Chat 9-26-05
Posted on September 26, 2005
Ralph_Roberts: hey guys
Mike_Summey: Hi guys. Looks like it’s just us chickens right now.
Ralph_Roberts: cluck
Mike_Summey: Hi Sandy
Roger_Dawson: Ralph, am I in the right room? This looks like last weeks
chat.
Ralph_Roberts: Sandy is not here… that was from last week
Mike_Summey: Oops! I guess Sandy was here last week at the end.
Ralph_Roberts: NOW Sandy is here
Mike_Summey: there’s Sandy! I just said Hi!
Ralph_Roberts: this is last week, Roger … we liked it so well we
decided to stay!
Mike_Summey: Roger, Gary agreed to join us again next week. You missed a
good one last week.
Mike_Summey: Hi Al
Ralph_Roberts: Big Al!
Al_Lee: Hi, Mike, Roger, everyone
Mike_Summey: Hi Bob
Ralph_Roberts: hi Bob\
Ralph_Roberts: ls
Bob_Carr: Hi Everyone
Al_Lee: Howdy, Ralph
Sandy: Hello. I am glad to be here
Mike_Summey: Sandy, is this your first chat?
Roger_Dawson: Yes, Mike, sorry about that. Last week I was in Ontario,
Canada giving a talk. Next Monday I’m going to be in Mexico City talked to
General Electric.
Mike_Summey: roger, you’re going to miss next week also? don’t they have
Internet service in Mexico?
Sandy: Hi. I logged on last night. Just a tad early.
Sandy: Yes. This is my first chat.
Mike_Summey: Sandy, we’re all friendly here. There are no dumb questions,
only people who stay that way because they don’t ask. Feel free to jump in at
any time.
Al_Lee: Roger, I am still chuckling over parts of our discussion on
Sunday.
Roger_Dawson: I was on Al Lee’s radio show on Sunday talking about
negotiating real estate deals. If anybody wants to listen to it you can go to
http://www.myRentProperty.com. But not until we’re through here!
Roger_Dawson: Yes, Al you give good interview!
Ralph_Roberts: hi Kim!
Kim-OH: Hi Ralph
Mike_Summey: Al, Roger, I wanted to listen, but ended up having to help
my mother all afternoon.
Kim-OH: Roger, you were missed last week
Mike_Summey: Hi Kim & Brian
Roger_Dawson: Thanks Kim, how are you feeling?
Kim-OH: Al, Roger good show yesterday
Al_Lee: Roger, I will have the recorded show on the websit in a few days.
I have to get the recording on a CD from the studio and then convert it to .swf
format for the website.
Kim-OH: Roger, not as well as I hoped thanks for asking
Brian-ON: Hi Guys! Hey Roger where in Ontario were you?
Roger_Dawson: Mike, how is your mother feeling after her stay in the
hospital.
Mike_Summey: Al, send a copy to Ralph so he can put it on our website
also.
Al_Lee: Mike, if Ralph woue like, he can download the .swf file like he
has for our other shows and put it on yoru website.
Sandy: Thanks. I do have a burning question. I have done a lot of
reading. Then discovered these "investor clubs" where they do all the
locating, then offer the group the complete package. The investor does not have
to really know anything other than plunk down some money. Seems more like
speculating and saturating the market. Any thoughts?
Ralph_Roberts: okay, Al
Al_Lee: Ralph, I think we have a procedure down that wroks pretty well,
don;t you?
Mike_Summey: Roger, she hasn’t been in the hospital yet. Only outpatient
surgery, but it was cancer and they didn’t get it all. We’ll know later this
week waht is next for her.
Ralph_Roberts: my opinion, the investor ALWAYS has to know something
Roger_Dawson: Brian, I played golf with my Canadian distributor at the
Cotten Club in Guelph and then spoke in Orillia. The weather was beautiful. I
don’t know why you Canadians complain about the weather!
Ralph_Roberts: yes, Al, it does
Kim-OH: Mike, I’m sorry to hear that
Brian-ON: Roger…pop back up here in 3 months 
Al_Lee: Ralph, I think after hearing the interview everyone here will
want to hire Roger to negotiate their pruchases form now on. He is a real pro!
Mike_Summey: Sandy, like everything else, there are some legitimate
people doing that and some unscrupulous ones. Just be careful and check them out
first.
Kim-OH: Hi asi and Bruce
Roger_Dawson: I always go to Whistle at Thansgiving for skiing. It’s
usually hot sunshine then too.
Mike_Summey: Al has some package deals that seem good, but I haven’t had
the opportunity to actually look at them yet. I plan to do so soon.
Bruce: Hello Kim
Kim-OH: Hi PPenny
Mike_Summey: Hi Penny
Penny: Hi there Mike
Roger_Dawson: Hi Penny!
Penny: and Kim
Penny: and Roger
Brian-ON: We had a fridged winter last year…can only hope its more
milder this year if only to save some $$ on heating!
Al_Lee: Mike, just fly in to Addison (ads) and I will meet you there adn
show you around.
Mike_Summey: Hi Bruce, you sneaked in and I didn’t see you.
Sandy: Okay. The one that seems the most popular is Marshall Reddick. But
I would have to violate your first rule and take negative cash flow. Do you mean
Al Lee?
Bruce: Hi Mike,
Al_Lee: I typed ADS in all uppercase, but the software converts it
Mike_Summey: Al, that’s where I flew into the last time I was there.
Mike_Summey: Hi newbie
Kim-OH: Mike thanks for inviting Gary back next week
Kim-OH: Hi newbie
Roger_Dawson: I read an interesting article this week about how people
who are flipping properties are not thinking the tax question through. If they
sell within a year they pay ordinary capital gains. If they waited until the
year is up they’d be paying 15% capital gains.
Al_Lee: I used to keep my plane there. It is a first-rate airport with
lots of great facilities
Mike_Summey: How did everyone like Gary? Did you get some good
information?
newbie: hi mike
Mike_Summey: Sandy, yes, I was talking about Al Lee.
Bruce: Mike, I thought he added value.
Kim-OH: Mike, I thought Gary was very informative and it would be lovely
to double him up with Dwayne
Mike_Summey: Gary is one sharp cookie.
newbie: just finished to read your book. loved it
Al_Lee: Sandy, i am not sure if you are talking to me or Mike, but
neither of us ever means to take negative cash flow–on that point we agree 100%
Bruce: Mike, yes he is, looking forward to having him on again
Mike_Summey: Kim, I’ll see if Dwayne can join us also.
Sandy: I know he is here, but don’t know who he is. I’ll be patient now
and figure things out.
Roger_Dawson: Thanks, Newbie. Help us spead the word.
Mike_Summey: Sandy, you can check him out at www.myrentproperty.com
Bruce: Roger, I’m stuck in a negotiation. Neither side will move and
we’re pretty far apart. Any tips on how to close the gap?
Kim-OH: Mike a lender and a CPA is great teaming up
Sandy: Hi Al. I was a bit rude. I was talking about you as if you were
not here. Thanks Mike and Al
Kim-OH: Sandy, Al has a radio show on Sundays
Al_Lee: Sandy, I graduated high school in New York City. To hurt my
feelings you have to do serious physical harm to my body. Fageddaboudit!
Mike_Summey: Gary is currently involved in a huge fraud investigation. I
can’t give you any information, but you will probably hear about it soon.
Sandy: Thanks kim-oh
Roger_Dawson: Bruce, trying setting aside the issue on which you’re stuck
and creating momentum on little issues. Come back to the major issue later and
you’ll find it a lot more resolvable.
Kim-OH: Mike, sigh, seems fraud is rampant at the moment
Kim-OH: Roger you made that exact point on Al’s show yesterday
Sandy: LOL (I finally got to NY. I really liked it. )
Al_Lee: Bruce, I wouel add: read "Secrets of Power Negotiating"
by Roger Dawson–if you haven;t already
Bruce: Roger, such as how many days to review their rent roll, pass thru
$$ etc. etc.
Kim-OH: Hi scman
Al_Lee: Sandy, NYC is a great place to visit.
Roger_Dawson: That’ right Bruce. Remember that your power is in
relationship to your ability to convince the other side that you have options.
So slide into the conversation some talk about this other opportunity that has
come up.
Kim-OH: Al, didn’t you grow up in NY?
SCMan: Hi Eveyone - sorry I’m late
Mike_Summey: Roger, I bought one property where we were many thousands of
dollars apart in the beginning, but I had asked for all of the furnishing in the
house and after several negotiations back and forth I eventually let them buy
back all of the things they wanted to keep for the difference in our initial
positions.
newbie: Hi Al, I’ve listen to your radio show and would like to start
investing in the DFW area. I wonder what are good rental area in the metroplex?
Mike_Summey: Hi scman
Brian-ON: Mike/Roger, how long since you bought your last property? Any
details?
Roger_Dawson: No problem, scman. Is that USC or the state of SC?
Al_Lee: Kim, Yes, I grew up in NYC and in Miami Beach Florida. I moved to
Texas when I jond the Air Force in 1965
SCMan: Sout Carolina - Greenville
Al_Lee: newbie, go to http://www.TurnkeyInvestments.net and see what is
available.
Kim-OH: Al, yes I thought that’s what I recalled
Bruce: Roger, great advice. The seller tried that on me and I told him to
call me when he was done negotiating with the other party. Funny, we had
dialogue the next day.
Roger_Dawson: scman: I’m going to be talking to First National Bank in
Florence on Saturday.
Mike_Summey: roger will be here in Asheville on Oct 16th.
Al_Lee: Growing up in NYC made me a hard person to intimidate in
negotiations, too. I only felt like I was outclassed one time. That was wehn I
lost my pants negotiating wtih Ross Perot in his new company, Perot Systems.
SCMan: Roger - Florence is only an hour or so from Myrtle Beach if you
have the time.
Bruce: Al, if you got out negotiated by Ross what did you learn?
Al_Lee: I learned to never let emotions arise in yourself. If you get
emotional (angry, hurt, etc.) you will lose yoru shirt. I did!
Mike_Summey: Al, you’ll disagree with this probably, but I’m in the
process of refinancing several properties with term loans and will use the
proceeds to pay down one of my credit lines. That will free up the line for
another big project I’m looking at.
Roger_Dawson: AH, Myrle Beach. I was there during Spring Break once. What
a part town. The cops were walking the white line in the middle of the street
handing out tickets for drinking and driving.
newbie: Al, I’ve heard of investors in DFW who have to wait a long time
before the finds a tenant. Are all the properties in your website located in
good rental areas ?
Bruce: Mike, isn’t that smart, especially if you already have someone to
pay down your mortgage for you, plus you have cash flow?
Al_Lee: Mike, I do not disagree with that for you, but I think that
someone starting out needs to avoid any financign that coudl possibly turn
against them in future years. IF you have the wherewithall to get out of a bad
situation (bad loan rates), you can do lots of things that some other folks
shodul not do.
Roger_Dawson: Al, Warren Christopher (Clinton’s secretary of state) said
"It’s okay to get upset in negotiations as long as you’re in control and
doing it as a specific tactic.
Mike_Summey: One of the things I talk about in Weekend Millionaire
Mindset is how it takes someone smarter than you to make you mad. I guess a
variation of the same thing applies to negotiating. It takes someone smarter
than you to stir up such strong emotions that you make poor deciaions. What do
you think Roger?
Kim-OH: Hi Eddie
Al_Lee: newbie: The Turnkey Investmensts site I referred to above
spceializes in proeprties that already have tenants and leases in force. There
is no waiting at all.
SCMan: Roger, I don’t hinks it has changed much, just more people. Myrtle
Beach is supposedly a good place for property appreciation.
Mike_Summey: Hi Eddie
Al_Lee: Roger, Ah, therein lies the rub! I got upset and they were in
control
Eddie-WV: Hi Kim / Hi Mike…
Roger_Dawson: Yes, Mike, you’ve got to display emotions sometimes (you’d
say show them the can of whoopass) but you’ve got to stay in control of your
emotions.
Mike_Summey: Roger, that’s what I mean. It takes someone smarter than you
to cause you to lose control.
Al_Lee: Roger, I got creamed and didn;t realize it until I was leavign
the building and it was too late. I swore to never let that happen to me again.
Al_Lee: Mike, they were smarter than I was, that’s for sure.
Brian-ON: I bought a 4 plex in March and am seeing approximately $400
Pos. Cash. …Problem was I paid the utilities. Since then 2 of the tenants
who’s units are governed by 1 utility meter have moved out. I now have 2 new
tenants who pay 60% utilities for the 2 bed rm upstairs and 40% for the 1 bed
downstairs giving me the same rent and adding another $300 per month that would
of normally gone to paying utilities. What an amazing turnaround!
Al_Lee: Good news is–I never let that happen again. Even when the same
guys tried it on me.
Eddie-WV: Anyone familiar with the Maryland market…specifically between
Baltimore and DC?
Mike_Summey: Just FYI from someone who knows. Roger’s negotiating program
is worth hundreds of times what it cost. I’ve used tactics right from it to make
millions. That’s no bull … and NO Roger you don’t get a commission.
Mike_Summey: Hi mauggie
Kim-OH: Hi mauggie
mauggie: Hi guys
Roger_Dawson: Brian, congratulations. That’s tough minded management and
that’s what it takes.
Kim-OH: Hi Mark
MarkNC: HI everyone
Mike_Summey: Brian, here’s a suggestion: Look at your average utility
costs and then charge a rent amount plus a utility surgharge. If the lease is
written correctly, you can adjust the utility charge during the lease if
utilities suddenly take a jump.
Sandy: Is anyone here from So Cal?
Brian-ON: Don’t think I could of done any of this stuff without you and
Mike, Roger!
Bruce: Sandy, I’m originally form So. Cal
Kim-OH: Hi Ralph_2
Ralph_2: don’t mind me, just had to move to another computer
Ralph_2: I’ve cloned mahself
Roger_Dawson: Sandy, I live in La Habra Heights, about ten miles north of
Disneyland.
Kim-OH: Ralph, that’s way too funny
Mike_Summey: I have several units on which I pay the water bill. I have a
monthly water surcharge that covers the water plus a small surplus. When the
water costs get close to the amount I collect, I raise the surcharge $5 - $10
per unit.
Eddie-WV: Mike, I have management agreements from 2 property management
companies that I faxed over to my attorney today for review. While talking to
the attorney he tells me that he owns a 9 unit building in the area and has
someone to manage it for him. She is super cheap, about 70% cheaper than the 2 I
have interviewed, but she isn’t licensed. Does being licensed matter that much?
MarkNC: Any idea if utilities get higher if you pay it for tenants? That
has always been my worry.
Brian-ON: Could you give me the wording you use in the lease Mike?
Sandy: Ho! I’m in Long Beach. Been paying attention to RE for quite
awhile. But now, it is priced out of my range….maybe.
Roger_Dawson: Electricity costs can kill you. A tenant who doesn’t have
to pay for air conditioning can grow eidelweiss in their living room.
Sandy: Bruce, are you still in SoCal?
newbie: Does anyone own properties in Austin, TX?
Mike_Summey: Eddie, in NC it is illegal for unlicensed people to manage
property for others.
Al_Lee: Eddie, in Texas you must be licensed to legally manage other
people’s property–or you coudl be an employee
Bruce: Sandy, No, Tenn. but I grew up in Los Alamitos, played a lot of
baseball at Blair Field in Long Beach.
MarkNC: We don’t have AC up here in the mountains Roger. At least not in
rental houses.
Eddie-WV: Hmmm…didn’t know that. I’ll check that out. I guess the
attorney should know that, huh? Thanks.
Mike_Summey: Eddie, I use licensed managers and also require them to
carry liability insurance and errors and ommissions insurance with me named as
an additional insured.
Mike_Summey: Hi Mark
Al_Lee: Eddie, most attorney don’t know nearly as much as they lead you
to believe they know.
NEWORLEANSTAXI: Hello Mike
Kim-OH: Hi notaxi
NEWORLEANSTAXI: Hello ALL
NEWORLEANSTAXI: It’s been tough down here in New Orleans
Bruce: hey notaxi,
Mike_Summey: Neworleanstaxi is Mark! He’s my taxi driver when I visit
there … may be a while before I’m back again.
NEWORLEANSTAXI: Luckily, I and my parents had no major damage
Eddie-WV: I asked the companies I interviewed if they carry liability
insurance and they do not. They said that’s it’s too expensive for them. But,
there aren’t really any other companies in the area that do it (small town).
What should I do in that case?
Roger_Dawson: NOtaxi: we hear stories about investors rushing in to snap
up bargains. Have you seen any sign of that?
NEWORLEANSTAXI: Not yet
Sandy: Hey, NewOrleansTaxi. I’m really sorry for all you’ve all been
through
Bruce: NOstaxi glad to hear your family is ok
NEWORLEANSTAXI: But I am sure there are going to be bargains
Mike_Summey: Eddie, just be sure you carry it, but it is not that
expensive for a management firm to carry.
Mike_Summey: Hi markct
MarkCT: Hi Mike
NEWORLEANSTAXI: My house is the same elevation as the airport runway and
we had very lttle water on our street, althogh I evacuated to Vicksburg, MS
where my dad is from
Eddie-WV: Ok. I called my insurance agent today and I have it on my
policies. Thanks for the info.
Al_Lee: NOtaxi: there are thousands of people from NO up here in Dallas
wheo are finding jobs and do not intend to go back to NO. I am sure whatever
property they had will be available
NEWORLEANSTAXI: You are right about that
Mike_Summey: Taxi Drive, you need to come back in the chat as markno.
Then we would have three states represented by a Mark.
MarkCT: Hi notaxi. I went to school at Tulane. I miss New Orleans and
find it such a tragedy about what happened. There is no other city in the US
like it.
MarkNC: I think we have enough Marks already
MarkCT: Never enough Marks.
NEWORLEANSTAXI: I have to meet my Dad’s adjuster at the house in the
morning. They had some minor roof damage, large tree branch in above pool
MarkNC: I guess I am the only one who has never ,ived in NO though,
NEWORLEANSTAXI: here is never enough mark’s
NEWORLEANSTAXI: there
Eddie-WV: Mike, is there anything special you like to have included in
your insurance policies or are they pretty standard?
Mike_Summey: NOtaxi, there should be some huge opportunities in NO as the
city begins to rebuild.
Roger_Dawson: Sandy, Long Beach used to have some real bargains but you
have to watch out for the bad areas. I was involved in the condo conversion at
Whitley Bay on third street. We converted a 64 unit building from apartments to
condos. I owned three of them that I paid $55,000 for. Made some money, but not
a killing.
Bruce: Roger, do you have earthquake insurance for your properties in
Calif?
NEWORLEANSTAXI: If anyone would like to see some pics of the areas that
did not get on the news u can email me conti942@aol.com and I will send them to
you!
MarkCT: Al I just filled one of my vacancies in Dallas with a someone
from NO.
Mike_Summey: Eddie, I want to be insured against acts taken by the
manager. If they want to manage for me, they have to provide the coverage or
forget it.
Roger_Dawson: No, Bruce, it’s expensive and the chances of getting
damaged are remote. We had a 4.6 last weekend and nobody even started praying.
MarkNC: I have had two insurance policies cancelled this year because I
rent to students. Any one else have this problem?
NEWORLEANSTAXI: I have a friend of mine that sold cemetary plots and has
relocated to Dallas, if anyone can help him let me know
Al_Lee: markct, that is good. There are a lot of people coming here to
live and lots of them are professionals and business people, not just welfare
recipients.
Roger_Dawson: Does he know anything about below ground cemetery plots?
NEWORLEANSTAXI: I am sure he probably does
Bruce: marknc, what type of ins. do you have that would cause an
insurance company to cancel because you rent to students?
Mike_Summey: Roger, did I tell you that we had an earthquake in Asheville
a couple of weeks ago. First time I ever felt one. It jolted my wide awake from
a sound sleep and it was only a 3.8 quake.
NEWORLEANSTAXI: He was with the ALderwood Group
NEWORLEANSTAXI: His email is Lindsleys2@aol.com
Eddie-WV: Roger, what part of CA is La Habra Heights?
NEWORLEANSTAXI: His name is Steven Lindsley
Mike_Summey: Hi dobefan
Sandy: Roger, when I moved here in ‘95, they were giving condos away. Now
is a different story……
Roger_Dawson: Give me a good eathquake over a hurricane any day. At least
you’re not waiting for it to happen.
MarkCT: Mike have you ever tried to sue a tenant who vacated a unit
before their lease expired?
Roger_Dawson: Eddie, La Habra Heights is next to Whittier, close to
Diamond Bar. Capice?
MarkNC: It was a standard fire and dwelling policy. Two different
companies. Both just said they were getting out of the business of covering
student rentals. I have never had a claim on any property. I have new coverage
with a different company but it was just a hassle.
Mike_Summey: markct, yes, but it’s tough to collect anything. In NC the
landlord/tenant laws are not landlord friendly.
Brian-ON: I’m going to have to dash folks! As always it’s been
interesting! Hey CNN just reported the good guys killed the #2 guy on the food
chain for AL Queda. Good nite all!
Bruce: marnnc, no that hasn’t happened to me.
Roger_Dawson: Good night Brian
Eddie-WV: Roger, don’t know those areas. Is it north/south/central CA?
MarkCT: Is it worth trying to pursue or is it just a waste of my time?
Mike_Summey: markNC, I insure with Nationwide and they do a great job for
me.
NEWORLEANSTAXI: Bermuda, the pics are compressing right now and will be
on the way shortly
Al_Lee: markct: I had a tenant leave without notice may years ago. We got
a judgement for the remaining rent. He left the state and moved to new England
and tried to buy a house several years later. He had to pay off the judgement to
me in order to close. I collected!
Roger_Dawson: We’re 15 miles east of downtown LA, 10 miles north of
Disneyland.
Mike_Summey: Would anyone like for me to invite an insurance expert to a
future chat?
Eddie-WV: Mike, yes!
Bruce: Al, do you have a good collection agent? Or do you wait for the
judgement to be paid off down stream?
Bruce: Mike, I would.
MarkCT: So Al would you recommend pursuing a judgement?
Mike_Summey: La, I’ve had a few of those situations also, which is why I
always tell my managers to go ahead and get a judgement if possible.
MarkNC: I have always heard that all it is really worth doing is filing a
judgement for nonpayment unless the amount is really large.
dobefan: That might be a good idea Mike. I am sure many people would like
to include an ins rep online.
MarkNC: I know managers who claim to have collected many years later,
Eddie-WV: Roger, OH! I have an opportunity to move to LA with the company
I work for now. How difficult is it to get into the rental market out there?
Al_Lee: Bruce, I let the proeprty manager do the collections. In this
case I knew that they guy’s wife’s family had money and that there was a chance
he weoul end up having to pay. In most cases I just forget about it and get a
new tenant. You can;t get blood from a stone.
Mike_Summey: My agent is one of Nationwide’s largest agents. I’ll see if
he will join us at a future date.
MarkCT: Thanks for the advice marknc. It irks me that these people break
their commitments.
Bruce: Mike, that would be great. Does he type fast? haha
Al_Lee: Mark, that last response was to you also. IF you think the tenant
might have assets it might be worth getting a judgement, otherwise, not worth
the trouble
Mike_Summey: I once collected on a judgement that was 9 years old. I got
the amount of the judgement plus interest for 9 years.
Mike_Summey: The interest was more than the judgement.
Roger_Dawson: Eddie, I’ve got to tell you, it’s tough. A house that would
sell in other parts of the country for $150K and rent for $1250, would cost
$4000 here and rent for $2500, mayb.
Roger_Dawson: That’s 400K and maybe.
Bruce: Mike, how did you get interest attached to the judgement?
NEWORLEANSTAXI: Don’t judgements forfeit after 10 or 20 years, which is
it? I used to work for Lawyer’s Title Ins. corp
Mike_Summey: Bruce, a judgement automatically starts accruing interest if
it is not paid within 30 days.
Eddie-WV: Thanks for the info Roger! I guess the only upside is the
beautiful weather!
Al_Lee: Bruce, it is pretty standard for a judge to give you interest
added on to the amount you win.
dobefan: Roger, any recommendations for educational books on raw land
investments?
Roger_Dawson: Movie stars, swimming pools.
Mike_Summey: NOtaxi, judgements run out after 10 years unless you renew
them.
Al_Lee: Roger: Cement Ponds?
Bruce: Al, MIke, thanks, I thought it was the principle amount only. Who
set the interest rate? The judge or state, city, county?
NEWORLEANSTAXI: OK, I knew it was something like that
Eddie-WV: I’ve been singing that song in my head all day!! Hahaha!
Mike_Summey: Bruce, the rate is set by the courts.
Roger_Dawson: dobefan, don’t talk about bare land investmens in front of
Mike! He gets outraged. Bare land is speculation, not investment. Takes a lot of
cash to buy, so leverage is poor. No tax write off and hard to get your cash out
when you sell. I’ve made some good money on land, but it’s a Risky Business.
Mike_Summey: Penny, any critters outside tonight?
Eddie-WV: I attempted to sue a tenant that vacated the lease early and
they filed bankruptcy. What can you do in that situation?
Mike_Summey: Eddie, not much other than to suck it up and start looking
for another tenant.
dobefan: Thanks Roger. I only ask because I do own 10 acres that has
doubled in value in the last three years. Just wasn’t sure whether to sell or
hold it.
Bruce: Eddie, I don’t know, maybe wait until the BK is completed then
file the judgement….
Eddie-WV: Thanks.
Al_Lee: Eddie: Best thing is to screen your tenant applicants better so
yo don;t get another like the one you just lost. There are folks who use
bankruptcy as a tool to screw other people out of money. They might run up a lot
of debt in the husband’s name only, theny have him file bankruptscy and do the
same thing with the wife’s name.
Mike_Summey: The more checking you do before renting, the better your
experience will be.
MarkCT: Call it a newbie mistake but the one thing I wasn’t prepared for
was a slew of vacancies all at once. I assumed (wrongly) that when someone signs
a lease that they would stick to it. I’m glad I followed your advice Mike and
kept money in reserves while the going was good so I can ride out my vacancies.
Roger_Dawson: Dobefan: changing use changes the value of land. Look into
getting it zoned commericial or putting in some improvements like driveways and
utilities and selling off 20 half acre lots.
Eddie-WV: I have a tenant now who is saying they can’t make the rent
payments and have to move out. They have 9 months left on the lease and but she
said she needs her deposit back in order to be able to get another place. I told
her that if she moves out now then she will not get her deposit back. My fear is
that they will stay in and just not pay the rent. Any suggestions?
Mike_Summey: markct, that’s the very reason we recommend always keeping a
good cash reserve.
dobefan: Thanks for the advice Roger. I will look into that.
Roger_Dawson: I’ve always felt that leases protect the tenant more than
they do the landlord, so I’ve never signed a lease with a tenant.
Sandy: Eddie, my apt. complex is now taking credit cards….payrent.com.
Perhaps this is an alternative for you?
Al_Lee: Eddie: start evicion process as soon as possible. In Texas you
can get them evicted in a few weeks usually, but some tenants are pros at this
and know how to claim poverty or some other plea to put off your eviction
action. Don;t wait to start.
Roger_Dawson: Sandy, I like that idea! Be careful that they don’t charge
too much. Three percent should be plenty.
MarkCT: It was a very good recommendation. I can see how people get them
selves into trouble with out it.
Kim-OH: Sandy, have you thought what will happen when a tenant disputes
the rental amount?
Sandy: Roger, I think it is free to tenants. Landlords might have to pay.
I don’t use it for fear the landlord will raise my rent.
dobefan: Any plans to come down to FL and promote your books or any
seminars in the making?
Sandy: Kim, I don’t know what you mean? There is a rental
agreement/lease…..
Bruce: dobefan, what part of FL are you in?
Kim-OH: Sandy, yes but a tenant can dispute the rent charged to a credit
card
dobefan: I live in the Tampa area on the Gulf side
Mike_Summey: Eddie, I have my managers give a 10 day notice immediately
if the rent is not paid by the 1st and then file eviction papers 10 days later
… no excuses. If the tenant wants to stay, they have to pay the back rent plus
the cost of the evicition filing. That does several things: 1. It lets the tenat
know that if they are going to ride someone, it isn’t going to be their
landlord. 2. It gets the process started immediately in case you have to evict
them … you don’t lose days or weeks waiting. 3. It establishes a pattern tha
other tenants hear about, which causes them to be more careful about paying
timely.
MarkCT: Got to go. Talk with you soon Mike.
Bruce: Dobefan, how is the market in Cape Coral?
Al_Lee: So long, markct
Kim-OH: Goodnight all, have a great week
Mike_Summey: dobefan, I don’t have any current plans, but that is subject
to change any day.
Al_Lee: Bye, Kim
Eddie-WV: Mike, I know I asked about this last week…but is there any
update with the software you talked about?
Mike_Summey: Goodnight AL
Roger_Dawson: Sandy, I meant a good idea for the landlord. Knowing that
you’ll get the rent on the day it’s due is Priceless, as MasterCard says. So the
tenants get deep in depth and will never be able to afford to buy their own
home. That’s not the landlords problem.
Eddie-WV: All…thanks for the advice.
dobefan: I understand Cape Coral is a pretty hot area
Mike_Summey: Eddie, not yet. We’re still working on it. All of our
registered users will be the first to know when it is ready.
MarkNC: Good night all
Bruce: Dobefan, I’ve heard the same thing.
Sandy: I think they have to show good cause. The Credit card company will
ask for verification from the other party……Is that what you mean? If the
tenant owes rent and the Credit card doesn’t enforce the legitimate transaction,
then it would seem the credit card company would be liable.
NEWORLEANSTAXI: Good night all
dobefan: Well do keep us in mind Mike. We would love to hear you in
person.
Mike_Summey: dobefan, where are you?
Eddie-WV: Ok…I’d like to buy the first copy!
Roger_Dawson: Need to run, folks. I’ll be with you again in two weeks.
Mike_Summey: Goodnight Mark NO
dobefan: I live near Tampa
Bruce: notaxi , good night and stay safe.
NEWORLEANSTAXI: will do
Mike_Summey: dobefan, you may check with your local real estate
investment club and get them to bring me down.
Al_Lee: I am going to tuck the kids in now. Until next week…
NEWORLEANSTAXI: www.contistoursntransport.com
Al_Lee: Goodnight!
Sandy: Roger, Yes. It does seem like a good idea. I am a full time
substitute, but Summertime puts a damper on my salary. To use the Credit card in
Sept for one month’s rent really helps, although I haven’t done that.
dobefan: Ok Mike. I will see what they think.
Mike_Summey: I’m going to have to run also. Monday night football has
started.
Mike_Summey: Goodnight everyone.
Eddie-WV: Wow…9pm already!
dobefan: Good night all
Eddie-WV: goodnight Mike…
Bruce: by mike, thanks good night all
Mike_Summey: See you next week.
Sandy: Goodnight
Eddie-WV: Goodnight everyone…!
Ralph_2: gee… everyone’s leavin’
Ralph_2: chat will be posted shortly…. g’nite Penny, Sandy
Nick: hello
Deadeye31: I have a question for whomever is still around. What do you
think about the current Real Estate situation in New York City and central New
Jersey prices seem crazy these days.
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