Chat Transcript - April 2, 2007
Posted on April 3, 2007
santosleigh hello roger
Roger Dawson Hello santosleigh!
Roger Dawson Hi Mike:
Mike Summey Hello
Mike Summey I almost let the time slip up on me tonight.
santosleigh hello mike , did you get my email today
Roger Dawson Could it be that there is a basketball game tonight?
Mike Summey Hi Leigh, I got your articles and email. Thanks!
Roger Dawson Hi
Roger Dawson Doug and Stacy
Mike Summey Hi Doug & Stacey
Doug_in_CT Hi Roger and Mike
Mike Summey Hi Billy
Roger Dawson Hi Billy
stacey hi everyone, I’m a newbie
Mike Summey Roger, I had a good interview on Frankie Boyer’s show today.
Mike Summey orey & kawhitlock
kawhitlock hey mike
billy hello I am here because of Corey Kindhart
Roger Dawson Is this the Billy that’s the new chairman at Augusta golf?
Corey Mike I brought a friend Billy
kawhitlock sorry we missed everyone last week–forgot all about it.
Mike Summey Glad to have you Billy. Thanks corey
Roger Dawson Frankie Boyer is from Boston isn’t she?
Corey Roger I can assure it is not that billy
kawhitlock I have a question for everyone present.
Mike Summey kawhitlock, that’s why I sent the reminders on Monday
Mike Summey Roger , yes.
kawhitlock heard about Section 8’s ?? What are your thoughts–yes, got the reminder, still forgot.
Mike Summey Hi lar & Penny
Penny Hi Mike. Hi Roger & everyone.
lar hi everyone
Mike Summey kawhitlock, some people swear by Section 8. Personally my experience has not been that good.
Roger Dawson Section 8 tenants are financially strapped so they are not the best housekeepers but you do get the money from the government so they pay
Doug_in_CT I spent the weekend in New Haven, CT with Than Merrill and his partner Paul Asagien — at their inguaral boot camp. One of the highlights was have dinner together at Hot Tomatoes and then walking over to a bar watch the premier of their appearance on “Flip This House.”
Al Lee Hey, Mike, Roger, everyone
Corey Mike Billy is one of my partners and he is looking at a commercial property that he has picked out for a retail location. So I told him to come here with any quetions before he purchases the property.
Mike Summey Hi Al
santosleigh hello al
kawhitlock Yes, that was what our accountant said. It’s not there money, so they, and their friends abuse the property.
Roger Dawson That sounds interesting Doug. Were you impressed with their seminar?
Mike Summey I may be a bit slow on the response for a few minutes. I’m finishing my dinner. As I said earlier, I almost let the time slip up on me.
Mike Summey i KenJ
Roger Dawson Hi Al
Al Lee Hi, ROger.
KenJ.onAI Hi Mike, Roger, Al, Santo, Penny . . . Everyone
Al Lee YOu seem Jolly, Roger. lol
Doug_in_CT Yes, Roger. They are two California transplants (Fresno) who after Than attended Yale and was a star football player, found gold in the rehab business in CT.
Roger Dawson Mike, you having hush puppies and popcorn shrimp?
Mike Summey kawhitlock, I’m currently having to do about $5,000 in repairs to a house that has had a section 8 tenant for the past2 years.
Al Lee Shucks, ROger. That sounds mighty good!
Roger Dawson Oh, yes jolly roger I got it!
kawhitlock MIke Could you argue that after 2yrs. of rent, it’s worth the 5k?
Mike Summey Hi wylderich
wylderich hi th
kawhitlock Mark’s here w/ me, figuring $200/mo. in repair cost, probably not too worth it!?
Mike Summey kawhitlock, I could have gotten 2 years of the same rent without the damage. That’s excessive.
Roger Dawson As a conservative I had a problem with the government sending me money for their rent, but I got over it.
santosleigh mike, can you claim the $5000 on taxes
Al Lee Roger, I have made peace with the governmetn checks, too
Doug_in_CT Than was drafted into the NFL but then was injured in his second year. He took his football winnings and started a Burrito resturant in New Haven, but his main reason for doing so was because he liked Burritos. Needless to say, his first business went bust. He found himself working 80 hours a week, for the pleasure of losing a lot of money.
wylderich Roger, was that Section 8?
Mike Summey Everyone, some Section 8 tenants are okay, but my experience is that unless I can get an extra $100 per month or more the damage offsets the benefits of having the government guarantee payment.
Al Lee santo, certainly
Roger Dawson Yes, section 8
Mike Summey leigh, yes the $5000 can be deducted.
Mike Summey ihatecats & eyk
ihatecats78 evening everyone
kawhitlock MIke, I would be looking at about $50 extra per month.
eryk76 Hello Mike and everyone.
Al Lee ihatecats, you are in the military, aren’t you?
wylderich Mike, if you tell those Section 8 tenants upfront that if they do damage to your property, you’ll inform the gov’t and they won’t be eligible for Section 8, they will behave themselves.
ihatecats78 yes i am al
KenJ.onAI I found a home that has had lead based paint indentified. Does anyone know if I necessarily have to remove it prior to rental?
billy Mike met with the appriaser today and the first question was how much does the seller want for the property, why should it matter to him
Mike Summey Hi gemini
Al Lee I started a group through my church in which I lead a group of people to DFW Airport to greet homecoming troops. Most on coming in for R&R and transferring to flights goig all over the US. DFW Aorp[ort is their port of entry
gemini5designs Hello all
Mike Summey KenJ, you certainly don’t want to rent it to anyone with small children.
wylderich Ken, you could put yourself in a bad spot if you rent to tenants with children and they get lead poisoning. At least, I think so.
ihatecats78 you have no idea how much that is appreciated al. Thanks for being patriotic and taking care of the troops.
Roger Dawson Be sure you tell the appraiser whether you want a high appraisal or a low one. A high one because you’ve bought the property and need the financing or a low one because you want to negotiate the price down some more.
Al Lee Wow! I need another glass of wine. My typing is terrible tonight.
KenJ.onAI That’s probably good advice Miek and Wylderich. I’m just looking for a way to avoid the $8K to remove it.
KenJ.onAI Mike
Mike Summey Personally I shy away from homes build prior to the mid 1970s because of the liability associated with lead paint and asbestos.
gemini5designs Mike, it is really great to finally be able to get to chat with you and everyone
Al Lee I was in the USAF 1965-69, I have a real good idea ! NOBODY appreciated us.
wylderich Ken, could you contain it instead of removing it? I believe there are ways to do this.
Mike Summey I’m on a different computer tonight so I’m having to adjust a bit.
KenJ.onAI Wylderich, I’m not familiar but can do some research to find out.
Mike Summey c & Pscherer
santosleigh mike, $5000 seems like alot of damage, was there holes in the walls or was it just a major clean up
Pscherer Hi Mike
stacey mke, I’m struggling trying to see how your investment idea can work for me. However, it looks hopeless in my area (san jose,CA). My NOI is about $700 while avg. house price is in the high 500s
Mike Summey See I missed most of Mac’s name
Mike Summey Hi Mac
Mac Hi Mike
Doug_in_CT I found one good “low appraiser” and another good “high appraiser” — it is good to know at least one of each.
Mike Summey leigh, there were holes in walls, broken appliances, ruined carpet and the entire inside had to be repainted. It had fresh paint & carpet when they moved in.
ihatecats78 i can imagine al. but it seems that people appreciate those who served in that time period more and more these days…. I’m worried that we’re highjacking this chatroom.
Al Lee cats, don;t worry, but I guess we’ve said all on this topic that needs saying.
Mike Summey stacey, you may have to look further out. SanJose is a tough area.
ihatecats78 I’m still in the learning phase and I wonder how those here feel about birddogging as a way to get started.
wylderich Is anyone doing — or interested in doing — real estate rehabs in Nevada? My fiance and I were doing them in Florida; the cost of even a shack out here is rather high, but the returns are still pretty good.
Corey mike did you see Billys question about the appraiser
Mike Summey The big question tonight is will it be Ohio State or Florida?
KenJ.onAI Cats - birddogging? Do you mean using wholesalers?
Al Lee birddogging doesn’t get you started–it gets someone else properties.
gemini5designs SEC, BABY!
Doug_in_CT Stacey, I met a couple at an Arizona real estate event who were from your area, they had the same complaint as you. So I offered to let them invest with me in CT. And we had a very successful partnership. We bought a small apartment together as 50/50 partners. They made a 60% return on their investment in 16 months when I was able to buy them out.
wylderich Hey, I’m from Ohio but lived in Florida; but I’ll place my bet on Ohio!
stacey I did look further out in the bay area and still can’t get anything promising. how can I do all driving around if it’s too far out?
Mac Roger, I have a negotiating question. I’m trying to work out a disagreement between me and a contractor I had to fire. He wants to figure what I owe him based on the hours he put in. But he and I have a fixed price contract and I’m negotiating down from the contract price based on what wasn’t finished. He’s angry and I don’t want to face his putting a mechanic’s lien on the house. Any suggestions to get us on the same page?
Al Lee I have several birddogs who find properties that I buy. I pay them a nice fee, but I get the rent forevermore.
Mike Summey Corey, no I missed it.
stacey mike, any recommendation on how to search in areas 2-3 hrs away or out of state?
ihatecats78 I was really more interested in learning the process from the inside. Once I think I’m ready, I’d even consider doing it for free as long as the investor held my hand through the process.
Pscherer stacey use mypropertywealth.com
Mike Summey Hi jcblythe
jcblythe hello
ihatecats78 not forever of course
Doug_in_CT Stacey, what about traveling to someplace like Utah that is experiencing a bit of an employement boom and real estate boomlet.
Corey Mike he had an appraisel done and the appraiser wanted to know what the sellers were asking for it. Billy didn’t want to tell Him but he said he has to have it.
Mike Summey Thanks pscherer
santosleigh mike, do you contact the section 8 people about those tenants, and what do they do ,if anything. how do other landlords avoid your bad tenants
Al Lee cats, a rule I learned in the consulting business is: anythign worth doing is wroth doing for money. Right, Roger?
gemini5designs What is a good birddog fee? better yet, who much would a person usually pay?
Roger Dawson Mike, can you answer Mac question about contractors. I haven’t had that problem.
Al Lee don’t do it for free.
ihatecats78 noted. thanks
Mike Summey Billy, don’t tell him. If he’s legit, he supposed to tell you what it’s worth. What the seller is asking doesn’t enter into the equation.
wylderich Regarding birddogging; I used to pay a referral fee of $500 for any lead that resulted in a property purchase or sale. My people were happy with that.
Al Lee for serious investors with a little cash who want to invest out of state, go to buyRentHouse.net. We have guaranteed returns
billy Mike that was the first question and said he had to know
KenJ.onAI Mike,
Mike Summey Mac, if you have a fixed contract, get the work finished and deduct what you have to pay from the contract price and pay himthe difference.
ihatecats78 while we’re on the subject of wholesales, how do you feel about hard money loans??
kawhitlock All, regarding Sec. 8’s, we were looking into purchasing a book called “The Section 8 Bible” by Nick Cipriano. Anyone heard of it? Read It? Thoughts?
KenJ.onAI answer your question FLORIDA
Doug_in_CT Santosleigh — I heard this idea to avoid bad tenants. Make sure you charge a nominal fee for the credit check (say $15-$20). Bad tenants will know that they will probably not pass this filter so, being the good steawards of money that they are– will forgo losing the $20 for what is likely to be a failing proposition.
Mac Thanks, Mike. That looks reasonable.
Mike Summey billy, what reason did he give for wanting to know?
Al Lee kaw… I don’t know the book or author, but if the book was published more than a couple of years ago, don;t waste yoru time. A lot has been changed. I have done really well with Section 8 and have fewer problems wth those tenants thatn with the non-Section 8 tenants.
billy said it was one of the things he had to know
gemini5designs Mike, plan on going on WLOS, news 13 anytime soon? I love to read your articles in the citizen times.
billy they are the only appraisers in the area
Mike Summey gemini, no plans right now.
Mike Summey billy, why do you need te appraisal?
ihatecats78 sorry for the repost if someone was already answering this: How do you feel about hard money loans to purchase foreclosure properties?
billy Mike trying to buy property and not for sure how much I will have to finance
KenJ.onAI Cats - What other options do you have for financing?
kawhitlock Al Lee, you might of joined up later. Some of the others said they had problems w/ Sec. 8 tenants disrespecting your property bec. it’s not their $$. Ever had this as an issue for you?
wylderich To answer your question, ihatecats, it all depends upon how long you’ll hold onto the property and what your return will be. Hard money is okay if it’s for a short term and you get a good return.
Roger Dawson Hard money is okay if the numbers pencil out but a loan secured by the property will get you a better rate.
Mike Summey cats, I’ve never used hard money lenders, so I’m not a good one to ask. Anyone else had any experience with them?
eryk76 hi everyone, I am just getting started and was wondering about appearence. What kind of attire is acceptable for meeting with sellers. I don’t want to turn people off or give the wrong impression by over or under dressing. Is this somthing I should concern myself with?
KenJ.onAI Eryk I asked the same questions a couple of months ago
Al Lee hard money loans are expensive and foreclosed properties are risky. You had better be certain that you are getting a really good deal on the proeprty before you use a hard money lender to finance it. The terms are often oppressive with those lenders, too. You coudl end up having to turn the good deal over to the lender if you are not able to flip the property in the expected time frame. Flipping is getting very hard toaday with all the easy money for bad-credit buyers dried up
Doug_in_CT eryk76 You are supposed to match your customer in any sales situation.
Doug_in_CT So if you expect them to be dressed down, head that way yourself, and visa versa.
Mike Summey eryk, dress the way you normally would. Don’t try to be something you aren’t.
ihatecats78 well, I can always use a VA loan for my own home. I might be able to convince a well to do family member to invest if i can convince him I have a good deal. Banks are gonna be a problem until I can come up with more cash or add about 80 points to my credit score.
KenJ.onAI Eryk - Is your money green? That’s what matters.
stacey mike, do you always finance for the property purchase first and then get 2nd loan for renovation after closing escrow?
Al Lee cats, work on getting more cash and upping that FICO score!
Al Lee Your credit is your most important asset in RE investing.
Roger Dawson Ihatecats: did you look into getting a second VA loan if you get transferred?
gemini5designs Mike, I’m new to this, and I always heard,”no credit, bad credit”, anyone can invest in RE, is this really true?
Mike Summey stacey, I usually buy the property and then use some of my reserves to d othe fixups if needed. I seldom use 2nd loans unless they are from the seller
ihatecats78 not yet roger. I know we talked about that last week, but I’m so far from actually doing this that I haven’t even thought about it.
Roger Dawson Hi zert
eryk76 I agree. I am not big on getting a gussied up.
Mike Summey sscercone & zert
zert Good Evening
Al Lee B-Paper (sub-prime) lenders are dropping liek flies and loans to people who don;t have good credit are much, much harder to come by these days.
KenJ.onAI Mike,
Al Lee Hey, 1099. P-k4
Mike Summey Hi 1099
ihatecats78 my sentiments exactly al
stacey mike, if the property is in really bad shape, u think the bank will approve my loan? or will they make me fix it first somehow?
KenJ.onAI Mike are you getting a return on your money for the fix up in reference to stacey’s question
w1099 hello everyone am BACK
Al Lee 1099, did you get moved?
w1099 Hey Al Iam now in Charlotte NC
Mike Summey KenJ, absolutely. I factor that into the purchase price. the Offer Generator software prompts you to figure a return on both fixup costs and closing costs.
Mike Summey i jyadush
Roger Dawson Hi jyadush
Al Lee You need to learn to say “Nawhth Cahyolinah”
ihatecats78 for those who know about credit. I’m about to go to officer candidate school and USAA, a company that works alot with the military is offering a 25k commissioning loan at 2%. is it a good idea to take this from a credit standpoint. I’d love to have that kind of cash to put into a deal.
jyadush hi, it’s good to be here.
kawhitlock Mike, how do you bypass the realtor & get directly to the seller to find out what they want? Do you ever just knock directly on their door. Of course, you (I) intend to use the realtor for the closing so they can get their fee; but you sometimes you just need to be able to go around them so you can get to know the seller better and their needs.
Mike Summey Good market 1099, you’ll do well htere.
w1099 Told some time for my belonging in Nawhth Cahyolinah AL
Al Lee cats, that is a terrific rate, I woudl take the loan and find soemthing to do with the money–something that makes money.
Roger Dawson ihatecats, sounds good to me unless it’s for a short term.
w1099 Thanks Mike thats my plan
KenJ.onAI Miek what do you use as your rate? For example, I’ve got the money sitting in a 5% savings, so I use 5%. Does that sound right?
eryk76 In the past weeks we have talked about the increase of renters due to forclosures. Would you keep raising rents by small amounts or would you read the demand and adjust your increases based on this?
ihatecats78 nah, it’s for 4 years, about the same as a car note
Mike Summey cats, my son just completed OCS & was offerred the same thing. I told him to only take it if he can put the money to work and make money with it, not just because it’s a cheap loan.
Al Lee Do Not borrow the money unless you have a way to make money using it. Easy credit is a trap!
ihatecats78 i wouldn’t dream of spending it on anything but an investment
Doug_in_CT I have been thinking a lot about using low cost money to pay down higher cost money.
ihatecats78 maybe as rehab money for a project
Al Lee Mike typed the same thing i did at the same time :}
Mike Summey KenJ, I would factor in a higher rate than what I’m getting in an insured bank account.
KenJ.onAI Mike,
KenJ.onAI for the risk, I get it
Mike Summey KenJ, use a rate you feel comfortable with. There is no magic number.
w1099 I missed u guys but I would be back soon have to put things in order my wife and I. I will talk to your next week take care Al , Roger and Mike and everyone else.
Roger Dawson Bye w1099
KenJ.onAI Thanks Mike and everyone. Enjoyed the chat. Have a good night.
Mike Summey Goodnight 1099. Glad you are back
Doug_in_CT Lets say you have a note on an investment house at 9.5% (and I do) and lets say a credit card company offerred you 1.9% for 18 months…..Shouldn’t you pay down the higher rate note for 18 months and then refinance it back out?
Al Lee Goodnight, 1099
Mark2007 Cats, what is the payment on the loan…regular amortization over 4 years?
stacey mike, I really don’t know how to get my 1st investment property out of the area. Any advise?
Al Lee Kids, my mom is calling and I have to go in the house now. Wish I coudl play longer, but I gotta go.
ihatecats78 finding out…
Roger Dawson Thanks Al
Mike Summey Stacey, you may want to look at the deals Al offers and see if you are comfortable with them.
Al Lee See you in a couple of weeks. Happy Easter
ihatecats78 little over 500 for a 48 month term. I think it may be 60 months because i was told 438 by somebody.
Mike Summey We will not have a chat next week since it is Easter weekend and many people will be on vacation orspring break. Next chat will be in 2 weeks.
stacey mike, do you usually have inspection done by inspector b4 making offer? If not, how do you back out if later you find things like mold or cracked foundation?
Mike Summey stacey, I do a thorough inspection befor making an offer. My inspection form is available as a FREE download on the website. Just clickon downloads and go to forms.
Mac Doug, the problem you will have is the cost of refinancing your house note to pay back the credit card. Plus, if the going rate is now higher than your original, you are now stuck with higher payments for a long time adding significantly to your overall costs. You need to calculate out your savings and make sure the risk is worth it.
Mike Summey Doug, I don’t like using credit cards in any way with my real estate purchases. There are simply too many things that can go wrong that you can’t control.
Doug_in_CT Mac I have heard a couple of “gurus” talk about using HELOCs to dramatically reduce the time of your note. The idea is to get a little “reverse compounding” working in your direction.
stacey mike, your prog. suggest to use equity of existing properties to purchase next one. Doesn’t equity have really high rate and make it more difficult to find deal that can cover the cost?
Mike Summey stacey, if you already own a property and it is performing well, you can usually get a better rate to borrow the equity from it than you can to make a new purchase.
ihatecats78 along the same line as stacy’s question: What is a competitive rate for an equity loan?
Mac Doug, I’ve heard that too. It’s high risk. If everything doesn’t work just so, you lose. Of course they’ll sell you some software to “track” the problem and make sure it goes ok.
Mike Summey cats, you can usually get equity loans at prime if you have decent credit.
Mark2007 Cats and Doug, my opinion is that you should substitute cheaper money when you can. The trick is that your minimum payments on a credit card and some loans may be more per month than the existing “higher cost” loan. If you do this, you have to be able to make the payments and NOT use the money you get for frivolous things. I’ve used this process where I’ve taken a cash advance on a credit card at 0%, then stuck it right into an interest bearing saving account where I am making 5.05%. At the end of the term, I pay back the credit card and have made money on other people’s money. Not a bunch, but it adds up.
Doug_in_CT Mac, now that you say that, that makes a lot of sense.
Mike Summey Mark, how have you done after deducting the transfer fee?
stacey mike, if I call an inspector to inspect a property b4 I put in an offer, should I worry that an inspector will turn around and snatch my diamond in the rough?
Mark2007 I calculate that into the equation. Sometimes there is no fee. I’ve got REALLY good credit.
ihatecats78 define decent: I’m at about 670. My wife’s credit is not so great though :{
Doug_in_CT The transfer fee I have seen lately is very minimal. $75 maximum.
Mike Summey stacey, make your offer subject to an acceptable inspection.
stacey mike, what are the common need-to-have contingencies to put on an offer?
Mike Summey cats, banks consider decent to be 700 - 800
ihatecats78 ouch, I’ll be there in about a year
gemini5designs Mike, so someone with”not-so-good” credit should just forget about investing, or do they have a chance?
Roger Dawson Ihatecats: you don’t need a credit rating for a VA loan
Mike Summey stacey, the fewer contingencies you can put in a contract the better chance of it being accepted. If you aren’t comfortable doing your own inspections or if you’re buying out of area, I’d definitely make the offer contingent on an acceptable inspection.
ihatecats78 roger, the loan is guaranteed, but the rate still depends on credit
Mike Summey gemini, absolutely do not forget about investing. If your credit is not-so-good you may have to look at more unconventional offers. I have excellent credit, yet I still ask for and often get seller or third party financing.
eryk76 I would like to start investing but I am hung up on the fact that I will feel more comfortable having some cash reserves to carry the costs while waiting for a tennant.
ihatecats78 I won’t be ready to buy for a while anyway so it’s not that big of a deal
Mike Summey eryk, that’s smart thinking. Never use up all your cash reserves just to make a purchase.
eryk76 I don’t want to become a motivated seller my self..
gemini5designs Thanks, Mike, that makes me feel better. My credit is a little shaddy, but my wife has good credit.
Mark2007 Gemini, I second that. Credit scores change. Best part is YOU control your score. Just start working on improving yours while you are looking for alternative ways to get involved.
stacey mike, if I don’t have time to manage the renovation or b/c it’s out of the area, and some professionals can do it at 20% of total renovation cost, should I consider it?
Mike Summey One thing about seller financing…even though you sign the loan, your other assets are not at risk because with seller financing, foreclosing on the property is the only recourse they have.
gemini5designs Thanks, Mark
Doug_in_CT Gemni, Your wife can be the person getting the loan.
Roger Dawson Managing contractors from a distance is very difficult.
gemini5designs Yeah, we thought of that, but I make more money then her,and they need to combine the income
ihatecats78 I’m going to take about 30 days of leave when I get to my next duty station to find a really great deal. If I can find something at 75-80% ARV, and get it via a VA loan, I could use that commissioning loan to fix it up and get a healthy profit on a home I might be living in for a little while. any thoughts?
Mike Summey stacey, I’d be careful about buying properties that need a lot of renovation if I couldn’t be around to see how the work is being done. Contractors have a thousand ways to cover up shoddy workmanship and make you think it it great.
Roger Dawson That sounds like a sensible plan cats.
Mike Summey cats, that sounds like a good idea.
sscercone Roger, I just finished reading Section 4 on Negotiating in the book, if I think something is a good deal, I usually take it, I don’t usually try to negotiate down more, How bad will this affect me when trying to make a deal work? How often will I have to negotiate hard?
ihatecats78 Depending on what the rules of the VA loan are I may even decide to hold onto the property and rent it out. There are always people to rent around military bases
Roger Dawson Sscercone, don’t forget that you want the other side to feel that they won. Make a low offer anyway and then reluctantly concede some of it back.
Doug_in_CT cats — even better idea.
Mike Summey sscerocone, I alway try to negotiate. Even if the deal is great I don’t want the seller feeling like thy could have gotten more because I jumped at the first offer.
ihatecats78 thanks doug
Roger Dawson I need to run. I’ll see you in two weeks.
Mike Summey Folks, I’m going to watch the basketball championship. Goodnight to everyone and I’ll see you here in 2 weeks.
Doug_in_CT My son, who is a cadet at West Point, says he has spoken to officers who have rentals in all the bases where they were once stationed.
kawhitlock Goodnight all.
gemini5designs good night,all. Happy Easter!
zert hey Doug what has been going on
Doug_in_CT Hey zert.
zert how are the properties
Doug_in_CT I was at an interesting boot camp in New Haven over the weekend.
ihatecats78 my commander is already doing it. He’s only been doing it for a few years and he owns 6 houses. I don’t think he has much cash flow from the rentals, but he’s in it for the equity.
Doug_in_CT That is why he is the commander!
zert cats - equity is good, cash flow will come later
zert Doug - did you ever get the bank to come down on their price
Mark2007 Happy Easter. Goodnight.
ihatecats78 If I followed his path, I’d probably sell a couple once I got where He is (if the market is good) and use the available cash to make some more deals
Doug_in_CT I am interested in trying my first rehab project this year.
eryk76 goodnight all.
zert cats - why not keep them
Doug_in_CT cats — we never sell on this chat.
zert me too Doug - but nothing major
Doug_in_CT right, something a little more than paint and carpet.
zert Doug have you seen the tv show about the guys from New Haven?
Doug_in_CT I was with them this weekend!
zert a little more than paint but not a total rehab
zert oh really how was that?
Doug_in_CT The bootcamp when to dinner at a nice resturant and then over to a bar to watch the premier.
Doug_in_CT It was a little loud so I didn’t get to hear to much of the show.
ihatecats78 hmmmm… It would be nice to have some spare cash available just in case i have some problems with a property.
zert I watched them this past weekend, bought a small house for 12k put 30 into it and sold it for 125K is that real?
Doug_in_CT Yes. They assured us the numbers were real.
zert cats - in a year you can raise the rents to help with the cash
Doug_in_CT But they did say that their rehabs go so smoothly that the was not enough dramatic interest — people wouldn’t stay through the commericials.
zert Doug - wow that is something? the one guy looks familiar
Doug_in_CT So they “invented” a little drama.
Doug_in_CT The whole rehab took more like 5 weeks, when they implied it was more like 2 or 3 week.
zert if the frozen pipe would have burst they would have had drama!!
ihatecats78 that’s true zert. It’s always nice to get some different points of view. On some forums wholesaling is the way to go. Flipping rehabs on others. I’m not advocating any of it, but it’s nice to get the pros and cons from all of the Real Estate Yodas
sscercone Where do you find houses for 12k?
Doug_in_CT We did have a good blizzard in there, but if you watched the show, it got to be spring preety quick.
zert cats - I like the buy and hold method - it is too tough for me to find properties everyday
sscercone All I can find are rundown mobiles
Doug_in_CT Sscercone, they get buyers to call them….they are great marketeers
zert Doug all in the name of TV
ihatecats78 what do you look for in a property manager zert?
Doug_in_CT But It did seem like they are vacuming up the money with a well oiled machine.
zert Doug - maybe they will do an episode about you next season !!
Doug_in_CT These group, called CT Homes, has a contract to do 5 shows with them.
zert cats - someone who can handle all of the day to day ongoing items including tenant selection, rent collection, repairs etc
Doug_in_CT Some of the drama about moving the kitchen around was apparently all fabricated.
sscercone zert what kind of rate do you pay?
ihatecats78 do they generally charge a flat rate or a percentage?
zert % of collected plus any for repairs
zert if they source a higher rent rate, we both win
zert I’m going to watch the game, have a great Easter and good luck
Doug_in_CT Also the two prinicples in the compnay, Than and Paul, say they are hardly ever on site at a rehab. But the show had them over there ever free moment to “look a the progress”
ihatecats78 what kind of percentage are you talking about zert?
zert cats, I negotiated a rate . started at 10% will reduce as I have more properties
ihatecats78 do you tend to use a national or a local company zert?
zert I only have local properties
ihatecats78 thanks for the answers
ihatecats78 Thanks all. See you in two weeks
sscercone Thanks everyone, CYA
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