Chat Transcript October 16, 2006
Posted on October 17, 2006
hottie: is anyone there???
hottie: Hey Mike
1099: hello everyone
hottie: Hi 1099
Mike_Summey: Hello
Mike_Summey: Hi hottie
Mike_Summey: Hi Jeff & Mac
Jeff_WV: Hello Mike
Mike_Summey: I had to rush to get back for the chat & missed dinner.
Mike_Summey: Hi Ken
hottie: Mike, eating is pretty important
Mike_Summey: Hi Penny
1099: well iam eatingnow mike
Penny: Hi MIke.
hottie: Hey Penny
Mike_Summey: I may get something to eat after the chat.
Penny: Hi hottie.
Mike_Summey: How is everyone tonight
Mac: Finally figured out where to enter a comment. Hi, Mike
1099: save some 4 me lol
Penny: I’m eating dinner while I watch also, 1099
Mike_Summey: Oh, hi again Mac. This your first time?
1099: that the only penny
hottie: We are under a tornado watch down in MS. Lots of rain and a night of t-storms
Mike_Summey: I have something to announce later in the chat when others join us.
ken: Mike on the offer generator is there any way to price out the NOI sheet that shows what taxes, rent, managment fees are
Mike_Summey: hottie, that means Corey will be home, right?
Penny: 1099?
Mike_Summey: Hi elba
elba_NY: good evening everyone.MIke penny hottie
Mike_Summey: Hi Al
hottie: Mike, no hail here, though. He’s in WI for now
elba_NY: hey there Al, 1099
Mike_Summey: hottie, that’s a hail of a note!
1099: thats the way to stay in the chat without missing it
Al_Lee: Hi, Mike, everyone
Penny: elba!
1099: hello elba and Al
Al_Lee: Better late than never!
hottie: Mike, ha ha ha…
hottie: Hi Elba
Mike_Summey: anyone got any news tonight?
Al_Lee: Hi, Elbas
1099: Thanks Al for the info on when to get a PM
elba_NY: ken, youre trying out the offer generator?
Al_Lee: 1099, not problem
Mac: Mike, I’m interested in investing out of state. What’s a good way to find a reputable realtor and other team members?
Mike_Summey: Roger emailed me this afternoon and said he thought he would be able to join us, but he’s not here yet.
ken: Yeah. “trying”
Mike_Summey: Mac, first why do you want to invest out of state?
Mac: To take advantage of high appreciation rates.
elba_NY: have you tried moving the cursor on top of any element? it will tell you wht you should imput etc
ken: Elba when are you moving
Al_Lee: Wow! Mac gives me an opportunity to respond to several thins at one time
Al_Lee: First, don;t invest for appreciation. Look at apprecaition as a bonus you get in addition to your cash flow.
elba_NY: by mid Dec. on the 30th of this month we’re flying down to supervise the delivery of our belongings
Al_Lee: Hey, Carleton. How are you?
Mike_Summey: Mac, appreciation doesn’t mean that much to a long term investor. It’s rental rates that you want to see increasing
Mike_Summey: Hi Carleton
Penny: Carleton! nice surprise!Hi!
Mike_Summey: that’s a surprise.
1099: hello Carleton
hottie: Is this Carleton Sheets??
Carleton: Hello Mike and Al.
Al_Lee: Howdy, from Texas, Carleton
1099: The one and only penny
Mike_Summey: Yep, it’s the one and only Carleton Sheets dropping by to say hi to everyone.
Carleton: Hello all. Just wanted to stop by for a few minutes to say hello.
ken: hi
elba_NY: welcome
Mike_Summey: Ken, I missed your question on the Offer Generator.
hottie: Hi!!
ken: Mike I was wondering if there was a way to print out the NOI sheet
hottie: Carleton, I love using your real estate forms
1099: Will Roger be out tonight Mike?
Penny: 1099, I thought thats what you meant earlier, thats why I sent the ? back. Yes, the only Penny in the chat tonight.
Mike_Summey: Ken, no there is not unless you do a print screen
Al_Lee: Carleton, I have had a lot of positive feedback on that radio show we did. You changed a lot of people’s impressions of you. They had thought you must be jsut a promoter, but now they know you are sincere and that you do what you teach others to do.
Carleton: Hi Penny. Hi 1099 and Hottie.
hottie: Hi Carleton
1099: Hey CS
Al_Lee: I ger an email a week from people who have listend to that who on my website.
Penny: Although I think one other time there was someone that signed on as Penny, but that wasn’t me.
Mike_Summey: Roger is supposed to be joining us, but either he can’t get online or he has gotten tied up. He is in Lake Arrowhead, CA tonight.
Penny: only one me
Carleton: What a nice comment, Al. Guess I’ve fooled a few more (wink)!
Al_Lee: Carleton, I knew it all along! 
Carleton: Anyone here from Kansas?
ken: Mike you talk about drawing equity out of a property to purchase another property. Is that the case if you don’t have enough cash for the second purchase.
elba_NY: can we get into non recourse loans a bit more? we talked about it last Mon
1099: Mike are you going to put all your books on CDs ?
Al_Lee: I spent 3 years in Wichita in the Air Force. Does that count?
elba_NY: I hope I spelled it right
Mike_Summey: ken, as equity builds up in a property you can refinance and get cash out to use to buy more properties.
Mike_Summey: 1099, that will be up to McGraw-Hill. they have the rights to the book on tape medium.
1099: OK thanks Mike
Al_Lee: Elba, non-recourse loans are loand that stipulate the the entire collateral for the loan is the property you bough, not your personal assets. They are common in commercial loans, but not in residential RE loans
Mike_Summey: I’m glad Carleton has joined us to talk real estate. All we ever talk about when we are together are important things like golf and cooking.
Al_Lee: Elbe, you normally pay a higher interest rate for such loans, for obvious reasons
Al_Lee: I had two glasses ow wine with dinner tonight, so my typing is suffering.
elba_NY: that would explain why the lender was not negotiating the interest rate on our last deal
Mike_Summey: Hi Mark
MarkCT: Hi Mike
1099: Only 2 Al wow lol
elba_NY: salute, A.
Mike_Summey: Al was it typocial wine?
elba_NY: Al
ken: Mike, do you have a buyers agent or do you just buy from whom ever presents the offer to you?
Al_Lee: Yes, Elba
Mike_Summey: We have something new that just arrived today.
elba_NY: thanks
Carleton: And noe Mike, after having said what you said, I’m going to have to check out. I have a commitment tonight and early morning radio show tomorrow. But it’s always such a pleasure to be a part of your chat room (and fun too). And to all in the room, you could not have a better mentor than Mike Summey.
elba_NY: what is it what is it?
Mike_Summey: ken, I use buyer’s agents often, but I also look myself.
Mike_Summey: There’s Roger Dawson
Mike_Summey: Where ya been Rog?
Al_Lee: 1099, the evening isn’t over yet. Remember, I am in the Central time zone!
Carleton: Hello (and good bye) Roger.
1099: Your the Man Al lol
elba_NY: Thanks Carleton we know were lucky x3
Al_Lee: Now the meeting is officially open for business. Roger is here!
1099: Hay Roger
Mike_Summey: Thanks Carleton. Goodnight!
Penny: Goodnight Carleton
elba_NY: hi roger
Penny: Hi Roger!
Roger_Dawson: Hi Sorry to be late. I’m up in the mountains outside LA at Lake Arrowhead. Borrowing a friends internet connection and had trouble getting through.
hottie: Gnite Carleton, Hello Roger
Roger_Dawson: Hi Penny missed you last week
elba_NY: Mike what do you have for us?
Penny: Oh, I was around. Glad you got connected tonight.
Mike_Summey: We have just minted a new coin that will be available on our website in the next couple of days. It is a beautiful $1,000,000 gold coin that reads THE RIGHT MINDSET on the top of the face.
hottie: Mike, will that be available at your book signings?
Penny: Mike says it looks beautiful! Like real money! Can’t wait to see it!
Mike_Summey: On the back it read UNITED STATES OF AMERICA - - ONE MILLION DOLLARS
Mike_Summey: It also has our website on it.
Mike_Summey: Hi sparky
Roger_Dawson: Maybe we could sell it to those people in Nigeria.
sparky37: hello all
Penny: oh Roger 
Mike_Summey: The coins are something you can carry in your pocket to remind you that you must have THE RIGHT MINDSET in order to build wealth.
Roger_Dawson: For sale signs are sprouting like mushrooms in S. Calif. Soon there will be some great buys.
1099: Mike I have a idea I need a loan for one million dollars and like in your book i will find a way to pay you back lol
Al_Lee: Roger, I already received an email form a widow in Nigeria who has $120MM o fthsoe coins and will pay me 10% if I will jsut guarantee the sale of them at 50% dscount. She is very desperate fo rcash, so she will take that discount now. I feel f=very fortunate to have been selected to do this.
elba_NY: :p 1099
1099: I am sure I can invest in something that would give me more back to pay u and me.
sparky37: I will send money order for 59 million to cover your expenses just send 5k back
Mike_Summey: Tenatively, the coins will be available for $9.95 or you will get one FREE with the purchase of any audio program.
Roger_Dawson: Right Al! I rang the closing bell at the Nigerian stock exchange in June. That’s their biggest problem. Idiots sitting in internet cafes ruining the reputation of their country.
elba_NY: Mike Roger, can I share how I used the offer generator for my last deal?
ken: Roger If i remember right in the book did it say you pulled out your 401 retirement to invest in other ways
Mike_Summey: elba, please do!
Roger_Dawson: Ken, that’s right. I pulled it all out when I left the corporate world and triple it in nine months.
1099: Please elba i waited form last week to hear this
ken: Roger how did you triple it
Mike_Summey: Roger, did you get your coins today?
Roger_Dawson: Put a down payment on a sixteen unit building.
elba_NY: okay. so we’ve been messing (practicing) around with it for months.
ken: I got about 17,000 makeing around 4% in my IRA
ken: That would work
elba_NY: and like I’ve said plenty of times we have been planning to move for the longest.
Roger_Dawson: Mike, no I haven’t seen the coins yet but I can’t wait. The picture you sent me was beautiful.
elba_NY: we were looking for a house with a mortg pmnt not to exceed $1200
elba_NY: tax and Ins included.
Mike_Summey: Roger, yours should arrive tomorrow if they did not come today. They are beautiful. I’m extremely pleased with them.
Roger_Dawson: Ken, at 4% it would take you 18 years to double your money. You can do it in real estate in one year because of the leverage principle.
1099: Ok elba
ken: Roger Iknow ever time I call merril lynch the talk me out of it.
elba_NY: so we entered the 1200 in place of rent and added the tax and Ins
elba_NY: it gave us an NOI of 795
hottie: Elba, did you include a percentage for vacancy?
ken: ROger they must have your course
elba_NY: we entered 5 days. since we are planning to live in it.
Penny: thats what I thought you said elba.
Penny: so you practiced usihng the generator program on your private home
Penny: good idea
1099: What do u mean that your are going to live there elba?
elba_NY: after that we made room for deposit no more than 7k.
Roger_Dawson: I ordered pizza one night and my financial adviser from Dean Witter delivered it. True story. I should have know right then to pull out of the stock market.
hottie: Elba, that’s a great idea
elba_NY: in any property that could afford the 1200 monthly 1099
ken: lol
1099: Ok
Mike_Summey: very interseting elba, go on…
Penny: depositelba? return on your money down?
hottie: Elba, maintenance costs?
1099: Did u get a property manager elba?
ken: I was doing some repairs at a friends house, he made $60,000 for his stocks in 2 years but invested close to $200,000 thats really not to bad
Al_Lee: Roger, that is one thing I have always said abut financial advisors an dadvice. Never tak advise from somone who isn’t rich.
Mike_Summey: Hey everyone, let’s let elba finish telling us about the deal before we bombard her with questions.
Roger_Dawson: Right on Al!
1099: Ok Mike
ken: ok
elba_NY: no we did not include return on money. or repairs,we did however start with the NOI at $700 and worked our way up
Mike_Summey: I like Carleton’s comment. Anyone can become a millionaire in the stock market, all you need to do is start with two million.
Al_Lee: Roger, I have asked more than one person who tried to tell me what I should do, “So, how much are you worth?”
elba_NY: finally my husband started looking for owner financed properties only.
elba_NY: and he found one.
hottie: Owner financing is hard to find down here lately
elba_NY: we called the listing agent instead of ours just to get the true scoop from the horses mouth
Mike_Summey: There are more owner financed deals that one might think.
elba_NY: it was for sale at 99,900
elba_NY: not that we cared
elba_NY: he immediately said that the seller was not negotiating the 9% rate
elba_NY: we did not care about that either, we already knew what we had to work with
Mike_Summey: hottie, have you made any offers lately?
elba_NY: we ended up offering 97,5 it was accepted immediately. Thats when we found out that it was a bank financing it.
hottie: Mike, It’s been a couple weeks. We are working on getting more cash in our account. We are pretty low
ken: Mike when purchasing a property from a bank could you ask for them to finance the property at a lower rate than they promote?
hottie: Mike, however, I just closed a deal for Corey that should do just that
elba_NY: itself. Our NOI ended up at 45 less than our calculations
Mike_Summey: hottie, during times like that you have to make offers that don’t require a lot of cash.
elba_NY: our offer was received on a Tues we closed that Friday because it was Sept 30th
elba_NY: Sept 29th that is
hottie: Mike, I did try about 4 offers a couple weeks ago with just that in mind. Used the Offer Generator. Got turned down.
Roger_Dawson: Wow, Elba! That’s a fast close!
Penny: so elba, even though the rate is high, a few years will offset that?
Mike_Summey: ken, there is a story in the real estate book on that very point. I got a bank to let me assume the loans of a borrower who was in trouble with no assumption fee and they agreed to cut the rate from 9.5% to 6%
hottie: Mike, but getting turned down is always a good experience. Numbers game
elba_NY: I know we did not believe ourselves until mike and al explained why’
Penny: and whow, your calculations were very close!
Penny: congrats
Roger_Dawson: Welcome Patrick
elba_NY: our offer was accepted above 2 others submitted
Patrick(Ohio): Hello and thank you!
1099: Hey guys have to go Mike, Al, Roger all have a good night see your next week Monday. Elba thanks
Roger_Dawson: Bye 1099
elba_NY: bye 1099
Al_Lee: bye 1099
ken: Mike I do remember that I just was looking to offer somwere around 4.5% that seem pretty low. I think a fix rate is at 6.25
Mike_Summey: hottie, I expect to have at least 90% of the offers I make rejected. If the percentage gets too high I’m offerring too much.
Mike_Summey: Hi Patrick
Roger_Dawson: Good approach Mike
elba_NY: the offer generator said that the return on our money that first year was and almost 8.6%
hottie: Mike, didn’t think about it from that point of view. like it
Patrick(Ohio): Hello Mike and Thanks for your responce!
Mike_Summey: elba, that’s great. I wish more people would understand that you can make deals that no one thinks possible.
hottie: Congrats, Elba, nice deal
Al_Lee: Mike, that is so right! When I ahve made an offer that was accepted immediately I always mentally kicked myself thinking I must have offered too high.
elba_NY: Our goal was to work with what we had realistically and not above that
Mike_Summey: Al, you learned that from Roger.
Al_Lee: I learned a lot from Roger and his book
ken: I just hate getting flat our rejected by a bank owned property, they don’t give you any thing to go on.
elba_NY: Al thats what the hubby said, I told him next time
Roger_Dawson: Al, that’s one of my negotiating rules. Never say Yes to the first offer because the other side always thinks 1. they could have done better. 2. something must be wrong.
Mike_Summey: I always am reminded of the fact that in the beginning I had practically no money to invest and not very good credit either. I made offer for a year before one was accepted.
hottie: Mike, i must being doing something right, got a lot of rejects
elba_NY: Al, the property was Dcading at 107
Jeff_WV: Patrick, where in Ohio
elba_NY: thats city value in Dallas everybody.
Mike_Summey: ken, think of it this way. How did you feel before you made the offer? If your offer was rejected, you’re in the same position. Why let it bother you. Just make another offer and wait for the bank to come to its senses.
Al_Lee: Elba, Say again! I think I mis-heard you.
elba_NY: Dcad’s value.
Roger_Dawson: If you hear of any deals in Southern California, particularly land that can be developed, email me at Roger@rdawson.com. I have an investor who’s eager to joint venture developments.
Patrick(Ohio): Sorry I was readding…Reynoldsburg!
Al_Lee: Oh, Are you referring to D C A D? Dallas Cunty Appraisal District.
Al_Lee: Now I understand.
elba_NY: the last property we know of sold last on our street at 116k
elba_NY: Yes
Al_Lee: Elbe, remember, two glasses of wine. I am not full speed tonight. But, I am happy!
ken: I read the fortworth area is one of the top 10 cheapest places to live
Al_Lee: ken, thaqt is true for both Dallas and Fort Worth.
Mike_Summey: Dallas, Ft. Worth and other areas of Texas are all good areas for investors right now.
elba_NY: ken you are correct. our property’s tax is 3100 a year. a property with the same dimensions in Fort worth is about 1000
ken: taxes are high, I thought PA taxes were, I
ken: yeah I hate taxes
Mike_Summey: I’ll get out an email to everyone as soon as pictures of the new coins are put on the website. You will really like them.
hottie: Mike, I can’t wait to see them
Mike_Summey: hottie, they will be collectors items.
Roger_Dawson: I spent the weekend sailing to Catalina with a group of friends. One is a project manager for a huge builder. They are drastically revised down their expectations. Planning for a break even next year as they adjust to the declining market.
elba_NY: welcome sparky
Al_Lee: In Texas, the tax rate is high (but, dropping); but the appraised valuationis a fractin of what it is in most other major metro areas. That means the actual tax amount is low.
Mike_Summey: My prediction is that we are in for at least 2 years of flat to declining real estate values which bodes well for anyone investing the Weekend Millionaire way.
ken: I’m talking to a person now that has there property for sale going a year.
elba_NY: he meant fraction
Mike_Summey: elba, I thought Penny was our spelling editor.
elba_NY: Im her assistant tonight
Al_Lee: Mike, that is true amost everywhere in the US. Texas is expected to see appreciation of about 9% for the next few years
Penny: sorry, stepped away from computer for refill elba, back now
Al_Lee: Thanks, Elba. I need the help.
elba_NY: NO problem
Roger_Dawson: The first sign on a declining market is length of time on market. Then people either pull their property off the market or drop the price. The great thing for us is that rents rarely decline unless there’s a huge glut of rental properties.
Mike_Summey: Al, that’s because Texas has lagged so far behind the rest of the country for the past weveral years.
Penny: good job elba.
Al_Lee: Rents may even go up as more people compete to rent the houses because they do not want to buy
Jeff_WV: Mike Walters
Al_Lee: Mike, that is exactly true.
ken: I use to send out postcard to people going into forclosure. I stopped because I was sending out about 100 and only getting a 1% call back return and most of the people are beyond hope.
Mike_Summey: Roger, builders rarely build a glut of new rental properties in a declining market. That’s good for us.
ken: 100 a month
ken: got to go, night everyone
Mike_Summey: Jeff, Mike Walters???
Roger_Dawson: Goodnight Ken
elba_NY: nite ken
Al_Lee: Foreclosures are a “pig in a poke”. You can get stung really badly or you might hit a homerun.
Roger_Dawson: Do you mean Mike Wallace of 60 minutes?
Mike_Summey: Hi flyinj
Jeff_WV: sorry you said “weveral years”
elba_NY: flyinj hi
Jeff_WV: Mike I thought it was funny
Mike_Summey: jeff, Al was typing that!
flyinj: Hello Mike 
flyinj: Hello everyone
Al_Lee: I’ll do the tyoping for all of us!
Al_Lee: See?
flyinj: How long does the chat go on each Monday?
elba_NY: Al who has the kiddos tonight?
Penny: Al
hottie: I gotta run guys. Good night everybody
elba_NY: bye hottie
Al_Lee: Elba, they are doing homework and just about finished.
hottie: nite Elba
Mike_Summey: I flew an Angel Flight from Greenville, SC to Norfolk, VA yesterday. A head trauma patient.
Roger_Dawson: flying, usually until 9.00 Eastern when the football game starts.
Mike_Summey: My son Jason was my co-pilot.
elba_NY: mine went to bed really early
flyinj: Thanks Roger
elba_NY: Norfolk thats near my inlaws
Roger_Dawson: Mike, that was nice of you. You’re an angel!
elba_NY: in VA Beach
Penny: not an acute head trauma though, right Mike?
Al_Lee: Roger, you’re pretty special too!
elba_NY: nice
Mike_Summey: flyinj, we start at 8:00 Eastern each Monday and quit around 9:00. You are a bit late this evening, but if you have a question I’ll be happy to try to answer it.
Mike_Summey: Right Penny. He is healing fairly well.
Roger_Dawson: Got to leave you now. Since I logged on we have got from sunshine and beautiful fall colors to completely fogged in. That’s mountain life for you!!
flyinj: I remember you from Carlton sheets program Mike
Penny: thought I might add that.
Penny: for hippa purposes also.
Mike_Summey: flyinj, if you had gotten in earlier, Carleton was with us tonight.
elba_NY: flyinj I knew I was on the right track when my hubby and I saw him too
flyinj: wow what did Carlton say real quick?
Mike_Summey: Carleton & I have been friends for nearly 20 years.
Penny: okay everyone, goodnight. Gotta run. See you all next week.!
Al_Lee: Y’all be sure to com eto my Las Vegas event on May 4-5. Go to http://www.Rent Houses.org and click on the picture of the MGM Grand Hotel to register.
elba_NY: good night penny
Al_Lee: http://www.RentHouses.org that is
flyinj: I
Mike_Summey: flyingj, come back to the website tomorrow and you can read the entire transcript from tonight’s chat. It get posted the next day after the chat.
Al_Lee: I ned to run now.
Jeff_WV: thanks for the info everyone
flyinj: I’ll have questions next week thanks Mike.
elba_NY: Thanks Al. Mike thanks for hosting again. Good nite everyone.
Al_Lee: ight Mike, everyone
Mike_Summey: Hi Eddie, whereya been?
Eddie-NC: still working a job. then the computer wouldn’t let me log on
Mike_Summey: It’s after 9:00 and Monday night football has just started, so I’m going to watch. See you next week.
mrbiggie: What? I just missed the chat?
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