Chat Transcript March 12, 2007
Posted on March 13, 2007
Zoltan hello
the krone greetings, Roger
the krone hello santo
Roger Dawson Hi santo and the krone!
the krone hiya
Roger Dawson It’s been over 90 degrees in LA today
the krone yeargh!
santosleigh hello mike, i am having better luck with the bank in buffalo n.y. than the one in n.y.c. they offered me $37,000 at 6.25% the bank in my area only offered me $20,000 at 7.20% hello roger, hello krone
the krone isn’t that unheard of in LA?
Roger Dawson Santo, I don’t think that Mike has joined us yet. He should be here any minute. Save that comment for when he signs in because I don’t think he’ll be able to read prior comments.
Roger Dawson Krone, we’ve gone from the coldest winter on record to the hottest and dryest March on record.
Roger Dawson HI Zert
Mike_Summey Hello all!
Mike_Summey Hello all!
zert Hello Roger how are you
Roger Dawson Hi Mike!
Roger Dawson [santosleigh] hello mike, i am having better luck with the bank in buffalo n.y. than the one in n.y.c. they offered me $37,000 at 6.25% the bank in my area only offered me $20,000 at 7.20% hello roger, hello krone
the krone well, I’ll be wishin’ I was there when July and August roll around. We’ll have temps like 109 or so in Arlington, TX
Mike_Summey I was just on the phone with Carleton. He may join us for a few minutes later if he can.
Roger Dawson Hi playhard
Mike_Summey Leigh, that’s good. I told you in a previous chat to check out another bank.
Mike_Summey Hi playhard
playhard53 Hi Roger how are you??
playhard53 Hi Mike, Jeff from Asheville here
Mike_Summey Hi Jeff, why are you hiding behind that playhard name?
Roger Dawson Lots of stories in the LA Times recently about sub-prime lenders going broke.
Mike_Summey Jeff is much easier to type.
playhard53 Old college football nickname..
Mike_Summey Hi oz
Mike_Summey I read an article today that said nearly 3,000,000 people are in trouble with their adjustable rate loans.
oz hi mike
Mike_Summey Hi Ken
Roger Dawson We’ve always advocated fixed rate borrowing and it’s paying off for our investors now.
playhard53 Roger I have been in the mortgage industry for 11yrs, and we are really seeing a subprime slide..
Roger Dawson When the lenders are in trouble they can’t offer any flexible solutions to their borrowers.
zert Why are the banks closing? Aren’t they able to forclose? and resell
Mike_Summey Many people who bought using interest only and subprime adjustable rate loans are now feeling the pinch, which is good for investors like us.
Mike_Summey Hi Al
Mike_Summey We missed you last week.
playhard53 The rental industry is going to boom this and next yr I believe
Al Lee HI, I have been out of town and ill for a few days. Back now, though
santosleigh mike, when i get the next property, it is only $35,000 with a yearly tax of $207. it will be hard to get another loan with such a low tax base, hello al.
ken I just looked at a new home for me. they only one that was completed and forsale was over my budget, The realtor did his best to sell me a interest only loan. I passed
Mike_Summey I’ve noticed a real strengthening in the rental market during the past year. It’s only going to get better.
playhard53 zert, banks have to close when the investors stop purchasing the notes that they fund
Mike_Summey Hi eggalvan * Zoe
Roger Dawson Zert, we’re just talking about lenders who specialized in lending to marginal credit risks. Frequently lending 100% of value with a low initial payment that would jump up (sometimes doubling the payment) in 2 or 3 years
Al Lee I agree about the boom comng in the rental industry. I am doing my radio show with an expert on lending next Sunday and we will talk about what is happening int he lending industry
Roger Dawson Hi Al. Didn’t notice you logging in.
Al Lee Essentiall, we are going to have a lot more tenants and rents should go up along with occupancy rates.
Mike_Summey Hi Penny
Roger Dawson Hi Penny
Penny Hi Mike & Roger!
Al Lee HI, Roger. I am not very noticeable. I am sort of a wallflower.
Penny Hi Al, I see you!
Roger Dawson Yeah, right Al!
Mike_Summey Al, rents are increasing here very nicely. We,ve seen more increases in the past year than we did in the past three.
playhard53 Your exactly right Roger!! The problem with 100% lending is that if the market cools and the appraisals cool then they cannot refi to tap any equity to save themselves when the rate adjust.
zert hi Doug, long time no chat
Al Lee 25% of the ARMs that people took out in the past few years to qualify to buy a house when they shoudl have been renters will be coming due for rate adjustment this year.
Roger Dawson Hi Doug
Mike_Summey I’ve had many people tell me that our method of investing was too conservative and that made it harder to find properties. I agree, but I also know that in 35 years of buying, I’ve never lost money on a property.
Mike_Summey Hi Doug
Doug_in_CT Hi zert, Mike, Roger, et.al, I mean et AL
Al Lee A lot of current owners will be renters agian before 2007 is over.
playhard53 There is over 2 trillion dollars coming due this yr alone on adjustable rate mortgages
Mike_Summey Al you’re right about that.
Mike_Summey Hi Mark
Al Lee et tu, Douge
MarkCT Hi Mike, Al, Roger
playhard53 You got that right AL
Al Lee 40% of the sub-prime lenders have folded recently
Al Lee HI, Mark
playhard53 Over 36 lenders have closed since dec 06
Mike_Summey Everyone, MarkCT is the programmer who wrote the Offer Generator for us, so if you have anyquestions about it…ask him!
Mike_Summey Hi Sol
MarkCT Mike did you try calling me today. I thought I saw your number pop up but I was no the phone.
Doug_in_CT My new employee, whose job it is to find undervalued properties, has been very busy lately. We have met a REO realtor and the Bank Owned properties are everywhere.
playhard53 New Centry, the nations largest subprime lenders just stopped taking applications today for good..
ken Mike your right about your way. You can’t lose unless you don’t do your homework. My cousin told me I would never find properties your way. I found 3 in a year.
Sol (Cali) Hi everyone. My wife and I finally got out to inspect houses and make offers. It was really exciting!
Mike_Summey Mark, I think we have things worked out to get the OG on Carleton’s site. Also anyone who has asked me about Carleton Sheets Toolkit, it will be back available on our site shortly.
Roger Dawson Congratulations, Sol. The first one is the hardest. Then it’s easy.
MarkCT Very cool Mike.
ken Mike, Mark are you planning on making any type of upgrades to the software?
Mike_Summey Ken, I never said it was easy or quick, I just said it works.
Mike_Summey Hi Scott
Roger Dawson Hi Scott
Scott Stephens hello
Sol (Cali) Now we’ve got some real world questions…
playhard53 So what is the best way to find properties to purchase?? Where is the best places to start looking?? I am ready to start finally!
MarkCT Ken I have some ideas and my version of the OG has some additional features that we probably will integrate sometime in the future.
Al Lee real-world questions in cyberspace??
Sol (Cali) Al, isn’t virtual reality grand!
Mike_Summey Sol, you will learn with each offer and soon will not hesitate to make them. You only need one a year to be accepted to become wealthy in a few years.
Al Lee Yep!
Mike_Summey Hi jellis
MarkCT Hi santosleigh. I noticed from previous chats that your investing in Buffalo. I own a few investment properties in Buffalo. How is that going?
santosleigh mike,the next property i buy is only $35,000 with a yearly tax of $207. i refinanced the first home to get the $37,000 loan but how can i get a loan for the naxt house with such a low tax base on that $35,000 house
Roger Dawson Playhard, in the final chapters of our first book we take you through the first few weekends and tell you exactly what to do.
Mike_Summey leigh, do your homework. Don’t try to borrow based on tax value, borrow based on income.
Sol (Cali) So anyways…any tips on education sellers on seller financing. Sellers and agents we spoke to either hadn’t worked with it, or expected the rates to be higher than current CD rates.
Sol (Cali) oops.. educating
Doug_in_CT I have heard a couple of investor instructors (AKA “gurus”) talking about using HELOCS in place of traditional first mortgages in an effort to save the interest, since HELOC’s pay at the beginning of the month instead of at the end. Ever heard anything along these lines? It sounded kinda interesting to me.
playhard53 Roger, call me Jeff, I will have to change my name on this. I have already readyour first book but it was shortly after it came out. So its been awhile. Mike and I live in the same town but I have been busy tyring to conquer the mortgage industry and have reached burn out!
Roger Dawson Sol, the rate can be anything you want it to be if you adjust the purchase price. Find out what is most important to the seller. Remind them that they have to pay tax on the interest income.
Mike_Summey Sol, many times you can get seller financing from less than motivated sellers if you offer a rate in between what the banks are paying for deposits and what you would have to pay for a loan. both parties win in this situation.
MarkCT Roger I have used your negociating tecniques for working out my salary and benefits for a new job. Those techiques have helped me not only get great real estgate investment deals but also helped me get a very nice paying job (have to keep working until the cash flow starts kicking).
AJLopez_Chi Hello all.
Mike_Summey Hi Eddie & AJ
AJLopez_Chi Roger, quick question…Have you heard of Paul Wieman?
Al Lee Doug, most HELOCs are adjustable rate loans and you ought to be careful about adjustable rates now. Rates likely will go up a lot in the next couple of years
Mike_Summey Mark, keep working until the income from the real estate tells you its time to quit.
MarkCT I’m really looking forward to your new negociating book. I have saved/made a nice amount of money from imploying your techniques thus far.
Sol (Cali) Mike, do you typically start by offering lower than half what the banks are paying in order to have some negotiating room?
Roger Dawson That’s great Mark!
MarkCT That is the plan Mike. I have actually just payed off a loan and own my first property free and clear. On my way.
Doug_in_CT I guess a fixed rate HELOC is probably pretty hard to find.
Mike_Summey Sol, when asking for seller financing I usually offer a price slightly higher than asking price and offer 0% interest. That gives me lots of negotiating room, but every time they ask for a higher rate, I lower the price to compensate.
Zoe Doxa Al, isn’t true if you put a CAP on the HELOC’s this will allow you to control the rates no matter what the market index is doing?
Al Lee Roger, I (unlike Mark) have used your necotiation techniques to avoid having to have a job lol
playhard53 Guys I am a Regional
Mike_Summey Congratulations Mark
santosleigh markCT, i am working with a real estate man in buffalo and he is offering me his properties before he puts them on bid4assets so i skip the 10% auction fee, this is good right.
playhard53 account executive for a bank, stay away from adjustables and interest onlys!!
MarkCT Unfortunatly work for me is not an option at this point so if I have to still do it I might as well make a little more money.
zert Doug, you also can use them to avoid paying closing costs in most cases
Roger Dawson AJ, no I haven’t heard of Paul Weiman. Who is he?
Al Lee playhard, I disagree about the interest-only’s — I use I/O all the time, but it is always with fixed-rate loans for 30-year terms. My cash flow is boosted and I do not have the risk of an adjustable loan.
MarkCT santosleigh do you personally checkout the properties you are buying. There a lot of scams in the Buffalo real estate market and you have to be very careful.
AJLopez_Chi He’s also a negotiator, I’m going to attend one of his conferences next week in cabo.
AJLopez_Chi I just thought you might have heard of him.
ken Doug I have 2 HELOC loans that are fixed but they are 8% I get .25% off if I do the auto pay with the bank. The length of the loans are 20 years
Sol (Cali) Al, I remember you talking about a 30 year fixed with 10 year interest only. Can you expand on that?
Mike_Summey Mark, that’s true, I got an email from someone in buffalo who had read last weeks chat transcript and said they had been scammed .
playhard53 Good for you Al..You are above the game.
Al Lee Sol, there is a lot to be asid on the topic, but I will try to hit the high points.
MarkCT There are good deals in Buffalo if you know who to deal with but you have to be very careful.
Sol (Cali) Al, thanks.
Roger Dawson AJ, sounds like a fellow I did a program with once in Buffalo. Good guy. But I don’t think you’re spelling his name right.
Al Lee First, paying down principal in order to build equity is not a good investment. You get one dollar of equity for one dollar paid in. That is no a goo deal!
Mike_Summey Mark, that’s pretty much the case in most markets. Really watch the flippers. They often do very subpar work rehabbing and then expect to get top dollar for it.
Roger Dawson AJ, I meant to say Pittsburg, PA
AJLopez_Chi Yah, I don’t think so either.
Al Lee when you pay down principal, you pay using TODAY dollars. The equity you are buying is in TOMORROW dollars. Today dollars are more valuable than tomorrow dollars.
Sol (Cali) Al, what happens after 10 years? Does the payment increase in order to pay the full principle now in 20 years?
Mike_Summey Al, I think it’s a great deal, especially since someone else is paying the dollar.
playhard53 Yes Al that is called the time value of money!!
Al Lee a good investor would be able to get a good return on the cash he kept under his own control rather than paying it to the bank where it is imprisoned in equity.
Al Lee playhard, yes, I see you understant the principal. A lot of people don’t.
Al Lee principle
ken Anyone take a hit with the stock market these past weeks?
playhard53 OPM is the best money!
santosleigh markCT, i spoke with the bank manager in buffalo where i am getting the loan and the real estate man is with the same bank, the manager said that there is no problem with him, and no complaints from his other customers
AJLopez_Chi Paul Wineman - I’m pretty sure thats the correct spelling.
Doug_in_CT “imprisoned in equity” sounds like the phrase I heard……”dead equity”
Mike_Summey Did everyone enjoy Garrett Sutton last week?
Al Lee playhard, you are right on. Making money with other people’s money is they way you can become very wealthy. Using the bank’s money at 7% to make an investment that makes you 35% is a winning deal. YOu shoudl not be in a hurry to terminate a winning deal by paying back the bank. Rather, you shoudl be looking for other places to invest the cash you would have paid to the bank.
AJLopez_Chi I didn’t get a chance to sign on, Mike.
oz yes mike, thanks
Mike_Summey Al, Doug, equity is the padding that allows you make a soft landing when everyone else is crashing.
MarkCT OK Buffalo is a great cash flow market if you find the right homes. I own 4, used none of my own money, and cashflow (after expenses) over 1000 a month.
jellis Mike, I live in Wilmington, NC (actually Topsail Island), where I sense that homes are overpriced and rents are low. What do you do when the gap between what I would offer based on NOI and what the seller thinks he should be selling the property for is too great? Is that the time for good negotiating techniques? ANy other advice?
Al Lee Doug, right! equity does not give you any return except for the paltry savings of interest. You can always get a better deal for your money somewhere else. If not, you shoudl not be an investor!
Roger Dawson AJ, Yes, that’s the guy. Paul Wineman. Lives here in Sol. Cal. Good guy. Give him my best wishes. He will remember me from Pittsburg.
playhard53 I have been a regional account executive in the mortgage industry for 11yrs so I have to act like I know something every now and then to keep my job..but I am here to get rid of it and I need everyones help!!
AJLopez_Chi I will indeed Roger.
Mike_Summey jellis, when parices are too high in relation to NOI negotiate seller financing with low or not interest. Works the same way.
Zoe Doxa Hey Roger, I spoke to a RE Broker the other day and found him to be someone who speaks with “two tongues”, in our negotiation gambits. The Broker doesn’t know that through my investigations of this particular property, his #’s are not consistant with what I uncovered. Should I continue with this deal, …only because I think it’s a good deal because of the cash flow I will receive monthly, or should I chalk this one up as experience?
Roger Dawson Jellis, we don’t recommend investing in luxury areas. Invest in the blue collar neighborhoods where the workers live.
Sol (Cali) Mike, can you talk about working with realtors again? I don’t remember what the advice was and whether or not it would be to our advantage to use a “buyer’s” agent.
Roger Dawson Zoe, I wouldn’t give up on it but be cautious. Tell the broker what you’ve found out and tell him you can’t build a relationship unless he levels with you.
Mike_Summey Al & Doug, I’ve never had a problem getting equity back out of a property if I needed it for another deal so I prefer to leave it in and save interest until I need it. A different philosophy from Al’s, but both seem to work.
playhard53 So where is the break even point at?? I don’t want to own 5 properties for 5yrs before seeing any cash flow?? What if the taxes go up during that time?? Now I am in a negative cash flow?? Especially if the markets tanks where my houses are.
playhard53 Mind you I do not have the offer generator yet
Mike_Summey Sol, if you are going to work with a Realtor, by all means use a buyers agent. He represents you and if a transaction closes, he usually is paid by the seller in the form of a split commission.
Al Lee MIke, yes, I often tell people that your strategy is different form mine and that given your success, I can not say it is wrong, just different from mine. There is more than one way to skin a cat (if you are interrested in skinning cats),
Al Lee I just have a terrific appreciation for the leverage that can be had in real estate investing and like to use it whenever I can
MarkCT playhard53 the OG is a must (mind you as the author I am biased).
Roger Dawson Playhard. If you are realistic about the numbers and build a reserve for repairs, you should be okay as long as the property cash flows up front. One key to Mike’s success is that he runs the numbers and doesn’t let emotion get in the way.
Sol (Cali) Mike, I noticed you said “if” you are going to work with an agent. Are there times as a beginner where I wouldn’t need to work with an agent?
playhard53 Thats OK Mark!!
Mike_Summey Hi rmjtsf
santosleigh al, i have listened to all your radio shows on the web and learned a lot from those great information talks, please put more of them on.
Sol (Cali) MarkTC, thanks for great software!
Zoe Doxa Thanks Roger, I find this person to be in the category of a very flexible seller due to his partner who has the other 50% interest in this deal skipped out of town and the Broker does not want anything to do with this particular property, and in sharing this I feel he’s being pressured to sell because of the unforseen dillema between him and his partner.
ken Playhard, I tried making my own OG on excel. It works to a point but the really OG That mark has is awsome. I wish I would have just purchased it instead of spending hours trying to make my own. that doesn’t work well.
rmjtsf hello just thought i would listen in for a bit
MarkCT I have used to buy each of my properties (15 so far) and each one cash flows.
playhard53 Got it Roger!! So what is a good rule of thumb for the cash flow starting out?? Mike told me breaking even and he was happy?
Mike_Summey Sol, that all depends. If you’re dealing with an FSBO you may not want to use a buyers agent as that may scare off the seller.
Roger Dawson Thanks Ken!
Sol (Cali) Mark, how did you create a calculation to find for the interest rate?
MarkCT The OG took over a year to write and its all Mike’s vision.
Al Lee santosleigh, thatn you. I did a great show this Sunday with a guy who knows more about taxes, expecially involving real estate investing, than anyone else I have ever known. I hope to have the recording on the website soon, but there was a technical glitch that may have lost the recording. I will be very disappointed if it is lost as it was a terrific interview.
playhard53 Thanks Mark I will buy it!!
ken sol cal you can google that
Mike_Summey rmjtsf, no need to just listen. Jump in any time.
ken Mark that program is awsome. I wish I wasn’t so cheap when I started in REI
Roger Dawson Playhard. Break even is okay to start as long as you’ve been realistic about the numbers. Be careful that you want to buy so much that you over estimate the rent it will generate for example.
ken It took 6 months to finally buy it
MarkCT Thanks I appreciate it.
Sol (Cali) Ken, I’ve googled it and came up with the solution being to “guess” closely and then try again. Even Newton’s method is akin to this.
playhard53 Roger the offer generator should keep that from happening right?? Call me Jeff
ken are you looking for the formula for a morgage calculater?
Mike_Summey Playhard, if you just break even in the beginning, each year that passes the mortgage pays down and the rents go up and the spread gets wideer and wider. It gets real wide when the mortgage pays off.
Al Lee One of the conclusions you will come to if you really understand the tax beenfits of real estate investments is that even if they don’t make cash flow and don’t make appreciation, you still come out ahead! The fact is, you can not afford to NOT own rent houses.
MarkCT Sol that is the algorithm the program uses. I gets within .0001% accuracy.
Zoe Doxa Roger, The Broker is also asking for the full payment of the listed price. I asked him if he would consider a (seller financing) deal and he informed me that the loan was under HUD and they don’t allow (seller financing). Is this true?
Sol (Cali) Mark, you’re using Newton’s algorithm?
playhard53 I bet it does Mike!! Thats the goal right!!
MarkCT The guess closely and try again method.
Mike_Summey Al, my newspaper column this week is titled “You’ll Appreciate Real Estate Most At Tax Time.”
Al Lee Mike, “Amen!”
Sol (Cali) Mark, can you point me to a link that explains it? he geeky side of me would love to see how it works:p
Roger Dawson Zoe, that may be true but you could refinance and pay off the HUD loan. Did the sellers buy it from HUD?
Mike_Summey Sol, it’s more important to know what time it is than to know how to build a clock! 
Sol (Cali)
Zoe Doxa The Broker has informed me only that the loan is with HUD!
Al Lee Mike, I have proven to people that with only the slightest planning, you can make an unlimited income tax-free. Not only that, you will NEVER have to pay the tax and it will be 100% legal and in accord with the tax codes.
MarkCT Are you a programmer Sol?
playhard53 But we always hear that rentals are bad and flipping is good?? Why deal with 20 or 30 families?? Flip the properties and get the return on the investments, then put it in commerical real estate like strip malls etc??
Mike_Summey Zoe, why don’t you assume the HUD loan and work out any difference with the seller.
santosleigh to everybody, when you get a chance click on to www.simplemansguidetorealestate it’s about the john beck real estate scam.
Sol (Cali) I’ve just started learning C#, but I’ve been working with Fielmaker Pro for a long time and it has a proprietary scripting language.
Al Lee playhard, you have just described a formulat that can make you broke fast. I have seen it happen.
Doug_in_CT Has anyone ever heard of “Blue Moon Capital?”
Roger Dawson Flipping sounds good at seminars but it is full of danger.
playhard53 Explain Al please:D
Mike_Summey Jeff, flipping is a job, not an investment. It’s speculating and many people are now in trouble because they bought expecting to flip quickly but the market cooled and now thay can’t get what they paid for the properties.
Al Lee Flipping loses ALL of the tax benefits of real estate.
Al Lee Flipping involves huge risks
Sol (Cali) Roger, are you staying cool. I’m down the street from you in Whittier, and it’s hot!
Zoe Doxa Mike, he has the loan listed in the MLS here as a potential assumable loan if qualified with the lender. But my credit is challenged at this particular time in my new career as an RE Investor. Any suggestions to this?
Al Lee Commercial property is about ten times more volatile than residential property
zert I don;t know how the tv shows completely refo a house for $20-30,000. We are looking a hardwood floors and painting our house and it is $$$
Roger Dawson Blue Moon is an investment company out of Denver. I don’t know anything about them
Mike_Summey Zoe, try the assumption route to see if you can qualify before giving up on the ides.
playhard53 But you get higher rents and long term leases? And still get the tax benefits?
Al Lee IF you do not have deep pockets, you ought to stick with single-family houses. then later you might go to apartment buildings. Then when you have a few million in reserves, go to commercial properties.
Roger Dawson Sol, Fullerton was the hottest town in America yesterday at 97 degrees.
Zoe Doxa OK Mike, I will definitely do that.
Mike_Summey Al, very good advice. That’s exactly the approach we recommend in our books.
Al Lee OR, you could just continue to dance with the one that brung you and stay with small residential properties
zert Pink elephants againg Al - is it wine time?
Doug_in_CT They purchase properties in depressed areas, rehab and then find investors to purchase, suppossedly they sell them with a good amount of equity in them so that you can get fianancing — from them — and purchase for $5,000 something with $20,000 in equity.
Scott Stephens Does anyone have any feedback on Scott Scheels commercial REI program?
playhard53 One of my investor friends got a loan for a stip mall that is back with at least 20 companies and now he rents to the bank that gave him the loan. They moved onto his property!! How would you like to rent a space to the bank??
Al Lee It is Cabernet tonight! Yes.
Zoe Doxa Mike, Roger, I see Al’s typing has improved very well. I think he deserves a degree from the $$WM$$ school of typing
Roger Dawson Al’s spelling has been very good tonight. I think he’s taken lessons.
zert very good!!
Al Lee I did not know that the word d a n c e would become dance on the display, though
playhard53 I like the elephant!
Mike_Summey Jeff, are you familiar with Carolina Investors from upper SC.?
Roger Dawson It’s hard to get an elephant to stop dancing, once it starts.
playhard53 No Mike? Who is that?
Al Lee Roger, California wines help my spelling. It is when I try those foreign concoctions that I do so poorly
Doug_in_CT Sounds like a good bumper sticker Roger
Mike_Summey Jeff, it was a bank, of sorts. Had been in business for over 40 years. I leased them an office in Anderson, SC and within a year the filed bankruptcy.
Roger Dawson Yes, but California wines make you say things like Dude, Hip and Surfs Up
playhard53 Figures..
Mike_Summey Al, good ole mountain moonshine will reall mess up your typing.
playhard53 What did you do with the space??
Al Lee I just got back from Disneyworld where I talked with a cartoon turtle named Crush (from Finding Nemo, who used the word Dude for nearly everything
Mike_Summey I now have it leased to a juwelry store. Good tenant.
Sol (Cali) Roger, hey dude, once I’ve got the numbers working (using the offer generator), the offer is already ridiculously low. How much further do you think I can go down in order to provide some negotiating room?
Doug_in_CT I think it is a sign that the “boil” has come off the market when a property that sold twice in my neighborhood in the last 3 years for $220,000 or more is now being offerred as a bank owned property at $191,000.
Al Lee NC is known for its fine moonshine - White Lightnin”, isn’t it?
Mike_Summey Anyone interested in setting up an LLC or Corporation? If so I will have the contact information for Garrett sutton’s firm on the website shortly along with a code you can use to get a $50 discount.
playhard53 Thats great. How long did it take you to move from residental to doing some commerical? What was the reason that you have some commercial properties now??
Mike_Summey Doug, that’s happening all over the country in increasing numbers.
Roger Dawson Sol, if possible, bracket so that your breakeven point is mid way between what they’re asking and what you’re offering. That may not be practical but it’s a good goal.
Doug_in_CT I put an offer into the bank for $165,000 and we will see how motivated they are.
playhard53 Roger I have troube sometimes with your other side of half?? How does that work??
Mike_Summey Jeff, I didn’t move into commercial until the residential investments were kicking off more cash than I could find properties in which to reinvest.
Zoe Doxa Sounds good Mike. I looked at last weeks transcripts and was totally blown away. Learned a whole lot and am waiting patiently for the info.
playhard53 Doug how did you come across the property??
Sol (Cali) Wow, I guess I better get ready to offend some sellers with these offers. On the average, the listed prices are around $300,000 (in Fresno where I’ll be moving to this summer) and my offers will be around $190,000 or $300,000 with 0% financing…
playhard53 Got it Mike
Doug_in_CT Playhard53 — it is one that came from our REO realtor who seems to let us know about listing prior to them going into the MLS.
santosleigh mike, started reading your third book, each one is better than the last.
Mike_Summey Zoe, we have made an agreement with Garrett for him to set up LLC or corporations for a fee of $695, but you will get $50 off this price with the code. We,re just trying to work out the logistics as to how our people will contact his firm. It’s not something that can be done through the shopping cart.
playhard53 Mike how many properties would you say you had before you looked at commercial properties??
Mike_Summey Thanks Leigh!
Mike_Summey Leigh, which of the first two did you like best?
Zoe Doxa OK, I just had a couple of ?’s to ask Garrett concerning my present situation.
santosleigh mike, the mindset
Roger Dawson Be clear what you mean by commercial. It’s shopping centers, factories and office building. A 360 unit apartment compliex is investment property, not commercial
Mike_Summey Jeff, I probably had 60 residential before I got the first commercial.
playhard53 Got it Mike. So I have some work to do right??
playhard53 Got it Roger.
Mike_Summey Jeff, you have to make decisions based on your own comfort level, not mine. I’m too conservative for most people.
Roger Dawson Got to run folks. See you next week.
oz G/night all,
Mike_Summey Goodnight Roger
Al Lee Goodnight, Roger
playhard53 Thanks Roger!!
Doug_in_CT Goodnight roger, thanks for your imput
Zoe Doxa Mike, Roger, I have been reading the books and learning the OG and have already started to make offers. The lisc. is the only hurdle now
Mike_Summey I’m going to have to call it a night also. I have a lot to do tomorrow and several thing to do tonight to get ready.
Mike_Summey Goodnight all.
Zoe Doxa Goodnight Mike, and all
Doug_in_CT Goodnight Mike, thanks for all you help.
Mike_Summey See you next week.
Sol (Cali) Goodnight
Mike_Summey Good chat tonight.
playhard53 Thanks Mike
Al Lee Ich auch! I need to run. Please don’t forget to look at www.buyRentHouse.net.
Al Lee Goodnight all
tirekicker goodevening
zert Doug_in_CT are you still there
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