Chat 3-06-06
Posted on March 11, 2006
keihatsu: hello everybody
yameen: hi everyone.
keihatsu: hello yameen
Josh: Mike and/or Roger, can you explain more about what happens in REO auctions on county courthouse steps? I know you mention it in your audio book.
Mike_Summey: Hello everyone
keihatsu: hello roger
keihatsu: hello mike
Al_Lee: Hi, Mike, Roger, everyone
Josh: I’ve found here in TX some of the banks have trustees that auction their foreclosed properties in this way
Mike_Summey: Josh, REO are not auctioned on the courthouse steps. They usually become REO after they are purchased on the courthouse steps by the bank.
Mike_Summey: The REO austions are usually privately held auctions.
Josh: How do you get invited to those and or find out about them?
Mike_Summey: keihatsu & yameen…where are you from. You’re new to the chats aren’t you?
yameen: my first time was last week - i’m in l.a. The market is crazy out here.
keihatsu: i was here before actually, but i used another name
yameen: los angeles, if that wasn’t clear
Mike_Summey: Josh, when I say privately held auctions, I don’t mean they are invitation only affairs. I mean they are conducted by private auctioneers.
Mike_Summey: Hi Doug
Roger_Dawson: Foreclosure sales don’t have to be made on the courthouse steps although that’s a traditional place. It could be in an attorney’s office as long as it’s well publicized so that all potential bidders can participate.
Doug_in_CT: Hello Mike, Roger, et. al.
keihatsu: hello doug
Roger_Dawson: Hi Doug!
Mike_Summey: Hi Denise
Denise: Hello
yameen: what are good tools to use when researching out of town markets? property managers?
Roger_Dawson: Courthouse steps gives you a vision of dozens of bidders waiving for the auctioneer
Mike_Summey: yameen, there are several ways to use the Internet to conduct research.
Josh: Mike/Roger how do you purchase in these auction situations? Only cash? or is there time to assume an exisiting loan or have the bank approve you?
Al_Lee: yameen, I recommend www.TurnkeyInvestments.net, but that is my website, so I may be biased
Roger_Dawson: cont: auctioneer’s attention. It doesn’t work like that. Usually the first trust deed holder will bid the amount they are owed. They hope someone will outbid them but it doesn’t happen that often.
Mike_Summey: Josh, usually you have to be preapproved in order to bid so the banks know you are a capable buyer. Then if you are the successful bidder you have several day in which to close.
Mike_Summey: Hi Brad
Brad: Hi Mike
Roger_Dawson: Josh, you’ll need a cashier’s check for the amount owed on the first plus a few $1000 cashiers checks in case you want to outbid someone.
Josh: Mike, do you mean preapproved by the banl wioth the outstanding loan or just by any bank?
yameen: Al, checked out your website, thanks. also listened to a bit of your live chat on sunday - do you provide transcripts?
Doug_in_CT: I came across a web-site called http://www.zillow.com/ that was interesting. It is a place to go to learn what the current price “might be” what is the trend in the neighborhood, What was the last sales price, how many square feet, What are the comps in the area, What are the current taxes. It is all a free site– no real estate broker will call.
Josh: continued: if it’s by any bank how do you show proof of that at the auction?
Mike_Summey: keihatsu, my email has been acting up the past couple of weeks. I’ve learned that several people have sent messages I haven’t gotten.
Mike_Summey: Hi jdubiz
jdubiz: Hello Mike
Al_Lee: yameen, I post recordings of the broadcasts on the website. It will be there in a day or so, as soon as I recive the recording from the radio station.
Mike_Summey: Hi bohica
Mike_Summey: Josh, in my area, you are usually only required to put up 10% of the bid at the auction and then have 30 days to close.
Mike_Summey: Hi Mark
MarkNC: Hi everyone
Mike_Summey: keihatsu, thanks for the reviews. I hope they were favorable.
Mike_Summey: I’ll check them out after the caht.
jdubiz: Mike ,Love your WMS book.
Mike_Summey: Thanks jdubiz
Josh: Mike thanks, sorry about the barage of questions. I have to leave early tonight and so I wanted to start right away.
Doug_in_CT: Here is some more info on Zillow: But consumers like her might soon be using an even more comprehensive Web site called Zillow, whose founder hopes to revolutionize the way people research their home buying and selling.
Al_Lee: Yameen, this last Sunday’s discussion was interesting because I described the bad advice many “experts” give and exactly why it was bad. Then, in the second half of the show I got a caller who experienced exactly what I had described. He was a real caller, too, not a shill.
Mike_Summey: Josh, glad you asked them. It always helps if we can get started quickly
Doug_in_CT: This helped convinced Rich Barton, who founded travel site Expedia and sold it to IAC/InterActiveCorp in 2003, to return to the dot-com fray this month with Zillow (http://www.zillow.com), backed by $32 million of venture capital.
Doug_in_CT: The free service, which is funded through advertisements from local suppliers, is completely independent from real estate agents. It doesn’t feature any property listings. But in the same way that Expedia took the mystery out of ticket pricing, Zillow allows consumers to find out key data on neighborhoods and calculate the value of their homes.
Roger_Dawson: I was at a probate sale last week. Very interesting. The attorney tells the judge that x dollars have been bid on the property. He looks up and says, are they any higher bids. No reponse, so he ordered the property sold. He had no idea whether this was a fair bid or not.
Josh: Mike, when making an offer through a letter of intent to a real estate agent that represents the seller do you have ti pay 6% commission or can you get away with just 3%?
jdubiz: Al, I checked out the ROI Spreedsheet it’s awesome.
Mike_Summey: Hi WPS & Jimmy
Al_Lee: jdubiz, thanks a million
WPS: Good evening
Doug_in_CT: The free service, which is funded through advertisements from local suppliers, is completely independent from real estate agents. It doesn’t feature any property listings. But in the same way that Expedia took the mystery out of ticket pricing, Zillow allows consumers to find out key data on neighborhoods and calculate the value of their homes.
Mike_Summey: Josh, the seller usually pays the commissions.
Doug_in_CT: Besides the usual details such as number of bedrooms and baths, square footage, etc., Zillow tells you when the property was built, what kind of heating and cooling system it has, the type of roofing and even the construction quality.
yameen: I am interested in the LLC info you were discussing, but had to leave the broadcast early. Do I need to “join” to get that transcript?
MarkNC: Mike and Roger, I oicked up the FAQ book today. Haven’thad a chance to look much yet, just in the car as I was driving up the interstate. I trust it will be as good as the others.
Roger_Dawson: Josh, that’s where Mike and I disagree on whether it’s good to be a broker or not. As a broker, I would tell the listing agent that I want my 3%. Remember that’s 3% cash at closing, which might be a big part of the down payment.
Mike_Summey: yameen, NO just look up the transcript in the chat transcripts. It’s a button on the left side of the home page.
Josh: Mike, so would that agent be asking for 6% or just 3% because I would not have an agent representing me?
keihatsu: is it possible to get tax write offs if it’s related to real estate investing? like gas, etc?
Mike_Summey: Hi Shane
Shane: Hi Mike
Al_Lee: yameen, no, the recordings are free to listen to on the website if you click “Streaming Audio” link on teh www.RentHouses.org website you can listen for free.
Roger_Dawson: Mark, please don’t read our books as you’re driving down the interstate. In this litigious age, that’s our dislaimer: if you crash, don’t blame us.
Mike_Summey: Mark, I think you will find it answers just about any question you might have about the first book.
Brad: Mike… I have two of your books, “spare time” and “faq’s” and my question is, how to find houses which are selling in the Bay Area, CA. at $500k to $700k and commanding a rent of only $1300 to $1800 and make the “weekender NOI program work?? It appears impossible, (to cash flow) even if you could negotiate 60% off the price!
Mike_Summey: Josh, the listing agent who represents the seller usually gets the entire commission and then splits it with the selling broker. That is why the seller pays both parts of the commission.
yameen: same problem here in LA, Brad.
Roger_Dawson: Keihatsu, I’m not a CPA but I think that they would tell you that any trip to look at a potential investment would be tax dedectible.
Brad: Right!
Mike_Summey: Brad, do you have The Weekend Millionaire’s Secrets to Investing in Real Estate?
Mike_Summey: Hi Theo
Brad: Yes
yameen: Brad, I’m focusing my search in the less that perfect areas.
yameen: less than perfect, that is.
MarkNC: Mike, I only read in the straight stretches, I was in Charlotte and its so boring driving out of the mountains 
Brad: Even our less than perfect is 400k
Al_Lee: Brad, I manage a club with 100 members nationwide who buy in Texas because they could not find cash flowing properties in their home markets.
Mike_Summey: Everyone, the Offer Generator program is now available. You’ll find it on the top of the home page. You can either purchase it now for $49.95 or download a trial version and try it out.
Al_Lee: Brad, your problem is a common problem in most major metro areas in the US.
Brad: Hi Al…I emailed you today
Brad: very interesred in your service
MarkNC: Great Mike, I can’t wait to see the offer generator.
Al_Lee: Brad, Oh yes, you ate that Brad!
Al_Lee: you are that Brad, you didn’t eat him
Doug_in_CT: Brad, What about traveling to Utah? I notice their market has just turned around after lagging for the last several years according to http://www.ofheo.gov/HPI.asp
Brad: not yet!
Mike_Summey: The secret is to keep making offers that work for you until one is accepted. Depending on market conditions, it takes longer at some times than other to find deals that work.
WPS: I have purchased you book FAQ and find the format very informational. Maybe I did it in reverse; I still have to read your 1st book. I’m baout a 3rd of the way into FAQ though
bohica: Hi Everyone, Roger and Mike, read the book and love it. Wish I had read it 10 years ago, but will get started now anyway. What is the best way to find out about foreclosure properties or properties at risk of going into foreclosure? Thanks
Theo_SC: Hello all
Mike_Summey: That’s why the Offer Generator is so good. It walks you through dozens of ways to make offers that all work with the noi.
Mike_Summey: wps, the FAQ book is a companion to the main book which is the Secrets to Investing In Real Estate.
jdubiz: Mike ,sorry if this has already been asked ,but I downloaded the offer gen. and it will not calc. the NOI even after I fill in all factors.
Roger_Dawson: bohica: every community has a legal newspaper. This is where notices of foreclosure are posted. I don’t know how to get earlier notice than that unless you’re willing to sleep with a banker.
Mike_Summey: Theo has been working with the Offer Generator program. Theo why don’t you give everyone your assessment of it.
keihatsu: in the beginning, when trying to find real estate agents to help you. do you suggest you go through them like a property manager or bankers. Let them know your goals and plans, and is it a bad idea to have a few of them. I’m guessing the competition between them may sour relationships
Brad: Mike - I figure I’ll have to go out of state to invest and that brings up a whole set of questions. Like how to do effective negotiating when you can’t look the seller in the eye, etc. ?? Doug - I’m starting to plan out side of the state
WPS: What is you take on condo’s as investment / rentals. Inexpensive for 1st time buyers
Mike_Summey: WPS that’s one of our 14 biggest mistakes new investors make. Last chapter in the 1st book.
Josh: Mike and/or Roger, what is the typical deductible (on your landlord policy) you carry on your investment properties? high (better noi) or low? some states do % of property value, others do a dollar figure..
Roger_Dawson: keihatsu, you have to search for an agent who likes to work with investors. Some enjoy presenting low offers, some hate it. Once you’ve found one who works for you, be loyal and give them all you business in their territory.
WPS: I guess I’ll hqave to buy the 1st book then
Mike_Summey: keihatsu, that’s a touchy subject. You have to keep looking until you find one or more brokers you like to work with. Same way with finding a property manager.
jdubiz: Hi Theo have u ran into any problems w the Offer Gen.?
Brad: Is there anyone who has been effective with investing out of state with special regards to negotiating? and then what about the rest….documents, inspection, etc.??
Mike_Summey: Josh, I have a $250 deductible per claim. In a recent hail storm, I have 44 roofs damaged and replaced by insurance. The insurance company considered it one claim so I only paid the deductible once.
Roger_Dawson: Josh, I’d recommend a high deductable. Say a $1000. It’ll save you money in the long run.
Al_Lee: I agree with Roger. I give one property manger all my busines swith the understanding that I will pull it all if they let me down. I have several times pulled my business form a management company that let me down, so they know I am serious.
jacepharm: Hello to all
Roger_Dawson: Mike, didn’t mean to contradict you on the deductable. I posted my answer before I saw yours.
Mike_Summey: Hi jacepharm & penny
Penny: Hi Mike.
jacepharm: hi Mike
Roger_Dawson: Hi Penny
Mike_Summey: Roger you are correct that the higher deductible will get a better premium.
BozoB: hey everyone!!
jacepharm: Its been awhile since I last logged on
Mike_Summey: Hi Bozo
Penny: Hi Roger.
BozoB: sorry I’m late
Al_Lee: roger, i USE A 1% deductivble ON ALL MY casualty. It reduces my premiums and I only make a claim for major losses
WPS: We have 2 properties with adjustable mortgages, with the fed increassing the rates your take on locking into a fixed rate
BozoB: Mike, aloha my friend
Penny: large crowd tonight
yameen: I have a friend with tons of $$, who wants to invest in real estate. I want to make him my “bank.” Any tips on why he should invest it with me (i want good terms, of course), rather than other traditional investments?
keihatsu: this question, im sure can help people who need to invest outside their area. When it comes to avoiding bad neighborhoods , real estate agents and property managers will be your best bet right in knowing what to avoid and where to go?
BozoB: I just got the FAQ book a week ago and I love it
Shane: Mike, I just closed on some apartment units, which have been poorly manged and have had high vacancy rates, some rates are 275 and 300 should be $50 higher. Do I raise or try to fill vacancies first
Mike_Summey: Josh, I have a large blanket policy which gives me a great rate and allows me to keep the small deductible.
Al_Lee: wps, lock in a 30-year fixed-rate now. Rates just dipped again for no reason I can discern, but I am taking advantage of it while I can.
Mike_Summey: Bob
Bob_(vegas): been trying to log for 30 minutes
Brad: Is there anyone who has been effective with investing out of state with special regards to negotiating? and then what about the rest….documents, inspection, etc.??
BozoB: great question brad
WPS: even after we refi a year ago, is it still worth it
Penny: Bob_(vegas) I had trouble also
Doug_in_CT: What about moving Brad?
Mike_Summey: Shane, I once bought 40+ units that were in bad shape, kicked everyone out, renovated completely and then tripled the rate. I couldn’t have done that if I’d allowed the tenants to remain.
Brad: Thats a hard one, Doug
Al_Lee: wps, when, not if, rates go up, you will be very thankful that you refi’s into a fixed rate
BozoB: how did you carry the property Mike?
jdubiz: Mike,What is your take on interest only financing?
Mike_Summey: Fortunately I was in a financial condition where I could do that.
Doug_in_CT: How about a month’s vacation each year Brad?
BozoB: oh ok
Brad: Can do
Mike_Summey: jdubiz, I don’t like interest only financing and i never use it. Al Lee swears by it. We’re both successful, so go figure.
BozoB: jbudiz, you should read the new FAQ book
keihatsu: how about moving the area you want invest a an hour or two away? prices seem to go down the farther away from a major city you get
campcowles: Hi, all. Mike, was everybody on a month to month lease? Or how did you mangage to get everybody out w/out getting sued?
BozoB: I have been skipping around in it and it is really goood
jdubiz: Thx BozoB i will
BozoB:
Doug_in_CT: I met a fellow on a Dolf DeRoos bus trip from CA, who traveled to AZ to buy about 16 houses. He told me he was doing great and that was before last year when central AZ prices appreciated at 45%
Roger_Dawson: I have an opinion about investing out of state because your state is too expensive. Everyone is so hyped up about nothing down investing. We’re investors. That’s means putting some money into a deal. What’s wrong with making a large down payment in order to make the numbers work? I bet the return on investment will still be better than the stock market.
Mike_Summey: Hi campcowles, there were no leases in the complex. It was poorly managed and the tenants were a bunch of thugs.
BozoB: well, that is a slap in the face for me, but what I need for sure
BozoB: understand what you mean Roger
Shane: Sounds good, but I have 70 units and I don’t know if I could stand it.
Josh: Mike, I love the Offer Generator thanks. Downloaded it over the weekend. Any plans to allow it to create an actual real estate contract or just a letter of intent? The contract would be helpfyul when making offers on fsbo properties.
Al_Lee: Appreciation is something that speculators see as paramount and nvestors see as a bonus. Cash flow is paramount to a true investor.
Mike_Summey: Shane, can you segment them into groups that can be divided off and dealt with in smaller blocks?
BozoB: Roger, how do you start with literally nothing though?
Brad: Roger- 400k down is to much for me
BozoB: you opinions, please
yameen: Al, what is your strategy for paying off those 30 yr loans? isn’t one of the goals to have the prop free and clear?
Shane: yes, there are 6 building 4 12 plex a 16 plex and 6 townhomes
Mike_Summey: Josh, the actual contracts differ from state to state, so we have to stick with the letter of intent and then let you or a realtor transfer the details to an acutal contract.
jacepharm: Mike I have a question I own 17 units on three properties which I paid cash for(before I became informed on the weekend millionaire)Now I am looking to mortgage it. Commercial rates I am given so far is 5.87 for 7years amortized over 30 years. If I get 75% back I would average about 6% return on cash. I figure this would allow me to buy more properties is that the right move
Roger_Dawson: If I had put 50% down on a fourplex in Beverly Hills 20 years ago, it would generate all the income I’ll ever need.
BozoB: lol
Al_Lee: Roger, I agree completely. I have occasionally bought for no money down, but it was a lucky break that you can not count on for your investing strategy.
Mike_Summey: Shane, why not start on one end and go building by building. That way new prospective tenants can see what you are doing and feel better about waiting a while for you to finish.
BozoB: Hey, Al, I wanted to thank you again as well
BozoB: for your e-mail and advice on the vredit thing
BozoB: credit, not vredit
Al_Lee: Roger, I am supposed to have Carleton Sheats on my radio program as a guest; but after he reads what I said about No money Down he might not show.
Mike_Summey: jacepharm, that sounds like a good plan to me. The more property you can control and have it cashflow the better in the long run.
Shane: As usual great, Idea. Thanks
BozoB: hahaha
Al_Lee: BozoB, thanks, thanks for the creidt
Mike_Summey: Al, Carleton will agree with us when it comes to long term investing.
jacepharm: Mike, is a 5% return not enough the headaches?
Roger_Dawson: If you’re thinking of cleaning up a run down property you might want to read Donald Trump’s book “The Art of the Deal” He got his start when his father gave him a chance to clean up a problem property, in Cleveland as I recall. It’s hard work but he made enough money on it to start an empire.
Al_Lee: Mike, Whew!
BozoB: hmm
jacepharm: Mike, Im working on a deal now where the return is 8% so thats a good indication the market is changing
Roger_Dawson: Al, don’t worry about it. Carleton and I have been friends for 25 years. He’s a broad minded guy.
BozoB: Roger, you have several businesses as well right?
Mike_Summey: jacepharm, if you get a 5% return in the beginning it will grow as the rents rise and the mortgage pays down. In the mean time you will gain appreciation on a much larger block of properties.
Al_Lee: Roger, just because he thinks about broads a lot doesn’t mean he is reasonable. SO do I!
BozoB: how did you start those businesses and keep up with your investing?
WPS: I am familiar with Mike & Roger; who is Al_Lee?
BozoB: hahahahahaha
BozoB: Al is a top notch guy
Roger_Dawson: BozoB, I’ve started 10 or 11 businesses in my life, but I make my money giving speeches to corporations and associations about Power Negotiating.
Al_Lee: wps, You must be kidding lol
keihatsu: when it comes to where bad/good areas are located. Who would be the best people to get that kind of information from?
Mike_Summey: wps, he’s this funny guy from TX that sells a lot of properties to investors, has a radio show and I hear he can even fly a plane.
WPS: sorry
BozoB: Thanks Roger
Shane: Roger, it had 21 vacancie when we first negotiated. I was allowed to rent them out on my terms. while waiting to close the deal. at closing Friday we had it down to 12
Al_Lee: Mike, I can fly a single-engine recip, not in the league you are in
Brad: oh, left handed, huh??
Roger_Dawson: That’s great Shane!
Josh: Mike, Roger, et.al. thanks for the help and answering questions. I’ve gotta run. Goodnight everyone!
BozoB: aloha Josh
Al_Lee: Goodnight, Josh
Roger_Dawson: Goodnight and good luck, Josh
WPS: can’t recieve his station in NJ; too bad I guess
Mike_Summey: Goodnight Josh
Mike_Summey: wps, you can listen live via the Internet
WPS: How
Mike_Summey: Giv ehim the link AL
Roger_Dawson: wps, you can listen to Al’s show from his website. dance
Mike_Summey: Hi Sandy
sandy: Hi Mike,
sandy: Took me 30 minutes to get logged on tonite.
BozoB: I know there are many ways to get started when you have nothing, but does anyone have any real experience with this? Especially in an area where the median is around $500k
Bob_(vegas): me too
WPS: AL what is your web site
Al_Lee: Mike, the link is at www.RentHouses.org and if you click on the Listen Live message that crawls across the top of th epage you can listen form anywhere in the world. Most of my listners don’t liv ein the broadcast area, they listen on the internet
yameen: any ideas why someone with $$ should loan it to me for investments, rather than other possible investments?
Mike_Summey: Al, I’ve become a regular on the Frankie Boyer show from Boston (1st Monday of each month) Today she asked me if I would do 2 segments a month.
WPS: Thanks
Al_Lee: wps, see the previous reply
jacepharm: Mike, what scares me is that commercial loans are not locked for a longer than 10 years.In my case 7. That means that my rate at the end of 7years would go up to whatever the rate will be at that time. Even though my principal will be paid down wouldnt my return on cash decrease if the rate went from 7% to 10% if the pace kept going with the feds?
yameen: mike, is there a webcast of the Frankie Boyer show?
Mike_Summey: yameen, that’s your job to sell them on the reasons why.
Brad: Bozo– that’s the big question of the night!
Al_Lee: Mike, havein ghad you on my show several times I can understand why. You are a great guest. You know your stuff and you can articulate
BozoB: hahahaha
Bob_(vegas): Just returned from houston and san antonio looking at property
BozoB: Brad, that is the question that is haunting me right now
Doug_in_CT: Did you find anything Bob?
Mike_Summey: yameen, yes and I will try to post it on our website later.
Bob_(vegas): both realtors were clueless when working with investors
BozoB: but, it is fun trying to figure it out
yameen: mike, don’t recall the book going into detail on those reasons.
yameen: did it?
Brad: yep…
BozoB: can anyone tell me anything about Russ Whitney?
yameen: i need to review the book!
Brad: yep again
Bob_(vegas): taxes are the biggest chalange in Texas
jdubiz: Hi Roger, As a low income beginner as i am with fair credit ,If i get approved for a loan ,and find a deal with positive cash flow. Will I be able to get future loans or will the Bank see me as maxed out(High debt to lincome)?
BozoB: I read one of his books and he seemed to start in a similar situation as me
Mike_Summey: jacepharm, I use flaoting rate, fixed payment type financing. Yes there is a risk when rates rise, but it sure feels good when they go down and they did in recent years.
Al_Lee: Bob(Vegas) I get a positive cahs lfow after taxes, management fees, repairs, and everything else because rents are relatively high in Texas and prices are very low.
Roger_Dawson: BozoB: I’ve known Russ for 25 years and I suggest being very cautious.
Mike_Summey: Boxo go to www.johntreed.com and check him out.
Bob_(vegas): I found about 1 % of sales price
Bob_(vegas): maybe a little lower
BozoB: Roger, Thank you very much
Brad: CA> tax is around 1% of selling price…WOW
Mike_Summey: Hi Eddie
Al_Lee: Bob(Vegas), so if you pay 3% tax on a $100k property that gets $1200 rent, you are a lot better off than in other metro areas whey you might pay 1% on a $300k house that gets the same rent.
EDDIE-NC: hey, had a very hard time logging on for some reason
Bob_(vegas): makes you wonder why more ppl dont buy instead of rent
BozoB: Mike, was Boxo aimed at me?
jacepharm: Mike, where can I get more info on the floating rate, fixed payment loans.
Mike_Summey: Eddie, we haven’t slowed down tonight. Been very busy.
EDDIE-NC: sounds good
Roger_Dawson: Yes, Bozo, he meant you.
BozoB: lol. just checking
jdubiz: Hi Roger, As a low income beginner as i am with fair credit ,If i get approved for a loan ,and find a deal with positive cash flow. Will I be able to get future loans or will the Bank see me as maxed out(High debt to lincome)?
BozoB: Thank you very much guys
Brad: Mike & Roger… Very good books, the way they come across
Al_Lee: Bob(Vegas) OK, itf you are talking about California properties that wouel be a %500k property that gets $1200 rent.
Bob_(vegas): al you ever hear of a company in dallas doing deals by the name of Metro properties?
Roger_Dawson: Jdubiz, if you’re getting cash flow, I don’t know why they’d think you’re maxed out.
Mike_Summey: jacepharm, talk with your banker. Ask it they can offer financing where the payment is fixed, but the rate floats. That protects them from rate fluxuations and you from payment fluxuations. There are some drawbacks, but it has worked well for me for over 25 years.
Al_Lee: Bob, I don;t know them
Brad: thats right AL
jdubiz: THX Roger
Brad: CA tax that is
Bob_(vegas): I know that
sandy: Eddie, it took me 30 min. to log on
Al_Lee: In Texas you pay a higher rate of tax, but it is on a much, much lower base price. You must look at absolutes–dollars, to see what really matters
Mike_Summey: Thanks Brad! We’d appreciate it if you would post your comments on Amazon…the rest of you also. That’s how new readers learn about the books.
jacepharm: Thanks mike I will look into that. I am downloading your offer generator as we speak
Bob_(vegas): here in vegas I have several properties renting for 1250 that are valued at $350,000
Brad: Be glad to
Bob_(vegas): the rent market is soft here
Mike_Summey: Hi yadush
Al_Lee: Bob, here in Dallas/Fort Worth, many propertie sthat rent for $1200 are priced at $100k
jdubiz: Roger i get it , if i have positive cash flow it’ll just add to my overall income.
jacepharm: Mike, I will buy the faq book tonight on Amazon as well
Brad: Al…I’ll be siging up with you next week
Bob_(vegas): unfortunately neither san antonio or houston realtor took me to that area
jacepharm: I own the Weekend Millionaire and Mindset books\
Al_Lee: Brad. Welcome to the club!
jyadush: Hi Mike - just got the FAQ book. I will start reading it tomorrow.
jacepharm: used them as a reference guide all the time
Mike_Summey: jacepharm, I think you will really enjoy the program after you run through it a couple of times. You can create literally hundreds of different offers that all work with the noi. It teaches you how to balance price and terms to make deals work.
WPS: -al, there are actually porps at 100K out there???
Roger_Dawson: To clarify on CA property taxes. the tax is 1% of the purchase price and that goes up by 2% each year. You also pay for any special local assessments like schools, fire protection etc. It’s much better than most states, but 1% is an over-simplification.
Al_Lee: wps, go to www.TurnkeyInvestments.net and see for yourself
jyadush: I have a question about starting an llc.
Mike_Summey: Go jyadush!
keihatsu: when it comes to what areas to invest and avoid in your area, which are the best people to get this kind of information from?
Brad: Roger, CA has been a tough play ground here in the Bay Area!
jacepharm: Mike, Funny…I created a spreadsheet on excel with my accountant that allows us to play with interest rates and deposits as well as allows us to plug in NOI to get an idea where we need to be to make an offer
jacepharm: Mike, So I am excited about this
Shane: Good night everyone, got a lot of work to do, Thanks
jyadush: I want to protect myself from liability - this is my prime reason. What are the pros and cons of placing each property in the company name? i heard it’s expensive and not worth doing.
BozoB: I have to go as well, I would like to thank you all very much
Roger_Dawson: Shane, come back shane!
Mike_Summey: keihatsu, I rely a lot on the advice of property managers. It’s also good to visit the areas and inspect them carefully. Look at the kind of people who are hanging out, etc.
BozoB: I will see you next monday
WPS: thx al for the site I’ll ck it out
Mike_Summey: Goodnight Shane
Bob_(vegas): is there a spreadsheet out there to list all the details of my propertis to have and present to a banker and to track these properties as well?
BozoB: Al, you mind if I e-mail you again sometime?
Doug_in_CT: My seven year old son, Micah, wants to see the dancing Elephant dance dance dance
Mike_Summey: Has anyone read the bonus section on the website that is in the bvack of the FAQ book?
Al_Lee: jyadush, In a couple of days I will have my latest radio program on the website for free listening. You need to listen to it. We discuss owning RE in entities
Brad: Let me check
Al_Lee: BozoB, email me any time.l Just try to pur “from_BozoB”n the subjec tline so my spam blocker passed it through.
Mike_Summey: We have a great inspection form in the downloads area of the website. It’s free and you can print off as many copies as you want as often as you want. I urge tyou to use it.
BozoB: OK
jyadush: great. i was also thinking about using land trusts within the company. any suggestions?
BozoB: Have a good night everyone
BozoB: Mike, Roger, Al, thank you all again for having me here
Al_Lee: Goodnight, Bozo
BozoB: A Hui Hou
Mike_Summey: jyadush, I’m not aware of any advantages to using land trusts.
Roger_Dawson: Good night everyone.
Mike_Summey: Bozo come back anytime.
jdubiz: Al, how can i find the radio program?
jacepharm: Good night Roger
BozoB: Thank you Mike
jacepharm: Good night Mike
Al_Lee: Before using any legal entity to buy RE, check with your lenders to see what kind of loan they can make into the entity
jacepharm: y with the offer Generator now
jacepharm: I will play with offer generator now
Mike_Summey: Everyone, be sure to at least download a copy of the free inspection form when we finish the chat and look it over. It will help you a great deal when you are inspecting properties.
Brad: Thanks
WPS: Thx Mike
jacepharm: I will check the inspection form now as well
Bob_(vegas): Mike do you have a spread sheet to track property?
Al_Lee: jdubiz, you cna listen live online at www.RentHouses.org by clicking the scrolling marquee at the top of the page that says “Listen Live”. The show is live at 2pm Central time on Sundays. I have recorded past show sonline for free listening if you click “Streaming Audio”
Mike_Summey: AND…be sure to download the Offer Generator and work with it. You can download the trial version for free and try it before you buy it.
jdubiz: Mike thanks for the inpection form i’ve used it last week.very useful.
jdubiz: Thx Al
Mike_Summey: Bob, I do, but it’s not on ethe website. It is my personal tool, but I may share it a little later.
Bob_(vegas): I am at a point to need some organization for presenting to banks…etc..
keihatsu: i believe carelton sheets tool kit has something to track your properties as well right?
WPS: good night all
Bob_(vegas): hmmmm…
Mike_Summey: Bob, my banks love the spredsheet reporting format I use, but it is a bit complicated for beginning investors. When I have time I’m going to try to simplify it and put it on the website.
Doug_in_CT: I would love to see that Mike. Sounds like a good tool.
Bob_(vegas): thanks
Al_Lee: Mike, I talked to Roger this afternoon and he is down with the flu. I wonder if he will be able to save this transcript on the website tomorrow morning, as I am sure he has been sleeping all this time.
Bob_(vegas): maybe I will try and create my own in the time being
Mike_Summey: Al, the transcript saves automatically. He should have it posted tomorrow.
Al_Lee: Mike, that is wonderful I love to go back and read my own words. 
Mike_Summey: Well folks, it’s been another great chat, but I have to leave. I have a big day tomorrow.
Mike_Summey: dnight all.
bohica: Thanks for the insights tonite all!
keihatsu: take care, thanks for the help
Theo_SC: ood night all
Bob_(vegas): night
Doug_in_CT: goodnight Mike, Thanks for sharing.
keihatsu: gnight all
Brad: Good Night and TX
Al_Lee: Good night all
Bob_(vegas): Al I was frustrated with the realtors I worked with
Al_Lee: Bob, where were they? Texas?
Bob_(vegas): over the weekend
Bob_(vegas): felt like I was having to educate them
Bob_(vegas): two seasoned realtors
jdubiz: Al ,Do Management Co. Usually get a better rate from repair companies than the individual investor would?
Bob_(vegas): oh well live and learn…..
Bob_(vegas): it will be different next time
Bob_(vegas): thanks to all for an informative night
jdubiz: Al?
Al_Lee: jdubiz, Yes, I use a management company for everything, even on my own house
Al_Lee: Sorry, I had to leave for a moment
jdubiz: Thanks Al.
jdubiz: No problem
Al_Lee: Bob, I use my property manager as my realtor (they are licensed brokers, too) when I need to use a realtor
Al_Lee: They understand investors
Al_Lee: I really need to run now.
Al_Lee: night all
jdubiz: g night
Jamie: Hello
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