Chat 11-28-05
Posted on November 28, 2005
bluelogic: *choochoo*
Mike_Summey: Hello everyone!
ritchie: Hi Mike
mgm: Greetings Mike.
Mike_Summey: You guys…and gals are early.
mgm: Hello everyone.
Ralph_Roberts: greetings all
Mike_Summey: Hi EGC
EGC: hello mike
Mike_Summey: Weather here is terrible. Rain & low ceilings all day.
ritchie: Mike, devoted weekend millionaires don’t want to miss a precious moment of valuable chat time 
Mike_Summey: right ritchie!
mgm: Mike, I just wanted to throw you a quick thank you for the seminar at AB Tech last week.
Mike_Summey: mgm, you’re welcome. I’m glad you enjoyed it.
Mike_Summey: Anyone have any questions before we get too many people in the chat?
Mike_Summey: Hi Bob
Bob_Carr: Hi Mike
EGC: yes mike what do you think about investing in south dallas
ritchie: Mike, when you work with a seller’s agent, do you write up an offer yourself or do you let the agent help you write the contract?
mgm: There is a lot of talk about forming an LLC to protect your rental properties from lawsuits. Is there merrit in that?
Mike_Summey: Bob, I’ll get the agreement to you in the next day or so.
Bob_Carr: Fantastic Mike,thanks
Mike_Summey: mgm, I use llcs to hold my properties, but not for the liability protection. I do it for estate planning purposes. Personally, being a good landlord and carrying the right insurance provides more protection than an LLC in my opinion.
Mike_Summey: Hi Doug
Mike_Summey: Hello Al
Doug_in_CT: Hi Mike,
Ralph_Roberts: hi Doug, hi Al
Al_Lee: Howdy, Mike, everyone
Doug_in_CT: Hi Ralph
Bob_Carr: Hey Al,Penny
Mike_Summey: Al, You’ll have a document coming to you in the next day or so.
Al_Lee: Hi, Ralph
Ralph_Roberts: hi Penny!
Mike_Summey: Hi Penny
Penny: Hi Bob, Ralph, Mike, and everyone.
EGC: mike or al what do you guys think about buying property in south dallas
Al_Lee: Mike, you must have read my mind. I was going to tell you I haven;t receive an email yet.
Mike_Summey: Al, had a tweek or two that needed to be done to it.
Al_Lee: egc, I am about to buy a bunch of new-construction houses in South Dallas. They will bve Section 8 leased and will positive cash flow very well
Mike_Summey: egc, I’m not familiar with DAllas, but any property that meets the Weekend Millionaire criteria for buying is good.
Al_Lee: Mike, I was in the software business myself. I understand.
Mike_Summey: Al, I know.
Mike_Summey: Roger is late. Everyone get on him when he finally arrives.
Al_Lee: The first 90% of the project consumes 90% of the time and money. The last 10% consumes the other 90%
Al_Lee: Blimey!
Mike_Summey: Al, we’re very close…I think.
Mike_Summey: Working on the help screen now.
Al_Lee: Mike, I can remember beign very close for long, long times!
ritchie: Mike, do you need beta testers?
Mike_Summey: ritchie, yes, that’s what Al & Bob are talking about.
Mike_Summey: Hi Eddie
Mike_Summey: Hi MrJones
MrJones30: Hello room it’s been awhile
Al_Lee: egc, I don;t know that neighborhood well enough to comment. I do know that we have 35,000 Katrina people here loking for housing
EDDIE-NC: Hello everyone
ritchie: If you are looking for more, I’d be a willing volunteer. My day job is software developer.
Mike_Summey: ritchie, send me your email address.
Al_Lee: ritchie, that is a day job if you consider that a day has 24 hours 
Mike_Summey: Fearless Ralph has left us.
MrJones30: Hey mike good article on the Real Estate bubble.
Mike_Summey: What do we do now.
Ralph_Roberts: i’m back already
Mike_Summey: Thanks MrJones
Ralph_Roberts: hit the wrong button
ritchie: Al, I have a friend who once said she’s on a half day schedule, where a whole day = 24 hours.
MrJones30: You are right about most investors who want to get rich right away
MrJones30: They want to buy two properties and get wealthy right away.
Mike_Summey: MrJones, I think the next 2-3 years are going to be exceptional opportunities for Weekend Millionaire type investors.
Mike_Summey: Hi Theo
Doug_in_CT: Does anyone know of Lenders that offers a 2nd mortgage on investment property?
Theo_SC: Hello all
mgm: Mike, do you allow your tenants to go month-to-month once the initial lease is over?
Al_Lee: I heard som scuttlebut about congress repealing the tax deduction for your own home. That would be a boon to us investors.
Theo_SC: hey Mike, enjoyed the seminar in Asheville
Mike_Summey: mgm, we try to renew the lease for another 12 months, but if they want to go month to month, that is okay, but they pay more than they would if the sign a new lease.
Mike_Summey: Doug, all of my lenders will make 2nd on investment properties if the equity is there.
Mike_Summey: Thanks Theo.
Doug_in_CT: Thanks Mike, How about a name?
ritchie: Mike, up to what LTV will your lenders tolerate on a 2nd for investment props?
Al_Lee: It is very common for investors to get second mortgages on their properties here
Bob_Carr: Hi Theo
Mike_Summey: Al, that won’t happen! If Congress were to do that 90% would be ousted int he next election.
Al_Lee: Mike, that might be a good thing!
MrJones30: Awesome!!! I’m looking forward to it. I know the RE market has to correct itself sooner or later, (Prices are too high) do you think this correction is going to be in the form of a government law? (I know it’s almost impossible to predict the future of re).
Theo_SC: Hey Bob…how are u?
Bob_Carr: Doing Great,You?
MrJones30: Do you think Ben Bernake is going to do something about the housing bubble?
Mike_Summey: Doug, I’m not sure any of them do business in your area. bb&t, Suntrust, RBCCentura, Blue Ridge, First Citizen’s
ritchie: I just read an article that says resales of houses are starting to slow down. http://news.moneycentral.msn.com/ticker/article.asp?feed=FT&Date=20051128&ID=5310515
Mike_Summey: MrJones, I’ve been through 3-4 of these corrections. The market will correct itself. Always has…always will if the government leaves it alone.
Al_Lee: Ben Bernanke is only concerned to be certain that inflation never stops. He has said so in so many words. He will do anythign to be sure we always have at least a slight bit of inflation.
Theo_SC: mgm…no problem, I have found that if the #’s don’t work don’t buy it. I am waiting for the software that will allow many different offers to sellers.
Bob_Carr: Al, did you read that article today in the Money section of USA Today?
Mike_Summey: Doug, interested in being a beta tester?
Al_Lee: Bob, No, I have been in meetings with my accountant and a home builder all day. What did it say?
Doug_in_CT: Yes, Mike. Count me in. Let me know if you need my email address.
Mike_Summey: Doug, I do need it.
Doug_in_CT: doug@integrity.net
Ralph_Roberts: BRB… gotta reset computer.
Bob_Carr: Talking about El Paso and the home values comparing to other parts of the country
MrJones30: Does anybody invest in the Seattle area?
Mike_Summey: Hi Kim
Kim-OH: Hi Mike
Mike_Summey: I just talked to Roger. He has gotten tied up and is not going to be able to join us. He send his regrets.
Mike_Summey: Hi JD
ritchie: Mike or Al, up to what LTV will your lenders tolerate on a 2nd for investment props?
Al_Lee: ritchie, you can easily have a first for 80% and a second for 10%, some will go 15%, AND even 20% for the second.
Mike_Summey: ritchie, for 2nd mortgage money, they won’t go much over 80%
Al_Lee: The interest rates go up as you get more leveraged.
Mike_Summey: Lenders are much more liberal in Texas than in NC
mgm: Mike, when you leverage your properties do you just refinance to the original purchase price?
Mike_Summey: ritchie, did you send me your email address?
Mike_Summey: Doug, Eddie are you having problems?
ritchie: Mike, yes, I did. Sent it to mike@weekendmillionaire.com. Was that correct?
bolt767: i know alot of people who have invested in texas
EDDIE-NC: just hit wrong button
Mike_Summey: Hi bolt
bolt767: hi mike
bolt767: seems to be a popular place if i’m not mistaken for investing
Theo_SC: Mike…what do u think about the 80/20 loans?
MrJones30: Honestly you can make money in ANY market.
Al_Lee: bolt, I personally would not own residentialproperty anywhere but Texas. I do own some commercial property elsewhere, but not residential.
Mike_Summey: bolt, we’re glad you joined us and you are welcome to ask any question you like about real investing and wealth building.
bolt767: thank you mike
ritchie: Has anyone in this chat ever pulled off a zero down deal that breaks even on rentals?
MrJones30: Why not AL?
Mike_Summey: ritchie, I’ve done several, but they are the exception, not the rule.
bolt767: al, i have heard good things and seems like alot of people from out of state invest there
mgm: There is a lender here in Johnson City, TN that will do an 80/20 loan. A regular interest 80 with a very high interest 20. He gets it through Suntrust. I can’t say I was too impressed with the organizational skills. Unfortunately, he was the only person I could find who has access to this particular style of financing.
Al_Lee: ritchie, no I never buy anything unless it makes a positive cash flow, even if I buy with zero down.
ritchie: Al, thanks. By break even, I meant break even or better.
Al_Lee: bolt, you are exactly right. There are a lot of reasons why, too.
ritchie: mgm, is this for a purchase, or a refi of an existing rental?
Mike_Summey: Did everyone get my email today about Carleton Sheets being my guest in the chats for the next two weeks?
Mike_Summey: Hi elba
Theo_SC: yes
bolt767: mike, i’ll check
Mike_Summey: Hi Glen
MrJones30: Yes
elba_NYC: I did and look forward to it
glen: Hi Mike
Al_Lee: ritchie, I believe that cash flow is what it is all about. That is how you get yoru investment dollars back so you can reinvest them and still keep the property you bought.
elba_NYC: Mike I use your books when I don’t understand something on carleton’s course. Bluelogic and I are taking the coaching.
bolt767: i didn’t get the email but i saw it in the current events column previously
mgm: ritchie, this was for a non-owner occupied, single-family house.
ritchie: Al, have you acheived cash flow on a zero down deal?
MrJones30: I agree AL
Al_Lee: ritchie, yes, absolutely.
mgm: Mike, yes. Thank you for allowing us access to these great resources.
Mike_Summey: bolt, are you registered on the website?
ritchie: mgm, purchase or refi?
Theo_SC: Mike…do u prefer residentials or commercials or it does not matter as long as it cash flow.
bolt767: yes mike, i did register last week
mgm: Sorry. Purchase. I am not sure about the refi.
Mike_Summey: elba, what happened to bluelogic?
Mike_Summey: Hi Scott
elba_NYC: he’s coming back
Mike_Summey: t, you should have gotten today’s email.
ritchie: mgm, have you enquired if the the seller can finance the 20%?
Doug_in_CT: I am working on purchasing my ninth investment property this month. I have been buying sfr’s 3brd, 1bath, about 1000 Square Feet and find I can make the cash flow at 90% ltv. My favorite tenants are reliable agencies who pay promptly at the first of the month and do most of their own maintenance. I think these tenants are so valuable that renting a negative cash flow might make sense.
Al_Lee: ritchie, with my method it is critical that you maintian a high fico score and excelelnt credit ratings, but you can get terrific financing and make great deals that way.
Scott: hi
bolt767: i tried to register twice and it said last week that my email was already in the database
Mike_Summey: I’m getting ready to make an offer on a 5 unit property within the next few days. I’m currently getting together the cost to add A/C and new carpet.
Mike_Summey: bolt, email Ralph at ralph@abooks.com if you still have a problem. He can help.
elba_NYC: Can anyone tell me about how much does repairing or getting a new roof cost?
bolt767: thanks mike
mgm: ritchie, I have not. I am starting to hit this a lot harder of late. I never thought about setting that particular offer that way. The mortgage lender I have used in the past would definitely frown on a contract like that. Do you have any recommendations?
Doug_in_CT: I find slow and steady rent increases are no problem with these tenants. So what is an alligator this year will be flowing nicely next year.
Mike_Summey: elba, in this area it runs about $110 per square. That’s 10′ x 10′.
elba_NYC: thank you.
elba_NYC: Al, how about in Dallas?
MrJones30: Mike how do you feel about interest only loans? How much of the interest can you deduct at the end of the year?
ritchie: mgm, I’ve not yet aquired a zero down deal. However, if you can get the owner to agree to finance 20%, others in previous chats have suggested that local community banks would finance such a purchase (the remaining 80%).
Mike_Summey: The deal I’m working on is an estate property with 4 heirs. I’m going to make 3 separate offers to each heir for their 1/4 interest.
Al_Lee: elba, how aobut what? roofs? A roof for a small house might run 3000 if you don;t have to also replace/install decking
Doug_in_CT: This will be another good story for the next book Mike, if you can pull it off.
Mike_Summey: Some of them need cash while others can finance and don’t want the cash now.
Mike_Summey: Hi zert
elba_NYC: thank you Al, the ownner wants to give us a 2000 credit if he does not replace it.
EDDIE-NC: Mike, Greenville, NC is exploding with new multi-family units. Would this be a positive or a negative for someone owning older properties as far as rent rates
mgm: ritchie, what types of deals have you been able to acquire? I have been doing the 10% down but I can’t keep doing that. My problem id getting past the realtor listing the property.
Mike_Summey: elba, get a quote from a qualified roofer and ask for that amount of credit.
elba_NYC: Mike it reminds me of the divorced couple in the book. About that roof we sure will, thanks.
Mike_Summey: Eddie, I would need to know more to answer that.
Al_Lee: elba, if it needs just repairs and not replacement, that might be OK
Mike_Summey: Do you own the older properties? How old? what condition?
bolt767: i’m a veteran is it the norm to get a 0 down loan with a VA ??
zert: My connection keeps getting terminated. That sounds so harsh!!!
Mike_Summey: bolt, if you use your VA loan, you willhave to live in the property for a while.
Theo_SC: Mike…I am having a tough time finding a good property management co. in my area. Any suggestion…Greenville_SC
ritchie: mgm, what do you mean by getting past the realtor? If the realtor is the sellers agent, he should be happy to present any offer, including one with special terms like seller financing.
elba_NYC: Yes Al, that may work.
bolt767: ok mike
Doug_in_CT: Hi Linda — Good to see you “in the house.”
Mike_Summey: Theo, you may have to do like I had to do a while back. Start with a mediocre one and train them to be good.
Mike_Summey: Hi Linda
Mike_Summey: d you could join us.
ritchie: I just recently inspected a property where the owner is a landlord and owns the property outright. My guess is if he knows the tax laws he would consider financing as a way to defer taxation on gains and recaptured depreciation.
elba_NYC: Theo, do what we did. Find a list in the area your looking in and use Mike’s list of questions on the book. We did that word by word.\
Theo_SC: Thanks
bolt767: mike, so when i am able to acquire rental property i will have to use alternative financing ?
EDDIE-NC: yes, I own an older unit in pretty good condition. I am right in between two large complexes. I was just wondering if people starting moving into the newer units that the market would be over filled with older units which could cause competition
elba_NYC: By their response we narrowed it down to two.
Mike_Summey: bolt, I believe that is correct. I don’t think you can use your VA exemtion for investment properties.
Al_Lee: ritchie, if he knows the tax laws he will do a Sectin 1031 exchange and sell without any tzx consequences, then possibly refinance he equity out f th enew property to get cash with not tax consequences.
mgm: ritchie, that is mainly due to me. When I present the offer it has been through my buyer’s agent. I have just recently started looking with out the assistance of an agent.
Doug_in_CT: Bolt, I find that the first couple of properties are easy to get from Banks. They start to get a little nervous after they see about ten mortgages on the credit report.
lindabaum: I am looking for a place to put $85000 for a 1031 exchange - would prefer 6 units or more. Does anyone know of anything? (I am in Connecticut but can buy anywhere).
bolt767: doug, it gets more difficult instead of easier ??
Mike_Summey: Eddie, you will probably experience some competition, but that happens everywhere. Grown in rental units tends to run in spurts.
Al_Lee: linda - I have a 14-unit proeprty that can be bought at a great price and is producing good cash flow in Dallas
mgm: rithcie, how long have you been investing in rental properties? I started looking back in June 04 and closed on my first property at the end of October 04.
Mike_Summey: Linda, how much time do you have?
lindabaum: thanks Al_Lee. please contact me at info@ctreia.com
Scott: I have a question about escalating a payment schedule on an owner financed sfr. In order for me to make this deal work I must increase the payments I make to the seller every 5 years. In order for these increases to cashflow assumes that I will be collecting rent increases. I would like some opinions on this. Thank you.
Theo_SC: I do have home warranties on all my rentals so that helps a lot. I end up becoming a project manager, but I want to get away from that task all together
EDDIE-NC: Thanks Mike
Doug_in_CT: Linda I have a real estate broker contact in the Hartford area who specializes in Multifamily units. I am sure he would love to show you some things.
lindabaum: We plan to sell on December 10th and will have 45 days from then to ID the property.
Al_Lee: linda, if you will email me offline I will get you specifics on that property
Theo_SC: I had to fire my handy man
Mike_Summey: Scott, how much will the payments increase? Would a refinance with a conventional lender eliminate the increases. Will the increases be more than expected rent increases?
Al_Lee: go to www.TurnkeyInvestments.net and click on “email Al” to email me
ritchie: mgm, I own one rental currently, which is my former residence. I am scouting for good investments but have not purchased another one yet. I’ve inspected several.
Mike_Summey: Linda, Al may have solved your problem. I don’t know much about 1031 exchanges because I’ve never sold a property.
Doug_in_CT: Yes, Bolt, it seems the banks I have used (even eloan) sorta give you a pass on your first investment property. Now they don’t want to know me anymore that my net worth has tripled.
Mike_Summey: ritchie, just be patient.
Mike_Summey: Hi jh
bolt767: doug, i read somewhere that some banks have confidence in people who have several properties
Al_Lee: Mike, Linda, I have done 1031’s myself and have guided lots of members of my investor club to doing them. It is a great way to avoid taxation. They say it is only deferred, but you can actually avoid taxation forever - no kidding!
ritchie: Al, in this case, the seller is not looking for a 1031, he wants to get out of landlording. That seems like a great opportunity for seller financing where everyone wins.
bolt767: but i can understand some banks might not be so confident about this too
glen: Mike, I will like to tell you how much I love your (and Roger’s) books. I read them both and find it hard to read other real estate books from other authors. I love the style of writing, honesty and creativity.
elba_NYC: glen, Please add simplicity to that.
jh4377: Hello Mike. I have 18 pages left on your book Weekend Millionaire mindset and think it is Great.
zert: Doug - see if yu can talk to the lender or underwriter. If they are going by credit score and Debt to Income soley, they tend to get concerned
Mike_Summey: Thanks Glen. We try very hard to be honest and guide our readers to a successful career in real estate investing.
bolt767: this chatroom is a great idea
Doug_in_CT: Bolt, most banks and mortgage brokers are set up for your traditional one house family. They get all flustered after you keep reading off property after property in the listing of assets.
Scott: Mike. The increases will be about 20% of the original payment at 60 and 120 months on a 180 month deal. Annualized this is about 3% a year. I expect rent increases at about 4-5%.
Mike_Summey: Thanks JH, I’d appreciate it if you would post your review of it on Amazon.com.
glen: and Simplicity
jh4377: Gladly
Mike_Summey: Scott, so what’s your problem?
elba_NYC: Amen :D
bolt767: doug, yes i know some banks and realtors are in that frame of mind
Scott: Just uncharted ground - seems like speculation.
Scott: I’d like to hear that its been done successfully before.
ritchie: Doug, sounds like you’ve been wildly successful. During what time period have you seen the net worth triple?
Mike_Summey: Glen, I have to be simple. I don’t know any other way. I learned many years ago that the burden of communication is on the person doing the talking…or writing. It doesn’t matter how smart I am if I can’t communicate what I know to you in a way you can understand.
glen: That is very true
Doug_in_CT: Ritchie, I have really only been “at it” for about three or four years.
ritchie: Doug, is this your full time job?
Doug_in_CT: No, I am a little like Mike, I think I better wait till my net passive income comes up to something like $10,000 a month.
Mike_Summey: Scott, I have had several loans that escalate over time. They’ve never been a problem for me. Of course, I like long term leases that escalate over time better.
Scott: Thanks. I just wanted to know that it’s been done before. I am very in to lease increases. Thanks.
Mike_Summey: Ralph hit the wrong button again.
ritchie: Mike, if you are working with a sellers agent, do you write an offer to purchase yourself or do you let the agent write it up for you?
Ralph_Roberts: yep
Ralph_Roberts: ;>
Doug_in_CT: I think you get knocked off, if you are low on system resources, like having too many other programs open at the same time.
Mike_Summey: ritchie, now I always write my own offers. That was not the case in the beginning, but now I know more about writing offer than most of the brokers know.
Ralph_Roberts: you also get knocked off if you move the mousie arrow up to close another program and close the browser instead… don’t ask me how I know.
Doug_in_CT: I find if I go to look something up during the chat in one of my other programs, I am taking a risk at the revolving door.
Al_Lee: mousie?
mgm: Mike, when the software comes out, will the offer choices that are available be samples of ones you have written?
Ralph_Roberts: mousie… little thing with two ears and a crush on Annette
glen: I have a question: I have some credit card and student loan debts which I am working to pay off in the next year. I want to start my real estate immediately though. I am worried that I will not be able to get good financing on any loans (seller financed) or otherwise due to the debt that I am currently in. Do sellers who finance loans typically look request a copy of the buyers credit report?
Al_Lee: Ralph, that describes me many years ago
Ralph_Roberts: m-i-c …. etc
Mike_Summey: mgm, the program will walk you through creating your own offers…hundreds of them…that will all work with the NOI and will then actually produce the offer letters ready for your signature. Pretty cool.
ritchie: glen, if your credit score is high, a high debt ratio is not necessarily a problem.
Theo_SC: I can’t wait
bolt767: glen, i am almost done paying my credit cards off, its been a big obstacle for me but something i wanted to eliminate so i could concentrate on investing
glen: it is decent, not horrible but it can be better
ritchie: Glen, a good mortgage broker can pre-qualify you and give you a letter you can present with offers.
glen: thanks
Doug_in_CT: But ritchie, I find one of the things that brings down your score IS a high debt to income ratio.
Mike_Summey: glen, get the credit card debt and student loans paid off as quickly as possible. That will do more to help your credit report than anything. As for seller financing, most of the time sellers do not pull credit reports.
mgm: Mike, I think what you are making available is the one item beginner investors have been screaming for all along. Thank you for all of your assistance.
elba_NYC: Glen, ritchie is right that’s what my husband and I did.
Mike_Summey: Penny hit the wrong button
bolt767: my goal is to pay off my last 2 credit cards by january 1
Penny: *bird* yep
Doug_in_CT: I have found I have to “Go Stated Income” to avoid the debt to income ratio problem.
glen: thanks guys and gals
bolt767: i had like 7 or 8 credit cards total
Mike_Summey: Penny sits back and soaks it all up. She’s the silent, but deadly type.
elba_NYC: your welcome Glen.
ritchie: I realize no credit card debt is better, but for what it’s worth I’ve carried debt for several years at zero % finance charge. I have automatic payments with online banking to make sure I’m never late on a payment.
Doug_in_CT: Who is your favorite zero % lender, richie?
Mike_Summey: Personally, I think credit card debt is about the worst kind of debt one can have. It’s such a shame that colleges allow the banks to come on campus and sign up our youth for credit cards that often get them in debt that they are never able to pull out of.
glen: that is how my credit debt started
bolt767: credit card companies offer alot of incentives to get into debt like getting miles for travel
ritchie: Doug, my criteria is 15 months with zero % rate. Mike, I don’t dispute your assertion. My goal is not to have credit card debt - but as long as I do, I don’t like interest.
bolt767: but credit cards are ok if you can control them, i am just keeping 1 or 2 and a debit card, that’s all i need
Penny: thanks Mike
Mike_Summey: Most average people pay enough in interet and finance charges over their lifetime to become millionaires.
bolt767: i think i learned
elba_NYC: CC debt is only okay when it is helping you buy invesment.
Doug_in_CT: I have noticed a rash of zero and low interest rate card offers coming in the mail, right around the holiday time when people are desperate to find some extra cash. This is the credit cards way of bring themselves a little yule tide joy.
Mike_Summey: Penny know more than all of us, but she keeps it to herself.
Mike_Summey: She’s the smart one.
elba_NYC: That way the interest is tax deductable. We are learning that with Carleton
glen: how is penny?
Penny: wroooong. Mikes just blowing smoke again guys.
bolt767: its amazing how high the interest rates are, especially if you miss a payment
glen: ohhh
glen: never mind
bolt767: or are late
bolt767: hi penny
Al_Lee: bolt, credit card companies make 35% of their profits from late fees
Penny: Hi bolt
elba_NYC: how about being penalize by another creditor when you default with one?
bolt767: al, yeah i heard that on the clark howard show too
Penny: glen do you live in Spartenburg?
mgm: elba_NYC, are you saying that using a credit card for purchasing rental properties allows you to deduct the interest? For what have you used the credit card that allows deductions?
Mike_Summey: I use credit cards extensively…I get the frequent flyer miles, but I always pay the balance in full at the end of the month. I use them as convenience cards rather than “credit” cards.
Doug_in_CT: Yeah, I think the odds of catching someone “a little late” because they were on vacation or something gotta be very favorable, so if they get folks signed up at 3% interest for 8 months, the chances of them only earning that amount are pretty low.
mgm: Mike, you have a plane. Why do you need frequent flyer miles? 
elba_NYC: We are learning that if for example you use the card for a downpayment it may be deductible.
Mike_Summey: mgm, so my kids can fly. It’s too expensive for me to fly them around the country.
elba_NYC: Or even educational products like books on investing.
Mike_Summey: elba, that may be challenged by the IRS unless your documentation is air tight.
glen: No penny. Not sure where that is either
ritchie: Doug, I would not advocate card hopping to anyone is not an extremely disciplined manager of their finances. Late payments and fees are what I call financial “leaking”.
elba_NYC: You’re Absolutely correct Mike. We work with a tax attorney for those kind of issues.
ritchie: as are finance charges
Penny: in SC, just thought you might be a glen I met at a seminar I attended there.
Doug_in_CT: Retiring debt is very hard work. It is like pushing a heavy cart up hill. Paying the minimum is like riding a boat gently down the stream, where a catarak awaits.
Mike_Summey: Next week’s chat will be very interesting. Please tell all your friends to join us as we bombard Carleton Sheets with questions.
Penny: phone call, gotta say goodnight all
Penny: enjoy rest of chat
glen: oh ok. No I live out on the west coast. Washington
Penny: Thanks Mike, goodnight
Mike_Summey: Hi shane, where ya been?
elba_NYC: Only on a website like this can it be possible. Thank you Mike
Mike_Summey: Goodnight Penny
shane: My son had a ball game
Mike_Summey: We’ve got a good group tonight. I’m going to step away for a min to get something to drink. Be right back.
MrJones30: Awesome, Hey glen
glen: Hey Mr jones
MrJones30: I just moved to Washington a few months ago.
glen: same here
MrJones30: From where?
shane: So, is any one out there doing any deal sthis week
elba_NYC: Al, how are closings handled in Dallas?
glen: Florida
MrJones30: <~~~New York
Al_Lee: Bob-Carr, I tried to call you a few days ago and just got voice mail.
ritchie: Mike, the upcoming chats should be very exciting.
bolt767: <<<<< florida
MrJones30: Why would you move away from a nice climate like Florida?
mgm: ritchie, whare are you located?
Mike_Summey: I’m back
Al_Lee: elba we use “title companies” here which are really a variation on a lawyer’s office that makes a big chunk of its money selling title insurance
elba_NYC: shane, my husband and I might.
ritchie: mgm, I’m in the Raleigh, NC area
Theo_SC: good night all…see you next week
jh4377: >>>>> Phoenix
glen: so no offense to any floridians but “The sunshine state” is not the right term for FL 
elba_NYC: Thank you Al. That’s what our realtor told us.
shane: Great, is it single or multi family
bolt767: glen , i know, i’m from california originally and i miss it alot
Bob_Carr: al,i had a problem just before Thanksgiving with my phone,I had it repaired on friday,will give you a call tomorrow and catch-up
Al_Lee: elba, are you buying something in Texas?
mgm: rithcie, nice. my family and I almost moved to Wake Forest. That is a great area. Our contract fell through on the person purchasing our house. It was ugly.
elba_NYC: yes it is.
bolt767: except for its so expensive out in LA
elba_NYC: yes we will Al.
Al_Lee: Bob, that is cool There is a lot going on.
MrJones30: Laughs!!! is it because of all the hurricanes lately?
Mike_Summey: Roger will be gone the entire month of December. He is speaking in Kuwait and Saudi Arabia. Carleton Sheets will be with me the next two weeks. Does anyone have anyone special they would like me to invite the Week of Dec 19?
ritchie: Mike, I had always thought Wake county was the best place to buy - but just recently discovered a neighborhood just 10 minutes from where I live in Durham county. Lots of small single family homes.
Ralph_Roberts: Santa Claus
Doug_in_CT: It is time for me to get my little ones into Narnia in the sack. Great movie coming out soon. http://www.narniaweb.com/
elba_NYC: My husband and I were going to join your club. But then the Carleton sheets program came along.
bolt767: i spent 2 years in fayetteville, nc
Al_Lee: Doug, my daughter just finished that book. Great book!
Al_Lee: elba, we accept Carleton graduates
ritchie: mgm, where are you?
Mike_Summey: ritchie, that’s why we recommend that you get out and ride the market. It’s amazing what you can find.
mgm: ritchie, Elizabethton, TN. It is in the NE corner of TN.
Doug_in_CT: Yeah, Al, some 5 star reviews are coming out from the critics.
Doug_in_CT: Good night all.
elba_NYC: Thank you, we will keep you posted of our progress, your club is next Al.
ritchie: mgm, I was just up there around Johnson City
ritchie: mgm, beautiful country
mgm: ritchie, that is the place. The cost of living is great. Only problem is finding a job that supports my habit. Real Estate is an expensive addiction.
Al_Lee: I need to go help my daughter finish a school assignment so she can get to bed.
MrJones30: How does anybody feel about interest only loans? How much interest can you deduct at the end of the year?
Al_Lee: Goodnight, everyone.
glen: Night
shane: Is any one taking a stab at the 71 mhp up for sale
ritchie: g’night all
mgm: ritchie, have you had any problems with property values and the rental market?
elba_NYC: Good nite, Al.
Al_Lee: MrJones: I love I-O loans and you deduct ALL of the interest
shane: good night Al
Mike_Summey: It’s been a great chat everyone. Roger just called me again to apologize for not making it. I told him he will pay in blood.
ritchie: mgm, absolutely. Properties are expensive, and the ones I’ve found that might cash flow end up having problems. Either you have to work very hard to find the deals or be willing to put down a significant percentage
MrJones30: I figured that…thanks AL
Mike_Summey: Everyone get your questions ready for Carleton next week and be sure to invite your friends to join in as well.
EDDIE-NC: He’ll negotiate out of it Mike
Mike_Summey: Eddie, not this time.
ritchie: mgm, in my area, rental rates have fallen over the past 7 years while purchase prices have increased
bolt767: sounds good mike
mgm: Mike, thank you for being available. Your willingness to assist is greatly appreciated.
glen: Thanks everyone. This was fun. See you next week.
Mike_Summey: mgm, that’s what we’re here for… to help our reader become successful.
Ralph_Roberts: gee everyone’s going home… transcript will be posted anon.
ritchie: Mike, as always, thanks for hosting. You have my email, looking forward to the beta.
Mike_Summey: Goodnight all. Next week will be a great chat.
MrJones30: Ritchie-that’s probably because of the interest rates are so low. That will change very soon.
mgm: Goodnight.
jh4377: Goodnight.
shane: Good night Mike
elba_NYC: Good nite everyone.
EDDIE-NC: Good night and have a great week
Mike_Summey: Please keep talking amoung yourselves as long as you want. I’ve got to run for now. Goodningt
bolt767: good night mike, thanks
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