Chat Transcript August 28, 2006
Posted on August 29, 2006
Al_Lee: Hi, Elba
Al_Lee: Hi, everyone
elba_NY: hey aaaaal!
Al_Lee: I beat Mike and Roger tonight!
Al_Lee: Hi, Mike
Mike_Summey: Hi everyone
elba_NY: hey Mike
elba_NY: I’ve had problems with my Java and Hubby had to fix it.
Mike_Summey: What was wrong?
Mike_Summey: Hi Linda
elba_NY: Al, I could not see you guys, yet I could hear my name when called.
Linda: Hi Mike
elba_NY: I was about to say Al congrats on your new show.
elba_NY: home.
Al_Lee: Elba, thanks. Be sure to listen next Sunday. I will have a very interesting guest!
elba_NY: welcome linda
Mike_Summey: Elba, Roger had a problem last week.
Mike_Summey: Hi roger Dawson
Al_Lee: Hi, Roger.
elba_NY: Well Ive had to satisfy myself by reading the scripts.
Mike_Summey: Hi Bob
elba_NY: Hi Vegas
Bob_(vegas): hey all…
Mike_Summey: Hi Justin
Roger_Dawson: Hullo, can anybody hear me this week?
elba_NY: Yes Roger.
justin: hi.
Mike_Summey: Hey Corey
Al_Lee: Wat’d you say???? Speak up louder!
Roger_Dawson: Mike, I’m not coming in again.
elba_NY: :p
Mike_Summey: Roger can you see this?
Al_Lee: Roger, I actually did hear you
Mike_Summey: Hi shoe
elba_NY: hi shoe
shoe_kc: hi all
Roger_Dawson: Couldn’
ken: Mike good article this past week
elba_NY: Mike, Roger are any of the books available in other languages yet?
Mike_Summey: Thanks Ken
Al_Lee: Roger, are you with us tonight? Can you read this?
Mike_Summey: Yes Elba, they are in several languages.
elba_NY: Spanish??
ken: Mike if i do it right my 3 rentals will be more than I will see from social security. I will see that in 8 years
Roger_Dawson: Couldn’t get in on Macintosh so I switched to my IBM
Mike_Summey: elba, Hungarian, Danish, Polish, Russian, chinese, Japanese, Korean & others.
ken: SS in about 50
Mike_Summey: ken, if you have 3 good rentals, they’ll do much better than Social Security
elba_NY: I’ve been asked by a couple of family members if there is a spanish version.
Mike_Summey: Hi hottie, I saw where you registered again today.
elba_NY: let me know when it comes out please.
elba_NY: Good job ken.
hottie: Hi Mike, I am trying to get the newsletters. I still don’t get them
Mike_Summey: elba, you read Spanish?
elba_NY: Speak, write, breath spanish.
Mike_Summey: hottie, what seems to be the problem?
Mike_Summey: Do you get the chat notices?
elba_NY: Hi Penny.!!!
Mike_Summey: Hi Penny
elba_NY: long time dont “see”
ken: Thanks, I’m looking at doing my first wholesale deal this week it’s only $5,000 but that would be nice put on a 1031
Penny: Hi elba & Mike!
Al_Lee: Hi, Bob
Penny: yes I missed last week.
Roger_Dawson: Elba, you’d think that Spanish would be an obvious tranlation but for some reason publishers don’t see it that way. Only one of my 14 books has been translated into Spanish and it sold extremely well.
Mike_Summey: ken, I don’t know much about wholesale deals except from a buyer’s standpoint.
elba_NY: Dont worry Ive missed lost of weeks.
hottie: Mike, I am doing something wrong. Corey gets them and forwards them to me
Penny: Hi Roger!
Roger_Dawson: Hi Penny!
Mike_Summey: hottie, are you getting the chat notices?
hottie: Mike, no
Al_Lee: Bob, can you read my messages? I do ot think I am getting through.
ken: Mike Yes, but i’m just running out of a down payments, I don’t like barrowing against my properties yet. maybe in a year or 2
Bob_(vegas): Yes
shoe_kc: I see you al
Mike_Summey: hottie, let me know if you don’t get next week’s notice now that you have reregistered.
Al_Lee: I looged out and back in
elba_NY: A lot of people are starting to discover that any service in Spanish sells, Roger. Google teamed up with Univision. Yahoo teamed up with Telemundo. Those are the 2 biggest spanish speaking networks.
Mike_Summey: ken, just be patient. How old are you?
ken: 26
hottie: Mike, will do
Bob_(vegas): Can anyone tell me what is wrong with Rochester NY?
Mike_Summey: ken, you’re younger than I was when I bought my first property. You’ve got plenty of time
ken: I just joined my local REI except it is about a 1.5 hour drive
Mike_Summey: Hi patcho
elba_NY: Mike what have I been saying about the twenty something weekend millionaires in the making?
Al_Lee: Bob, it is cold, cold, cold
Mike_Summey: ken, where is it?
ken: Pittsburgh
patcho: Hi Mike and everyone
shoe_kc: ken, you’re way ahead of the game if you just even have the knowledge at your age!
elba_NY: hey patcho, welcome.
ken: I do have a local landlording group that meets 4 times year I am in contact with them
Mike_Summey: Anyone in the chat who was at the seminar I did Saturday?
ken: thanks
Bob_(vegas): found a site similar to Al.s site. They have deals available with owner finance….
Bob_(vegas): rochester area
Bob_(vegas): 5 % down with a strong cashflow
patcho: Thanks Elba. Not used to chats!
tripp2953: Mike, I was there Saturday. I was the guy with the question about the offer generator.
elba_NY: Ken, for my 26th birthday this year we bought our 1st investment too.
Roger_Dawson: Ken, I’m going to me spekaing to a software company at the Nemacolin Woodlands resort on Thursday. That’s two hours from Pittsburg.
elba_NY: Youll learn quickly patcho. hang in there.
patcho: Thanks again.
ken: Roger which way? I”m more towards the east near Johnstown
elba_NY: Hey there oz.
Roger_Dawson: Trip, how did Mike do?
Mike_Summey: Bob, be careful of sites like that that offer owner financing. Some of them are selling on contracts for deed and are collecting from you to pay mortgages they have on the properties. If they default months or years after you make a deal and make payments, you could lose all your money.
ken: not much in PA just woods
tripp2953: H
Mike_Summey: tripp, would you share what you learned about the program at the seminar?
elba_NY: hi tripp
oz: hi elba,
Bob_(vegas): probably good advice mike
Mike_Summey: Hi oz
Roger_Dawson: Ken, it’s due south, almost into West Virginia. An incredible resort owned by the 94 Lumber king.
hottie: Mike, Corey and I really wished we could’ve made it to the seminar. How was it?
tripp2953: He made me never want to even drive through War, VA!
oz: hi mike, haws all?
Mike_Summey: Hi jj
elba_NY: funny.
elba_NY: do share the other good stuff tripp
Mike_Summey: hottie, ask tripp, he was ther and will give you a more objective answer. I thought you guys were coming.
shoe_kc: update on me: been busy w/ hunt for new job; start next week…back to house hunting after that. got a “fixer uppper” just down the street…but even at it’s current price, numbers won’t work…so, we’ll continue to make the offers and see what happens.
elba_NY: Mike were was this seminar.
Mike_Summey: elba, it was in Greenville, SC.
hottie: Mike, Corey had to chase a storm in Minniapolis and I had to stay with the kids
tripp2953: Seriously, it was pretty good.
ken: What a good way of getting an idea of what a property rents for, ex. I located a property about 2 hours away the guy says it would rent for 1200-1800 thats a big gap, how can i comferm that. he is a realtor but it’s a realtor owned property. I checked craigs list but a few came in at that price
elba_NY: Next time you’re in NYC Ill bring my groupies.
hottie: Tripp, was Mike’s seminar a lot like his books?
Roger_Dawson: Ken, I’d start by reading the classifieds in the local paper.
1099: hello everyone
tripp2953: I dunno, I have never read any
shoe_kc: hi 1099
Mike_Summey: ken, find a good property manager in the area and ask what he/she can rent it for.
Mike_Summey: Hi 1099
tripp2953: Heckuva lot of good stories, warm and fuzzy
Roger_Dawson: Hi 1099
ken: The big local one won’t talk to me I think they are to big< I should locate a smaller one
1099: Hey Mike and Shoe-kc and Roger
hottie: Tripp, a lot of personal stories about mike?
elba_NY: ken, I picked up the yellow pages and classifieds and located a couple of houses on the block, told them im planning to move to the area and asked if they could share about the neighborhood and the rent prices.
Mike_Summey: tripp, I hope you left with some ideas you can put to work.
Mike_Summey: Hi Max & sparky
1099: Mike help me overstand getting a Property Manager for one home would they do that compare to a perdon who have four or more?
sparky37: Hi Mike, Hello Roger
Roger_Dawson: HI Sparky
patcho: Ken, You may also call the local papaer and ask the person taking your call
elba_NY: ken, use your sister or mom or wife to do the calling. When my husband called, not too many friendlies.
ken: Yeah I guess there is lots of options. I just need to think more
ken: Elba your right
Mike_Summey: 1099, good property managers know that each rental is a profit center. Whether you have one or a dozen if the property manager you’re talking to doesn’t understand this, talk to another one. Good managers know that tenants are a dime a dozen, owners are priceless.
1099: Roger it looks loke everything is fine with yohu this week good to have you here.
tripp2953: Well… find out what the seller needs, buy right, never sell, and walk away from the deal if it does not work.
elba_NY: Wow Mike a mastercard commercial could not have said it better.
ken: Mike i’m finding out that agents that are just starting out are the only ones in the managment business
Mike_Summey: Roger got off his junk computer and got on his good one tonight.
Roger_Dawson: Thanks 1099. I logged on last week just as I always do and nobody showed up. I felt very rejected!
1099: That a good one Mike lol
Roger_Dawson: I use Windows so seldom that when I do I’ve forgotten how to use it!
elba_NY: Words to live by tripp. those are the basics.
Mike_Summey: ken, look around. If your market is any size at all there should be someone who specializes in property management. If not, you may have to use a real estate agent who sells too.
Roger_Dawson: I was in Michigan last week doing a seminar for GM. Average price in the state is $56K and it’s definately a buyers market.
Mike_Summey: Roger, the Internet Gods were trying to tell you something last week.
sparky37: 56k for a house?
hottie: Tripp, the best advice for me is walking away if it doesn’t work
1099: Mike as a novice which monrtgage rate is best Fixed Or Adjustable?
tripp2953: I already knew that, but I did get a better idea with the offer generator. Although i still can’t get the NOI numbers to work on my $800/rental house I am trying to buy.
ken: Roger we thought we had to negotiate you back to the chat last week
elba_NY: kem, :>
ken: Mike does the offer generate free download with only 30 try have a set time that you can use it then it expieres?
Roger_Dawson: My wife was convinced nobody showed up because Mike wasn’t on.
Mike_Summey: 1099, I use a lot of fixed payment floating rate loans.
elba_NY: Roger not a good nite with these guys huh?
Roger_Dawson: I’m used to it Elba
elba_NY: boys will be boys.
1099: Roger do you have any CD on your negotiate skills to listing to?
1099: Thanks Mike
Mike_Summey: tripp, maybe the house you are trying to buy can’t be purchase to where it will work as a rental. That happens a lot. You can’t buy everything you look at no matter how much you like it.
Roger_Dawson: Yes, 1099. You’ll see them on our store on this site. Get “Secrets of Power Negotiating.”
1099: Thank you Roger will be looking into this
patcho: Mike, can you expand on fixed payment floating rate loans?
elba_NY: 1099 Im seeing a lot of homeowners heading to foreclosure these days because their adjustables increased. Now they are trying to find the cash to keep up with the payments.
tripp2953: Mike, I still think I can make it work with a Lease Option.
ken: They say it’s a buyers market but who can afford a $300,000 home? Not I says Ken
Roger_Dawson: Went sailing this weekend with a project manager for a nationwide builder. He said that buyers in the high priced homes were getting picky but the lower price homes are still selling well.
ken: I had a guy begging me to take his home but I would of had to do a short sale and his so called realtor forbid it.
1099: Thank for the info elba_NY but foreclosure is a very very big fish for me now.
elba_NY: hey Corey
hottie: Hi Corey!
Al_Lee: Roger, I hve observed that lower-priced houses sell in any market whild higher-priced houses only sell in a good market.
Roger_Dawson: Al, you’re awake!
elba_NY: I was refering to how adjustables can get the mayority of people in lots of trouble.
elba_NY: you can just use elba, its shorter.
1099: Al your wedsite is a great help.
Al_Lee: huh! Whaa!
Al_Lee: 1099, thanks
elba_NY: Al, what can you add about adjustable rate mrtgs.
Corey: Hi everyone my computer is crashing tonight so if i don’t answer it is not me ignoring you
Roger_Dawson: Al, usually the market sinks the other way. Interest rates go up so that first time buyers can’t qualify, and it ripples upwards. This time it’s different.
Mike_Summey: patcho, a fixed payment float rate is created by setting up a payment based on an amortization calculated at a rate .5-2% higher than the actual rate you wil be paying and then let the rate float up and down with the market. When rates go down a larger percentage of the payment goes to principal.
Al_Lee: Elba, i only use adjustable rate loans when I can predict the future
Mike_Summey: Hi Corey
elba_NY: How often is that?
Al_Lee: I mean that literally, too. I have used them a few times because I knew for sure that I wouel be paying off the loan when the rate started up.
Al_Lee: I think an adjustable rate loan for a newbie is like rolling the dice
patcho: Thanks Mike, I’ll keep it in mind
elba_NY: 1099 the voice of experience has spoken.
Corey: Mike sorry i missed you in sc. I have been chasing storms for a month and no work. Still looking
Mike_Summey: Al, I agree with you on that unless you are able to establish a fixed payemtn floating rate based on a rate high enough to handle the ups and downs in the market.
1099: So Mike and Al a fixed is base on one income so that they know what they will be dealing from month to month?
elba_NY: a fixed doesnt not change.
Mike_Summey: Corey, I saw a reported holding hail stones that looked like baseballs on a new report a couple of days ago.
Roger_Dawson: There are an enormous amount of different payment plans available these days.
elba_NY: an adjustable can move like the waves. but most of the time they are usually high ones.
1099: That’s way I am here learning from those who know like yourself elba_NY
Roger_Dawson: Take a mortgage broker to lunch and you’ll get a valuable seminar.
Al_Lee: Mike, if a person has adequate resources to cover his bets by payng off the loan if worse comes to worst, an adjustable rate loan can be a good deal.
Bob_(vegas): just read in sundays paper about a 50 year fixed mort.
Al_Lee: I have seen interest rates at 22% in my lifetime and I wouel not want that to happen to my mortgages
1099: Ah the ball of rates is roll lol
elba_NY: Me dont know much 1099. What I know I’ve learned here. .
Corey: Mike that was Minnesota i just left there couldn’t get anything put together so back to san angelo texas
elba_NY: 50. really?
1099: Me too
Roger_Dawson: Bob, a 50 year mortgage is highway robbery. The payments would only be a few dollars more for a 30 year.
Mike_Summey: Al, adjustable rates are great when rates are in decline, but can be killers when they go the other way. That’s why I think we are going to see some real deals in the market over the next couple of years.
sparky37: as a part time mortgage broker I can tell you yes there is 50yr fixed
1099: That is something new right sparky37
Al_Lee: Mike, yes, I agree. A lot of paopel who bought using arms will be having to unload those hosues at fire sale prices soon
Roger_Dawson: Sparky, I didn’t mean to acuse you of highway robbery. Forgive me!
sparky37: there is also option arms where you choose your payment each month, but you can have neg amortizaion
elba_NY: Goodness gracious. I thought Ive seen it all.
sparky37: no harm no foul Roger!
elba_NY: 3 out of 5 that call me have either interest only or adjustable rates.
elba_NY: with their current finances these most at least will not be able to keep their homes.
elba_NY: “these homeowners” that is.
Roger_Dawson: In England they have an even more viscious loan. The payments don’t increase but the length of the loan does. You can sign up for a 30 year loan and end up with a 50 year loan.
ken: My old neighbors are building a house and selling their own, they paid 145,000 for their home now and have it listed at 240,000 they dropped it 30,000 sense listed i bet you could get it for 200,000 soon
Mike_Summey: Al, using fixed payment floating rate loans that were established 5-10 years ago, when the rates dropped to their low point a couple of years ago, some of my payments were 70% principal and only 30% interest. That really knocked the balances down fast.
Corey: Mike have you ever refinaced a home just to put cash reserves in your real estate account
elba_NY: that sounds beautiful Mike.
elba_NY: Im sure it was even sweeter to see it happen.
1099: well family it is pass my bed time must get really for another day to make my future like Mike, Al and Roger good night everyone see your all next week.
elba_NY: bye 1099
lanlizer: Hi. First Mon. night off in a long time. Nice to be learning you’ll. Question-will you offer a special tonight on your”Real Estate Investing CD Program with Offer Generator? I want one. Sorry off subject.
Mike_Summey: Corey, absolutely! Although it costs a couple of points in the difference between what you pay in interest and what you earn, having a few thousand in cash reserves is worth the added expense.
Al_Lee: I have refinanced houses to accumulate cash so that I coudl buy deals for cash well below market. Then I can refinance the houses and yield as much cash procees as it cost me originally and still own the house
Bob_(vegas): well I am done for the night….night all
Mike_Summey: lanlizer, there is currently a special on the website. Just click on the store button and you will find it. It is also posted at the top of the home page. The special saves you $30, but it is only good thru Thursday.
elba_NY: get it while its hot lanlizer.
lanlizer: Thanks.
shoe_kc: great info on refi tips!!!
elba_NY: Penny, as always the quite reader.
Penny: yes elba. some things never change do they.
Mike_Summey: Once you own several properties, you may want to consider refinancing part of them to pay off others. Then you can use the paid off houses to borrow against to make cash offers as Al mentioned. It’s a great way to buy for cash and then refinance later.
elba_NY: as long as they remain great or get better, youre right on.
Corey: Mike would it be the same to cash in some equity line just so it looks good to the banker having a nice amount of cash in the account when you go in to purchase another property
Penny: you guys have so many good things to say, I just enjoy learning from you all.
elba_NY: hey johnmark
Roger_Dawson: Hi johnmark
johnmark: hello
elba_NY: these guys,Penny I tell you.
Mike_Summey: Corey, I don’t think I would pull from the equity line for that, but refinancing a property back up to its original amount and keeping the payment the same doesn’t affect your cash flow and it gets you the cash out.
Mike_Summey: Hi johnmark
ken: What is everyones thoughts on New Orleans for investing in properties
johnmark: Hello Mr. summey
Penny: elba, I’m having a nice Savinogn blanc, eating smoked salmon & chevre’ sit quietly & watch.
Roger_Dawson: Mike, tell everyone about the cruise we’re planning next year!
Penny: oops Savignon
elba_NY: yumy, yum yum.
Al_Lee: ken, even teh Mafia is scared of new Orleans
Mike_Summey: Quiet Penny! You’re making me hungry.
elba_NY: see guys, Penny knows how to chat
ken: lol true
ken: Me to
hottie: I want what Penny is having
ken: I know a few years ago pittsburgh was about bankrupt, not sure were they stand now
Mike_Summey: We should be able to put details about the cruise on the website within the next few days. The dates are May 20-27 next year.
elba_NY: Now the rest of you gets to see what happens when Penny speaks.
Penny: oops hottie, thats Sauvignon. miss spelling it 2 times, guess I’ve had too much.
elba_NY: Wait Mike. What cruise.
hottie: Mike, do you have rates yet?
elba_NY: speak kind sir, speak.
Roger_Dawson: Hottie, it doesn’t cost, it pays!
elba_NY: Niiice, roger.
hottie: Penny, gotta love the wine!!! You didn’t pick an easy one to spell sober!
hottie: Roger, nice selling point!!
Mike_Summey: elba, it will be the Weekend Millionaire at Sea crusie aboard the Royal Carribean ship Mariner of the Seas.
Roger_Dawson: I just call it wite. I call spell wite even when I’ve had a glass!
Al_Lee: OK, everyone go register for my Las Vegas event. Sept. 22-23 at that MGM Grand.
hottie: Mike, where does it sail from?
Mike_Summey: hotie, tentative rates are $2499 per person and 4498 per couple for 7 days
Al_Lee: o www.RentHouses.org and click on the picture of the MGM Grand swimmng pool to register.
elba_NY: Al, Ive been trying to get hubby to vegas for a while now.
Al_Lee: Elbe, ths will make it a tax-deductible business trip.
hottie: Mike, they went down…when do you have to book by?
Mike_Summey: hottie, sails from and returns to Port Canaveral, FL
Al_Lee: Be there-or be Square!
Penny: Roger. 
ken: al i might be there the 28 
patcho: Question to all. I bought a 6-fam in Dec 03 @ 5/20 years 6% fixed for first 5 years then adjustable 1% over prime every review period of 5 years. What w/b best to do at end of my first 5 years?
shoe_kc: ok…thanks folks, I gotta run..c u next week
Roger_Dawson: Patcho are you in Canada? That’s a strange loan for the US.
Mike_Summey: hottie, things should be finalized by next week. Interested parties should book quickly after it is officially announced as there are limited cabins available.
patcho: No, Fall River, MA
Al_Lee: Roger, that sounds liek a normal commercial loan which you woeul have to get for a 6-family
Mike_Summey: patcho, how it is cash flowing?
Roger_Dawson: Patcho if you go to prime are you locked in for 5 years, or can you refinance?
Al_Lee: That 6% is a pretty good rate today
patcho: Cash flowing is good. After the 1st 5 years I can refinance
oz: Gotta run all. I am a silent listener as is Penny, just don’t have the wine and cheese with it. G/night all.
Al_Lee: I need to run mow. Have to answer to a higher authority.
patcho: GN OZ
elba_NY: bye oz
Al_Lee: Goodnight all
Roger_Dawson: Goodnight Oz
Mike_Summey: patcho, as you approach the adjustment time, review the cash flow and if rates are still high you may want to get a 2-3 period before the next adjustment.
ken: night everyone
Mike_Summey: goodnight ken
patcho: I would have to find what the bank offers. It is a local bank and sometimes they have fixed thoughts as well
elba_NY: Penny, Mike, Roger its always a pleasure and unique experience. see you all and everyone next week.
elba_NY: bye ken
Penny: night elba
Roger_Dawson: Thanks Elba
patcho: GN Elba. thanks for the encouragement
Mike_Summey: patcho, they’ll certainly offer a fixed rate if they think rates are going to go down.
hottie: Roger, can we write off the cruise?
elba_NY: gotcha patcho, come next week.
Mike_Summey: goodnight elba
patcho: Thanks Elba
Roger_Dawson: Hottie, can’t promise. Talk to your CPA but I would.
patcho: Mike, thanks for the advice
Mike_Summey: hottie, yes I’m sure it could be deductible. Talk to your tax accountant.
Roger_Dawson: Got to run. Goodnight everyone.
Corey: Mike it was nice having you back tonight i had to pull over early tonight in missouri on my way back to san antonio to chat but it is always worth the knowledge i gain from you
Mike_Summey: Thanks Corey. Good luck on catching a storm.
Mike_Summey: I’m going to have to run also.
Corey: tons of maybes but those don’t pay bills
Mike_Summey: See everyone next week.
sparky37: night all
hottie: GN Mike, Roger all
Corey: bye mike
Mike_Summey: goodnight
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