Chat 1-16-05 (with Carleton Sheets)
Posted on January 16, 2006
Carleton_Sheets: Hello everyone
Ralph_Roberts: hi Bob, Carlton!
BobJ(Md): greetings
Ralph_Roberts: hi elba
Ralph_Roberts: there’s Mike Summey
billerb: hi mike. hi carleton.
Mike_Summey: Hello everyone!
Carleton_Sheets: Hello Bob, Elba, Billerb, Mike
Mike_Summey: Hi Bob
billerb: I have a quick question/s for you both.
BobJ(Md): Greetings
Carleton_Sheets: Where are all of you from?
Mike_Summey: Hi KMC
billerb: Ii am from Los Angeles
BobJ(Md): Frederick, MD
kmc90: ct
Bob_Carr: Hi Mike,Carleton
Carleton_Sheets: Elba, I’m so glad
billerb: I am a recent fan of your books.
elba_NY: Hello everyone
Mike_Summey: Carleton, thanks for joining us. Roger couldn’t make it
tonight and I’m sure everyone is glad to see you.
Mike_Summey: i Eddie
elba_NY: New York
EDDIE-NC: Hey everyone
billerb: Mike: I have been purchasing properties in other states, b/c as
you know, it’s hard to cash flow in SoCal.
Mike_Summey: Hi TT, haven’t seen you for a while.
Carleton_Sheets: Thanks for asking me. It’s always a pleasure altho I
have a commitment and am gong to have to leave in about 30 minutes
billerb: How does one find the deals and negotiate, Weekend
Millionaire-style?
TT: Thanks, been busy!!
elba_NY: Read the Book/s
Mike_Summey: billerb, you’re right. Souther Cal is a tough place to make
the numbers work. You may have to look a little further out, maybe even into AZ
Mike_Summey: Hi Ken
billerb: I’m not there to negotiate with the sellers.
elba_NY: They are a great start and guide.
billerb: I have to rely on the agents with which I have relationships, in
TN, TX, KS and OK.
Mike_Summey: billerb, you have to make offer that will work for you and
then be paitent and wait until one is accepted.
Carleton_Sheets: Believe it or not billerb, I talked to one of my
students who is investing in Watts and it’s working out well for him.
EDDIE-NC: Hey Carlton, glad to see you on. This gives me a chance to
thank you. My wife and I purchased your course a little over four years ago and
it’s been great!
billerb: The homes (5) that I have purchased to work - I have cash flow
of $100-$300 per month (noi - after ALL expenses) - but I feel I am paying fmv,
or close to it.
Carleton_Sheets: That’s great to hear Eddie.
Mike_Summey: Bob C, thanks for testing the Offer Generator program. Do
you think it will help people who are having problems trying to figure out how
to make offers?
Carleton_Sheets: Where in NC are you?
Mike_Summey: billerb, if they are cash flowing at all when you first buy
them, just be patient. The longer you own them the wider the margin will become.
EDDIE-NC: Eastern NC. Greenville
Carleton_Sheets: Believe it or not, I know Greenville pretty well.
Mike_Summey: elba, the program will be ready for release within the next
couple of weeks.
Mike_Summey: Hi Theo
Bob_Carr: Mike,you better beleif it with all the dofferent ways you can
present an offer ! It gets youy thinking.
Carleton_Sheets: Hello Theo from SC
Theo_SC: Hi Mike & all
billerb: It’s just when I read your book (and others) I always hear -
“you make $ on the buy”. I don’t feel like I’m left with any
substantial equity when I close. The numbers do work, and my strategy is
buy/hold.
TT: Mike, I am negotiating for a HUD property in Hendersonville,NC. Do
you have any investments in Hendersonville?
billerb: But I feel I am buying at market value.
kmc90: are you guys going to be speaking in ct or ny anytime soon
billerb: And it’s too difficult to negotiate for the creative deal from
afar.
Mike_Summey: billerb, many of my properties only broke even in the
beginning. Today, about 70% are paid off and the cash flow is quite good.
Carleton_Sheets: When we say make money on the “buy”, that can
refer to equity, cash flow or tax savings.
Mike_Summey: Hi Tom.
BobJ(Md): billerb - you often buy rentals at market, but they get better
over time - that’s why they’re a get-rich-slow approach
Theo_SC: Hi Carleton
EDDIE-NC: yea, Carlton I now have 13 sf and a 26 unit apt. I just rented
out my last and now have 100% occupancy
Carleton_Sheets: KMC 90…not me.
Mike_Summey: Hi Penny
billerb: OK - now i don’t feel so bad. 
BobJ(Md): just hope the rents would increase as fast as fuel and
insurance have
Penny: Hi Mike
billerb: Mike: thanks so much for your books. I have both and am 3/4 and
1/4 thru them.
Carleton_Sheets: Hello Penny. Congratulations Eddie-NC
billerb: I appreciate your candid approach.
Mike_Summey: BobJ, the rents and prices seem to run in cycles that are
contrary to each other. When prices are shooting up, rents are slow and vice
versa.
Penny: Hi Carleton, nice surprise tonight
elba_NY: I’ll be right back.
billerb: Much of what you have written I have already experienced, which
for me, lends a lot of credibility to the rest of the material.
Ralph_Roberts: hi Penny!
Penny: Hi Ralph & Happy New Year!
Mike_Summey: Theo, have you teste the program yet?
Bob_Carr: Happy New Year Penny
Theo_SC: I wasn’t expecting Carlton in here tonight
Mike_Summey: Surprise! Surprise!
Carleton_Sheets: Theo…have you ever heard of a twisted arm?
BobJ(Md): mike - we’re seeing single-family home prices shoot up and
rental rates stagnating - the rental stock is decreasing here
Penny: Ditto Bob. Hope it is off to a good start for you.
Mike_Summey: Hi justin
Mike_Summey: As the interest rates are rising, fewer and fewer people are
going to be able to buy and that will mena more renters and higer rental rates.
BobJ(Md): i sure hope so
Theo_SC: Mike…I have been using the program & it’s great.
BobJ(Md): but i hope the market stays strong until i get done with a few
of our rehabs
billerb: any thoughts anyone on units vs. sfrs
Mike_Summey: Theo, you need to send us your comments soon in an email.
ken: heating prices are making it hard to rent one of my properties
Theo_SC: Carleton…What is a twisted arm
Mike_Summey: ken, what type of heat is it?
ken: natural gas
Mike_Summey: Hi Al
Carleton_Sheets: I bought a bunch of condos in my So Florida market from
1998 to 2004. Many were rented for 475-500 a month. As the rental stock went
down, rents went up. Am now getting $7-800 a month for a 475 Sq. foot efficiency
apartment
Al_Lee: Hi, Mike. Hi everyone
Ralph_Roberts: hiya, Al!
Al_Lee: Hi, Ralph.
BobJ(Md): we’ve seen rental prices go up, but not nearly as fast as home
prices
elba_NY: okay, im back.
elba_NY: Hi Al.
Mike_Summey: ken, heating is a problem for everyone. Where is someone
going to rent that they don’t have to pay for heat.
Mike_Summey: Hi JC
Theo_SC: Mike…I think that everyone must get “The Offer
Generator” it makes putting together offers nice & simple, I love it.
Carleton_Sheets: Theo…just kidding. My dear friend Mike asked me to
join tonight even tho I have company and did a little arm twisting.
Al_Lee: I am a little late because I have been putting out fires. I have
a lot of transactins in process and I have never yet seen a real estate deal
that goes exactly as intended. There are alwasy bumps in the road.
jcbatton: hey mike
Al_Lee: Hi, Elba
Al_Lee: Elba, I might be the only one here who has ever heard your voice.
Mike_Summey: Carleton will only be able to stay with us a short
while…unless he get excited…so if you have anything for him, you’d better
ask quickly.
Bob_Carr: Ken,how about the first month free gas with a signed one year
agreement
BobJ(Md): i’d be interested to know how the markets are behaving in
different areas
Al_Lee: Elba, we will have that show on the webstie in a day or two. Then
you will be immortalized.
BobJ(Md): they’re slow here but prices are still holding
Theo_SC: Mike, I have been send out 4-5 offers, is that enough?
kmc90: where are rentals ken
Carleton_Sheets: Bob_Carr….clever idea.
Mike_Summey: Theo, is that a day, week, month…?
Theo_SC: a week
Carleton_Sheets: Al, I’ve been meaning to call and just continually
jammed. Don’t give up on me.
tom@tomchristinat.com: what does one do when sfh prices have gotten so
high no rents could support the mortgage/is that market out for the begining
investor
Al_Lee: Hi, Carleton. I’d sure liek to immortalize you on a radio program
*beep*
ken: A budget plan for the home heating is $168 and i read in the paper
the rates are going up. never thought of giveing free heat for month
Theo_SC: today I send out 4 offers to separate sellers
ken: Johnstown PA
Carleton_Sheets: Tom, make offer where the rents will support or just be
patient in your market or find another close by market that works.
jcbatton: I have a question…i am just getting into investing…is it
better to do 100% financing or should i pull money out of my IRA or equity out
of my home for a down payment
Bob_Carr: Ken,your ad would stand out this time of year
BobJ(Md): When SFH prices are too high, you have to hunt for deals -
we’re starting to rehab and hold - building in our equity so they’ll cash flow
Al_Lee: Carleton, I wouel never give up on you. Having you on my show
might class it up a bit–like Roger did!
Mike_Summey: tom, believe it or not, I’ve bought sfh’s at 60-70% of
appraised value even in hot market conditions. You never know what sellers will
do until you put an offer in front of them.
ken: yes it would, thanks for the tip
tom@tomchristinat.com: How far away is to far
Al_Lee: I had to say that in case Roger reads the transcript
Carleton_Sheets: jcb, there is nothing wrong with using an asset like
your IRA but on the other hand, if you caqn buy NMD and the investment works,
then do it.
BobJ(Md): jcbatton - i’m a believer in using as much financing as
possible and conserving my working capital for emergencies
BobJ(Md): you just have to make sure you’re not paying too much
Mike_Summey: jc, it doesn’t make any difference how you put a deal
together so long as it cash flows and gives you a return on the cash you put in.
Mike_Summey: Hi Steve
BobJ(Md): mike - how about a couple words about the importance of having
working capital
Theo_SC: What would you recommend for rent increases?
EDDIE-NC: Mike, it seems my area is really a hot spot for rentals. I
can’t seem to find them qucik enough for individuals ready to rent. Is that way
in the western part of the state
Theo_SC: I got 2 coming up next month
BobJ(Md): NMD can be dangerous if you get overextended
Al_Lee: Yeah, you coudl lose everything you have invested
elba_NY: hello jp
Carleton_Sheets: Theo, if the market is not tight, then a nusance raise
of up to $19 a month (in my opinion) will work. In a very tight market, you
might go as high as $30-50.
Theo_SC: Mike…have u been getting a lot of feed back on the program?
Mike_Summey: BobJ, I beleive in keeping at least 3-6 months of expenses,
including loan payments, in cash reserves. If I have to, I’ll pull money out of
a property and pay a higher interest on it than what I earn on deposits in order
to do that.
ken: I’m ordering the FAQ book on amazon now,can anyone recomend another
book to purchase?
Theo_SC: great…thx Carleton
Mike_Summey: Eddie, the rental market is coming back very strong in the
last few months.
Mike_Summey: Hi JP
JP-Dallas: Hi Mike…I am a newbie and would like to know what is the
best way to get started investing?
elba_NY: JP, were is Dallas are you from?
Carleton_Sheets: Thanks to hurricanes and many many condo conversions, we
have a very tight rental market here in South Florida.
Mike_Summey: Theo, yes! There will be a new version incorporating all the
changes available in the next couple of days. You’ll get notified when it is
available.
JP-Dallas: north part of the area
kmc90: my friens and i are all contractors plumer, carpenter, and
electrician. we were thinking of trying our hand at flipping a property. are
there mortgages available with better short term rates
Theo_SC: Carleton…I was thinking about $20 which is about 3%
BobJ(Md): Carleton - is insurance going thru the roof down there?
Carleton_Sheets: JP_Dallas, get my course and read both of Mike’s books.
kmc90: should we strat an llc for taxes purposes
Mike_Summey: kma, sorry but I can’t help you with advice on flipping.
I’ve never sold a property.
Al_Lee: JP_Dallas, adn my book
JP-Dallas: Hi Carlton its nice to “meet” you.
Carleton_Sheets: Theo, yes it (insurance)is.
Theo_SC: Mike…how many offers would u recommend making to 1 seller?
JP-Dallas: is rental or flipping the quickets and easiest way to get
started?
Carleton_Sheets: Thanks JP and Al….sorry. I agree
Mike_Summey: Theo, it all depends on how much you know about the seller’s
situation. If you know nothing, I’d recommend making two in the beginning. One
at a low price for cash and one at a high price with very favorable terms. See
which one the seller responds to and that will give you a good idea on how to
counter.
JP-Dallas: Carlton, my dad got one of your courses way back in the late
80’s and early 90’s. I read it from cover to cover back then, but never made a
deal yet.
JP-Dallas: I must have some fear or mental block to actually doing a
deal.
EDDIE-NC: Mike,Carlton, do you think other insurance companies will
follow suit with Alstate in raising insurance rates in hurricane prone areas.
They announced that they were doing this last week
BobJ(Md): JP - fliping is good way to get your feet wet with low risk and
no money
Al_Lee: Elba, GOsh, you must not have heard the commercials. That’s OK, I
don;t listen to them either. The book is “Income for Life-from Real Esate
” How the Tortoise Got Rich” and you can buy it on Amazon or at my
webstie www.myRentProperty.com
Carleton_Sheets: JP, my opinion, own to rent first then try flipping if
you want. By the way, you, along with Houston have the last great investor’s
market in the country. It won’t last forever.
JP-Dallas: thanks Bob
Carleton_Sheets: JP The first on you do is the hardest!!!!!
Al_Lee: Elba, Yes. That is where the Tortoise club got its name.
JP-Dallas: really? what makes it so “great”
Mike_Summey: Hi Shane
Carleton_Sheets: Great because prices, relative to rents, are excellent.
Mike_Summey: JP, just don’t get discouraged. I once made 50 consecutive
offers that were turned down, but when I finally had one accepted, 6 of the next
10 were accepted.
Carleton_Sheets: Hello Shane. Where are you from?
Shane: Anchorage, Alaska
Al_Lee: JP, I live in Dallas and most of own properties are in Dallas, a
few in Fort Worth and other Texas cities. It is the best market in the country.
Mike_Summey: Carleton, Shane is about as far from you an one can get and
still be in the US
JP-Dallas: Carlton - so you feel buyng a rental property first is the
best way to go? I need to make some cash rather than waiting to build up equity
though.
Carleton_Sheets: I have been there may times and love your city but know
that prices are very high there too.
Theo_SC: Mike or Carleton…would u consider 8-9% for 100% financing too
high or if the deal make sense do it?
Shane: Yes, it is impossible (well, I’m sure Mike would correct me with
“nearly” impossible) to get decent cash flow here. One drawback to
living in God’s country.
JP-Dallas: Mike - Okay, I really want to give it another shot. Thanks
Carleton_Sheets: Just my opinion JP. I’m with Mike. Real estate is a
get-rich-slow process but oh how rich you can get.
Mike_Summey: Everyone, be sure to get our new book “Weekend
Millionaire Real Estate faq.” It will be released the end of this week.
Carleton_Sheets: Theo, will it cash flow at those numbers?
BobJ(Md): JP - looking back I would have preferred to have more money
before buying rentals - had to do a lot of repairs and ended up taking a 2nd
mortgage to pay for them
Theo_SC: yes, very little
JP-Dallas: Carlton - on your infomercials, you say investors can get
substantial cash in their pockets at the closing table> Is that still the
case?
Mike_Summey: Theo, if the numbers work, the rate is not that important.
You can always refinance a high rate loan after you own the property a few
months.
JP-Dallas: Enev when buying properties to fix up and rent?
Carleton_Sheets: I hate to leave but guests call. I really enjoy these
chats and all the provovative questions. Good luck everybody!
Bob_Carr: Theo you the man
JP-Dallas: BobJ, what part of MD are you in?
Al_Lee: So Long, Carleton.
elba_NY: thanks again Carleton, bye.
Mike_Summey: Goodnight Carleton, thanks for joining us.
BobJ(Md): about half-way between frederick and gettysburg, md
BobJ(Md): gettysburg, pa
Theo_SC: Mike…I thought so, just wanted to get conformation
Mike_Summey: Carleton has house guests and he joined me tonight when I
told him that Roger had called an wasn’t going to be able to make it.
Mike_Summey: Hi joe
JP-Dallas: BobJ…I grew up in the DC area. My mom used to live in
Hyattsville. Still have many friends there.
elba_NY: hello joe
BobJ(Md): we do most of our work over in hagerstown
Theo_SC: Hey Bob
kmc90: mike, would you consider paying more than for a property than
would fit into your formula if the property was close to one you already own in
order to build a “farm”
JP-Dallas: Mike, since Carlton had to leave, may I ask you…is it really
still possible to get cash at closing on a “rental” property?
ken: Hey bobj i’m 10 mins from hagerstown
JP-Dallas: In other words, I wouldn’t have to ‘live’ in it?
BobJ(Md): jp-i get cash back on most closings - by overfinancing
Mike_Summey: kmc, I try to never pay more than the numbers will justify.
With that said, if a purchase would enhance another and result in higher rents
for both I might consider it.
Bob_Carr: Theo,you can always convert it later,but putting a postive deal
together now ……
BobJ(Md): i do mostly rehabs and use the cash as working capital - taking
equity up front to pay for the thing
BobJ(Md): ken - where at?
ken: Falling Waters WV
BobJ(Md): aha - just south
Mike_Summey: BobJ, doing rehabs and selling them is a job. Buying and
holding for the income is investing. There’s a big difference between the two.
ken: yes, I’ve had to locate homes in mid state PA, I’m just starting out
and the properties here are to rich for my blood
BobJ(Md): true - but there’s a difference between being the company and
owning the company - i don’t do the work
Mike_Summey: You can make money doing both, but with rehabs you have to
keep doing them to keep the money coming in.
BobJ(Md): absolutely - i rehab to raise cash, buy rentals to invest
JP-Dallas: Mike: So if I am going to buy & hold, do I simply search
for a house that the numbers will allow me to pull out cash at closing?
Mike_Summey: BobJ, I understand. That is a good strategy.
Mike_Summey: JP, I’m not sure I understand your question.
elba_NY: JP, sometime you can negotiate the numbers.
Theo_SC: Mike…with interest slowing, do u think that we will see more
buyer in the next few months. I seem to attract more renter no matter what.
BobJ(Md): jp- to pull cash out of a rental at closing (other than
security deposits and rents) you have to be creative
JP-Dallas: I very much want to “hold” rental property. But I
also want to be able to get deals that will let me get some cash at closing for
my pocket. Is that possible?
tom@tomchristinat.com: Mike at this time if I did not do rehabs I would
die waiting for investments to happen I would rather buy/hold but it’s nice to
eat as well
Peter: Hello
Peter: Hello Mike Roger and everyone in the chat room today
BobJ(Md): usually it involves combining financing - a first and a second
mortgage - and over financing - the difference goes to you at closing
elba_NY: hello peter
Peter: hi elba
Mike_Summey: Theo, as rates increase, you should find more deals and more
renters. We’re coming into a great time for people who invest the Weekend
Millionaire way.
kmc90: can anyone suggest a good website for searching for properties. I
have been using realtor.com for a while but was just curious
Mike_Summey: Hi Peter
elba_NY: Amen Mike
BobJ(Md): jp - the danger is that the more you finance, the higher your
holding costs - you gotta make sure the darn thing cash flows
Al_Lee: There is a massive, natinwide FBI crackdown on propel who have
been creative in overfinancing properties. I suggest you be cautious. Be sure
everythignyou do is on the u-and-up because they are sending peopel to jail
BobJ(Md): anything not disclosed to the seller and lender can be
construed as loan fraud - so you have to pick the right lenders
Theo_SC: great…I looking forward to a great year
BobJ(Md): i usually use a bank in the first position and owner or private
investor financing in second position
Mike_Summey: Al, our state legislature is considering some new laws
governing how middle men are compensated in real estate deals. Wrap around and
subject to deals are going to be very difficult if it passes.
JP-Dallas: Al_Lee: Hello…I sent you an e-mail a couple of weeks ago.
How goes?
Mike_Summey: Hi Jeff
Peter: Al what is that crackdown about
elba_NY: hello jeff
jeff: hello
Mike_Summey: BobJ, a great strategy I use is to get a small bank first
and a larger seller second when possible. You can often make no money down deals
by doing this and still make the nimbers work.
Peter: Al what kind of loans frauds people usually get into?
BobJ(Md): mike - exactly true - especially since sellers often give
below-market interest on the second
BobJ(Md): i’m doing that on 2 properties in PA right now
Mike_Summey: BobJ, I have several seller loans at 0% interest.
ken: Mike or anyone, i own 2 properties free and clear, are there any
good ways to refinance the properties together so i didn’t have 2 seperate
payments?
BobJ(Md): i didn’t do that good - 5.5%
Al_Lee: Sorry, I had to leave for a few minutes.
BobJ(Md): but the bank’s in at 6%
EDDIE-NC: Mike, not to sound dumb, but what are seller loans
elba_NY: 11.5% for the whole deal?
Mike_Summey: ken, don’t use blanket mortgages. Read Chapter 40 of our
real estate book. That’s one of the mistakes new investors make. Make each deal
stand alone. If you need the money from refinancing both, use two loans.
BobJ(Md): no - 55% of the deal is at 6%, the other 45% is a owner second
at 5.5%
Mike_Summey: Eddie, they are loans a seller takes back in lieu of cash
for all or part of the purchase price.
elba_NY: got it.
Al_Lee: The crackdown involves a lot of different types of fraud.
Inflated appraisals, fictional informatin on loan applications, misstating the
intended use of the property (second home, not rent house), fictitious invoices
due at closing, etc. etc.
BobJ(Md): blended rate is somewhere around 5.8%
EDDIE-NC: thanks
BobJ(Md): al - that’s loan fraud - pure and simple
Theo_SC: Mike…would u consider renting high upper scale properties?
& how would you treat them? or it depend on what type of tenants u rent too?
Al_Lee: JP, I don;t recall yoru email. What is yoru name. You can tell me
privately by right-clicking on my name in the name list a t the right side of
the screen.
Mike_Summey: Theo, read Chapter 40! That’s also one of the mistakes new
investors make. There are always great deals on high end properties, but they
very seldom make money as rentals. There just aren’t that many people who can
pay the hig rent needed to make the deals work.
Peter: thanks Al that explains
Al_Lee: Bob, Right! I am just saying to be careful not to draw attention
to yoruself with overly creative stuff
Theo_SC: ok…thx for the reminder
BobJ(Md): theo - and what happens if you’re faced with a month or two of
vacancy? those beasts are expensive
Al_Lee: John, You name now does sound familiar.
Theo_SC: u r right
BobJ(Md): Al - we do bread and butter financing with everything on the
table - no cute ”
BobJ(Md): “under the table” crap or side deals
Theo_SC: that why I enjoy this chat session
JP-Dallas: AL: We were supposed to get together a few months back.
Al_Lee: Bob, are you a mortgage broker?
BobJ(Md): nope - rehabber
Mike_Summey: I look for the coming year or two to be banner years for
long term investors.
JP-Dallas: checked out your web site the other day
BobJ(Md): i use money - not rent it out
Al_Lee: JP, what did you think?
Mike_Summey: JP, This website?
elba_NY: I think he means Al’s.
Peter: Mike what is a banner year?
JP-Dallas: Mike/AL: Checke out both of your web sites. Al: Lets me know
what you do, and what you’re looking for.
BobJ(Md): Al - actually, we’re rehabbing now - starting to build new
homes - long term strategy includes buy/hold rentals
Mike_Summey: Peter, that’s a year when we will find more and more good
deals. 1993 was a banner year for me. I bought 65 properties that year.
Theo_SC: I am excited
Peter: Alright good, I will get ready for next year by making some money
in stocks and read your book couple of more times
JP-Dallas: BobJ: I have heard of a few people around here getting into
the building new homes for the long-term strategy. I am interested in doing that
too.
Al_Lee: JP, are you asking me what I do and what I am looking for
Peter: how does that sound?
BobJ(Md): we’re going to put up a few modulars and see how that goes
Theo_SC: Mike…was this i transaction?
ken: Bob what about putting up 3 row homes (townhomes)
JP-Dallas: Al: No, I am letting you know that I checked out your web site
at your invitation last time we met here. I know what you do and what you’re
looking for.
kmc90: i recently bought a co-op to live in and fix to sell in about 2-3
years. i heard that i could not take equity out on a co-op. Is this true? if so,
how can i get started on investing or do i have to wait uuntil i sell.
Peter: Mike do you think further increase in interest rates will make
next year a banner year for us?
BobJ(Md): actually - the modular company we’re going to start with offers
some row-home plans
Mike_Summey: The years following a big run up in prices are usually good
ones for finding deals. Many people get in over their heads in all the
enthusiasm of a hot market and end up having to sell at a loss to people like me
when they can’t unload the properties to other buyers caught up in the hype.
Penny: goodnight everyone
ken: Bob have you thought about row homes? I was kicking that idea around
BobJ(Md): mike - i’m expecting the foreclosures and motivated sellers to
start reappearing in this market pretty soon
Peter: Mike you are absolutely right
Mike_Summey: Peter, the higher the interest rates get the easier it will
be to find deals that work with the rents. Higher rents limit the number of
buyers and this means more people are having to rent.
BobJ(Md): we’re rehabbing 3 rowhomes right now
Mike_Summey: Hi jlbburn
BobJ(Md): single family homes will sell better new
Mike_Summey: dnight Penny
jlbburn: hey Mike
Theo_SC: I like that
elba_NY: Mike did you mean rates?
Peter: Mike is your FAQ book out in the market yet?
Mike_Summey: elba, yes. Sorry
Peter: Yes I thikn he meant high rates limit the no of buyers. Right
Mike?
Mike_Summey: Peter, it is scheduled for release on Friday.
Peter: great..is amazon the best place to buy?
BobJ(Md): rates limit number of buyers, but also how much house qualified
buyers can afford
elba_NY: yeeeees.
Peter: Mike I have been waiting for it…good to know that it is coming
this Friday?
ken: I just purchased the book at amazon it ships around the 4th
Mike_Summey: Right bobj
BobJ(Md): big houses are stagnant in our markets right now -
Peter: I dont see Roger today…I read his power negotiating book. A
friend of mine was buying a used car it was nice to negotiate with him he was
using the same tactics
Mike_Summey: ken, that sounds about right. It leaves the printer on
Friday so by the time it gets to Amazon and gets shipped that’s probably about
right.
JP-Dallas: what price-range is best for rental properties?
Al_Lee: JP, stay below $2000/month
Mike_Summey: Peter, Roger is skiing this weekend…the dirty dog!
BozoB: hello?
BobJ(Md): jp - look in your paper to determine what the market will bear,
work backwards to find the property price for your area
Mike_Summey: Hi Bozo
BozoB: Hey Mike
Al_Lee: Even better, below $700/month
BozoB: te again
elba_NY: hello bozo
BozoB: sorry I’m late again
Al_Lee: I meant $1700.month, not $700
JP-Dallas: In Dallas area, it seems that bread & butter houses can be
rented at around $1k-$1600 per month. Al_Lee would probably know better about
that I guess.
BozoB: Aloha Elba
Peter: BozoB you joined at the end of chat
BozoB: again?!?!
BozoB: shoot
Peter: yeah
Al_Lee: JP, you learn quickly, Grasshopper.
Mike_Summey: Bozo, where are you?
BozoB: I live in Hawaii
BozoB: No, it is Aloha
Theo_SC: wow…Hawaii
Mike_Summey: OH! What’s the time difference from the East coast? 7-8
hours?
BozoB: Mahalo is Thank You
JP-Dallas: Bozo, I am jealous!!!!
BozoB: lol
Peter: JP under $600-1100 I woulds say are bread butter in that area
elba_NY: we both are JP
BozoB: don’t be, I miss things like this because of it 
Peter: Bozo no we miss Hawaii
JP-Dallas: yeah, but we miss a whole lot more!!!!
Mike_Summey: Well, we have FL, CA, TX, MD, AK, & HI represented. did
I miss any.
elba_NY: set an alarm clock.
Peter: you dont need to miss this
JP-Dallas: I would gladly take the exchange
BozoB: lol
Theo_SC: Yes, SC
Peter: yeah exchange works for me
tom@tomchristinat.com: MA
elba_NY: NY
BozoB: unfortunately, I work until 3:30 PM
Mike_Summey: Opps! Sorry Theo
Mike_Summey: You too Tom
BozoB: and I don’t get home until right about 3:50 or so
Mike_Summey: It looks like we’ve got the whole contry covered.
Theo_SC: Mike…r u going to speaking this year much?
Peter: Alaska? is any one from Alaska today?
elba_NY: we gotta love it.
BozoB: lol
Mike_Summey: Shane is from Alaska
Peter: wow
BozoB: nice
elba_NY: wow
BozoB: does anyone here own any homes in Hawaii?
JP-Dallas: Well, as I start to search for some deals in the Dallas area,
is there anyone willing to help me with a little mentoring “over the
shoulder”, just to give me a jump-start?
JP-Dallas: Bozo: I wish!!!
Peter: JP how about you let me know if you come across some deals there
Al_Lee: Well, gotta go tuck a kid in. Goodnight Mike, Elba, JP, Bob–you
too, Bob_Carr
tom@tomchristinat.com: Mike maybe you could pick us all up in the new
plane and show us 1st hand how to buy property?
Shane: My folks have bought a couple condos in Hawaii. Too rich for my
blood.
Mike_Summey: Theo, I don’t have any plans to speak much. I make my living
doing what I write about, not selling books and tapes and giving speeches.
elba_NY: Gnite Al
jlbburn: Dayton, Ohio…the foreclosure capital of the country
Ralph_Roberts: good nite, Al
JP-Dallas: Peter: Where are you?
Mike_Summey: Goodnight aL
Peter: I am in Bay Area, CA
BozoB: lol
Al_Lee: Night Ralph. Good job on the website and chat room
Ralph_Roberts: thanks
Peter: I would like to buy a prop in Dallas area
Theo_SC: Amen brother
JP-Dallas: Oh, okay. You can assist?
JP-Dallas: elba: really?
BozoB: Mike, I never got to say this the last time, but I love both of
the books that you and Robert put out
Mike_Summey: I’m going to have to check out also. I’m flying to FL
tomorrow to spend a few days with Carleton and then on to Orlando for annual
recurrent flight training.
JP-Dallas: Peter: would you private msg me your e-mail?
Peter: JP…not really we both are new
Ralph_Roberts: kmc90, I am webmaster of this site
JP-Dallas: Peter: are you thinking of doing a partner type thing or what?
Mike_Summey: Bozo, thanks so much. Would you post a review of thm on
Amazon.com?
BozoB: it would be an honor
Peter: nope discuss to know more about the area and buy properties
together
Mike_Summey: Thanks Bozo
Peter: JP what are you looking for?
Mike_Summey: Bozo, try to join us earlier next week if you can.
BozoB: I will be working on it
Theo_SC: Great chats tonight. See you next Monday.
Peter: elba great pm me your email id…we will be in touch and can
discuss our strategies
Mike_Summey: Goodnight all! Got to get packed and get some sleep.
BozoB: Goodnight Mike
JP-Dallas: Looking to do my first deal. In a quandry as to whether I
should build new const. or find a foreclosure to fix & rent or what?
Peter: is it Austin
Ralph_Roberts: chat transcript will be posted shortly, so you didn’t miss
anything, Bozo
Mike_Summey: Keep talking as long as you want.
Theo_SC: Be safe Mike.
BozoB: Goodnight everyone
Peter: try Kyle
BozoB: very nice
Ralph_Roberts: good night, all
BozoB: thanks Ralph
Peter: JP can u too pm your id
JP-Dallas: I also want to get some cash out at closing, so I can keeping
eating and paying my mtg.
BozoB: Aloha everyone
Peter: elba will send out an email to you
Peter: good night all
ken: yeah i got to jet to night
BobJ(Md): jp depends on your goals, experience and capability - that’s a
complicated question
Shane: Take care everyone.
» Filed Under Chat Transcripts
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