian-ON: Hey Sean, did you ever play pro ball?
Roger_Dawson: Sean, Mike and I disagree on this. I think being a broker
helps you find properties. You do have to inform the sellers in writing that
you’re licensed and buying the property at below market value for possible
resale at a profit.
Sean_McLellan: Brian–no
zert: I am looking at a property that is located a few miles from 2
colleges and thought that as a back up it would give an added list of potential
tenants
Larry: Mike, Have you heard the bill pending in NC legislature banning
Subject to, Lease options, and other creative RE deals
Mike_Summey: Hi Donna
Dwayne_Wiseman: We also have a branch in Greenville,SC. So we do loan
money in the up state.
Kim-OH: Hi Donna
Mike_Summey: Where are you from Donna?
JackChapman: I have a renter who likes to do upgrades to the property for
me at no cost as long as I buy the materials, for example buying new cabinets
for the kitchen. Any risk of allowing a renter to do the upgrade, for instance
if that get hurt while doing the work. Should I have them sign a release before
hand??
Kim-OH: Bruce would you like some duct tape?
Mike_Summey: Bruce is on a merry-go-round.
Bruce: Why do I keep getting knocked out?????
Sean_McLellan: Roger–Originally, I wanted to become a broker in order to
get discounts on buying property, sell them easier, and have access to a more
broad range of information… now, I am looking at actually selling as a
career… and after 3 years, perhaps starting my own brokerage… and then
investing on the side.
Donna: I’m close to Boston, closer to Providence. Would love to get
involved in investing, but don’t have a lot of knowledge except for my real
estate sales background.
Bruce: What would the duct tape be for??
Kim-OH: Bruce to tape you to the chatroom LOL
Bruce: That would be nice
Mike_Summey: Jack, I don’t allow my tenants to do work on my properties.
I prefer to have it done by people I know and can go back to if there is a
problem.
Larry: Mike, its House bill 725
Roger_Dawson: Jack, I wouldn’t worry about the tenant sueing you. Having
them deduct the cost of materials from the rent would further distance you from
trouble and may have some tax benefits.
Mike_Summey: Donna, the reason I asked is because I spoke with a Donna in
Germany online earlier today and I was wondering if you were her.
oz: Hello, mike and Kim
Al_Lee: Jack, many years ago I woeul let a tenant do work like that, but
I found that they over-value their contribution and then feel that you owe them
something and expect special favors, forgiveness of late rent, etc.
Donna: Mike, can I get started in r/e investing with a small amoutn of
money
JackChapman: Thanks for the input.
Mike_Summey: Larry, yes, I have a copy of the bill and have spoken with
one of its sponsors. I don’t see it as a problem for legitimate investors.
Kim-OH: Hi Walt
roshard30: I have a question what is an achievable timeframe to make
approx 3K a month in positive cash flow?
Mike_Summey: Hi walt
Sean_McLellan: Mike, Larry… what is this bill you are speaking of?
Kim-OH: Hi RE
Roger_Dawson: Roshard, that would depend on how much capital you start
with.
Mike_Summey: roshard, that depends on how much time you devote to in and
how much cash you have to invest plus a number of other factors
Mike_Summey: Hi guru
Guru: yo hi
Brian-ON: Mike, you once said that you usually always put a VTB in your
offers. Do you usually make more than 1 offer right off the bat or send out a
feeler offer first?
JackChapman: Depends on the NOI of each property you own. You’ll make
more money on the value of the property in terms of appreciation than rental
income in the beginning.
waltshan: HellO Mike and all
Mike_Summey: Donna, you can get started with no money, but if you have
some it sure makes it easier.
roshard30: 10K cash and 10 hours a week
Sean_McLellan: I would also add that the best way to start if you have no
money is to move into your first investment
Mike_Summey: Sean, in is a bill in the NC legislature.
waltshan: I have a three questions, should I ask them all at once, or
list them separately?
TT: Dwayne, does Blue Ridge do equity lines for NOO properties?
Specifically unencumbered double wide mobile homes and land?
jacepharm: I have found that pulling off no money down deals is a bit un
realistic…I tried to do that on one deal with the bank approving it and the
sellers attorney advised his client against it…. Is it because of the
exploding market?
jacepharm: im in the east coast
Roger_Dawson: Waltshan. Try one at a time. This is fast and furious
tonight.
Guru: ive bought 3 million dollars worth RE no money down 
Larry: Sean, You can go to NC legislature web site and search House bill
725. It is worded so broad they can control any RE investor they want to
Dwayne_Wiseman: TT, no we donot offer that product.
Donna: I have a small amount. In my area just a fixer upper goes for
275K. 10% down or even 5% and I still have to qualify to carry the note until I
sell it. HOw does one get started realistically? I can do fixing and painting
and sprucing up. I still need to qualify for the mortgage. Help…
waltshan: Thank you Roger:
Mike_Summey: Brian, anytime I can’t get good information about the
seller, I will make two offers. One cash and one terms.
Mike_Summey: walt, separately.
pendara: sorry, lost contact
BruceH: Hi Dwayne last week you stated that a bank wanted to see debt
reduction, i.e a fixed rate loan versus i/o. Why would that make a difference if
the property cash flows?
Mike_Summey: jace, no money down deals are definately more difficult to
find and they usually involve substantial owner financing.
waltshan: Question 1: What are your thoughts on interest only mortgages
for your primary residence as well as investment situation?
Guru: what he said
jacepharm: Thanks Mike and guru
Guru: and an understanding bank
Roger_Dawson: Dwayne, would you explain why banks see reos as a
liability?
Al_Lee: Bruce, "fixed-rate" and "interest-only" are
not mutually exclusive. I have many fixed-rate loans with ten-year interest only
options. I think they are the best deal an investor can find–both short terh
and long term.
jacepharm: I thought it was something I was doing wrong….Being in NJ
the average property goes for at least $500,000 so it makes it tough
Mike_Summey: Larry, I’ve read the bill and I don’t read it that way. The
bill seem to be targeted to only those who try to circumvent due on sale clauses
and the bill is aimed more at protecting unsuspecting buyers that the banks.
Brian-ON: Hi Guru..$3 million eh..very nice indeed…do you have another
name? Where are you located?
Kim-OH: HI Penny
Roger_Dawson: Hi Penny!
Donna: Mike: do you ever do seminars in the northeast?
Mike_Summey: walt, I don’t like interest only mortgages. I like to be
paying down the loans. Al,Lee will disagree with me on this one.
Guru: im dave hancock, live near Mike (sort of) in north carolina
Penny: Hi Kim and Roger.
jacepharm: Dwayne/Mike/Roger do you reccomend that I pull from my Equity
roughly $100,000 to invest in other properties? or is that not advisable?
Guru: thats cause you got lotsa money mike :)~~~
Al_Lee: Mike, Right! I like using the bank’s cheap money as long as I can
Guru: jace yes!!
Mike_Summey: Hi Penny
Penny: Hi Mike.
Dwayne_Wiseman: BruceH, rents are received monthly; therefore, principal
should be reduced monthly. Personal finances can change over a period of time
and it is best to structure the loan at the beginning to the repayment source.
BruceH: Al, understood, however, last week Dwayne stated that a bank
wants to see the principal paid down and I’m asking for clarification on why if
the property cash flows.
Mike_Summey: Donna, I will be in Hartford on May 21.
BruceH: Dwayne, thanks,
Donna: Mike, where will you be? I will drive there. Do I need tickets?
Pls advise.
Guru: becasue banks have no guts :)~
Brian-ON: How about Toronto Mike/Roger? Any visits??
JackChapman: Be careful with Interest Only Loans, if the bubble bursts
you will be stuck owing a great deal of money, that’s the fear with so many
people taking Interest Only loans right now. Also the payments will keep going
higher if interest rates continue to rise.
Kim-OH: Hi alex, good to see you made it
Al_Lee: Bruce, Yes, I remember. I was just responding to the workdin in
your question as it may mislead soem peopel to think that interest-only is not
fixed-rate. Actually, you can aget the interest-only opeion on either fixed or
adjustable rate loans.
Mike_Summey: Bruce, I’m going to answer for Dwayne. Banks are lenders,
not investors. Interest only loans are more like preferred stock than loans.
Dwayne_Wiseman: Jacepharm, it depends on alot of other variables.
Roger_Dawson: I’m booked for Toronto in July of 2006. A great public
seminar group called Peak Performers.
jacepharm: Thanks Guru
alex: ya, don’t know what chat site that other was lol
Mike_Summey: Hi alex
alex: hi mike
Sean_McLellan: Mike–any events, book signings or anything going on
Memorial Day weekend? I’m going to be in Asheville that weekend.
Guru: al, who you get your i/o fixed from, local bank or broker?
Kim-OH: Hi lia
waltshan: Thanks on question1, here is #2 Is there an advantage to
getting an established relationship with a banker vs. a mortgage broker. Does
the mortgage broker simply attach his comision to your financing, therefore you
will always get better financing directly with a bank?
zert: slooooow down I can’t read this fast LOL
jacepharm: Thanks Dwayne I figured that……:-)
roshard30: Is anyone here investing in NY City?
Mike_Summey: Sean, nothing planned right now. I’ll be conducting a book
signing at Barnes & noble on Tunnel Road on May 14.
Roger_Dawson: Good question Walt.
waltshan:
Donna: Where can I see you in Hartford 5/21?
Guru: bankers are easier to bribe :)~
Al_Lee: Guru, I use a broker who specializes in investor loans and has
dozens of investors (banks) to draw from We get a better deal form one or
another at any given time as they change rate sheets daily (or hourly)
Dwayne_Wiseman: Waltshan, if you go direct to the bank you will generally
save $$$$.
JackChapman: Not investing in NYC as the homes are about 920K more
expensive than in Northern Wisconsin
Bruce: Why would an interest only loan be a bad thing if you only plan to
keep the property for three years before flipping it?? In three years you have
paid almost nothing towards the principalany way. If you plan on flipping it why
not go for the higher monthly cash flow during that three years???
Mike_Summey: walt, mortgage brokers are middle men. they have to get paid
too. Their fees are on top of the banks.
Brian-ON: Great idea Bruce..till the market takes a dive
Guru: bruce, my sentiments exactly
roshard30: Yeah that’s probably true but I think you can find some really
good deals on the outskirts of the city.
Roger_Dawson: I’m skittis on interest only loans. Wealth is an income
stream and if you’re only paying the loan down a few dollars a month, it starts
to add up and it starts to snow ball.
Bruce: if the market takes a dive we are all in trouble any way
Al_Lee: Mike, I have actually gotten a better loan from the broker thatn
I was offerd by Indy Mac Bank. Then Indy Mac bought that same loan. Go figure !
Kim-OH: Alex, Dwayne is a banker here to answer questions so just jump in
Mike_Summey: Bruce & guru, that’s fine, but why would you want to
sell. Properties that are paid for are like geese that lay golden eggs. Why
would you ever want to get rid of one.
Guru: al, where u at?
zert: Mike, I was thumbing thru the book yesterday (4th or 5th) time. Why
do you take the Management fee from the Net Rent?
Mike_Summey: Hi Dean
Kim-OH: Hi Dean
Al_Lee: Guru, I am in Dallas Texas
Bruce: a 1031 exchange
Guru: sweet, great town
roshard30: Actually thinking about it, I have seen some houses cheaper
then that. Maybe about 620K
Dean_nc: Hi , sorry im late
jacepharm: I own a four family property in NJ do you recoomend I pay it
off with extra money I have or do you recommend I take the money and buy more
property…….The property is worth $400,000? I figured I can use the cash flow
of about $4400 per month and pay off my primary mortgage …
Mike_Summey: zert, because the management fees are usually a percentage
of teh net rents.
alex: I’m looking for capital funding
Donna: Anyone want to comment on Robert Allen? I was contacted my them
today wanting to know if I was interested in joining their investment program.
Guru: jace, leverage is king, bab-e
Kim-OH: Hi gabi
Mike_Summey: Hi gabi
zert: the pm’s I have tald with use a pct of collected rents
gabi: Hi everybody
Kim-OH: gabi, glad to see that you have power
Roger_Dawson: Zert, management is one of the five standards expenses that
are deducted from net rent to figure value: Management, Insurance, Taxes,
Utilities and Maintenance.
gabi: Kim Yes thanks
Bruce: Mike to do a 1031 tax exchange
Al_Lee: Mike, I agree that you shoudl not sell the goose that lays the
golden egg, but you might exchange it (as in Sectin 1031) for better property
that is better-leveraged, produces more depreciation allowance, better ROI and
better roe.
Paul_CA: Hi Gabi.
gabi: Hi Paul
Brian-ON: Don’t forget Vacancy Roger!
Dwayne_Wiseman: Jacepharm, it depends on your short term and long term
goals. I would like to be more specific but I would need more information before
I could properly give you my recommendation.
roshard30: Question for Mike and Roger. Should you get into an exploding
market? I live in New York which Real Estate prices are really high. should I
invest somewhere else?
Guru: vacancy = bad word
Roger_Dawson: Brian, vacancy is deducted from gross rent to give you net
rent.
Dwayne_Wiseman: Jacepharm, Have you written down your short term and long
goals and do you review them annually?
Al_Lee: Guru, are you in the SouthEast?
Guru: we should all move to florida
Guru: i live in north carolina, about 3 hours east of Summey
Mike_Summey: roshard, NYC is a tough market. Better to leave it to Donald
Trump and look across the river in Jersey.
Guru: hey kewl a picture!
Roger_Dawson: Roshard, it
Sean_McLellan: Mike, Roger, I’ve got to run. I’ll catch you next time.
jacepharm: Mike & Roger what do you reccomend? Should I pay off my
mortgage or buy other properties? THanks Guru…
Kim-OH: night Sean
Kim-OH: Hi JD
Mike_Summey: Goodnight Sean
Donna: Where in Hartford will you be, Mike?
Mike_Summey: Hi JD
Roger_Dawson: Roshard, it’s all timing. You want to get in on the start
of the explosion, not the big bang at the end.
waltshan: Thank again eveyone…question #3…I live in Fairfield County,
Connecticut. My "ten mile radius encompasses an average selling price for a
single family house of at least $500,000. Expanding my radius still yield a
selling price of @ $300,000. In addition, a lot of people actually get a
"highest and best" offer that exceeds the asking price. what TO do??
Doug_CT: Donna, I would be very cautious…. I will talk to you further
off line if you want.
roshard30: You are right, but NJ is expensive as well, anywhere near NYC
is really high.
Guru: dont listen to them there only 10 times richer than me…
roshard30: You are right Roger…good point
gabi: Hi Mike - Questions for you. Talked with a bank today about another
creditline. Optional interest only based on 25 years. What are your thoughts on
getting another creditline instead of a 30 year mortgage
jacepharm: Dwayne I actually just started investing and writing my goals
Doug_CT: Donna, you can learn all about Mike Summey’s visit to Hartford
at www.ctreia.com
Dwayne_Wiseman: Jacepharm, it is good to review your investment goals and
review them annually.
Mike_Summey: walt, make offer that will work for you and have patience. I
once made 50 consecutive offers here and had them all rejected. When one was
finally accepted, 6 of the next 10 were. It a numbers game and a matter of
timing.
jacepharm: I would like to own properties for long term rental income
that is my goal…Buy and hold….Mike’s school of thought…
Al_Lee: walt, I think it is Ok to invest in other areas from where you
live it you are using competent managers. That lets you live where you want to
and invest where there is money to be made.
Donna: Thank you, Doug. I’m new to the chat room and new to MikeS.
Mike_Summey: Donna, see Doug’s comment above.
Doug_CT: Donna, do you live in CT?
Donna: No, actually, not far from Providence.
Mike_Summey: Hi ghi
Kim-OH: Hi gjh
ghj: Hi
Guru: mike = persistent fellow
Doug_CT: Donna, Providence is just an hour or so away, you should plan on
coming over to meet Mike in person and attend his 1 day seminar.
Brian-ON: Yeah Mike/Roger..my 4 plex cashflows about $350 monthly at a
purchase price of $310K. Once I’ve saved up about 3 months reserve to cover
unexpected costs, would you start and keep on paying off the principal?
Roger_Dawson: jacepharm, look for the ratio of rents to purchase prices.
It varies a lot by town. If you can buy for 120 times the monthly rent it’s
probably a good prospect. Compare town to town and look for good rental markets.
Mike_Summey: Donna, you can learn a lot about both Roger and me on our
website.
Donna: Yes, I have looked at the website. I would like to attend the
seminar.
roshard30: Does anybody know of a good investment group in Washington?
Doug_CT: Hi Waltshan, I live in Ellington, North and East of Hartford.
Are you planning on coming to see Mike in Hartford?
roshard30: Or in general?
jacepharm: Thanks Dwayne I will work on your recomendations
jacepharm: Thanks Roger
Bruce: Rodger is that gross rent or net rent??
Mike_Summey: I will also be in Charlotte, NC on June 4 and Spartanburg,
SC on June 11.
Al_Lee: roshard, my website is http://www.turnkeyinvestments.net and we
are a nationwide investor club
roshard30: Awesome…thanks AL
Mike_Summey: roshard, check the listing of investment clubs on our
website.
Doug_CT: Waltshan, it is a great opportunity. We don’t get many honest,
bonafide real estate gurus in this area?
BruceH: Dwayne, on my 6 units in Tenn. I could only get 5yr. fixed, 20yr
amt. Fixed rate after 5 years wasn’t an option and I will need to re-fi in 5
years. Why won’t banks allow for a longer fixed rate period?
roshard30: Got it
JackChapman: Anyone know of the best product on the market to get rid of
Moss on the Roof?
Doug_CT: JackChapman, sunshine.
Bruce: Rodger Would that be 120 x gross rent or net rent???
Roger_Dawson: Hire a fiddle on the rood.
Mike_Summey: Jack, Clorox!
Al_Lee: Bruce, if you buy in your personal name you can get 30-year
fixed, sometimes even 40-year fixed
gabi: Mike - Would you choose a 30 mortgagae over a more flexible 25 year
credit line optional interest only?
alex: anyone know of investors doing venture or syndicate investing?
Kim-OH: Jack, either a zinc or a copper strip under the uppermost roof
shingles will help
JackChapman: Sunshine covered, cut down the big tree already - I’ll look
into Clorox. Thanks.
JackChapman: Thanks Kim
Guru: 40year? i need to know u Al
Al_Lee: alex, I have a limited partnership for accredited investors (net
wroth of $1M or more), if you are interested.
Mike_Summey: gabi, I like to try to make properties work with 15
financing, but I’m older. When I was 30 the longer term loans were more
attractive.
Al_Lee: Guru, 40-year is not always available, but sometimes it is.
Guru: i wanna start a reit
Dwayne_Wiseman: BruceH, because Banks hold these type of loans on their
balance sheet. They match the interest rate with current market conditions and
they do not want to the long term interest rate risk. It simply allows them to
reprice the loan to current market conditions at that time. great questions!
gabi: Mike - I’d love to do shorter term financing, but the payments are
so much higher
alex: like more information Al_Lee
Guru: me too Al
Guru: <–accredited investor
Al_Lee: gabi, I am old, too, buy the longer-term loans are still
attractive to me becaue of the improved cash flow, faster return of my capital
and greater compounding in the long term
Mike_Summey: walt, the Toolkit is well worth the money. the book is
probably our new book Weekend Millioanire Mindset which you shoud order from
Amazon.com on May 6th. See the special offer on the website.
alex: amisico@voyager.net
Donna: Doug, will you be attending hartford seminar?
Guru: al, amen to all that
Roger_Dawson: Dwayne, when you forclose, do you ever go for a deficit
judgment or do you just settle for the property?
Doug_CT: Donna, Oh Yeah! I have even invited seven friends to come.
gabi: Hi Al - yes me too at this point.
Al_Lee: alex, go to mysite http://www.Renthouses.org and click on any
link that says "email Al" and we will be talking (emailing)
gabi: Al - I’m looking forward to your seminar in SF in May
Guru: what am i? chopped liver?
Dwayne_Wiseman: Roger, both; however, very seldom do we collect on a
judgement.
BruceH: Dwayne, do you treat interest rates differently in direct
relationship to the amount of units? Such as, would my interest rate be the same
for 6 units, 50 units, 100 units ,250 units etc. etc.
Donna: Maybe I’ll see you there. You can e-mail me at
Jancauskas@myway.com. I"ll look up the info you gave me. Thanks for your
help.
jacepharm: I think I missed the reply this chat is moving super
fast……Mike or Roger do you recommend paying off a $400,000 mortgage VS using
the money and buying new property? Im in NJ near NYC and the rental market is
very hot
Al_Lee: note, you must sign an affadivit stating that you are an
accredited investor according to the Securities and Exchange rules (which I will
show you).
Doug_CT: Donna, my contact info is Doug@integrity.net and you can learn
more about me @ http://www.integrity.net
Dwayne_Wiseman: No, it doesn’t matter.
TT: Dwayne, does Blue Ridge currently have many reos?
Guru: can i just show you the cash :)~~~?
Roger_Dawson: Jacepharm, I would say use the money to by more but still
look for bargains.
Mike_Summey: Al, have you ever run a proforma on a property with both 15
& 30 year financing and looked at the net cash kicked off by both over a 30
year time perios. Considering the additional earnings potential of the extra
cash available after 15 years.
gabi: Dwayne - I talked to a bank today and they suggested to keep buying
properties with a creditline, and keep doing that, no downpayment this way. What
do you think
waltshan: I am just getting started with this business, I recently
changed careers as well and am currently cash poor! What are your thoughts on
using my own homes equity for leverage to get started? I have a $300,000 note,
my property is easily worth $600,000?
Al_Lee: Guru, you can show me the cash, but it is the SEC that wants the
affadavit, so what I think doesn’t matter much
TT: I should have asked how many?
Dwayne_Wiseman: Are most of you using a Bank or a Broker to obtian your
financing?
Mike_Summey: jace, I’d have to know more to answer that question.
Guru: heheh gotcha just a j/k
BruceH: Dwayne, I use both.
jacepharm: Thanks Roger….
Al_Lee: Mike, yes indeed I have. The 30-year loan with an interest rate
of .25% higher than the 15-year loan outperforms the 15-year loan by a wide
margin.
gabi: Dwayne - both
Doug_CT: Waltshan, that should be a great place to start. But I would go
slowly. That big pile of money can go away quickly.
Guru: yeah but mIke, what about time value of money from extra cash flow,
and carry-ability of more properties in short term, factoring in extra
appreciation of extra properties because of greater cash flow?
Brian-ON: Brokers seem to be the only way to go in Toronto Dwayne
Paul_CA: I use a broker, as the small banks do not cater to investors and
the large banks are restrictive.
waltshan: thanks doug!
Eddie: Bank and broker
TT: I use neither
alex: anyone have notes for sale?
Al_Lee: The reason is the time value of money. Getting cash today is
worth a lot more than getting more cash in 15 years. I will have put that cash
to work today and it will be many times more before I geven get it returned to
me using the 15-year loan
BruceH: Dwayne, to clarify my answer. I use a bank in my town to ensure I
have a banking relationship because banks can do some things much more quickly.
I will use a broker if I can get a much better rate, which is usually the case.
Mike_Summey: Yes al, but the cash during the second 15 years more than
offsets it.
Dwayne_Wiseman: Gabi, I would need more information. Credit Lines should
only be used for temporary financing and then the line should be paid out with
term loan as soon as possible.
Bruce: Bruce H what can a local bank do that a good Broker can’t??
Bruce: More quickly
Mike_Summey: It’s hard to keep up tonight
BruceH: if you don’t have a credit line for the entire amount of the
purchase, they can close a deal within 24 hours like I just did at an auction.
Guru: yeah, you gunna have to stop bein so popular
jacepharm: Mike…I have the ability to pay off my $400,000 mortgage on
my investment property but am caught between using that money to buy more
properties or paying off the mortgage…. The rentals on the properties
currently cover the mortgage and leave me a net cash flow of about $200.00
gabi: Dwayne - thank you, I keep getting so many differnt messages from
banks and brokers, very confusing. I had thought the same turning the
creditlines into a proper mortgage. It just feels right to me.
waltshan: A new thought… what are peoples thoughts on becomming a real
estate saleperson? Would this help or hinder our cause? Who knows one could be
opening up an additional stream of income, or is this muddying the waters?
Guru: ima broker
Mike_Summey: jace, I’d use part of the money to purchase more properties
and keep part of it as cash reserves in case of emergencies.
Guru: i like gettin my 3% on stuff i buy off MLS
Doug_CT: Waltshan, muddy waters.
Al_Lee: Mike, no it doesn’t. I can prove it on a spreadsheet, and I do in
every one of my seminars. Today dollars are worth a whole lot more to an
investor. I get an average of 35-40% total return, tax-free form a rent house.
If I can get my invested cash back sooner (usually about 7-8 years with the
30-year fixed and 6-7 years if it is interest-only ) I will have that cash
making 35-45% growth for 8-10 years before I weoul even have it back in my hands
using the 15-year loan.
Roger_Dawson: Waltshan, if selling real estate appeals to you, I think
that it’s a great way to staying involved in the market and finding the best
deals.
Mike_Summey: walt, I commented on that earlier. go back and read the text
after the chat.
Dwayne_Wiseman: Bruce, think about. The bank has the money and the broker
is doing your shopping for you for a fee and they generally to a bank. Better to
go direct to the Bank when you can which will generlly lower your closing cost.
gabi: Dwayne - but I like the part of the creditline that I can buy
houses without the downpayment
waltshan: I see guru and doug have differing opinions… Mike I will
review, thanks.
Guru: if i could get a 50-year mortgage i would
Roger_Dawson: I have to run folks. I’m going to spend May relaxing in
Europe, but I’ll be back with you in June.
Al_Lee: Guru, I agree with you!
Dwayne_Wiseman: Gabi, I trust you have good cash reserves say 6 months
worth to cover the down times?
Kim-OH: Roger enjoy your vacation
Doug_CT: What area Roger?
waltshan: Enjoy Roger!
Al_Lee: Guru, and if it were interest-only for all 50 years, all the
better
gabi: Bye Roger - have fun in Europe - I was born in Germany
Mike_Summey: Roger is bailing out because no one will talk to him.
Guru: ruff life roger :)~
Guru: LOL
BruceH: Dwayne, I agree with you
Brian-ON: Good night all…see you next week! Very informative as ever!
Enjoy Europe Roger..if you’re going to London..bring Bags-Of-CA$H! You’ll need
it my son!
Al_Lee: gabi, Wie Gehts?
Dwayne_Wiseman: Gabi, so was I in Frankfurt. Was your parents in the
military?
Kim-OH: Mike. Roger wants to go drive his new car
Al_Lee: Roger probably got a lexus for abotu $10k and the salesman got a
headache
Mike_Summey: this will be our last chat until June. I guess everyone got
my email about that. roger & I are both going to take a break for the month
of May, but we will be back in June. I hope the rest of you will still meet here
in the chat room on Mondays and keep the dialog going.
JackChapman: Gotta run also, have a good night, thanks for the info. Good
luck on the new book MIke.
Guru: ill moderate for you mike
gabi: Al and Dwayne - not in the military, I lived both parents are
german. I lived there ’til I was 20
Mike_Summey: Sounds good to me guru.
waltshan: Thnak you to everyone, very helpful, great chatroom! Hope to
see some folks in Hartford!
Al_Lee: Mike, I will try to check into the caht room each Monday at the
prescribed time to see if anyone wants to chat
Mike_Summey: goodnight walt
jacepharm: THanks MIke…. Roger’s response was along the same
lines…..Thanks again
Mike_Summey: That would be great Al
Al_Lee: Mike, I haven’t had any wine tonight and I still can;t type
Doug_CT: I will keep Al company if he is the only one in the room.
Paul_CA: Thanks for you time Dwayne. Mike, look forward to the ‘Mindset’.
Goodnight everyone.
Dwayne_Wiseman: Paul,
Mike_Summey: Goodnight Paul
Dwayne_Wiseman: Paul, you welcome.
gabi: Dwayne - I’m holding money back for the down times.
Kim-OH: Dwayne thanks for being here again
alex: leaving, later my friend
gabi: Bye Paul
Bruce: Dwayne By going to a broker I can get up to 90% on commercial
loans anywhere in the country. These can start as low as 100k I am a broker and
am hooked into about 700 commercial lenders and 100 hard money lenders
nationwide and have been fortunate to be able to compete with most banks on a
very equal basis on plain vanilla loans. Where using a broker shines is in the
BC market or areas that fall outside of Fannie and Freddie.
Kim-OH: later alex
Dwayne_Wiseman: Gabi, OK.
zert: Mike - is there any chance that Coach from Carleton Sheet’s org can
join us in May?
Al_Lee: Hey, everyone go to the streaming aaudio radio shwo that Mike and
I did on Saturday. It is about 40 minutes long and is on the website
Mike_Summey: thanks walt! I’ll be working … promoting the new book.
roger will be relaxing.
alex: night all, like to chat more Al if you have the time by email
BruceH: Dwayne, Do you feel as though your bank will be part of the
acquistion trend that is happening in the marketplace today?
Guru: good luck with new book Mike
Mike_Summey: zert, I don’t know.
gabi: I’ve got to run too. Bye everyone. I’ll keep checking the chat room
on mondays.
Mike_Summey: Hi malpaso
Bruce: Good luck to the both of you on your new book!!!!!!
Al_Lee: ales, please go ahead and email me.
Kim-OH: g’night gabi
Al_Lee: Alex…
Mike_Summey: goodnight gabi
Larry: Mike, I’ve got about 2 years left b4 a big balloon gets
refinanced. Do you recogmend pulling equity out and paying off some homes or
just roll the note for another 5 years?
alex: I did
Guru: im emailin you too AL
alex: Al
malpaso2001: hey mike
Dwayne_Wiseman: Bruce, another great question. We will continue to grow
de novo instead of acquistion. Out next market will be in Charlotte, NC in the
3rd QTR of this year.
Al_Lee: OK, I won;t be lonely tonight !!! Plenty of folks to talk with
Guru: teehee
Guru: im not all talk and no action tho
Mike_Summey: Larry, I look at all of my properties ever 4-5 years and try
to refinance a few up to the max and pay others off. That’s why today about 70%
of my properties are paid off.
BruceH: Dwayne, any plans for bank growth in Nasvhille anytime soon?
Al_Lee: Guru, then we will get along fine.
waltshan: Goodnight!
Dwayne_Wiseman: Bruce, Our bank continues to niches that most banks in NC
do not do ie (30 yr amortization on commerical, small business loans,
construction loans for owner/builder etc) and flexable underwriting.
Larry: 70% would be good
Guru: Mike, you should leverage out to 90% LTV and buy Biltmore
Al_Lee: Guru, I have about $5M worth of good invesement properties I
coudl buy right now. All are leased and positive cash flow, single-family,
duples, soem 4-plex
Mike_Summey: Guru, what would I do with it?
BruceH: Mike, how do you calculate when to pay off of or re-fi. What
methodology do you use?
Guru: you do 30 year am on commercial!!?!?!?
oz: good night all, gotta run.
Guru: i need your phone number
Dwayne_Wiseman: Guru, Yes. 1-888-726-2435
jacepharm: Mike is there a set percentage you go into on a real estate
deal? For example you put in no more than 20% on every deal. Then let the
rentals pay off the mortgage for a few years before refinancing and using that
money to pay off other homes?
Al_Lee: OK, I gotta go kiss the kiddies goodnight, but I will be bak in a
few minutes checking emails.
Guru: AL, lets just buy one 250-unit apt complex and get it over with
Kim-OH: night Al
Mike_Summey: Bruce I’m not sure I have a formalized methid. I will divide
the loan balances into the payment and loot at the ratios. the higher ones
usually get paid out when others are refinanced.
Guru: dwayne you loan in Burlington , NC?
Al_Lee: Guru, apartments are not as good as smaller format.
Al_Lee: Night, Kim
Bruce: I also can get you 30 year am almost everywhere in the country and
my phone is 919-674-2003
Mike_Summey: goodnight Kim
Kim-OH: Mike I’m not leaving yet
Al_Lee: Bruce, if you will go to my website and email me I might have
soem business for you.
Kim-OH: Bruce do you do loans in OH?
Guru: yeah but less labor intensive
Mike_Summey: Oh sorry Kim.
Dwayne_Wiseman: Guru, probably out of market for us but with the right
LTV 70% or less we would probably look at it.
Bruce: what is your web site??
Mike_Summey: I’ll be right back. Need to get a drink of water.
Al_Lee: Bruce http://www.RentHouses.org and click "email Al"
form just about any page
Bruce: thanks
Dwayne_Wiseman: Bruce, you know other lenders that will do 30 years on
commercial property?
Al_Lee: Mike, We will talk again next Satruday, unless sooner.
Al_Lee: Goodnight
Guru: how bout 1 million dollar loan with buyers net worth in 8 figures?
Guru: and 80% ltv?
Bruce: Yes I do and they will also lend in almost all states
Guru: Ha!!! water, scotch and water, maybe
BruceH: Bruce do they loan in Tenn. and Calif.?
Bruce: It is a relativly brand new program
Guru: bruce, north carolina?
Guru: yeah but are you like all the other brokers i know and never get
back with me :)?
Bruce: bruce h give me a phone and i will let you know tomorrow
Kim-OH: Bruce will they lend in OH and what are the terms?
Dwayne_Wiseman: Bruce, Are the interest rates tied to libor, prime rate
or do they offer fixed rates with no balloons?
Bruce: please call me tomorrow and I will be glad to get answers for all
of you. 919-674-2003
Bruce: yes I did
Guru: hehehe dwayne feels it all slippin away….
Mike_Summey: I’m back
Kim-OH: Great questions Dwayne
Larry: Bruce, are you in Raleigh
Bruce: mabey
Bruce: actually no I am not
Guru: i live in burlington nc bruce
Dwayne_Wiseman: Guru, No, we have our niches and continue to be very
successful.
Larry: Close
Bruce: perhaps say Cary
Guru: i know, dwayne, you guys are great i know your reputation
Guru: Cary= Raleigh
Kim-OH: Dwayne can you recommend a lender in the Cincinnati OH area?
Larry: I pay Cary taxes too
BruceH: Dwayne, have you seen construction loans for your area increase
for decrease in the last 4 months?
Guru: you gotta be rich then
Guru: bruce, last name?
Bruce: scoville
Guru: u know doug d’amico?
Dwayne_Wiseman: Kim, I am sorry but I donot know anyone in that market.
Mike_Summey: Dwayne, I received a request from Germany today to ask you
if you know of any books or audio tapes that discuss real estate financing from
a small bankers point of view.
Kim-OH: Dwayne thanks I knew that was likely a stretch
Guru: Nations Home Funding
Larry: You got me .
Bruce: rings a bell but can’t say for sure. Perhaps by sight I would
Guru: broker in raliegh, good guy
Dwayne_Wiseman: BruceH, Construction loans is what our bank does best.
Since 12/31/04 they have increased approx. $14,000,000. Construction continues
to be strong in the markets we serve.
Doug_CT: Dwayne, Know anybody up in the Harford market?
Guru: asheville is exploding
malpaso2001: Mike, do you use Carlton’s Real Estate Purchase Contract and
is this the first/only thing that you have a seller sign
Dwayne_Wiseman: Mike S., No but you and I should write one!!!!!!
Dwayne_Wiseman: Doug, No I am sorry.
Dwayne_Wiseman: Guru, your right wide open.
BruceH: Dwayne, Would your analysis predict that the RE market will
continue to stay strong? Or, will we see the market slow down because rates will
rise by year end?
Mike_Summey: malpaso, I use a variation of Carleton’s contract that I
have customized for my own personal use. As a matter of fact, I have several
versions of it that I use depending on the type offer I am making.
Guru: my brother-in-law is a builder, lives in haw creek
Larry: Bruce, that means you have got my perminent for Goldsboro and
reducing your fee because all the business tonight
Bruce: good try!!!!!!
Doug_CT: Dwayne, back to my REO opportunty that I put an offer on today.
The Bank is First Preston in Texas, and I don’t think they have much of a chance
of selling this single family house I put my offer in on today. How do I
communicate to them that my offer may be the best they will get?
Guru: gotta run, thanks everybody, have a good time on the road Mike!
Mike_Summey: Goodnight guru
Guru: thanx for coming Dwayne!
Kim-OH: night guru
Bruce: Mike what is your e-mail address?
Dwayne_Wiseman: Bruce, Each market will be different. Interest rates will
continue to rise through year end which will take a lot of first time home
buyers out of the market which will then prevent the folks who bought a starter
home a couple of years ago from moving up as fast as we have seen in the last
few years.
Mike_Summey: mike@weekendmillionaire.com
Bruce: thanks
malpaso2001: Mike,ok but is this contract sometimes refered to as an
Agreement for Sale or is that something else
Dwayne_Wiseman: Doug, are they a big bank or small bank. If it is a large
bank it will be hard to find out who to talk to in a larger bank.
Bruce: I don’t know if you remember but you were going to e-mail me
something when you got home from the Raleigh seminar.
Doug_CT: I think they might be small, never heard of them before. They
only have two properties listed as reo’s in our state.
Mike_Summey: malpaso, it can be called many things. Offer to Purchase and
Contract, Agreement for Sale, Contract, etc.
justin: Is this in the Toolkit?
malpaso2001: Mike is this something you can do yourself or do you have an
attorney handy..
BruceH: Mike, did your previously say you were coming out with your own
spreadsheet for others to use? Something along the lines of Carlton Sheets?
Mike_Summey: malpaso, I have made the modifications and then asked my
attorney to review them befor eI use it.
Dwayne_Wiseman: Doug, You should be able to find out who is handling them
properties via a phone call. Just ask for the person who handles reos.
BruceH: Dwayne, thanks for taking the time to field our questions. I
appreciate the help.
malpaso2001: MikeSo u would have a seller sign the contract and then have
your attorney look it over
jacepharm: zWelcome Racevedo
Mike_Summey: Bruce, we are working on several items that will be
available in the future. One is an offer generator program. Another is a
spredsheet for tracking the performance of properties and several more items. We
don’t have a time frame as to when they will be available, but I know it will
still be several months.
Doug_CT: Ok. I will dig around. They probably don’t know as much about
the property as I do, and I can help them see the wisdom in taking my offer.
Mike_Summey: Hi racevedo
racevedo: Hi Mike
BruceH: Mike, I’ll be looking forward to it.
Dwayne_Wiseman: Thank you to everyone for letting me join you this
evening. I hope I was of some help to you. Best of luck to all of you as you
continue to invest in RE. Good night.
Bruce: Doug Take some pictures of the house and area and get a list of
every repair needed to bring it up to cherry condition. Give the bank a good
reason to say yes
Kim-OH: goodnight Dwayne and Thanks again
jacepharm: Good night Dwayne thanks for your answers
Mike_Summey: Bruce, the Offer Generator program is coming along quite
well. Hopefully it will be ready before too much longer.
Doug_CT: That sounds great Mike. We had a guy here Gerald Romine last
week and he has a sofware program that generated offers in a 5 minutes or less.
BruceH: Dwayne, from a bankers perspective. Would you rather have a 15yr.
fixed rate on your books or an Interest Only?
Mike_Summey: Goodnight Dwayne
racevedo: Mike, in the current economic environment of rising interest
rates, what is your forecast for the real estate market in the mid term?
Mike_Summey: hanks for joining us.
Doug_CT: Thanks for the idea Bruce. I will follow through on that.
Dwayne_Wiseman: BruceH, 15 year 5 year balloon instead of an interest
only.
Mike_Summey: recevedo, I think the market is going to swing to a buyers
market before too much longer. As interest rates rise more opportunities are
created as people have difficulties.
BruceH: Dwayne, is that because the bank makes more money? Or do you feel
the 15yr. 5 yr. baloon is less risky than an i/o?
Mike_Summey: Doug, our Offer Generator program will generate offers that
work according to the Weekend Millionaire model.
racevedo: Thanks Mike, I agree with you 100% - there is also a number of
other factors that I believe are going to create a buyers market in the near
future.
Mike_Summey: Hi gene
gene: hi, read your book. very interesting.
Doug_CT: Mike, I can’t wait. They sound like tools that will really help
us out.
Mike_Summey: I’ve been through several cycles in the real estate market.
I’ve bought more in down markets than up markets, because that’s when the deals
are more available.
gene: I don’t know how to use it here in Southern california.
Mike_Summey: Southern Calif is tough Gene. It takes a lot of patience and
persistence there.
jacepharm: Mike their is a flipsid according to some analysts and
improvement in stock market will prevent a huge crash as some are
expecting….rices will decline but not too the extent that many think becuase
the overall economy is in good condition and job growth looks positive… Do you
see this statement as accurate? or do you anticipate a huge decline in prices?
gene: condos within in 1 hour my place costs $450K and one can only rent
it for $2000 tops per month.
Larry: Dwayne, thanks for answering our questions the last couple of
weeks. Where in western NC do I need to build new rental houses?
Mike_Summey: Hopefully the new Mindset book will help all of you see
things differently.
zert: can someone help explain the eviction process to me?
Mike_Summey: jace, I never pay any attention to prices because I’m not
looking to buy and sell. I buy when I can make the numbers work and I don’t
sell. I still own every investment property I’ve purchased for the past 32
years.
Doug_CT: Gene, you have got a tough one there. Many CA investors are
flocking to Arizona, Las Vegas and Reno.
Kim-OH: zert the eviction process varies from state to state
Doug_CT: Zert, start early and often.
Larry: Mike, looking forward to the new book. You have a different
outlook on RE investing than all the old gurus that maxed everything out.
jacepharm: Thanks mike that’s awesome…..
gene: There are houses in Central LA that is going to $250K+; but they
are not places where I even want to drive through.
Kim-OH: Mike what do you do when you have fully depreciated your older
properties?
Dwayne_Wiseman: Bruce, 15/5 because it less risk for the Bank.
jacepharm: Yes Mike… I will definitely buy te "Mindset"…
Thanks for the Weekend Millionare
Mike_Summey: zert, foreclosures are handled differently in different
parts of the country. Here in NC you give 10 days notice to pay when rent is
late, then file an eviction notice, wait 10 more days and go to small claims
court to get a writ of posession. Wait 10 more days and have the sheriff execute
on the writ. that is unless the tenant pays up first.
Dwayne_Wiseman: Larry, any where in the Asheville area.
Mike_Summey: Kim, I keep them and keep on collecting the rent.
BruceH: Dwayne, I assume because the loan is being paid down as the
property (hopefully) appreciates and the loan is due in 5 years. Is that
accurate? Any other reasons?
zert: does every step in the process cost $$$
Larry: Thanks, We are finishing 3 new houses this week and tenants moving
in this weekend.
Mike_Summey: zert, yes!
Kim-OH: Mike then you keep for the excellent cash flow
BruceH: Larry, congrat’s, it’s great when a plan comes together.
Mike_Summey: Kim, that’s right.
Doug_CT: Zert, you need an honest attorney….is that an oxymoron?
gene: Mike, in situations like S. Cal do you think going with Condo make
sense?
zert: that is what I am hearing. Just got off the phone with my father,
the atty wants 750 upfront
jacepharm: Thanks Mike and Roger I look forward to May 6th…..THanks for
your responses they were really helpful
Kim-OH: zert you need an attorney who does nothing else but evictions and
they usually don’t cost that much, where are you located?
zert: NY
Mik
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