Chat 3-20-06
Posted on March 20, 2006
navig8tr: Anyone here already bought a property with seller financing?
Bob_(vegas): I have in the past but not currently
navig8tr: I was just wondering how you keep track of it?
Bob_(vegas): You could use a loan servicing company
Bob_(vegas): where in ca bryant?
Bryant_CA: Burbank, north of LA
navig8tr: Never heard of those… I’ll look into it. As if you couldn’t tell I’m new to all of this
navig8tr: How long have you been at it vegas?
navig8tr: And Bryant
Bob_(vegas): 94 for me
Bob_(vegas): was born in Burbank
navig8tr: I’m trying to get my start in Fort Worth.
Bryant_CA: how long have you been in Vegas
Bob_(vegas): moved here in 94
Bob_(vegas): navig8r you been on Al,s site?
Eric(NE): Be glad you guys aren;t in Nebraska right now. We’ve already got about 4-5 inches of snow and overnight we’re supposed to get 12 more……..lol…..
Eric(NE): …and it was in the high 50’s through february!
Halle: I’m trying to figure out how to start back investing while sick?
navig8tr: We got dumped on last night and Sat. 5-6 inches of rain in some areas in just a day
Halle: From 2004 to now I’ve had 5 Back Surgeries.
Bob_(vegas): winter has been different this year
yameen: hi everyone. checking in from Los Angeles.
navig8tr: Does anyone know if Mike’s offer generator is going to include upates if you purchase it?
JD: Hi everyone. Checking in from the ATL
Mike_Summey: Hello everyone
Sean_McLellan: Hello Mike
Eric(NE): Hello!
yameen: hey mike
Bryant_CA: yameen, where in LA are you?
Bob_(vegas): hey Mike
navig8tr: Hey Mike
Halle: Hi Mike
JD: Hi Mike
Mike_Summey: Looks like I’m late
1stInvestor: Hi Mike
yameen: Bryant - sitting in my office in the OC right now, but I live in Covina.
1stInvestor: hi everyone
Eric(NE): We held the door for you though Mike…. 
yameen: Bryant, where are you?
Mike_Summey: Thanks
Mike_Summey: ’s Roger?
Mike_Summey: Looks like he’s late too.
Sean_McLellan: Does appear that way
Eric(NE): So Mike…..what’s the best reading material on financing?
Mike_Summey: I see we have some new people already tonight. Everyone feel free to jump right in with your questions.
Halle: Mike, how can I invest while sick?
Mike_Summey: Eric, I’d be remis if I didn’t say the Weekend Millionaire books, wouldn’t I.
navig8tr: I had a question about your new offer generator. Will the purchase include any future updates to the software?
Halle: I have had 5 Back Surgeries since 2004. One this February and need money
Mike_Summey: Hi oz
Mike_Summey: Halle, sick? Explain please
Mike_Summey: Hi Al
Halle: Yes
oz: Hi Mike,
Halle: I had invested in RE since 2001.
yameen: Bryant, just getting started. have you had success in LA?
Al_Lee: Hi, Mike, everyone
Mike_Summey: navig8tr, it will include any updates within a year.
Halle: The surgeries have spent my RE investments money
Mike_Summey: Hi Rick
Halle: Now I need money to live on.
yameen: Hi Al.
navig8tr: Wow this place gets busy fast
Halle: My last surgery was 2006, Feb.
Mike_Summey: Halle, are you not able to work?
Halle: not able to work
yameen: I’m focusing my attention outside So Cal.
Rick: hello Mike
Eric(NE): Hi Al!
Al_Lee: Hi, Eric
Mike_Summey: navig8tr, you’re right about that. Just wait till later.
Mike_Summey: Hi Roger Dawson & Sandy
Halle: But it’s been 2 years since income..I can’t wait at this point
Sandy: Hello all
Al_Lee: Hello, Roger
Roger_Dawson: Hi Everyone!
navig8tr: Hello roger
Doug_in_CT: Hello Everybody, I am going green tonight.
Mike_Summey: Halle, it sounds like you have a difficult situation. I don’t know what to advise you since I don’t really know any of the details.
yameen: Mike/Al - what are your quick thoughts about condos?
Mike_Summey: Hey Doug, nice color.
Mike_Summey: Hi sermiex
Halle: Would you like for me to email you details?
Al_Lee: yameen, I stay away form condos because of the hoa’s
Mike_Summey: Halle, that would be fine, but even then I’m not sure I can help.
yameen: what is the hoa’s work into the noi? is the prospect of them going out of control a deal breaker?
yameen: i meant “what if the hoa’s”
Roger_Dawson: Yameen, our objection to condos is about the homeowner’s association. They tend to be monarchies that act in the best interest of the resident members, no investors
Mike_Summey: Al, I just talked with a banker today who said he is already starting to see investors get in trouble. I will be looking at two properties he got back last week from one who gave him a deed in lieu of foreclosure.
Bryant_CA: yameen, condos have HOA which not only add to your expense but are also difficult to work with and sometimes have rules against using your unit as a rental
Al_Lee: I have a true story in my book of a guy who bought a condo and lost it because of the HOA and the president of the HOA now owns it.
yameen: yikes.
Al_Lee: Since writing the book I have met other peopel who had the same experience.
Mike_Summey: Hi steve, welcome
Eric(NE): Al, your book is on route to my house…..can’t wait.
Mike_Summey: Hi Leslie, glad you’re here too.
Bryant_CA: I am selling the condo I live in and will not buy another one… SFH or multi only from now on
Sean_McLellan: Mike–what would you say the operating expense ratio of rental property is in your experience?
Al_Lee: Eric, I hope you like it. Also go to my websites and read the articles that supplement the book.
Roger_Dawson: On the other hand I wouldn’t rule condos out as rentals if the numbers work and homes are too expensive in your neighborhood.
yameen: i think i have my answer re: condos!
Eric(NE): will do…
navig8tr: As far as getting a deal accepted is there any software or other paper work to actually help write out the contract?
Mike_Summey: yameen, there is a condo association here that just passed a ruling that there can be no rentals. Several investors own units in the complex, but their concerns were voted down by the residents.
Sean_McLellan: What happens in a situation like that where rentals already exist? Must they vacate, or are existing rentals ok?
Eric(NE): Is there any area of the country that you think it best to accumulate rentals? (ie: If you had to move somewhere and RE investing was your only concern….where would you go?)
Mike_Summey: navig8tr, the Offer Generator software produces offer letters ready for signature. If an offer is accepted, a Realtor, title company or clsoing attorney can help you transfer it to a contract form.
Al_Lee: Sean, hoa’s have power that even the government does not have. You are at their mercy!
Mike_Summey: Sean, existing renters can stay, but when they move the units can’t be re-rented.
1stInvestor: one person post his question on forum here and no one reply to him yet. his question is similar to mine. its about dilemma as renter who starting in real investing
Al_Lee: Eric, I believe you shoudl invest in Texas, primarily Dallas/Fort Worth, regardless where you live.
Eric(NE): step away from THE HOA’s!!!!!
Eric(NE): Why is that Al?
Mike_Summey: Eric, right now Texas is a great market…so are several of the midwestern states.
Mike_Summey: Hi Josh
Eric(NE): Nebraska?
Eric(NE): How do you determine a great market?
Mike_Summey: Hi Charlie, welcome
navig8tr: Fort Worth is very cheap compared to the rest of the country… I just moved here from San Diego. 3bd 2 bth house here is about 100G’s in San Diego it was closer to 300G’s
Mike_Summey: Eric, any market is good as long as you can make the numbers work. That’s what the Offer Generator software does. It helps you create offers that will work with the noi.
Josh: Hi Mike
yameen: I’m thinking about investing with 2 of my friends - is this a recipe for disaster?
Al_Lee: Eric, there are a lot of reasons. Favorable laws, low prices to buy with relatively high rents, low land cost giving higher depreciation allowances, number one relocation destination in the US, etc, etc.
Mike_Summey: Hi hypnotx & Penny
hypnotx: good evening, Mike!
Penny: Hi Mike!
Mike_Summey: yameen, some people have great success with partners and other don’t. Personally, I like to go it alone.
Al_Lee: yameen, be certain that you and they agree on your goals and strategies and assign one of you to make all decisions.
Mike_Summey: Hi Shane
1stInvestor: ;>
yameen: Do property mgmt companies, who work off a % of rents, get paid when the unit is empty?
Shane: Hi Mike
1stInvestor: ooh thats big
Al_Lee: yameen, normally not
Eric(NE): How would you accumulate rentals outside of your geographical area?
Doug_in_CT: Eric, Here is a tool to see what area of the country are moving: http://www.ofheo.gov/HPI.asp It gives reliable data going back 15-20 years. You can subscribe and get their quarterly reports as soon as they come out.
Mike_Summey: Hi Ty & chu
Eric(NE): :>
TyfromNY: hello everyone
Al_Lee: Eric, also National City Corporation does market research on 299 major metropolitian areas int he US every quarter. Go tot their website.
Mike_Summey: Eric, if I were going to invest outside my area, the first thing I would do is locate a property manager I could feel comfortable with to manage any properties I bought.
1stInvestor: what do you suggests for me as a currently renter?
yameen: Gurus - do you look for properties that are in oive-in condition, or are the #s generally better with props that need to be rehabbed?
yameen: I meant “move-in”
Al_Lee: Use AltaVista.com to find National City Corp’s webstie and they look for their research data
Mike_Summey: yameen, it doesn’t matter the condition of the property. If it needs work you factor that into the offer price.
Al_Lee: yameeen, I woeu lhav eto get a really good deal to buy a proeprty that needs work. I want to start getting rent as soson as possible
yameen: good points
Al_Lee: as soon as possible
Halle: Use the 70% formula in buying property
Eric(NE): 70%?
yameen: buy at 70% of value?
Bob_(vegas): hey Al any chance of getting your spreadsheet in microsoft works?
LeslieNewYork: I am new at this and this great info, plus your book is excellent & simply to understand.
Al_Lee: If a property needs work you should deduct 150% of the cost of that work from the price you pay
Mike_Summey: Al, I once bought 43 units, kicked everyone out and did $1,500,000 in renovations before renting them. I took the units from under $6000 per month rents to over $30,000, but I had a bit of carrying cost before I got the income flowing.
LeslieNewYork: simple, easy
Halle: yes, buy at 70% of the value - repairs - financing
Al_Lee: Bob, Doesn’t it work in Works?
yameen: how do yuo justify that, Al? how do you sell it to the seller?
Eric(NE): BTW…..the idea to have this regular chat is awesome for us newbie’s…….thank you!!!!!!!
Mike_Summey: Thanks Leslie. We’re glad you have joined us.
Bob_(vegas): no it wants Excel
Al_Lee: yameen that is a rule that most appraisers will follow,so it is not too hard to justify
Al_Lee: Bob, I have no idea how to make it work in Works ???
navig8tr: Alright… here is a long one… I’m in the military and have managed to put away about 50,000 in to two roth ira’s between my wife and I. I am hesitant about pulling the money out to start investing with it however its a good chunk of change to get started with. I will retire from the military in 10 years with a pension and my wife will finish medical school in 5 years. I’m 28 and my wife is 26. Is it wise to withdrawl this money to invest in homes?
Halle: yameen, in using any formula make sure you make the amount you want.
yameen: halle, you mean the roi?
Halle: yes,
Al_Lee: Bob, I would think that Works would recognize Excel formats. Maybe if I remove the protection from the Worksheet it will run in Eorks ???
1stInvestor: Where is Roger?
Mike_Summey: Everyone, if you use the Offer Generator software, it will compute values that usually turn out to be in the 60-80% of appraised value. If you have to pay more than this it is not usually a good investment.
Roger_Dawson: I’m here.
Halle: yameen, the formula doesn’t work well for properties under 85k
oz: question! found property w/ 1st & 2nd TD’s… 1st current, 2nd in default, what happens if goes to foreclosure if 1st don’t stop the default? In CA.
Halle: yameen, I mean a property worth 85k: 85k x .30 is about 26k
Mike_Summey: navig8tr, we had a guest in the chat last fall whose specialty was using IRA money to buy investment properties. I’m not that up to speed on it, but I understand it can be done.
Halle: Yameen, I’m thinking you want at least 25k for your investment
yameen: halle, that means that the purchase would be at about $60k, right?
chu: Hello Mike & Roger, I purchased your offer generator to start practicing with real numbers, but I’m dumbfounded as to the web site demo, could you please provide us with the link?
Al_Lee: Mike, you can use IRA money to buy RE, but you need to have a self-directed IRA and you can not use finaincing unless it is non-recourse.
Halle: Yameen, 85k - 25k profit= 60k - 10k repairs = 50k - 5k financing = 45k
Roger_Dawson: Oz, look at the ratio of the second. Is it big enough that the owner will bring the first current and then foreclose on the second. It only goes to foreclosure sale if that happens.
Mike_Summey: 1stinvestor, you may have to move the slide bar at the right of this window up and down to see everyone who is in the chat.
Mike_Summey: Hi adrian
chu: You can also but tax lien certificates using your ira.
Mike_Summey: chu, what problem are you having?
yameen: halle, you’re saying that the purchase price then just gets unrealistically low?
chu: You can BUY them, (not but them!)
adrian: hi mike..!!
chu: I’m having trouble calling up the demo so as to input my pin #
Halle: Yameen, yes you have to make sure you make a profit. If you don’t make a profit then you are wasting your time. This is a reason Beginning Investors become discouraged.
oz: thanks Roger, the first is current, 2nd in default. It don’t look like hte first can/will bring the 2nd current.
Mike_Summey: chu, you download the software fro mthe website and when you purchase a permanent license, you will receive an email with a license code to enter that converts the software from demo version to permanent use status.
Mike_Summey: Hi elba
Roger_Dawson: Oz, you may be confused on that. The first doesn’t need to bring the second current. As long as they are getting paid, they don’t have to do anything.
adrian: M I K E….there is any manual for your new program??
Mike_Summey: Mark, glad you are here. Chu has a question about the Offer Generator.
MarkCT: Shoot
Doug_in_CT: Yeah Mark did you see that front page story in the Hartford Courant?
Mike_Summey: , Mark is the programmer who wrote Offer Generator, so you have the expert here to help you
MarkCT: No Doug. What did it say?
1stInvestor: i am trying to figure how to calcuate 60,000 with 2 percent interest for 15 years
MarkCT: Unfortunately I only have 15 minutes
1stInvestor: but i couldnt do it
Doug_in_CT: It gave all the statistics for apprecation for every town in the State. It started on Page 1 and went into the Business section. Lots of information.
Mike_Summey: adrian, you don’t need a manual. Every field has help text with it. Just place the cursor on any field you don’t understand and the help text will pop up.
1stInvestor: pls help me out
Halle: 1st, use bankrate.com
Sean_McLellan: Mike–in your experience, what percentage of gross rental income ends up going to expenses (not including mortgage)
elba_NY: hello everyone
adrian: ooohh… I see…
Mike_Summey: 1stinvestor, the Offer Generator will do that for you.
oz: Roger, can the 2nd not foreclose? then what happens to the 1st. Does the foreclosure buyer take over the payment, of hte 1st or is it wiped out? I had never seen this situation before.
chu: Namely, where do I click to start the demo on the website? Mark, please guide us.
MarkCT: Connecticut is out of control. I’m glad I bought my house when I did. I couldn’t affort it now.
elba_NY: Hey Mike does the Offer Generator help with situations were a balloon payment is involved?
Mike_Summey: Sean, the percentage varies depending on the type property. For sfh’s I find it runs 20-25%
elba_NY: Hey Al. Are you here tonight?
Mike_Summey: Sean that includes management fee.\
Sean_McLellan: What about apartment buildings?
Doug_in_CT: I have found every house I bought in CT was been a winner, you just have to wait a year or two and be surprised how much things have improved in your favor.
Al_Lee: Hi, Elba. I say you log in, then leave immediately. I guess you are back,
MarkCT: Chu you actually download the demo from http://www.weekendmillionaire.com/og/. You pick the one that is associated with your operating system.
Mike_Summey: Sean that depends on many factors and can run from 35-50% or even more depending on what the owner pay for.
elba_NY: Something botted me out altogether.
MarkCT: After it’s downloaded open it up and it will install itself on your computer.
chu: OK, thx Mark, i feel like a dummy.
Mike_Summey: elba, ask Mark to cover that question.
Bob_(vegas): I am still in need of some sort of spreadsheet that will track my properties for rent approx value taxes insurance etc….. any ideas?
elba_NY: Hey Im flying down there this wednesday and hope to meet with Vee.
MarkCT: No prob chu. If after you download it and have more questions send them to offer@weekendmillionaire.com.
yameen: this might be obvious - do lenders use different criteria when lending to an investor, rather than a occupier? does the lender “crunch the numbers” of the prospective proerty for noi, etc…?
Roger_Dawson: Oz, the second can foreclose and will get the property subject to the first mortgage. Your best bet here would be to approach the holder of the second and see if they’ll take 50 cents on the dollar for their note. If the owner doesn’t bring the note current, you can foreclose.
elba_NY: Mark, Will the offer generator help with balloon payments?
adrian: Mike…I’m going to be in the teleseminar tommorrow..re going to be there??
Mike_Summey: Bob, be patient. I have a great spredsheet, but I’m not ready to release it yet. It’s the one I’ve been using for over 10 years.
Doug_in_CT: Bob, I seem to remember Mike maybe offerring his spreadsheet at one time…now that he is done with the Offer Generator, he may move on that next.
Al_Lee: Elba, that is terrific. I am getting more and more glowing reports on Vee from all sorts of people. She does a terrific job.
Mike_Summey: good adrian, I’ll be there too.
oz: Thanks Roger, appreicate it.
adrian: great..!
MarkCT: Elba it will help in so much as the period in which you are financing before the balloon payment is reached. In the offer letter you can edit the wording of the offer to include the balloon payment before the letter is generated.
Mike_Summey: yameen, if you use the Offer Generator, you will not have a problem getting a banker to finance the deal. The banker who called me today is going to start using it to evaluate investor loans for the bank.
MarkCT: Doug Mike planted the seed in my head that that is what I may be working on next.
yameen: mike - haven’t used the OG yet - does it generate a spreadsheet or something to present to the banker?
Doug_in_CT: Great. Thanks for watering that Seed Mark, it should be a beautiful flower.
yameen: and does the banker then do some of its own due diligence?
elba_NY: Al, Guess what out of all the 3 or 4 vacant property ours rented for 850 $100 more than the other ones. We added “free basic cable with the lease, the good thing is that after that expense we still get $80 cash flow.
MarkCT: Hey I could use it too. Its honestly why I first developed the Offer Generator. Not to necessarily sell but to evaluate my own real estate investments.
Mike_Summey: yameen, no it produces offer letters to present to sellers, but the offers it generats will cash flow and the bankers will be able to see that when they run their numbers.
Al_Lee: Elba, that is terrific!
elba_NY: Thanks Mark
Mike_Summey: Hi smason
Bob_(vegas): elba did you buy in Dallas?
smason: hi
elba_NY: Yes I did Bob
Mike_Summey: Hi WPS
elba_NY: I could say Im one of Al’s recruit.
Bob_(vegas): tell the class about your buying experience?
Mike_Summey: big crowd tonight. Hard to get a question in, isn’t it?
MarkCT: I concur Elba. I bought a couple of properties through Al and they are doing very nicely.
Bob_(vegas): Al would you business model work in other markets?
MarkCT: Hopefully later in the year when I’m more solvent we’ll be doing business again AL.
elba_NY: Dallas will make me wealthy in the near future Bob. As far as the property, I did my homework like the book suggests and after the bank financing fell through the seller owner financed it.
Al_Lee: Mark, We will wait for you
Halle: Al, where are your properties located?
elba_NY: It turned out that he was an investor himself and wanted to help us get started.
yameen: elba, did you need to talk the owner into taking back financing?
WPS: Mike, I got your invite today to the LArry Goins & I signed up for Tues chat
yameen: there’s my answer
Al_Lee: Halle, Dalls/Fort Woth and surrounding areas
Al_Lee: Worth
elba_NY: Absolutely not yameen. He only wanted to get “rid” of the property.
Halle: Al, do you have an Investor Survey list?
adrian: Mike, Do you have any particular advice for real estate in the LA area?
MarkCT: Just curious has anyone made offers yet based on the results of the Offer Generator? If so how did it go?
elba_NY: We low balled the offer. He countered back with an offer that still left us with cash flow.
elba_NY: Everyone won.
Mike_Summey: Great wps, several people have asked me for ways to create some quick cash, but that’s not what I do so I arranged the teleconference with Larry to let him explain what he does and how he does it. I hope it is helpful for those of you looking to generate some quick cash.
yameen: why did he want to het rid of the prop, elba?
elba_NY: Getting older.
Al_Lee: Halle, I have several websites yo ucan look at. http://www.TurnkeyInvestments.net http://www.RentHouses.org and http:www.myRentProperty.com
Al_Lee: Halle, there is a lot of information you can access free.
WPS: Certainly will take alook at it
yameen: AL, do we get access to all your listings for free?
elba_NY: Mark it turns out that the offer generator helped us realize that we payed almost the exact amount we should have.
Mike_Summey: Has anyone used the FAQ book in conjunction with the real estate book to improve your investment knowledge?
WPS: yes mike I have
MarkCT: Excellent Elba.
Al_Lee: yameen, the listings are available to see for anyone, but only for sale to members of the Tortoise Club (www.RentHouses.org)
elba_NY: Thank YOU Mark for that program.
Mike_Summey: We wrote the FAQ book to be a companion to the real estate book the same way these chats are.
elba_NY: Is working very well for me Mike.
Halle: Al, I guess go the the www.RentHouses.org website to become a member of the Tortoise Club?
Al_Lee: Halle, Yes!
WPS: busy 2 nite; that’s good
chu: Al, are there opportunities to be had for ‘tax sales’ in the Ft worth area coming up soon? And I just received the FAQ book & am diligently going thru it, but it seems that investor psychology & win-win negotiating are the keys.
Al_Lee: Bryant, I have not been able to find deals as good in Austin as in d/fw. Prices are highre and rent slower.
Mike_Summey: Those of you who have the FAQ book, I’d really appreciate it if you would take a few minutes and post a review of it on Amazon. those reviews coming from people who have actually used the book are a big help to people thinking of buying it.
elba_NY: Halle is not only the homes, but the connections and experts that will help you upkeep your investment.
Doug_in_CT: So are you going to be on that call with Larry Goins tomorrow night? And did you pick him because he has a southern accent?
chu: OK Mike
elba_NY: Hey where is my twin Eric?
hypnotx: Mike… I signed up for the Larry Goins call as well. Based on our communications about the “tactics” of the Learning Annex, and based on the credibility of you and Roger, I felt it safe to assume that the call wouldn’t be another 60-90 minute “upsell / bootcamp / seminar pitch” like those that I sat through repeatedly in Chicago. I hope that is indeed the case, and that the call is an inclusive event. Thanks for the invitation!
Halle: Elba, you’re saying Al has a Property Mgmt. company to upkeep properties?
Eric(NE): elllllbbbbbaaaaaaa!!!!!!!
Eric(NE):
Al_Lee: Bryant, I have had managemnt companies in Dallas/Fort Worth, Ausitn, San Antonio, and Houston, but Dallas and Fort Worth are where I have always bought because I get the best returns
Mike_Summey: Doug, I’ll be on the call. I’m not that familiar with Larry, but I haven’t gotten any negative feedback on him either. I hope you find what he has to say helpful.
elba_NY: Halle, Al doesnt own any property managment Co. I think but we do use the same one.
elba_NY: Hello Mr. ericne.
MarkCT: Al’s site is actually a good place to practice with the Offer Generator. He has enough information about each property to see what terms make the properties cash flow.
Eric(NE): Hey
elba_NY: How are your investments doing.
Doug_in_CT: Mike, I have heard him once before and he seem like a reliable source. He does have that down-home Southern Accent thing going for him.
Eric(NE): My hypothetical investments are going great.
Al_Lee: Elba, that is right. The management company is not owned by me, not even in part. I am a customer and I refer members to them. They give a discoutn to members. If they continue to giv eus good service, I continue to recommend them.
Mike_Summey: hypnotx, I’m sure Larry will have something to sell, but I’d only recommend that you purchase whatever he offers if you think it will help you, not just to be buying another real estate program.
elba_NY: Absolutely, and thanks again.
Mike_Summey: Doug, you be nice about that Souther Accent thing…hear!
Doug_in_CT: Eric, you gotta get rid of those hypothetical investments, and get the real thing.
MarkCT: Sorry I’ve got to go my dinner’s finally ready. Please feel free to email me at offer@weekendmillionaire.com if you have any questions on the Offer Generator.
elba_NY: Eric, just keep doing the homework, the drive bys and you will soon find the right one.
Eric(NE): elba, do you just buy in the Dallas area then?
Mike_Summey: Mark, thanks for joining us even if it was just for a few minutes
elba_NY: When you see the one that calls you, run the numbers and plunge.
chu: I’m kind of ready to pull the trigger on Carlton Sheets offer sheets, but need to get my feet wet with your offer generator to get ready for the crach here in California.
yameen: i’ve seen property listings, in Houston, where the units, as listed, already seem to work, as far as NOI - is this too good to be true?
Roger_Dawson: Good night Doug
elba_NY: Yes for me it will be Dallas and its surrounding areas.
Sean_McLellan: I’m headed out–good night everyone.
Bob_(vegas): Mike/Al you ever aquire real estate with a lease purchase option
elba_NY: Thank you again Mark.
Doug_in_CT: Ok Roger Dawson, if you want me to leave, I will.
Eric(NE): I guess I don’t fully understand distance investing???
Al_Lee: Eric, most of our Tortoise Club members do not live in Texas; but they all buy investment propertie sin Texas
Eric(NE): Hmmmmmmm, do you go over this in your book?
Doug_in_CT: Bye, my seven year old son needs some rough house time.
Eric(NE): I just ordered it
Doug_in_CT: Goodnight all.
Mike_Summey: chu, the deals you create using the Offer Generator will not get you in trouble. The program recreates the method of buying I’ve been using successfully for over 30 years.
elba_NY: bye Doug
Roger_Dawson: Sorry, Doug, I meant Mark in CT. (I tried to spell the state and couldn’t figure it out)
Al_Lee: Bob, lease purchase is is sensitive subject in Texas now. There was a new law passed making it nearly illegal. An investor sellign to an investor using lease purchase is still OK, though
Mike_Summey: Bob, I’ve never use a lease purchase contract to buy.
Roger_Dawson: Hi Zert
Mike_Summey: Hi zert
Halle: The chat was nice, thanks Alesia
Eric(NE): Is there a way for a few people to join a private chat room here?
Al_Lee: Roger, the name of Connecticut is “Connect and (i) Cut”
WPS: mike I got to run, but will be onboard for the call tommorrow night
Mike_Summey: bob, our legislature is considering some new laws that will effect lease purchases also.
elba_NY: Eric once you have a good team in place things should work out. I went to Dallas not only because NYC is too expensive for us to start but because it was a way to start quicker.
Mike_Summey: Hi slaurain
Al_Lee: eric
Mike_Summey: Goodnight WPS
elba_NY: Double click on their name Eric
Eric(NE): OK
hypnotx: thanks, all! see you on the call Tuesday evening!
Al_Lee: Eric, you and some other people can use this chat room any time
Eric(NE): Elba, you don’t live in NY?
elba_NY: I live in Brooklyn NY.
Eric(NE): But invest mainly in Dallas?
Mike_Summey: Yes everyone, the chat room is always open so anytime you can reach an agreed upon time with one or more others you can use it.
elba_NY: Yes but I only have one property. We just put in an offer today for #2
Bob_(vegas): congrats
Eric(NE): Do you mainly buy them through Al?
Bob_(vegas): you going to get your moneys worth?
yameen: elba, was your first property somehow taken into consideration when trying to borrow $ for prop #2?
yameen: was it considered as income?
Mike_Summey: The teleconference call tomorrow night will be a first for us. The reason I scheduled it was because several subscribers have emailed me asking how they could make some quick money with real estate.
Mike_Summey: Hi uk-jv & Ed
elba_NY: I have not joined Al’s club yet that will happen once I move there. My husband cant wait.
Bob_(vegas): Hey Mike what year did True Grit go out of business?
Ed: Hello Mike, everyone
Mike_Summey: Bob ???
Eric(NE): Oh, I didn’t realize you were moving…..cool.
elba_NY: yameen we bought #1 as investment. #2 will be primary residence.
Bob_(vegas): I remember seeing it in the back of Boys Life of something
Mike_Summey: uk-jv are you in England?
Eric(NE): How’d you learn to buy a rental out of state elba?
Eric(NE): especially your first one!
UK-VJ: Hi Mike n gang greetings from London at 2am!!!
Mike_Summey: Bob, I’m not familar
yameen: Elba/Al - i thought you could only buy Al’s listings if you joined the club?
Bob_(vegas): sorry I switched gears
Mike_Summey: Roger, say hello to a fellow Englishman
Bob_(vegas): you mindset book
Al_Lee: I have been trying to convince Elba to buy propertie svia TurnkeyInvestments.net so that they are leased before seh buys them. She has actually done pretty well with the one she bought vacant. I snt her to my property manager to get it under managmenet and get it leased.
Bob_(vegas): when you were 8?
elba_NY: I did the same way I would have bought close to home. I picked the area read about it, then visited and finally ran the numbers.
LeslieNewYork: Goodnight & Thank you.
Roger_Dawson: Hello VJ, I was just on my other screen respondin to your Email. What are you doing up in the middle of the night?
Mike_Summey: I got ya now Bob. That was long ago.
Al_Lee: yameen, you are right. Elbe bought on her own and I gave her my management company as a favor.
yameen: elba - when you visted, did you meet with realtors, prop mgmt company, or just drive around?
Eric(NE): Wow……that’s confusing to me.
yameen: thanks, Al. just wondering about the dynamic, as i am looking in your direction as well!!
Mike_Summey: Eric, join the club…me too!
Bob_(vegas): I think it was 69 when I saw the ad last….was just wondering
Eric(NE):
UK-VJ: Hey Roger. Ready n waiting to learn from the greats 
Roger_Dawson: VJ, England has been a great real estate market, but much more expensive than the States.
Al_Lee: Roger, uk-vj obviously wants to talk with me.
Mike_Summey: Bob, that sounds about right. What confused me was your True Grit comment. That was a John Wayne movie. Grit was the name of the newspaper and I believe it is still being published.
Al_Lee: He saidn “greats”
elba_NY: I did the research on the area then met with realtors found the house on our own, bought it. Needed a PM, and I ask the only person that could point me in the right direction, and Al did.
Bob_(vegas): k
Mike_Summey: VJ does Roger type with a funny accent too?
Bob_(vegas): hehe
Roger_Dawson: Al, you can’t boast with Englishmen like that! They are all such modest chaps.
Eric(NE): I’m bowing down to you right now Elba……lol…..that’s awesome!
yameen: i’m planning a trip out to Dallas soon, and I’m wondering how to use my short time most effectively. did you find the actual house online, or did the realtor help?
Al_Lee: Roger, yes, I am sure.
UK-VJ: Easy guys, african indian rasied in england, go figure!!!
Eric(NE): The move from NYC to Dallas is going to be WAY different……must be exciting.
Mike_Summey: VJ, we’re just having a bit of fun.
Mike_Summey: NYC to Dallas is like moving from the kitchen to the swimming pool.
elba_NY: Eric just take your fears and measure it with depending on Social Security. I grabbed those fears and bagged them.
UK-VJ: come on you should know about dry english humour by now …
Eric(NE): true….that is scary.
Mike_Summey: VJ, we’re glad you stayed up late to join us.
Al_Lee: I moved from NYC to Texas many years ago with the US Air Force. The first thing that stunned me was that they put mustard on hamburgers here. I tried to sent the first one back because it tasyed funny, then I learne dthe ropes.
elba_NY: Eric my sisters live in near the Dallas area.
JD: That wasn’t mustard
yameen: ha!
Eric(NE): I honestly feel that if I don;t get this RE thing up and running retirement will only be a dream.
elba_NY: the decision wasnt to hard after buying our first property.
Al_Lee: Wello, they told me it was mustard
UK-VJ: hot tea by my side with a few bickies and i’m ready to learn
Bob_(vegas): texas was the first place I had a schlotskys sandwitch back in 1980
elba_NY: And you are right Eric
Roger_Dawson: Got to run folks, good chat!
Mike_Summey: Eric, I’ve said it many times before, most people spend 40 hours a week, 50 weeks a year for 40 years just for a Social Security check. Just one house, bought right, will probably pay you more in 15 years than the Social Security check you work you entire life to get.
Al_Lee: I saw a few bickies in a bar last night, but I told them I wasn;\’ *evil* t interested
Eric(NE): That’s insane to think about….
Ed: Mike, was finding funding an issue for you in the beginning?
elba_NY: Yameen we saw the house online and asked the realtor about it.
chu: I am also waiting w/ baited breath for how property is best sought after in the DFW area, we’ll be there soon & I’m interested in tax sales as found on bid4assets via governmentauctions.org
UK-VJ: bickies as in biscuits ie cookies
Al_Lee: Oh, that kind of bickies
elba_NY: Im learning a new language.
Eric(NE): I’m still very “in the dark” on the whole funding issue?????
UK-VJ: you sure dont get out much! anyways any hints on investing?
Mike_Summey: Ed, if you buy right, you can often finance close to 100% of a purchase…especially if you can get seller financing.
Al_Lee: chu, do you have the cash to pay 20% down payments for good properties?
Rick: al lee what are the property insurance rates like in the dallas/fw area for a 100k home
elba_NY: Eric, explain the funding issue.
Al_Lee: If you do, then go to http://www.TurnkeyInvestments.net and you will find good properties that produce positive cash flow.
Penny: great chat, goodnight all
Eric(NE): Mike, is this becasue the bank will have an 80% first mortgage and the seller will have a __% second?
Ed: so buy right meaning 30% or more below market value, have seller hold some paper and then finance the rest through traditional lender?
Mike_Summey: Eric, the Offer Generator program walks you through the steps to balance price and terms to creat 100s of offers that will all work with the noi. the more you use the program the better you will understand how it works.
Eric(NE): Elba, how do I present myself to a bank properly?
Sandy: chu….you might join Roy Stubblefield’s tax lien group on yahoo. He was from Texas. (He became ill, but the group still exists.)
Al_Lee: I need to run now. Family matters beckon.
Eric(NE): See ya Al!!!!!
Mike_Summey: Eric, many times I get 30-50% bank financing and the balance from the seller. If you can fog a mirror, the banks will deal with you on transactions like this.
UK-VJ: mike, any advice for investing in the UK?
Al_Lee: See you soon!
elba_NY: nite A.
Eric(NE): Mike, how much below market value do you typically buy properties?
Ed: what kind of sellers have you found will traditionally hold paper?
Mike_Summey: VJ, I wish I could help there, but unfortunately I don’t know anything about real estate investing in England. that is Roger’s area of expertise, but he has already left us tonight. Maybe you can join us earlier next week and ask him.
chu: thx Sandy, we’ll look him up. Now, as for Al_Lee I can buy good property as long as it’s cheap!! And I’ll be armed w/ the offer generator
Eric(NE): Elba, great credit score, limited cash on hand……
Ed: the problem i have run into with seller financing is that most want to cash out.. I guess its just a numbers game right….?
Rick: elba - can you provide an guestimate for the property insurance for 100k -150k home in the dfw area - al seems to have left the chat - thanks
UK-VJ: cool, I must of mixed up my time difference as I thought you were chatting about your new software
Mike_Summey: Eric, that’s a difficult question to answer unless you understand the difference between value and price. Most people only think in terms of price, but value is derived from the price you pay and how you pay it.
Bob_(vegas): I like mikes way of offering two offers one is all cash and the other is terms
Eric(NE): Elba, did you get it?
Mike_Summey: Ed, the only seller who can finance ar eones who have large equities. A seller can only finance that protion he owns.
elba_NY: Rick it all depends on the size of the home and other features.
Mike_Summey: Ed, all sellers say they want cash…that’s a given. You don’t know what they’re really willing to do until you present them with an offer.
elba_NY: I recently looked up a property for 90K the quote was $1,300
Mike_Summey: JV what time is it there now?
Ed: Ok, gotcha.
UK-VJ: 2.17AM
Ed: and you always present two offers, one is cash offering lower price and the other is terms higher price? is that that jist of it?
Rick: thanks - elba
elba_NY: Youre welcome Rick.
Mike_Summey: JV, it’s 9:17 here now, so co-ordinate your times for next week. We start at 8:00 PM which should be 1:00 AM for you.
Bob_(vegas): Another great chat…tons of ppl and lots of info…Night All
elba_NY: Nite Bob
Mike_Summey: Ed the concept of offering a low cash price and a higher price with very favorable terms is to smoke out which way a buyer is most likely to respond.
Ed: Ok, thanks.
UK-VJ: man dont forget its supposed to be gmt!! I’m trying to get a group of investors together any tips?
Mike_Summey: Everyone, it’s been another great chat, but I’m going to have to leave you as well. You are welcome to stay and chat among yourselves as long as you like.
Ed: Thanks Mike, G’nite all
Eric(NE): See ya Mike!!!!!
UK-VJ: but but !!
sermiex: Mike, I’m back…Great Chat tonite Good Night
chu: Good nite Mike, thx for all the info & strategies!
elba_NY: Nite Mike
Mike_Summey: JV, invite them to join our chat next week. You will get many suggestions form people in the chat.
Mike_Summey: Goodnight all
oz: G/nite… ya all
UK-VJ: thanks night night
UK-VJ: Hey wheres everyone going?
Charlie: My first chat–so much to learn–lots of good info, I just need to digest it all now. See you next time. Night All
UK-VJ: Hey guys any tips for a newbie???
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