Chat 6-06-05
Posted on June 6, 2005
chas: Hi everyone
Alan_In_Rochester,_NY: *evil*
Alan_In_Rochester,_NY: 
Bryant: Hello all
Alan_In_Rochester,_NY: *slap*
Bryant: I guess we are too early
Ralph_Roberts: hi everyone!
Alan_In_Rochester,_NY: hi!
Ralph_Roberts: Mike and Roger should be along momentarily.
Ralph_Roberts: rehi bob
bobcarr: HeyRalph
Ralph_Roberts: hi gabi
Ralph_Roberts: welcome
gabi: Hi everybody
Ralph_Roberts: Roger Dawson !!!
gabi: Hi Roger - How was Europe
Roger_Dawson: Hi Everybody!
Ralph_Roberts: welcome, Dwayne
Bryant: Hi Roger
gabi: Helle Dwayne
Alan_In_Rochester,_NY: Hi Roger! *)
gabi: I mean hello
Alan_In_Rochester,_NY: *evil*
Ralph_Roberts: heh, heh
Ralph_Roberts: Mike Summey !!!
Roger_Dawson: Europe was great Gabi. We took a cruise ship across the
Atlantic which completed a round the world sail that I started 45 years ago.
Alan_In_Rochester,_NY: I like the new setup…I haven’t been here in six
months
Mike_Summey: Hi everyone!
gabi: Dwayne - Sue Brown is a sweetheart. Thanks for the referral
Alan_In_Rochester,_NY: Hey Mike! *harp*
Ralph_Roberts: hi Doug!
Mike_Summey: Hi Dwayne
Doug_CT: Hi Ralph!
Roger_Dawson: Alan, did you hibernate for the winter?
Alan_In_Rochester,_NY: Ha, ha…I think so
dwayne_wiseman: Hello Gabi. Glad she was able to be of assistance.
Mike_Summey: Gabi, Roger, Alan, Doug, Ralph and everyone!
dwayne_wiseman: Hey Mike.
Roger_Dawson: Mike, how was your speech on Saturday?
Doug_CT: Helloooo Mike.
Alan_In_Rochester,_NY: Roger And Mike..I read half your book. I do it on
my lunch hours. totally fascinated
Mike_Summey: Roger, it went very well.
gabi: Hi Mike - I’m loving the book. Just finished it and I am redoing my
goals. Very inspiring. It made me cry in a few spots.
Roger_Dawson: Thanks, Alan, spread the word for us.
Mike_Summey: Thanks Gabi
Mike_Summey: Dwayne, did we get you hooked with your visit in April?
Roger_Dawson: Real estate investing is getting a lot of press these days.
NBC news ran a series all last week.
Alan_In_Rochester,_NY: Too bad I couldn’t take advatage of the free book
{or whatever} I bought it before I knew you guys wanted me to wait.
Roger_Dawson: We forgive you Alan!
Alan_In_Rochester,_NY: RE Bubble?? I think not!
gabi: Hi Reena
Mike_Summey: I sent reminder emails out twice today, but Ralph has
tighten up the spam filters so tight I think the emails I sent out got trapped
too.
Mike_Summey: Hi Kim
reena: Hi folks
Mike_Summey: And Reena
Mike_Summey: Hi Rob
gabi: Hi Kim - How are you and how is your health?
Doug_CT: Not to worry Alan, it wasn’t a free book, it was an offer for a
Million dollars inside the book. Mine is spent already.
Rob_FL: Hello
Kim-OH: Hi Mike
Kim-OH: Hi Gabi
Alan_In_Rochester,_NY: OIC……
Kim-OH: Gabi, it’s not good I start chemo on Wednesday
Roger_Dawson: Doug, did Mike do a good job for your real estate group?
Mike_Summey: Doug was at the seminar in Hartford and was kind enough to
pick me up at the airport and transport me to the hotel. Thanks Doug.
gabi: Oh you poor thing - I hope the chemo works out
Roger_Dawson: Kim, sorry to hear about your health. I’ll pray for you.
Alan_In_Rochester,_NY: Any seminars you two plan in Upstate NY?
Kim-OH: Gabi thanks
Doug_CT: Yes. Roger. Mike was very inspiring. I think the audience stayed
an extra 90 minutes pasted the publicized time and treated him to a fine ovation
upon completion.
Kim-OH: Roger I really appreciate all prayers
Kim-OH: Roger how was your vacation?
reena: Kim, I hope you recover soon. We pray for you.
Mike_Summey: Kim, we’re all pulling for you.
Kim-OH: mike thanks that means a lot, it’s been a difficult time lately
Mike_Summey: Welcome raleighbound
Roger_Dawson: We loved it. Spent three weeks in Europe and visited
Portugal, Spain, Gibraltar, France, Italy and Switzerland.
Kim-OH: Hi ralighbound
Mike_Summey: Roger played while I worked.
Kim-OH: Roger that sounds wonderful
Doug_CT: Did you buy any real estaste over there Roger?
Kim-OH: Mike I did notice that but I’m certain you will get to play while
Roger works at some point
Roger_Dawson: No, Doug. The Euro is so strong against the dollar that
everything costs a fortune.
Mike_Summey: Hi Bob Carr, I saw where you joined the site today. It was
nice seeing you in Charlotte.
Mike_Summey: flew from Baltimore to come listen to me in Charlotte.
raleigbound: hi guys
gabi: Roger - We were going to go to England ( my husbands home country
like yours) and to Germany (where I was born), but we are building a barn on our
property and decided to finish it instead.
Roger_Dawson: European prices of real estate convinced me that American
prices can still go way up and people will still buy.
Alan_In_Rochester,_NY: You two interested in my Question?
Kim-OH: Indeed Roger
Mike_Summey: Roger, I did an interview with a reporter from the Herald in
Halifax, Nova Scotia this afternoon.
Roger_Dawson: Gabi, that’s a coincidence. My wife is from Germany.
gabi: Roger - my friends say the same thing. They are amazed at how cheap
the real estate is here.
Doug_CT: That is a good insight Roger, I find when you travel abroad you
get some keen insights into the beauty that is America.
Mike_Summey: Alan, what question? did I miss it?
Mike_Summey: Hi Penny
Roger_Dawson: Hi Penny!
Penny: Hello Mike.
Alan_In_Rochester,_NY: Yes, about Upstate NY….Do you plan to have a
seminar withiin the next year?
Kim-OH: Hi Penny
Mike_Summey: Hi Dean
gabi: Roger - I thought so. The names of your wife and children sounded
like my cousins.
Penny: and Roger!
Kim-OH: Hi Dean
Mike_Summey: Hi Paul
gabi: Hi Paul
Dean-Weaverville: Hi everyone
bobcarr: Thanks Mike, I learned a lot Saturday, you really opened up my
eye’s of what can be done if you set a goal in front of yourself
Paul-CA: Greetings Mike. Hi Everyone.
Kim-OH: Hi Paul
Alan_In_Rochester,_NY: *meow*
Doug_CT: Here is a scary thought gabi…Maybe Roger IS your cousin!
Mike_Summey: Alan, was that your question?
Roger_Dawson: Hi Alan, sorry I missed the question. Toronto is as close
to Rochester as I’m going to be.
gabi: Doug - You are a joker again tonight
Alan_In_Rochester,_NY: Oh, OK…is that soon then? I want to plan for
tickets
Mike_Summey: Has anyone bought anything during the past month?
Roger_Dawson: Toronto this year is for a company, so it’s private, but
I’m doing a public seminar in Toronto July 2006. Probably better if you bought
the book!
gabi: I bought your book and Al Lee’s book at the seminar he gave.
Alan_In_Rochester,_NY: I did…..And I’ll plan for that
seminar….Discounts for Website users? 
Roger_Dawson: I’m speaking in Kuala Lumpur, Malaysia in two weeks, if
anyone would like to come.
Kim-OH: gabi, how was Al’s seminar?
Mike_Summey: Gabi, how was Al’s seminar? I haven’t heard him speak.
Kim-OH: mike I asked first LOL
gabi: Kim and Mike - It was good. Very inspiring - just like your book
Mike and I feel that we are definitely going in the right direction.
Mike_Summey: Kim, you’ve always been quicker than me.
Paul-CA: I met Gabi at Al’s seminar. He is very professional and knows
his stuff.
Alan_In_Rochester,_NY: *choochoo* I wonder how Mike’s life turns out. I
haven’t finished it yet.
Dean-Weaverville: I haven’t bought anything yet but I read the new book.
It was great. I,m going through it again now.
Paul-CA: Hi Gabi
gabi: Hi Paul
Roger_Dawson: Alan, he gets murdered by his butler in the last chapter.
Kim-OH: Paul could you pick a different colour please, the yellow is hard
on my old eyes
Mike_Summey: Paul, thats good to hear. Al is a regular in our chats, but
I haven’t had the privledge of hearing him speak.
Paul-CA: How’s this?
Alan_In_Rochester,_NY: Is that why he looks like that? *evil*
Kim-OH: Paul thanks much better
Roger_Dawson: We all get yellow when the writer mentions our names.
Kim-OH: Roger and you are stunning in yellow
Mike_Summey: *whip*
Alan_In_Rochester,_NY: 
Mike_Summey: that was for you alan.
Alan_In_Rochester,_NY: 
reena: No Mike,although I have made few offers which were rejected. There
does not seem to be much negotiation. Also the real estate agents don’t want the
buyer to meet the seller. What are the possiblities in this market. And I have
heard Roger’s audio tapes-very inspiring.
gabi: Mike - I wanted to ask you how you feel about the new loans that
are 30 year fixed, the first 10 years interest only and the 20 years amortized.
Doug_CT: I have a couple of things in my sights for purchase in the next
month. It it tough staying disciplined to get out there and put in the elbow
Grease.
Kim-OH: Reena, I have had all my offers shot down lol, it’s a numbers
thing and you are right agents can get in the way
Mike_Summey: gabi, I wouldn’t have one of them. I think they are
dangerous. Besides, I like to pay my properties off before I die.
Kim-OH: Hi Larry
Mike_Summey: Larry
Mike_Summey: Hi Larry
Paul-CA: Mike, I thought you were immortal
Kim-OH: Hi Al
dwayne_wiseman: ..Mike I agree with you.
Kim-OH: Hi Bruce
Larry: Hello everybody
Mike_Summey: Paul, bullet proof, but not immortal.
Al_Lee: Howd. Better late than never.
Roger_Dawson: Gabi, I agree with Mike, but 30 year fixed is a lot better
than 10 year interest only and then the rate floats.
Kim-OH: dwayne I agree with both you and Mike
Al_Lee: Howdy
raleigbound: hi Al
Paul-CA: Hi Al. We were commenting on your great seminar.
Bruce: Hello Kim
Mike_Summey: Hi Al, I was just talking about you. We gotten some good
reports on your seminar.
Rob_FL: For those who have held onto properties for a long time, have you
gotten "hurt" when the market turned and values didn’t go up or maybe
even decreased?
gabi: IMike I just read an article by Suze Orman and she says the same as
you
Ralph_Roberts: hi Al!
Alan_In_Rochester,_NY: When I meet you two in person someday, at least I
am memorable enough where u 2 can take pause and chat deeply…Also, it won’t
hurt to have a few homes under my belt.
Al_Lee: Hi, Paul. Thanks a lot.
gabi: Hi Al
Al_Lee: Hi, Gabi
Mike_Summey: Rob, how can you get hurt if you don’t intend to sell? I’ve
been buying for 33 years and have never sold one.
Alan_In_Rochester,_NY: What Gabi? What does she say?
Al_Lee: Hi, Mike. Hope you put your tiem off from the chats to good
use–resting, maybe?
Jeff: Mike (I have not read your books yet…I have ordered them) … but
you just said you like to pay off your properties…do you try to pay properties
off as soon as possible (reinvest rents into early payment) or just over the
"natural" course of the mortgage?
Roger_Dawson: Rob, that’s a problem if you’re speculating meaning
gambling on it going up. If you buy the way we tell you in the book, it doesn’t
kill you if prices don’t go up. You still get rich but more slowly.
gabi: Al - I was just telling everybody about your seminar - how good it
was and I’m liking your book - very informative and right on par with what Mike
and Roger say
Al_Lee: Thanks, gabi. I am glad you enjoyed it.
Mike_Summey: Jeff, I try to finance the properties on the shortest term
that will work and then let them pay off naturally. As cash flows increase, I
don’t plow that back into reducing the loans, I set part of it aside as cash
reserves to protect me if the market softens.
Rob_FL: Roger, do you also put all properties under your own personal
name and have loans all under your name?
Al_Lee: Gabi, I think Paul has already started followign my advice on his
borrowing–his Equity loan, right Paul?
Paul-CA: Al-Yes. The rates have dropped last week. Not sure why, but they
have.
Jeff: ty Mike… when you were first starting…how leveraged were you
and how different were the markets than now (I know things quite variable…but
in terms of general interest rates, perceived price levels, etc.)
Roger_Dawson: Rob, yes, I’ve always held them in my name, not a
corporation, etc. You’ll almost always have to have the loan in your name.
Rob_FL: Mike, can you define what you mean by the "market
softening"? That is what I meant by the market "turning"–it
could pose more risk??
gabi: Al - Paul - Equity loan vs. Equity line ?
Al_Lee: Paul: Alan Greenspan can’t even explain why rates are what they
are. I don’t worry too much about why, but just how I can take advantage of it.
Mike_Summey: Jeff, the numbers were smaller then, but in the beginning I
was leveraged to the hilt. It took years to gradually get properties paid off
and to build adequate cash reserves.
Roger_Dawson: I had lunch with Alan Greenspan once, and I agree with Al.
He didn’t know either.
Paul-CA: Gabi-Equity loan.
Jeff: thx again… y AL I think his current term is "conumdrum"
gabi: Paul - are you using that for the downpayments?
Al_Lee: Jeff, yes but even that won;t prevent pregnancy every time
Jeff:
Mike_Summey: Rob, I held all of my properties in my own name up until a
few years ago when i transferred them all to llcs. I did it more for estate
planning purposes than any other reason. even with the properties in llcs, Roger
is correct in that you still have to sign the loans in your personal name most
of the time.
Roger_Dawson: Pregnancy would be irrational exuberance for me!
dwayne_wiseman: Talk with you later Gabi and Mike.
Jeff: Mike/Roger/Al …At what point did you buy commercial properties
Paul-CA: Gabi, yes, as I have large amounts of equity in the properties.
I don’t plan to do this too often, but the market is favorable right now (in our
favor, that is)
Kim-OH: bye dwayne
gabi: Thanks Dwayne
Al_Lee: Roger, after you brow beat me into having my oil changed my gas
mileage went up 2 mpg!
Roger_Dawson: Al, that’s great. It must have been pretty gunky in your
oil case.
Mike_Summey: Rob, when I refer to market softening, I’m talking about the
market shifting from a seller’s market to a buyer’s market. the market softens,
prices level off or decline because there are more sellers than buyers.
Al_Lee: Roger: Naw! They managed to scoop most of it out without much
trouble.
gabi: Paul - good that is our situation too. I have a bunch of equity in
our property and thought that an equity line might be good. An equity loan would
be fixed I’m assuming?
Mike_Summey: Goodning Dwayne. Glad you joined us. Come back any time.
Al_Lee: gabi: I tell people that is is foolish to get an adjustable rate
while rates are still so low.
Alan_In_Rochester,_NY: I heard llc’s are so new {1994} that there are
grey areas where the judge can rule against you in a verdict…Compared to flp’s
which are safer?
Mike_Summey: Jeff, I didn’t get into commercial properties until I had
several single family homes and a few small apartments. Commercial deals are
much risker and require a lot more knowledge to be successful with them.
Roger_Dawson: Gabi, don’t let banks tell you that it has to be
adjustable. There are a thousand sources of loan funding out there right now.
Paul-CA: Gabi- yes, fixed rate.
reena: Mike, the real estate agent still comment that sellers are getting
the quoted/listed price. How do I judge that the market softening?
Larry: Mike, My wife and I spent last week at Grove Park Inn for our 20th
Aniversary. You live in a great town.
Jeff: (I hope you don’t mind my newbie questions) — I expect you’ve been
asked this many times Mike — but do you think there is a "housing
bubble" about to pop or is it localized (as Greenspan as suggested) or
non-existent… and if so, how concerned would you be to start out in this
environment
Mike_Summey: reena, by making offer that work for you not the sellers.
When they start being accepted you will know the market is softening.
Roger_Dawson: Reena, length of time on the market is a good judge of
that. Boards of Realtors figure that out constantly and every Realtor has access
to it.
gabi: Roger - So it sounds like I should definitely go for a fixed rate
equity line or loan to use as down payments if I must?
Mike_Summey: Larry, thanks! We’ve known that for many years. Where are
you from.
Rob_FL: What is a good strategy for getting expired listings if you don’t
already have a close realtor friend?
Alan_In_Rochester,_NY: llc’s are too new {1994} Judges may rule against
on certain verdicys. Wouldn’t flp’s be safer? *choochoo*
Roger_Dawson: Gabi, I think so. I seems likely that interest rates will
go up not down, but was saying that three months ago and they went down a
little.
Mike_Summey: Alan, flipping properties is not investing, its speculating.
Mike_Summey: I’ve never seen speculating be as safe as investing.
Al_Lee: Alan in Rochester: What is you motivatin for forming an llc or LP
or any other entity?
Alan_In_Rochester,_NY: Family Limited Partnerships
Mike_Summey: Hi alphonza
ALPHONZAWILL: hello everybody
Larry: Raleigh- My curiosity got the best of my so We found your gates.
Tell us about Zanado
Alan_In_Rochester,_NY: Protection
Mike_Summey: Larry, check out the picture in the "Press Room"
on our website.
gabi: Roger - Good so I’ll look into the fixed rated ones to be sure. Do
you think it’s an ok thing to do to use the equity in your house for the down
payments? (Provided that the NOI will cover those)?
reena: thank you for your insight.
Roger_Dawson: Rob, you can ask the seller if you’re not a real estate
agent. If you are it would be unethical.
Bruce: Mike on multi-family units most banks are quoting me 20% down. How
have you gotten around this when you have the seller carry financing?
Al_Lee: Alan…: You can buy liability insurance pretty cheaply and leave
the propertie sin yoru name like almost every self-made millinaire I know has
done. Mike just todl us he recently formed llc for estate planning reasons.
Alan_In_Rochester,_NY: Not talking flipping in my comment …but it iS an
option
Al_Lee: Alan: You will find it much harder to get gooo loan rates and
terms borrowing into na entity. you can get the best loans in yoru personal
name.
Larry: OK- We are planning to take some of our key property managers and
workers back to Grove Park in the fall
Paul-CA: Gabi- You would be suprised on how much real estate could be
purchased in TX, using your equity. I heard that is the next hot market… not
that I follow that, but the numbers work well.
Alan_In_Rochester,_NY: AL: Should I consider my name early on and then
switch over? I want total Asset protection
Rob_FL: Roger, I was wondering about a getting a big list to send out a
mailing campaign for expired listings. Are saying to try to find the seller
information who are listing their property and ask them when their listing is
expiring?
Mike_Summey: Bruce, one good way is to get 30 - 50% loans from the bank
and then let the sellers carry the balance.
Alan_In_Rochester,_NY: Ever invest in tax liens?
Al_Lee: Alan, if you want total asset protection you need to use an LP
with and LLC as the GP. If you contact me offline I will give you more
information on the details
Al_Lee: Alan, it is expensive, but it is what you need if you reall y,
really want protection
ALPHONZAWILL: hello, first timer here
Bruce: Mike, is that because the banks liability is less? Or do other
issues factor in?
Alan_In_Rochester,_NY: thanks AL
Roger_Dawson: Rob, I would do a Google search for the address and see if
I could find the name of the seller and just call then. Calling is much more
effective than mailing.
Mike_Summey: Larry, let me know when you are coming and maybe we can have
a cup of coffee together.
ALPHONZAWILL: looking 2 GET into investing withih next 9 months
Mike_Summey: Bruce, when you can keep the bank liability below 50% you
can do just about anything you want.
Larry: Mike, I’ll buy dinner at your favorite rest.
Alan_In_Rochester,_NY: Thinking tax liens, but NY is a deed state.
Bruce: Mike, got it, thanks,
Mike_Summey: Larry, sounds good to me.
ALPHONZAWILL: HEY mike
Mike_Summey: Hey Aphoonxa
Roger_Dawson: Larry, don’t let him go to the Popcorn scrimp place. That
stuff will kill you both.
Mike_Summey: See Alphonzawill that’s too hard to type. Next time just
come as al-p
ALPHONZAWILL: what do u think is the best way 2 get in the market in
houston
ALPHONZAWILL: ok
Mike_Summey: that’s my friend Roger talking. He worries about my health.
Alan_In_Rochester,_NY: watch out for dem ’southern crawdaddies!
Al_Lee: alphonzawill: Do you live in Houston? IF you do, I’ll direct you
to a good contact there.
ALPHONZAWILL: yes , i do
Mike_Summey: al-p the best way is just to start. Read our real estate
book and then follow the steps in the last 8 chapters.
Ralph_Roberts: I’m back from deepest cyberspace
Bruce: Al, is there waiting lists for housing in San Antonio?
ALPHONZAWILL: looking at multi - fam housing
ALPHONZAWILL: ok
Ralph_Roberts: Larry > I saw your question about Xanadu (Mike’s home)
… here’s the classic description of it:
Al_Lee: Bruce, i don;t know. I have never been able to find deals in San
Antonio as good as what I buy in Dalls/Fort Worth, so I don;t own anything
there.
Rob_FL: Speaking of protection…..do you all put your properties under a
land trust? I have heard that it is a good idea to always put each property you
have into a land trust….
Larry: Roger, We ate at Left Bank, Downtown- good cajun food
Ralph_Roberts: In Xanadu did Kubla Khan A stately pleasure-dome decree :
Where Alph, the sacred river, ran Through caverns measureless to man Down to a
sunless sea. So twice five miles of fertile ground With walls and towers were
girdled round : And there were gardens bright with sinuous rills, Where
blossomed many an incense-bearing tree ; And here were forests ancient as the
hills, Enfolding sunny spots of greenery. … by Samuel Taylor Coleridge, from
"Kubla Khan"
Jeff: Mike — have you primarily invested in properties in your immediate
area?
Ralph_Roberts: that’s close, anyway
Mike_Summey: Leave it to Ralph to come up with something like that.
Paul-CA: Ralph - *)
Mike_Summey: Jeff, I hae two area where I invest. Asheville, NC and
Anderson, SC.
Mike_Summey: Hi Ray
Roger_Dawson: Ralph, did you do that from Memory? I’m impressed!
Bruce: Paul-CA, are you buying anything in the DHS / Palm Springs area?
Ralph_Roberts: if you say so, Roger … actually I can do a good part
of Coleridges "Rime of the Ancient Mariner"
Ralph_Roberts: I wuz educated, even up heah in the mountains
Larry: Ralph, that is what I pictured it like
Roger_Dawson: Water, water, everywhere and not a drop to drink!
Mike_Summey: See Roger, I told you he was smart, even if you didn’t
believe me.
Ralph_Roberts: I understated it if anything, Larry.
Ray…NC: Hi Mike, Hi All
Paul-CA: Bruce - No. The rental market, except as vacation homes, is too
soft. I am looking at TX.
Ralph_Roberts: and all the boards did shrink, Roger
Paul-CA: Bruce - What kind of properties are you interested in?
Mike_Summey: Welcome back Al-N-Houston
Al_Lee: I think that I shall never see, a poem as lovely as a beer. The
kind that Joe’s bar has on tap, with golden base and foamy cap–Mad Magazine,
1960
Jeff: I understand Asheville has attracted a lot of Floridians over the
years and is obviously beautiful…how, if I may ask, did Anderson get on the
radar?
AL_n_houston: thx
Ralph_Roberts: I read that, too, Al.
Bruce: Paul, sfr’s and multi-unit
Al_Lee: Ralph, I thought you might be as well-read as I
Roger_Dawson: Vacation areas like Palm Springs, Tucson and Florida
present real problems for the kind of investing we suggest. It’s too seasonal to
get good year round tenants.
Ralph_Roberts: "What! Me worry?"
Al_Lee: Hell, no. Iwork for the guvmint!
Mike_Summey: Jeff, when I was still in the business world, I had an
office in anderson and had to spend one or two night a week there. since I
didn’t have anything else to do in the evenings, I got out and looked at
properties. I convertied spare time into an income stream.
Ralph_Roberts: heh, heh
Al_Lee: I work for the guvmint
AL_n_houston: cool mike
Jeff: Mike, makes much cents. You designed/sold signs?
Larry: Mike, I’m have some 5 yr baloons coming up. Do I pull the equity
out up to 80% and pay off some sfr or use it to buy large multifamilies?
Mike_Summey: Jeff, our concern is not the Floridians, its the halfbacks.
Roger_Dawson: He turned sex drive into success drive as Napolean Hill
said in Think and Grow Ric
Bruce: Mike, how are the book sales doing? Hopefully beyond your
expectations.
Jeff:
Alan_In_Rochester,_NY: Tke care guys, I’ll be back in a month or
so…I’ll have finished the book so I can ask more questions. Goodbye. *evil*
Roger_Dawson: Bye Alan
Ralph_Roberts: good night, Alan
Jeff: gn
Jeff: alan
Al_Lee: ‘night
gabi: Roger - I found that the rents don’t work in Arizona with what the
asking prices are
Alan_In_Rochester,_NY: :>
AL_n_houston: hey like, how important is credit
Jeff: Gabi..i just read a Fortune article that made it sound like AZ was
speculator’s frenzy
Mike_Summey: Larry, if you can find deals you may want to use some of the
equity to buy more, but if you can’t I’d recommend that you consolidate the
loans to fewer and fewer properties as the years go by. Free and clear
properties give you lots of options and clout with your banks.
Roger_Dawson: Bruce, the new book is doing well, it’s already outselling
the first book, which continues to sell well.
Mike_Summey: goodnight Al
Bruce: Roger, that
gabi: Jeff - Yes - it seemed that half the country was buying there
Bruce: is great, I’ve suggested it to numerous people.
Roger_Dawson: Thanks, Bruce, that’s what keeps it selling.
Mike_Summey: Al-n-houston, there is probably nothing more important to
long term success than good credit.
Jeff: crazy people buying props sight unseen…and leveraged to the
hilt…not the game for me
Al_Lee: Jeff: The trick is to buy in areas before the buying frenzy
drives prices up
Bruce: Roger, now it’s time to start getting more of your tapes. Need to
keep your cash flowing.
AL_n_houston: ok, getting it cleaned up as we speak
Larry: Mike and Roger, My wife took pictures of me reading your new book
at the fireplace in Grove Park and in the spa. I’ll email them to you
Mike_Summey: Is anyone coming to the seminar I’m conducting in
Spartanburg, SC this coming Saturday?
Bruce: Mike, no, I’ll be in Mexico.
Mike_Summey: Thanks Larry. I’d appreciate that.
AL_n_houston: r u coming 2 texas anytime soon
Dean-Weaverville: Mike,I assume having us buy the book on the right day
was to set some record. How did that go?
Jeff: I live in KS…but am looking intently at TX…for mostly personal
reasons…but it is hard for me to know…Austin was hit hard after the tech
bubble…but everything is so relative to me…my brother who lives in FL…to
him the TX props look cheap (in general terms of course) to me…expensive
Dean-Weaverville: I’m hoping to be there saturday
Mike_Summey: Dean, it simply gave the book a big kickoff which always
helps. That’s so much for buying it then.
Jeff: at any rate…al that to say…agree Al_Lee
Paul-CA: Mike - For those of us less fortunate to be in the area, do you
have a recorded seminar as well?
Al_Lee: Jeff, what you should look at is the ratio of purchase price to
rent. That is more important than the absolute price relative to prices in KS,
or FL, or anywhere else.
reena: good nite everyone. see you next week.
Mike_Summey: Al-n-houston, I don’t have any plans currently to be in
Texas, but that could change quickly. Keep watching the events calendar on our
website.
gabi: Paul - I’m glad you asked that of Mike - just my question
Mike_Summey: Dean, I hope you make it.
gabi: Bye Reena
AL_n_houston: ok, will do. gotta get back on the road.
Dean-Weaverville: Mike, I bought two copys. I’m trying to get my inlaws
to see the light.
AL_n_houston: will you be in next monday
Jeff: yes Al… and ultimately…I think Texas has a lot to offer (#4 in
overall taxation) and lots of industry. So they’re not making more land these
days, I guess
Mike_Summey: Paul, I think I am going to videotape the Spartanburg
seminar. If it turns out well, we may make it available on the website.
Jeff: that would be great Mike
AL_n_houston: thx jeff
gabi: Mike - good idea about the video - I’ll look for it on your website
Mike_Summey: Dean, they have to want to get better before the will.
Paul-CA: Mike - Thanks.
Al_Lee: Jeff: I wrote an article about two years ago about "Why
Texas" and it outlines a list of reasons why I will only buy residential
propertie sin Texas. I do buy soem commercial proeprty elsewhere, but never
residential/
Dean-Weaverville: Good night all.
Al_Lee: If you want to read the article, go to http://www.RentHouses.org
and click ont eh "Articles" link. You might find it interesting.
Jeff: Al_Lee…I would like to read…
Roger_Dawson: Goodnite dean
gabi: Good night
Jeff: read my mind
Mike_Summey: goodnight Dean
AL_n_houston: good nite to all, be safe
Roger_Dawson: Penny, you’re quiet tonight
Mike_Summey: Goodnight Al-n-houston
Al_Lee: Jeff: In fact, there are a lot of articles there that you might
like.
Mike_Summey: Al, I’m going to do Garrett Sutton’s show tomorrow at 12:00
your time.
Penny: Roger, I’m just observing.
Bruce: Al, can you explain more what you stated regarding price vs. rent,
absolute prices? What price to rent ratio is a red flag or very good? What
difference does the ration make if we cash flow?
Paul-CA: Good job on the book Mike & Roger. Gotta run… goodnight
everyone.
Penny: and drinking a little wine while I observe.
Mike_Summey: Goodnight Paul
Penny: Who needs water, water, water, when there is wine!
Mike_Summey: Did anyone get my emails this morning?
Kim-OH: Mike I didn’t
Mike_Summey: And Corona, Penny
Jeff: Yes…I will definitely be readin much in the days ahead…my
brother told me about Mike a few days ago…so I ordered his (and RD’s)
books…and I am reading Mike Masterson’s Automatic Wealth (deals with RE quite
a bit) and Rich Dad’s Prophecy…Everything I learned from Monopoly…
Al_Lee: Mike, I bought copies of yoru book for each of my daughters, but
forgoet to buy one for my son. Can I convince you to give me one more book plate
so I can buy one for him?
Penny: yes Mike, with Lime
Bruce: Mike, I did not receive an e-mail from you this am.
Roger_Dawson: Bruce, it’s just a way of eyeballing property. If can buy
the property for no more than 125 times the monthly rent, you can probably make
it cash flow. Then you run the numbers like we teach you in the book.
Mike_Summey: Al, send me an email.
Al_Lee: Mike, Will do!
Penny: I didn’t either.
Mike_Summey: Hi maciek
Roger_Dawson: Maciek, you’re late! We’ve all been waiting for you.
maciek: hows it going
maciek: does anyone know a lot about a 1031 exchange
Bruce: Roger, I assume you would eye ball so you don’t waste your time
and go look at numerous houses that are out of line price / rent , is that
correct?
Penny: Gotta run
Jeff: oy… accidently bounced…is there a way to get a copy of the
chat, Mike? …was hoping to do so before got bounced
Mike_Summey: Maciek, just enough to be dangerous.
gabi: Bye Penny
Al_Lee: Mike, Roger, Ralph, everyone! I need to run now. Family affairs,
you understand. Talk to you next week, or sooner by email. Al
Penny: ‘Nite Mike and Roger, and all.
Bruce: Roger, and if the price ratio is close, then investigate further?
Al_Lee: Goodnight!
Ralph_Roberts: nite, guys
Roger_Dawson: That’s right Bruce. Mike a numbers man and he hates me
talking about eyeballing, but it saves time.
Kim-OH: g’night Penny and Al
Mike_Summey: Jeff, it will be posted on the website within minutes of its
conclusion.
Jeff: take care Al…nice to talk to you and thx for the link
Jeff: super…ty Mike
Penny: p.s. gabi, hit got a racoon the other night
Mike_Summey: Roger doesn’t want to debate that with me.
Penny: see ya next week.
gabi: Penny - you are a wild woman
Mike_Summey: Penny, does gabi know something we don’t?
Penny: not really, had to close my eyes when I pulled the trigger.
maciek: if you have a couple of properties and use a 1031 exchange to buy
a more expansive property do you still have to pay taxes on the whold amount if
you live in the more expansive property for 2 years
Penny: just used the bb’s though, I didn’t want to kill him, just scare
him away.
Bruce: Good night
Larry: Mike, I have met with 2 different "financial advisers".
of course they want me to pull all my equity out and give to them to put in
mutual funds. I told them I was staying in real estate
Mike_Summey: Penny, have you become a big game hunter?
Kim-OH: Maciek, if you want to do a 1031 you must only exchange
investment property for investment property, after a period of time you could
move into the exchanged property
gabi: Penny - that makes sense
Roger_Dawson: Maciek, it has to be like for like property and then the
gain on the first property reduces the purchase price on the second property
(for tax purposes only) So eventually you have to pay the capital gains but you
can defer it with a 1031
Penny: no, your memory is short, we were in the chat room together last
week,
maciek: how long would the period be
Mike_Summey: Larry, that’s smart. I’ll match the performance of my real
estate ove more than 30 years with any financial advisor’s recommendation.
Jeff: esp mutual funds!
maciek: so you cant move into it for 2 years not to pay any taxes at all
Penny: tata all again, until next week…….\
Larry: They were talking 12%- We can beat that on every deal, many times
a year
Kim-OH: Maciek you would have to hold the exchanged property for 5 years
and you would have to live in it for the last two to avoid the taxes and use the
personal exemptions
gabi: Larry - good for you. I had the same advice from financial planners
a few years back. I was at that time to scared to invest in real estate and it
cost me dearly. The property prices in our area quadrupled since then. I am
still mad at their advice.
maciek: thanks
Roger_Dawson: You can live in it for the two years prior to selling, but
remember that your cost basis is lower, so your tax liability higher, because of
the deferred taxes.
Kim-OH: maciek you are welcome, talk with an exchange accommodator in
your area to learn the regs
maciek: ok
Roger_Dawson: I have to run folks. Great chat. See you next week.
Mike_Summey: gabi, believe it or not, the first 20 years of my real
estate investing career, I exceeded 100% per year compounded return on
investment.
Jeff: gn Roger…thanks for your words
Kim-OH: g’night Roger, good to have you and Mike back
Mike_Summey: Goodnight Roger.
Mike_Summey: I’m going to have to run also. I have out of town house
guests tonight. Maybe future inlaws!
gabi: Mike - I wish I had met you or heard about you when I first started
to invest. I would be in a lot better place now with your advice.
gabi: Bye Roger
Kim-OH: Mike that sounds interesting
Mike_Summey: Thanks gabi!
Kim-OH: goodnight all, time for me to go as well
Jeff: gn Mike thanks for you time
Larry: Roger, we were wanting to hear aboutyour world travels the last
month.
gabi: Bye Kim - be well
Kim-OH: thanks Gabi
raleigbound: be well Kim & think positive always
Mike_Summey: One reason I’m writing the books and conducting the seminars
today is not for the money, but because I believe the greatest injustice
successful people can do to mankind is to take to their graves the knowledge
that brought them success. I hope you are enjoying our books and audio programs.
Mike_Summey: goodnight all.
raleigbound: bye Mike
Larry: Good Night, Mike and Roger- Thanks for the new book- it was good
reading
Mike_Summey: See you here next week and I’ll send you a reminder if Ralph
will fix the email program.
gabi: Bye Mike - see you next week
gabi: Bye all - have a good night
Larry: Roger, we wanted to hear about your world travels the last month
but it can wait til next week. goodnight
Ralph_Roberts: see you guys later… chat will be posted shortly…
g’nite all.
» Filed Under Uncategorized
Comments
Leave a Reply