Chat Transcript May 7, 2007
Posted on May 8, 2007
Bill L Good Evening
santosleigh hello,bill
Bill L Hello Santos(?)
santosleigh bill l, just santo to make it easy
Bill L Thank you I was not sure, I just made a guess.
santosleigh bill L, are you new to the chat
Bill L Yes, this is my 2nd week.
santosleigh bill L, how new to investing
Bill L Just about to start the LLC. I have a couple of houses ones I lived in and kept plus my fathers properties. All told 5 units
Bill L No real direvction until now.
santosleigh bill L, that sounds good, i started in jan. i have 2 houses in buffalo n. y.
Bill L I am in Manassas, VA and you?
Bill L do you have an LLC ?
santosleigh bill L no, because i can’t get good rates from the bank with a LLC
Bill L BUt isn’t the trade off. liabilty/
Al Lee hOWDY!
Bill L Good evenig
santosleigh bill L, not if you have good insurance, this is what i heard from Al Lee
Al Lee How are you Santo?
santosleigh hello AL
Bill L Good evening, Mike
Mike Summey Hello everyone.
sparky37 Hello Mike
Al Lee Santo, I can not see the questoin that preceded your comment about what I said about good insurance.
Mike Summey looks like I’m late!!
santosleigh hello mike
eplessin42 Hello Mike
Al Lee Hi, Mike
sparky37 Mike what is the best way to find foreclosure property
Bill L Al I was asking about the LLC vs Liabilty issue
Mike Summey sparky, are you talking about before or after th foreclosure?
sparky37 both
Al Lee Bill, yes, I understand now
Bill L Mike, I got my OG and Toolkit on Sat. along with FAQ book.
santosleigh AL, bill l asked me about LLC and i repeated what you said
Mike Summey sparky, there is always a public notice about foreclosure sales and they are posted at the courthouse. Once the foreclosure sale is over, you have to find out from the bank if they buy it back at the sale.
Al Lee Santo, thenyou are a wise man! lol
Mike Summey Bill, have you had a chance to check them out yet?
sparky37 I always seem to find them after the fact
Mike Summey Hi wbailey
Mike Summey Hi VIc
Al Lee Hi Vic
Bill L Mike, Not yet, but looking forward to loading the software this week..
Mike Summey Hi Owen
Mike Summey Hi Mac
OwenG Hi Mike
Mac Hi Mike, nice to be back
OwenG First time in here, this is really cool
santosleigh AL, only trying to follow in your educated footsteps
wbailey Hello Mike from south Asheville
Mike Summey Bill, I think you will really like the OG once you check it out. There is help for every block you need to enter.
Al Lee Wisdom comes from good judgement, good judgement comes from experience, experience comes from bad judgement.
Bill L Great, if I have questions I know who to ask….
Mike Summey Hi zert
zert Hi Mike
Mike Summey I’m trying to help Carleton get in the chat
Bill L Santo, I see why you follow Al, he is a sage.
Mac Al, I haven’t heard that expression in a while. I like it and my own experience bears it out. Somehow the things I learn the hard way are the ones that stick.
Al Lee Mac, Ain’t that the truth.
Mike Summey Hi Penny
pscherer Hi Penny
Penny Hi Mike & pscherer, everyone
Bill L Hi Penny
Al Lee Mike, what kind of problem is Carleton having?
OwenG Guys, I feel like I can’t start investing quite yet because I’m in a catch-22:
santosleigh mike, a bank loan officer emailed me looking for business, i asked for $45,000 for the next house, and he said they don’t lend less than $50,000, which is the price of the house, he said it would be no problem with my 816 credit score
pscherer Owen whats the problem
Al Lee OK, while we are waiting: Who can name three (3) major ways you make gains in Rental properties?
OwenG I’m young and inexperienced so I lack capital to put a lot of money down, but I also haven’t put together a great credit score yet because, well, I’m young and inexperienced
OwenG So that limits my ability to get good loans
Mike Summey Carleton is having a problem getting in the chat. He has a new computer.
Mac Cash flow, loan paydown, property appreciation
santosleigh al, raise the rents
zert Al – increase in rents
pscherer Owen you ight try owner financing for one
zert appreciation
OwenG yes that is certainly one thing I would consider
zert purchased at discount and recognize the equity
pscherer Have you maed any offers
Al Lee 1. cash flow, 2. appreciation, 3. tax benefits
pscherer I am using Al’s keyboard tonight
Al Lee Many people overlook that number 3. It is a BIG one
pscherer Tax benefits are fabulous
OwenG I have not yet made any offers….I’ll admit, I’m a little scared to because I haven’t got much to fall back on if a deal didn’t work
Mike Summey Charleton’s new computer has the Vista Operating system and he hasn’t installed JAVA so he may be a few minutes.
Al Lee pscherer, it is accustomed to having a glass of red wine.
wbailey Dont you agree it hards to get appreciation and cash flow if you do 100% financing ?
pscherer I notice d you weren’t having any problems tonight and I am so I assumed my keyboard caught a virus from yours
Al Lee wbailey, the financing has nothing to do with appreciation, but 100% financing makes it rel hard to get cash flow
wbailey I agree
wbailey hard to get both
Al Lee My wife has me on some wacky all vegetable, no alcohol diet. That might be why I am typing better. It’s the veggies!
pscherer Owen do you mean if the purchase had a problem after the purchase/
wbailey two out of three is not bad. lol
OwenG That is, i know the point of creative financing is to make a deal that works, but I feel, as a rule in life, it’s a poor idea to invest without any capital to rely on as backup
OwenG maybe not a rule in life…that’s a little extreme
Mike Summey Al, any idea how Carleton can download JAVA on the Vista Operating system.
Mike Summey Hi Jesse
Bill L Try going to www.java.com
jesse-n-houston Hi everyone
jesse-n-houston hey Mike
Al Lee I will go away and look at it and email him something if I can find it.
pscherer Owen I agree but, If the del puts money in your pocket monthly and you keep it safe for emergencies, what’s the problem.
OwenG yeah, say I had a rental property and for whatever reason I couldn’t get it rented, or problems like that
santosleigh Al with 100% financing on a house i am looking at the cash flow would be $198.
Mike Summey Hi steve
steve_nm hi
sparky37 does anyone take partners on there deals?
pscherer Owen have you made any appointments to see homes for sale?
OwenG Right..that’s the other side of the catch-22….my credit score is only slightly above average, is it even worth trying to get a good loan?
jesse-n-houston Hey Mike, have you heard of a Realestste investment group called Lifestyle Unlimited in Houston?
OwenG rhetorical question, I realize
pscherer Yes
OwenG both mine and yours
zert Owen – in your calculations, make sure you set aside an monthly maintenance and vacancy fund
pscherer Owen in your mind what constitutes a good loan?
OwenG absolutely, as described in that great yellow-and-green book I read!
Mike Summey Be right back. I’m helping Carleton
OwenG One that makes the deal work…my concern is I’m only able to get average financing
jesse-n-houston ok
OwenG which prohibits me from above-average deals, at least ones that require loans from banks
zert what is wrong with average financing if you have positive NOI ?
OwenG or mortgage companies, et al
pscherer Owen the deal is made in the purchase not the financing. If it cashflows do you really care about the interest rate?
jesse-n-houston Hi Al
OwenG I guess the answer is I just have to find the right deal
Al Lee I’m Baaaaaack!
OwenG But I can’t help but wonder, have you guys heard of that catch-22 before?
zert there you go, keep looking until you find one that meets your needs
Al Lee emailed Carleton a link to a page for downloads. I hope it works.
pscherer Owen Daily
OwenG Or is it something that gets filed under “don’t be scared! Do it!”
jesse-n-houston Al what kind of downloads?
pscherer Owne Yes
Al Lee Hi, jesse
Al Lee Java. He is having trouble accessign the chat room form a new computer, I understand.
jesse-n-houston oh
Al Lee I cannot see the dialogue prior to my returning, so if anyone addressed anytign to me, please re-send.
jesse-n-houston ey Al what do u think of a group called Lifestyle unlimited?
pscherer Owen, if you make a mistake, so what. You need to make some in order to learn. Just don’t bet the bank until you get lots more experience/
Al Lee Del Waunsley!
jesse-n-houston yes
Al Lee Waumsley
santosleigh AL, if the noi is $198 on 100% financing, would you call that good, i thought anything $100 or more noi is good
OwenG alright then
OwenG Thanks for the input
jesse-n-houston You now him personally?
Mac santosleigh, your CASH FLOW needs to be positive. It’s the NOI less the debt service.
Al Lee I have sold a couple of the houses we have built to people in his group. I don;t know Del up close and personal, but have talked to him in tele conferences as we are both on BizRadio.
pscherer santosleigh, depends on the quality of the property. Can you keep it rented, What kind of condition is it in—will repairs constantly eat that 198 up?
Al Lee Santo, if you get ANY cash flow after debt service and other costs with 100% financing it is good.
Al Lee I do all of my businss using 30-year fixed-rate financing, so I focus on ROI (after debt service)
jesse-n-houston Yes he has a radio show.Are you familiar with his method of investments?
OwenG Do some people here have Real Estate Investment Companies (let’s say, Weekday Millionaires)
Al Lee From what I have heard he and I are largely in agreement. I have shifted to focus on new-construction lately, though.
pscherer Why Al
santosleigh pscherer, the noi is after everything is paid, my noi would be $198. the house was completely done over
jesse-n-houston Why new contruction?
Mike Summey Al, Carleton is having a problem with his firewall blocking the JAVA download.
jesse-n-houston Do you mean you are actually building or buying built at wholesale?
sparky37 tell Craleton to use his old computer
Al Lee new house warranty, new appliances warranty, lower maintenance, tenants love them, no hidden rot and other problems.
Al Lee Mike, I will email him and try to help.
jesse-n-houston You must be getting great deals on em.
pscherer Are we talking pre construction Al or simply new homes completed.
Mike Summey sparky, Carleton is going to try another computer.
Bill L Or go to the security Center and turn the Firewall off for now.
Mike Summey said to tell everyone he is sorry for the problem.
Al Lee jesse, yes I build them! 
Look at www.buyRentHouse.net
jesse-n-houston thanks
santosleigh AL, I am very interested
pscherer Al how long from concept to approval by building department in your area
Bill L Not a problem, I wrestle with them daily at work, I am a network geek.
jesse-n-houston What are you paying per foot?
Mike Summey Bill, I tried to walk him through how to do that, but he can’t find the on/off button for some reason. He is using the new Vista syspem and it works differently from XP.
pscherer Vista is the problem
Mike Summey Okay, I’m back with you now. Carleton will try the other computer and if he still can’t get in, we’ll get him fixed later and have him join another week.
Bill L Genrally it should be in the Control Panel
Bill L Yeah , MS move things around in every verison, it is such a pain…
santosleigh mike, did you get the pictures i sent you of the 1941 oldsmobile
Mike Summey Bill, I had him open Norton, which is where his firewall is located, but he can’t find the on/off button. When he click the firewall button no options come up.
Mike Summey santos, I got something today, but I haven’t opened it yet.
Al Lee jesse, $124k for 1400 sf, 4-bedroom, 2-bath, 1-car garage, fenced, all appliances
OwenG Do some people here have Real Estate Investment Companies (let’s say, Weekday Millionaires)
Bill L Time punt, and shoot the new box…
Mike Summey What is everyone seeing in their local markets. Sales seem to be declining everywhere.
jesse-n-houston Wow what are they renting for?
Al Lee If you can’t beat your computer at chess, try kickboxing.
jesse-n-houston lol
Bill L Yes, in Norhern VA
Mike Summey Owen, yes there are some people who are full time investors.
sparky37 In NJ/NY prices are still high and not much movement
Al Lee jesse, guaranteed rent return is $1050 after management and leasing fees
OwenG I have another new guy question for those folks
Mike Summey Hi kaedar
kaedar hello
sparky37 Al is thatper month
Al Lee I am certainly a full-time investor! :}
pscherer Norcal backlog of 7+months of inventory. Many sales but lots more listings as people who overpaid try tao dump their $2500 a month alligators
Mac Al, where are these properties located?
Al Lee texas, go to www.buyRentHouse.net wher there are lots of details. pictures, all that.
OwenG What level of interest might you (theoretically) have in a young guy like myself who is bright, eager, and ready to work…..would there be a place for someone like that in your company?
pscherer cats how about a name change
jesse-n-houston Al, you are talking befor P&I,right?
Bill L Yes, I think the alligator are going to be coming to N> VA soon.
Al Lee I believe that Dallas/Fort Worth is the BEST investing market in the US. So do a lot of other people who are in the know.
OwenG My objective is to make some money while I learn more about the business, looking for my own investments on the side
Al Lee jesse, I don;t understand the Q
ihatecats78 no problem, how do i do it?
Mike Summey pscherer, there was an article in yesterday’s paper about the stagnate market in Asheville. It’s been red hot here with people selling in other areas and coming here to buy. Now sales are slowing here because people can’t sell their existing properties to get the money to buy here. Domino effect.
jesse-n-houston Principle and Interest
Mike Summey Hi ihatecats
ihatecats78 Hello again mike
Al Lee jesse, yes, but I tell people that the BEST loans for an investor are 30-year fixed-rate with 10-year interest-only option.
pscherer Certainly Mike, most offers on homes here require a sale of an exosting home and as such many fall out of escrow
pscherer existing
Al Lee Virtually all the peopel who buy oru houses use that loan after they look at the numbers. Cash flow is KING!
Mac The Raleigh-Durham market is still fairly strong for retail sales, but SFR rents are softening again after starting to recover about 6 months ago. The B-C apartment market rent is good and inventory is down.
Mike Summey Owen, it would be very hard to find employment with a real estate investor. Persoanlly I have hundreds of properties, but no employees. I don’t need them.
Mike Summey Yeah! There he is!
OwenG I see
Mike Summey Carleton
jesse-n-houston Al , I see. You maximize cashflow
Bill L Good Evening Carleton,
Al Lee Hi, Carleton. You made it!
santosleigh hello Carleton
Al Lee jesse, yes, thenuse the cash flow to buy more properties
ihatecats78 It’s an honor to have you here Mr. Sheets, I’m throroughly enjoying your course.
Mike Summey Mac, rents should be strengthening the longer sales are slow. People have to live somewhere and if they can’t buy, they rent.
carleton_sheets Hello all. Remember the old adage…Be not the first to cast the old aside nor the last by whom the new is tried.
Mike Summey Carleton, did you finally get JAVA downloaded or move computers?
jesse-n-houston Al, Are you leasing to Sec 8?
Al Lee jesse, yes, about 80% of the time.
carleton_sheets No download yet but I’ll arrange for it. How frustrating!
Mike Summey Carleton, we’re talking about the cooling real estate markets. What’s it like in Florida right now?
jesse-n-houston Al, that will explain the garantee.
Al Lee jesse, that is exactly right.
santosleigh Al, no problem with sec. 8
jesse-n-houston Al, what has been your expierince with Sec.8 tenants?
Mike Summey Hi wakelandj
carleton_sheets Florida still over priced and slow altho in my are athe activity is improving (45 miles N. of West Palm)
wakelandj i was ihatecats, i changed my name
Al Lee the Sec 8 tenants are just about the best tenants we have. They NEVER cause trouble because they coudl get booted form the program and lose their vouchers.
Mike Summey We only have a short time with Carleton, so if you have questions for him, now’s the time. Don’t be bashful.
Al Lee Sec. 8 is (NOW) a terrific deal for the investor.
jesse-n-houston Sweet
wbailey I’ve heard south FL is cooling off. Is that true ?
pscherer Al I couldn’t agree more I love section 8 tenants
wakelandj I hear about section 8 tenants all the time. what is it exactly?
carleton_sheets I have the same experience with Section 8 about 80% of the time.
Al Lee government subsidized rent for poor people
jesse-n-houston Al, how has it changed?
sparky37 Carleton what do you think of buing raw land now?
jesse-n-houston Hi Carelton
wakelandj I’m in El Paso, and people are buying everything they can find around here.
Mike Summey I guess i’m in the minority when it comes to Section 8. I’ve not had good experiences with it.
wakelandj especially in New Mexico where property taxes are lower.
Al Lee the Section 8 administrators will kick someone off the program if they screw up now. That was not true years ago.
wbailey Mike, me neither
jesse-n-houston Carleton what about the 20 % lol
carleton_sheets Wakeland, it’s somewhat complicated. Call your local city or county housing authority and they will explain it.
Mike Summey wbailey, can you switch your text color, I can’t read the light yellow. Use a dark color.
wbailey just did
Mike Summey Thanks
carleton_sheets The 20% are just shiftless and somehow just don’t seem to care!
wakelandj thanks
Mike Summey Carleton, I must have gotten a number of the 20%
wbailey Careton, what are some of the best ways to fiance thse days?
jesse-n-houston Al, is that the case throughout the country or is it just local gov.?
santosleigh Carleton, the more properties i buy the more my credit score goes down, so says a bank loan officer
wbailey Interest only ?
carleton_sheets Raw land can be a good investimet if you have a use for it or you have a realistic exit strategy.
pscherer Santo I have found the same re scores
Al Lee I have a terrific leasing agent who knows Sec. 8 and all the people who work in all the administrations, city, county, etc. We screen the tenant applicatns very thoroughly and have virtually zero problems with them.
carleton_sheets Amen, AL
Al Lee jesse, I do not know much about other areas and their Sec. 8 as I focus on DFW. Like I said, I believe it is the best area in the country.
jesse-n-houston Al, that is good to know.
Al Lee A very experienced RE investor told me on my radio show that he also thought Dallas was the best area in the country. I just can’t recall his name.
wakelandj carlton, the course I got from you is a few years old. With assumable mortgages getting less and less common, does your your course now (I’m assuming that it’s been updated frequently in the last few years) offer different no money down strategies?
Al Lee Oh yeah, Carleton Sheets!
Mike Summey Al & Carleton, we get virtually no help from the locals on our Section 8 program. They are having such a hard time placing people here that about the only thing we get are problems.
jesse-n-houston Al, that is probably why Del Wamsley branched out to the DFW area
santosleigh pescherer, how does the score go down, a few numbers for each house?
carleton_sheets I’ve just got to say, no matter where you are, if you are or want to be an active investor, you shoudl be making a lot of (sometimes rediculous) offers each week!
Al Lee jesse, yes, but some of his people came to us when they wanted a good property to buy !!!
wbailey If you’re not making offeres, there’s a good chance you won’t purchase property, right ? lol
Mike Summey Carleton, I agree. So many people make one or two offer, don’t get one accepted and then think you can’t buy the way we teach.
Mike Summey Persistence creats profits!
pscherer Al how is the resale market in DFW? People I have spoken with cannot give their two year old homes away because everyone wants new–according to them.
Mike Summey Hi jodeem
jodeem Hi
Mike Summey Make the offers. Don’t worry about a few rejected ones. I’ve never lost money on a property I didn’t buy.
Al Lee pscherer, I do not think that is entirely true, but it is true that new houses aree more desirable. The thing is that if you are a long-term investor you aren’t in it to sell, but to hold and lease.
sparky37 Carleton if you could tell us how many properties you have bought in the last 6 to 12 months
Al Lee We just got a great bump in appreciation in the last year, too. that is nice to see.
wakelandj Al and Carlton, where can I find a list of where in the country homes are appreciating the fastest. Unfortunately I’m a military man and I don’t have the luxury of “farming” any one area.
Mike Summey During the past 2-3 years when the market has been so hot for sales, I’ve spent a lot of my time improving existin properties and raising rents.
jesse-n-houston Al, will tell you to just try the Dfw area lol
pscherer Al yes that is me. I do not sell, only buy. My concern is buying in Texas when the oil market is hot always drives up prices. Don’t laugh, but what happens when oil prices drop?
carleton_sheets Oh boy, Sparky. NOt many. Only 6 as I recakk byt then I’m 68 and not as active as I once was,
Al Lee wakeland, go to my website and click on the link on the lef tside for “under-valued housing”, or some similar terminology. It will take you to a comprehensive site with lots of data on every major market
santosleigh mike, if i keep buying houses, the credit score will go down right, but how much if my score is 816, how does that work
sparky37 you do not look 68 
carleton_sheets PS I see my age in print and can’t believe it!!!
wakelandj Thanks Al.
Al Lee santo, if you buy ouses that are making money, your credit score will not go down
pscherer santo buying properties has raised my already great score, why are you worried that it would drop
Bill L Al, what is your web site?
Al Lee Bill www.buyRentHouse.net
Bill L Thank You
Al Lee There are other great links on it also
Mike Summey santos, the more experience you get and the stronger track record you have of making good buys, teh less the credit score will mean. It’s easier for an investor with years of experience and a perfect payment record with a 716 score to get an investor loan than it is for a novie with an 816 score.
wbailey Carleton, what are some good ways to fiance today? 30 yr fixed interest only ?
santosleigh Al, the loan officer said with increased debt yuor score goes down
Mike Summey sparky, that’s because he is still usin his hig school picture!
sparky37 LOL
Al Lee santo, not with increased income. I owe MILLIONS of dolalrs and my score is very high.
jesse-n-houston Santos, If I am correct what brings your score down is if you get you credit pulled alot?
pscherer Santo I do not see that and all the loan officers I spoke with confirmed and increase with more loans and perfect payment
Al Lee it is your income to debt ratio that is more important than the level of debt. Also the value of yoru assets, which real estate investments will boost
sparky37 Carleton I bought your course 20 years ago, has it changed at all? I wish I started to buy back then
carleton_sheets I like interesst only…no negative amort for sure, But the best ihn a buyer’s market is seller financing!
Mike Summey I have been trying to get a representative from Fair Isacc Company to join one of our chats to discuss how they establish credit scores, bt still haven’t had any luck.
Al Lee jesse, that is still true in a limited sense, not as much as a few years ago. There have been some changes to the FICO system to fix that
wbailey Thanks !!
Mike Summey sparky, I have the original course Carleton first sold…minus one tape that has been lost. I’m going to sell it to his museum one day.
jesse-n-houston Al, is there a threshold?
sparky37 Carleton, I remember how excited I was to listen to a live call you had on th tape
Al Lee It is a trade secret and they will never tell. Also, you will notice that the three credit reporting companies will look at the same data and arrive at three different scores. That is why you hear references to your “high”, “low”, and “middle” score, as well as “average” score.
sparky37 I have them all Mike!
santosleigh Al, the houses i buy are $50,000 which is not very expensive, they are not worth that much, does that effect credit score
carleton_sheets Just got a call I’ve got to respond to (Damn real estate business – WINK) so I’m sign off. Good luck to you all!
Bill L Good Night, Thank You
wbailey gppd night
jesse-n-houston Later Carleton
Mike Summey Thanks for joining us Carleton
Mike Summey Sorry for the problems earlier.
Al Lee santo, how much rent do they bring in? remember, your income-to-debt ration is what you should watch.
Al Lee ratio
sparky37 Mike how far are you from Myrtle Beach?
wbailey Mike, If I wanted to chat with someone one on one, is that possible ?
jesse-n-houston Mike, how many Multi unit do you own?
santosleigh AL, $650 for one and 585 for a house i paid $35,000
Mike Summey santos, I’d rather have 10 $50,000 houses than one $500,000 house. I could probably get $500-$600 per month for the $50,000 houses and would be lucky to get $3,000 per month for the $500,000 house.
Penny goodnight everyone, see you all next week.
wbailey Gn Penny
Al Lee wbailey, I chat with people by email all the time. Click on the contact link on amy of my websites and we are “talking”.
Mike Summey sparky, I’m about 5-6 hour drive. 45-50 min in my plane.
Mike Summey wbailey, do you want to talk with someone in the chat?
santosleigh mike, i love the sub markets
sparky37 do you own any property there? What do you think of that market?
Mike Summey jesse, I have about 40 small apartment complexes. 4-20 units each.
Mike Summey Goodnight Penny
Al Lee santo, that should be pretty good. You ought to be making positive cash flow at that. The thing is that for loans that small you will not be operating very efficiently because many of the costs for a loan are the same for a $30k loan or a $130k loan.
jesse-n-houston Mike, will you be buying bigger complexs?
wbailey Just courious. It was difficult to get questions to Carleton with the other chat going on. I will know next time to chat directly with him or you if I have a question. No worry.
Mike Summey sparky, no I don’t. All of my investments are in Western North Carolina and Upper South Carolina. Closer to home!
Al Lee But, I certainly agree with Mike on the 10 $50k houses over 1 $500k house. I just think that the $100k to $150k range is a better place to be for overall stability
sparky37 thanks Mike have a great night
sparky37 night all
santosleigh Al, right now they give me 100% financing
Bill L good night
Al Lee santo, that is very good!
zert Al could you expand on your stability comment
Mike Summey jesse, probably not. I like to stick with the smaller properties. It keeps the risk spread very nicely.
Mike Summey Goodnight sparky
wbailey MIke, talking about up-state SC. Greer is an emerging market right now.
wakelandj A question for the admin: How old are you now, and how old were you when you started investing in real estate?
Al Lee I think that a certain type of tenant will be more likely to move into a house, take care of it, and remain there until their kids graduate high school that is what you want if you can get it. It is also easier to sell a house that is in the price and size range that the “first-time homebuyer” is looking for,
jesse-n-houston Mike, I can appreciate that. I hope to one day have that kind of cashflow.
Mike Summey Al, I recommend that you stay in the mid range of the rental market. That may be $50,000 – $75,000 houses in one part of the country and $150,000 -$200,000 in another part. Stay away from the too cheap and too expensive parts of any market.
santosleigh Al and Mike, i learned a lot tonight, thanks a MILLION
Al Lee Mike, excellent point.
Al Lee OK, I need to run now.
Bill L MIke & AL my mid range is what Mike just said 150-200
Al Lee een great, as usual.
Mike Summey wbailey, the whole area from Spartanburg to Anderson is a very good market for investors.
Mike Summey Goodnight santos.
jesse-n-houston Goodnite night AL
Bill L NIght AL
Al Lee Next week…
wbailey I have one in Greer and Simpsonville. Both are appreciating nicely
Mike Summey I’ve got to run too. See everyone next week.
wbailey NI NI
steve_nm nite.
Mike Summey The rest of you are free to stay an talk with each other as long as you like.
Bill L Good Night MIke, I will check out og
zert thanks Mike
jesse-n-houston Goodnite Mike ….all
Mac Night all
wbailey Anyone using a national mortgage broker ?
zert santos are you still logged on
santosleigh zert, yes
zert wbailey – I have used Countrywide
wbailey Are they still doing 100% ltv
zert santos – how is buffalo doing
wbailey I’m hearing 100% is getting harder to get
zert I’m not sure, I haven’t used 100%
wbailey using cash down or 1031′s ?
zert CAsh down and a HELOC
wbailey HELOC ?
zert Home Equity Line of Credit
wbailey is this on a primary home ?
wbailey le to find HELOC on investment properties
santosleigh zert, the broker i work with rehabs houses and sells them very fast to people before he puts them on the bid for assets site
zert no investment property
wbailey Yea, I know
zert santos – I saw an website similar to that, the areas weren’t too good though
wbailey zert, so you are making enought cash flow to pay your mortgage and HELOC, right ?
zert no mortgage, only HELOC
zert yes making enough cash flow to cover
santosleigh zert, this way you don’t pay the 10% auction fee, what do you care about the area, your not living there
wbailey how do you keep doing that over and over? One day you will run out of equity, right ?
zert don;t follow your question
zert santos – if the area is real bad you have to worry about major repairs, damage, and loss of appreciation
wbailey If you keep using your equity line, your credit line will max out. How do you free up your credit line after buying two or three houses? Go get a loan on a house that is free and clear and payoff the Equity Line ?
zert no I do not use my equity line, I place a line in the 1st mortgage position in place of a traditional mortgage. Very minimal closing costs upfront
zert gotta go – homework time goodnight
santosleigh zert, first house i bought for $50,000 cash for the free and clear status, the second house was financed 100% by the bank,i only paid $700 for closing
wbailey ni ni
wbailey What does he mean by “no I do not use my equity line, I place a line in the 1st mortgage position in place of a traditional mortgage. Very minimal closing costs upfront”?
wbailey anyone ?
santosleigh profit for one house $398, the second $160. after all debt is paid
wbailey hi Mark
MarkNC Hi, it seems things are winding down. Am I too late
wbailey yea. We started at 8 pm
wbailey where are you from ?
santosleigh markNC, never too late to invest
MarkNC Boone, NC
wbailey sweet. Asheville here
MarkNC You’re right bout that santos
wbailey Hows the market in Boone and Blowing Rock ?
MarkNC It still seems to be going pretty strong. The inventorry is increasing some but good deals seem to go in a hurry nd for asking price. I have been looking for a primary residence and have found it tough. We are trying to move up so are pretty picky.
santosleigh MarkNC, i am from new york city, can’t buy anything here, single family $750,000 to $900,000
wbailey have you been looking for foreclosuers ?
MarkNC Yeah, we aren’t like NYC or many metropolitan areas, either in housing prices or in salaries.
wbailey FSBO?
wbailey and your not competing with the locals either
wbailey a lot of out of state folks coming in, right?
MarkNC wb the foreclosure market here is really tough. It is a small enough area that there are a few people who get all of info
santosleigh wbailey, thats why i invest in buffalo,$50,000 to $35,000
wbailey Most deals come by word of mouth
wbailey u have a RE Investment Club in Boone ?
MarkNC Yes, a big problem here are people coming from Florida with 1031 money looking to invest. They see the market as a safe bet so don’t care as much about cash flow. There was an REI club trying to start here about a year ago but I don’t think it ever took off.
wbailey how about you santo
wbailey belong to any RE Investment groups ?
santosleigh wbailey, no i just wing it by myself
wbailey I understand. I belong to CREIA
wbailey Carolina RE Invesment Assoc
santosleigh wbailey, i just started in jan. i only have two houses that i rent
wbailey about 150 meet monthly
wbailey etworking
wbailey What books have helped you the most ?
wbailey been to any seminars ?
santosleigh wbailey,i read mike summeys, no seminars
wbailey there should be some seminars in Buffalo for networking purposes
wbailey how do you find your deals ?
wbailey Ads ?
wbailey Realators ?
santosleigh wbailey, i hope to do 4 to 5 houses a year one realtor
wbailey Sweet.
wbailey Are you flipping any ?
santosleigh wbaily, i am 61 years old i have to do this fast ,no flipping
santosleigh wbailey,my realtor has 17 houses in 3 years, i am trying to catch up to him
wbailey Are you in an appreciation area ?
OwenG hey guys
OwenG still at it huh?
santosleigh wbailey, he said since i keep buying from him he will continue to pay my closing costs, not looking for apprciation, buy and hold for the rents
wbailey So your plan is to retire off the cash flow or at least supllment your retirement ?
santosleigh wbailey, i have 2 pensions and in dec. i retire with social security and my income houses
wbailey Sweet. I’m 48 with the goal of 20 houses. I started in 2002 and have aquired eight properties
wbailey Mine are breaking even for cash flow purposes, but appreciating about 10% a year
wbailey I have a full time job that pays the light bill
santosleigh wbailey, i live in a apt. for 30 years, my rent is low for nyc, $480. that is very good 8 houses
wbailey about a million is assets
wbailey 10& a year is making me $100k a year
wbailey in 8 years, it will double if the market continues
wbailey 10% a year appreciation
santosleigh wbailey, you are young enough for a 50 property goal, go for it
wbailey naaaa
wbailey I may go to 10 and stop. Once they are paid off, that will bring me in 10k a month
wbailey I can pay my green fees with my SS
wbailey ;-0
santosleigh wbailey, never say naaa, i hope to have 40 to 50 in 10 year span, my s.s. and my 2 pensions will be tip money
wbailey Nice
santosleigh wbailey, think positive
wbailey oh yea
wbailey nking that way has got me where I’m at right now
wbailey be thinking about getting plugges into some RE seminars
wbailey them in Charlotte all the time
wbailey Mike Summey can helpo you find them too. Nice guy
santosleigh wbailey, i am a busy man, with real estate, a 1941 oldsmobile i own with 68,000 original miles, working out in the gym, and working for a charity that helps retired boxers that are not doing too good
wbailey I agree. Make sure you get all the education you can get. Maybe I will see you on here next week. My email address is wayne_bailey642@hotmail.com if you need help with a question. Have a good night ! –Wayne
wbailey Good night !
santosleigh nite wayne
» Filed Under Chat Transcripts
Comments
Leave a Reply