Chat Transcript May 15, 2006
Posted on May 16, 2006
Mike_Summey: Hi Eric
Mike_Summey: Hi Yameen
Eric_NE: Hey Mike…
Yameen: Hi everyone!
Eric_NE: Hey Yameen
Mike_Summey: It looks like we’re early.
Yameen: Hi Eric
Eric_NE: No kidding…..I thought maybe I had the day wrong or something
Mike_Summey: Hi John
Eric_NE: Hey Mike, were your first deals mostly nothing down?
John_n_FL: hi mike & everyone
Mike_Summey: There are over 70 people on the website now, I guess they are reading other things.
Mike_Summey: Hi Marc
Mike_Summey: There’s Roger Dawson
marcsavage: Hi Mike
Mike_Summey: Hi pgarvey & Alan
pgarvey: hi all
Roger_Dawson: Hi Everyone
Alan: Hello Mike…Glad to see you
marcsavage: Mike how many New York weekend millionaire investers do you know
Mike_Summey: Eric, I put about $600 down on my first deal.
Mike_Summey: Hi Jeff
jeff_the_farmer: hello Mike, hello everyone
Eric_NE: Mike, what percentage was that?
jeff_the_farmer: Do you find it necessary to buy appliances and beds for a house that has none, for it to be rentable?
Alan: Just wanted to add from last week that I am a vetreran {applying for VA loans}
Alan: veteran
Mike_Summey: Eric, it was almost like a nothing down deal. Back then, it was much easier to do nothing down deals because mortgage loans were assumable and sellers could carry back fonancing for the difference.
jeff_the_farmer: some of the houses i looked at had remodeling done, I am assuming an investor bought them and fixed them. So no laundry, dishwasher, fridge
Yameen: are loans generally not assumable these days?
Alan: Has to be FHA now right?
Mike_Summey: Jeff, I furnish stove, refrigerator & occasionally dishwashers, but no beds or other furniture.
Yameen: that’s what i thought.
pgarvey: Mike, I made an offer on an 24 unit apartment building with good cash flow and I used the Offer Generator to generate the offer.
jeff_the_farmer: ok, thanks… so ill add that in with my offers
Al_Lee: Hello,All.
Roger_Dawson: Jeff: You probably need to provide appliances, but avoid providing furniture. People who rent furnished properties are much more transient than people who provide their own furniture.
Mike_Summey: Yameen, most loans have a due on sale clause in them.
Alan: Hi Al…..hy ..yah!
jeff_the_farmer: that makes sense Roger
Mike_Summey: Hi Al
jeff_the_farmer: When finding people to talk to in neighborhoods. Do you just pullover your car get out and let them know you are interested in buying in the neighborhood? Or do you park your car in the area and walk around the neighborhood finding people to talk to?
Alan: Karate chop
Mike_Summey: Hi noel
Al_Lee: Just back from a long weekend in Las Vegas a few hours ago. I am now 50% owner of the MGM Grand!
noeljackson: Hi everyone
Mike_Summey: Hi ken
Alan: Play it by ear jeff
ken: hey everyone
Al_Lee: Hi, Mike.
Alan: holy!
Mike_Summey: Jeff, when I’m riding around & see people outside, I will often stop and talk with them. I seldom get out and walk up and down streets.
Mike_Summey: Hi Bob & Sandy
Bob_Carr: Hello Mike
Al_Lee: OK, I exaggerated on the winnings, but I did come back a winner–a small winner!
Mike_Summey: Hi Doug
Yameen: regarding down payments - who usually wants the downpayment money? the seller or the lender?
Eric_NE: Jeff, you’ve got some good questions tonight….
Doug_in_CT: Hello Mike, Great Article in the Newspaper…again.
Mike_Summey: Yameen, down payments go to the seller.
Sandy: hi mike…just read your mindset book….feels different being here now.
Alan: Turn DP into a note?
jeff_the_farmer: thanks Eric, it’ll also be helpful for everyone else
Yameen: i’ve heard that lenders may also want you to put money down to get the loan - does that make any sense>
Mike_Summey: Thanks Doug…glad you are enjoying them. Why don’t you ask your local newspaper to carry the column?
jeff_the_farmer: Using the offer generator, the very most I can offer using seller financing is around 100k and using conventional bank financing 60k. I remember you saying that you bought properties for 50% less than what they wanted. In this case, should I making this offer for houses in the 150k range or stick with houses at or under 100k?
noeljackson: hi mike i am young invester just getting satrted how do the no money down
Al_Lee: Mike, I got your link to an AOL article on the changing RE market, but coudl not open the link. Can you give me a brief digest?
Doug_in_CT: I will do it. The Hartford Courant will be hearing from me.
ken: when making a website is it wise to use your full name as the site? or should you use a name like properties4all.com in stead of your name
Mike_Summey: Yameen, what lenders want in the way of a down payment is for you to pay the seller for part of the purchase and they will finance the balance. That is what the down payment goes for.
Yameen: got it mike, thanks.
pgarvey: Hey, Doug, where in CT are you located?
noeljackson: Mike can I get a no money down for a commercial property
Doug_in_CT: I am in n.e. CT pgarvey, Where are you?
marcsavage: How do you address the huge gaps in rent vs property values in high price areas such as New York
Al_Lee: Yameen, most lenders wnat to know that you have some m”skin in the game”. Something to lose if it goes “flop”, so you will not just lay all the risl off on them.
Alan: What paper is in the eastern Carolinas?
Al_Lee: risk off on them
pgarvey: Fairfield County, Milford to be exact. You?
Mike_Summey: Jeff, the offers you create using the offer generator are offers that will work with the noi. If you make the offers, you can always show the seller how you arrived at the offer price. You will go broke making offers that please the sellers without regard to the negative cash flow you will have when you do so.
Yameen: thanks, Al. i’m looking for that no money down deal in Dallas!
Mike_Summey: marc, there are some areas where you would do better to move further outside the immediate area in order to find deals that will work.
marcsavage: For example the low end price range is like $300K on the low end and rents are like $1500 to $2000 with taxes aroung 5000 and up
Mike_Summey: Where Alan?
Eric_NE: Al, do you know of anyone that was hurt in the recent Texas tornado’s??
marcsavage: Such as?
pgarvey: Mike, there is a small bug with the Offer Generator, if you enter an interest rate of 7.5% when it generates the offer it displays 7.5000005%
Alan: I may get a lot of wholesale deals in Ny , but with the economy this bad, will there be prime renters in the next 10 years?
Al_Lee: Eric, No, I don’t–I’m happy to say.
Mike_Summey: noel, there are many no money down deals in commercial properties, just be careful with them.
jeff_the_farmer: Oh ok Mike, so when I do make an offer on a 150k house, as long as I show them how I can only pay them 100k with seller financing. It won’t seem like I am low balling them. I do understand that i’ll get turned down alot, since it is 50k under their asking price.
Alan: Wilmington …North carolina coastal area Mike
noeljackson: Yameen i in texas can you get no money down
Mike_Summey: marc, where do the blue coller workers live…the hotel maids, taxi drivers, garbage collectors, etc.?
Yameen: thanks, noel. that’s where i’m focusing my search. any pointers?
pgarvey: Mike, what should you be careful about in commercial?
Mike_Summey: pgarvey, thanks. I have the programmer check it.
Alan: All the major companies are going bad…and its important to target the blue collar area…I think if I go south, I’ll get less wholesale but moore renter opportunities
marcsavage: tough question, those areas in nassau county (where I live) are still in the 300K plus range (retail) with 5K+ taxes
Mike_Summey: alan, I’m not sure about the name of the paper there. You can probably get it through Google.com
marcsavage: go into queens/kings county then we have 300Kish with 2500-3500 taxes. (retail)
noeljackson: mike when you say be careful what are the do and dont
Eric_NE: Marc, I think some area are just really, really hard to make the numbers work. the answer……move.
jeff_the_farmer: What are your recommendations on how long rent contracts should be? monthly, every six months, or yearly?
Mike_Summey: pgarvey, be careful about buying no-money-down deals that result in a negative cash flow. Use the Offer Generator program to avoid this situation.
marcsavage: Eric, That is a tough option, but a thought.
jeff_the_farmer: Marc, or move the area where you want to invest an hour away or so
Mike_Summey: that’s probably true Alan
Alan: Yeah. I was looking for Dental Hygiene jobs. Looking to get out of this area. I know what you all say…Opporyunities are everywhere, but I think I’ll be in tough luck if I invest here for the future Mike…Nothing is growing.
noeljackson: yameen I just got some property in texas where are the deals
Roger_Dawson: Jeff, I’ve always believed that leases just protect the renter. I’ve always used month to month.
Yameen: sorry, noel, i didn’t catch that - can you repeat?
marcsavage: Also a decent idea. obviously as a weekend investor 2 hrs round trip takes a bit away from part time investing
Mike_Summey: Hi Penny
Eric_NE: Marc, I know…..a very crappy option. I used to live in California and now live in Nebraska. Not because of real estate but I went to school here and stayed. Now it’s working out since prices are much much better here…
Mike_Summey: Eric, prices are much better in the middle part of the country right now.
Eric_NE: Roger, does your PM recommend that?
pgarvey: Mike, I am looking into a 24 unit deal and I was able to generate several senarios with the Offer Generator, it was great!
marcsavage: Eric, I’m sure there are wholesale deals to be found but much much tougher here
Alan: Eric, when/where did you make your first investment. Describe your emotions/mentality
Yameen: Has anyone checked out the Austin area?
Mike_Summey: Did everyone read the article I sent the link to in today’s email?
Roger_Dawson: Eric: by PM do you mean Prime Minister?
Eric_NE: Roger…..yup.
noeljackson: I just bought some in texas can tell me of some lender who does no money down [yameen]
jeff_the_farmer: Thanks Roger for the tip, I always thought it would be yearly for some reason
Al_Lee: I am associates with a group of 300 serious investors in commerial proeprties via tic’s nationwide and the ones who live in Claifornia are finding that their state tries to tax them to deat even on things that are in other states. Even on llc’s that re registered in other states!
Eric_NE: Alan, I’m a newbie. From the little looking around that I have done I have realized that my market will probably be a decent one for rentals. There are a lot of lower priced “blue collar” areas that should work. I’ll let you know by the end of the summer!
Alan: Watch out for southern Texas Morgellan’s Disease
Yameen: sorry noel, i misread your original post - i thought you were going to tell me where to get the no money down deals!
jeff_the_farmer: do you let tenants know that you’ll be raising rents every year or just raise it every year by a small percentage
Alan: great eric
jeff_the_farmer: without letting them know
pgarvey: Mike, on the topic of the Offer Generator, I have a small wish list, I wish the OG calulated (1) DCR - Debt Coverage Ratio (noi/debt Service), (2) Total Expense and (3)cap Rate
Penny: Oh, Hi Mike.
noeljackson: yameenyou tell me and what you think about austin
marcsavage: Any other NY feedback besides move or go an hour away?
Eric_NE: Mike, Al, do you use month to month rents?
Penny: sorry didn’t see that right away, was reading chat
Roger_Dawson: Jeff, I’d prepare them for an annual increase, but always give the a reason, such as taxes going up or increased business expenses.
Alan: marc? concerning what? NYC investing?
marcsavage: Alan, yes
Al_Lee: Eric, sometimes a tenant does not renew a least after its term and goes on month-to-months rental a about 10% premium on the rent. I had one guy do that for 6 years. Then he signed a new lease
marcsavage: Alan, Not NYC per se but long island and NYC
Alan: Dealing with the city as a beginner is a bad idea. Do you ever plan to move first?
Mike_Summey: jeff, I try to raise rents by a small amount to keep up with inflation each year. It’s not a lot, just enough so I don’t lose buying power due to inflation. I call it nuisance raises because they are small enough that a tenant will not be able to afford to move because of it, but not enought to run them off.
ken: does anyone have any insight if using your full name as your website to promote your business is a good idea
Alan: long island may be tough
Yameen: noel, i wish i knew. I hear good things about Austin, with Samsung coming in.
noeljackson: Are there any invester on line that can finance property for no money down
marcsavage: Alan, not really. right now moving to a biger house in a more upscale area so not in the near term (moving out of ny)
Mike_Summey: ken, that may depend on your name.
Alan: That’s just it…nothing is improving in Rochester. The Fast Ferry went belly up. I was hoping to invest in that area
pgarvey: Doug, what is you experience with single family houses in your area?
jeff_the_farmer: would a 5% increase every year be too much?
ken: my domain is kenhicksjr.com
Roger_Dawson: I would use your full name unless there’s a reason not to, such as being a politican in the area, or known as a wealthy business person.
noeljackson: yameen were in texas do you invest
ken: Roger, forsure i’m none of that.
Yameen: noel, i don’t - i’m looking for that first wonderful investment. doing a lot of research, though.
Eric_NE: When I use the offer generator it seems like making a down payment does not have a huge impact on helping the numbers crunch. That is, if you want a return on the DP. A modest return for the DP vs. No down payment comes up with almost the same purchase price. Am I doing something wrong?
Mike_Summey: noel, there are deals that can be financed with no money down, but they are usually on the purchase of properties that the seller’s have very large equities in.
Doug_in_CT: I find they are good pgarvey. Here in CT, we are having good moderate appreciation. You can make cash flow with a 10-15% deposit.
Mike_Summey: ken, I have mikesummey.com, but it brings you back to this site.
marcsavage: Alan, where are you from?
Alan: Rochester, NY
marcsavage: and where are you looking?
marcsavage: or should I say investing
Alan: The only real place to be in Upstate {unless you are retired or vacationing}
marcsavage: right like Buffalo, albany, etc
Mike_Summey: Eric, no you are not necessarily doing anything wrong. You are discovering the fact that if you pay yourself a return on the down payment, it’s not much different that paying the bank or seller a return if they finance the full amount.
Mike_Summey: Hi hua
ken: www.financialhelpservices.com
hua(ca): hello mike
Alan: Those areas are not good. Syracuse University is what makes that community thrive
noeljackson: mike ihave deal that the selles is willing to carry 10% down and i can not get that finance
marcsavage: Are you investing in rochester?
pgarvey: Doug, in Fairfield county the prices for single family is quite high, it’s impossible to cash flow, median prices are at 300k
Eric_NE: 0% interest with a higher principal = X% interest with a lower principal ?? -Doesn’t the financer get the same amount of money in each scenario? What’s the benefit in presenting a bunch of different offers if they’re going to get the same amount of money with any one they choose?
Alan: I learned from seasoned investors who made it thattalthough it didn’t turn bad for them, they should have applied their money elsewhere. We are not talking speculation neither
Mike_Summey: noel, I don’t doubt that. Most banks want you to put money into a deal or they want the seller to finance a much larger portion of the purchase…40+%.
pgarvey: Doug, Are you from the Hartford area?
noeljackson: Mike i look at some deal were the seller i willing to be creative and i still can not get it done
Doug_in_CT: Yes we are about 17 miles north and east.
Mike_Summey: Eric, one seller may be looking for cash, another may be needing an income stream.
Mike_Summey: noel, that may be because the deal is not a good deal.
Alan: Marc, I am seriously looking for a house first {cut my teeth}. If I do invest. it will only be to practice. I really need to invest in Lower VA and below
jeff_the_farmer: What would be a good reason to extend a loan to 20 years?
Eric_NE: Mike, if they’re looking for an income stream why does the interest rate matter to them? They’ll just have a lower purchase price. Every offer results in them getting the samea mount of money in that “income stream”???
Mike_Summey: jeff, to lower the payments.
pgarvey: Mike if a seller is willing to finance 50% of the asking price does a buyer still require to put a down payment?
Eric_NE: Jeff…..NOI maaaaaaan. It’s all about the N, O, I.
marcsavage: Alan, so not really investing in NY?
Mike_Summey: Eric, if they get cash, they may not be able to invest it at a large enough interest rate to equal the 0% payment they could receive plus if they get all cash, they may have a tax issue.
Alan: Besides farming, no…i am getting too many cautions against it
Yameen: Need to cut out early tonight, friends. See you all next week.
jeff_the_farmer: I find that doing longer loans, gives me access to properties that are middle to upper class homes. But that I can possibly rent at the same price as the lower to middle class homes. Wouldnt this be a plus?
noeljackson: Mike dont know if it the broker but even even when i send the income and expenses to him and he look at it he still want money down
marcsavage: yes it is a tough market, no doubt. I think it can be done just probably harder than most areas.
Mike_Summey: pgarvey, most banks are happy to finance 50% or less of a purchase if they can get a first mortgage position. In cases like that, the seller is in effect standing good for the purchase since they have so much equity in it.
Eric_NE: Mike, I realize that. However, just in terms of seller financing. Why make many different offers in terms of just that financing? The only thing that’s changing is the principal and interest rate. the bottom line is staying the same to the sellers. I only talking about the seller financed part of the transaction.
Mike_Summey: jeff, that can work, but I wouldn’t extend the loan any longer than necessary.
Mike_Summey: Hi elba
marcsavage: Mike, what is your feedback on the New York market Long Island, Queens, Kings, etc
Eric_NE: Elba…..hola.
Alan: Many of my patients {investors} investors think that investing in a dying area is not a good future move. All these baby boomers filling up the southern regions soon. Who knows
Al_Lee: jeff, I routinely use 30-year fixed0-rate financing and get good Cash-on-cash ROI’s–especially if I also use an interest-only option. I have recently bought a couple of houses for cash, though, because it was necessary to get the price I wanted to pay. I will refinance them after 6-12 months and net more than what I paid for them and will still own the houses and the cash flow they throw off.
elba_NY: good evening everyone. Hey Mike, Al, Eric,Doug,Penny, Roger and everyone else.
Mike_Summey: Eric, that is not correct. There are many advantages a seller receives from a 0% interest deal, not the least of which is a virtual guarantee that they will receive their money in monthly payments rather that a lump sum.
Al_Lee: Elba, how is it going for you?
marcsavage: Alan, you actually think NY is a dying area?
Penny: Hi elba.
Eric_NE: Elba “everyone else” isn’t appropriate. We want name by name!
Roger_Dawson: Hi Elba!
elba_NY: I could be happier Al. The last deal fell trough. Moving plans are now delayed.
Al_Lee: Hi, Roger. I didn;t even see you on the list of names because I never scrolled it down. Didn’t mean to slighty you.
noeljackson: Mike whats the best way to no money dowm deal to get them finance
hua(ca): Mike, like you have no reason to pay off 0% early?
Al_Lee: Elba, what tyep of deal fell through?
elba_NY: Eric 
Me dont know everyone else. I hope to get to know them though
Eric_NE: Mike, isn;t the bottom line staying the same if you don;t pay off the loan before it’s done running it’s course?
Alan: Let’s put it this way…it isn’t ever going to grow. Not with jobs….we are being taxed right out of here. Too many of the seasomned investors can read the wat companies like Kodak are downsizing and moving people out of here.
Roger_Dawson: Hua: that’s right. If they pay you off early you have to pay taxes on the money/.
elba_NY: Al, the property we were closing on.
Mike_Summey: noel, the best way is to find properties that the sellers own outright or owe very little on. You can then get a small bank loan so you can give the seller some cash and then ask them to finance the balance.
noeljackson: HiRoger what the best way to get 0down on any property
Roger_Dawson: I was in Glen Cove NY on Thursday and it didn’t look like it was dying to me.
Al_Lee: Elba, was it in Texas?
Mike_Summey: hua, that’s correct.
hua(ca): Mike, sounds like we should all study how taxes work because different income bracket may have different benefits.
elba_NY: But Of Course Al.
Alan: Sorry to lament…many of the others on here face different issues like in mass & CA…Mike is in a great area
marcsavage: Roger, I don’t think NY is dying either
Alan: Al is in one of the best I hear
Al_Lee: Elba, were you going to live in it? Why does that deal falling through stop you from moving?
Mike_Summey: Eric, there are many options between full bank financing and 0% seller financing.
Roger_Dawson: Noel, I’m not a big promoter of nothing down. Sellers will only take that as a last resort, so you’re unlikely to get a desirable property that way.
Eric_NE: I’m massively confused on how to determine the proper maintenance reserve? Since this number can have a huge impact on getting the numbers to crunch how can I be surer of what to use? What’s the “average” for a 20-year-old home with no major problems (I’m sure it varies greatly but any guidance on this will help me at this point)?
Sandy: Can anyone say which is the “prettier state”…S Carolina or N Carolina?
Alan: Glen Cove is where Roger?
marcsavage: Nassau County
marcsavage: r end
jeff_the_farmer: I remember Carelton Sheets saying on areas with higher prices houses, find out where the Hotel works work, the gas station attendants, etc. That will be the area where you can invest. Every area I think has places like this, but they may be harder to find than in other places.
marcsavage: *higher
Roger_Dawson: On Long Island where the money meets the sea!
Alan: Near the city? It isn’t dying….
Mike_Summey: My area is very expensive. Too many outsiders coming here with huge amounts of money and bidding up the prices.
noeljackson: Roger i dont have a lot off capital to work thats why
marcsavage: Roger, what are your thoughts on NY investing Long Island, Queens, Kings etc.?
elba_NY: I agree Jeff
Mike_Summey: Eric, I use 10% for houses in good condition up to about 10 years old and then gradually increase the percentage as the age goes higher or property condition is less.
Roger_Dawson: Noel, perhaps you can partner with something who has money but doesn’t have time to find the properties. Ask around at your local investment club.
Alan: Mike you have to secretly move to another area. You saturated it with your hi profile. Too many people want to rub up against the master summey
Eric_NE: Thanks Mike.
Alan: lol
Eric_NE: You could hear a pin drop………lol.
Alan: I think we are all reflecting on this spiritual moment
jeff_the_farmer: Mike, how much were the houses you were buying that were less than 10yrs old? Houses that are that old are usually above 175k
Mike_Summey: Alan, there are always deals everywhere. The art is finding them. Like walking, the first step was a bit shaky, but each one got easier. Learning to be an investor is the same way.
jeff_the_farmer: i remember reading that you just bought some that were only 4 yrs old?
Eric_NE: Good analogy Mike!
John_n_FL: mike/roger, do you reccomend joining an investment club?
Eric_NE: I’m very shaky right now…lol.
Alan: Very true Mike, but why should I be an absentee investor and put my future on shaky ground. Economywise?
elba_NY: Get that first one Eric.
noeljackson: Mike if you find a good deal and you take it to your bank and they work it any which they wont give you the loan
Eric_NE: Thanks Elba……it’s gotta happen this summer.
jeff_the_farmer: I think that if you follow the way that he buys homes, you won’t be on shakey ground at all
marcsavage: Elba, you invest in NY
Roger_Dawson: Yes, John, joining an investment club is a great idea. You’ll find a list on them somewhere on this website.
pgarvey: Mike/Roger/Al, What is you feels on commerial real estate, especially appartment buildings?
Alan: it not the way you BUY the home…its the vacancy rate of the future
elba_NY: No Marc. We invest in TX.
jeff_the_farmer: but finding deals like that are tough to find, but you’ll definitely be sure that it will make money for you in the long run
Doug_in_CT: pgarvey. You might want to take a look at Waterbury, CT. Here is my “hot web site” of the night it is called:
Mike_Summey: jeff, the prices vary from market to market. You can buy basic 3 BR 2 Bath homes in some areas in the $100,000 range while they may cost $300,000 in other areas. Usually, rents also vary, but possible not as much as price. That’s why you have to learn to structure deals that will work with the NOI and stick with this philosophy.
Al_Lee: I think you need to start with single family houses and them move up to apartment houses. There is a new set of problems you deal wiht in apartments.
noeljackson: elba where in texas
Doug_in_CT: http://www.bestplaces.net
hua(ca): Mike, do you finance most of your deals through seller financing?
Mike_Summey: pgarvey, commercial & multi-family properties have great potential, but they are not for novice investors.
Alan: Zert was from my area …i wonder if he ever chats here anymore
Roger_Dawson: pgarvey, commercial usually means shopping centers, warehouses and office buildings. Apartment houses are called income properties. You get better cash flow with apartment buildings over sfr, but you sacrifice liquidity.
elba_NY: In Dallas/FtWorth Noel.
Mike_Summey: hua, I use whatever type of financing I can find that will work. I do a lot with both banks and sellers. No real preference other than the deal must cash flow.
jeff_the_farmer: Mike, earlier you mentioned to get a stove and refrigerator, and maybe a dishwasher. But I noticed that you left out a washer and dryer. Don’t buy these?
Alan: Watch out for Morgellans disease elba lol
Doug_in_CT: bestplaces.net will tell you that “Median Home cost” in Waterbury is $155,000 and appreciaiton is running at 13%.
noeljackson: elba what you thik about austin
Mike_Summey: jeff, don’t provide washers & dryers. They are nothing but trouble and you won’t get a penny more rent with them than you will without them.
Alan: Interesting Mike….what should you provide to tenants if the home was completely empty?
elba_NY: Alan it may be naive. What in the world is Morgellans Disease? ;> :p
Mike_Summey: jeff, another name for “tenants” is “washer & dryer destroyers.”
jeff_the_farmer: ohh, hahaha
elba_NY: Noel, I do not know much about Austin. All my research goes into Dallas and Ftworth.
Al_Lee: Roger, I would add that you get better cash flow if and when occupancy is up and you resident manager is doing a good job and not stealing yoru profits. The tenants you deal with in most apartments is not the same class as in most sfh’s. Profitability fluctuates much more in apartment buildings than in sfh’s, too.
Mike_Summey: Alan, I’d provide a stove & refrigerator. I’d only provide a dishwasher if there was one already built in when I bought the property.
elba_NY: Thats funny Mike.
Eric_NE: I understand that this forum is used to discuss real estate investing. I do not intend to abuse that purpose at all. However, I wanted to let all of the good people here know of this site (www.PrisonersOfGreed.org). It has to do with the disturbing industry of “Puppy-Mills”. Please take 10 minutes after the chat today to spend some time on the site and try to understand the awful practices that are used to supply our countries pet stores with puppies. It’s terrible! Never buy a puppy from a pet store.
Roger_Dawson: Good advice, Al
Eric_NE: Try and spread the word to everyone you know. I have made a nice e-mail that can be sent out to anyone. You don’t even have to put forth the effort to come up with an appropriate e-mail to send out to people. Send me an e-mail at egl2004@gmail.com and I will send it to you to forward on.
Eric_NE: Sorry for my preaching. I hope I didn’t interrupt the discussion too much. It’s why I waited towards the end……
Mike_Summey: Eric, we appreciate your concern, but let’s stick with real estate here.
Mike_Summey: Hi Darrell
noeljackson: Elba so what about dallas you got any good lender there that can do 100% finance
jeff_the_farmer: Mike, if there’s a space in the kitchen were a dishwasher would be, that’s when you recommend getting one?
Mike_Summey: jeff, that’s correct. Better to put in the dishwasher than to leave an empty hole.
pgarvey: Al, the major benefit I see in apartment houses is if there is a vacany you can still cash flow with SFH if you lose a tennant there goes your cash flow and profit for the year and worse you now have to pay the mortgage and all expenses out of pocket.
Alan: To put it simple {from what I heard}, it is a disease of a thread like parasite that lives under your skin {hundreds} that move around creating incessant and neverending itching. Parasite fibers actually burrow out of your skin. There has been a recent outbreak in ssouthern Texas {originated in Africa}
elba_NY: Noel, not necessarily. I’ve done a lot of things on my own but I strongly recommend you research the Tortoise club. It has all kinds of connections and Al Lee will be more than happy to tell you about it.
Alan: neverending torture…no cure yet
DARRELLLEWIS: hi there everyone
elba_NY: Al, could you give noel your email please?
noeljackson: elba you got any deal to tell me about
jeff_the_farmer: I have an appointment tomorrow with my buyers broker to explain why I have 2 offers on each home… one low cash and other high with seller financing. Have any suggestions to make it easier to explain? She has never seen anyone do offers like this
Al_Lee: Elba, go to http://www.RentHouses.org and click on the “email Al” button or link at the bottom of the page. That is the best way to email me.
Mike_Summey: pgarvey, what’s the difference between having 2 vacancies out of 10 homes or having 2 vacancies out of 10 apartments? I think what Al is talking about is the better quality tenants you tend to attract with sfhs. Apartments also have many expenses and problems that you don’t have with sfhs.
jeff_the_farmer: I made 8 offers, but she seems a skeptical on why I made offers like that
elba_NY: Sorry noel, I dont. Not right now anyway.
Mike_Summey: jeff, did you make all 8 offers at one time?
elba_NY: Thats a good one Jeff.
noeljackson: elba I am young invester so i need all the guidance i can get
jeff_the_farmer: i made offers on 8 different houses, with 2 offers each… low and high
Mike_Summey: i asked the question earlier, but got no response. Did any of you read the column I reference in today’s email?
jeff_the_farmer: same time, 2 days after I looked at them with my buyers broker
Al_Lee: Mike, with 16 units or more in Texas you must have a resident manager. You need to put a lot of trust in that person.
Sandy: Mike, I’ve been reading it thruout this chat
elba_NY: Hey noel so Im I. Eric and I are in the Weekend Millionaire unofficial 20 something club.
ken: mike, no i just got in running very late
Mike_Summey: jeff, who seemed skeptical, the broker?
Alan: how do you guys paste links onto here?
jeff_the_farmer: yea
Penny: Yes Mike I read & forwarded to several people.
Eric_NE: “Unofficial 20 something club” yes!!!
Al_Lee: Mike, that is with an apartment building, nto with sfh’s
Penny: Another great article.
jeff_the_farmer: but I want to make these offers regardless of what she thinks. but I figured if I explain it better, it’ll put her more at ease
ken: alan not sure i tried to send you a PM not sure if it went
Al_Lee: You will see a lot more bad checks in apartments than in sfh;s
elba_NY: Everything I’ve learned has been from mike and Rogers books, this chat and Al Lee’s radio show and book that I am now reading.
ken: that one i did was short so i typed it in
Alan: PM Property Manager?
ken: private message
ken: pm
noeljackson: elba whats the 20unofficial somthing club
Bob_Carr: Mike,I read it every Friday, great material.It really makes you think !
jeff_the_farmer: she gave the usual… almost no one will do seller financing. That’s true, but I want to make an offer with it regardless and be consitent about it
Al_Lee: Elba, I forgot that you were reading my book. I hope you enjoy it
Mike_Summey: jeff, why don’t you have her sit down with you and show her how you create the offers. Ask her if she knows a better way to make an offer that will work with the noi.
jeff_the_farmer: yea, that
Eric_NE: Jeff, ask her how many rentals she owns…lol.
Roger_Dawson: For the next two weeks I’m going to leave you in Mike’s capable hands. I’m off to Bogota Columbia to conduct some seminars.
Alan: were you going to give me a list today?
jeff_the_farmer: I was planning to do that, that’s why I made the appt. for tomorrow morning
Mike_Summey: jeff, if I listened to all the reasons brokers have given me that sellers would ot finance, I’d own about half the property I own today.
jeff_the_farmer: going to bring the calculators and such
elba_NY: well noel. According to Eric and I we are the weekend millionaire who are starting our wealth building in our 20’s and hope to retire by the time we are at least 40 something.
noeljackson: al lee i heard you have all the connection
jeff_the_farmer: yea, when i hear that. It usually goes in one ear and out the other 
Penny: Roger have safe business & enjoyable business trip.
Mike_Summey: Hi zert, someone was asking about you earlier.
elba_NY: Jeff I must say one but I am very proud of my one property.
Alan: zert, have you bought any houses yet?
Mike_Summey: Roger, don’t get captured by the natives.
Roger_Dawson: Thanks Penny. Then when I get back I’m off to Nigeria to do seminars.
elba_NY: Columbia Roger?
Al_Lee: noel, I do not know if I have all the connections, but I seem to have enough to have helped me be a successful investor for 32 years and for about 100 of my club members around the US the do the same.
jeff_the_farmer: ooo thats nice elba, must feel good
elba_NY: Who needs negotiating tips there?
Penny: really busy ehy?
Roger_Dawson: No Elba, Colombia. Cocaine and emeralds.
jeff_the_farmer: so hopefully all goes well with this broker, because I am probably going to make another 10-15 offers at the end of this week. Thanks for the advice Mike
Roger_Dawson: Yeah, but it still beats wages.
elba_NY: oooh now it makes sense 
jeff_the_farmer: Have an appt. with her again to check out 15 houses at the end of the week
Al_Lee: I hope you don’t have to negotiate with the bad guys to save yoru hide in Colombia.
zert: Mike - Good Evening who was asking about me?
Penny: Roger, bring back some emeralds to that beautiful wife of yours,. Leave the cocaine there!
Mike_Summey: jeff, keep making offers and don’t get discouraged. If you only have one accepted per year, you will be a wealthy man in a few years.
zert: do anything !!
elba_NY: It sure does Jeff. hopefully Eric will enjoy that feeling this summer.
elba_NY: Good luck tomorrow.
Alan: i don’t think PM is working
Mike_Summey: Who asked where sert was earlier?
Mike_Summey: zert
elba_NY: or whenever you present them jeff.
Alan: I was Zert…you invest in Penfield yet?
Eric_NE: I sure hope so Elba.
John_n_FL: mike , what about someone starting in late 50’s, do anything different?
zert: Alan - mainly in the city
noeljackson: Al lee i am iivesting in texas know nut i need some no money down financing
Alan: tell me about it…i’m interested to hear your experiences. You are in Mike’s new FAQ book
Doug_in_CT: Goodnight. Gotta go read some second grade books to a sleepy boy.
jeff_the_farmer: thanks for the encouragement elba, mike
Mike_Summey: Roger is off the fly around the world teaching people how to negotiate. Chasing after a ton of money.
hua(ca): lol mike.
Al_Lee: noel, if your credit is good I can probably help you to get 100% financing–if the deal is good!!!
Mike_Summey: John, a good friend of mine started at age 60 and by age 65 had an income exceeding $100,000 per year.
Alan: Who was the bad Propert Manager you dealt with. You can save me a phonecall
Sandy: Mike, now that is what I want to hear!
Eric_NE: Mike, did he just buy a bunch of property outright?
Mike_Summey: John, what you accumulate in the next 5-10 years will be that much more than you will have if you don’t start.
elba_NY: That is great encouragement MIke. John, better to start now at 50 than wait for that social security mess.
Penny: Goodnight Mike & all. Gotta run!
zert: Goodnight Doug/ The way it is going with my son, I am going to need to repeat 3rd grade !!!
Alan: you there zert?
elba_NY: Nite Doug.
Mike_Summey: Eric, he bought about 20 properties during that time period. He had good credit and some cash to invest so that helped.
Al_Lee: I really nee dto run now. I have a daughter waiting for me to tuck her in. I have been away for three days, so I need to keep her happy.
noeljackson: al lee what you call good credit you tell me do you have my email are send me yours
elba_NY: Nite Al.
Al_Lee: Talk to you all next chat
jeff_the_farmer: thanks for the help everyone have a good night all
jeff_the_farmer: thanks Mike for staying a few minutes later than usual
Al_Lee: noel, go to http:/www.RentHouses.org and click on the “email Al” link at the bottom of the page.
Mike_Summey: I’m going to have to run also. See you all next week. I’ll try to have a guest to fill in for Roger.
pgarvey: Mike, it also help if he was not from Connecticut
Al_Lee: Goodnight
Alan: uc Mike
Mike_Summey: Goodnight all!
Alan: Kick them all Al
hua(ca): goodnight
elba_NY: Nite Mike.
zert: Mike - just wanted to say a quick thanks for all of the support and guidance. It looks as though I have an offer accepted today
Eric_NE: See ya everyone.
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