Chat Transcript - June 18, 2007
Posted on June 19, 2007
deb am I in the right place?
deb Hi Santo
santo hi, deb
deb My first time in the chat room, not exactly sure how it works
deb Now will roger and mike actually be here to answer questions?
santo deb, just type in the name of the person you want to talk to and type in your question
santo deb yes
santo hi Al
Al Lee Hi, I amearly this week.
Al Lee I am early
deb oh ok great, looking forward to the conversations thanks
Al Lee Hi santo
deb are either one of you beginner investors?
Bill L Hi all
Roger Dawson Hi everyone
Bill L Yes, Deb I am.
Roger Dawson There’s Mike!
Mike_Summey Hello everyone!
Al Lee Hi, Mike, Roger
Bill L Hi Mike
Mike_Summey Santo, thanks for the video. I watched it today.
deb Hello Mike -Roger
deb Well I have a question!
Mike_Summey Shoot
Mike_Summey Hi wood
Bill L Hi Wood
Roger Dawson Hi Wood
wood hi everyone
Mike_Summey How are things in China today wood?
santo Al, my broker has asked the seller to come down in price from $48,900 to $42,000, the seller said yes, so the deal is on. this is for a 2 family, 2br over 2br
Mike_Summey Hi Dennis
Dennis Hello
deb I own 2 properties in Ma.Really want to head to florida! Will end up with about 225000. after all is said and done. Should I sell or try renting long distance?
Mike_Summey Sounds good, santo
santo hi, Mike
Al Lee santo, congrats
wood The price of the hoses are high
Mike_Summey deb, you will have to make that call. Do you have someone you can trust to handle the properties when you leave?
Mike_Summey Hi Al, I didn’t see you earlier.
wood When you want to buy one ,you should pay at least 30%
deb No, not really
Al Lee Hi, Mike. Roger and I have figureed out your secret.
Mike_Summey deb, can you sell the properties and get our okay?
Mike_Summey Wood, do you mean you have to pay 30% down and finance the balance?
Roger Dawson What’s that Al?
santo deb, sell that house, and buy 4 $50,000 homes and rent them out
wood Mike yes
Al Lee I just told Mike privately that we had figured out his alter-ego thingy.
deb Sounds great but I’ve never seen a 50000. house before.
Mike_Summey wood, can’t the person selling the house finance part or all of the 30%?
wood It seems that the Gov make the policy,and it maybe work but I never try it
Roger Dawson Deb, be sure you’ve figured in the tax consequences of selling. Unless you’ve lived in the property for two years, you might have to pay the IRS a lot.
Al Lee santo, in many parts of the country there is no such thing as a $50k house
Mike_Summey Hi Mac
Mac Hi Mike
deb Have lived in it for 15 years
Roger Dawson Santos is used to Buffalo pricing.
santo Al, in the great old town of buffalo ny
Al Lee that is some cheap real estate!
Mike_Summey deb, real estate is in the tank right now in Florida. If you had $200,000 cash you could use it as seed money and probably buy $1,500,000 to $2,000,000 worth of property in Florida and get some good deals in the process.
Mike_Summey From what I understand, taxes and hurricane insurance are killers in Florida.
deb But will the rents make my mortgage payments?
Roger Dawson Hi Penny
deb Nobody can kill you worse than the politicians from Taxachusetts
Al Lee Hi, Penny.
santo AL, 2family homes from $29,000 to $40,000 3 family to 4 family $50,000 to $60,000
Penny Hello Roger & Al, everyone.
Mike_Summey deb, with the state of the Florida market, you should be able to make the numbers work. The more difficult it becomes for people to buy, the easier it is to raise rents. People have to live somewhere.
Mike_Summey Hi Penny
Al Lee santo, I am building houses in Dallas, the most underpriced major metro area in the US and we could not build even a tiny house for $50k at cost.
Penny 
Al Lee You can buy run-down houses for $50k, but most of the people who tried that are sorry they did.
Mike_Summey I will be going to an auction on Friday. A bank is selling an REO property that interests me.
deb I think I’ve got the old analysis paralysis going on.
Mike_Summey deb, what is it that Nike says….Just do it!
Mike_Summey deb, the biggest mistake is the mistake of doing nothing.
deb Yes, I should. I’ve always wanted to get out of here, but been chicken to just DO IT
Mike_Summey Roger and I are about to complete the manuscript on the next Weekend Millionaire book. It will be released in February 2008.
Al Lee Mike, what is the title?
Mike_Summey Weekend Millionaire Real Estate Negotiating.
wood The house market here is hot, but not too much people live in the new houses ,it seems not suitable to make money form rent.
santo Al, the equity loan i am getting for $55,000 i should be able to put down payments on 5 maybe 6 2 family homes, my home inspector makes sure that they are not run down
Al Lee That shoudl be a good read!
Al Lee santo, I think you are onto a good thing there.
Roger Dawson Mike, I thought that McGraw Hill was going to put the book in the Fall catalog
Mike_Summey wood, that’s why I asked about using seller financing. If you have to always use bank financing, it is often difficult to get enough rent to make the properties cash flow.
Mac Mike, any suggestions on how to make an offer to a lady in her 70’s who initially wants all cash for a house, which is paid for. I asked her about owner financing, but she says she wants to be done with it (it’s her daughter’s estate) and move back to her home town.
Roger Dawson Wood, in Beijing if you buy an apartment, can you rent it out and do you have to pay homeowners association fees?
Mike_Summey Roger, I just found out Friday that they have delayed release until after the first of the year.
Mike_Summey Mac, she can be done with it by selling it to you and getting an income stream for the rest of her live.
santo Al, when i get my cash flow rolling, i hope to buy one or more of your new homes
deb I have read and read books galore, and I’m still missing this seller financing thing.
Mac Mike, I told her that, but she seems to think of it as rental. How can I make that point stronger.
Al Lee santo, I hope you do. You will be nicely diversified then. Geographically, at least.
Mike_Summey Mac, I’ve bought several that way. You don’t know what someone will do until you put a written offer and a check in front of them. Give here the asking price or a little more and ask for very low or zero % interest.
Mike_Summey deb, what don’t you understand?
Mac Mike, that might just work. Thanks.
wood Roger,I think it will be very easy to get it rented out.Sorry,I don’t know what is association fees.
Roger Dawson Mac, there are huge tax advantages to carrying back financing. If she gets all cash she has to pay tax on the total amount. If she carries back financing, she pays tax as she gets the money.
deb getting the owner to finance part of the mortgage
Roger Dawson Wood. Association fees in this country is a pool of money that all the apartment owners pay into each month to handle the overhead of running and maintaining the building.
santo Al, i always wanted to visit THE ALAMO, Davey Crockett is one of my american heroes
Al Lee santo, that is in San Antonio, not too far from here. 3-4 hour drive
Roger Dawson The Alamo is in San Antonio not Dallas . I know that and I’m a limey
Mac Roger, good point.
Mike_Summey deb, there are probably as many properties sold that are financed by owners as there are ones financed by banks. It is not uncommon to ask the seller to carry back part or all of the financing. The worst they can do is say NO and as Roger says, NO is nothing more than an interesting opening negotiating position.
Roger Dawson Well said Mike
wood Roger,yeah,one should pay for it.
deb Yes I get that. I just can’t seem to understand how to write up an offer with my terms and present it to the seller, without sounding like I have no clue! (because I don’t really)
Mike_Summey deb, I’ve asked for 100% seller financing, been declined, then asked for partial seller financing but lowered the price. Then I’ve had sellers come back and ask for the original deal.
Mike_Summey deb, get the Offer Generator program and let it do it for you. It even lets you print the offer letters ready for your signature and presentation to the sellers.
deb I’m to new at this, I don’t think people take me to serious
Bill L It sounds like Deb should maybe practice with a friend.
Mike_Summey deb, we were all new at one time. Don’t let that deter you. It’s better to make an offer or two that sounds like you don’t have a clue and learn from them than to go on through live without a clue.
deb This is true. I have no intentions of quitting. Just wish this stuff would come to me a little easier. Something just needs to click!
santo deb, i am new at this too, i started in jan. of this year and have 2 one family homes and will be closing soon on a two family home, stick with it
deb It seems I get everything all set in my mind, then boom it’s scrambled
Mike_Summey We will not have a chat on July 2nd and 9th. Roger & I will be attending the National Speakers Association convention in San Diego. We will chat next Monday and then be off until July 16th.
Mac Deb, if you just be yourself, you’ll come across as genuine. If you get a conversation going with the seller, it is much easier to continue. Even if you don’t know what to say (see my earlier post), you’ll have the door open for a next move.
Bill L Deb, You are a RE investor, you CAN do this! I sound this way becuase I am reading Napleon Hill’s book on the “Keys to Success”
Mike_Summey deb, action unscrambles it.
Al Lee santo, I end every radi show with “Without Action Your Dreams are Worth Nothing”. You sound like a poster boy for ACTION.
Al Lee tadio show
Al Lee radio
Mike_Summey keep trying Al, you’ll get it right eventually.
Al Lee I am not even drinking wine!
Bill L third time is the charm
santo AL thanks, but i still have a lot to learn
deb Maybe I should drink wine LO
Al Lee My typing gets better with wine. If YOU drink it, that is.
Mike_Summey Has anyone had any recent dealing with buying an REO property?
Mike_Summey Hi Ken
Ken Hi
Bill L REO?
deb Have tried to get ahold of some, but seems Ma banks don’t have them. Huh, go figure
Roger Dawson REO means real estate owned by banks
Bill L Thanks
Mike_Summey Bill, thats for Real Estate Owned by banks.
santo AL, i am 61 years old now and i wonder where i would be if i started 30 years ago
Roger Dawson They own it becuase they foreclosed on it.
deb We have a zillion foreclosures but no banks involved?
Al Lee santo, I am 61 years old now and I DID start 30 years ago (maybe a little more than 30)
Mike_Summey santo, no need to wonder. Yesterday is a cancelled check, tomorrow is a promisory note, today is the only cash you have, spend it wisely.
Al Lee Mike, that is pithy and prophetic. And sagatious.
Mike_Summey Huh?
Al Lee santo, I shudder to think where I would be if I hadn’t started.
Roger Dawson Sagatious means full of wisdom
santo Al, i must work very hard to catch up to you
deb Im 46 and I hope its not to late to get going
Penny Al I think Mike is an Aquarian! haha
Penny 
Al Lee liek a sage. or oracle.
Bill L RE information and Vocabuary Building at the same time…
Mac santo, I know agressive people who have done more in 18 months than many people get done in 10 years.
Al Lee santo, absolutely!
Mike_Summey Al, isn’t that sagacious?
Penny just trying to be cute Al. a play on the sagcious word.
Al Lee Mike, yes. I spelled it the British way for Roger/
santo mac thanks for the motivation
Mike_Summey santos, thats the best I could do since I’m not close enough to give you a kick in the pants. 
Al Lee deb, it is never too late. santo will be rich in a few years and he started at 61.
deb How does one manage all there properties when there not in your area?
Al Lee deb use a professional property management company. Licensed and insured!
Ken I”m 27 I can’t get motivated. mostly been working long hours and this thing called work
santo mike, i hope to have 25 properties in 5 years, that will be 50 rental units with two family homes
deb But doesnt that take away from your cash flow?
Al Lee deb, I think it improves yoru cash flow because of the ways a good manager can save you money.
Mike_Summey santo, I have a friend who waited until he was 60 to start even though I started talking to him when he was 45. By age 65, he had an annual income that topped $100,000 from his rentals.
Mike_Summey Hi lanlizer
Ken MY PM has saved me so much money because she knows the ropes and the contractors that will produce
lanlizer Hi
santo mike you think i can do as good
deb So would I be crazy to sell in ma? Should I hire a managment company and rent my 2 homes out and go to florida…HELP
Al Lee tradesmen knwo that if they overcahrge a proeprty manager they will lose hundreds of jobs, not just one. They are more likely to charge a fair price than they would be if you were managing a few ouf yrou own houses and hired them to do a job.
Mike_Summey santo, I see no reason why you can’t. We’re coming into what I think will be one of the best times ever to buy properties.
Ken Deb I am thinking of moving also. Fl is way out of the question for me. I always like Charleston SC
Ken I hate snow
Al Lee The collapse of the b-paper lenders (sub-prime lenders) is creating an explosion in the market for rental properties. ALl thos epeopel who can not now get those easy loans have to live soemwhere
Mike_Summey deb, I told you earlier, that’s a decision you have to make based on your comfort level. If you can find a good property manager that you trust I see no reason to sell. If you can’t you may want to sell and take the money with you and reinvest it in Florida.
deb I have had enough of the snow also. Why is Florida out of the question for you?
Ken Properties seem over rated in price, home owners insurance is sky high, my trade does not pay that much in FL
Mike_Summey I think the biggest problem in Florida right now is insurance.
deb Isn’t RE your trade?
Ken No, Electrician
Ken I will melt in the heat.
deb Well you won’t be for long if you get some RE going
Mike_Summey Ken, Charleston get just as hot as Florida.
Roger Dawson I loves you Porgy!
Al Lee I was in Las Vegas last week and I think it was 106 degrees F
Bill L And humid I hear…
Roger Dawson But its a dry heat
Mike_Summey I will report next Monday on how the auction I’m going to on Friday turns out. I’ve only been to a few auctions, but I’ve gotten some good deals at them.
Ken Yeah I know. Not sure what is worse being late in the game or 27 and lazy like me to get motivated
wood time to work now ,it is 8:51 am now
deb But its a dry heat
wood bye everyone
Roger Dawson Thanks Wood Good luck
deb bye wood
Bill L Bye Wood…
Mike_Summey Where wood is, it’s 8:51 Am tomorrow.
Bill L Good night all.
Ken night bill
Mike_Summey Goodnight Bill
deb Now Im wondering about the insurance in florida
oz g/night all… thanks for the ride.
santo mike ,how many rental units did have after 5 years
Mike_Summey goodnight oz, you were quiet tonight
Ken It’s high, but if you can afford it go for it. I personally dont’ like paying more than I like to. LOL if that makes sense
Mike_Summey santo, I had about 20.
Mac deb, I just talked to an investor who moved to NC from FL. The insurance co’s have raised rates because of all the hurricane losses.
oz yeah mike a bit tired…
Ken Mac I was in Raleigh last week on a few interviews. I can’t believe all the tress there
Al Lee Both insurance and property tax rates have gone down in Texas over the past few years.
Mac Ken, Raleigh is called Oak City
deb That will take a big chunck of profit from rents though
Ken Mac no doubt. it’s nice because you don’t see all the homes at once. You drive then Bam there is somthing
santo mike, your books gave me the incentive to shoot higher
Mike_Summey deb, you have to factor in the insurance when you make offers. That’s why I suggested that you get the Offer Generator. It prompts you to think about all the contingencies and not get caught forgetting something important.
Mike_Summey Thanks, santo. I’m glay you are enjoying them.
deb Yes maybe I should think about that
Mike_Summey deb, it’s the best $69.95 you’ll ever spend.
Roger Dawson Mike, I didn’t know you were glay!
deb lol
Roger Dawson Not that there’s anything wrong with that
Mike_Summey
Al Lee no homeopathic comments, Roger.
Mike_Summey Al, some comments don’t deserve a response.
Roger Dawson You missplelled homophobic
Al Lee 
Penny u guys r just all full of it tonight
Al Lee he started.
Penny I’m headed out. See you all next week.
Roger Dawson Bye Penny’
Mike_Summey Goodnight Penny
Al Lee goodnight
Penny :p
deb I have spent a small fortune already on books and cd’s you name
Mac deb, aha! then you do have a clue! Keep it up.
Roger Dawson I need to run. I’ll see you next week
Al Lee I need to go, too. Goodnight all
deb Goodnight
Mike_Summey deb, you can’t have spent a small fortune on our products. You can buy every Weekend Millionaire product we have for less than $250. Some real estate programs cost ten times that an more.
deb Yeah I have a clue, just can’t seem to implement anything yet
Ken Deb I can say I am 100% happy with the offer generater and the CD combo. It’s nice to listen to in the car
deb I have yours and sorry to say everone elses too!
Ken Deb I am in the same boat. I get side tracked easy.
deb Yeah, it’s like I get all confused when the time comes
Mike_Summey deb, you have to make the decision to start. As they say, you can lead a horse to water, but you can’t make him drink. You can read every real estate book on the market, buy every audio and computer program, attend seminars, boot camps, etc. but until you act you might as well not do any of it.
Mike_Summey Ken, tell Deb what the Offer Generator does. It take the guess work out of making offers.
Mac deb, Mike’s right. You’ll find it’s much easier than you think. The hardest part is taking the first step. It’s like going off the high dive at the pool. It looks much scarier than it really is.
Mike_Summey Well, I’ve got to run. See you here next week with a report on how the Friday auction goes.
Mike_Summey Goodnight all.
santo mike, i thought that saying was you can lead a horse to water but you can’t make him take a bath
Ken Mike it does, and you can store the information for use later just incase the owner changes their mind. I spent hours and hours trying to do the same thing with excel. At first I was thinking it was to much money but it’s well worth it.
Ken night mike
Mac Night all.
deb maybe I’ll try it. One more for my collection
Ken lol
Ken it’s worth it. once you plug the numbers in you will be thinking no way I can get a property for that amount. but I have
Ken well worth it, do you have their CDS
deb If you saw my house you’d think some real estate tycoon lived here LOL
Ken lol maybe you don’t need them then
Ken did you get my PM?
deb I just need that first deal to get me up and running, I need to get over the fear of rejection
Ken don’t rush it, I just lost $500 and my time on a property. I bought for a rental that needed up dated but I just got a job traveling and i never got around to fixing it up so I sold it
deb I saw it on my screen but clicked send on the chat room button and it disappeared
Ken oh, well www.biggerpockets.com is a good website. not sure if you can post that here or not
Ken My name is Mach on that site.
Ken I got to jet, good luck.
deb Thanks Ken
deb Have a good night
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