Chat Transcript February 12, 2007
Posted on February 13, 2007
santosleigh hello mike, i hope you recieved my email today on n.y.c. foreclosures. i bought my first house on jan. 29th for $50,000 cash and now i am getting a home equity loan for $29,000 and putting down $6000. cash for a 3 br. house in buffalo next to my first house, the loan monthly payment will be under $200. am i going too fast with this, should i sit back for a spell or go foward with another property. the first houses rent is $650. the second house rent is $605.
Theo_SC hello
santosleigh hello theo, what do you think of what i have done so far.
Theo_SC it’s great…you referrering to the site?
Theo_SC r u the web master?
santosleigh regarding what i have done with my purchases.
Theo_SC tell me about it…
Theo_SC where r u?
Theo_SC hello pscherer
Pscherer Hello
Theo_SC where u from
Pscherer Northern CA
Pscherer You
Theo_SC Greenville, SC
Pscherer University there?
santosleigh i am 61 years old and don’t have much time to become a millionaire so i think i have to move fast
Pscherer Do you own any rental property now?
Theo_SC r u buying properties and selling?
Pscherer Buying only
Theo_SC yes, I own some rentals
Theo_SC single family
Pscherer How is the market there?
Theo_SC not bad…real estate is still consider cheap in this part of the country
Pscherer It has slowed here, but it is still not cheap. Over 600,000 median
Theo_SC wow…our median is around 80k-100k
Pscherer Our rents do not even begin to cover the monthly payment much less the tax bill which is 1.25% of purchase price
Theo_SC I can buy 60 to 70 cent on the dollar
Theo_SC hey Roger
Pscherer I have been buying out of state for some time
Roger Dawson Hi everyone!
Pscherer Hi Roger
oz Hi Roher
Theo_SC Try Greenville, SC
Theo_SC We also do PM
Roger Dawson I spoke to Mike Summey earlier and he’ll be joining us soon
Pscherer You mean do your own PM or manage for others also
Theo_SC where r u to night Roger?
Theo_SC ey Mike
santosleigh roger, what do you think of my progress so far, i was the first question on the chat
Roger Dawson Theo, I’m home in Los Angeles where it has been a bright, sunny day.
Theo_SC manage other people as well
Theo_SC it’s cold in SC low 50′s
Roger Dawson Santo: I can only see the chat from the point I signed in, so tell me again
Theo_SC visit www.jcarealestate.com
Theo_SC hey Mike, u r late
Theo_SC Mike & Roger, we been on the last 20 minutes chatting
Roger Dawson Good for you, Theo. You’re welcome any time.
Theo_SC Roger & Mike…I am a licsensed PM in SC
Mike_Summey Hello Everyone!
Roger Dawson Hi Mike – welcome
oz Hi Mike
Theo_SC PMIC
kevin I haven’t started investing yet. looking very seriously at it though. here is one of my biggest questions. how flooded is the market with real estate investors right now?
Mike_Summey Theo, when did that happen?
Theo_SC Back in November
Theo_SC I am adding that layer onto the business
Pscherer Kevin nothing compared to a year or two ago
Mike_Summey kevin, I’ve been investing for 35 years and not a single year has passed that people didn’t tell me the market was flooded with investors.
Theo_SC Now I can hire PM to work for JCA
Mike_Summey Hi biller & shane
biller Hi, everyone.
Mike_Summey Hi Zoe
Zoe Doxa Hello Mike and everyone
Roger Dawson Kevin: a lot of the heat has gone out of the market in the last year. The speculators are no longer there, leaving the market to investors like us. It’s a great time to buyuy
Mike_Summey Pscherer, those weren’t investors, they were speculators.
biller Mike: VA foreclosures. I’ve bought one (Nashville, TN) and they seem like a great deal w/ only 5% down, no PMI, competitive rates, etc.
shane_Ky Hi Mike
Pscherer Amen Mike
kevin i was wondering because where i live i always see these signs posted alone the road that say we buy house call …. i assume that is a real estate investor
biller Is there anything else I should know? I’m considering more in DFW area.
Zoe Doxa Hello Psherer
Pscherer Even at that many of the self proclaimed investors never bought anything
Pscherer Hi Zoe
Doug_in_CT Mike, What do you think about trying to do Short Sales now that the Foreclosures seems to be 35% over last year?
Mike_Summey biller, both VA & FHA loans are still assumable. I think the assumption fee is about $35
Theo_SC Mike…I am trying to grow the business from different angles
kevin well i am not really letting that hold me back. i figure anything worth doing you are going to have to fight for. i went to my first house auction last weekend…he it was very exciting as nerdy as that sounds 
biller Anyone can buy VA foreclosure – don’t have to be a vet.
Mike_Summey kevin, there are people who sell people that putting up signs etc. is the way to go. If the truth was known I’d be willing to bet that most of them make their money selling the signs and giving presentations.
Mike_Summey Hi angela
santosleigh roger, i bought my first house jan.29th for $50,000 cash a 3 br, in buffalo n.y. now i am getting a home equity loan for $29,000 and putting down $6000. cash the next house which is $35,000. the loan payment will be under $200. the rent on the first house is $650. on the second $605. am i moving too fast should i sit a spell or go foward i am 61 years old and don’t have much time to become a millionaire.
Roger Dawson Angela: you don’t have to give us your Email address unless you want to.
Mike_Summey Hi 1099
w1099 Hello everyone
kevin they asked for 15% at the end of the auction though … that would be hard for me to come with at this point. i am consider for me to get started i will have to find a way to make a no money down deal or i could use the equity in my house but only have about $30000 to use and that makes me rather nervous
Doug_in_CT Mike, Roger, Have you two ever tried to negotiate a Short Sale for a Seller who was “under water” on their mortgage and needed to sell?
Mike_Summey santos, congratulations of that purchase. I got your email today about it.
Roger Dawson Santo, that looks like a great start to me. the first two buys are the hardest After that it’s easy.
w1099 Y is that Roger?
Theo_SC Santo…r u using the offer generator? If not, get a copy…
angela531@sbcglobal.net Hi Mike, I’m in escrow, closing the 28th on a property that I’ve held 4.5 years here in LA. Will be 1031-ing about 350K into another investment prop, that must be worth 630K or more. Looking in LA and Austin, any other suggestions? And what do you think of the market in Miami? Has it hit bottom and will it be going up? Good place to invest?? Thanks…
Mike_Summey kevin, you may want to look for properties where the seller has a large equity and try to buy with a small bank loan combined with a larger seller loan.
Mike_Summey Hi Penny
Theo_SC hi Penny…happy new year…
Penny Hi Mike
angela531@sbcglobal.net thanks, Roger, first time, techno idiot…
Roger Dawson Doug, short sales are not complicated. Present your offer to the seller. they go to their mortgage company and ask if they will accept it. Give them all the comps you can to establish that it’s a fair offer.
Penny Theo, & Happy New Year to you also!
kevin yeah i have the cd’s you guys did. i am going through them for my third time..learn something new every time. i also have the book and i have two other books from other authors..just to get a different spin on things though it sounds like your program covers it all
Mike_Summey angela, I’d be leery of the 630K property. That sounds like a pretty expensive property to rent. As for Miami, I’ve heard a number of horror stories coming from all over Florida, but they are all coming from people trying to sell.
KenJ.onAI Hello Mike and Everyone
Mike_Summey Hi Ken
kevin how do you write a note … or get a seller to write a note?
Penny Hi Roger.
Roger Dawson Hi Penny
Mike_Summey angela, you can log out and log right back in as just angela if you want.
Doug_in_CT Thanks Roger, that sounds easy enough. I hear a lot of folks talking about getting “trained” on how to put together a good Short Sale packet for the Loss Migigators.
w1099 Mike Iam learning the important of using your mortgage as a tool to help in your investments
Doug_in_CT Mitigators.
angela531@sbcglobal.net Haven’t identified a prop yet, but I’m selling mine for 630 so the new prop (looking for a duplex or fourplex, or some condos) will have to be equal to that.
Mike_Summey kevin, have the closing attorney or title company prepare the seller note.
kevin oh ok i have been wondering about that every since i came across it in the book and cds
Mike_Summey Ther you go!
Mike_Summey Doug, another way is to get the seller to give his bank permission to talk with you about the loan. If had a great deal of success that way.
Mike_Summey Hi Pete
kevin so how do you find out if the seller has a very low morgage on the property? just have to ask the seller or their agent?
Roger Dawson Kevin the note is the evidence of the debt. Shows the amounts and payment terms. You can by one at an office supply store. The mortgage or trust deed is the security for the note. Have an escrow or title company do that for you.
Pete Hello Mike
santosleigh mike, should i continue to keep getting these home equity loans, and keep buying, i am working with a real estate man in buffalo and i am buying the properties before he puts them on bid for assets, this way i don’t pay the auction fee of 10% the first house i saved $5000. the second i will save $3500.
Doug_in_CT So you get them to to sign a documents that lets you negotiate directly with the lender then, right Mike?
Mike_Summey kevin, if I can’t find out I usually make an offer asking for seller financing and see what their reaction is. If they have no equity to finance you’ll find out soon enough.
Mike_Summey Hi Brian
Brian Hello Mike and all!
kevin oh ok hehehe tricky i like it
w1099 Which is best to use H. E or a L.Of Credit Mike?
Mike_Summey santos, keep buying as long as the properties will cash flow. Just be careful not to overextend yourself.
Roger Dawson Angela, are you saying it should be more because you want to defer taxes?
Mike_Summey Hi fly
fly Hello Mike…
fly hello everyone……..
Mike_Summey Doug, they only have to give the bank permission to talk with you about their loan. They don’t even have to know what kind of deal you offer the bank.
Zoe Doxa dance Can anyone shed some light to these figures for “full room” repair: 10 X10 = 100 sq. ft. X 3.5 to get the exact total of 350 sq. ft. sheet rock for repairs, does this formula sounds correct?
w1099 Hello fly
angela that’s correct. I’m selling a prop for 630K and have to find another to defer taxes under the 1031 rules. Looking for a good place to invest now in units, or condos, or good rentals I can hold for awhile…
Mike_Summey 1099, an open line of credit is always the best to have, but only use it if you have to.
kevin i listened to this one part of the cd like 5 times coming home from work today. you were talking about taking out a home equity for the dp on a property. then when the property starts renting take a second morgage out on it and pay pack your home equity loan. is that correct? that sounds illegal for some reason 
Brian zoe what is wrong with the sheet rock?
Theo_SC Mike & Roger…I am planning a 1031 this year, any suggest in the type of property. I looking for muti-units.
w1099 Thanks Mike
biller Mike/Roger – I was waiting to see if Al Lee was going to be in, but I guess not. I was reading a previous chat where he says foundation problems can be an investor’s dream. I am looking at property in DFW, many of which have foundation issues. What should I look out for? Do you agree with Al?
Mike_Summey Zoe, I’m not following you.
Mike_Summey angela, you don’t have to reinvest it in just one property. You can reinvest in several.
angela Yes, I’ve read that… any markets to suggest? I know LA and I’m learning about Austin, near the campus.
Doug_in_CT Now somewhere Mike, you talked about buying something like 50 properties in one year. I am trying to find out where a guy can get the kind of cash necessary for 50 downpayments.
Mike_Summey kevin, that’s not what I was talking about. Use the home equity loan for the down payment and then after you have owned the property for a while, refinance and get enough to pay back the home equity loan.
Roger Dawson Zoe, if you’re only talking about the walls a 10×10 room with 8ft ceilings would have 320 square feet. ((10+10+10+10) x 
Add 100 feet more if it includes the ceiling.
Zoe Doxa It’s a hypathetical question as to a formula to figure out how much sheet rock I will need to replace any damaged ones to raise the appeal of the investment.
Brian No matter what is wrong with a room that size it should be repaired by a tradesman in one day (I’m one of them Zoe) One days labour will in most cases do it
Mike_Summey biller, I’d rather leave that to Al to answer as I’m not familiar with the problems he has in Texas. Maybe he will join us before the chat is over.
Mike_Summey Hi Mike2
Pscherer zoe if you got that from a contractor the reason for the formula is it figures waste in the calc
biller Doug: a problem I have found is that some lenders don’t want to make loans once you have 10 mortgages. It might be hard to find a loan, and when you do, the I/R might be higher than what makes sense.
Zoe Doxa Thanks everyone
Brian Anytime
w1099 Hey Al
Al Lee Hello, Mike, Roger, everyone
Mike_Summey Zoe, why don’t you get a sheetrock person to give you an estimate?
Doug_in_CT Speaking of the Devil, Al Lee…
Theo_SC hey Al…
Mike_Summey There’s Al…we were just talking about you.
angela zoe, sheet rock comes in 4X8 sheets and you want to nail it to the studs. So formulas don’t really work. Figure out where your studs are (usually 16″ on center) and count how many full and cut sheets you will need. A 10′ wall will need 2.5 sheets, and walls are usually 8′ high.
Al Lee Whoa!
Al Lee What were you saying? Good or bad?
w1099 God Al
biller Al: I just wrote this 2 minutes ago: Mike/Roger – I was waiting to see if Al Lee was going to be in, but I guess not. I was reading a previous chat where he says foundation problems can be an investor’s dream. I am looking at property in DFW, many of which have foundation issues. What should I look out for? Do you agree with Al?
Al Lee not “God”, surealy!
KenJ.onAI Mike, I went to look at another bank REO last week. I began talking to a neighbor who let me know another home accross the street was vacant. I looked up the owner’s name and contacted him. He used to have the prop. rent-2-own, and the seller bailed out. Now he is willing to sell. It pays to talk to the neighbors. I hope we can work out an agreeable offer.
Zoe Doxa I did Mike and I just wanted to know if his information was accurate
Zoe Doxa Thank you Angela
Al Lee Aha! Yes, that is a great topic.
Mike_Summey biller, its not that they don’t want to make the loans, its that over 10 and the loans are classified as investor loans and can’t be sold on the secondary market. The lender has to keep them as portfolio loans.
kevin i just bought a house with foundation problems. it is the house we live in unfortuanly i got impatient and jumped in before i knew what i was doing. lesson well learned. foundation problems are serious matters. if you have to jack, which i did, you can pretty much expect dry wall to crack so you will have to go back and repair and paint that as well. then after you jack the house will settle again so you may have to do it again …. i would be very cause with buying a house with structural issues. i lucky have been able to fix mine but it took a lot of work.
Al Lee Foundation problems in Norther Texas re common because of the soil. This was ocean bottom a million or so years ago.
Al Lee The groudn swells and shrinks as the moisture content changes. That causes many foundations to break or shift.
Doug_in_CT So what is the impact of the Lender keeping them as Portfolio loans, Mike?
Mike_Summey Ken, that’s why I strongly recommend getting out and riding the neighborhoods. You can learn of deals before they ever hit the market.
Al Lee Foundation problems can be slight (cheap to fix) or major (expensive to fix–very expensive)
Pscherer Doug he has less money to lend if he needs to keep them
shane_Ky Mike, I am thinking of buying 72 units again that are on a hud loan. The owner will carry me some on it but in order to buy because of a arly payoff penalty I will have to buy the whole llc. are you familiar with the hud type of loan. after two years it can be refinanced.
angela Count on at least three sheets of drywall for each wall, to make up for salvage. Drywall is not expensive, but it’s heavy (too heavy for me, and I’m pretty handy!) plus it takes a little getting used to making the cuts so find a handyman by the hour to hang it for you.
biller Mike: I found it hard to find a loan, and when I did, the I/R was much higher b/c I have > 10 mortgages. Is there a loophole or something to get around this?
santosleigh mike,i am ready to have my taxes done, this year is different than last. i took a annuity fund i had from another job and cashed it in, i am age 61 with that and my earned income, and a pension i collect, it totals $186,176 my expences were $15,000 for business. the federal with holding was $35,000 did they take enough taxes or am i due to pay.
Al Lee When you are selling a house with a foundation problem or a history of foundation problems, though they may have been fixed, it is a stigma that hurts the value.
w1099 Al what Is Tune key Investment?
biller Al: what do you look for when trying to get a value on a home with foundation issues?
angela and zoe, whatever you don’t use… take right back to the Home Depot.
Mike_Summey Doug, they have to be willing to keep them for the interest rate they get on the loan rather than selling the loan, keeping the fees and service commissions.
Al Lee That means that you can buy a house that has/had foundation problems at a discounted price.
biller Al: that is assuming that you plan to keep the property as a rental for a very long time, if not forever?
Al Lee ease the house, however, the tenants could not care less about foundation problems–especially ones that have been fixed.
edison hello
Mike_Summey shane, I’m somewhat familiar. I’d recommend that you do some serious due dilligence before jumping in. Some of those HUD deals have some real strict conditions that you may not like.
biller Al: do you defer to an inspector and their assessment of the seriousness of the foundation issue?
Al Lee That means that you can buy cheaper and rent for the same as for any other house. That equates to positive cash flow !!!
Mike_Summey biller, try another bank.
Mike_Summey Hi edison
biller Mike: This is why I bought the last VA property. VA/Vendee does not care how many mortgages and rates are still competitive.
Al Lee YOu shoudl use a licensed house inspector to determine if there are foundation problems. Then you need to have a foudnation repair company give youa quote, or at least estimate, on the repair cost.
biller I did find a bank that would loan, but the I/R through my numbers off significantly.
Mike_Summey biller, that’s correct.
edison hey mike do you think its a good idea to buy property at the county sheriff sale? and rent it out
Theo_SC Mike…most of the banks in my area have shay away from investment loans…
Mike_Summey biller, adjust your offer price to reflect the I/R you can get on the loan.
Al Lee I hope i answered the questions. I just kept writing as your questiosn kept coming in because I tried to anticipate what you would ask
biller Al: so prior to purchase you have a foundation repair co give you a quote to repair the house?
kevin does insurance go up if it is a rental property..how about the interest rate on bank loans?
Pscherer kevin yes to both
KenJ.onAI Roger, I got a voicemail from this investor who may want to sell him home. He said he had the rent to own-er on a contract for $100K(but they left without closing), and bank “appraisal” at $89K. I haven’t seen the inside yet, but I’m guessing it will only support about $45K based on experience in the neighborhood and the NOI’s there. What’s a good way to open up the negotiations and let him know I’m serious about buying?
shane_Ky Yes, I have looked at the contract. I manage my own properties. I dont like the hud loan . but I am able to get into the a property that I could not get into if it was not for the help.
Al Lee Use a house inspector to determine that there is a problem or is not. Then a foundation repair company to determine the cost
Mike_Summey edison, sheriff’s sales seem to be different from state to state. Here you are only buying the sheriff’s lein, not the property. Other states it’s different.
Al Lee I bought a house for 20-30k below market because it had foundation problems that cost me $2,500 to fix
kevin Pschere, is the increase a lot over a home you live in?
Pscherer Kevin, It can be
Mike_Summey kevin, you only need fire and casualty insurance on a rental, not a full homeowners policy.
Al Lee I have also seen foundation problems that woudl cost $39k or more to fix
angela I’m looking at units in Austin, but am getting mixed answers about yearly tax assessment and how they determine the value. Anyone have any info on this? taxes are high there and I’m worried they may go up and eat any cashflow.
biller Al: I assume with the native soil, there are a lot of companies that do this type of work? Do you care to recommend any?
edison AL lee are speaking of sheriff sale
Roger Dawson Ken: explain to the seller how you determine what the property is worth to you, that is based on the income it will generate less the cost of getting it ready for rental. That way the seller doesn’t think you’re trying to low ball him.
Pscherer Kevin it also depends on statewhere the property is located and the condition of the property
Al Lee I have no particualr recommendation. My property managers would peick one
Al Lee I don;t know anything about sherrif sale
Mike_Summey Theo, I think the banks are reflecting the number of want to be investors who got in wrong and are now in trouble. Those who followed the WM way did not do that. Also, you have to go through both sides of a real estate cycle before the banks will consider you a serious investor.
kevin ok thanks. my father-in-law owns an alstate company so maybe this weekend i will run that question buy him
Zoe Doxa dance Right now I am presently looking at some potential properties which will need some work in the sheet rock side of it. These properties were decided on due to chapter 5 in $$WM$$ [u]Secrets[/u] concerning locating good buy’s with the “[b]WHOLESALE[/b]” techniques and the difference between “[b]Terms & Price[/b]“.
Pscherer Angela from my research 2.7% to 4.7%
biller Al: Your prop mgrs also help you buy property? Since I assume you have estimates done prior to making a purchase offer.
Mike_Summey Hi Sparky
Al Lee biller, yes, they halp me buy. I don’t buy anythign unless my prop managers say it will be a good rental
angela Thanks, Pscherer
sparky37 hello Mike
Al Lee I try to get a quote, rather than an estimate, before buying any property that needa any repairs.
biller Al: What does an estimate from a foundation repair co cost, more or less?
Brian Hi Mike you said…you only need fire and casualty insurance on a rental, not a full homeowners policy…then what does the homeowner get to cover the whole property?
KenJ.onAI Roger, That’s what I’ve been doing. I just want to make sure its not too big of a shock when I give him the $45K cash offer for the home. I think he may have a small amount of equity (based on last purchase date and loan history) he could take back if he is willing as well.
Al Lee estimate form a foundation company is free. They hope to get the work, and usually do
Pscherer Biller, I always ask my property anagers also before making a purchase. they have been a great source of info and know some of the properties I was considering
Roger Dawson Zoe, sheet rock is not the worst problem to have. Comparatively inexpensive to fix and makes a big difference. Factor in the you may want to replace the insulation once you get the sheet rock off.
Brian Sorry Mike I meant renter
w1099 Foudation talk tonight something new to me but am learning lol
Zoe Doxa Absolutely Roger, Thanks
Theo_SC I agree with that, I am going through both side. That why I am so glad I started my investing career the WM way. My properties are in good shape when I see other investors around trying to get out, but the number are upside down
Mike_Summey Brian, renters have to carry their own insurance to insure their personal belongings. You only need to insure what you own. A homeowner has to insure both because that’s where they live.
Brian Thanks
Zoe Doxa This what makes it right for me because of my personal talents to remodel homes
kevin i found a sort of local group of REI that meet once a month and socialize and discuss different aspects of investing. do you think this is something good to get involved in. it is about a 2 hour drive for me to get the the meetings?
Al Lee Roger, how are you?
angela And Zoe, it
biller Al: I know you are in DFW area. The numbers oftentimes make sense until you throw in the outrages property taxes. Insurance seems high too. Anyway to curb either?
Mike_Summey 1099, not all areas have foundation problems. We have practically none in the mountains of NC.
Pscherer The REI groups I have visited vary greatly with some excellent to some just silly
angela And Zoe, it’s much cheaper once you get the sheetrock off to update any plumbing and electrical at the same time
Al Lee Roger, I am promoting investos to come to Dallas and get a tour of the properteis we have built for rentals and of the sites for the next projects. You ought to fly down.
kevin yeah i am skeptical of this one because in one thing they mentioned bring board games to play….
angela good question biller
Theo_SC At what point do Banks become motivated?
biller Sorry to turn the chat to foundation issues. I am currently looking for property in DFW and foundation issues seem common here.
Mike_Summey kevin, the REIA groups are good places to make contacts, discuss investing, etc.
Al Lee biller, all of my cash flow projections factor in both the taxes and insurance, so the outrageous rates are not a problem
Doug_in_CT I have found a fellow in my town who was looking for something to do. He has a health problem and his disability plan prohibits him from making too much salary. So I have hired him a low wage to do some Weekend Millionaire Farming with me. His job is to find undervalued properties in our market and then analysize them with the Offer Generator and then tell me when he finds a property that “works with the NOI.”
KenJ.onAI Mike, Roger, Everyone, Thanks for the Chat, A lot of Good Stuff Here I need to read later. . . . Have a great evening
w1099 Well by the 22 of this month i will be in NC, Charlotte to live and invest Mike
Theo_SC A banker told me last month they had 41 properties come back.
Zoe Doxa :} Roger I have yet to purchase your Audio programs and will just as soon as I get through the three $$WM$$ books.
Al Lee If you can make a positive cash flow after paying the insurance, taxes, principal, and interst, why do you care what the rate is?
angela biller, from my research about Austin I know there’s a form to contest your tax assessment, and you have to do it every year!
Mike_Summey Doug, that’s a good strategy.
Mike_Summey I assume everyone in the chat already has the Offer Generator…right?
kevin does anyone here use linkedin program on the web? its networking software and i would love to add you guys to my contacts?
santosleigh mike, i guess you missed my question i had $186,176 income last year total expenses of $15,000 and federal with holding of $35,000 was that enough or will i have to pay a big sum.
biller Al: it makes the possibility of making cash flow a lot more difficuilt.
Zoe Doxa I appreciate that info Angela
Mike_Summey Theo, which bank? I need to visit them? Or have you already bought them all?
w1099 Not Yet it on my to do list this month Mike
Al Lee The fact is that taxes and insurance in Texas are L O W E R than in many other areas because the valuation is lower. A 3% tax rate on a $100k property is less that a 1% rate on a $500k property. If both bring $1200/month rent, which woudl you prefer?
angela I don’t have the offer generator
Al Lee biller, go to www.buyRentHouse.net and you will see that getting cash flow is not hard at all
Zoe Doxa My “OFFER GENERATOR” will arrive to me within the week. Totally excited about it Mike :p
Roger Dawson Zoe, thanks, I’m sure you’ll enjoy them. If you don’t Mike will give you your money back!
Al Lee 1099, my chess rating on Gameknot is up to 1529 now !!! Lotsa fun!
Zoe Doxa Ha, Ha, Ha, Laughing very hard!!! lol
Mike_Summey santos, the rental properties will help your tax situation up to a point. I’m not familiar enought with the tax code to advise on the amount you would need to withhold.
w1099 Al we have to play our rematch before I move
Doug_in_CT Thanks Mike, He was fumbling around with the Offer Generator awhile. It struck me that a video or CD/DVD of Mike walking thorough the processes of evaluating an opportunity with the Offer Generators would be a “desideratum” (i.e. a think to be desired.)
Doug_in_CT thing
Al Lee 1099, OK, we will do that. Thanks again for introducing me to that site. It is much better than Yahoo’s chess site
w1099 Great Idea Doug
w1099 No problem Al
Zoe Doxa Wow Doug it’s a good thing you broke that down for me
Mike_Summey angela & anyone else who doesn’t have the Offer Generator. If you will visit the store on the website after the chat you can take a tour of the program. Just click the red button that reads “Learn how the Offer Generator works”
angela thanks, Mike
w1099 ok Mike thanks
Pscherer Mike I went right after the last chat and agian the next day, found no red button or tour.
Brian Just got it 2 weks ago Mike and have already made 4 offers!!
Mike_Summey I did a live demo of the Offer Generator at the conference where I spoke last week. It was the biggest selling item at the conference.
Zoe Doxa Congrats Brian :}
Doug_in_CT I sent my new employee to the website to look at the screen shots, but he was still letting out some crys, like “Where did my offer go?” “What did I do wrong?” etc.
Roger Dawson Pscherer: you may need to hit your refresh button. Your computor stores the website and goes to that first.
Pscherer Very good, thanks
Mike_Summey pscherer, go to the store, click on the Offer Generator like you were going to buy it. The red bar will appear there. It is in every place where you can buy the OG.
biller Al: I went to your site. I mean no offense, but…
Zoe Doxa Yes Mike congrats to you and the 20+Thousand profit on the $$WM$$ tools
Al Lee no offense taken
Al Lee but…
biller In the example you show monthly pmt of $815
Al Lee biller, you have lef tme hanging ???
Mike_Summey Doug, it is a static demo tour. You can’t input data, only see how the screen look and what info you need to enter to make offers.
biller Is that just the mortgage, or does that include taxes, insurance, mgt fee?
Al Lee biller, OK, $815
kevin ok well i suppose no one is using linkedin.com yet so if you are interested in getting started with it message me or send me an email at kharr1027@gmail.com i will send you an invitation and you we can be connected. it is a great way to network
Zoe Doxa Hey Mike, Will the OFFER GENERATOR come with instructions?
Doug_in_CT Yeah, we found it helpful to see what kind of percentages you were using for return on your cash for your down payment and repairs, etc.
Zoe Doxa Welcome back Psherer
angela kevin what is linkedin??
Al Lee The $815 is including taxes and insurance on a 30-year, fixed-rate loan with 10-year interst-only option based on an estimated 2.35% tax rate (rates vary from neighborhood to neighborhood) and .6% insurance premium (that is the rate I am currently paying in Texas).
Mike_Summey Zoe, they are on the welcome screen. It explains that every place you need to make an entry if you don’t know what to do just place the cursor on the label and pop-up help will appera telling you what action to take.
Al Lee biller, that also assumes 20% down
Theo_SC Al…what’s site address?
Brian Al Lee what is your website again please?
biller That loan doesn’t sound very favorable
Mike_Summey Doug, was that for me?
Zoe Doxa Awesome Mike :}
Al Lee www.buyRentHouse.net is the site biller is referring to
biller 20% is a lot to put down.
biller Is there HOA?
fly Got my og a few weeks ago…..comes with All instructions… i love it…!
Al Lee I also have www.myRentProperty.com and www.RentHouses.org
kevin angela, it is website that helps you managed contacts and network with people. so if i know tom and then tom know bob which knows jane that is the CEO of HP i have a connection and get in touch with these poeple. i really want to get more contacts that i know that are into real estate that way we can lean on each other if need be
Mike_Summey Thanks fly. Send us a testimonial we can post whenever you want.
angela very cool, kevin, like a MySpace for biz contacts
fly i’ll do that……
Brian Sorry Al Lee got bumped out say again?
Doug_in_CT Yes Mike. The screen shots on the website are a good start, but I would like to see it expanded onto a little movie where you soothing voice is describing your thought processes as you work through the evaluation of the deal.
fly it really is a great tool….!
kevin angela, yeah pretty much
Al Lee www.buyRentHouse.net is the site biller is referring to
w1099 Networking is a powerful tool for business
Al Lee I also have www.myRentProperty.com and www.RentHouses.org
Mike_Summey Doug, that costs money! Then we’d have to raise the price of the OG.
biller Al: is $1050 realistic rent figure? Is that what is currently being paid on the existing properties?
Mike_Summey At only $69.95 there’s no doubt that the OG is the best tool on the market for the money.
Doug_in_CT Maybe you could use your digital camera and then put it up on YouTube.
biller Al: what is the management fee?
Al Lee biller, it is very realistic. That is actually so realistic it is Guaranteed!
Al Lee on the Guaranteed Rent program that rent is net of management fees.
Brian Thanks Mike /roger/al and all good night!
Doug_in_CT I found putting a little video up on You Tube is very easy, a lot of folks might get interested in the software from such a little video.
biller The 20% D/P is steep, though.
Mike_Summey Anyone in the chat who was at the conference where I spoke last week?
Al Lee We have soemtimes gotten as high as $1200/month for those houses
biller Al:that sounds like top dollar for the house. That’s excellent.
w1099 Well going to the store to check out how the OG works go nite everyone until next week same time same bat channel
Mike_Summey goodnight 1099
Al Lee Thes are all Section 8 rents, so the rent rate is set by a government agency and the checks come form the government. They never bounce
biller I have a brand new house in Little Elm for which I took $995/mo. I have very slight cash flow, but I had it vacant for a couple months.
w1099 see u Al on gameKnot
Al Lee See You 1099!
Roger Dawson Mike spoke last week at a conference of high powered real estate salespeople. He was a huge hit because, although they had all earned a fortune selling real estate, they hadn’t take the time to build wealth by investing in the product.
angela I’d like to learn more about Section 8, I get calls about it every time I rent out my house in Vegas
Mike_Summey angela, check out your local housing authority.
Al Lee the www.buyRentHouse.net properties are all Section 8
Pscherer RE Agents own very little property. I was reading an article the other day that stated only about 3% own rental property.
biller I almost took a section8 tenant in little elm, but the sec8 agency dropped the ball. Any insight on becoming sect8 certified? is that the propert term.
Theo_SC good night all…
angela I like working with agents who are also investors, it’s a good question to ask when you’re interviewing them
biller Can a homeowner apply to sect8 to have any property certified?
biller does the process take, typically?
Mike_Summey Pscherer, the people to whom I spoke were the top sales people in the country who are selling high dollar resort properties. The message I gave them was “WITH WEALTH YOU CONTROL CIRCUMSTANCES – WITHOUT WEALTH CIRCUMSTANCES WILL CONTROL YOU!”
Zoe Doxa dance Well goodnight Mike, Roger and everyone. Thank you for a fantastic chat room experience. God bless you, your family, and your Investments.
Al Lee biller, you will not have much luck with Section 8 on yoru own unless you devot a lot of time to it. Our property managers have estableished a great rapport with all of the Section 8 offices, so we do well with them.
Pscherer I am amazed that agents being around folks who have grown their equity to huge amounts here in CA haven’t seen the light and purchased themselves
Doug_in_CT I think that is a common problem Roger. Our CTREIA is all about flipping and wholesaitling, preforclosures, but very little in discovering the secret you reveal in the Weekend Millionaire “You don’t want $1 Million, you want the cash flow that $1 can generate.
angela AL, so you recommend using a prop manager if you want to go section 8?
Al Lee angela, I recommend using a property manager regardless whether it is Sectio n8 or not
Mike_Summey Pscherer, just as there’s a big difference between earning a living and building wealth, theres a big difference between selling real estate and investing in real estate.
angela good point, Pscherer, and I know lots of those agents – they usually try to discourage me!!
Roger Dawson Doug, I couldn’t have said it better.
Al Lee I think yo will find that Mike and Roger agree with that.
Pscherer I work in an office of 60 agents and only two of us own rental properties and both of us have owned them a very long time and add when ever it makes sense.
Roger Dawson Some RE agents actually think it’s unethical to invest when they should be serving their clients. I wish my stockbroker thought that way.
Roger Dawson Gotta run folks. See you next week!
Pscherer Roger no one said agents were bright
Al Lee Roger, I think that is soemthing they say to ratinalize not buying any real estate themselves
Mike_Summey I’m going to have to run also. It’s been a great chat tonight. See everyone next week.
Pscherer I think you are right Al.
kevin Pscherer what state are you an agent in?
Pscherer CA and ID
Pscherer and soon WA
Al Lee I need to run, also.
fly nite all……….
Al Lee I enjoyed the brief time I spent with you.
angela goodnight, thanks all
Al Lee See yo next week, I hope.
Brian is it over?
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