Chat 3-13-06
Posted on March 13, 2006
UK_LADY: hello all
UK_LADY: hi erik
UK_LADY: any here
bcurtis: has anyone bought their first property yet?
Sean_McLellan: Hello, Curtis
bcurtis: hi
bcurtis: is it just you and me?
Sean_McLellan: So far, yes
bcurtis: how’s your investing going?
Sean_McLellan: Not bad. Have you done any yourself yet?
bcurtis: no. i’m about to get started.
bcurtis: did you have capital to start with?
Sean_McLellan: Not for the first two. I do now, though.
Sean_McLellan: It probably wasn’t a very good idea to go into it without capital to start with, but it worked out well for me.
bcurtis: how did you fund any repairs?
Sean_McLellan: Luckily there weren’t any expensive ones
bcurtis: do you mind if i ask what area you live in?
Sean_McLellan: I live in Middle, TN
Sean_McLellan: The first property I bought was in East, TN
Sean_McLellan: I sold it about 6 months ago
bcurtis: oh, wow. i live just below memphis.
Sean_McLellan: in TN?
bcurtis: so, you’re integrating flipping with the weekend millionaire concept.
bcurtis: olive branch, ms.
Sean_McLellan: I’m doing a lot of different things all at the same time…
Sean_McLellan: I owned the first one for about two years
BozoB: Aloha everyone
Sean_McLellan: I sold it because I moved back to Middle, TN… 4 hours away… and I don’t like not being able to keep a close eye on things
BozoB: Al how are ya?
Al_Lee: Hi, Bozo
Al_Lee: you?
bcurtis: that’s what i’m going to do to build capital to buy rentals.
Al_Lee: How are you all?
BozoB: excellent 
Sean_McLellan: I had a great property management company, but still, nobody takes care of your property like you would
bcurtis: hi, AL. doing well.
Sean_McLellan: Hello Al
Al_Lee: Hi, bcurtis
Al_Lee: Hello Sean
Al_Lee: My 8-year old daughter wants me to make the smile face. Here it is :>
BozoB: Al, what was your web address again?
Sean_McLellan: dance
BozoB: lol
Al_Lee: Bozo, I have several, they are all linked together. Go to www.RentHouses.org and you will be able to get to all fo them
BozoB: Much Mahalo my friend
BozoB: I have a question for you, you mind if I e-mail you with it as well?
Al_Lee: You bmake me want to take another trip to the most beautiful state
bcurtis: be back in a few.
BozoB: lol
Al_Lee: Bozo, if you clcik on the “emailAl” link on the website, you will email me easily
BozoB: cool man. Thank you very much
Al_Lee: dance
BozoB: LOL Texas Real Estate is a great investment for folks from Kihei, HI
BozoB: ??
Al_Lee: Bozo, you are absolutely right
BozoB: you have other HI folks that invest out of state?
BozoB: through you?
Sean_McLellan: Hey Roger
BozoB: Hey Roger
Al_Lee: I have both the 8- and 10-year old here now, so I will have to generate some smiley faces right away ;>
BozoB: generate away
Roger_Dawson: Hi Sean, Bozo, and Al!
Al_Lee: *)
Al_Lee: Hi Roger
BozoB: Al, the link for the e-mail won’t work for me
Al_Lee: *bird* How are things in So Cal?
Al_Lee: Bozo, jst click on the link in my message http://www.RentHouses.org and it ought to work
Sean_McLellan: Hello Mike
Al_Lee: Hi, Mike
Mike_Summey: Hello everyone
Mike_Summey: Hi Eric
Eric_(NE): Hi
Roger_Dawson: Al, it’s been a gorgeous day in SC now that the storm moved out. Worked in yard all day an gotd a sun tan.
Al_Lee: 
Been pretty nice in Texas, too
Mike_Summey: We’ve had the most people ever sign up on our website this past week.
Mike_Summey: i Eddie
Sean_McLellan: Congrats on that
Eric_(NE): Hey Mike….I read in some chat transcript that you bought 21 houses your 2nd year. When I read your first book I was under the impression that you started out with little money. Did you buy 21 houses with nothing/very minimal down?
EDDIE-NC: Hey everyone
jeff.the.farmer: hello everyone
BozoB: Hey Mike
Mike_Summey: Hi Jeff
Roger_Dawson: Hi Eddie
jeff.the.farmer: ive been looking at real estate agents to help me out, but there’s so many. What’s a good way to narrow down the choices?
Mike_Summey: Eric, I bought one house my first year and two the second year. I wish I could have bought 21, but alas…no money at that time. I did buy 65 one year in the early 90s.
Eric_(NE): Ahhhhh….that makes more sense….lol.
BozoB: 65?!?! dang
Mike_Summey: Hi Bozo, glad you could join us.
BozoB: :), me too Mike
Mike_Summey: Hi yameen
yameen: hi everyone.
Al_Lee: jeff, I would only use a RE agent who was my property manager. Anyone else will not understand what we lok for as investors
Eric_(NE): Mike…when you first started out did you mainly do nothing down deals…..or close to nothing down?
Al_Lee: Hi, yameen
Mike_Summey: Eric, that’s true. I made a lot of offers because I had to make ones that would work for me in my situation at the time. That’s why it took me a whole year to buy my first one.
Eric_(NE): I’m 26 right now and I figure if I get this up and running soon I’ll be in a good place by the time I’m 45. Mike, Roger, Al…..your all very inspiring!
jeff.the.farmer: i didn’t know that property managers look for houses, i thought managing properties was their only thing
Al_Lee: Eric, you are about the age I was when I bought my first house.
Eric_(NE): very inspiring…
yameen: Hi Al!
Roger_Dawson: Jeff, find a real estate agent who has been for a few years. Yu want who really knows the market.
Al_Lee: jeff, any good property manager has to be a license dbroker in Texas, so they can do it all
Mike_Summey: Eric, there are only a few agents who understand the needs of an investor. These tend to be mainly buyer’s brokers…ones who work for you not the seller. You just have to look and look until you find one you like working with.
Al_Lee: Hi, elba
elba_NY: hello everyone
Mike_Summey: Hi Elba
BozoB: Elba, hey
elba_NY: Hi Al, Mike,Roger\
elba_NY: Bozo, nice to see you today
Eric_(NE): Is there any financing books you all recommend? I pretty much need to buy with little out of pocket…….join the crowd eh?
BozoB: it’s good to see you again as well
Mike_Summey: Eric, you’re about the same age I was when I started buying investment properties.
Eric_(NE): yes!
jeff.the.farmer: is one really good agent all you need? or maybe a few?
Mike_Summey: Hi John
JohnFromGreenvilleSC: Hi Mike
elba_NY: Hey Eric and I could be twins
Eric_(NE): lol……hey twin.
Mike_Summey: jeff, if you have one or two good agents it should help a ton.
elba_NY: hey there
Al_Lee: Elba, I doubt that you and Eric are twins. You may have your father’s features, but you have yoru mother’s fixtures.
Mike_Summey: Hi Josh
Al_Lee: lol
elba_NY: Al, Vee found a couple. If all goes well they’ll move in by April 1st.
BozoB: Mike, did you save up the money at the start?
Mike_Summey: Hi Penny
Penny: Hello Mike!
elba_NY: 
Al_Lee: Elba, you are going to love Vee. She has done wonders for me and a lot of other club members
elba_NY: Hi Penny
Josh: Hi Mike!
Mike_Summey: Bozo, no, I had to make offer that would work with little or no money down. I put $600 into my first purchase.
BozoB: Oh, ok
elba_NY: Ill be traveling to the area next week. I hope to meet her face to face.It will be a pleasure.
BozoB: that is my problem right now, zero cash (which can be remedied) and properties going for $500m
Penny: Hi Elba!
elba_NY: Mike, Roger when are the insurance experts stopping by?
Sean_McLellan: Mike, do you own any oceanfront condos?
Eric_(NE): Mike….I know you financed your properties for 15 years. Did you still use a 30 year loan (just pay extra principal) so when you had vacancies your out of pocket was reduced?
Mike_Summey: Bozo, there are many sellers who due to circumstances really need to unload properties. Sorting through all of the listings to find these people is the biggest challenge you will face. When you find the right sellers you will be able to get in with only a little cash if any. Just be careful that you don’t buy a no money down deal that you can’t afford to own after you buy it.
Mike_Summey: Hi Rob
Rob_FL: Hi
BozoB: yeah, thanks for the great advice
Mike_Summey: elba, I spoke with the Nationwide agent I had last fall and he will join us again in the next few weeks.
jeff.the.farmer: is trying to get 10yr financing too much to work with?
Mike_Summey: Sean, NO, NO & NO!
elba_NY: Thats great to hear.thanks
Sean_McLellan: Mike, is that an emphatic no just because you don’t? Or is it because you are strongly against it?
BozoB: test
BozoB: ok
Roger_Dawson: I’m having trouble finding a computer that works tonight. I think I have too many programs running
Mike_Summey: Eric, when I buy properties, I only buy ones I can make work with 15 year financing. Taht’s no to discourage you from using 30 year loans. They work for many people. I just don’t use them by choice.
elba_NY: The Hulk,Bozo?
Al_Lee: I think that condos are very risky fo rinvestors because of the hoas.
Mike_Summey: Sean, I’d stay far away from beachfront condos.
elba_NY: People like Al, Mike.
jeff.the.farmer: mike, is 10yr financing too tough to work with?
Sean_McLellan: What reasons do you have for that, Mike?
elba_NY: Hi Bryant.
Mike_Summey: Hi Bryant
BozoB: hahaha, oh no, you know myy secret identity
Bryant: Hi everyone
Eric_(NE): Roger….how do you effectively negotiate with a very impatient seller? It’s hard to build rapport and shmooz when they are very frustrated and are kind of closed off emotionally.
elba_NY: Bryant,nice name were are you from?
yameen: Is anyone familiar with the Houston market?
Mike_Summey: jeff, 5 year financing is great if you can make it work. I’m getting ready to write a check the end of this month for the final payment on a 10 year loan I used to buy a house.
Mike_Summey: i Mark.
MarkCT: Hi Mike
Roger_Dawson: Eric, you have to find their needs. What could they do if they sold to you? If they don’t have needs you need to create some.
Eric_(NE): Alright….that makes sense…
Mike_Summey: Has anyone used the Offer Generator program yet?
MarkCT: yameen I’m not familiar with Houston but I have investment properties in Dallas and Austin. I can comment on those markets.
elba_NY: Ill be downloading it after I put my baby to sleep tonight.
Eric_(NE): Roger, how do you create needs? Drop hints and try to milk any angle you can find?
Sean_McLellan: Mike, why would you stay far away from beachfront property?
elba_NY: John do you know about Trademark Properties?
jeff.the.farmer: ive played around with it, but didn’t make any real offer with the new program. It’s a bit confusing to me though, but im sure ill learn
MarkCT: I’m the programmer of the Offer Generator. If anyone has any questions / comments I’d be happen to discuss.
yameen: I’ve picked Al Lee’s brain a bit regarind Section 8 tenants - does anyone else have any opinions?
yameen: that was supposed to say “regarding”
Roger_Dawson: Eric: find their hot buttons. Could be walking on the beach at sunset. Could be giving their Grandaught a college education.
Mike_Summey: Sean, have your read the last chapter of the real estate book? 14 Biggest mistakes New Investors Make.
Mike_Summey: jt
elba_NY: Now there is a good brain for picking Yameen.
MarkCT: jeff I’d be happy to clear up any confusions you have with the program.
elba_NY: Al’s that is.
Sean_McLellan: I read the book a few weeks after it came out, that was a long time ago… I don’t recall that part right offhand, I’ll have to check it out again
elba_NY: Marc will you join us next week also?
Mike_Summey: jeff, just run through it a few times and you will see how simple it really is.
elba_NY: hi JT
MarkCT: Elba I’ll try. Just depends on when I can get my son to bed.
jt: hello
Rob_FL: As far as section 8, I’ve got a hud tenant for about 4 months now and things have been going good so far. Timely payments guaranteed
Rob_FL: It took us a while to find that good person though
Mike_Summey: markct is the programmer who wrote the Offer Generator & he’s here with us. Ask him any questions you have.
elba_NY: I completly understand. Mine is 9mths
yameen: yeah, it seems like there’s some built-in stabliity with Sect. * tenants, right? and those properties may be more cost-effective, too>
MarkCT: Al, Mike are you guys familiar with land trusts?
Sean_McLellan: Mike, by the end of this year, I will have purchased 5 properties since I started a couple of years ago. I have a friend who owns two beachfront condo’s, and the things have doubled in value over the past year and a half… I’ll have to check out the end of the book again to see what the downsides are to it.
Mike_Summey: Mark, a little.
Al_Lee: Mark, I am not
yameen: Rob, why was it hard to find the good HUD tenant? Did you go through some bad ones?
Mike_Summey: Sean, does he plan to sell them?
MarkCT: Is it true that with the deed held within a land trust that you can transfer trustee ownership without informing the bank?
Mike_Summey: Sean, I do not find condos in general good investments for the long term investor who is trying to build an income stream.
Eric_(NE): Al, aftering buying your first property how long did it take you to live off your rent house income?
Eric_(NE): aftering = after….lol
elba_NY: Mark ownership legally never leaves the original borrower.
Sean_McLellan: No, he owns them both free and clear… and rents them out, but on any weeks they don’t rent, he either uses them for personal retreat, or he lets friends and family use them. I actually just got back from a week of staying in one of them. He usually blocks off about 1/3 of the year for friends and family on each, and both of them net him about 30,000 a year… on top of having appreciated about 300,000 each over the past year and a half. I’m just incredibly intrigued by the whole idea
elba_NY: But the person holding the benefitial rights could change.
Mike_Summey: Mark, that’s one of the things some real estate speakers talk about. Personally, I think that anytime you try to keep information from the lender its at the least not ethicial if not illegal.
elba_NY: Note however, that the benefitial rights”should be” in the name of the original borrower.
MarkCT: Isn’t the person who holds beneficial rights the true owner?
elba_NY: Absolutely.
Al_Lee: Eric, that is a complex question. Let me tellyou that in 1991 I was broke because I had given all my best properties to my ex wife in a divorce and my daytiem business was not dong well. For three years I lived of the $3000 rent I got from the fre houses I had left and got no salary form my regualr business. In 1994 I started makign money again and started buying houses to replace the ones I had “lost”. In 1999 I was able to retire on a nice 6-figure income frommy rents. Since then, my net worth has doubled without “working”.
Mike_Summey: Sean, for every condo situation like the one you describe I can point you to hundreds that didn’t turn out well.
yameen: Does anyone get their loans from private individuals, other than the seller?
elba_NY: Some investors use this method to obtain “control” of the property not true ownership.
Eric_(NE): What year did you start Al?
Al_Lee: Sean, appreciation in value is paramount to a speculator, but to an investor, tental income is paramount. That appreciation can revers overnight.
Roger_Dawson: Condos are preferable to bare land but it stills like speculation to me, not investing.
jt: Mike, you used an example of making 21% ROI on a property with $750 NOI by paying $12k down (10% roi) and financing $108K @ 6%. The only way to pay off the loan without exceeding the NOI is with a 360 month term. Did you use this example to illustrate potential ROI or are you suggesting a 360 month term?
Mike_Summey: yameen, private individuals are a great source of financing. I use that type of financing frequently.
Rob_FL: yameen, I had to walk out. Yea, I had to interview a lot of applicants to find a good tenant
elba_NY: Al, that’s a great story. Three years, remarkable
MarkCT: Elba the trustee has the control and the beneficiary has ownership is this true regardless of who holds the bank note?
Al_Lee: elba, about 5 years, actually
elba_NY: I hope not to loose property that way but defenetly get some the other way.
BozoB: man, there are such advanced people here
BozoB: I love it
BozoB: Thanks, all of you
Mike_Summey: Mark, the main question is, Was the loan originally made to the land trust?
elba_NY: Mark, To my understanding thats correct.
jeff.the.farmer: what’s a good way to find private individuals willing to give you money?
Al_Lee: Elba, losing wealth is only a minor pain of divorce. There are much larger pains you suffer.
elba_NY: I come from a broken home. I know exactly what you mean.
jeff.the.farmer: i can’t imagine going up to strangers asking them to invest in you
BozoB: why not Jeff?
jeff.the.farmer: or who actually has money to invest
Mike_Summey: jt, ROI & NOI are two different things. It’s very possible to make 50%-110% Return on Investment if you don’t invest much and still only break even on the Net Operating Income.
elba_NY: Jeff, find friends family members. Its a good place to start.
jeff.the.farmer: well i mean, trying to find individials with the money to invest
jeff.the.farmer: yea i was thinking that, but for the most part they are very, very skeptical as im sure some of your family members were when you started
Eric_(NE): What is the main way you all locate your properties? mls? It seems that there’s so much competition for listed properties….
Mike_Summey: jeff, ask around. Find people within your community who have large amounts of cash in CD or other low performing assets and show them how they can get a much better return fully secured with a mortgage.
elba_NY: You may knoe someone who has money in a bank looking for a larger return.
MarkCT: Al how many properties did you need to own inorder to get that level of income coming in?
Mike_Summey: Hi slaruain
Eric_(NE): I second MarkCT’s question!
slaurain: Hello
yameen: computer logged me off - not sure if my last question posted. Mike, when using private investors, do you run into issues regarding getting loans at less than fair market rates?
MarkCT: Jeff I’ve been investing for a couple of years now and own 13 properties. My wife knows (and whats to know) nothing of what I do.
Al_Lee: Mark, it depends on the rent levels and your roi,but aobut 20 would be a good estimate. At that point, the cash flow shoudl be sufficient fo ryou to live on and to fund buying more properties.
BozoB: Everyone, I gotta run. I will check out the transcript of this one later. Have a good evening everyone. Al, I will surely be e-mailing you very soon
elba_NY: Jeff, we bought our first property 2mths ago, and yes many of my family members are skeptical.
Al_Lee: So long, Bozo
BozoB: please take care of yourselves
Mike_Summey: eric, there are dozens of ways to find properties, but I still think the best and most productive is to get out a ride the neighborhood the way we teach in the real estate book.
Eric_(NE): Al, 20 properties that are paid off? I can;t imagine having 20 properties heavily financed providing 6 figures???
jeff.the.farmer: im sure itll be kinda fun to show them in a few years how well we’ll become
MarkCT: Al I can see that if they are all continuously rented (with very little vacancy) and are clear of all major maintenance issues.
Mike_Summey: I found a house today in a neighborhood near me that looks like it has investment potential. Does not appear that anyone has lived in it for several months. Why?
elba_NY: Right on Jeff.
Mike_Summey: Goodnight Bozo
elba_NY: Maybe its in foreclosure? Something may need repair?
Al_Lee: Eric, they do not need to be paid off, but you do need to have good financing that allows for goo roi’s. I think aobut 1/3 of mine were paid off around that time.
jeff.the.farmer: maybe it’s from a family member
jeff.the.farmer: or a second house
elba_NY: owner moved?
jeff.the.farmer: its a haunted house =)
Mike_Summey: elba, you’re correct. Those are good possibilities, but the point I was making is that I found it by riding the neighborhood. It may or may not be a good investment, but I’m going to check it out.
Al_Lee: Mark, I have experienced nearly 100% occupancy for most of my investing career. In 2004 things got a bit more difficult, but that has corrected itself and we are back to normal again.
elba_NY: What’s the answer Mike?
Rob_FL: markct, I just installed the program. Once you enter a screen, it forces you to have to fill it out. I was just going through the screens.
Eric_(NE): It’s exciting to see the bell curve in rental income……I’m sure it must be amazing to experience having some income and then having mroe and more properties paid off while bringing in higher rents…..you go from decent to making A LOT of money at some point I’m sure…….How did that feel Mike, Al?
Al_Lee: There is another aspect to planning ot live without working–don;t have any debt other than the mortgages on rent houses. I had paid off my own home mortgage and have not had a car payment for 30 years. I only borrow for things that make money. FOr luxuries I pay cash, or do without.
MarkCT: Rob the program is very workflow oriented. It doesn’t make much sense to enter one screen without filling out the previous one.
elba_NY: Al, what I did not tell you is that there are about 2-3 other vacancies in that same street.
jeff.the.farmer: mike, do you routes planeed and such? I’m in the middle of making one. Makes my rides a whole lot more time efficient and easier to tell if houses come and go
Sean_McLellan: I definitely agree with you, Al. My wife and I paid off all of our non-mortgage debt last year and it has made an absolutely phenomenal difference in the way we live
MarkCT: Very smart Al.
Al_Lee: Eric, liek the guy on the A-Team said ” I love to see a plan come through”
Eric_(NE): lol!
Mike_Summey: Eric, I didn’t touch any of the money from my properties for 20 years. I lived off the income from my job and let the real estate income build. Right according to plan, I retired at age 50 and that’s when I started living off my properties. By that time the income was at a substantial 6 figure level…monthly!
yameen: Rob, going back to the Sect. 8 thing - did you not use a property mgmt company to do the screening for you?
Eric_(NE): 6 figures monthly! I have a hard time even imagining that……awesome!
elba_NY: Property Managers. A must for the true investor.
Mike_Summey: jeff, I currently have 5 neighborhood I ride regularly. I’ll go through each of them at least a couple of times each month.
jt: Mike, I guess I’m still not quite understandong something. In your example the $12,000 cash down reduced the NOI by $100, leaving $650 NOI for financing the remaining $108,000, which was financed at 6%. If that amount was financed for any less than 360 months, the $750 NOI in your example would have been exceeded.
elba_NY: Eric thats defenetly something to look forward to.
Eric_(NE): no kidding…..
yameen: that’s great,Mike - you had a six-figure-a-month income waiting for you, and you still stuck with the 9 to 5?
Eric_(NE): Most people would die for a 6 figure yearly income…..
EDDIE-NC: Sorry everone, I can’t seem to stay connected tonight
MarkCT: Elba I agree with you. Probably the best lesson I learned from the book (as long as you do your due dilligence).
elba_NY: Gentlemen, Ladies by boss the 9mth old wants his bedtime milk. I must go.Thanks for another great chat.Til next time.
Mike_Summey: jt, the reason the NOI was reduced by $100 was to give me a Return on my $12,000. I used that return to pay off principal faster thereby paying off the property faster. Using excess cashflow to pay off principal is sort of like taking money from one pocket and putting it in another.
Mike_Summey: Hight bolt767
elba_NY: Absolutly, Mark
bolt767: hi mike
Mike_Summey: Goodnight elba, hope to see you next week.
elba_NY: Ill try to make it. Good nite, Mike, Al. Eric, Mark, Everyone.
jt: Oh, I see.
Mike_Summey: yameen, I sure did. Had I quit earlier and lived off my real estate income I probably would never have seen the 6 figure monthly income. I let it grow and compound.
Al_Lee: Another aspect to retiring on rent income is the tax angle. IF you do real estate right, you can make yrou money without taxes which jsut about doubles the effect of it. Making $200k in rent is as good as $400k salary, but without th work.
jt: Is using your return on one investment to pay additional principle better than using it to invest in othe properties?
MarkCT: I have to go to. If anyone has any questions / comments on the offer generator feel free to email it to offer@weekendmillionaire.com.
Eric_(NE): Do you explai this in your book Al? I haven;t read it yet…..definitly going to though.
Al_Lee: Goodnight Mrk
Mike_Summey: Al, on the tax angle, I haven’t paid Social Security taxes in 10 years and I’m still not old enough to draw it.
jeff.the.farmer: would you say with financing: 30yr - OK 15yr - Good 10yr - Great
bcurtis: HI, guys.
Al_Lee: Eric, Yes, I think you will see how you make your moeny without taxes when you read my book.
Mike_Summey: Goodnight Mark
Roger_Dawson: Jeff, that sounds exactly right.
bcurtis: first time chatter here.
Mike_Summey: jeff, that would be my philosophy. Al would probably do it the other way.
Mike_Summey: Roger, I thought you had died.
Eric_(NE): lol
jeff.the.farmer: is it bad to offer financing for each of those years to the seller at the time same? or recommended?
Al_Lee: Mike, I have a very sharp cpa. I control my income so that I will pay enough fica to put me in position to get high benefits when I do start collecting, but zero income tax.
bcurtis: I really enjoyed the 1st book.
Al_Lee: Mike, yes, I woel put the moneyinto another proeprty, not pay down teh debt
Roger_Dawson: Hi Mike, I’m still here. I was having trouble typing for while, but it cleared up now. What can I teach you?!!!!
Al_Lee: Roger, can you teach me touch typing?
bolt767: i am working on re-reading the first book, its the first real estate book i ever read
Al_Lee: lol
Mike_Summey: jeff, when I don’t know a seller’s motivation, I will offer a low cash price and a high price with very favorable terms. How the seller responds tells you which way to go with your counter offers. That’s what the Offer Generator program does. It help you determine how to combine price and terms to make a deal work in hundreds of different scenarios.
Mike_Summey: bolt767, we’re glad you joined us tonight. This is where you can get answers to your questions and get help from many different people.
jeff.the.farmer: this is a great place bolt767 to get quick answers to your questions!
Eric_(NE): Yeah…this chat is great……my first time too!
Penny: Mike, Roger is just the quiet type. only speaks on occasion but speaks mounds.
jeff.the.farmer: too bad they don’t have chats everyday :p
bolt767: mike, i’m finally getting a chance to start looking for property after improving my credit score and cutting down from my 6 day a week work schedule to 4
bolt767: ive joined investment club in my area too
Al_Lee: Penny, don’t you mean “heaps”?
Mike_Summey: bolt, just keep at it and don’t get discouraged. buying the first property is the hardest, by far. Each subsequent one gets easier.
Mike_Summey: Al, I think she means piles.
bcurtis: Mike, what’s the best way to get started if you don’t have perfect credit?
Roger_Dawson: I would prefer “he speaks volumes” if you don’t mind, old girl.
Mike_Summey: bolt, that’s another good move. You’ll be around many knowledgable people there.
bolt767: mike, i’d say so, i called around last week and i got 15 calls back, i was overwhelmed, from all the sellers i called !!!
Penny: sure Al speaks “heaps” also.
jt: Another “Newby” quesrion: If a buyer accepts a Seller Financed offer, how is the loan administered? Does an escrow company manage loans between private parties?
Eric_(NE): Roger, how do you smoothly transition from the vise technique? When you say you can;t do anything and then they give you their bottom line….how do you smoothly go back into “Okay, maybe I can help you”?
Mike_Summey: bcurtis, read Weekend Millionaire Secrets to Investing in Real estate and participate in these chats.
jeff.the.farmer: dont forget to read the FAQ book as well
bolt767: now its just a matter of getting out there and getting busy for me
jeff.the.farmer: that’ll help any confusion you may have
bcurtis: I have. I’m on the 3rd book now.
jeff.the.farmer: so basically mike, when I make offers to sellers. Offer a low cash price and a high price with favorable terms for each 10yr 15yr 30yr financing
Al_Lee: btw: If you are looking for sellre-financed deals, I have two such deals on the www.TurnkeyInvestments.net website. They both have balloons in 3 years. I don’t buy that way, but you might like it. The roi’s are very good, too.
Mike_Summey: Everyone, if you don’t have the FAQ book, go get it tomorrow. It is a companion to the Real Estate Investing book and it track that book chapter by chapter. It contains questions we’ve been asked over the past few years and has the answers with them. The questions are sorted to apply to each individual chapter.
Roger_Dawson: Eric, it depends if the seller could be involved in the financing. If they could carry back, go to Mike’s approach of making a high offer with low interest financing, or a low cash (to the) offer and see which one appeals to them.
Mike_Summey: jeff, or 0% interest!
jeff.the.farmer: that’s true, almost forgot about that one
Sean_McLellan: Goodnight, everyone. I have to leave for the evening!
Mike_Summey: Everyone, if you will download the Offer Generator and give it a try you will see how price and terms work together. You can use it for free the first 30 days or 30 times before you have to purchase it.
Mike_Summey: Goodnight Sean
Roger_Dawson: Good night and good luck everyone. See you next week.
Mike_Summey: If you’re serious about investing, you won’t want to be without the Offer Generator. You can buy it now for just $49.95 in the store on this website.
jt: Mike, does the FAQ book answer any questions about the logistics involved with Seller Financing?
Al_Lee: I need to run now to tend to family
Al_Lee: Goodnight
yameen: I’m pretty excited - I’ve done some research and rents in my area are higher than i thought - should make it easier to make the numbers work!
jeff.the.farmer: when it comes to taking some money from your investments, how much does it affect you in the long run? I remember that you said that you didnt touch it for years
Mike_Summey: I’m going to have to run also. I’ve got a big day tomorrow and I need to get some rest. I’ve been burning the candle at both ends for the past couple of weeks.
yameen: good night, Al!
jeff.the.farmer: have a good night mike
yameen: good night, Mike. thanks for the advice.
jeff.the.farmer: thanks again for your advice
Eric_(NE): See ya Mike!
Mike_Summey: jeff, once you get enough equity built up you can harvest some of it as cash and hardly notice the difference.
Mike_Summey: dnight all.
Penny: heaps, piles, mounds, never mind, just a comment.
Penny: goodnight everyone
jeff.the.farmer: gnight all
Eric_(NE): See ya everyone!
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