Chat 1-9-06
Posted on January 9, 2006
kuki: :> :> :> :> dance dance dance dance dance dance dance dance dance dance
gstona: Hi, anyone on line who has purchased HUD housing
tom@tomchristinat.com: Roger stick around, you could be useful
Roger_Dawson: Good evening, everyone, Mike Suumey will be joining us momentarily
tom@tomchristinat.com: just kidding
raleighbound: hi gentlemen,ladies
Mike_Summey: Hi everyone
Roger_Dawson: here’s an excerpt on HUD properties from our upcoming FAQ book Regarding HUD foreclosures, does the government have any guidelines on how much discount they can give off the list price? They receive advice from local brokers on how to price properties, but their primary interest is providing loan guarantees, not owning property. For that reason, they want to get the properties off their books as quickly as possible. That doesnÕt necessarily mean they will offer the properties at fire sale prices. During strong seller markets you can expect to find very little in the way of discounts. The longer a property remains unsold the more incentive there is to keep discounting the price until it sells. There are special brokers who take classes to become qualified as HUD brokers. These brokers typically list the HUD homes and handle their sales.
scottdallas: Hi!!
Mike_Summey: I hope everyone had a great holiday season and are now ready to have a great year investing in real estate.
Mike_Summey: Where’s Ralph tonight?
scottdallas: scared but excited!
Mike_Summey: scott, no need to be scared.
scottdallas: Good! I just got back from a tour tonight. So bad – Renters that destroyed alot
raleighbound: Mike what do you think of 40 yr neg amort loans?, are they good to just buy or control a property as a beginner investor like me?
Mike_Summey: I’m starting to see a major cooling off in sales prices, how about the rest of you…same thing?
DavidOro: i’ve seen houses sitting a lot longer in california
Mike_Summey: Hi Rob
scottdallas: Sitting a lot longer in Dallas too!!
Mike_Summey: eigh, I wouldn’t touch a neg am loan for any reason, but that’s just me.
Roger_Dawson: Raleigh, a forty year loan is almost like an interest only loan. Only do it as a last resort and refinance to an amortized loan as quickly as you can.
scottdallas: But – prices are going up here. More East and West coast people buying them and pushing the pricing up.
Mike_Summey: scott, Dallas is still one of the best places in the country to buy.
Mike_Summey: roger’s old Macintosh computer must have bucked him off.
Roger_Dawson: No, I switched so that my son John could use the Mac.
scottdallas: Yes – still cheap! But Mike – I feel this urge to flip and not rent. Seeing so many expenses fixing up rentals that no one wanted to mess with. I dont want huge costs when each one moves out. Any ideas on how to prevent this?
raleighbound: But guys here infla even if you have a 3K neg amort in a year, theproperty goes up 20K no?
tom@tomchristinat.com: I live on the east coast. Cape Cod prices were out of site and they are sitting longer but still high. I can’t seem to make any numbers pay the mortgage let alone thw tax ins and other expenses
Mike_Summey: Scott, the better job you do of screening tenants the less expenses you will have. Just remember that repairs are only a cost of doing business. If you plan for them when you purchase and reserve for them while the rent is coming in, you should be fine.
Mike_Summey: Hi Rick. Welcome to the chat.
Mike_Summey: Hi elba
Rick_In_Canada: Good evening!
elba_nyc: hello everyone Happy new year!!!
Roger_Dawson: Tom,I can’t see you getting cash flow in a desirable place like Cape Cod. You need to go where the blue collar workers live.
Roger_Dawson: Hi Ralph!
scottdallas: Good point. Can you give the managment companies specifics on how you want them screened?
Mike_Summey: tom, there are areas where prices are out of sight, but I think you will see a softening in the coming months. There are many less people able to buy today at the higher interest rates than there were two years ago.
Ralph_Roberts: hi folks!
Mike_Summey: Hi Ralph, we thought you’d forgotten us.
Mike_Summey: Hi unklebk. Welcome to the chat.
Ralph_Roberts: just running late
Mike_Summey: i Sandy
unklebk: Good Evening !
Mike_Summey: Hi Larry
Mike_Summey: ‘re starting to get a good group.
Mike_Summey: Ave
Mike_Summey: Hi Dave
DaveNrichmond: Hello all
sandy: Hello all. Seems like a long time.
DaveNrichmond: what did I miss?
Larry-NC: Hi Mike and Roger
Mike_Summey: I’m typing too fast. My computer son’t keep up.
tom@tomchristinat.com: Thanks Roger, I do own a property in the Bangor area of Maine and it seems much more workable there but its 325 miles away. Should I invest that far away?
elba_nyc: scott, im buying in Dallasnext week. my questions for managment i got from Mike’s book.
Mike_Summey: Hi Josh, Welcome to the chat.
Josh: Thanks, I’m new to the website and love your book Mike
scottdallas: Thanks Elba! I have the book – must have missed that one. First buy – scared you know.
Mike_Summey: Scott, I strongly recommend using professional management.
Roger_Dawson: Tom, that’s a long way, but if it’s viable you might what to start buying there. If you have several properties in an area you can justify the trips to see them.
scottdallas: I agree!! And have found a few at 10%. I have your audio book and you are right. Just dont feel like they will do it good enough.
Larry-NC: So Mike. It’s a new year and you say you always evaluate your properties and returns every January. How do you do that?
Mike_Summey: Scott, that first purchase is always the scariest. It’s sort of like driving; the first time to turn the key and crank the engine, you’re scared to death, but as you begin to drive, each trip gets easier.
DaveNrichmond: I think I’m about ready to look at a management company.
elba_nyc: Im on pins and needles. its my 1stbuuy too!
DaveNrichmond: tired of showing houses. And maybe they will be able to put people in the places.
Roger_Dawson: Scott, I know how you feel about being scared. I still remember how scared I was buying my first property. Soon you’ll be writing and cashing those big checks and it won’t bother you.
Mike_Summey: Larry, I will be sitting down with my property managers this month to review all units. We’ll look at the rental rate, the last increase, do comparisons with similar properties in the market and plan the rent adjustments we will make for the year.
scottdallas: Mike – thanks for the encouragement. I just want to make sure I have not missed anything. Have a pro-agent also into flips.
Mike_Summey: Hi Eddie.
EDDIE-NC: hi, everyone
tom@tomchristinat.com: I plan to move there but 3-5 yeras away/ however I can buy 5 bread and butters for what one costs here. I have watched the market there for 15 years and if I only heard about you than. Sounds like I should spend some more time there.
elba_nyc: Mike where’s Al?
Larry-NC: Mike,Good ideas- I’m changing management in Raleigh now
scottdallas: Thanks Roger!! I think of all the things you guys talk about. Did I negotiate the best, is this the right house, location, will they be able to pay the rent I need. You guys have a coaching program to make sure I am all the right track?
DaveNrichmond: Hey Mike and Roger. Early on…did you ever feel like the expense of your properties was crushing you?
Roger_Dawson: Dave,I always knew that if you can hang on, time will let your equity and rents build.
DaveNrichmond: The two placed I bought and fixed up this past year are both ready to go….but sitting empty.
DaveNrichmond: I just can’t figure it. Rent is right for the areas. Great houses. decent neighborhoods.
Mike_Summey: Hi Doug
Ralph_Roberts: there’s Doug! hiya.
Mike_Summey: Scott, this is our coaching program and it’s free.
Ralph_Roberts: Big Al!
scottdallas: Best price!!!
Mike_Summey: There’s Al. someone just asked about you.
Roger_Dawson: Hi Al, happy new year.
elba_nyc: Hello Al!
Al_Lee: Hi, Sorry I am so late. Had to cook on the grill and the family was late coming home tonight
Ralph_Roberts: dance
Al_Lee: Mike, do I owe them money? If so, I am not here.
Al_Lee: Hi, all
Mike_Summey: DAve, what does the houses for rent section in your paper look like. Is the market flooded with rentals or are your rents too high?
raleighbound: Larry NC, im goann move to Raleigh in a omnth, any good prop mgmt cos u can refer me?
elba_nyc: I don’t think you owe me money?
elba_nyc: Do you?
Al_Lee: Hi elba, OK, then it is me–I am here
DaveNrichmond: Lot’s of rentals in the paper. I have had lots of people apply to rent but they are all terrible risks
raleighbound: Im in FT laud by the wya
DaveNrichmond: run their credit and they have leins against them, and collections coming out their ears. a couple times I am certain the people were trying to swindle me.
Al_Lee: elba, that is great!
Mike_Summey: Dave, I’d rather wait for a good renter than take just anyone to fill a unit. The problem tenants usually cost you more than a month or two of vacancy will.
Al_Lee: Mike , do you want to talk abut the software?
scottdallas: Ok – let me ask you 2 q’s. We have foundation issue in Texas. Should we stay away from good houses with fixable foundation or take on the repair costs? Also, we have revitalizing areas that are on the boarder of potentially getting better or worse. Any suggestions?
Mike_Summey: Not here Al. I passed on your suggestions and they are being implemented.
Roger_Dawson: I second that, I’d rather leave the place empty and take in laundry if I had to, rather than accept a marginal tenant.
Al_Lee: Mike, OK
DaveNrichmond: I know Mike. And I have listened to what you have advised on that…so I have been waiting it out, even though it’s starting to hurt a bit.
Larry-NC: Raleighbound, We chose Masters R.E.- Negotiated 7%- can change to someone else with 30 day notice
Doug_in_CT: Yes, that is a saying worth remembering “A problem tenant usually costs you more than a month or two of vacancy will.”
Mike_Summey: scott, what type of foundation problems?
DaveNrichmond: But where do I find the decent tenents??
elba_nyc: Scott Al is the Dallas-Ft worth king.
scottdallas: Pier and Beam. A little crack to pier repair
Mike_Summey: Hi Penny
Penny: Hi Mike
elba_nyc: rather spoke person.
scottdallas: Any idea how to get ahold of al?
scottdallas: Oh – he is here! YAE
sandy: DaveNRichmond, Try advertising on Craigslist.org
Rob_FL: I have a rental property owned free and clear. Do you recommend that I refinance it to buy another property or use a heloc from it to buy another property?
Al_Lee: Scott, I think that foundatn problems can be a great opportunity for an investor. Owner-occupiers are reluctant to buy a house with a foundation problem, so you can buy it cheap. Fixing the problem is often not more than a few thousand dollars and tenants don’t give a hoot about a history of fourndatin problems.
DaveNrichmond: I tried that recently Sandy…havn’t gotten any response.
Al_Lee: Well, I am in Dallas and most of my proeprties ar in the Dallas/Fort Worth area
raleighbound: Thanks larrync
scottdallas: AL – Can we talk? I would love to meet you and bounce ideas off of you!! Maybe even take care of Din-Din?
sandy: DaveNRichmond: Bummer, I’d rent if I lived there. I’m looking here in socal
Roger_Dawson: Rob,with a paid off property you’re secure, but you’ve lost the advantage of leverage. Put a loan on it and buy more property.
Al_Lee: Foundation problems can be anywhere form $1000 to $50000 to fix, you need to know what type of problems.
elba_nyc: Al and this chat are the reason we started to invest in Dallas. MY family lives thers
DaveNrichmond: I am certain I will get the placed filled eventually, it’s just that I am the one who was the driving force between my partner and I starting this thing up.
Doug_in_CT: We had a vacancy in our apartment and my new agency tenant loved the downstairs apartment. I told them I would hold the upstairs appartment for them just in case they were interested. And sure enough a month went by, I didn’t follow up on a couple of people who were interested and the agency came to me saying they needed the upstairs too. I was estatic!
elba_nyc: there
Mike_Summey: Scott, I once bought a 6 unit building that had been condemned because the foundation had broken. I was able to buy the building for $25,0000. I hired a house moving company to jack the entire structure up off of the foundation, then tore it out, found the problem and fixed it and then sat the building back down on the new foundation. The whole operation was done for less than $15,000. Today, the building appraised for over $300,000 and each unit rents for $725 per month. It just all depends on what you want to do.
Mike_Summey: Hi m&e
Al_Lee: Scott, if you will go to my website and click an “emal Al” button, we will be talking. Go to www.RentHouses.org and lok for the button to email me.
scottdallas: holly cow!!!
elba_nyc: Wow Mike.
Rob_FL: Roger, with that money from refinancing it at 65% ltv, for example, would you recommending using that money to put 20% on another property (assuming all the numbers work and it cash flows)? Or would you still try for nothing down as much as possible…
scottdallas: You got it Al!!
Al_Lee: Scott, do you live in Dallas?
Roger_Dawson: Rob, I’m borrow enough on the property that you still generated a little cash flow and use the proceeds of the loan to buy another property.
Al_Lee: Hello, Roger. Haven;t talked to you in a while.
Mike_Summey: For those of you with several properties financed, you may want to periodically refinance some of them back up to the original loan amount and pay off some others. Then you have properties owned free and clear and that opens up all kinds of possibilities.
Mike_Summey: Hi Darrell, Welcome to the chat.
scottdallas: Thats the other thing Mike – I have managed apart complexs before and thought I might be ready to start with multi unit. Taking your advice though with single family first. My thought was that I could diversify the cost if one person moved out – it wouldnt be a 100% vacancy. Feel strong still about starting with single family?
scottdallas: Al – Yes I do!
EDDIE-NC: Hey Darrell, you finally made it
Al_Lee: elba, we has all that for you
Roger_Dawson: Al, I’ve been in Kuwait teaching Arabs how to negotiate.
DaveNrichmond: Mike…please elaborate on those posibilites
Mike_Summey: Scott, I always recommend starting with single family houses.
Al_Lee: Roger, I think those Arabs are pretty good at it after 5,000 years, don;t you?
scottdallas: Cool.
Doug_in_CT: I had a good discussion with the fellow who holds the note on the four plex we own. I explained the idea of “substitution of collateral” to him and showed him pictures of the single family houses we own. I asked if he would be willing to consider the concept and he said he would have no problem with it conceptually. He noted that loans in second position usually have a higher interest rate than those in first, and I agreed, details to be worked out later.
Roger_Dawson: Al, I told them to dress like a Jew and think like an Arab!
darrelllewis: hey eddie
Mike_Summey: Hi lnlizer, I think you just logged out and back in so someone would talk to you. 
Al_Lee: Scott Yes, I am on 660 AM every Sunday at 2pm. I also record the shows and post them to my webstie for free listening. It is called Streaming Audio
scottdallas: I have a show there as well. Sats at 8am,
Al_Lee: Roger, that is what the suicide bombers do, isn;t it?
scottdallas: I have been following your podcast. Its on my to-do to get through all of them!
Mike_Summey: scott, what type show do you have?
elba_nyc: Scott, it will be worth every minute you spend on it.
Al_Lee: Scott, what station?
scottdallas: I had my own business strategy show – now I co-host with stock brokers. And investment show – but not real estate
scottdallas: 660 – ksky
scottdallas: ation Al
Al_Lee: elba, you have already earned your $5 for giving me compliments, You don;t need to go on like that.
elba_nyc: Its a small world fellas.
scottdallas: Same station Al !
Mike_Summey: Al, I’ve been asked to be a regular contributor on The Frankie Boyer Show from Boston. I’ll be on the first Monday of each month at 12:30PM Eastern.
Al_Lee: Scott, we are on the same station, different days.
DaveNrichmond: Mike. what kind of opportunites can owning full out offer you?
scottdallas: yes!
lanlizer: Hi Mike read both books and reading for the second time. No my apple went blank. In Dec I wrote down every penny I spent-eye opener.
scottdallas: I used to have a slot on Sundays at 4pm. Now Sats at 8am.
scottdallas: cool!
Doug_in_CT: How did it go today Mike? I was at a customers or i would have webbed you in.
Al_Lee: Mike, that is terrific. It is great exposure and you are a good talker and know you stuff. It will be good for you .
Al_Lee: Scott, what is the name of your show?
elba_nyc: No Mike I work at that time.
Al_Lee: Scott, do you deal with Bob Johnson?
Roger_Dawson: Dave, when you buy from people who own their house free and clear, you can sometimes get them to take back a note on the other property you already own. Now you’ve got the new property free and clear to refinance.
Mike_Summey: Dave, when you own properties free and clear, you can always finance more on the than you can if you are purchasing. When you find a deal, you can get a loan on the property you already own, pay cash for the new property, still have a free and clear property and often get 100% financing. Is that enough reason?
Al_Lee: Scott, I have been prodding ksky to host an investor event like krld does with Kiyosaki. I would like different viewpoints all presented.
Al_Lee: I haven;t listened to klif in a long time.
Mike_Summey: Doug, it was a good show. We discussed how a little saving can go a long way.
Mike_Summey: justin
Mike_Summey: Hi justin
DaveNrichmond: Yes. That’s what we’ve been working toward. We bought our first property outright…..then got loan for a second. Didn’t work out quite the way I wanted it too. but I definately got educated
DaveNrichmond: I got in a hurry and should have been patient
Al_Lee: Scott, definitely. We might schedule an event ourselves.
Mike_Summey: Being Impatient is the #1 mistake new investors make. Read Chapter 40 in our Real Estate book.
elba_nyc: Gents. Is there any benefit in paying a property early?
Mike_Summey: elba, the sooner you pay off a property, the sooner you get to keep all the money. Is that a benefit?
DaveNrichmond: Mike, I can’t keeep up with the books you guys are cranking out, even though I know they are superb.
DaveNrichmond: still trying to finish mindset.
Roger_Dawson: Dave, if you think that reading them is tough, try writing them.
Al_Lee: Scott, let’s discuss doing an event ourselves.
Mike_Summey: Dave, we have a new one being released later this month. It is “Weekend Millionaire Real Estate faq” and it has more detailed answers to many of the questions we have answered here in the chats.
sandy: Mike, I am still struggling with age and low pay (even though I am supposedly a professional. I have just about enough money to buy one house. But assuming a cash flow of $100 (example), I can’t buy another for quite some time. And by the time this house is paid for, I’ll be 85 (if I am lucky). Is this the best decision to park my lonesome little money?
Roger_Dawson: Sandy in only five years your cash flow could be $1000 a month because of rent increases.
Rob_FL: Mike, in your last response to Dave, if you buy the second property free and clear using the money from the first property, when do you buy the third property using that money within the properties?
Mike_Summey: sandy, don’t get discouraged. Each purchase will get easier and those properties that barely break even in the beginning will gradually show better and better cash flow as the mortgages pay down and inflation pushes rent up.
elba_nyc: Yes, Yes, Yes, sandy. Just be patient.
Al_Lee: Scott, I will call you after the caht, if that is OK
Mike_Summey: Rob, if you finance one property and use the money to pay cash for another, it won’t be long before you can finance that property and buy a third that you will own free and clear.
m&e: Question – If you have a management company in place but a tenant vacates early, the management company finds another tenant and banks the owner for another 8% leasing commission, shouldn’t the management company eat the commission since they failed to find a tenant for the full year lease?
scottdallas: Mike – I am noticing that rents are much more than mortgage for a 15. What about going 20 or 30?
Doug_in_CT: Sandy, I think you will find after you get over the hump of the first one, that more investment property will come much easier. I was telling Mike that in the last three years we have been able to buy 7 of our 9 houses and buy a four plex. It starts to snowball fairly quickly if you will just get over the fear and jump in the pool.
sandy: Mike, It can only be one property until I win the lotto.
Rob_FL: Mike, you say “it won’t be long”, is that becuase the tenant is paying off the principle so that you are gaining more equity from the property?
Mike_Summey: m&e, the management company should only get a commission on what they collect. You aren’t paying them up front for the whole lease are you?
sandy: Roger, I can’t imagine giving rent increases that total $1000 in 5 years. (On the other hand, my apt. manager……)
Al_Lee: Mike, I think he is talkingabout the leasing fee of (usually) 75% of the first month;s rent
elba_nyc: Sandy start thinking about using Others Peoples Money. Not just yours.
Mike_Summey: sandy, what you learn from buying the first property will make buying the second much easier and each subsequent one will get still easier. See Doug’s response above.
Doug_in_CT: Hey Zert, what going up?
Mike_Summey: No Rob, it’s because you can borrow against the property you purchased that you now own free and clear.
Mike_Summey: Al, I don’t pay leasing fees. If a management company wants to chare that I find another one.
m&e: Mike and Al – Yes the first months rent is usually what the leasing commission comes out of. If a tenant vacates early, and another tenant is found I’m getting charged a new leasing commission
Mike_Summey: Hi zert, where ya been!
Doug_in_CT: When you are borrowing against the property that you own free and clear, What kind of LTV can you expect 80%, 90% or 100%?
sandy: Doug in CT” Thanks for that. The money will need to come from somewhere. That does seem to happen….the snowball effect. I just haven’t been able to project out how that will happen.
Roger_Dawson: Sandy, depends on your beginning rent. If you’re charging $2000 per month now and making $100 cash flow you could easily get the rent up to $2900 in five years.
Mike_Summey: Doug, you can often borrow 90-95% against a property you already own when you can only borrow 80% to buy the same property.
Mike_Summey: Hi shane
shane: Hey Mike
zert: hi everyoe
elba_nyc: Mike you didnt let me finish typing that. I was about to quote the book.
DaveNrichmond: I wish I could keep talking….gotta go pick up my kid.
zert: hi everyone, happy New Year!! having trouble logging in tonight
DaveNrichmond: Roger, Mike. Thanks as always.
Mike_Summey: What’s that elba? I missed it.
Roger_Dawson: Good night, Dave
Mike_Summey: Got to be quick elba.
elba_nyc: hi zert
Mike_Summey: I think 2006 is going to be the start of great time for people who invest the Weekend Millionaire way.
elba_nyc: Alleluyah.
Mike_Summey: the higher rates have taken a lot of buyers out of the market and with fewer people to buy you are going to see properties sitting on the market longer and sellers becoming more flexible.
Doug_in_CT: 2006 is going to be good because, more deals will be available? or rents will be going up? or what exactly?
Josh: Mike & Roger, when do you determine if a property is costing too much and you should sell it?
scottdallas: Josh – good Q!!
Mike_Summey: This will be my third or fourth cycle like this and I’ve always done best when the speculators do the worst.
elba_nyc: When people cant buy they rent. Isnt that right?
Roger_Dawson: Josh, the only situation that comes to mind is if the neighborhood is declining.
Al_Lee: Dallas/Fort Worth apartments have seen a meteoric rise in occupancy recently because of higher interest rates and also Katrina. They leased 22000 more apartments in 2005 and only 8000 were built
m&e: I’m charged 6% of the rent per month for management. I also pay a leasing commission of 8% of the total lease which comes out of the first month;s rent. Is this common?
Mike_Summey: Josh, if you buy it right to start with, you shouldn’t have that problem. I’ve been buying since 1972 and I’ve never sold a property.
Mike_Summey: m&e, the 6% is good, but the 8% leasing fee is not.
Roger_Dawson: That’s right Elba, the last few years have been tough for landlords because buying was so easy. It’s getting better for landlords now.
Josh: I just read your book for the first time 1 week ago and did not understand the Millionaire way when I bought the property 3 yrs ago…trying to decide if it’s worth it to hold..
Mike_Summey: Josh, are you currently experiencing negative cash flow and is so, how much?
Roger_Dawson: Josh, if it’s in a good area, hang onto it. If you own a foreflex in Beverly Hills you should suffer the negative and hang on.
Al_Lee: m&e, that 8% soudns pretty high. If they get a 2-year lease it is nearly 2 months rent.
Josh: Right now $100 negative and at times it has been as high as $400
Roger_Dawson: Fourples, I meant, that was a Fraudian slip.
Josh: IN Utah, student rental
Mike_Summey: Josh, how much are you paying down in principal each month?
Rob_FL: Mike, what kinds of offers will your offer software help you make? Does it mainly calculate NOI and stuff like that based on various factors or can it calculate lease options, rehab properties, etc.
Josh: About $150 in principal
Mike_Summey: rob, it will calculate the NOI and then walk you through how to create hundreds of offer that will work with the noi. It doesn’t calculate lease options or rehab deals.
Mike_Summey: Hi hypnotx
scottdallas: Is it like the sheets tool kit?
hypnotx: hello, Mike!
elba_nyc: is it done Mike? the software.
Roger_Dawson: Scott, ours takes you right down to printing out the offer for you.
Mike_Summey: Josh if you’re paying it off at $150 per month and have $100 negative cash flow, I’d try to hang on to it until rents rise enough to make it break even. After all, the negative cash flow is going toward paying off the loan. That’s sort of like taking money out of one pocket and putting in the other.
BozoB: Hello?
Mike_Summey: Hi Bozo, Welcome to the chat.
BozoB: in time?
Roger_Dawson: Hi Bozo
BozoB: Hey Mr. Summey:D
elba_nyc: hello
BozoB: Hey Mr. Dawson
raleighbound: hi Bozo
Rob_FL: Is it safe to say that the ‘weekend millionaire way’ excludes use of lease options, subject to’s, and ugly properties with lots of rehabs?
BozoB: Aloha everyone
tom@tomchristinat.com: Thank you for inviting me/although I am new to this I think your books and work are honest and real. I will enjoy chatting again in the future. Happy New Year to all/ Thank you
Mike_Summey: Bozo, you’re late, but we’ll let you stay anyway. Glad to have you.
BozoB: how late am I?
Roger_Dawson: Lease options are fine as long as you’ll have cash flow and the price is agreed upon up front.
Mike_Summey: Goodnight Tom. I hope you join us again next week.
raleighbound: good nite Bozo
BozoB: aloha 
m&e: What would be an acceptable leasing commission to pay to a management company? Here in New York that is.
Josh: Ok, thanks Mike and Roger, it answers my question for now
Doug_in_CT: Yeah Josh, if you can squeeze another hundred a month out of the property on your next lease negotiation you will be feeling much better, then next time another $100, and then next time another $100 and soon you will be saying, “Boy am I glad I listed to those two Wiz’s on the Weekend Millionaire chat!
BozoB: lol
Roger_Dawson: Hi Elba, get Secrets of Power Negotiating by Roger Dawson.
Mike_Summey: m&e, I don’t know about New York, but I don’t pay any leasing commission in NC and I’d rather pay a little higher management fee with no leasing fee and let the management company get paid when I get paid.
Al_Lee: Mike, Do you worry that if there is no leasing fee the management company will be reluctant to spend money fo rcommissons, advertising, etc to get your property leased quickly?
zert: what are some advantages/disadvantages to using Section 8 tenantS?
Al_Lee: zert, the Section 8 payments never bounce and are never late
Mike_Summey: Al, if they don’t lease it they get nothing. What would you do?
Roger_Dawson: Zert, the advantage is you’re getting your rent from the government. Bad news is they’re not the greates tenants in the world and will probably leave the place in a mess.
Al_Lee: elbe, Good night. I will besigning off very soon, too
Al_Lee: Scott, I will call you in a few minutes. I have to tend to one quick errand now.
elba_nyc: Good Nite everyone my baby is tired. Are we meeting next week?
Al_Lee: Goodnight, Mike, Roger, everyone
hypnotx: Just in case it’s getting toward the end of the night’s chat… and I realize that it’s been a weeks, but… I want to thank you guys for the info before I went to the Learning Annex’s Chicago RE Expo. What you guys shared was both very helpful and completely…. ummm… true!!!
Mike_Summey: By paying the management company as the rents come in, they have more incentive to keep the propety rented and to procure better tenants. If they get a leasing fee up front, they don’t care if they put in a tenant that skips out after 2-3 months. Then they get to earn another leasing fee.
Roger_Dawson: Good night Al. Yes, we’ll be here next week.
m&e: Yeah I know what your saying. I view the commission as the screening, credit check, background work I used to do which is worth something. My point is though if the tenant fails to fulfill the lease I should not be charged for the process again for the new tenant.
elba_nyc: Thank you.
Roger_Dawson: That’s good to know hypnotx
Mike_Summey: Thanks hypnotx! What was your experience like? If you want to share it!
hypnotx: Yeah, I’d love to! Two days of high pressure BS, peppered with some very good presentations by a couple speakers (who didn’t have anything to sign up for in the next 14 minutes or else be doomed to a life of desperation living on a refuse pile!!)
Mike_Summey: m&e, my managers charge the prospective tenant a fee to cover the credit checks, etc. When a tenant isn’t willing to pay a processing fee that’s usually all you need to know.
m&e: Thats the truth
Mike_Summey: Goodnight Scott. See you next week.
hypnotx: Some of those guys just make my skin crawl… and it was amazing to see the unadulterated hype by some of the speakers and presenters.
Roger_Dawson: I need to run folks. Good chat. See you next week.
darrelllewis: later
hypnotx: What I was really suprised by was how so many people got up and left while Trump was speaking.
hypnotx: or did you just want to know how the lunches were?!?!?
raleighbound: Bye Roger,thanks
Mike_Summey: hypnotx, my one claim to fame is the fact that when I spoke at the first Learning Annex event in New York (my last I might add) my room was standing room only when Trump’s was only about half full.
hypnotx: After reading your first book… and hearing his “wisdom” I don’t doubt that statement one bit!!!!
Doug_in_CT: But what size was the room?
zert: ouch
Mike_Summey: Doug, you’re not supposed to ask that. Now you’ve popped my bubble.
Doug_in_CT: I was there.
hypnotx: Who really impressed me was Tony Robbins… which isn’t surprising… but he wasn’t selling anything.
Mike_Summey: I know!
Mike_Summey: What was you take on that event?
Mike_Summey: Tony is one of the most dynamic speakers I’ve ever heard.
hypnotx: I should add that I’m not opposed to people selling or offering products, but this was more a desperate and slimy hyped up mess than anything i’ve ever seen!
Doug_in_CT: Similar to yours, a little zooy. But I did get to met you and and see your presentation and I was impressed.
Mike_Summey: As I said, I spoke at the first one and I son’t speak at another one.
hypnotx: I’d only go back if it were very close, and I went in, saw a couple of specific speakers, and then took off before I felt like I needed a shower!
BozoB: Wow, are there any beginners here?
BozoB: besides me?
BozoB: haha
Mike_Summey: We’re all beginners Bozo. Some of us just fake it better than others. Just jump in and don’t worry about it.
BozoB: hahaha
hypnotx: Only bad question is the one you wish you would have asked 45 minutes from now!!
BozoB:
BozoB: very nice my friend
Mike_Summey: I’m going to have to call it a night also. This was a good chat. I thank everyone for participating and I’ll see you here next week.
hypnotx: Thanks again, Mike!! and all!
BozoB: good night
Mike_Summey: Goodnight all!
BozoB: A Hui Hou
Doug_in_CT: Good night Mike, Thanks again! see you in the eithernet again soon.
shane: Good night Mike
zert: Doug_in_CT what has been goinG ON?
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