Chat 2-13-06
Posted on February 13, 2006
Theo_SC: hello guys
Theo_SC: hi Mike
Mike_Summey: Hello everyone
BozoB: hey
Theo_SC: hey
BozoB: whew, I thought I missed it
BozoB: Mike, how are you?
Mike_Summey: Bozo, you got the time right tonight.
Theo_SC: any special guess tonight?
BozoB: yay 
Mike_Summey: Theo, sorry, you’re going to have to get by with just me.
Mike_Summey: Hi Penny
Penny: Hi Mike
Mike_Summey: Dr Evil came and went in a hurry
Mike_Summey: Hi John
Penny: Looks like I’m really earlier tonight.
BozoB: lol
Penny: early
Theo_SC: you’re special Mike 
Mike_Summey: Penny, the early worm gets the bird…or is it the other way
around?
BozoB: haha
Mike_Summey: I’ve been off with one of my sons this afternoon looking at
a new mororcycle he is buying.
Penny: yep, other way around, but I gottcha
Bob_(vegas): grettings
Theo_SC: All I am hearing are the rates going up..any comments
BozoB: very nice
BozoB: f bike is it mike?
Mike_Summey: Theo, I’m afraid we’re in for another bump or two.
Bob_(vegas): is the software out yet???
Theo_SC: would you focus more terms?
Mike_Summey: Bozo, he’s buying a Honda 1300
BozoB: sweet!
Mike_Summey: Bob, I thought the software would be out by last weekend,
but we found another glitch in it and I just got the corrected version about an
hour ago to check out.
Mike_Summey: i Hank
Theo_SC: Mike…do you look more foe terms with highers rates or
price/terms combo?
hank777: hi
Bob_(vegas): Mike what is your opinion of new home purchase with a sub
loan on it to make the cash flow adding on the back end
Mike_Summey: Theo, the higher the rates go the more people will get in
trouble as adjustable rate loans start to creep up. This often results in
sellers willing to give up some equity to get out of payments they can’t make.
Theo_SC: Mike…I am reading the book…it’s very in-depth with the
answers. Good reference.
Mike_Summey: Hi Darrell, welcome to the chat.
Mike_Summey: Theo are you talking about the FAQ book?
Theo_SC: I was thinking about running some ads to address that
issue…what do you think? Yes, the FAQ book.
Al_Lee: Hi, Mike. Hi, all
Mike_Summey: Hi Al, I wondered if you were going to make it tonight.
Theo_SC: hey Al
Al_Lee: Better late than never! Right?
Theo_SC: Al…What do have tonight?
Theo_SC: Al…what do you have tonight?
Al_Lee: I have a big, heart-shaped box of flowers for everyone.
Mike_Summey: Theo, believe it or not, investing the Weekend Millionaire
way is always better when everyone else is hurting. I’ve made my best deals and
bought the most properties when real estate was in its biggest slumps.
Mike_Summey: Hi elba
elba_NY: good evening everyone
Al_Lee: I will have my cpa, who is an expert on real estate as my guest
on Sunday for the radio broadcast. This guy has saved me more money that I can
count.
Mike_Summey: Theeeeeerrrr’s Ralph!!!!
Ralph_Roberts: hi guys!
Al_Lee: Hi, Ralph.
Bob_(vegas): Mike care to share with the class tonight the number of
units aquired so far?
Penny: Hi Ralph!
Mike_Summey: Roger is sailing off the coast of Mexico today. Lucky dog!
Ralph_Roberts: hi Al, Penny!
elba_NY: Good one Al
Theo_SC: Al…do you have a Radio show?
john: Has anyone got a good buy in the last few weeks?
Penny: Yes, lucky dog, but I bet he’s thinking about us in the chat!
Al_Lee: Theo, yes, I do. Go to my webstie and you can listen live from
anywhere in the world as it is webcast.
Penny: yeh, right!
Theo_SC: what’s the url?
elba_NY: john, my first property 3wks ago.
Mike_Summey: Bob, when are you talking about? Last year when the market
was so hot was the first year in over 30 that I did not buy anything. Instead I
invested heavily in properties I already own.
Penny: congrats elba!
elba_NY: thanks Penny
Bob_(vegas): I was wondering…er grand total??
Al_Lee: The show is every Sunday at 2pm Central time. That is noon
Pacific, 3pm Eastern. Go to www.myRentProperty.com and click the lin that crawls
across the top of the page to listen live. You can also call in toll-free.
elba_NY: Im a tortoise weekend millionaire in the making.
Al_Lee: Elba is off to a good start, I think.
Theo_SC: thank, Al, I’ll check it out.
BozoB: sorry, had to go away for a bit
Mike_Summey: Bob, I have several hundred units, but they are not all
single family units. I also own several apartment buildings, a mobile home park,
commercial properties and other income properties.
BozoB: and Al
BozoB: Hi alba
elba_NY: I dont think Mike’s and Rogers advice along with Al’s would let
me fail.
Mike_Summey: elba, how did you find the deal?
BozoB: Elba
elba_NY: Hi Bozo
BozoB: sorry, fingers aren’t working with me
elba_NY: Researching the area Mike as you suggested.
Al_Lee: Hi, Bozo
Mike_Summey: elba, did you follow the guidance in our real estate book as
you were looking?
elba_NY: Absolutely.
Bob_(vegas): found a neat website…. www.zillow.com
Mike_Summey: Bob, that is a great site. I have it marked as one of my
favorites.
Penny: elba, how long did it take you to take the first step and just do
it!
Penny: ?
elba_NY: I even took the section on property managers and asked them the
questions the book suggested. Word by word.
Al_Lee: Zillow is always so busy you can;t get through, though. I was
going to put a link on my webstie to it, but I need to see soem better responses
frist.
Theo_SC: Mike…what types of things do you do to improve the rentals?
Mike_Summey: Hi chad
elba_NY: To actually jump in Penny, a couple of months.
Theo_SC: interior or exterior?
Al_Lee: Mike, what did you do to run Chat off?
Al_Lee: Chad
elba_NY: It was between Virginia beach VA and Dallas TX
Penny: great elba
elba_NY: Of course because of Al Dallas won.
Penny: Bob_vegas, whats zillow.com?
Al_Lee: Elba, I think you will be happy with it.
Al_Lee: Elba, aren’t you moving here, too?
Bob_(vegas): property values site
elba_NY: Yes we will Al
Penny: free site?
Mike_Summey: Theo, I reroofed 45 buildings with architectural shingles,
put vinyl siding on six houses, added air conditioning to several others,
replaced baseboard electric heat with heatpumps in several others, etc.
Penny: or monthly dues?
Mike_Summey: Hi gdi
elba_NY: And with almost $150 of cash flow Im very happy.
Bob_(vegas): I guess it was due huh mike?
Al_Lee: Elba, did Vee get it leased for you?
Mike_Summey: Bob, yes, I save those things and do them when I can’t find
new properties in which to invest.
Bob_(vegas): now you can raise the rents
Al_Lee: Elba, after you get that one leased, lok at the
TurnkeyInvestments.net site and think about buying one that is already leased
when you buy it.
Mike_Summey: Bob, all of the things I did enabled me to raise rents or
will enable me to do so on the next lease renewal.
Bob_(vegas): Big trip to san antonio coming up. Am looking for opinions
on weather to focus my 2 days on older homes of possible new construction to buy
and hold……any ideas?
Mike_Summey: One great way to increase rent is to add air conditioning to
properties that only have forced air heat. You can add the air conditioning
using the existing duct work and A/C adds about $75-125 per month to the rent.
It can usually be done for $2000-$3000.
Al_Lee: Bob, I have bought both over the past 32 years, but I sure like
the low maintenance on new construction.
Theo_SC: What about window units?
Penny: thats good info Mike
Al_Lee: Elba, no. That is the Donald and Kiyosaki’s gig. I was supposed
to be a presenter at Kiyosaki’s event last year and I told him that if I had
equal billing with him I’d do it. Of course, he refused,
Bob_(vegas): Hey Mike were you successful at buying that note and
evicting that tenant?
Mike_Summey: bob, not yet. The note holder has given the other guy 2
months to pay it off.
Al_Lee: He somehow struggled through without me.
Mike_Summey: Hi m&e
Theo_SC: Mike…have you and Roger ever partner on any deals?
BozoB: Al what is your opinion or Kiyosaki?
Mike_Summey: Theo, not only have Roger & I not partnered on any
deals, I’ve never has a partner period.
elba_NY: Mike, Al. Have you ever purchased a property trough tax liens?
What do you know about them?
Mike_Summey: i doubt hat I’d make a very good partner. I like to do
things my way and not have to answer to anyone else.
Bob_(vegas): great question elba
Theo_SC: me too
Bob_(vegas): they just listed a real property auction in sundays paper
elba_NY: Theo, Imagine Mike and Roger negotiating? lol
Theo_SC: I get people asking me to partner with them, but I don’t trust
them
Al_Lee: Elba, I suggest in my book that you file an address change every
time youbuy a house to transfer from the property addres to your mailing
address. It is not uncommon for th etitle company to put the property address on
a few documents and then the taxing entities or mortgage companies will send
stuff tothe proeprty, not to your mailing address. If you file a change of
address it will last for a year and any mail sent to your name at the proeprty
address will be forwarded to you. You can then get the address changed on the
sender’s records by writing, calling, and posting to their website. I say that
because sometime syou need to do all three to make it happen.
Mike_Summey: elba, I have not bought any tax liens. I’ve never wanted to
deal with something that I could put a lot of work into and then have the other
party pay the lien current and I only make a few dollars interest.
BigGabi: Hi all!
elba_NY: hi BigGabi
Theo_SC: Mike & Roger together…WOW!!!LOL
Mike_Summey: Hi BigGabi
Al_Lee: Elba, I have never done the tax lien thing because the way it
works in Texas the owner can make a tiny partial payment and get an automatic
extension for a year or two to pay the rest and meanwhile yur money is tied up.
If they ever do pay the taxes, you just mke the interest on your money.
Penny: Hi m&e & gabi, welcome back!
elba_NY: Thank you guys.
Mike_Summey: Roger & I have fun negotiating with each other…mainly
over how may strokes the other gets on the golf course.
Mike_Summey: Shane
BigGabi: First time here, but thanks Penny!
Shane: Hi Mike
Penny: oops BigGabi, in the past there was a gabi (guess that was little
gabi)
Penny: welcome anyway
Penny: m&e is back though
Theo_SC: Mike…have you heard about a law that will try to stop
investors from a property within a year of purchase?
BigGabi: Maybe maybe…
Theo_SC: selling
Mike_Summey: I’m not sure i understand what you are asking Theo.
Ralph_Roberts: sounds interesting, Al
Mike_Summey: Oh
Ralph_Roberts: call or email me ralph@abooks.com 800-472-0438
Ralph_Roberts: okie dokei
Mike_Summey: o, I haven’t heard of any such laws, but in NC the
legislature is considering legislation to put some pretty stiff restrictions on
people who buy and flip properties by basically acting as middlemen.
Theo_SC: this make the weekend millionaire principle even stronger
Mike_Summey: that’s true Theo.
Mike_Summey: Hi zert, glad you could join us.
Ralph_Roberts: hi Zert!
elba_NY: welcome back zert
zert: hello everyone
Mike_Summey: I’m noticing that properties are staying on the market much
longer without selling in my area. Anyone else seeing that?
Theo_SC: hey Zert
Bob_(vegas): especially in vegas …..Mike
Theo_SC: I am hearing about 190 days in greenville, SC
elba_NY: buyers are looking for deals
zert: I’m seeing that here, I thought it was the time of year
BigGabi: Higher interest rate?
Mike_Summey: I got a real shocker this week. The new tax valuations began
coming out. I have properties that the tax value increased nearly 100% in 4
years. Naturally, I’ll have to appeal the new valuations.
Mike_Summey: Hi Eddie
elba_NY: What does that mean for your properties Mike?
Theo_SC: WOW
zert: Mike - you must be fixing them up too well !!!
Mike_Summey: elba, probably much higher taxes.
Theo_SC: does this mean higher rents?
elba_NY: Does that mean an increase in value as well?
elba_NY: or not necesarily?
Mike_Summey: The first indication of a slowing down or decline in the
real estate market is a large increase in time on the market. The longer a
property is on the market the more flexible the seller becomes.
Theo_SC: higher taxes=higher rents?
Mike_Summey: Unfortunately higher tax valuations do not always translate
into higher rents. Higher interest rates usually do.
zert: When I looked at listings, I w used to ask for those listed in the
last week. I started asking for those listed for 60 dyas or so
Theo_SC: oh
elba_NY: great tip Zert.
Mike_Summey: zert, ask for the ones that have been on the market for at
least 6 months and you will find even more flexible sellers.
Theo_SC: Mike…is it because of fewer buyers?
zert: will do, but usually find that the listing has expired and either
renewed or went with another broker
Theo_SC: Zert…also keep the paper ads & re-visit them, there’s few
there
Mike_Summey: Theo, higher interest rates translate into higher payments
for which fewer people can qualify. this means more people have to rent so the
demand for rental units pushes up rents. the reverse happens when rates fall to
historical lows as they did a couple of years ago.
Al_Lee: When people are not buying houses, those people still have to
live somewhere. They are tenants. That also means less competition toi buy the
properties that are for sale; hence better deals for investors.
Theo_SC: Mike…I should have known that…it’s in the book 
zert: Al - good point
Mike_Summey: A couple of years ago, my vacancy rates shot up when
interest rates fell and I could not get rent increases. Now that rates are
rising, vacancies are down and every unit is getting a rent increase when the
lease is renewed.
Mike_Summey: Hi Dean
Dean-NC: Hi Mike
Mike_Summey: I know it sounds strange, but higer rates are good for long
term investors.
zert: Mike - do you change the vacancy ratio in the NOI calculation
during those times?
Theo_SC: Mike…I have 2 rent increases starting in March @ 3% $10 &
$20
elba_NY: speaking of noi. Mike how’s the offer generator going
Mike_Summey: zert, absolutely. I use a vacancy rate as close as possible
to the actual rate I’m experiencing at the time.
zert: Mike - for existing properties or only on new offers?
Mike_Summey: elba, I answered that earlier before you got here. I would
have been release last week, but we found another small glitch that was fixed
today. I just received the new version right before the chat began so I haven’t
had time to look at it yet.
elba_NY: thanks.
Theo_SC: Mike…do you think that new houses choke the rental market or
no effect?
Mike_Summey: zert, I use current vacancy rates when preparing new offers.
the rate doesn’t mean much for existing properties that I already own.
zert: Mike, I was thinking in terms of keeping adequate reserves thanks
elba_NY: Everyone I have to go. My 9mth old is sick and needs mommy. good
nite all. Al, Ill be listening.
Mike_Summey: theo, that all depends on how many of them are built and
what interest rates are at the time.
Mike_Summey: goodnight elba.
Theo_SC: ok
BigGabi: Anybody from outside the states like me?
Mike_Summey: Oversupply will always have a negative effect on rental
markets and so will very low interest rates.
Bob_(vegas): Mike, do you ever get out to Vegas?
Mike_Summey: BigGabi, where are you from?
BigGabi: Hungary
Mike_Summey: Bob, I don’t, but I have a brother in Carson City who gets
ther frequently.
Mike_Summey: BigGabi, wow! You must have the Hungarian version of our
book.
Theo_SC: LOL
BigGabi: 2nd one will be on the market on 20th of february.
BigGabi: I have the first one…
Mike_Summey: BigGabi, I have copies of the first book, but not the second
one yet. I just recently learned that Mindset is being released there.
Penny: goodnight elba
Mike_Summey: I recently received the Chinese translation.
BigGabi: Yes, 20th
Penny: awsome BigGabi!
BigGabi:
Dean-NC: Mike, did you pay any attention to the tax assesments that just
came out?
Theo_SC: Good chat guys…will see you all next week.
Mike_Summey: I understand that they are being translated into Russian,
Danish, Sweedish, Polish, Hungarina, Chinese, Japanese & Korean.
zert: Mike, how many countries and languages are the books released im?
Mike_Summey: Dean, yes. I commented on them earlier. Go back and read the
transcript later.
BigGabi: reading minds Mike?
Mike_Summey: zert, I don’t know for sure. I’m one of the last to know.
Dean-NC: Will do Mike. I just got home from the creia meeting.
Mike_Summey: How’d that go?
Mike_Summey: BigGabi, what is the book’s appeal in Hungary?
Penny: gotta run, goodnight everyone,
Mike_Summey: Goodnight Penny
Dean-NC: Our meetings are always good.
BigGabi: Hungarian translations are very good ones, Norbert makes good
job!
Bob_(vegas): night everyone
zert: me too - thanks I learned some new info tonight
Mike_Summey: BigGabi, what time is it in Hungary?
BigGabi: 3am
Mike_Summey: I thought it must be 3-4 AM there. You’re a real trooper to
stay up that late just to join us. I hope it was worthwhile for you.
BigGabi: Out of stocks in some bigger shops…
Shane: Al- Do you have any apartments?
Mike_Summey: BigGabi, I’ll have to send Norbert an email and let him know
that.
BigGabi: Honor is mine…
Dean-NC: looks like the room is getting bigger. Good night all.
Mike_Summey: BigGabi are you in any way connected to Norbert?
BigGabi: I will meet him next weekend on his seminar.
Mike_Summey: Good. Please give him my regards and tell him I asked about
him.
BigGabi: Ok i will!
Mike_Summey: Norbert was the first to translate one of the Weekend
Millionaire books.
Mike_Summey: Hi WPS
BigGabi: Only 3 books available in Hungary in real estate topic…
Mike_Summey: Well everyone, its been a good chat, but I’m going to have
to leave you. Other things are calling.
Mike_Summey: Gabi, please join us again anytime you are unable to sleep.
Mike_Summey: Goodnight all
Ralph_Roberts: good night, Mike
BigGabi: I can but some things are more important…
BigGabi: Good night Mike!
Al_Lee: I was away on a phone call and time slipped my. Goodnight all, I
need to run to take care of family stuff.
Ralph_Roberts: chat transcript will be posted in about five minutes
» Filed Under Chat Transcripts
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