Chat 7-18-05
Posted on July 18, 2005
Ralph_Roberts: hi John
Ralph_Roberts: hi bmoran
bmoran_: Hello to all
Ralph_Roberts: we’re the early birds 
bmoran_: Are there any others here from the Chicago area?
Ralph_Roberts: I’m sure there will be …only the three of us here now…
most people show up in about 5 minutes
Ralph_Roberts: I’m in North Carolina… don’t know where John is
JohnA: Im In Greenville, South Carolina
Ralph_Roberts: hi John… just outside of Asheville here
Ralph_Roberts: we’re neighbors
JohnA: I envy you being so close to the mountains
Ralph_Roberts: close? I’m right in the middle of them 
… but you got
Paris Mountain, isn’t it?
JohnA: No comparison to Mt Mitchell
Ralph_Roberts: Ceasar’s Head is not bad.
JohnA: True!
Ralph_Roberts: and bmoran has those wonderful Chicago hot dogs with
celery salt… I latch on to a couple of those every time I go to a trade show
up there!
Jim-FletcherNC: Hello all
Ralph_Roberts: hey, Jim!!!
Ralph_Roberts: you on the ground?
Jim-FletcherNC: Hi Ralph,,,, long time no see
Jim-FletcherNC: yeah LOL
Ralph_Roberts: heh, heh… good
Jim-FletcherNC: Finally got a night off to talk RE
Ralph_Roberts: good!
Ralph_Roberts: hi Nichole.
NicholeB: Hello!
Jim-FletcherNC: Anybody made any purchases lately?
JohnA: I’m still working on my first
Jim-FletcherNC: good
NicholeB: Nope… I’m still reading the first book!
Jim-FletcherNC: Mike and Roger’s mothods are solid
NicholeB: <<total newbie, by the way!
randall: anyone doing any residential development?
Jim-FletcherNC: you keeping your head above water, Ralph? Sure been wet
lately
Ralph_Roberts: we’re up high, Jim… no problems… except getting the
yard mowed
Ralph_Roberts: hi Pup
Ralph_Roberts: Roger!
Ralph_Roberts: you home?
Jim-FletcherNC: residential dev like paving roads; sewers; etc?
Ralph_Roberts: hi Mike
PUP123: hello
Jim-FletcherNC: Hey Mike
Mike_Summey: I’m here, but I’m late.
randall: yeah, have opp. to buy 80 acres in MO
randall: just outside of the state capital
Jim-FletcherNC: yes… home here in Fletcher
Mike_Summey: Hello everyone
randall: Hello
JohnA: Hi!
Jim-FletcherNC: Hello Mike
Ralph_Roberts: Roger Dawson and Mike Summey are on board.
PUP123: Hello everyone
Jim-FletcherNC: Hello Roger
Mike_Summey: Today has been unreal. I haven’t slowed down for a second
all day. I thought I was supposed to be retired.
Roger_Dawson: Hi Jim
Mike_Summey: Hi bruce
Ralph_Roberts: hi bruce
Jim-FletcherNC: Better busy than bored & broke
Mike_Summey: Jim, I finally have all of that equipment figured out.
Jim-FletcherNC: good
Roger_Dawson: Mike flew me down to Charleston last week in his new plane.
It was great!
Jim-FletcherNC: It’s good stuff that will save yuor bacon!
Mike_Summey: Jim, want to go flying tomorrow?
Jim-FletcherNC: I know Roger… it’s a real beauty of an airplane!
Jim-FletcherNC: Sure! When?
Roger_Dawson: And he didn’t hit a thing!
Jim-FletcherNC: LOL
Jim-FletcherNC: How is the new book doing?????????
Mike_Summey: I have to have the King Air in greenville by 9:00 AM. Then I
have someone picking me up there to take me to Columbia to pick up the Duke and
bring it back to Asheville. My youngest son Matt is going, but you’re welcome
too if you want to ride along.
Roger_Dawson: Doing well. Keeping up with sales of the first book.
Mike_Summey: Ne book is doing well.
Jim-FletcherNC: Sounds like fun. If you don’t think I’ll be in the
way….
Mike_Summey: It might be doing even better if some of you would give it a
review on Amazon,com.
bmoran_: Hi Mike and Roger. I am a new student of the WM program. I have
found an area to invest, met the property managers, and now ready to make some
offers. My challenge is that the price range in the area (single family starter
homes is around $250K and the going rental rate is around 1300 a month. Do you
have any tips on making the numbers work>
Mike_Summey: Jim, be at Million Air at 8:30
JohnA: I just read the reviews on Amazon - They’re all good!
Jim-FletcherNC: The review will come. My wife and I wrote a children’s
book and it took a while but we got a nice review
Jim-FletcherNC: Million air 0830. Got it! Any idea of approx arrival back
in avl?
Roger_Dawson: Bmoran: can you find any that are owned free and clear
where the owner would give you a low interest rate in return for the high
purchase price?
Mike_Summey: bmoran, you have to make offers that will work at the rental
rate. An owner financed purchase at $250,000, fully financed for 20 years would
only be $1,041.66 per month.
Mike_Summey: bmoran, that’s at 0% interest. Don’t discount that, I have
done several like that.
Mike_Summey: Hi JS
Ralph_Roberts: hi Kim!!
Mike_Summey: Hi Kim
Kim-OH: Hi Ralph
Kim-OH: Hi Mike
Roger_Dawson: Hi Kime How are you feeling?
Jim-FletcherNC: Mike, Roger, anybody…. Does anyone know anything about
Tenant in Common investment properties? My wife and I have had all the fun we
can stand with MGT hassles and the tics show a decent cash flow with all the
other bennies like depreciation, appreciation, etc.
Kim-OH: Did everyone have a good 4th?
Mike_Summey: Jim, before noon!
bmoran_: Hi Mike, Thanks for the tip. The other items on the NOI would
add about $450 a month to the loan amount.
Jim-FletcherNC: Count me in, Mike. 5:30 at m.a.
Jim-FletcherNC: i mean 8:30
Mike_Summey: Jim, 8:30, not 5:30 unless you want to sit around a drink
coffee for a few hours.
Kim-OH: Roger, I’m feeling quite well thanks and how are you and your
family?
Roger_Dawson: Great thank you Kim. We both spent last week with Mike in
NC.
Kim-OH: Roger I bet you all had a great time
Kim-OH: Roger how was your overseas trip?
Jim-FletcherNC: Roger, did Mike take you out to eat somewhere better than
McDonald’s?
Roger_Dawson: Jim, don’t drink a lot of coffee before you fly with Mike.
He has a way of shaking it out of you.
Jim-FletcherNC: LOL I won’t drink ANY coffee…
Jim-FletcherNC: Hello Mark
Jim-FletcherNC: where in nc?3
Roger_Dawson: Jim, he took me to Burger King for breakfast. That’s
considered upscale in Asheville.
Ralph_Roberts: it’s a no movie flight, jim
Mike_Summey: Flight to Greenville is only about 10 min. Not much to shake
out in that time.
MarkNC: Hi everyone
NicholeB: I live in a University town, and was wondering if buying houses
near campuses to rent to students would be an alright way to start, or should I
just forget it all together (remembering how I was as a college student!!)
Jim-FletcherNC: .Next time have him take y ou to the Boathouse or
Bonefish
bmoran_: Are there any others here from the Chicago area?
NicholeB: I grew up in Wheaton, now I’m in Central IL
Jim-FletcherNC: NO movie but the view out the front window is awesome
Mike_Summey: Nichole, student housing is fine, especially if you run it
through the university housing program where they insist on parents cosigning
the leases and being responsible for damages if their students want to stay in
school.
Roger_Dawson: NicholeB: that’s not a bad idea but you need to keep the
rents high to cover the high turnover and high wear and tear. But students can
afford it if they have lots of roommates.
Jim-FletcherNC: Roger, Mike…. any increase in action in the market
lately?
bmoran_: My friend wants to sell a condo in another city and buy single
family investments the weekend millioniare way. She is concerned about the time
contraints of 1031 exchange and does not want to be rushed into a poor decision.
Any advice?
Mike_Summey: Jim, the rental market here has strengthen dramatically over
the past 3-5 months.
Roger_Dawson: We’re seeing some cooling off in the higher appreciation
areas. San Diego has definately cooled down, which is bad for speculators but
good for investors.
Jim-FletcherNC: It seems there are a lot more houses on the mkt lately
JohnA: I was just in West Palm Beach last week where property
appreciation
Mike_Summey: bmoran, tell her to identify the property she wants to buy
first and then sell her condo.
Jim-FletcherNC: My houses in Fresno, CA are still appreciating well…
the rental prices are following along well too
MarkNC: Nicole, I have three student rentals. Its nice because you are
renting by the bedroom so for 3-4 br houses you can get higher rents than to
families here. There is also essentially an unlimites supply of renters. THere
is high turnover though and I have heard horror stories about damage. I have
been lucky, I am a professor though so can be real careful screening students.
Roger_Dawson: A good indicated is "time on market" how many
days it takes an average listing to sell. Boards of Realtors track that and any
agent can tell you. Or call up the Board and tell them you’re writing an article
for the Weekend Millionaire website.
JohnA: is about 20% + a year- do you think these hot areas will burst any
time soon?
Mike_Summey: Mark, was that you who posted the Mindset review on Amaxon?
Ralph_Roberts: welcome, Ray!
MarkNC: Yeah Mike that was me.
Mike_Summey: Hi Ray
Jim-FletcherNC: Hey Ray…. where in NC?
Mike_Summey: Mark, thanks! It was a very nice review.
MarkNC: your welcome.
NicholeB: Mark, I never thought to rent bedrooms (as opposed to renting
the whole house to a group)… creative way to keep vacancies lower!
Roger_Dawson: The hot areas that concern me are the ones where a high
percentage of buyers are speculators. Miami for example where 25% of condos are
being bought by speculators. They get out of the market fast when it begins to
cool.
Ray_NC: Hi Everyone!
Mike_Summey: Would anyone like for me to invite an expert on asset
protection to join us in one of the upcoming chats?
Jim-FletcherNC: Roger, when the mkt cools, will prices drop to a more
"civilized" level?
Kim-OH: Mike that would be a splendid idea
Jim-FletcherNC: Yes, Mike. Sounds like a good topic to discuss.
MarkNC: Oh I rent the whole house on one lease, although I know people
who do individual leases, I am just saying that the rent can more or less be
computed by the bedroom as each bedrooms rent usually comes from a different
checking account.
Mike_Summey: Jim, read the real estate article in today’s business
section of the Asheville Citizen-Times. I’m quoted on that very subject.
Roger_Dawson: Jim, I don’t think you have any "froth" in the NC
market, so you won’t see a big drop unless interest rates go sky high, which is
unlikely.
Jim-FletcherNC: I How about in CA? I have several properties there.
Jim-FletcherNC: (Fresno/Clovis)
MarkNC: I also should mention that I try to buy not too close to campus.
My idea is to rent to students who want to be a little bit away from campus.
They tend to be quieter and hopefully do less dameage.
Jim-FletcherNC: Mike, I will look it up online…. I don’t subscribe to
that mullet wrapper
Mike_Summey: I have a friend whose daughter goes to the University of
Alabama. She rents a house there with a couple of other girls and each parent
has to guarantee the lease and be responsible for damages.
NicholeB: Good Pt., Mark
Mike_Summey: Jim, I understand!
MarkNC: Mike, I do the same thing with cosigners
Roger_Dawson: Jim, I think you’re okay there because prices are still
reasonable in spite of the run up. The beach areas and SF peninsula are of
concern.
Jim-FletcherNC: Thanks Roger
Mike_Summey: bmoran, yes, I have seen deals where the owner would finance
at 0% based on 30 years, but these usually have a baloon payoff in 10-20 years.
Then you can refinance with more traditional financing.
Roger_Dawson: Mullet wrapper! Let me write that down. It doesn’t sound
good.
NicholeB: Has anyone here ever faced resistance to REI from their spouse,
and how have you handled it? I’m not sure if my husband is disinterested, or
just is hyperfocused on the "risk" of having 2 mortgages.
JohnA: Nichole - same problem with my wife.
Roger_Dawson: Nichole: what we teach in our book is not that risky. It
just takes persistence to find the good buys.
MarkNC: Yes Nicole, when my wife saw the total debt we will have after we
close on our fourth house Wed she freaked out for a couple of days.
Mike_Summey: I just received a call from a friend of mine who read the
article in today’s paper. I told him that you guys were more important right now
to call me back later.
MarkNC: I then showed her how much more cash flow we would have than debt
payment and she calmed down a bit.
NicholeB: Roger, Yes, I understand that it really isn’t that risky if
done right, but my problem is just getting DH to read the books. Its really
frustrating b/c I can see how it can really help us, and he’s thinking that REI
will do nothing for us except bankrupt us.
Mike_Summey: Nicole, have your husband read our book and then tell you
what he thinks. anyone can be uninformed and negative.
Mike_Summey: Hi Garrett
Garrett: Greetings
NicholeB: mike… Easier said than done! 
:(
Ray_NC: Nicole, find another married couple where both are involved in
investing and invite them over to play "Casflow 101" together with
yoiu and your husband….you will get him hooked!
Mike_Summey: Nicole, I wish I could help more, but I’m a real estate
investor, not a marriage counselor. If you can get him more informed, he may be
more positive.
Mike_Summey: Hi zert
NicholeB: lol… I understand, Mike!
zert: hey Mike and all
NicholeB: I AM working on him, though!
Mike_Summey: Garrett, is that you? Did you accept my invitation to join
us tonight?
Jim-FletcherNC: Mike, what is the name of the article? and is it in the
bus section?
Mike_Summey: Jim, there is a whole section on real estate in today’s
paper. The story is the lead article written by Mark Barrett.
zert: I am seeing a greater percantage of fsbo’s over the past month or
two, what would this mean??
MarkNC: Funny Ray, when I first played cashflow with my wife she said it
was fun but it never worked like that in real life. I then showed her my rental
books and then I had her talk to a friend who is more in MIke’s league as an
investor and she was hooked, until she saw our total debt last week.
Garrett: Yes, Mike. I need to run out the door again. But I’d be happy to
participate in a future chat on asset protection.
Mike_Summey: zert, you may be experiencing a softening in your market. It
is beginning to happen in several palces.
JohnA: What do you guys think about short sales? I have a coworker who is
averaging about one ever 90 days and making about $20k each. Would his work to
rent them instead?
MarkNC: Garret, are you Garret as in Garret Sutton?
Mike_Summey: Thanks Garrett, I’ll coordinate it with Monica.
MarkNC: Sorry about the spelling
zert: I thought it may be that the sellers do not want to pay the 6-7%
fee
Mike_Summey: Hi doug
doug_in_CT: Hi Mike
Ralph_Roberts: hi Doug!
NicholeB: Mark - I AM very fortunate to have gotten to know a cpa/re
Investor (his wife is a realtor)… it was very encouraging to talk to him, and
his excitement over REI was very contagious!
Roger_Dawson: JohnA: I know what a short sale is in the stock market but
what does it mean in RE?
zert: dooouuuugggg !!!!
Mike_Summey: John, I don’t know anything about short sales. I’ve never
sold anything I’ve ever bought.
Ralph_Roberts: Doug’s a great aviation photographer 
Garrett: Mark and Mike: It’s me and if you can coordinate with Monica
that would be great.
doug_in_CT: Hi Ralph, Great photo of Mike on the website!
Mike_Summey: Hi Doug.
Mike_Summey: Garrett, we have a small crowd tonight, but I’m sure you
will bring out a big one.
MarkNC: I just finished Loopholes for Real Estate Investors and really
enjoyed it. I think I finally understand how llcs work now.
Mike_Summey: Hi Landinvestor
Landinvestor: greeting
JohnA: Sorry, I may have the name wrong. She fins paople who are in
preforeclosure, and negotiates with the bank to buy the house at a greatly
reduced price.
Mike_Summey: Doug, you didn’t tell me you were going to send those photos
to Ralph.
Garrett: Glad to hear it. I’ve got to run now but I’ll be back for a
future chat. Over and out.
Mike_Summey: Goodnight Garrett
Roger_Dawson: Who is Garrett Sutton?
Mike_Summey: I’ll tell you later Roger.
Mike_Summey: Hi donnap
MarkNC: He wrote the book I mentioned above about asset protection Roger.
doug_in_CT: Garrett Sutton is a rich Dad advisor on entities Roger
MarkNC: Mike, I am helping my brother in law move to Swananoa this
weekend, any chance you have any appearances in the area this weekend?
Roger_Dawson: JohnA: That kind of short sale sounds like a good
opportunity. You’re referring to the bank writing down the loan. Problem is that
there’s not much of that going on in a booming market.
Mike_Summey: As I asked earlier, would you like to have Garrett join us
for a chat to answer questions on asset protection. We’ve had many questions on
llcs, Partnerships, Corporations, etc.
donnap: Hello everyone, hello Mike.
Roger_Dawson: Sounds good to me Mike ( to have Garrett on). We get a lot
of questions on how to take title to property.
Mike_Summey: Mark, email me at mike@weekendmillionaire.com with a phone
number.
donnap: Mike, will you be anywhere near Boston in the future? This year,
perhaps?
Mike_Summey: Garrett has a radio show that I’m been on several times.
Roger_Dawson: Mark, so that’s how you spell Swannee River!
Jim-FletcherNC: Mike… unable to find article on website… would you be
kind enough to bring a long a copy manana?
Mike_Summey: donnap, I don’t have anything scheduled right now, but that
doesn’t mean there won’t be something come up soon.
MarkNC: Roger, I am a math professor, never trust my spelling
JohnA: Roger - I’m in the Greenville s.c. area and the market is somewhat
down here.
Mike_Summey: Jim, if I don’t forget, I’ll do that.
doug_in_CT: Speaking of Land Investing, I got a google alert on Mike
Summey quoted in the Asheville Citizen Times: cover story: WNC land future is
bright
Mike_Summey: doug, tell Jim where you found that. That is what he is
looking ofr.
doug_in_CT: Seems this guru is looking for a soft landing in Asheville
doug_in_CT: Here is the link:
doug_in_CT: http://www.citizen-times.com/apps/pbcs.dll/article?AID=/20050718/BUSINESS/50717013/1003
Mike_Summey: Jim, if Doug in CT can find it you should be able to as
well. It must be there.
doug_in_CT: I got my finger on the pulse of Real Estate Everywhere,
zert: Doug can make computers hum
donnap: Hi Doug: I tried to make it to CT but couldn’t. How was the
seminar?
Mike_Summey: Everyone, since our last chat, I leased a 12,000 sq. ft.
building to the North Carolina School of Natural Healing.
doug_in_CT: AWesome….I got to ride around with Mike Summey himself
Roger_Dawson: Mike’s always getting himself in the Asheville newspaper.
Here’s a quote after he took me to a zoning meeting: Mike Summey, who described
himself as "one of the larger individual taxpayers in this county,"
wanted to know, "What did this fancy presentation cost, in my tax
dollars?" In vulgar terms (and to wild applause), Summey told the
commissioners exactly what they could do with the draft ordinance.
donnap: Wow….You must have clout. Are you still working on making your
first million?
Mike_Summey: Be nice Roger.
Mike_Summey: Doug, was a great host. I appreciate the time he spent with
me.
doug_in_CT: Yeah, still working on it, but I have been able to pull off
several small rent increases lately and I am charged up about it.
doug_in_CT: In Visa Versa
donnap: Have you ever heard of Robyn Thompson? She’s a real estate
rehabber from Ct..
doug_in_CT: Heard of her,…..I took the bootcamp
Mike_Summey: I still haven’t heard if you are interested in having
Garrett Sutton join us to discuss asset protection. Talk to me!
Mike_Summey: Hi patcho
doug_in_CT: I have heard Garrett Sutton on tape and I am convinced he
knows what he is talking about.
MarkNC: I think Garret would be great Mike
donnap: How was the boot camp? Did you work it?
Mike_Summey: donnap, I’ve heard of her from several people, but I’ve
never heard her speak.
Ray_NC: Mike…invite Garret Sutton
NicholeB: I think Garrett would be great too.
doug_in_CT: I was surprised that the bootcamp had 95% of its participants
from out of state.
donnap: I am looking to make some real money. I sell real estate but want
to buy some for investment purposes. Trying to get there.
patcho: Hello everyone, Hi Mike
Mike_Summey: Hi Ricky
Ricky: Hi
doug_in_CT: I think there is goood money in boot camps…..
Mike_Summey: donnap, there is a big difference between earing money and
building wealth.
donnap: Yeah, maybe we should get together and run one….
patcho: I have enjoyed reading your book very much. I have enjoyed
reading your book very much. I have enjoyed reading your book very much, Mike
Mike_Summey: Thanks patcho
donnap: Yes, there is a big difference. It’s not what you make but what
you keep that counts.
patcho: (Three X for emphasis.)
doug_in_CT: But can they deliver "an income stream" I don’t
think rehabbers can.
Roger_Dawson: Thank you Patcho! Thank you Patcho! Thank you Patcho!
doug_in_CT: Is there a treble echo in here?
donnap: So how do I get there from here?
Landinvestor: Roop …anyone has a take on it…the boot camp?
doug_in_CT: I think Mike and Roger’s way, the slow and steady way.
donnap: Where do I start? What do you suggest, Doug?
Mike_Summey: Wealth is not how big a house you live in, how fancy a car
you drive, what country club to which you bleong. Wealth is not the standard of
living you live. Wealth is measured by how long you can sustain you standard of
living if you suddenly can work and earn money.
patcho: Prior to buying your book, I had invested on 3 investment
properties. Never had I hired a mangmt company, however recently due to 1 of my
tenants who was the caretaker, sued my insurance claiming that her daughter fell
on ice, that’s when I went out and hred a company. The prop is in Fall River.
Now with them taking care of everything I do not have many worries. The
investigation is still going on.
doug_in_CT: Have you read "Weekend Millionaire or Millionaire
Mindset"?
Roger_Dawson: Donnap: getting rich is simple. Take a dollar and double it
fifteen times and you’re a millionaire. Problem is it’s not easy to double money
without risk. I’m only 65 but the only way I’ve found to do it is investing in
real estate. Doubling money is a real possibility because of the ease of high
leverage.
Jim-FletcherNC: Mike, I got the article
Mike_Summey: patcho, I have never managed my own properties, even from
the first one.
donnap: No, not cover to cover. I wish you could teach me step by step.
Mike_Summey: el of protection a property manager provides.
Roger_Dawson: Patcho: Fall River. How appropriate!
patcho: Roger, why is that?
Mike_Summey: Great Jim.
doug_in_CT: Now Mike’s going Spanish on us.
Mike_Summey: Waht?
doug_in_CT: El of protecto?
Jim-FletcherNC: Mike, Roger… Do you know of any RE investments that are
free of MGT hassles? I am looking at some Tenant in Common properties.
Roger_Dawson: Patcho: because she fell in Fall River and sued you!
patcho: How much usually are the charges by a RE mangmt co.? The one in
FR is charging me $150.00/mth plus maint fees
Mike_Summey: opps! sorry about that. The first part should read I’ve
never managed my own properties even from the first one. That’s why I depend on
the level of protection a propety manager provides.
patcho: Roger, you have a very good sense of humor
Mike_Summey: Hi guest, do you have a name? We’re all friend here.
guest: Hi I’m Fred
bmoran_: I just interviewed a property manager in Chicago area - will
charge 9% for a single family rental.
Roger_Dawson: Hi Fred!
guest: Hi all
Mike_Summey: Fred is easier to type than Guest, but you’re welcome
anyway.
patcho: Mike, what if by hiring a company the expenses are more then the
total income?
Roger_Dawson: Remember that property managers who are also real estate
agents often property manager because they want to get the listing when you
sell. Not a good idea to tell them that you’re never going to sell.
Mike_Summey: patcho, that’s what we teach in the real estate book;
consider all of the expenses when computing noi. Then use the NOI to structure
your offers. You won’t find a lot you can buy, but the ones you do will make you
many.
Landinvestor: Mike whats your take on land do you buy it?
donnap: An average house lot in the Boston area is 150K to 200K for a
half acre.
Landinvestor: thats cheap…
donnap: you think?
Roger_Dawson: Landinvestor: I’ve made good money on land but it’s more of
a speculation than an investment. No income, no tax benefits, hard to finance
and hard to get cash out when you sell.
patcho: Properties in that structure are very hard to find, correct? The
ones I bought I actually was even at one point. Now I am gaining
JohnA: Mike and Roger -I just told my nine year old daughter who you are.
She is begging me to ak if either of you have a dog?
donnap: Landinvester, where are you from?
Landinvestor: Roger…I’ve been doing very well with it …although I’m
getting back to buying and holding…Florida is very hot now so I’ll ride the
wave
Mike_Summey: Landinvestor, therea are three ways to go broke; women,
liquor and vacant land. They all cost you money…no offense to the lovely
ladies with us tonight.
patcho: donnap, 150 to 200K for 1/2 acre in Boston area is incredible. I
live in Marlborough, MA, 40 miles west of Boston. Not even in this area you find
it for that price
Mike_Summey: Hi mireyco
Landinvestor: From MD, but invest on FLorida and own property in maryland
DC metro
Roger_Dawson: JohnA: we love dogs. We have Giselle a 15 year old German
Shepherd, Alexa and mix breed that someone left on our doorstep. Nicky is a
purebred blond golden retriever and Shatzy is a little mutt that my wife
rescued.
Landinvestor: I’m looking into PA the next big thing…
donnap: what is happening in the re market? How do people get started? I
am selling a lot of condos because it’s the only way to get the downpayment for
a house. Build equity…..
Roger_Dawson: Donnap: you wonder how young people can get into home
ownership with the price of houses in CA. The answer is condos. Start with what
you can afford and move up later.
donnap: I just adopted a dog, shepherd and boxer mix. The dog is afraid
of almost everyone, except me…. Makes life in the house tough.
Landinvestor: Is there anyone here from PA that can explain why the
economic fall in that state
Mike_Summey: JohnA, I have three dogs, Lucky who is a grouch that will
bite anyone, Chester who is my youngest son’s lab and Dolly who is my older son
Jason’s daschund. All great dogs.
Mike_Summey: Hi mauggie
mauggie: Hey Guys
Roger_Dawson: Got to run folks! Good chat!
JohnA: Thanks!
patcho: I enjoyed this chat you all. happy investing
Mike_Summey: Roger is going to the golf course.
donnap: Good nite…. thank you
Landinvestor: mass exodus
MarkNC: Ive got to go too. Goodnight everyone. I sent you that email
Mike.
Jim-FletcherNC: they’re leaving like lemmings
NicholeB: LOL
Mike_Summey: I need to run also. We’ll be back here next week…same
time. Talk with you then.
guest: 
NicholeB: OK… good night!!
Jim-FletcherNC: c u tommorrow
Mike_Summey: Goodnight all
zert: guess people were afraid of getting bit by Lucky
guest: Mike were you on the radio this morning?
zert: Doug - did you ever resolve the issue with the out of town bank on
that property?
pjalan: Hello All
pjalan: is the chat over
Mike_Summey: I’m back for a minute.
Mike_Summey: lph kicked me out.
pjalan: HI Mike
doug_in_CT: Hi Zert, I am still negotiating with that bank.
pjalan: are we done with today chat
Mike_Summey: guest, yes, that was me.
guest: that’s where I found out about your site
Dwayne: Hi Mike.
Mike_Summey: Hi pjalan
Mike_Summey: Hi Dwayne
Mike_Summey: Where have you guys been?
pjalan: I was reading your book millionaire mindset last weekend
Mike_Summey: And?
doug_in_CT: At one time I offerred them $168,000 and they thought it was
too high. Now they are listing it for $166,000
Dwayne: Mike,
pjalan: done with Part I…..It is really good
PUP123: Mike, I heard you on the radio also and purchased the book today.
Can’ t wait to get started.
pjalan: I have a question
Mike_Summey: pjalan, glad you are enjoying it.
Mike_Summey: PUP 123, where have you been all night?
pjalan: thanks….I am in the process of closing one property…I havent
setup an LLC yet and the contract is in my name
zert: ahh so you are waiting them out huh - too bad they didn’t listen to
your offer a few months ago
pjalan: this is my first investment prop
pjalan: can I setup an LLC and transfer the ownership to it
Mike_Summey: pjalan, I’m going to defer to next week. I’m going to try to
get Garrett Sutton to join us. He is an expert on asset protection.
pjalan: okay that will be great
pjalan: what time do we start chat….I am joining here today for the
first time
Mike_Summey: Dwayne, do you want to join us next week also?
PUP123: Mike, I’m new, so I’m just taking it all in and learning what I
can. I haven’ t purchased property yet but I’ve got my eyes on a few.
zert: I am going to sign off - good night
pjalan: PUP which areas have you been looking at
doug_in_CT: Right Zert, I am waiting for it to fall further, I am sensing
despairation from this bank, and I want to see how far down they will go.
Ralph_Roberts: Pjalan, chat starts at 8 Eastern Standard
Dwayne: Mike sure.
pjalan: okay Kool
pjalan: guess I was late today then
Mike_Summey: Dwayne is president of a local bank and gives great advice
on financing real estate.
pjalan: yeah I had questions on financing too
doug_in_CT: Any news on your offer Zert?
PUP123: I’m in the Greenville SC area
pjalan: Hi Dwayne
Mike_Summey: Hi Larry
Mike_Summey: re late.
Dwayne: Hello.
pjalan: I have a question for you may I?
Mike_Summey: You’re late.
Dwayne: Sure.
Jim-FletcherNC: I will see you manana at 8:30AM ……. C’ya Mike!
Mike_Summey: Goodnight Jim
pjalan: for each property if I get a new financing that will result in a
credi pull from my history and that would reduce my credit score
pjalan: is there a way to protect that
zert: still the legal issues. They are down to 1 owner. it needs 12-15K
in repairs to maximize the rent. Slowly very slowly thhings are getting done. It
has moved down my list for now
doug_in_CT: Patience seems to be rewarded in this business.
pjalan: another thing is I am buying property with little negative
cashflow…hoping that tax breaks and future rent increase would make it
positive….is this a good idea?
Dwayne: It may. What I am told is that excessive credit inquiries reduce
your score; however, a credit score is only a tool and other factors are used in
credit decisions.
zert: absolutely and there are plenty other opportunities that are easier
and readily available
Mike_Summey: pjalan, just my opinion, but multiple pulls of your credit
history without corresponding loans are more detrimental that multiple pulls
with corresponding loans.
pjalan: so how do people like Mike buy hundreds (or thousands) of
property while stll keeping a healther credit score
Dwayne: Pjalan, It depends on numerous factors.
pjalan: Yes I know abt credithistory
Mike_Summey: pjalan, we pay our loans on time without any problems.
pjalan: how old is ur credit accounts
pjalan: okay so the thing is credit pull followed by obtaining the credit
is healthy
pjalan: and paying all the loans on time is the key
pjalan: like your idea of doing it on the weeekend before 1st
Mike_Summey: pjalan, now you’re getting it!
pjalan: great
Mike_Summey: I don’t have any business now with Dwayne, but he knows that
if he makes a loan with me he can make it and forget it.
pjalan: how is the idea of obtaining lines of credit agains LLC for
emergency funds
Mike_Summey: Hi cam1015
pjalan: Dwayne which areas do you make loans
Mike_Summey: pjalan, cash reserves are always better than lines of
credit.
pjalan: so 3-6 months of cash reserve for each property
Dwayne: Lines no. One credit line and a cash reserve account is best.
Mike_Summey: pjalan, thats what I try to always maintain.
Mike_Summey: Dwayne, help me.
pjalan: should I always buy properties with +ve cashflow
Mike_Summey: Tell them the truth.
pjalan: the one I am about the close will be slightly -ve
Dwayne: Pjalan, Mike is right. 6 months of cash reserves is best. You ca
pjalan: okay I will try to achieve that goal
pjalan: Mike any thoughts on the coming real estate bubble bust
pjalan: is it going to bust across US or in certain inflated areas
Mike_Summey: pjalan, I’m not worried. It won’t effect people who buy the
Weekend Millionaire way and hold for the income stream.
Mike_Summey: Hi Clair
pjalan: so should I continue to buy the weekend millionaire way
pjalan: and not worry abt the bust
CLair-MO: Hello Mike
Mike_Summey: Hey, guys! I need to run for tonight. I’ll be back next week
at 8:00 PM Eastern. Hold your questions until then and those of you who showed
up late, try to get in earlier next week.
CLair-MO: Will do
pjalan: Yes I ll try to be on time next week
doug_in_CT: Gotcha, see ya then.
pjalan: thanks
Mike_Summey: Dwayne, thanks for dropping in and we’ll talk theis week
about having youas a special guest next week.
Mike_Summey: Hi mdongraham, you’re late this week, please join us next
week at 8:00 PM Eastern.
Mike_Summey: Goodnight all.
pjalan: Goodnight all
PUP123: Goodnight
Ralph_Roberts: everbody is leavin’
Ralph_Roberts: transcript will be posted shortly
Ralph_Roberts: bye zert!
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