Chat Transcript - April 23, 2007
Posted on April 24, 2007
Roger Dawson Hi Santo. How are you today? Where are you?
santosleigh roger ,i am in nyc the big overpriced apple
Roger Dawson Yes, California’s getting that way too. I bought my first home in Napa for $12,700. Thought I’d made a killing when I sold it for 42K. Prbably worth 600K now.
Roger Dawson Hi Mike! Welcome!
Mike Summey Hi Roger & Leigh
santosleigh i invest in buffalo where i can afford the $50,000 homes
santosleigh hello mike
Mike Summey Leigh, did you get the Offer Generator figured out?
Roger Dawson Ah Buffalo. Where suicide is redundant (line from Chorus Line)
santosleigh mike i tried and no luck, but i will have my friend do it he can do anything in 30 seconds
Mike Summey Carleton just sent me an instant message that he would like to join us, but he has to leave to go to dinner.
Mike Summey Leigh, it’s really simple so if you have someone who can walk you through it once you shouldn’t have any problem.
Mike Summey He said to say hello to you Roger
Roger Dawson That’s nice Mike. I’ve know Carleton for 30 years. Nice guy
Mike Summey Wonder where everyone is tonight? they all seem to be late.
santosleigh mike, thats what i will do, he has done other things for me.
Mike Summey Leigh, you’ve got us both for a few minutes so make good use of the time.
Roger Dawson I checked the news headlines. Nothing new going on.
santosleigh mike, trying to get that title thing fixed
Roger Dawson Hi Penny!
Mike Summey I’m working on a new article today titled “Prosperity Acquired With Debt is Only Borrowed”
Penny Hi Roger.
Mike Summey Hi Penny
Penny and Mike.
Penny I’m really early again, I guess.
Mike Summey It seem like we are all early
Mike Summey I think the good weather and daylight savings time may be affecting us.
santosleigh mike,lady at the bank says my attorney is not giving her what she wants, i will have to use another attorney
Mike Summey What is the attorney not giving her?
Penny I had to try about 3 times to get the chat area to load. Could be other’s are having trouble also.
Roger Dawson I dindn’t have a problem but I’m on a Mac, Mike!
Penny then again, the nice evening could be it also.
Mike Summey I didn’t think of that. I wonder if there is a problem with the website.
Mike Summey I had no problem either.
Roger Dawson What’s the big fuss about a nice evening. We have them all the time.
Penny so nice for you Roger 
Penny but some of us are still waiting for Spring to come and stay!
Mike Summey Roger, I read tody that ove 90 % of all computers run some Microsoft product.
Roger Dawson You made me buy that Dell and I can never figure out how to make it work!
Mike Summey roger, what’s the problem.
santosleigh mike she wants aletter of indemnity and a letter that all mortgages and leins have benn taken care of, and he says with the new title that don’t mention them means they are erased
Penny santosleigh, looks like yuo have the pros all 2 yourself tonight. Go ahead, take advantage of them, I’ll not tell.
Roger Dawson Oh Penny! That was saucy!
santosleigh thanks penny
Mike Summey leigh, part of what an attorney does is to research the title and give an opinion that you are getting the property free and clear of other leins. That’s what the banks want and that’s standard.
Roger Dawson Leigh, I agree, if the title company doesn’t show the liens, why is it a problem?
Mike Summey Roger, the seller may be wanting to give leigh something other than a General Warranty Deed.
santosleigh roger the lady at the bank insists that she gets these letters
Mike Summey Leigh, you don’t get a title to property, you get a deed. The attorney or title company should do a title search to see if there are any encumbrances on record against the property. It is the result of that search that the bank wants.
santosleigh mike this other attorney is looking into this and he is saying the same thing that you and roger are saying
Roger Dawson Hi I hate cats
ihatecats78 Hi Roger, and everyone else
Mike Summey Leigh, you should purchase title insurance when you buy properties. There is a policy that covers you and one that covers the bank.
Mike Summey Hi ihatecats & jesse
jesse-n-houston Hi Mike,Roger,and everyone
santosleigh mike now i know from my first rookie mistake
ihatecats78 title insurance is basically there to protect you from things not revealed in the title search such as leins and other alligator food correct?
Mike Summey Glad you could join us. Everyone is late tonight. Roger & I thought we had the wrong time for a few minutes.
Mike Summey thanks ihatecats. That’s correct.
Mike Summey I just had quail from a recent hunt for dinner. they were very tasty.
Roger Dawson What surprises people most about title insurance is that it doen’s say anything about what’s on the property. There could be a 12 lane freeeway running through the property and the title company wouldn’t know.
ihatecats78 So I’ve read a few beginners REI books and I’m now studying books on foreclosures and other ways to find a good deal on a house. For starters, does anyone here have any “must reads” for me in these areas?
Mike Summey I just learned today that in 2007 the interest on the national debt is projected to be larger than the total budget deficit.
Penny Mike, if you buy title insurance, how is it purchased? Through the company doing the title search? If so, shouldn’t the ones doing the title search insure their own work?
Penny sorry, I’m sure that is a stupid ?, I don’t know those things.
Roger Dawson Ihatecats, if you can still get a hold of Nickerson’s book “How i turned $3000 into a million” or something like that. It’s very dated but still relevant.
Mike Summey Roger, that is correct. Title insurance only insures the land, but most title companies require a survey showing all structures “as built” before they will give unlimited coverage. I’ve had properties where the survey revealedencroachments by neighbor’s fences and out buildings.
Mike Summey Hi wps
Roger Dawson Mike, that’s news to me. They don’t go out and inspect the property do they?
wps good evening good to see you again
Roger Dawson Hi wps
wps Good evening to you also
santosleigh mike, i had a broker email me today with a 5 br. house ofr $22,000 in buffalo, he could not get his reserve of $25,000. he also said he would pay transfer costs and title fees, i had to decline because of the title mess i have right now.
ihatecats78 i’ll write that down. I bought Carlton Sheets “No Money Down” course about 7 years ago but I didn’t get through it at the time. (I was 21 and easily bored) Now that I’m ready to go through it, I only have the CD’s and a couple of the videos. I could kick myself for losing all the paperwork/course materials.
Mike Summey Penny, in some states the title companies do their own searches. In NC it is done by attorneys who certify the results of their searches to the title company.
Penny okay, thanks
Mike Summey Roger, without an “as built” survey, the title policy will contain an exception for anything a survey would reveal.
Roger Dawson Penny in California it’s all done by title companies. They have all the information already in their computer banks. They just print it out and charge you a fortune. I was the founding investor in First National Company for a while. It was a license to steal.
Penny so Mikes, the title insurance in NC, if bought, protect the attorneys and the buyer?
wps How was evryones tax benifits from having rentals vs income
Roger Dawson I hate cats:
Roger Dawson I hate cats: Carletons program is very solid. There are a lot of get rich quick schemes out there that you need to avoid but I’ve always spoken highly of Carleton’s program.
jesse-n-houston Mike, I have a long question . I’m looking at an area with alot of forclosures an area were the government placed alot of Katrina Evacuees.Long time owners in the neighborhood are trying to get out cause they feel the area has taken a turn for the worse. Should I stay away from this area?
Penny hummmm Roger. So in NC it goes through the attorney then to the title company. Wonder if thats a double charge? anyway.
Mike Summey Penny, in NC the attorneys certify title to the title company that writes the insurance. The title company is protected by the attorneys’ “errors and omissions” insurance, but you are protected by the title company. If the title turns out to have problems, your loss will be covered, but the title company will turn to the attorney for restitution.
Roger Dawson Jesse: do you feel comfortable walking there in daytlight hours?
Mike Summey Hi wood
ihatecats78 So I’d love to know where those here tend to find their deals. I know that the gurus here have the buy and hold philosophy, but I’m certain that nobody wants to pay retail. I’ve heard of the “We Buy Houses” signs, REO’s, pre foreclosure, vacant houses, etc. What’s a good place to start?
jesse-n-houston Yes Roger
wood hello everyone
jesse-n-houston hello
Penny okay Mike, I understand now.
Roger Dawson Hi Wood
Mike Summey jesse, I’d do some researchto see what kind of rental market there is for the area.
Mike Summey If memory serves me, Wood is brom Beijing, right?
jesse-n-houston Mike 3/2/2 will go for 850- 1050
ihatecats78 Roger, I think it’s a very good course. I think it may be a good idea to read a few beginners books before listening to the CD’s. I started reading as I started listening to the first CD. Half way through it I really started understanding what Mr. Sheets was talking about.
wood no
wood shandong
wood the first time here
ihatecats78 I plan on listening to it again after a short break. It drives my wife crazy to ride around with me while I listen to it.
jesse-n-houston Mike, the forclosures are going at high 60’s and mid 70’s
Mike Summey ihatecats, have you read our book The Weekend Millionaire’s Secrets to Investing in Real Estate? It answers your question.
Mike Summey wood, are you close to Beijing?
Mike Summey Hi cstew
cstew hey everyone
ihatecats78 I think I saw it on amazon, but didn’t order it. What does it focus on?
Roger Dawson There used to be theory that neighborhoods all went through a curve. Rising values until the area was fully lived in and developed. Then a long downhill as it disintigrated. I’m not sure that’s true any more. It’s amazing how some run down areas become gentrified and go back up in value. That include most of downtown LA right now.
wood yeah 4 hours train
cstew and asheville NC
wood is there some e-book?
cstew I am looking in downhill areas, more so for small lots close in
Roger Dawson Hi Wood! Welcome. I understand that you’re from Beijing. One of the world’s most amazing cities. I’m going to be giving seminars in Shanghai at the end of July.
jesse-n-houston Roger alot of areas I feel are going thru changes here in Houston due to higher crime that evryone seems to blame on the Katrina evacuees.
Mike Summey ihatecats, it gives you everything you need t know to get started. Also the Weekend Millionaire Real Estate FAQ book is a companion book for the real estate book. It contains a compilation of questions and answers that people ahve asked us over the years sorted into the same chapter headings as the RE book. You can order from this website shopping cart at retail price and you will get autographed books.
cstew Roger, if I wasn’t busy the end of July, I’d carry your bags!
wood hope you enjoy your trip in China
cstew ihatecats, the book is worth it, really.
Roger Dawson China is a very exciting country with a booming economy. If I were 20 years old, that’s where I’d go to make my fortune.
Mike Summey Wood, I guess what I was asking is are you in the same time zone as Beijing. I think I sent you an email about the time difference so you could join us in the chat. Isn’t it 8:37 AM Tuesday morning there?
cstew naw, I am too family oriented, and if my 20 somethings want to go…. ah, would have to let them go I guess
Mike Summey cstew, where are you located?
cstew Asheville
wood yeah we China are in the same time zone
wood but i am not in Beijing
wood thanks for your help
Mike Summey cstew, that’s what I thought.
ihatecats78 I’ll check that book out Mike. Do you offer anything that goes into detail about RE finance? For now, I feel like that’s my weakest area.
Mike Summey wood, what is real estate investing like in China?
Roger Dawson Cstew: would you fly my jet for me?
santosleigh mike, would you say that i should stay with this bank in buffalo, because they gave me 100% financing on the last property, or should i try mortgage brokers
Theo_SC Hey all
cstew there is alot about financing in the book ihatecats, new ideas
ihatecats78 Cool. I’ll pick it up.
wood Mike Summey i know little about it
Roger Dawson Hi Theo!
Mike Summey ihatecats, the Offer Generator software and Carleton Sheets Toolkit both can help you with the financing part. The OG shows you how to balance price and term to generate dozens of offers that will all cash flow with the NOI and Carleton’s program has a very good financial calculator in it.
Mike Summey Hi Theo!
Theo_SC Hi Mike & Roger
Roger Dawson Hi Al. Where you bin?
Al Lee Hi, Mike, Roger, everyone
Mike Summey Hi Al, where have you been the past few weeks?
cstew Roger, I actually have sat in the jump seat of a DC3, take off and landing!
wood i just graduated from school i dont have time to find it
santosleigh hello al
Al Lee Bin Woikin’
Mike Summey ihatecats, Theo can tell you about the Offer Generator. He uses it.
ihatecats78 unfortunately I lost all of that stuff Mike. All i have are the CDs and a couple of videos <——dumb
Roger Dawson Cstew: I don’t have a jet, but if you’d agree to fly me, I’d have a pilot. And that’s a start!
jesse-n-houston Mike or Roger, Here we are going thru a period were there are alot of rentals on the market and competion is driving the rental down, in terms making it harder to stay within my NOI without sacrificing a management fee.And the forclosers I am looking at are at or below 30% of appraisal value. In this case Should I go ahead and manage it myself until the market turns around?
Al Lee We are finishing up one project ans starting the next one and I get a little busy for a short while
jesse-n-houston hi Al
ihatecats78 In my defense I have moved 5 times since I bought the course. Thanks Uncle Sam!!
Mike Summey ihatecats, Carleton’s Toolkit is not part of the TV package you bought.
Al Lee HI, jesse
jesse-n-houston I herd your show on the radio in Houston the other day.2 thumbs up!
ihatecats78 I’ve broused through the site, but I’ll look again and check those items out.
Al Lee Thanks. Did you notice I was fighting a cold and tryign not to cough. I had tu use the cough button a few times
Roger Dawson Jesse: if you can buy at 30% of appraised value you shouldn’t have a problem paying 10-15% to a manager. Do you have a relative or friend you trust that could do it for you?
cstew Just no can do end of July, Mike knows of our little festival here in asheville called Bele Chere, I am on the board, I do events. Freebie for the love of my community.
jesse-n-houston I could not since it was my first time listening
santosleigh Al, i spoke with Curtis Lee, and it was very interesting, i think we will do business someday.
wood i should say it is not a good time for me it is 8:46am
Theo_SC ihatecats78: if you don’t have the Offer Generator, I strongly suggest you get it, I takes the guess work out of making offers. You MUSt get it.
wood work time
jesse-n-houston Roger, I do.
Al Lee santo, great! Curtis would be ver happy if you were to buy a few houses !:)
Mike Summey jesse, the cooling sellers market will cause the rental market to firm up and get stronger. When sales are bad, rents are good.
Roger Dawson My parents managed my properties for many years. It was a win for all of us.
jesse-n-houston Roger ,I Like that idea.
Mike Summey wood, you should be up by 6:00 each day. Get an early start on the day.
Roger Dawson Jesse: the point is that the highest and best use of your time is finding new properties to buy
Theo_SC I have been pretty busy
Al Lee I recommend that anyone managing properties for anyone else become a member of some industry organizatin so they will be able to keep up with laws and other dangerous aspects of managing properties
ihatecats78 I’d like to use an agent/broker for my first deal. I plan on explaining that I’m looking to invest, but I want to be sure that I’m dealing with a “buyers broker/agent”. Any thoughts?
Mike Summey wood, I see! What type work do you do?
santosleigh Al i’am a little concerned about those texas tornado’s, are they in your area.
wood good idea
Roger Dawson Mike, there are two six a clocks in the day? How confusing!
jesse-n-houston Roger, Yes I agree with that.I am just having some trouble with being able to pay all of the NOI with rental fees.
ihatecats78 hey jesse, what part of houston are you from, and where are you considering investing in?
wood patent agency
cstew I have tried to stay focused this week, and have looked at quite a few lots and a few houses this week
Roger Dawson I wouldn’t be too consumed about getting a buyer’s broker. They are all being paid by the seller and working for themselves, trying to put deals together any way they can.
jesse-n-houston ihatecats,North and I am looking at Humble ,Spring areas
Al Lee I have lived here since 1969 and have never seen a tornado and have never had a bit of damage caused by one. In Fort Worth, on the other hand, they did get hit a few years back and it caused mega-bucks of damage. I go to California a few times a year to speak and I HAVE ben in an earthquake ! Go figure.
Mike Summey ihatecats, you really need to get the real estate book and read it. We cover everything you need to know to get started. There are even 8 weekly exercises that once you’ve done them you will have done everything you need to do to get started.
cstew I still have not found a new deal that will work within my NOI
ihatecats78 Ah memories. I used to live in atascosita forest.
Roger Dawson There’s nothing like a good earthquake to make you feel humble. Even when you’re a Texan!
cstew I will say Craigs list is used by the young quite a bit
jesse-n-houston ihatecats ,yea there is alot of deals there too(atascosita)
Mike Summey Hi jmg
jmg hi mike
Al Lee Roger, I did not recognize it for what it was and kept on speaking. A girl in the front row went into hysterics and fell to the floor. She had been in one wher 6 people died.
santosleigh AL, thanks, that makes me feel much better about investing in your properties
Mike Summey cstew, I think we will see the market in Asheville cool a great deal in the nex couple of years. My experience is that we run 6-18 months behind the national trends.
Al Lee Your insurance covers the property, anyhow.
ihatecats78 jesse, I’ve been looking on alot of the REO / Hud sites and there are tons of foreclosures around there. From what I’m hearing you still have to hunt for a deal with any kind of foreclosure, but there are many to choose from in your area.
wood i have to leave now work time
Theo_SC Mike…I read today that Asheville is the # place to live…go figure
Theo_SC #1
wood bye everyone
Roger Dawson Al, that’s a great story! I love it!
Mike Summey Al, believe it or not, we had an earthquake here in Asheville a few months ago that jolted me awake from a sound sleep.
Roger Dawson Bye wood!
Mike Summey by wood, glad you could join us.
Al Lee Man, I am glad I live in tornado country. I am scared of earthquakes
jesse-n-houston ihatecats, yes that is true.But the wierd thing is rentals are staying on the market for a long time.
Mike Summey Theo, which list was that?
cstew 3 bdrm house had an opening for a room, put in a craigs list, free ad, had over 30 applicants in 4 days, 3 strong apps, checked their “myspace” interviewed each, boys got a new roomie
ihatecats78 jesse, what price range of rentals are you talking about?
Mike Summey Al, we don’t have tornados here. The mountains break them up before they can form.
Al Lee Mike, yeah, but you have earthquakes…
cstew come on Mike it has been in the news!!
ihatecats78 I haven’t talked to any property managers in the area, so I don’t know what a solid rent rate is in humble
Theo_SC I will email you the link. I think it was on “relocate-america.com”
jesse-n-houston ihatecats, 3/2/2 usually go for 895 to 1050
Mike Summey cstew, sorry, but I haven’t seen the news in the past few days. Been doing other things.
cstew no, relocate gave us lower I believe
cstew was, aw heck, check the cit times web site
jesse-n-houston ihatecats and even the lower range rentals in the same area stay on the market a good while
Mike Summey Theo, that’s why this aea runs behind the national trend. It has done so during the past 2 cycles I know.
jmg Hi, i’m new to chat and to realestate. I live in Williamsburg,VA
cstew has been a hard week, VT, and a tragety on the Mars Hill Baseball team
Roger Dawson One lesson I learned from being a landlord is that you should always have enough cash reserves that you don’t have to rent to a marginal tenant.
ihatecats78 I see, have you looked at other areas in houston to see if the same thing is happening all over?
Mike Summey jmg, just jump in anytime with your questions. We are all friendly and here to help.
jmg Mike,thanks.
santosleigh mike, there was a earthquake in p. a. about 15 years ago. small one and where i live in nyc it vibrated my windows for ten seconds a put a crack in my living room wall
ihatecats78 and just out of curiosity, where are you getting your info? property managers? Agents?
jesse-n-houston ihatecats , I haven’t ventured too much on the south side cause It’ll be too far to check on.
Theo_SC Mike, Roger or Al: do you recommend short sale during this time?
Roger Dawson Grea thing about earthquakes is that you’re not sitting around waiting for them to happen. Either you die or you don’t and it’s all over in 30 seconds.
Mike Summey I found it interesting that wood joined us this evening from China.
jesse-n-houston ihatecats, I go out and call landlord, I use and ajent, and also I check the mls,clasifieds etc..
Theo_SC Are banks becoming more friendly with short sales?
ihatecats78 hmmm… If it were me, I’d rather drive for an hour on the beltway to check on my rented property, than be able to walk right next door to my vacant one. Just my amateur opinion.
Mike Summey Theo, if you can acquire a good rental by short sale, by all means do it. I’ve gotten some of my better propertis that way.
cstew it was Relocate-America.com
cstew http://www.citizen-times.com/apps/pbcs.dll/article?AID=200770422009
Roger Dawson Theo, it will probably take a few more months for lenders to accept short sales. But it’s always worth a try if the loans are worth more than the property is worth. Just send the low offer to the lender and see if they’ll write down the loan to get out from under it.
jmg Williamsburg market is in high demand due to northener retirees, so I believe i’ll have to research Gloucester across the york river or Newport news south of here by25 minutes. Any comments
Theo_SC thanks cstew
Mike Summey Thanks, cstew, I’ll check it out.
jesse-n-houston ihatecats,They surely would not be in my neighborhood
Al Lee If you want to compare housing markets, go to www.buyRentHouse.net and click on the link for “Undervalued …” on the left side of the page. It will put up a map with fascinating data form Natinal City Corp.
Al Lee National City Corp.
Theo_SC thank roger
Mike Summey cstew, I’ve been working on getting caught back up with my articles for the paper the past few days so I haven’t been watching the news. I like to stay 4-6 ahead and I was down to just 2.
Theo_SC any particular time to approach the bank?
jesse-n-houston Al, are you talking sales or rentals
Al Lee That map compares housing values for all major metro areas. The better the value, the more likely you are to get a higher rent/price ration, though.
Roger Dawson I need to run. See you next week!
ihatecats78 thanks for the advice roger
Al Lee The map is “hot”, so you can click on each maetro area for details. It also has a link to see all of them in tabular form.
Mike Summey Theo, if you can get to the bank just before the property goes to foreclosure, you can often get them to discount the loan considerably if you will purchase it from them.
Al Lee Goodnight, ROger
cstew I have been looking as far north as Madison Ct, some into henderson, but haven’t been able to strike a deal as yet,,,, other than my 1 from a couple of years ago
jesse-n-houston Al, what are you guys expierencing in Dallas with the unique situation with Katrina evacuees in Rentals?
Theo_SC thnx Mike, I am working one now…slow
Mike Summey I once bought the bank’s position on a $93,000 loan for $40,000 but I had to follow through on the foreclosure.
cstew so how do you find out about foreclosures?
jmg Courthouse and look for lis pendens
cstew I am getting closer to some fokes at the bank, but it is a branch, should I go uptown?
Mike Summey cstew, unfortunately, we don’t have very many in Asheville right now. I checked the HUD list a few weeks ago and there was not a single one in buncombe County.
Penny goodnight everyone. see you next week.
jesse-n-houston cstew ,the best to start with reo’s.contact a realtor they help you find some
Al Lee Dallas got a boost of about 10,000 which may have dwindled some as some of them may have returned, All in all, though, it was a temporary phenomenon and nobody thinks much about it any more. The exception is in Section 8 housing. We did get a couple of thousand Section 8 tenants who are staying. That gave us a boost since my newer projects all focus on Section 8 primarily.
jesse-n-houston It is less work but deals are not as good
Mike Summey cstew, the courthouse is a good place to start. Filings must start there.
cstew ok, I know a few people downtown as well
jesse-n-houston Al ,when you say newer projects are you talking single family or apts.
cstew would you go down the stairs, or in the vault to start?
Theo_SC got too run. see all next week
Al Lee jesse, all SFH’s go to www.buyRentHouse.net and look at the details.
Mike Summey cstew, go to the Register of Deeds office and they will assign someone to give you a tour and show you how everything works. My sons did that a few weeks ago and they were very impressed.
cstew thank you mike, I will
Mike Summey I’ve got to run too. Goodnight all. See you next week.
cstew nite to all
jmg Goodnight
Al Lee Goodnight, all
jesse-n-houston Al, here we have alot of forclosers that were sec 8 rentals and in some areas these are going into foreclosers .I thought gov. money was a sure thing.
jesse-n-houston bye mike
jesse-n-houston well everyone just disappeared
jesse-n-houston goodbye ihatecats
» Filed Under Chat Transcripts
Comments
Leave a Reply