Chat 6-27-05 (guest: Carleton Sheets)
Posted on June 27, 2005
Bryan: Hello -
Bryan: Am I late or early?
Bryan: I checked the email - the chat is in an hour.
jelynjj: good evening everyone
Rhonda-FL: Hello all!
Ralph_Roberts: hi all
Mike_Summey: Hi everyone!
Shane: Hi, Mike and Ralph
Ralph_Roberts: hi Shane
Rhonda-FL: Hi Mike - I got your email in time!
Mike_Summey: Glad you could join us Rhonda.
Ralph_Roberts: hi Jack!
Ralph_Roberts: welcome
JackB: Hi Ralph
Mike_Summey: Everyone…Rhonda worked for me for several years and she is
the one responsible for my success. Thanks Rhonda!
Mike_Summey: Hi Jack
JackB: Hello Mike
Mike_Summey: I just spoke with Carleton and he will be along shortly.
Rhonda-FL: Only the organizational aspect of it - but thanks for the
kudos!
Rhonda-FL: p.s. Mike, where’s my royalty checks? 
Mike_Summey: Hi Dave
Davew: Hi, Mike
Mike_Summey: There he is!
Mike_Summey: Hi Carleton
Ralph_Roberts: Welcome Carleton!
JackB: Hi Carleton
Carleton: Hello everyone!
Mike_Summey: Everyone is early tonight.
JackB: must be the guest
Mike_Summey: Yep! Must be!
Mike_Summey: Carleton is one of the most genuine people I know. He truly
walks his talk and that can’t be said for many of the real estate gurus around.
jelynjj: Hello Carleton, I have to say Thank you for your program! I have
learned so much from you already. I am excited to complete the program and
purchase my first property!
Carleton: Fun to be with you. Should do it more often. And thanks Mike,
for the nice comment.
JackB: Carleton, I just finished my first rental deal. I am having a hard
time finding properties. do you recomend useing a broker or agent
Mike_Summey: Those of you who are here early, you should go ahead and get
Carleton started before the chat gets too crowded.
gabi: Hi everyone
Mike_Summey: gabi & mayor
Carleton: Jelynjj, where do you live?
Davew: Carleton, here in NC there is a bill in the legislature that will
virtually ban nothing down "subject to" and "lease options"
including restrictions on seminars that teach these techniques, heard anything
about it? Any comments?
jelynjj: Vancouver, Canada
Bob_Carr: Hi Everyone
mrjones30: Hello room!!!!
Carleton: Davew, I sure have. From what I’ve read it only applies to
investors who b uy properties with a due on sale clause, then "flip"
them to unsuspecting buyers and ther are few if any mortgage payments made. I
been against this as long as i have been i n the real estate education business.
It’s just plain fraud.
Ralph_Roberts: hi Al!
Al_Lee: Howdy, all
Carleton: Jelynjj, I love your city!!!
Al_Lee: Hi, Ralph
Mike_Summey: jelynjj, I just received a nice article about me in the mail
today that ran in the Chronicle Herald in halifax, Nova Scotia. I know that’s a
long way from you, but I’ve been doing a number of radio shows across Canada
lately. have you heard any of them?
Bruce: Hi Carelton, welcome to the chat. What do you see the successful
investor doing versus the wanna be’s? Also, what are the great things people are
doing as a discipline to increase their RE portfolio
Mike_Summey: Hi Al, fingernail, Matt, mrjones, Bruce & Bob Carr. did
I miss anyone?
jelynjj: I have met some investors in the Vancouver area and some RE
Agents who invest. I have asked for recommendations for RE lawyers, property
management companies but they have been quite hesistant to help.
Mike_Summey: Hi Shane
mrjones30: Hey Carleton I have your course as well and I would like to
say thank you for all of the information in it. It’s a lot of information.
gabi: Mike - got an offer today from an agent about a duplex. $140,000
each unit could bring approx 550 to 600 in rent. Needs about 5000 to 8000 in
repairs. Seller interested in financing. wants 12 to 15 % down and finance the
rest at 7%. Too high in my opinion. What should I offer him?
Matt-LA: Hey Mike
Carleton: I have bought several properties for my own account with due on
sale clauses. In one case, they let me assume the mortgage affter the fact. In
another, I had to pay off the mortgage or face foreclosure. But no one was hurt
by my actions.
gabi: Hi Al - thanks for all the great help the other day
Al_Lee: gabi, you are certainly welcome
Carleton: mrjones30, thank YOU too. Where do you live?
mrjones30: Hey Mike, glad to see you on…
jelynjj: No Mike, I have not heard of any. Will you be doing any radio
shows in Vancouver?
Davew: This pretty much will shut them down under any circumstances.
Bryan: Hello Mike, Hello Carleton.
fingernail: fingernail Hi, carelton. we live in Pensacola, florida where
Ivan hit last summer. we wish to invest in rentals, but things are high here and
very limited. what do you suggest? any advice?
Mike_Summey: Hi AZ Bob
Mike_Summey: Hi jyadush
Carleton: I absolutely have no problem using a broker or agent as long as
they present offers they way I tell them.
mrjones30: I live in New York but I’m relocating to Seattle Washington.
Mike_Summey: Hi Bryan
Bruce: Mike, how was your seminar a few weeks ago in SC?
JackB: Carelton, Do you know much about the houseing market in St. Louis?
Mike_Summey: Bruce, it went well. It was professionally videotaped and we
may have it available on dvds soon.
gabi: Carleton - Do you find that the broker sometimes doesn’t give your
offer to the seller if they find it too low?
Bruce: Mike, thanks, let me know so I can buy it.
Ralph_Roberts: URK … lightning storm here… if the server goes off,
look for the big glow on the horizon. *)
mrjones30: Carleton-Is Seattle a good place to start investing? Also I
attended a Art Lowry seminar and he said that you learned from him how to invest
in real estate is that true?
Mike_Summey: gabi, the first broker that fails to present one of my
offers and I find out about it, will be up before the licensing board.
Bryan: Carleton, I have your course that was published in 1997. Though I
only started is this year, I am curiuos if there are any updates in the current
edition that warrant purchasing it. Do I need an upgrade?
Mike_Summey: Hi Mark
gabi: Mike - did you get my question about this deal I was offered today.
MarkNC: Hi Mike, everyone
Bruce: Carleton, are the principles the same for multi-family and sfh’s
re No Money Down?
Carleton: Bruse, the successful investor will spend a lot of time
educating him or her self about the marketplace, then will make a lot of offers.
The wannabes just talk about it.
Mike_Summey: gabi, yes, but I don’t have time to try to analyze the deal
here in the chat. Things move too quickly. Just on the surface, your instinct is
the same a smine.
Al_Lee: Mike, I had a a broker’s agent deliberately not present an offer
to me for my home that I was selling. The result was that I sold the hosue for
full price and all commissions were waived. In exchange I did not get the board
involved.
Mike_Summey: Hi Penny
Mike_Summey: Hi Bryant
Penny: Hi mike
Penny: oops, Hi Mike
Bryant: Hi Mike and everyone
Carleton: Yes, Bruce, the principles are very much the same but of
course, the multifamily analysis is quite different.
Al_Lee: The agent thought that she had a buyer that woudl give her both
sides of the commission instead of just the listing side. She got nothing! Also
got fired!
Mike_Summey: Al, that’s what should have happened.
Mike_Summey: rokers are like everyone else…most are good, but there are
a few crooked ones.
Carleton: Al Lowry is a friend and I have learned from everyone I have
met who is an accomplished investor. No one is totally responsible for where I
am today.
fingernail: Mike and Carelton,is this a good time to invest in rental
properities in Pensacola, florida? Or should we look in the other areas?
Al_Lee: In Texas (and probably everywhere) the borker has a fiduciary
responcibility to the seller unless they have a "buyer’s agent"
agreement wtih the buyer
Mike_Summey: fingernail, if you invest right, anytime is a good time. If
you don’t do it right all the time is bad.
mrjones30: Thanks Carleton…you are awesome!!!
Mike_Summey: fingernail, follow the guidelines in our real estate book
and you won’t go wrong.
Mike_Summey: Hi Rob
Rob_FL: Hi, Mike
Carleton: Fingermail, I can’t imagine an area in the country where it’s
not good to buy…some better than others but there is "good" in every
one of them. Unfortunately Pensacola has experienced some very rapid
appreciation so it makes it more difficult to buy.
mrjones30: Mike or Carleton, do you think we are in a sellers or buyers
market?
Bob_Carr: Mike where is Jason tonight
Rob_FL: Jacksonville is also become a seller’s market, especially after
the Superbowl, but I am sure there are deals out here too.
fingernail: fingernail-thanks as seem to be experiencing a price bidding
war. how does one handle that?
jyadush: Mike, I read the "Weekend Millionaire Mindset" -
fantastic book! I’m a high school guitar teacher and got some of my students
interested in reading it as well. I also own and study your nightigale conant
audio course. same for Carleton’s course. I love this stuff!
Mike_Summey: mrjones, I think we have been in a strong sellers market,
but I am seeing a noticable cooling off and I expect to see many deals in the
next few years.
Carleton: Mrjones, depends on the area. Canton, Ohio is a buyers market.
Most area of Florida are seller’s markets
Mike_Summey: Bob, jason is at a fire department meeting. He may join us
later if he get back in time.
Carleton: Hello Penny
Penny: Hi Carleton, great to see you here.
Mike_Summey: jyadush, thanks for the compliment. I’d really appreciate it
if you would post a reader review on Amazon about the Mindset book.
Rob_FL: What has been your main strategies in these seller markets? Just
keep looking and make lots offers, I suppose???
Penny: I’m enjoying observing, as usual.
JackB: Carleton, what about st.Louis? buyer or seller
Bruce: Carleton, does your software allow for me to put my properties,
expenses, debt etc. to show me a monthly cash flow for all my properties?
Mike_Summey: Hi Steve
Steve: Hi Mike, everyone
MarkNC: Mike, or anyone else, I know in the past you have mentioned that
you have a blanket insurance policy on all of your properties. Any idea how many
houses I need in order to get a policy like tis? I am closing on my third rental
in three weeks.
mrjones30: Thanks!!!! Mike and Carleton
Mike_Summey: Does everyone know how to enlarge the chat screen to full
screen so you can see more?
fingernail: fingernail what kind of strategies would you use for
investing in Pensacola, florida?
Bruce: Carleton, Do you have earthquake insurance for your Calif.
properties? Or a blanket ins. policy?
mrjones30: (Tech Person here)
Mike_Summey: Mark, my insurance is with Nationwide and I believe it takes
10 properties to get their best blanket deal. Not for sure, but check with your
agent.
Carleton: I don’t know much about St. Louis but Cedar Rapids for example,
showed a little over 1% depreciation last year.
mrjones30: What OS are you using?
mrjones30: Windows? Mac?
Bryan: Mike and Carleton - I studied both of your courses for a long
time, but was an ‘armchair’ reader in that I did not get off my butt. I got
started this year and am completely motivated. Though I am still working on my
first deal, I have reviewed and negotiated on several properties. You have both
taught me a lot and the techniques certainly work. Thank you!!
Mike_Summey: Hi reena
reena_ny: Hi Mike
mayorad: mrjones, etc., to expand the size of the window, press the 3rd
button from the right side, called "Float window". Then press the
maximize button on the top right corner of the window that appears.
Mike_Summey: Thanks Bruce!
reena_ny: Got some good news. We have an offer that was accepted. Now
comes the hard part.
Carleton: I don’t currently own properties in California but the two in
Nevada have just standard insurance.
mayorad: The window will then take up the entire size/width of the
desktop.
Mike_Summey: That’s great reena
Steve: Mike, I just finished Mindset - great book! Any thoughts on the
next one being for the not-so-new investor? Maybe a "Tricks of the
Trade" volume??
Mike_Summey: Thanks for the info mayor.
mayorad: My pleasure, Mike.
mrjones30: (Laughs) I guess that answers your question lol!!!
Bryan: I am interested in either of your thoughts about the ‘real estate
bubble’ that everyone is afraid of.
JackB: Carleton, Do you do many "Lease to Own"?
Bruce: Carleton, Where are you doing most of your buying these days?
reena_ny: I would appreciate if you could walk me through the next steps.
Do I need a LLC pror to closing on the house, or should I close it in my name
and transfer the deed to llc?
jelynjj: Thanks Carleton for the answer given to Fingernail… I was
going to ask a similar question. I have heard some investors telling me to
invest outside vancouver b/c the vancouver area is too expensive. From some of
the deals that were offered to me in Vancouver, it seems that yes, you can find
good deals everywhere as long as the financial analysis shows that you will make
money and that the property will not end up to be an "alligator".
Carleton, will you be visiting westcoast to do any seminars?
Mike_Summey: Steve, the next one is already well underway and it will be
called Weekend Millionaire Frequently Asked Real Estate Questions. Due for
release around the end of 2005.
jyadush: Carleton, I wonder if you could explain how your coaching
service works. I am just getting started in the fun, and I am interested in more
help.
Mike_Summey: Hi jacqueline
Steve: Great news Mike
Mike_Summey: Bryan, I’m not concerned about a bubble. It only affects you
if you paln to sell.
fingernail: Carelton and mike , thanks for the information
gabi: Hi Kim - How are you?
Al_Lee: Hi, Kim. Hope you are feelign well today.
reena_ny: Hi Kim, How you feeling?
Carleton: Jlynjj, age has caught up with me. While I still, in my mind,
think I’m 40, my body constantly reminds me that my mind is lying. So, no more
seminars. Just buying real estate and e n j o y i n g life.
Kim-OH: Hi Gabi and Al
Mike_Summey: reena, you can do it either way, but personally if you want
it inan llc, I’d set it up first and title it that way from the beginning.
Kim-OH: On the phone with tech support
Bruce: Mike, if you buy the way you do, a bubble doesn’t matter because
you will cash flow year one anyway. Is that accurate?
Mike_Summey: Hi Kim
Kim-OH: HI Summey
Bryan: Thanks
mrjones30: Good point Carleton that’s what we all should do, we are only
on this planet for a short time.
jelynjj: I completely understand that Carleton! Good for you!
fingernail: fingernail/Mike do you know what areas are buyers markets
now?
Mike_Summey: Bruce, that’s correct and I know it works because I’ve been
doing it for a long time. I’ve been through several booms and busts in the real
estate market, yet I’ve never had a down year personally.
JackB: Kim, Have you heard of the "The Wild women of realestate:?
Kim-OH: Yes JackI attended the first one
JackB: Is it good info or a waste of time?
Bruce: Mike, I have the feeling that we’ll be buying from a lot of
investors who’ve ’speculated’ within the next 8 - 12 months.
reena_ny: Mike, Any other pointers for the first timers? In particular,
signing of a contract with the seller?
Bryan: Thanks Mike, Bruce. I appreciate the feedback. Everyday in the
local paper someone os trying to scare the reader regarding the ‘bust’.
Mike_Summey: fingernail, there are deals in all markets. You can never
look at the overall market situation when trying to determine if a particular
time is right. There are always deals, they are just harder to find at times.
Carleton: Jyadush, in my coaching program, you meet by phone on a
regulare basis with a coach, who will monitor, guide and direct your investing
activities and even make suggestions given a particular set of circumstances or
property. In effect, you are guaranteed to buy one property while in the
program.
Steve: Mike, I am hoping for the "bubble" to bust so it will
help my negotiating position!
Mike_Summey: Good point Bruce. I agree completely.
Mike_Summey: reena, our book shouold give you all you need to get
started.
fingernail: Mike,thanks for the imput.
reena_ny: Thanks. I have read both the books. I need to refresh the
teachings.
Bryan: Carleton, are you still involved in the Chicago market? Any
thought on it?
Mike_Summey: Steve, now’s the time to polish your negotiating skills.
Anyone can negotiate when the other party is dying.
Mike_Summey: Hi CTLandlord.
Steve: true
Bruce: Mike, what was the name of the banker you brought on to the chat
that has banks in NC & Nashville?
Mike_Summey: reena, read and reread the books. You feed you body daily,
why not do the same with your mind?
mrjones30: Carleton-what are the requirements for such a program?
Mike_Summey: Bruce, that was Bob Roberts. He is a regional executive with
First Citizen’s Bank.
CTLandlord: Hi Mike - How are you?
reena_ny: Will do Mike.
Bruce: Mike, thanks
JackB: Mike, Do you have ascheduke of upcoming radio shows I can listen
to via the internet?
mrjones30: I’m interested…..without a doubt in my mind
Mike_Summey: Jack, I try to put them on the website when I have one that
is streamed via the Internet, but I’ve been lax in getting the posted the past
few weeks.
Carleton: Bryan, I have been involved with the chicago market but not at
the present. I have a friend who is getting ready to put some condos on the
market and from what I can see, while property has appreciated, it still is
pretty cheap. I bought a foreclosure in one of the far western suburbs for
$52,000 back in the mid 80’s and sol it in the early 90’s for $96,000. Probably
worth about $200,000 now but still not out of reach by Florida Standards
Mike_Summey: Hi tgoodo1
Bruce: Carleton, are you invloved in lease options?
Mike_Summey: Jack, there are sevearal on the website. Just click on the
"Press Room" button and then click on the radio interviews button.
Mike_Summey: Hi fleger
fleger: hi
tgood01: hello mike
Steve: Carleton, when you get cash back at closing, is that from a
seller-financed purchase or from a bank?
gabi: Al - We’ll be closing the escrow for our refinance this week. Just
got the papers today from the title company. Then on to the next one.
Bryan: Thanks Carleton - sometimes I forget that standards change
geographically. I still see a lot of good ’stuff’ in Chicago.
Carleton: mrjones30, the best thing to do is call our 800 number in
Chicago and they will put you in touch. 800-369-4382.
Al_Lee: gabi- congratulatins. That is a good start
Al_Lee: gabi- did you get my notice about the new radio station?
gabi: Al - yes, I did.
Al_Lee: It was supposed to go out today.
Al_Lee: Good.
Al_Lee: Mike, I am moving to a much more powerful radio station, so we
need to do another gret interview on the new station.
Carleton: Bruce, not currently. But lease options are a wonderful way to
buy property if you gollow the guidelines I teach in my course. Especially good
in a high price market.
Mike_Summey: Jack, did you check out the Press Room?
JackB: Yes I did
JackB: Thanks
jacqueline: Carlton, where are you investing now?
Mike_Summey: Al, anytime! Just let me know.
mrjones30: I’m going to call…thanks Carleton
Mike_Summey: Al, I’ve gotten several emails from people who heard one or
more of our shows.
Al_Lee: Mike, as soon as those book plates arrive 
*meow*
Bruce: Carleton, why are lease options good in a high price market?
Mike_Summey: Al, I’m sorry! I forgot again! I do it tomorrow…for sure!
Al_Lee: Mike, a LOT more peopel will hear us on the new station. It is
about 10X the range
gabi: Al- I was telling Mike that I got an offer today for a duplex.
$140,000, both sides are 2 BD, 1 BA. Projected rent is 550 to 600 each side.
Owner interested in financing. Wants 12 to 15 % down and 7% to finance the rest.
What do you think I should offer him?
Carleton: jacqueline, with the exception of a couple of properties in
Nevada, I’m investing within 30 miles of my home, here on the Treasure coast of
Florida.
Mike_Summey: That’s good Al.
Bruce: Carleton, didn’t you formerly live in Newport Beach, CA? Thought I
saw your yacht a lot.
Al_Lee: gabi- what rent will it command? that is my overriding criterion.
Everythign must cash flow. Especially comin gbehind the first deal you did whcih
is a good buy, but no cash flow.
Steve: Mike, what are your thoughts on real estate investors clubs? Waste
of time?
Carleton: Bruce, you can afford to pay a high asking price in return for
a very large credit for rent paid over several years.
Mike_Summey: Carleton, how is Rick doing. Is he buying anything?
mrjones30: Carleton-Do you recommend any management companies in nevada?
gabi: Al - do you mean how much rent will it command to make it cash
flow?
Mike_Summey: Steve, most of the clubs are very good, especially for new
investors. They bring is speakers, share ideas and you get to rub elbows with
other investors.
Bruce: Carleton, Are you talking about rent credits going towards the
closing costs? Also, what percent should you charge above the market rent for
lease option? 20%?
Carleton: Thanks Bruce but no. My "yacht", all 24 feet of it,
was lost when two hurricanes went over my home last August and September.
Al_Lee: Well, yes, that is sort of what I mean. I mean how much rent can
you get–what will the market bear for that proeprty and can you get a positive
cash flow usign the financing you described.
Bruce: Carleton, sorry to hear about your loss.
Bryan: Mike, is there a good method for determining what my cash flow
should be when reviewing a rental property? I have walked from several deals
because I did not think the cash flow is enough. Am I just greedy? Is $100 or
$200 enough? I find myself concerned about large repairs or expenses. Your
thoughts?
Mike_Summey: Carleton & I were both in Hawaii when our properties
were blasted by the storms.
Carleton: Bruce….a good number…20%
Al_Lee: Mike, my club finds cash-flowing proeprties for the members. ti
is a little different philosophy.
Bruce: Mike, did you fly your plane to Hawaii?
Mike_Summey: Bryan, I will buy a property that has a break even cash flow
in the beginning because I know that with the passage of time rents will
increase and the mortgage will pay down. That’s what I like about the way I
invest…the longer I own a propety the wider the margin gets.
gabi: Al - No, not with the terms the seller is asking for. I would have
to offer much less a percentage in financing to make it cash flow or fix it up a
lot to get a much higher rent. The realtor said if we build out the full
basement and made more space he could get 750 each side for it.
Carleton: Steve, I’ll second what Mike said. I think investment clubs are
terrific.
Mike_Summey: Hi Mickey
Kim-OH: Jack were you asking about the Wild Women?
Mike_Summey: Hi michael
Rob_FL: Carleton, being from Florida also, do you recommend doing
business using an LLC like for the lease options and stuff like that???
Al_Lee: gabi, what are the terms and rate for the financing? Soem sellers
will owner finance because they are selling the proeprty above market value and
an appraisal woeul not bear out the price.
JackB: Yes did you find informative, Do you know when the next one is
Kim-OH: Jack, it was ok, it was informative but as with all things it was
also a selling extravaganza
Kim-OH: Jack where are you located?
JackB: St. Louis MO.
Kim-OH: Jack I don’t know when the next one is I’m sorry
Mike_Summey: Kim, tell me more about the Wild Women. I’m not familiar
with them…at least not the ones you’re talking about.
Mike_Summey: Hi JS
Kim-OH: Jack the Wild Women now has a rotating cast of gurus
gabi: Al - 12 to 15% down, and 7% for the rest (I don’t know yet for how
many years)the realtor just threw that out there today. The owners are in their
80’s and own it free and clear.
Bryan: Is anyone here from the Chicago Metro area or do you belong to an
investment club in Chicago?
Al_Lee: gabi- if it were impossible to find positive cash-flowing
properties, I suppose I weoul settle for neutral, but it is definitely possible
to find positive proeprties, so I won’t buy anything that does not produce soem
cashflow.
Rob_FL: Mike, have you had a large repair item wipe out your estimated
"repair allowance" accumulated for several years?
JackB: It seems like they all sound like they are doing really really
good!
Bruce: Al, how much money do you put down for your positive cash flow
described above?
Kim-OH: Mike I believe that Vena Jones-Cox and Donna Bauer came up with
the concept and the one I attended had Wendy Patton, Pat Tarr, Vena and Dwan
Bent and Sharon Restrepo
Mike_Summey: Rob, yes that happen occasionally on an individual property,
but overall I find it is just a part of the cost of doing business.
Steve: Carleton, when you get cash back at closing, is that from a
seller-financed purchase or from a bank?
Carleton: To whomever asked the question, I have received money bacjk
from a seller as well in a bank financed transaction. Once I sold an apartment
building and the buy walked away with over $20,000 in cash and I could not have
been more pleased.
Steve: (spooky)
Al_Lee: Brude, my own standard is 20%, but I have doen everything from 0%
to 30%. The importatn thing to me is the cash-on-cash roi, and that measn it
must be positive cash flowing.
Al_Lee: If I start buying properties that do not cash flow, the banks
will stop loaning me money.
Kim-OH: Mike, Vena is a wholesaler, rehabber, retailer and landlady
Mike_Summey: Thanks Kim.
Kim-OH: Pat Tarr is an asset protection atty
Al_Lee: I wouel also run out of money since rental income is what I live
on and what pays for the down payments for more houses (supplemented by some
other earnings)
Kim-OH: Wendy Patton specializes in lease options
Kim-OH: Dwan and Sharon are into short sales
gabi: Al - yes, I definitely want this one to cash flow. I’m trying to
figure out how to structure it so that it will
Kim-OH: Mike you are welcome
Mike_Summey: I’ve found that the best way to protect my assets is to pay
my bills on time and not make stupid decisions.
Mike_Summey: And insure them well.
Carleton: Mike, amen!!
Rob_FL: So, Al, you also get the down payments from your own accounts
with the properties all under your personal name, correct?
Kim-OH: Mike I have to agree with you there, but now there are the llcs
the trusts, the equity stripping, yada yada yada
Al_Lee: gabi, wy not use a 30-year amortizing mortgage loan? Use the
10-year interest-only option and the debt service goes way down adn cash flow
goes up
JS: Mike/Al- how commmon is it to get a repair allowance from the seller,
after an inspection is done and just before close
Al_Lee: gabi- it also means an appraisal that will tell you if you are
paying too much
Kim-OH: Al with the interest only does that make for a balloon payment at
the end?
Bruce: Al, how does debt service go down on an i/o?
Al_Lee: JS: I do it all the time!
Mike_Summey: Carleton and I get a chance to see what each other does, so
we know whether the other one is blowing smoke or not.
JS: good to know
gabi: Al - Good idea, I’ll plug that into your amortiz.schedule and see
if it will cash flow that way
jacqueline: I am just beginning and was wondering how are most of you
financing your investments?
Al_Lee: Brude, your payment will be only for interest, taxes, and
insurance. A lower payment
Al_Lee: Bruce, sorry for mistyping your name every time
Mike_Summey: JS, I always negotiate the price according to how much work
needs to be done. I may not get cash at closing for the repairs, but I will get
a reduction in the price.
Bruce: Al, no problem. Isn’t debt service going down actually the
principle amount decreasing?
Penny: kim-oh, I’m curious about that also, with the interest only does
that make for a balloon payment at the edn?
Al_Lee: Kim: No, ther is no balloon. Whan I say interest only I mean with
a fixed-rate 30-year loan. Never use an adjustable rate loan for long-term
investments. Only for very shor term.
JackB: Mike or Carleton, Do you know were I can get spread sheets to
track propertys?
Kim-OH: HI Penny the list is so long I didn’t see you in here LOL
gabi: Mike - so if I have between 5 - 8000 in repairs for the property
thats being offered, I should definitely get a reduction in price for those
repairs?
Penny: Hi Kim.
Mike_Summey: jacqueline, there are as many different ways to make a real
estate deal as there are combinations of people and properties. I don’t have a
"standard" way of getting financing or any other aspect of investing.
I find out what works for a given situation and try to do that.
gabi: Penny - I missed you too.
Kim-OH: Hi denmage
JackB: Something to plug numbers in, repair cost, rents, mortgages?
Al_Lee: Penny, the loans I use are for 30-years and the interest rate is
fixed for the entire term. The only special provision is that for the first ten
years I don;t have to pay any principal payments (but, I may if I care to any
time).
denmage: hi kim-oh
Carleton: JackB, think what you are looking for may be a part of my
RealEstate Toolkit. Mike, do you agree?
Penny: Thanks for the hello, hope you are feeling stronger evry day!
Mike_Summey: gabi, that’s correct.
Bruce: Carleton, do you have a preference, I/O or fixed rate mortgages?
Kim-OH: Penny, thanks I’m starting my second round of chemo on Wednesday
JackB: How do I get it, go to your web site?
Penny: Hi gabi too! I slid in quietly.
Al_Lee: Bruce, interest-only and fixed-rate are not mutually exclusive. I
use fixed-rate loans with the interest-only option
Carleton: I prefer fixed rate but then consider my age and conservative
nature.
Bryan: Carleton, what all is in your toolkit?
Kim-OH: Al where do you find those loans?
gabi: Penny - It’s a busy talk today.
JackB: and how much is it?
Al_Lee: Kim, the lender we have in our club does them all the time.
Al_Lee: I have about 10 liek that now.
Mike_Summey: Jack, I agree with Carleton. His Toolkit is a great asset
and I strongly recommend it. It is available on our website.
Kim-OH: Gabi, you are right it is a busy chat tonight
Al_Lee: They have done a hundres for members in recent months
JackB: great, THanks
Bruce: Mike , does the toolkit give me the ability to track my
properties? Expenses, cash flow, debt etc.?
Penny: Al, I think I understand. after the first 10 years the value of
the house has increased and if you wanted too you could refinance also? if rates
were lower
Kim-OH: Al, that’s a plus, we have lots of mortgage brokers in our
association and I don’t use any of them
Al_Lee: Penny, that is exactly correct.
Mike_Summey: Bruce, yes! That and more.
denmage: Mike, you also have some great forumlae in the first Weekend
Millionaire book. I put them into a spreadsheet in my Pocket PC and carry them
around with me.
Al_Lee: Penny, I can prove that you will make more money in the short
term and in the long term with those loans–and hav elower risk
Bruce: Mike, is it in the property manager section?
Carleton: About every thing imaginable you’ll need. Forms and planners
and calculators…I am so proud of it and it’s so inexpensive. Call 800-369-4382
and order it for under $100. If you don’t like it send it back for a full
refund.
Penny: thanks Al
Mike_Summey: denmage, that’s great. You’re going to love the program
we’re currently developing called the Weekend Millionaire Offer Generator.
denmage: Mike, is it for the Pocket PC?
Mike_Summey: Bruce, is what in the property manager section?
tgood01: Mike is there a beta version of the software ?
Mike_Summey: denmage, it could be. I hope to have it ready this fall.
mrjones30: Can anyone give me an idea of what the tax loophole
depreciation means?
Carleton: Mike and all you wonderful guest. I’m going to sign off now but
thanks! Thanks for the enthusiasm and the wonderful questions.
Bryan: Bruce, it is on the main page about half way down on the right.
Mike_Summey: tgood01, you’re over my head now. I’m not the computer guru.
Bruce: Mike, the ability to run a cash flow analysis with numerous
properties
denmage: Mike, if you need any help let me know. I develop software and I
have been selling software and ebooks for Pocket PCs on Handango.com and
Pocketgear.com.
mrjones30: Thanks Carleton you are awesome!!!!
Al_Lee: mrjones- depreciation is not a tax loophole, but you are allowed
a depreciation allowance for real estate even though it appreciates. That might
be what you are referring to
Bob_Carr: Night Everyone
Bryan: Thanks Carleton - for everything.
gabi: Mike - that sounds like it would be a big help for us
Mike_Summey: Carleton, you don’t have to leave just because its 9:00
mrjones30: Yes, it was
Penny: Goodnight Carleton, thanks soooo much for guest appearance!
Penny: give Galina a hug for me!
Mike_Summey: Carleton, you sure bring out a good crowd.
Bruce: Bryan, on the property analyzer?
Carleton: I will Penny. Love ya!
gabi: Bye Carleton
Bryan: Bruce - Sorry, I thought you meant Carleton;s tool kit.
Penny: u2
Mike_Summey: It’s cocktail time in South Florida, so Carleton had to
leave us.
Kim-OH: Al, in fact on depreciation even if one doesn’t use it the IRS
will insist on depreciation recapture at the time of sale, right
jacqueline: Thanks for the info!
Mike_Summey: He waits until we have a room full of people and then leaves
me to answer everyone’s questions.
Al_Lee: kim, no that is not right. You can only recapture depreciatin you
have taken
Rhonda-FL: Mike, my husband and I have enjoyed observing the chat. I’ll
contact you over the next couple of days. It’s our cocktail time too. We do live
in FL you know!
Kim-OH: Oh my folks are jumping off like fleas on a dog LOL
Kim-OH: Al, are you sure about that
Al_Lee: Kim, I wrote soem articles about deprecaition and posted them to
my website, You can fidn them pretty easily there.
Mike_Summey: Thanks Rhonda. Goodnight! I look forward to talking with
you.
Penny: hehe Kim, good one
denmage: Mike, I have a question completely unrelated to real estate. I
have a book that I am ready to publish (Enjoying…Your Russian Adoption). When
you first published Weekend Millionaire, did you consider self publishing or did
you shop it around to several publishers. I am considering self publishing, but
I wondered if you could give me any advice. Thanks.
mrjones30: Wow…I have to move to florida….Free cocktails!!!!
Kim-OH: Thanks Al, I will check them out
Kim-OH: Hi Ralph!!!
Bryan: Bruce - my mistake.
Ralph_Roberts: hi Kim
Mike_Summey: denmage, I was fortunate in that McGraw-Hill bought the book
before it was even written and has continued to publish everything I’m willing
to write. I know that’s unusual, but I guess I’m jsut lucky.
Al_Lee: denmage- I publishe dmy book with the help of a friend who ones a
publishing company. IF youemail me offline, i will tell you all I know.
Bruce: Bryan, what is the difference between what you’re talking about
and Carletons’ version 7.1
Kim-OH: Ralph, you look lovely in Red
denmage: Thank you Mike and Al for the responses.
denmage: Al, what is the best way to get your email?
Ralph_Roberts: I’ve always been well red. 
Penny: No such thing as luck, remember Mike?
Mike_Summey: Hi The Wayne
Al_Lee: denmage, go to my website www.RentHouses.org and click on
"email Al"
Kim-OH: LOL @ Ralph
denmage: Thanks, Al!
Mike_Summey: Wayne, you’re late, you just missed Carleton.
Kim-OH: Mike you scared him off
Mike_Summey: Looks that way.
Bryan: Nothing. I thought it was part of 7.1 but I cannot find it. I am
still looking.
Penny: Night all. Need to eat dinner and relax a while before bedtime.
Mike_Summey: See…Carleton leaves and so does everyone else. I guess you
guys don’t love me anymore.
Ralph_Roberts: nite, Penny!
Penny: see you all next week!
Bruce: Goodnight Penny
Kim-OH: Goodnight Penny
gabi: Bye Penny
Bruce: Mike, not true, we keep buying your books
Mike_Summey: goodnight Penny…go catch a coon.
Mike_Summey: Thanks Bruce.
Kim-OH: I’m right behind Penny, I have to eat a snack
Kim-OH: See you all next week
Bruce: by Kim
gabi: Good Night Kim - Have a good week
Penny: night Ralph, and I agree that you look great in red. Sorry I
didn’t see you on earlier, I thought’d you’d left.
denmage: Mike, I’m happy to report that the rehab of the two houses I
bought in Maine are on schedule. We expect to have them up for sale in a month.
We did have someone call our realtor and ask to rent one of the houses this week
(before we have even started the rehab), but with no management companies in the
area we have decided to stick to our original plan.
JackB: good night all, sweet dreams
Mike_Summey: Penny has become an accomplished coon trapper.
Kim-OH: you too Gabi
Al_Lee: Well, I am getting signals from a higher authority, so I had
better ger gong, too.
Al_Lee: get going
Al_Lee: Goodnight all
Mike_Summey: denmage, that’s probably a good idea.
Kim-OH: night Jack
Penny: xo2u2 Mike
gabi: Godd night Al - thanks so much for everything
CTLandlord: Mike, have you found that the rental market is soft right now
in some areas?
Bruce: Mike, any advice on potentially buying a condo that has been
converted from an apt?
Mike_Summey: CTLandlord, I noticed a softness about a year ago, but it
seems to have rebounded very nicely of late.
Mike_Summey: Bruce, I’m not a fan of condos even though I own several.
Bryan: Mike, my last question. If you are looking at larger buildings or
commercial, do you use the cap rate? If so, what do you use (personally)? I find
that if the cap rate is not at least 7 1/2 to 8% then the cashflow does not
cover debt service.
Mike_Summey: Well, it looks like everyone is heading to bed, so I think I
will too. this was a great chat tonight. Thanks to everyone for participating.
Bruce: Mike, thanks. If you’re having a problem renting, what do you
normally do? Decrease price?
denmage: Good night, Mike
gabi: Thanks Mike - you are great
denmage: Thank you
CTLandlord: See ya everyone
mrjones30: Does anybody know how the market in Seattle washington is?
Bruce: thanks Mike
gabi: I’m heading out too. Good night all.
mrjones30: Thanks Mike
Mike_Summey: l not have a chat for the next two weeks as next Monday is
July 4th and the following Monday roger and I will be in Atlanta at the National
Speakers Association convention.
Mike_Summey: We’ll resume the chats on July 18th.
Bryan: Thanks Mike. Goodnight everybody.
Mike_Summey: goodnight all
Ralph_Roberts: good night
Ralph_Roberts: chat, as ever, will be posted shortly
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