Chat Transcript October 30, 2006
Posted on October 30, 2006
Al_Lee: Hi, Mike
Mike_Summey: Hello everyone
Del: hello
Al_Lee: Hi, ROger
Mike_Summey: Hi Del, td & Roger Dawson
Roger_Dawson: Hi Al and Mike!
Del: hows it goin sir?
td_sc: Hi all
Mike_Summey: Going great Del. How about with you?
Del: im alright just got done with my school assignments
Mike_Summey: I’ve had a busy day today. Mortgage payment day.
Roger_Dawson: Is everyone happy? dance
Mike_Summey: Hi Ken
Del: oOo
Del: how many properites do you own?
Mike_Summey: Del, several hundred.
Mike_Summey: Most are paid off, but I still have mortgages on about 35
Al_Lee: Roger, I am happy!
Del: if you don’t mind how many hundred?
ken: Al everytime I get on your website it either slows my computer up or locks it up, do others have that problem?
Del: I have zero 
Al_Lee: ken, I have never heard that before. Do you have a pop-up blocker turned on?
ken: Yes
Al_Lee: That is the most common problem I hear of–pop-up blockers
Mike_Summey: Laura Bush is coming to Asheville in the morning. My two sons & I are going out to see her. She sems to be a fine lady.
Mike_Summey: Hi SAR
ken: ok I’ll turn itoff next time.
Del: you dont have to tell me I understand
SAR: Hello Mike
Del: I just finished reading the weekend millionaire mindset, and how to invest in real estate in your spare time
Mike_Summey: Del, I don’t like to go into detail too much on my personal business in the chats. I hope you understand
Mike_Summey: Hi Theo
ken: Al have you heard anything about texas buckleing down on section 8 funds
Theo_SC: hello everyone
Del: i deffinitely understand
Al_Lee: Mike, I would go see her. Sounds liek an interesting day. dance
Del: I learned from you that asking questions to successful people is important, but you should not push them, over time they will open up…
Mike_Summey: My son Jason wrote a book in high school and President Bush Sr. did the foreword for it. He is going to give Laura Bush an autographed copy of it.
Mike_Summey: Del, where are you located?
ken: Most successful people tell me about a article or book
Al_Lee: ken, There was a reduction in Sectio 8 rents last year. We have 10,000 people waitign for Sectio n8 housing in d/fw alone and our property manager has a terrific relatinship with all the Section 8 administrations. We are getting tenants fo rour houses very quickly and at good rents.
Theo_SC: Hello Roger
Del: Elmhurst, Il (its about 20 min away from chicago
Roger_Dawson: Hi Theo. How ya doing?
Theo_SC: fine
SAR: Mike, Do you favor Section 8 here in NC?
Mike_Summey: Theo is my hero!
Mike_Summey: Hi Penny
Roger_Dawson: Hi Penny!
Penny: Hi Mike and Roger.
Mike_Summey: Has anyone in the chat gotten one of our new coins yet?
Al_Lee: Mike, of course, you know I have one!
Del: Mike, are you familiar with the suburbs of the chicago area?
Roger_Dawson: I have mine right here. Looks great!
Mike_Summey: Oh, I forgot about you Al.
Al_Lee: It is really a beautiful piece. Looks like it could be worth $1mm
Mike_Summey: Del, somewhat familar.
Mike_Summey: Hi hottie
Theo_SC: hey Mike…I bought a on Saturday from a motivated seller who pretty much give me the house & all the furniture in it.
Roger_Dawson: Del, our audio publisher, Nightingale-Conant is in Niles, so we’re familiar with that area.
hottie: Hey Mike, Penny, Roger
Penny: thats great Theo!
Theo_SC: Mike…you are my hero!!!! 
Mike_Summey: Theo, sounds like a story to me. Want to share it?
Mike_Summey: Hi Sol
Theo_SC: oh yea
SAR: Mike, I had a brief conversation with a friend in Raleigh who own 3 houses in a low income area and informed me of the Section 8 process. He seems to favor Section 8. Do you have any insight with Section 8 here in NC.
Sol_(Cali): Hi. Nice to be back.
stock13: Hi guys, I am interested in buying a 2 family house that is listed that it has 2 three bedroom. I checked with the assesor and they say it is assesed for 2- 2 bedrooms. The home right now is gutted. If i rebuild it with 2-3 bedrooms in each will I have a problem
Del: Roger, Niles is not far from me, Your negotiating skills have paid off in my ever day life already
Penny: Hi hottie, and everyone.
Theo_SC: Virginia was with me
Al_Lee: Mike, I will use is as my tie-breaker decision maker. When I can;t make a decision I will flip it and surealy always get the right answer. ;>
td_sc: theo-sc where are you in SC?
Theo_SC: Greenville, SC
Penny: good idea Al
Roger_Dawson: That’s great Del. From what I understand, Chicago was a good buyer’s market even during the crazy years.
Del: Sadly I have not bought anything yet
td_sc: I live in greenville, I’m in minnestoa right now
Mike_Summey: SAR, my experience with Section 8 has not been good. They pay well, but I find their tenants do a lot more damage than most others. I may have just gotton some bad ones, but I haven’t had a good experience with them.
Theo_SC: td…are u part of creia?
Al_Lee: I signed the contracts this week on a property in Oklahoma–my first! It is a 320-acre ranch.
Al_Lee: Is it clod in Minnasota?
Al_Lee: Minnesota
Del: I heard that the real estate market is coming to a halt, I heard negatives things, should it worry me, because I am just starting
td_sc: theo-yes, and a new investor. I travel for work so don’t make to many meetings
td_sc: Not too cold, just got here today.
Mike_Summey: stock, I’d definately clear it with the building inspectors before changing it’s use. It’d be a shame to spend a lot of money and then not be able to get a certificate of occupancy.
Theo_SC: the guy is 4 months behind on payments & can’t carry the house anymore. it has $36k equity
Theo_SC: he just want out of it
Al_Lee: I will probably bring the kids to MN again this year so they can go tubind in the snow. That was good fun!
SAR: Mike, I am still in the neophyte stages and I believe I know a couple of “bread and butter” neighborhoods. I drove through one of them a noticed 4 houses for sale. Let’s say I challenge the ‘threshold theory’. How do I know as a beginner what I should be able to expect as an asking rent price for this neighborhood?
Theo_SC: he’s willing to give me the tire house with furnitures
Mike_Summey: Del, the slowing market is very good for long term investors. It makes good deals easier to find because there isn’t the competition that is present in a hot market.
Penny: whow Al 320 acres? for a personal ranch or do you plan on developing?
Theo_SC: I will close on it this Friday
Del: thank you Mike
Theo_SC: I will give him $2500
Mike_Summey: Theo, in other words, he said, “To heck with the cheese, just let me out of this trap!”
stock13: Any one here from the cental n.j. area
Al_Lee: Penny, my son and I will do some improvements to the house and a few other things and sell it. It will be fun to do.
Penny: neat. and great time to spend with your child.
Theo_SC: That’s is exactly what happen, I could not beleive it. I almost could not contain myself
Mike_Summey: SAR, you should meet with property managers who know the area and seek advice from them.
Al_Lee: Penny, is is over half wooded hunting area. Deer, bear, turkey, etc.
Mike_Summey: Hi Terry
Del: Mike or Roger can you honestly tell me what price range I should buy my 1st house within. From reading your books I assumed it should be around $100k but that isn’t seem like its possible unless it’s a Condominium, am I wrong and not looking hard enough or should I look for more expensive properties?
Mike_Summey: Hi bgmike
terry: hi mike
Theo_SC: Mike…this stuff work just like you write about
Al_Lee: Penny, he is 36, but it is still good to spend time
Mike_Summey: Del, the price range will vary from market to market.
Roger_Dawson: Del, it doesn’t matter as long as the rent will support the payments and expenses.
Al_Lee: Congrats, Theo
Mike_Summey: Del the price is not important. What’s important is that the NOI will cover the deal.
Theo_SC: I told Virginia that is a Weekend Millionaire story…hosnestly, it’s amazing how it happened, I am still pinching myself
Mike_Summey: Roger, I invited Terry to join us tonight. Say hello to him.
Mike_Summey: Hi Mac
Roger_Dawson: Del, the problem with condos is the homeowners association. They can really mess you up.
Penny: Theo, it sounds like you and Virginia make good partners in life too.
bgmike: Hi mike, Been busy putting together an attorney & manager.
Penny: ditto on the congrats.
Mike_Summey: Theo, did you use the Offer Generator on the deal?
terry: terry..hi roger hope you’re well
Mac: Hi all
Roger_Dawson: Hi Terry, good to see you here!
Theo_SC: I sure did
terry: my pleasure
Sol_(Cali): Thanks for sharing your story, Theo. It’s encouraging.
Sol_(Cali): Theo, how did you find this guy/opportunity?
Mike_Summey: SAR, do you have the Offer Generator yet?
SAR: Mike, Yes I do
Theo_SC: Mike…remember the fishing story? I thought about that story you told
Mike_Summey: SAR, have you tried to structure any offers with it yet. You saw a few lines up where Theo made a great deal using it.
Del: Mike, Roger thank you for your insights
SAR: I have played with it but not knowing real numbers I got a little confused with it.
ken: Mike when using the offer generator what is the average percent return would you use.
Al_Lee: Some people will say you got lucky, but luck only comes to the guys who are out there trying.
SAR: Ken, Great question
Theo_SC: Sol…another investor posted it on the creia message board & I called
Mike_Summey: SAR, work through sever hypothetical deals until you get familiar with it, then use it to start making some offers. If you aren’t sure about rents or expenses, be conservative and use numbers you feel comfortable with.
ken: I use 14 but That is very hard to even come close. the taxes here kill the deal
Sol_(Cali): What’s the “creia” message board? Is it specific to your location?
Mike_Summey: Hi Bob
Del: Mike or Roger I dont know how to ask this so ill ask it like this. it doesnt matter how much you pay or how long it takes to pay it off as long as… ???
ken: most of the time I don’t even get a counter its so low of an offer
Bob_(vegas): Greetings from Sin City
Theo_SC: Ken…depend on what you want, I use 5% to 10%
Al_Lee: Hi, Bob
Theo_SC: and how much you have in the deal
Al_Lee: Bob, you need to email me so I have you correct email address on file.
Bob_(vegas): Hey Al
Mike_Summey: Ken, use whatever % you feel comfortable with on the cash you put into the offer and then structure the financing so that the remaining NOI will suppor it. I’m happy with a break even cash flow deal in the beginning.
td_sc: Hi Bob, I spend lots of time in NLV
Theo_SC: Penny…Virginia will be glad you said that
Mike_Summey: Hi Rick
RickCAN2: Greetings All!Hi Mike!
Al_Lee: Hi
SAR: Mike, I assume it is market to market, but my major concern is the occupancy. I believe the number used in the equation was .16 Again, I guess this is something to ask property managers???
Al_Lee: Bob, if you will send me an email at al@RentHouses.org I will add you to the database.
Mike_Summey: Hi jpazderak
Del: Al
Del: are you also a proven investor?
Sol_(Cali): Gotta run… wish I could stay.
Mike_Summey: SAR, that is correct. The vacancy factor also varies from market to market. A good property manager can give you a pretty close eztimate.
Al_Lee: Del, I have been investing since 1974 and retired in 1999 to live on my rental income. I wrote a book on it, do a radio show on it, manage an investor club. I do not know what “proven” is, but I have been at it for a long time.
Theo_SC: Mike…I think you were right last week when you said that the best deals may be out there
Penny: just being honest in saying the obvious. Its a wonderful thing to have the support of a partner. Makes all the hardd work you both do worth it.
Del: wow thats very impressive
ken: on average what do you put in for a maintenance factor is the unit under went a rehab
Del: Al how do I know how much to pay for a house
Del: NOI is not the problem
Al_Lee: Del, I have a rule-of-thumb that I will not pay more than 100 months gross rent.
Del: ohhhh
Del: sorry if my question that im asking sounds stupid
Theo_SC: I encourage using the offer generators, it’s show you a solid picture, I run all my nubers through it…it’s a great tool
Al_Lee: That has room for some slack if the house is particularly good or financing is particualrly good.
Roger_Dawson: Thanks, Theo
Mike_Summey: ken, there is a great inspection form on our website under “downloads” I use it when inspecting a property and estimate the repairs right on the form. It is a very helpful tool both when buying and to use as a move in move out inspection form.
Del: hey mike
Al_Lee: Del, I believe (as does Mike and Roger) that every property must produce cash flow. If you stick with that you almost can not lose.
Mike_Summey: Del, there are no stupid questions…only beople who remain stupid because they don’t ask about the things they don’t know.
Del: ok
Del: I just feel alittl worried of making a mistake
Del: Is it true that if end up with a bad deal that it could ruin me?
Theo_SC: Mike/Roger…the funny thing is I wasn’t even looking to buy until next year, I met my goal for this year, it just landing my in lap…what do you do…..
Al_Lee: Del, nothing can ruin you except quitting.
Mike_Summey: Everyone, if you use the Offer Generator to calculate your offers, it will alert you if you are trying to create a negative cash flow deal. It is the best tool on the market for long term investors to use to calculate how to buy properties.
SAR: Al_Lee, If I was to apply your rule of thumb, a house collecting 1200/month of rent, you would consider paying 120k for the house???
Al_Lee: I have made huge mistakes and always saw it through until things returned to good
Al_Lee: sar, that is right
Del: oh ok
ken: mike didn’t you say you show some banks the offer generator? if so what was their opion
Mike_Summey: Del, if you do anything, you are going to make a few mistakes. That’s how you learn. That’s also why we created the Offer Generator. It will keep a novice investor out of trouble.
Del: ohhh
Del: I am starting to see why it might be a good idea to get that
Al_Lee: sar, you can go a little higher than 120k if the financing is good, though.
Del: should I get it before I start? or try with out it 1st?
Al_Lee: sar, it is cash flow that really matters, not price.
Mike_Summey: ken, I did a seminar in Greenville, SC recently and several of the bank officers I do business with were in attendance. They all bought the Offer Generator and several banks in Asheville have bought it for thier loan officers.
SAR: Al_Lee, I often hear “…if the financing is good”. I really don’t know what that means
Al_Lee: sar, if te payments are low enough to allow cash flow at a slightly higher price.
Mike_Summey: Hi zert, you’re late tonight.
Theo_SC: Del…I suggest get it and use it. It will take the guess work out
Al_Lee: sar, remember, you must get positive cash flow, never negative
Theo_SC: U r right Al
zert: Hi Everyone - better late than never Mike
Del: theo, thank you
ken: Del get it. it’s the best money i’ve spent
Del: everyone, It will be my next purchase.
Del: thank you everyone
Theo_SC: It even prepare the offer letter, all u do is print it edit it
zert: Mike - can you explain how you handle your water surcharge?
ken: I also like the package deal you can get with the course tapes and book. it is nice to hear voices other than the ones in my head
Mike_Summey: The Offer Generator is so simple even I can use it. Every block where you enter data has pop up help by simply placing the cursor on the label.
SAR: Al_Lee, I have played with the offer generator with numbers out of my head and could not seem to develop positive cash flow, unless I used numbers that I thot were not realistic.
Al_Lee: btw, you all should consider registering for my Las Vegas event on May 4-5. It will be at the MGM Grand.
Theo_SC: Mike…will there be future add on?
Theo_SC: or upgrades?
Al_Lee: sar, go to www.findrentproperty.com and use the numbers you find there. That will get positive cash flow and it is real, not fictitious.
Mike_Summey: zert, on units where I furnish water, the lease has the rent in one place and the water surcharge in another. The water surchage line gives me the right to increase the surcharge at any time if water rates go up. I don’t have to wait until the lease renews.
ken: Mike how do you do a print screen?
td_sc: Mike- can offer generator handle a multiple house purchse or just one at a time?
Mike_Summey: Theo, possibly.
hottie: Is there another way on-line, to find out the taxes on a property? Going downtown to our courthouse is a nightmare.
zert: Mike - is that an additional monthly charge, and did you calcuate that using some kind of average?
SAR: Al_Lee, How do I find info on your Vegas event?
Del: I am a college student at Depaul Universtiy and am in my 3rd year, I really dont have much income, my credit score is under the “Fair” category, how will any bank apporove me for a loan?
Mike_Summey: SAR, you must think out of the box. There are many ways to finance other than banks. Seller financing, third party financing, etc. These people are much more flexible on terms than banks.
Theo_SC: Mike…Virginia wanted to log on tonight, but her server is blocking her. All she talked about how she could not wait to share this deal with you.
Al_Lee: sar, go to http://www.RentHouses.org and click on the big picture of the MGM Grand swimming pool. It will take you to the registration page.
Bob_(vegas): Answered an Ad in sundays paper. A hurricane Katrina victim has 20 homes in Vegas all pool homes in the $400 K range. He is looking for a partner or to unload some or all…..
SAR: Mike, It’s scary outside the box
Mike_Summey: zert, the water surcharge is over and above the rent and is not subject to property manager’s commission. I adjust it based on average water usage.
Theo_SC: She kept saying this is truely the weekend millionaire way
Mike_Summey: SAR, the more time you spend outside the box the more comfortable you get.
zert: thanks - another question if I may..
Mike_Summey: Theo, tell her I said hello…and to get a computer that won’t block her from the chats.
td_sc: Bob- Good luck on those.
terry: *beep* gotta split. thanks mike. see you again soon roger. terry
Roger_Dawson: Thanks Terry
Mike_Summey: Del, a bank probably will not, that’s why you need to look at other options such as seller financing.
Mike_Summey: Hi Doug
Doug_CT: Hi Mike, Rog, et. al.
Del: So dont even consider asking any banks?
Mike_Summey: Go ahead zert.
Theo_SC: By the way guys, I am buying this property in my Land Trust, the mortgage is remaining in the name.
Al_Lee: Hi, Doug
Theo_SC: the rate is 5.17%
Doug_CT: Hi et. al.
zert: How do you distinguise between $$ spent to get a new property available to rent (pass cofo inspection etc.) and those $$ invested to fix up the property to add value?
SAR: Mike, It’s scary outside the box current
SAR: Mike, sorry, I lost my message
zert: I just need a bigger BOX !!!
Mike_Summey: Del, while you’re still in school you will have a hard time getting bank financing. Keep in mind that there are thousands of properties that are owned free and clear. The sellers can finance these any way they want. I currently have several loans at 0% interest from sellers.
Al_Lee: zert, if you are clever you will classify all your expeditures are “repairs” and not as “improvements”
Theo_SC: Mike…I will get her a computer, she is using her work Laptop
Del: ohhh ok
Mike_Summey: Theo, sounds like you’ve arrived.
Del: so find some one who owns their home free and clear?
Al_Lee: You can tak all of the repair costs as a tax deduction this year, but an improvment must be capitalized over many years
Corey: Hi Hottie, Mike and Roger and all.
zert: al_lee for tax reporting purposes?
Al_Lee: zert, that is right!
hottie: Hi Corey!!
Roger_Dawson: Hi Corey
Theo_SC: I owe it all to you & Roger method, I told you I am your biggest fan
Mike_Summey: zert, I treat them both the same. Cash is cash. I expect the same return on my cash whether it is down payment money, repairs to get ready to rent or total renovations.
Al_Lee: zert, I never, never do improvements, I only do repairs
zert: I was looking at it from a NOI perspective
Mike_Summey: Hi Corey, where are you tonight?
Del: can you elaborate on third party finance?
Theo_SC: I pick up your and that was it…I was hooked
Theo_SC: your book
Corey: San Antonio, Tx for the next few weeks hopefully
SAR: Mike, I am rebuilding my credit and my personal cash flow/savings is currently ‘frozen’. How should I consider thinking outside the box and still be comfortable purchasing homes?
Mike_Summey: Del, third part financing is someone other than a bank or the seller. I have several loans from individuals who chose to put money into mortgages with me secured by real estate rather than into bank CD at a much lower rate. I try to pay a rate midway between what banks pay for deposits and what they charge for loans. That way the lender get more and I get a good deal also.
Theo_SC: Roger…how is the market in your area?
Del: Mike, where can I find possibly a list of people looking to invest their money?
zert: doug_ct - what have you been up to?
Theo_SC: Hey Bob_Vegas
Penny: Hi Corey. I think San Antonio was recently mentioned as being one of Texas’s best buying markets.
Mike_Summey: SAR, one technique that often works is to get a small 1st mortgage with a bank 20-40% and ask the seller to carry the balance.
Penny: ivestment markets
Bob_(vegas): hey theo
Penny: investments
Roger_Dawson: Theo, S. Cal is in a real slowdown mode. Builders are stopping building, on the market times are increasing and prices are beginning to drop. There will be some good buys soon.
Doug_CT: Hi Zert, I have been playing a lot of Monday night Tennis, but now with Day-Lights savings time, I am back in the chat room. I have been following the discussion in the archives, however.
zert: doug_ct it was dark here at 5:20 YUK
Mike_Summey: Del, think of people you know who may have money in bank CDs. Relatives, friends, etc. That’s usually the best place to start. Once you do a few deals and have a track record than you can seek out people you don’t know.
Theo_SC: Roger…r u still buying?
Doug_CT: Seems like you were dealing with a tough eviction Zert, Did you ever get past that?
Corey: Penny I don’t really know that much about the real estate market here. However there are areas that seem to be growing fast
Roger_Dawson: No, Theo. I’m retired.
Mike_Summey: Doug, I can’t believe you…playing tennis when everyone else is learning.
Doug_CT: But Mike, I have been learning in the Chat Transcripts area.
td_sc: Goodnight all
Theo_SC: That right Doug…
Del: Mike, where do I find someone that is an investor looking to invest his or her money?????
zert: Doug - yea it took awile but it is finally resolved. One family member rented to another family member who didn’t/couldn’t pay the rent
SAR: Mike, How do you know a management company is doing their due diligence with one of ‘my’ vacant property’s to get occupied?
Del: oh ok
Del: sorry
Del: so start with people that I know?
Mike_Summey: SAR, ask them what they are doing to advertise the property.
Doug_CT: Zert, I have found that the dead beat tenant does finally have to go. The sooner the better, but you CAN get them out, but you have to repeat Mike’s favorite word, patience, patience, patience.
Mike_Summey: Del, that’s where I started. People who know and trust you are more likely to work with you that people who don’t untill you have a solid track record to show.
Theo_SC: Good night all. See you next week. Mike, I will send you an email later this week.
Mike_Summey: Goodnight Theo.
zert: Doug - It was getting way to complicated for me, so I moved on to another opportunity. Dealing with family and the emotions is very difficult
Del: mike
Del: ok lets say I find some one that will invest their money in my property that I want to buy
Del: what is their incentive?
Del: they monthly incentive.
SAR: Mike, Using the generator, what number should I comfortably use for the vacancy factor? If purchasing your first house and NOT over extending yourself, do you ever consider how many months you may need to carry the rent if the tenants are not paying, the house remains vacant, etc…
Mike_Summey: zert, always, always, always start the eviction process on the very first day you can. That let’s the tenants know you are serious and you can alway stop the eviction if they pay up.
Doug_CT: This is where the value of the Property manager comes in Zert. It takes all the emotions out of it. How did your other opportunity come out?
Penny: goodnight everyone. Hope to see you all next week. Early work day tomorrow requires early bedtime.
Penny: goodnight.
hottie: gnite Penny
zert: I never owned that property. I was looking to buy it. Too complicated so I moved on
zert: Doug- tenat moved in this past weekend!
Del: AL Mike Roger what monthly incentive does a private investor have if i get the money from them for a property
Del: ?
Mike_Summey: SAR, check with property managers in your area and ask them what vacancy rates are running. The most effective tool, by far, in keeping good tenants is to do credit, criminal and background checks. That’s what a professional manager will do for you.
Mike_Summey: Hi mrbiggiesir
Doug_CT: Zert, Great! Now you sit there and enjoy the possitive cash flow, hopefully until next year or more.
mrbiggiesir: Good evening everyone!
Del: please answer me before you leave Mike
Al_Lee: Del, a private investor, also called a “hard money lender”, will want a hgh interest rate, up-front fees, a lien on the property, and a strict contract so they can foreclose easily. They will not want to give you 100% of the value of the property, either.
zert: Doug, thanks I am looking forward to that!!! and to moving on to the next deal
Mike_Summey: Del, you can offer a private investor more than the bank is paying and less than you you would have to pay the bank plus you can secure the loan with real estate.
Mike_Summey: mrbiggiesir, where are you located?
Del: but in what form do I pay them?
Del: Al, do i pay them monthly or how?
Al_Lee: Del, pay them cash form your income stream
Roger_Dawson: Good night everyone. I’ll be in the chat next week from Mike’s mansion in North Carolina
Al_Lee: You often pay them monthly, but soemtimes quarterly.
Del: Al, I understand that, but
mrbiggiesir: Rancho Cordova, California
Mike_Summey: Del, you pay them monthly payments just like you would a bank. the investor holds the mortgage instead of the bank.
mrbiggiesir: Mike, how do I go about getting the finance needed to buy properties in Foreclosures?
Del: ok so when I set my rent rate, I include the interest I have to pay the investor?
Doug_CT: I was able to raise a lot of cash from refinancing my four-plex. Now I am waiting for the good deals that Mike says are coming down the pike in the next year or so.
zert: Just so everyone knows - the first purchase, fix up, PM selection, Inspection is the hardest, it seems to get easier after that because you have an idea what to do and look for
Mike_Summey: mrbiggiesir, the reason I asked is because you are late. We are just about to wrap up for tonight. Try to join us next week an hour earlier if you want to participate in the questions.
Del: Mike, Al although you guys claim that I the only stupid question is one not asked, I still felt silly asking my questions
Al_Lee: Del, you do not have complete control over your rent rate, the market does. You must use a realistic rent rate when you estimate your incomes and expenses so that you do not walk into a negative cash flow situation.
Del: thank you very much for your time and your patience
SAR: Zert, what is PM selection
zert: Property Manager
SAR: 
Del: I understand completely, these question were a huge boulder off my chest
Del: I am ready to get started
Doug_CT: Did you find a good one Zert? PM that is?
Mike_Summey: I’m going to have to leave you tonight. Got to go to a meeting. See everyone next week.
Del: Hey Mike, wanna no what my goal was?
Mike_Summey: The rest of you keep talking as long as you want.
zert: Doug, I think so however time will tell
Al_Lee: Del, you shoudl use comparable data to estimate the rent you will get for a property. That can be found on MLS in some cases, or from an experienced property manager in all cases
zert: thanks Mike Good Night
Del: write the how to become a weekend billionaire investing in realestate
Del: Al, everything you have told me today
Del: Thank you very much
SAR: Al_Lee, where have you most invested since 1974?
Del: Al will you be back next week?
Al_Lee: Del, keep at it. You will succeed if you don’t quit and don’t let yoruself get discouraged. We all started knowing nothing.
Doug_CT: How did you find your PM Zert?
Del: thanks again Al see you next week?
Al_Lee: almost entirely in Dalls/Fort Worth. The best market in the US
Al_Lee: Goodnight all
Del: Good night
zert: It was a referral from a Real Estate Broker
Doug_CT: Sound good. What is your area of the country again Zert?
zert: Rochester NY
SAR: Thank you everybody. Next week, eh.
Doug_CT: Ok, that sounds like a good area. Plenty of good housing stock, but not too overly hot like east and west coast.
Doug_CT: But are you responsible for the snow removeal?
zert: solid houses, not overly pricy, slow appreciation, however high taxes
zert: snow removal?
Doug_CT: Slow and steady wins the race.
zert: Not really buying expecting on high appreciation, buying for long term cash flow
Doug_CT: Have you looked at the history of appreciation in Rochester in the www.ofheo.gov Housing Price Index?
zert: no what is it?
Doug_CT: It is considered the gold standard of appreciation measurements. Done by the government, it takes into account sales and refinances.
Doug_CT: They have this thing called msa’s (Metropolian Statistical Areas)and I am sure they have one for Rochester.
Doug_CT: You can find out what appreciation has done over the last housing cycle. A cycle lasts about 10 years.
Doug_CT: So if the last cycle showed apprecition of 7.5% (the national average) then it is very exciting to project that value out ten years.
zert: I will check it out
zert: what happened?
» Filed Under Chat Transcripts
Comments
Leave a Reply