Chat Transcript June 26, 2006
Posted on June 27, 2006
1099: What time does the chat start today. I am from N.J
n604: Hello
Corey: hi n604
n604: it’s my first time here. how often is this chat?
Corey: it is every monday night at this time. what part of the country are you in
n604: i’m in brooklyn, NY
n604: you?
Corey: everyone will start logging on in a few moments. I am from Jackson,ms
n604: cool
n604: do you know if there’s a special guest tonight?
Corey: Not that I am aware of for tonight but you never know.
Corey: Hi Hottie
hottie: Hi Corey
hottie: Hi All
hottie: Corey, do you get the e-newsletter every week?
Corey: Not the e-newsletter just the link for Mikes newspaper column
hottie: Corey, how did you subscribe?
jeff.the.farmer: hello everyone
hottie: Hey Jeff the farmer
hottie: Hi Ken
jeff.the.farmer: has anyone been checking out houses lately?
ken: hello
hottie: Jeff the Farmer, I have in our area
Al_Lee: Hi, everyone
ken: I just got a contract on one today. well it was yesterday.
hottie: Hi Al Lee
Corey: Hi Al
jeff.the.farmer: that’s nice!
ken: i’m working on a rehab deal now
hottie: Hi Mike
Mike_Summey: Hi everyone
n604: so how’s the RE market in jackson, ms?
Al_Lee: Hi, Mike
Corey: Hi Mike
jeff.the.farmer: hello Mike
Mike_Summey: Hi 1099, that’s an interesting handle.
hottie: N604,slower than the rest of the US
jeff.the.farmer: does anyone know if the CD version of the generator is going to be an update of the downloadable version?
1099: Hello every this is 1099 and it is my frist time on the chat line with everyone
jeff.the.farmer: or the same one?
jeff.the.farmer: hello 1099, nice to meet you
JerryIL: Me too, 1099. Hello, everyone!
hottie: Hi 1099
jeff.the.farmer: hello Jerry
Mike_Summey: jeff, the Cd version will have a few differences, but they are mainly corrections of some typos & and other minor changes.
Al_Lee: Hello, 1099. Does that handle mean you want you income without taxes withheld?
jeff.the.farmer: is it possible to get an upgrade if you already have the downloadable version?
JerryIL: Will those changes be available as updates to those of us who downloaded?
Corey: Mike on va and fha loans is it a long process to assume these or do you prefer to get your own loan
Mike_Summey: JerryIL & 1099, we’re glad you have joined us. We’re a friendly bunch and you can ask anything you want.
Mike_Summey: Hi Shane
1099: same here jeff here to learn whatever that I can
ken: Al-lee are you building homes and renting them?
Shane_Ky: Hey Mike
JerryIL: Great, thanks, Mike.
Al_Lee: ken, yes I am
1099: No it is easy for me to remember LOL
Mike_Summey: Jeff, there isn’t enough difference to worry about. We offerred the downlaod version for 90 days to get feedback before committing it to the CD format.
jeff.the.farmer: Oh ok, thanks for letting me know
ken: what type of floor plans are you using? I was looking at a prefab 2 story home to be built, or a duplex.
mistapaants: hello
Mike_Summey: Corey, the assumption is not as bad as getting a new loan, but you will havve to provide enough information for them to approve the assumption.
jeff.the.farmer: Mike, in the book you never mentioned anything about inpecting basements, any thoughts on them? I’ve seen a few with minor leaks, during heavy rain. But the house itself is in very good condition.
mistapaants: any multi family rental owners here?
Mike_Summey: Hi mistapaants
Al_Lee: ken, we will be closing on 7 houses in our first project within the next couple of weeks. We have already startd another project of 7 houses and are looking at the land to build 20 more
Mike_Summey: Hi Elle
Al_Lee: ken
1099: Mike Iam reading your book and i think i will be better off with this info
Corey: Al I have talked with others about your market there. Is it basically possible to by homes there at asking prices and still cover the rents.
Al_Lee: ken, out best performmer seems to be a 4/2/1 1450sf
Shane_Ky: Iam a multi family owner
ken: al-lee, explain 4/2/1
Al_Lee: Corey, that is right. Even better if you can buy a little below market.
mistapaants: how do you finance your properties… i have one (my first, owner occupied) on a fha… i want to buy another, but i have little cash for a down payment…
Al_Lee: ken, 4-bedroom, 2-bath, 1-car garage about 1450 square feet, one story
Corey: Mike the information I assume is the normal things as verify income and credit
Mike_Summey: jeff, & everyone else, be sure to download and use the inspection form on this website. It’s in the downloads section. You can go to it and print it as often as you like. It’s another of the FREE things we do to help our students.
Mike_Summey: 1099, which book are you reading?
Shane_Ky: get an updated appraisal see if you have any equity there. if so borrow against it
Corey: Al what type of homes do you try to focus on such as price and size. Are you in Ft. Worth?
1099: Mike it must be really hard to answer so many question from so many people.
Mike_Summey: Hi Penny
ken: al_lee thats what i thought, I was looking at row homes to,but the new plan is single families. I missed out on some land because i hesitated plus i don’t have my plan for building anything yet, but you have to act fast on land
Penny: Hi Mike
hottie: Mike, do you do your own inspections? we have a team that we use to do inspections for us
Mike_Summey: 1099, they don’t call me fast fingers for nothing! 
Al_Lee: ken, we sold the houses for $106k, but most of them went to members of my Tortoise Club and they paid $101k because there is no commission to pay.
jeff.the.farmer: i did download that, but there isn’t a section for basements other than the water heater and heat system
JerryIL: Anyone have experience in Chicagoland?
Al_Lee: The Section 8 rents, net of utilities, is $1030 for these hosues and we have a great lender who gets really good financing.
Shane_Ky: with the rising cost(wire etc,) It looks like it would be hard to build rent and cash flow
Mike_Summey: hottie, I think you could use the inspection form on this website and do the inspections yourself. It there are problems, you may need to get help estimating rapair costs, but with the form you should be able to find the problems.
1099: Iam reading your investment for the weekend millionaire is so far is a very good book
jeff.the.farmer: most basements ive seen are unfinished, and dirty. Very few are finished. Should I just disregard the basements as long as there are no major leaks?
Elle: Since I am new to this Chat room can you tell me if a person can ask for specific advice on a situation?
Al_Lee: Elle, yes!
mistapaants: if anyone can help… i am looking for financing strategies (close to 100%) for non-owner occupied 2-4 family untits (also, my goal is to buy and hold for cash flow)… any thoughts…
Mike_Summey: jeff, there isn’t a section for the sky either. Some things are just obvious. If there is water, you probably have a leak. If there are big cracks, you probably have a foundation problem.
Mike_Summey: Elle, you can ask anything you want. If I can’t answer, maybe one of the others will.
jeff.the.farmer: ohh ok, gotcha
hottie: jeff the farmer, what part of the country are you in?
jeff.the.farmer: just thought there was something else besides those to look for, thanks
jeff.the.farmer: Southern NY
Corey: Al what price range and approx. size of homes do you focus on
JerryIL: Mike, et. al., my area is growing very fast. When I look at my farming area (10m radius), there is plenty of open land and new construction. I live in a new house, myself. Should I consider new homes?
hottie: Jeff the farmer, k, I am frm the midwest and every house has a basment
Mike_Summey: mistapaants, one method I use to get 100% financing or near that is to use a small bank first mortgage and a larger seller financed second. Of course you have to find properties in which the owner has significant equity to do deals like this.
Al_Lee: Shane, material costs are rising all the time. More importantly, in our area, the land costs are rising. That rusn the prices up, but the Dallas/Fort Worth housing is still almost 19% underpriced according to Natinal City Corp,
Mike_Summey: Hi pgarvey
pgarvey: hi, mike
Al_Lee: Jerry, I really like new homes because everyting is working and warrantied.
hottie: Hi pgarvey
jeff.the.farmer: oh yea, all the houses here have basements too. but it’s usually a place where you can’t stay. its damp, humid, smelly, dirty
mistapaants: do your banks allow you to finace beyond 75-80% ltv using this method?
Shane_Ky: On Two of my multi family I got the sellers to do a second for down payments(mistapants)
1099: Mike do you have any advice for novice like myself who will be getting into rental peoperty me and my wife?
Mike_Summey: JerryIL, new homes, older homes, it doesn’t matter if you can make the numbers work.
Elle: OK, then I have a situation in which someone’s house is being foreclosed on - is there a “rule of thumb” to direct an investor to which way would be better to go. In other words, I don’t think he has much equity - so would I be better off to bypass him and try to do a short sale with his bank? Does a person have to have a certain % of equity in a house to make it worthwhile to negotiate with the homeowner?
jeff.the.farmer: is owner financing only possible if you can pay off their existing mortgage or if they dont have a mortgage at all?
JerryIL: Thanks, Al_Lee and Mike.
jeff.the.farmer: has any sellers financed a home even though they still owe a significent amount?
Mike_Summey: mistapaants, if the bank is in a first mortgage position on a 30-50% loan, they don’t care what you do with the balance.
Shane_Ky: Al, are you sub contracting everything out or buying from a builder
mistapaants: so, i should look for a seller who can finance at least 50%
mistapaants: ?
Al_Lee: Shane, technically I am the builder, but I contract it all out to a real builder. I just handle the money part.
Mike_Summey: Elle, foreclosures are not good prospects for the type deal I mentioned. With them, you usually have to make other arrangements and 100% financing by a bank is not usually feasable unless you have extremely strong credit and a track record of success with rentals.
Mike_Summey: jeff, when the owner has a small mortgage, that’s what you use the small bank loan to pay off.
Shane_Ky: AL , Now that my rentals are cash flowing good, I am thinking of trying that route
hottie: Mike, I have been playing with the offer generator and wonder how you can figure what repair costs are.
Elle: Mike, I think you misunderstood my question. I was “not” referring to what you were talking about but to a completely different situation I am involved in.
Shane_Ky: How much per sq ft can I expext
Mike_Summey: mistapaants, you should look for any kind of deal that you can purchase with the methods we teach for making wholesale purchases. the one I described earlier is only one of the methods of doing this. Do you have the Offer Generator program?
Al_Lee: Shane, it will be an eye-opening experience. The actual building of the house is the easiest part (laborers do it all). The paperwork for the city, the bank, the mortgage lender, etc is the big issue
jeff.the.farmer: ohh ok, that’s what i thought. I can only buy right now with owner financing. So should I avoid houses with high equity for the time being? Like ask the agents or owners how much they owe still?
jeff.the.farmer: to wee houses out
jeff.the.farmer: weed*
Corey: Mike is Hottie talking to me or you
Mike_Summey: hottie, that’s what you use the inspection form to do. Use it to discover any needed repairs, estimate their costs or if you can’t get help from people who will do the work.
mistapaants: i don’t have it yet, the seller seconds for a multi fam, do you usually use a note or a wrap around?
Mike_Summey: Elle, maybe I missed it. Try to explain it again.
Al_Lee: Shane, if you are asking about the construction cost per sf, that could vary a lot. Depends on how easy the lot is to build on, grading needed, soil condition, type of foundation, etc, etc. etc.
Mike_Summey: Hi Bryant
Al_Lee: Also, depends on city ordinances and fees and inspections
Al_Lee: And, weather conditions. Rain will stop your work and damage materials
1099: seem like every one here is in the businees so i must be in the right place to learn something
Mike_Summey: Good thinking 1099
Shane_Ky: I had one builder price at $23sq ft just labor I figure about 60 to 75 to build
Al_Lee: And vandalism. The longer it takes to build the houses, the more opportunity to have the stuff stolen or damaged
Mike_Summey: Corey, she addressed the question to me.
Bryant: Hi Mike & group
JerryIL: Looks like no one has Chicagoland RE experience … yet. Any suggestions for someone living in the suburbs of a big city?
Corey: Mike you are to cool
Al_Lee: Shane, if the lot is prepared, that might be about right
Mike_Summey: mistapaants, I use a second for the seller financing, not a wrap around.
Mike_Summey: JerryIL, you may have to look a little further out to avoid the pressure of being so close to the city.
mistapaants: you get good terms, mike?
jeff.the.farmer: mike, do you have a weasel clause just in case you start getting bad feelings from the property?
JerryIL: Thanks, Mike.
Elle: Mike, I have a situation in which a homeowner is going into foreclosure. I don’t know if I should try and deal directly with him or the bank, doing a short sale. He thinks he has $20,000 equity and the house is worth in the $70’s but he owes about $74,000. So I can’t see how he has 20K equity. But my question is: is there a certain percentage a homeowner should have in equity before you try and deal with the homeowner and not with the bank. There is probably a “rule of thumb” of some sort.
Mike_Summey: Hi Bob
jeff.the.farmer: like subject to my partner’s approval, even thought it’s a made up partner?
Shane_Ky: (1099) I thanked mike last week. when I started his chat 1 year and a half ago I had 1 rental now 182
Bob_(vegas): Hey Mike
Mike_Summey: jeff, I’ve gotten 0% from sellers several times.
JerryIL: Actually, I’m about 40 miles SW of Chicago. Is that far enough, do you think?
mistapaants: shane, where’d you get the money to buy all those properties?
Al_Lee: Elle, how could he have $20k equity if it is worth $74k and he owes $70k?
1099: that’s what I am talking about shane_Ky
Mike_Summey: Elle, the rule of thumb is “Can I make the numbers work” If so, it doesn’t matter who you deal with.
Elle: Al Lee, I know - that’s what baffles me? He is going to get the figures he owes from the bank so I can verify it.
Corey: Mike are things going your way on your big project?
mistapaants: has anyone used sub2 for multi fams?
Mike_Summey: jeff, there are many types of weasel clauses you can put in a contract, but the more you put in the less likely the seller is to accept your offer.
Al_Lee: Elle, you might offer him a leaseback where you buy the house cheap and lease it back to him at a lower-than-market rent. IF he skips out, you lease it for more rent. That gets you the house at a low price.
jeff.the.farmer: I never saw it that way, thanks for the tip
Mike_Summey: Elle, forget about his figures, the banks figures or appraisals, the only figures that matter are “Can I make the numbers work.”
Shane_Ky: Well, after bieng turned down by 5 banks for a line of credit including the bank that had my 1st mort. some one decided to let me have it(bank) rest is histry. I kept borrowing of the equity making sure I stuck to my game plan and every thing cash flowed.
mistapaants: when you say borrowing off the equity, do you mean you used blankets/pyramids?
Mike_Summey: Shane, I thought you were going to send me an email testimonial last week.
jeff.the.farmer: when it comes to homeowners insurance, is it better to stick with one company than spread it out getting the cheapest insurance you can get?
Bob_(vegas): A little Equity Harvesting
jeff.the.farmer: rather than spreading it out
JerryIL: Gotta run. I hope to be able to chat with you next week.
mistapaants: jeff, if i had to guess, you’d prlly get better and better rates the more biz you gave to one company, but i don’t know, only have 1 house
Mike_Summey: jeff, I find that the more business you do with one insurance company the bettter rates you get. After you get several properties, you can get a blanket policy which gives you the best rate of all.
Shane_Ky: I am sory mike. I will make that my priority
Bob_(vegas): Sat through a 2 hour Carleton Sheets presentation the other day…….$2995 for a 3 day “boot camp”
jeff.the.farmer: that’s what I was thinking, thanks for the help mistapants, Mike
Mike_Summey: Thanks Shane.
Al_Lee: Bob, did you learn anything?
ken: bob how was that?
Mike_Summey: Bob, what did you think of it?
hottie: Bob (vegas) how was the “bootcamp”
Bob_(vegas): It was basically a 2 hour info mercial
hottie: Bob(vegas) did you buy?
Mike_Summey: How much interest do you think there would be in a week long investment crusie with Roger & me, possible another expert or two?
Bob_(vegas): I kinda felt like I wqas at a MLM
Bob_(vegas): sign me up
Mike_Summey: Hi zmiller
ken: sign me up
zmiller: hello
jeff.the.farmer: is it possible to buy fixer uppers if you don’t have any capital? Will the bank loan you money to buy the house and pay for any improvements needed?
Bob_(vegas): I will not be doing the Boot Camp
Shane_Ky: I think that would be great Mike
Corey: Mike that would probably get me on a cruise . Hottie has been trying to get me to go
ken: i’m looking at a boot camp this augest for lease option not sure if i’m doing it or not
mistapaants: jeff, if its owner oc, its easier… i bought a 3 fam fixer 97% financed on an FGA loab
zmiller: hello
mistapaants: i also go 6% from teh seller for closing costs
jeff.the.farmer: problem is, it’s not going to be owner financed
Mike_Summey: I have a company that wants to put together a cruise with me as the headline. Tenatively we’re talking about a week in the Carribean with seminars each day plus time to just sit around and share ideas. they think they can put it together for unter $5000 per person. Any interest?
Bob_(vegas): I like $3000
jeff.the.farmer: owner occupied
mistapaants: jeff, if you’re not going to live there, it gets tricky,,, you and i are in the same boat, most banks will only finance 80%ltv tops
jeff.the.farmer: yea, that’s what ive been getting too. Just thought someone may know another way of doing so
Elle: Mike I understand the numbers have to work but I just don’t know who to approach? How do I begin to figure the numbers - what information exactly do I need?
mistapaants: mike says if you can get a seller second for 50% a small bank will give you 50% in first position
Corey: Mike for Hottie and I at 10 grand would put us out
jeff.the.farmer: thanks for your help though, i appreciate it
Mike_Summey: Elle, do you have the Offer Generator program?
Shane_Ky: How much would a spouse be to go along
Bob_(vegas): two person discount?
1099: Owner occupied seem to be the best way to start what do you said Mike?
mistapaants: you can use a blanket mortage if you have equity in another property
ken: Mike that might be alittle to much for me.
jeff.the.farmer: Elle, if you need rent estimates, a property manager can help you with that. the offer generator will make all the math alot easier
Bob_(vegas): what do cruises cost these days?
Mike_Summey: Corey, I don’t have anything to do with setting the price. That would be up to the promoter. I’m just passing on that they said they thought they could do it for “under” $5000. How much under I don’t know.
zmiller: mike, i posted a question about an error message on the offer generator, any news?
jeff.the.farmer: i knew someone that went to europe for a 1 week cruise… i think it was 2500 per person
1099: Lots of Money Bob
Al_Lee: I am working on plans to do an event in Las Vegas in September. Several of the strategic partners of our club will be there with inventory to sell on the spot. The focus is on cash flowing properties. Gets us to Vegas for a business trip, too. Any interest?
Mike_Summey: Bob, it all depends on the cabin you are in and the time of year. $1000 - $12,000 for a week.
Mike_Summey: zmiller, what was it?
Corey: Mike I know both of us would be very interested so please keep us updated
Mike_Summey: Hi Sandy
mistapaants: jeff, i think the key is to find a motivated seller, get your self contracted for a good deal pending financing, and then go to work with a bank, mortage broker and the seller to make it happen… anyone else agree or disagree?
pgarvey: Al, would they be willing to start unloading some inventory now?
jeff.the.farmer: yea, that’s what ive been doing. just waiting for that motivated seller to pop up
Sandy: Hi Mike and all
zmiller: i downloaded the demo and when i try to open it, it says wrong parameter usage
Al_Lee: pgarvey,
1099: Hi Sandy
Al_Lee: garvey, of course. But they will try to put together a nice list of propertues to show at the event.
Mike_Summey: Everyone, I was at a bank today showing them the Offer Generator. The bank president said he would have no problem financing an offer that cash flowed using the program. He loaded it on the bank’s computer.
Bob_(vegas): Al you might could contact the silverstate reia to recruit
Sandy: Hi 1099….are you the irs?
mistapaants: i wont be ready to buy for another few months, but when i am, i am going to put an “i buy rental property” ad in the paper to see if i can find a motivated seller
pgarvey: al,i would be interested as its hard to find cash flowing SF in Connecticut.
Mike_Summey: zmiller, didn’t Mark Nadleson communicate with you about that. He said he could not duplicate the problem. Were’t you trying to use it on a television monitor?
1099: No I just use this no# it is easy for me to remember LOL
Corey: Mike that is a great idea to help get the bank to approve a loan if they had reservations
Al_Lee: pgarvey, go to http://www.renthouses.org and scroll down to the “email Al” link and send me a message. I will put you in contact with someone.
zmiller: he told me to send him a screen shot last week to offer@weekendmillinaire.com last week
Sandy: ohhh…
Mike_Summey: I now have 3 banks using the program to evaluate investor loan requests.
Mike_Summey: zmiller, did you send it to him?
zmiller: when I did it said it was undeliverable email address and I never heard back from him
pgarvey: Al, will do.
zmiller: then he never showed backup in the room
Al_Lee: zmiller, the email addres you typed is misspelled. Did you copy and paste it?
zmiller: yes
Mike_Summey: zmiller, try sending it to unixnttalk@yahoo.com & copy me. Mark will be out until Friday, but he is very prompt when someone points out a problem.
Mike_Summey: Hi Kevin
kevindav: Hi everyone.
Mike_Summey: Hi Dave
Al_Lee: zmiller, there is an “o” missing in millionaire
Dave_of_Beaverton: Hi Mike!
Mike_Summey: thanks Al, I didn’t notice that.
mistapaants: can anyone walk me through a deal they finaned 100% recently, i know some of the stratgies, but i am interested in real life examples
zmiller: it was sent last week and i clicked his link
Dave_of_Beaverton: Mike, how many houses do you have under water right now?
Al_Lee: Mike, after 30 years in the computer industry you learn that most problems are simple, like typos
Mike_Summey: Hi n604 & Oz! Are you guys/gals just watching tonight?
Dave_of_Beaverton: The storms look pretty intense on the east coast.
Mike_Summey: zmiller, do you see what Al is talking about?
Bob_(vegas): they had a ton of rain in Houston last week
Mike_Summey: Dave, we’ve had flooding here in several low lying areas today.
oz: Hi Mike, yes tonoght I am just reading and riding… how are you?
Dave_of_Beaverton: Mike, it
Dave_of_Beaverton: Mike, it’s over 100 here today.
Mike_Summey: oz, doing fine thank you!
Mike_Summey: Dave, it only got to 69 here!
Corey: Most severe storms are in central illinois tonight. This is my area of expertise
Al_Lee: Mike, I am moving my radio show to a new station. It is called “Biz Radio”. They have statins in Dallas and Houston and webcast nationwide. They are focused on busines, investment, money, and that sort of thing.
ken: Mike did you ever had a home burndown? if so how did you handle it.
Mike_Summey: Al, when will you move. I saw your email, but I forgot.
1099: Mike Before I go a word of wise to a novice please.
Dave_of_Beaverton: I’ve been reading the books and looking at the market here, and it looks like it might be a while before I find a wholesale deal.
Al_Lee: July 23 is my first show on the new network. Another thing I like about them is that they want to sponsor events.
Mike_Summey: ken, I’ve had two apartment fires that destroy units, but not the entire building. My insurance company (Nationwide) promptly covered the damage and loss of rent.
oz: great, Mike It is hot here and I am just coasting tonight, has been a long day/
Mike_Summey: 1099, “Be Patient”
Al_Lee: I like getting in front of live people once in a while after talking into a microphone
1099: Thanks Good Night to every one I have learn alot see you all next week.
Al_Lee: Hi, elba
Bob_(vegas): hey elba
Mike_Summey: Al, I’d offer to join you for the inaugral show, but I will be in Orlando at the National Speaker Assn convention on that date.
Bob_(vegas): hey elba
hottie: Hey Elba ny
Bob_(vegas): oops
Mike_Summey: Hi elba, running late again I see.
Corey: Mike I noticed you use be patient alot is there a story behind this or is that just where you see most mistakes made
Al_Lee: Mike, I will have you on soon after, then.
Mike_Summey: Goodnight 1099
zmiller: mike and al - I checked my sent emails and it was spelled correctly
Dave_of_Beaverton: Mike, I appreciate the encouragement that you and Roger include in your books. I think this business can be kind of discouraging at times if you don’t have something to hang on to.
Mike_Summey: Corey, if you will look in the real estate book you will find that it is listed as the #1 mistake new investors make.
elba_NY: Sorry Im late. On top of that, Im having tech problems. Good evening everyone. Mike, Al, everybody.
elba_NY: Hey, Al. New location Huh?
kevindav: Mike, would you use a 30 year mortgage if it made the numbers work? Most of your examples are for 15 yr notes.
Al_Lee: elbs, for the radio show, right
mistapaants: lata
elba_NY: Yes.
Mike_Summey: zmiller, the address is correct if spelled correctly, but try the other one I gave you a bit ago. don’t expect to hear from Mark until after this week as he is on vacation.
zmiller: 10-4, i copied you as well
elba_NY: Hey There, Penny.
Mike_Summey: Kevin, I would have no problem with a 30 year mortgage, but I prefer 15 year when at all possible.
Penny: Hi elba:-)
jeff.the.farmer: Hi Elba
Shane_Ky: I do 20 on my apartments
jeff.the.farmer: mike, this seems like common sense. Should I completely avoid houses that still have large mortgages since I can only buy with owner financing? Calling to see if they have a large mortgage, if they do, skip right over them? Or will I be missing out?
Penny: Did you corner the market this week on rentals?
Corey: Mike, Hottie was looking at a property today and that is what we both agreed on is being patient and checking all the numbers for clarity
elba_NY: Nice to see you Jeff.
Mike_Summey: Our crowds are smaller in the chats in the summer, but we’re getting some very good information passed around.
hottie: Mike, U use the inspection form on the first walk through?
elba_NY: Bob, I did not see you there, hi.
Mike_Summey: jeff, run the numbers. Make offers that work for you and expect to have most of them rejected. Don’t let a large mortgage scare you off without asking. I’ve bought several properties where the seller had to bring cash to the closing to pay off the mortgage.
Dave_of_Beaverton: Mike, I wondered about the inspection form on the first look too. It is pretty detailed.
Mike_Summey: hottie, yes I do. Why walk through multiple times when you can do it once.
elba_NY: Hottie, when I went to see our 1st(and only place) we took the WM form with us. Minimised it and placed in a small handbook.
Mike_Summey: Dave, if you were the seller, would you expect someone to look at your property and not do a detailed inspection. Wouldn’t that tell you they weren’t a serious prospect.
hottie: Elba that’s a good idea. My dayplanner is 5×7
jeff.the.farmer: I never knew that sellers would bring cash to pay off their own mortgages. I always thought that the buyers would have to pay off their mortgage.
elba_NY: Yes, You got it hottie.
Al_Lee: elba, thank you. I have been extremely busye lately. The websit needs updating and I haven;t had time to do it.
Dave_of_Beaverton: Good point, Mike. Every little bit of credibility helps, right?
Mike_Summey: everyone, don’t let the inspection form worry you. I let sellers look it over and ask them to help me do the inspection.
Al_Lee: elbe, how is Vee treating you?
Corey: Mike when you find out about a property you are interested in do you call the seller and qualify certain information to make sure it is a prospect for you to look into futher or do you find this out meeting with the seller
Mike_Summey: jeff, if the seller is in over his/her head and wants out they will do about anything get rid of a problem.
Bob_(vegas): So Elba………..anything to report?
jeff.the.farmer: thanks for letting me know about that, that helped open a few more ideas for me
Mike_Summey: Corey, I try to find out enough information to confirm that I want to look and then get the rest when I visit the property.
Al_Lee: Vee is the best I have ever used. She works much too hard, though. She needs an assistant. I think she is hiring one.
Mike_Summey: Al, what’s the first show on the new station going to be about?
elba_NY: We’ve taken a break for now Bob. Since the next place will be our home, the plan is to get a bigger deposit. On the mean time Im also working on building my business.
jeff.the.farmer: has any agents tell you that you can’t meet the sellers of the home? ive had a few tell me that, just wanted to know if it’s really true or not
Al_Lee: Mike, I don’t know yet. I often wait until the last minute to let some current event drive my thinking. Why, do you have an idea?
jeff.the.farmer: id like to meet with the actual sellers so that I can possibly better explain my offers
Mike_Summey: elba, taking a break is good, especially in the beginning. Get a few properties and then slow down and get some experience.
Mike_Summey: Al, nothing in particular.
zmiller: does everybody have there own purchase agreement or do you use the standard form that realtors use?
elba_NY: Yes Mike we are. Trust me with the WM and the Tortoise we cant go wrong.
hottie: zmiller, we’ve used a carlton sheets purchase agreement and modified it
hottie: elba, what is the tortoise?
Mike_Summey: zmiller, every state is different and there are even differences from one market to another in the same state sometimes. That’s why we have the Offer Generator produce “Letters of Intent” Once the letter is signed you can then take it to your closing attorney or title company to have it transferred to a contract form applicable to you area.
Dave_of_Beaverton: zmiller, I think I will be using the letter from the Offer Generator.
elba_NY: Al’s Tortoise Club.
elba_NY: It is very similar to WM teachings.
zmiller: does anybody have one that they could share for Georgia
Mike_Summey: elba, I’d love to get an email from you with a testimonial we could use in the future.
hottie: Elba, I saw him mention it, but didn’t know. is it a radio program?
Bob_(vegas): just moved into my 9th house and managed to do 100% finance and closed in 12 days
elba_NY: You should listen to Al’s show when he has Mike over. Its hilarious yet informational.
Mike_Summey: zmiller, the z isn’t for Zell is it?
elba_NY: Al would you care to tell hottie a bit more?
Mike_Summey: zmiller, check with your local Realtors or attorney’s for a Georgia agreement.
elba_NY: Alright Bob!!!
Bob_(vegas): so far I havent be getting any grief from lenders
pgarvey: Mike, in CT the seller’s attorney creates the sales contract and submit it to the buyers attorney.
elba_NY: I will do that Mike.
zmiller: i always get that question but no it stands for zeke
Bob_(vegas): why do I feel not worthy to live in a home with a pool and 3 car garage?
Al_Lee: hottie, I do a radio program about real estate investing and related issues. I have had Mike on as my guest several times. Carleton Sheets is supposed to be a guest some time soon, also.
Mike_Summey: pgarvey, that’s what I was getting at a bit ago. Every state is different, but Letters of Intent are the same all over.
Al_Lee: rote a book on real estate investing and I manage an investor, club called The Tortoise Club, that helps members buy cash flowing properties.
Mike_Summey: zmiller, I’ve met Zell and he is quite an opinionated individual.
hottie: Al, I am from Mississippi, is it a satellite station?
elba_NY: You should not Bob. Is it too small?
Bob_(vegas): 3012 square feet
jeff.the.farmer: mike, do you always get a home inspection or are you confident enough to not need one?
Mike_Summey: Thanks elba.
Mike_Summey: Bob, I don’t know, why do you?
elba_NY: Are you kidding me Bob. Go ahead move in. If I where in the area Id help out.
Al_Lee: hottie, I webcast live, so you cna listen from anywhere in the world. I also have about 50 recordings of prior shows on my websit ethat you can listen to free. Go to http://www.RentHouses.org and click on “Streaming Audio” and you are there.
Mike_Summey: jeff, I only get a home inspection when I don’t feel comfortable with my own inspection.
pgarvey: Al, do you provide property managers and lenders to club members?
Bob_(vegas): My wife is a therapist…….maybe she can shrink me
hottie: Al, cool thanks, i’ll check it out
jeff.the.farmer: thanks mike
Al_Lee: pgarvey, yes, everything you need. most of our members do not live in Texas, but we mainly deal with properties in Dallas/Fort Worth
Mike_Summey: Bob, get over it! I went from a 700 sq ft home to one over 15,000 sq ft with a ppol, tennis courts, guest house, etc. and it hasn’t bothered me one bit.
Corey: Al what is middle of the rent range in dfw
elba_NY: We are born to do great things:Our deepest fear is not that we are inadequate. our deepest fear is that we are powerful beyond measure. It is our light, not our darkness, that most frighten us.
elba_NY: Written by Marriane Williamson.
hottie: elba, i am just afraid of my husband’s impatience
elba_NY: We ask ourselves, who am I to be brilliant, gorgeous, talented and fabulous? Actually who are you not to be?
Mike_Summey: Bob, what you may be experiencing is the strain it puts on you when you have to break ties with those who would hold you back. Read about it in Weekend Millionaire Mindset.
elba_NY: I read that every morning.
Al_Lee: Corey, about $1500. That would be for a house that you would pay about $135,000 for. That wouel be a new 3 or 4 bedroom, 2 bathroom, 1 or 2 car garage, central heat/air, fenced, lawn etc.
Penny: elba, thanks for reminding me of that. My daughter gave me one of her books as a gift several years ago. I think it was on Oprah’s greatest things “list”
elba_NY: Hottie, Im afraid of my Husbands patience.
Corey: Al holy cow that is a great rental market then
elba_NY: I actually saw it in a movie, and printed it.
Bob_(vegas): thanks mike
Mike_Summey: elba, Hottie, why don’t you trade husbands for a while? 
elba_NY: :>
n604: Mike, I’m new to this weekend millionaire site, I haven’t read any of the books yet. Which one would you recommend first?
elba_NY: We would probably returned them mike
Corey: elba her husband doesn’t have patience cause he works 80 hour weeks constantly
Mike_Summey: n604, I’d recommend Mindset first! It will help you get in the right frame of mind to comprehend the others and take action.
hottie: I’m in!!
elba_NY: Minsed, Mindset, Mindset n604
Al_Lee: Corey, it is the best market in the US. That is not jsut my opinion. Mike even sends me articles supporting that theory. National City Corporation does a detailed quarterly survey and it supports it too.
Mike_Summey: elba, that’s the whole idea. Return them trained.
n604: yeah.. i definitely need a mindset transformation.. i’ve tried that several times, but i keep falling back to the old one…
hottie: Mike, you have no idea what you are getting yourself into!!
elba_NY: Corey all the more reason why you should trust your wife.
Mike_Summey: n604, get Mindset this week and read it then join us next week to share it’s impact, okay?
hottie: Corey, Elba is the marriage counsilor now!!
Dave_of_Beaverton: Goodnight everyone, I will have to read the transcript. I look forward to chatting again soon when I have more to contribute.
elba_NY: n604. Look at your life now, and look at what it could be. Turn those dreams into goals, and they will become real.
elba_NY: Nite Dave
hottie: n604, That book will get you a great parking spot no matter where you go!
jeff.the.farmer: thanks for the help Mike and everyone. have a gnight everyone
Mike_Summey: Goodnight Dave
ken: I took mindset to the extreme and moved back to my parents 
Al_Lee: One investor I correspond with regularly has in his signature line in email: “If you can’t beat your compute lol r at chess, try kickboxing”
oz: I have to run, wishing you all a happy and safe 4th.
elba_NY: n604. Come back every Monday. You will learn alot here.
elba_NY: Nite Oz.
Shane_Ky: I have to go to. It’s been great. Thanks
Mike_Summey: Folks, I’ve really enjoyed it, but it’s after 9:00 and I have an early day tomorrow. Goodnight all! See you next week.
Al_Lee: Yes, Happy Foruth and remember Freedom Isn’t Free.
hottie: Nite Mike, all
ken: night all
Al_Lee: I have to run now, too.
Al_Lee: Godonight, Mike, everyone
hottie: gotta go too!!
pgarvey: night all!
elba_NY: Nite Mike, Al and everyone Til next time.
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