Chat Transcript June 25, 2007 - With Bank President Dwayne Wiseman
Posted on June 26, 2007
Bill L Hi santo
santo hi,bill l
Bill L I am looking forward to tonights chat, how about you?
Bill L Hi Wood!
wood Hi Bill L
santo bill, i am looking at a 3fam, for $69,900 total rents $1500
Bill L ANy work needed?
wood It is early ,and only we three
Bill L Hi Dwayne, welcome.
Dwayne Wiseman Hello Bill
Bill L I am in Manassas Va
Dwayne Wiseman Where is that near?
santo bill, my broker is trying to get the price to $65,000, no work needed, already rented
Bill L About 30 miles outside of DC, in Northern VA
Bill L Santo that is great….
Bill L Hi Mac Hi eplessin42
Mac Hi Mike
Bill L Mike
wood Hi Dwayne Wiseman ,I come from China
Mike_Summey Hi everyone
Mac Hi Bill
santo bill, the last house he knocked down from $48,900 to $42,000
eplessin42 Hi, everyone
santo hi mike
Bill L You go Santo….
Mike_Summey I don’t think Roger is going to be able to join us tonight.
Mike_Summey Hi Dwayne, I see youmade it.
Mike_Summey Hi Pete
Mike_Summey Hi Penny
Dwayne Wiseman Wood, Mike told me about you Glad your in early.
Pete Hi Mike
Bill L hi penny
Mike_Summey Hi Ken
Ken Hey
Penny Hi Mike
Dwayne Wiseman I am in ready for any questions.
wood Dwayne.A lot of things are new to me,and I just want to learn it.
santo dwayne, is the loan process any different for a 3fam and a 4fam
Bill L What should I present to a bank so that they will lend me money?
Dwayne Wiseman Santo, could you clarify just a little?
Mike_Summey Hey everyone! I got the greatest quote for the special assets manager at a large bank. He said “You wouldn’t believe the number of people over the years who have come into my office wanting to buy our foreclosures and their fingers were still orange from the Cheetos they were eating the night before when they watched that late night infomercial.” 
Mike_Summey Hi Shane
shane_Ky Hi Mike
Mike_Summey Shane, where have you been. You haven’t been in a chat for a while.
santo Dwayne, do you need more money down for a 4fam than a 3fam
Dwayne Wiseman Wood is the economy in China still strong?
Ken mike no doubt. It is hard as heck to get the asset manager to talk.
shane_Ky Trying to close on another deal. this one was tricky, Hud loan
Mike_Summey I had an interesting experience this morning. I talked with another Mike Summey on the phone.
Mike_Summey Ken, my article this coming Friday will be about buying foreclosures. That’s why I was interviewing special asset managers at banks.
wood Dwayne, yes I think so.and the stock market is prospective too.
Dwayne Wiseman Santo, Not sure what your abbreviations mean 4fam or 3fam. Could you clarifyfor me and I will answer?
Mike_Summey Penny, didn’t you buy some Chinese stock recently?
santo Dwayne, 3 units or 4 units
jacepharm@gmail.com Hello Mike and Roger
Mike_Summey HI Jace
Mike_Summey Hi Newbie
newbie Hi Mike
Mike_Summey Hi Sparky
sparky37 Hi Mike
Bill L Dwayne, what impresses banks when appling for a loan?
sparky37 had some trouble getting in tonight
Mike_Summey Sparky, what was the problem?
shane_Ky What ratio (80/20-85/15 can one expect in a refinance and still get good rates
sparky37 kep trying to load the chat and was coming back busy
Mike_Summey Sparky, sorry! never heard of that before.
Penny yes Mike
Dwayne Wiseman Santo, no it doesn’t matter in NC whether is 3 or 4 Family. Generally 15- to 20%.:) 
sparky37 me neither
jacepharm@gmail.com Mike, FYI I am close to put a deal to buy an 8 unit property in NOrthern NJ where I am getting the seller to hold a note for 150K. In my area multi units are very common as its in an urban area that is heavily populated….
Mike_Summey Dwayne, why don’t you comment on the importance of building cash reserves before you start investing.
Mike_Summey Hi Steve
steve_nm hi
jacepharm@gmail.com Hello Dwayne
Pete Dwayne, what about Bill L’s question regarding what impresses banks the most when applying for a loan?
Dwayne Wiseman Shane, Ky 15 year rates are around 6.25% to 6.50% on conforming loans. Mike, will tell you I don’t agree with 100% financing as he doesnot either.
Mike_Summey Jace, multi family are good, we just don’t recommend them for people getting started as they have a number of additional things to consider that you don’t have with singel family homes.
wood Mike,it seem if you invest,it will take years to get loan payed off,right?just too long.
jacepharm@gmail.com Mike I already own 8 multifamily bldgs…I have been busy last several years:-)
Dwayne Wiseman Mike, is right. I believe cash reserves are king and I believe every investor should have them. As indicated above, I don’t like 100% financing loans as eventually they lead to trouble.
shane_Ky My proml;em is I have to in March 22008 do a refi on 96 units and need to cover that we only have one vacancy
Ken Dwayne do you mean 100% of appraised value?
Mike_Summey wood, that is correct. In this country loans are made for 15-30 years, but if you invest properly, the rents from your tenants will pay the loan payments. Over time you tenants buy the properties for you.
santo mike, before you logged in i was telling bill L about a 3family my broker has for $69,900, total rents $1500. already rented, he is trying to get the price down to $65,000. the last one he got down to $42,000 from $48,000
Mike_Summey Jace, I know you’ve been at it for a while. I said that for the benefit of those who are just starting.
newbie Dwayne, is it even possible to new investor to find loan with interest rate below market rate? or is it only possible once I have a good portfolio?
Mike_Summey Mikef
mikef Hi all!
Dwayne Wiseman Pete and Bill, Banks like to complete acurate financial information. A listing of all assets with the cost, current market value and the liabilities with the payment amounts included.
Mike_Summey Hi Dennis
Dennis Hello
sparky37 Dwayne r u a direct lender or do you wholesale for the major banks?
Mike_Summey Dwayne, you’re free to comment on the financial information I used to provide you although we don’t have any business right now.
Mike_Summey Hi KK
kk hi Mike, hi everyone, Kevin out in Colorado, sorry I’m late.
Mike_Summey Sparky, Dwayne is a bank president. Hi bank makes direct loans.
shane_Ky Dwayne, was that KY rates for commercial multi familty as well
newbie Mike, do you recommend flipping as a start to get some capital? I live in san jose and it’s tough to get started. I’m thinking maybe flipping to get some cash would be something I need to consider. What’s ur thought?
sparky37 Dwayne do you lend in all 50 states?
Dwayne Wiseman Ken, no cost or appraised value. Banks like to see the investor have some capital injected into the project.
Mike_Summey Newbie, I don’t recommend flipping, but I won’t tell you not to either. What’s important is to know that flipping is speculating, not investing and you can get burned just as easily as you can build cash.
wood Mike,it seems that if you pay the loan for a longer time,it will be easier get cash flow?
Dwayne Wiseman Shane, Commerical Loans are generally tied to Wall Street Journal Prime Rate which is currently 8.25%. So generally prime + 1/2% to 1% is the going rate.
jacepharm@gmail.com Mike, Im still a amateur at this…I get all my training from you and your books and these chats…Even on those days I cant attend I read the posted transcripts.
Mac Mike, last week you gave me a suggestion for making an offer to a woman in her 70’s. I sent her an offer letter at full asking price with no interest, generated by the Offer Generator and modified to add a comment that she would be free of the property responsibility if she sold it to me with seller financing. I’ve heard nothing. Do you find it better to follow up verbally or in writing, for example to generate another offer and send it to her?
Dwayne Wiseman Sparky 37, No just NC and SC.
Mike_Summey Dwayne, maybe I shouldn’t bring this up here, but what do you think of financing 100% of cost, not to exceed 70% of appraised value.
mikef Do you offer small balance commercial loans? Under 100K
Dwayne Wiseman Sure all of our loans are secured by real estate.
Mike_Summey Mac, give here time to think it over. At 70 years old people don’t move as fast as they do at 30.
Mike_Summey Hi freebird
santo Dwayne, after your first loan, does the bank want all that info again, or does the process go faster the second time.
mikef wow, great..this product is hard to find. Not many lenders offer this
Dwayne Wiseman Mike,
jacepharm@gmail.com Dwayne, I have a property that I just made an offer and the bank wants more of a down payment from 20% to almost 40% because of cash flow. Is that typical?
mikef yes
Mike_Summey mikef, which product are you talking about?
Ken Dwayne Mike , as you build cash reserves where would you recommend putting those reserves? I currently have a money market getting 4% for personal use. My rental checking is basically getting no interest. The bank wants to charge me for another money market. Would you think the best way is to open another money market at another bank or investment company and just transfer funds? I just hate not making interest on money just sitting there.
mikef Small balance commercial -Under 100K
freebird Dwayne, I am looking t multis. Would your bank do the loan if there is a property that is cashflowing and the owner caries a second for 20%?
mikef OO
Mike_Summey Hi Justin
freebird what states do you do loans in?
Dwayne Wiseman Mike, as you know the real estate values can change quickly. They can depreicate as quickly as they appreciated. Cash and Capital are always best to have and if your investing you should have something in it.
Mike_Summey Ken, I deal with 7 banks and keep reserve funds in each one. I have my operating account at one bank, but I keep deposits with all of the banks who finance for me.
Mike_Summey Hi Mark
mikef this is for refinance - not purchase
Dwayne Wiseman Santo, I would say a little quicker. We keep for the most part all of our loans in house. The conforming loans (1-4 residential) are out sourced.
Ken Mike are those all small banks with 10 or less branch offices?
mark Hi. I’m not getting audio, is there anything I can do?
freebird sorry. what are these reserve funds for? to cover the monthly expenses and negative cashflow
Mike_Summey Mark, there is no audio. This is a text chat. Do you need help?
mark No, that’s fine, thanks.
mikef these are direct lenders
Mike_Summey Ken, most of the banks I deal with are large regional or national banks. I’ve done business with Dwayne’s bank in the past, but I don’t have anything with them right now.
Ken Freebird yes, once you get some cash in the bank from your rentals once it get so high it would be nice to make some interest on them
santo mike, my broker has a 3 family for $69,900 but is trying to get the price down to $65,000 total rents $1500 already rented, the last one he did was $48,900 down to $42,000
Mike_Summey mikef, yes, all of the banks I deal with are direct lenders.
Dwayne Wiseman Freebird, we have structured some loans way but only if the borrower has evidence of cash reserves, carrrying power and excellent credit.
Mike_Summey santo, sounds good to me.
mikef ok..thanks!
Dwayne Wiseman Santo, ? why do you use a broker instead of a Bank?
newbie mike, I hesitate to do flipping as well. What other states you think I should consider?
Mike_Summey Dwayne, I think he is buying from a broker, not using a loan broker, right Santo?
freebird so if the borrower can show proof of some funds, credit etc would you do a deal for 80%of the value while the owner carries the 20%
Dwayne Wiseman Santo, you may have meant real estate broker. Sorry if I got them confused.
santo mike right
mikef i’m finding small commercial lenders wont do OO, only NOO
Bill L OO? and NOO? I don;t understand.
Mike_Summey everyone, my experience is that the stronger you become financially and the more experience you get as an investor the more flexible banks become. Would you agree with that Dwayne?
mikef sorry
mikef owner occupied , Non owner occupied
Bill L Thanks
freebird yes. What states are you guys in
mikef sure!
newbie mike, do we only need to build cash reserve for the first house, and then count on its equity to purchase the 2nd one?
Mike_Summey When I first started, I practically had to get down on my knees and beg for a loan. Today, the banks call me and want to know if I need any money.
Dwayne Wiseman Freebird, yes contingent on other underwriting criteria. We would also look to see the date when the propery last changed hands and for how much and to make sure it was not over valued. FYI, very seldom have I seen the 2nd mortgage holder step up and pay off the 1st mortgage when the 1st was in foreclsoure.
santo mike, my real estate broker in buffalo comes from a area not far from where i live, we have a lot in common being from nyc, he has 29 multi units in buffalo
Dwayne Wiseman Mike, yes I agree. Wow good crowd of folks and questions…………
Mike_Summey newbie, you should increase your cash reserves each time you add a property. Treat the cash reserves as if they don’t exist. I have reserve accounts that have simply been earning interest for years with no other activity in them. They give me and my banks the security of knowing that I will be able to pay my loans no matter what happens in the market.
sparky37 santo do u have a pm in buffalo?
shane_Ky Mike, on the current 72 unit that I am buying, Iam using most of my cash reserves but I have good cash flow from the other 278 units, what do you think, am I bieng to risky.
Dwayne Wiseman Freebird, NC and SC.
santo sparky37 what is a pm
sparky37 property manager
newbie thanks mike. I gotta leave now, will join again next time.
Mike_Summey Freebird, if you’re trying to get 100% financing, you would have much better luck getting a 30-60% first mortage from a bank and using 40-70% owner financing.
santo sparky, yes
Mike_Summey Hi ghess
ghess hi mike
sparky37 santo and you are cash flow positive with paying your pm
santo sparky, yes
sparky37 awesome
Mike_Summey sparky, if you can’t pay a property manager and still have cash flow, you paid too much for the property.
sparky37 i agree, i just know rent in buffalo is very low
ghess mike: this is my first time being able to join the chat. i have read your books and am currently in the process of looking for my first property. just here to read and glean some more!
Mac Dwayne, could you give us your contact info? At least the phone number and a contact at your bank?
eplessin42 What is the average cost paid to a property manager?
Mike_Summey ghess, welcome to the chat. We’re all friends here, so jump in at any time if you have a question.
ghess thanks
Dwayne Wiseman Blue Ridge Savings Bank. Gil Walden 828-285-2214. He is an excellent commerical lender.
Mike_Summey eplessin42, property managers usually run between 6-12% of rents collected.
Dwayne Wiseman Mac, my email address is Dwayne@blueridgesavings.com 828-285-2209.
eplessin42 thanks Mike
Mac eplessin42, I’m paying 8% in Raleigh and 6% in Rocky Mount. Some Raleigh pm’s charge 10%
mikef I am looking for a residential property manager in queens, ny!
Dwayne Wiseman Mac, Do you have anything in Wilson or Tarboro>
Mike_Summey Mac, property managers are like real estate agents, they’ll charge as much as you let them. If you are getting full service at 6-8% you’re doing fine. Keep in mind that they have to eat too.
Mac Nope.
Dennis Dwayne do you have any banks in Va?
mikef what is the minimum credit score needed to secure a bank loan?
Mike_Summey mikef, have you read our real estate book?
Dwayne Wiseman Mac, Just curious. I use to live in Rocky Mt. and Tarboro.
Dwayne Wiseman Dennis, No.
Dennis ok thanks
mikef yes, I read it once…BUT
Bill L Dennis, where in VA?
Mac Dwayne, I keep my eyes open, but so far nothing in either community has really appealed to me. I think Wilson is up-and-coming.
Dennis Abingdon
mikef i mostly keep going back to the chapter that deals with buying the property right
Mike_Summey I asked Dwayne to join us tonight to give you some straight answers about financing investment properties. It’s often hard to get an officer of one of the major banks to do that.
Bob (vegas) Hello everyone
Mike_Summey HI Bob
Dwayne Wiseman Mikef, It depends. A 550 Beacon with good collateral (LTV 50% or less) can get a loan; however, 81% of loans this year have a Beacon 670 or higher.
Bill L Me, Manassas.
Mike_Summey Dennis, Abingdon is where I was born and where I graduated from high school.
freebird mike, would I have better luck if I get a 40-60% 1st and rest in 2nd? I am trying to find people who would carry 20%. Lot of them are not interested. How are you able to get people to carry 40-60% 2nd.
mikef see, I hear different things. Banks are using Beacon? I thought most of them use the FICo
santo mike, what would you do with this, buy two 2 fam with $800 in rents, total, $1600, or one four fam with total rents of $1500. the two fam price is $45,000 each, the four fam is $60,000
Dwayne Wiseman Mac, Wilson seems to be making the turn after BB&T moved its HQ to WS.
wood Mike ,gonna work ,bye for now
Dennis Me too
wood bye Dwayne ,see you later
Mike_Summey freebird, more properties are financed by sellers than by banks. Many sellers don’t want or need all the cash at closing.
Mike_Summey santo, it depends on how much common area maintenance and utilities are involved with the 4 family
eplessin42 Mike are you talking about sellers of muti units or singles?
mikef very difficult buying single family homes in NYC and getting the numbers to work..
freebird so, you would be looking for motivated sellers? can you show me an example deal so that I understand how
freebird mike
Mike_Summey eplessin42, I’m talking about real estate in general.
santo hi Al
Dwayne Wiseman Hello, Al.
Mike_Summey There’s Al Lee! Where ya been tonight Al?
Al Lee Hey, you started the party without me!
Bill L Hi Al
Al Lee Hi Dwayne, Mike
Dennis Mike when where you last in Abingdon?
Al Lee Bob in Vegas, hello
Mike_Summey Dennis, I spoke to the graduating seniors at Abingdon High school last year.
Al Lee Mike, I was tied up with “stuff”, but made it here before it was all over
mikef AL, I think I need to invest in one of your properties in dallas/fort worth where I can get the numbers to work!
Dennis Thats great
Al Lee mikef, I recommend it. Go to www.buyRenthouse.net and click on the Contac link
Mike_Summey Dennis, how long have you been in Abingdon?
freebird anyone here specializing in multi units. Looking for someone to ask questions
Al Lee Contact
Mike_Summey freebird, I may be able to help you.
mikef I know, I have been all over that site! great audios!
freebird mike, can you show me an example of how you do the 40-60 first and the rest owner carry
Al Lee I keep getting more and more positive data about our DFW area. National City Cortp has us rated at nearly 25% undervalued now. In spite of good appreciation last year
mikef I have been replaying them over and over
Dennis Mike Most of my life 48 yrs.
santo mike , the common area maintenece would add up to the same, two 2fam and one 4fam, yes or no
freebird mike, i am looking to do multi deals no money down. HOw do I get in touch with you with my questions. I believe I can buy multis no money down. In the process of talking to realtors/sellers
mikef Dwayne, Do you do loans in NY? I think I saw someone or yourself type NC and SC only…True?
ghess has anyone had experience buying bank owned properties?
Al Lee mikef, what I think is important, too, is that you can get the numbers to work using the safest, long-term, fixed-rate financing available. No balloons. No ARMs. No negative Am’s
Dwayne Wiseman Mikef, I am sorry just NC and SC.
mikef Yes, AL! only 30 year fixed for me
freebird Al, is there still cashflow in Dallas. North of DFW and east texas
Mike_Summey freebird, it’s simple. You offer the seller cash for the amount you plan to get from a bank and ask them to carry the balance on a note subordinated to the banks loan. It’s not as difficult as you may think, especially if the seller has a very small mortgage on none at all. The sellers are not putting themselves at that much risk as they get the cash from the bank loan and in a worst case scenario can give it back to get rid of the bank. Even if they use it to pay off a first mortgage, they can remortgage the property, pay off the bank and still be in the same position they were before the sale.
Al Lee Dwayne, I wish you could loan into Texas. I could give you plenty of business here.
shane_Ky Thanks, guys, got to go
mikef thanks!
Dwayne Wiseman ghess, I have sold some. Mike S. is the best at buying REO.
Mike_Summey freebird, I here almost every Monday evening in the chat.
Dwayne Wiseman I know sounds like your doing sticking to game and doing well.
freebird Mike, I am looking to market to these owners of multis. Most of the realtors are not open to this. Do you know who has a list of the multi owners.
Al Lee freebird, North of here you might do OK, but you would be missing out on being in the hottest growth area in the state, DFW. I own one property East of here and it does OK, but it is a very different market. You have to be very carful to pick the right area to get reliable rents and good appreciation
Mike_Summey freebird, no I’m not aware of any such lists.
freebird Mike, thank you. I will jot down those questions and ask them during the chats on monday
Penny goodnight everyone
freebird mike, what is the best way to find these properties? Most of the realtor listings, I am not getting a good response.
Mac freebird, you might want to try your county tax office. Their IT staff may be able to pull such a list for you for a nominal charge.
Dwayne Wiseman Mike can you assist Ghess about buying bank owned property?
Mike_Summey freebird, the reason we host the chats is to give our readers access to us with their questions. You welcome to participate any time.
santo mike, how does that old saying go, you can lead a horse to water, but you can’t make him take a bath
freebird Mac,I called them and they dont provide any such list
Al Lee Mikef, balloon notes and negative amortizations are very dangerous to an investor unless you have lots of cash lying around so you can pay off the note if it gets unprofitable.
Mac freebird, talk to the IT department, not the clerks who answer the main phone.
ghess Dwayne, this might be better suited for you. I recently inquired about a REO property. When I got the terms from the bank, they were so heavily in terms of the selller. I know this is somewhat typical, but there is a clause that stated “no bill of sale” is given at close. My realtor is concerned about the laundry list of terms.
freebird Thanks Mac. Let me give that a shot
Mike_Summey ghess, I have an article that will run next Friday on buying bank owned properties.
Dwayne Wiseman Ghess which state are you in?
ghess Illinois
Mike_Summey ghess, you can find it Friday morning at www.citizen-times.com
ghess great - I will look for it Mike.
Dwayne Wiseman Ghess each state is different.
freebird What is the best way to find these multis with flexible owners? Any ideas
freebird I have all these questions that I am trying to get out of my way so that I can go ahead with buying good properties.
Dwayne Wiseman Ghess on the property you are considering buying from the Bank you need to have it where it is favorable to you and always have a contingency plan and cahs reserves for unexpected repairs/improvements.
Mike_Summey In the article I say, “Banks are in the business of renting money not properties. They want to dispose of foreclosures as quickly as possible, but they aren’t going to give them away.”
ghess in Chicago, most of the wholesale prices i have been finding seem to be REO. there is high foreclosure here right now, and single fam property in the city is pretty expensive.
Dwayne Wiseman Mike, is right!!!!!!summey
Mike_Summey freebird, why don’t you go down to your local courthouse and ask for help in the records room. Every one I’ve been in have staff members more than will ing to help you and show you how to find what you’re looking for.
Mike_Summey Hi SWTB
mikef Dwayne, what is the most important criteria for deciding whether to approve a loan (if you could pin it down to 1 thing)
jacepharm@gmail.com Mike, I have a great relationship with my bank do you think by just asking them for foreclosures they will provide me with a list
ghess sorry dwayne/mike. i got your last message.
Dwayne Wiseman Mikef, you can’t pin it down to one thing.
freebird Mike, thank you . I will check that out
Al Lee I believe that in Texas banks are required to list their REO and not make private deals to sell. I think this is a new regulation. Is that true everywher, Dwayne?
Mike_Summey Dwayne, would you agree that most banks want to see an investor go through both the ups and downs of a real estate cycle before they truly start to build confidence in them.
Dwayne Wiseman jacepharm, take time to establish a relationship with the asset manager at your bank. You wouldn’t beleive all the calls we get during a day.
santo nite, everyone
Mike_Summey Goodnight santo
Al Lee goodnight, santo
Bill L nite santo
mikef what takes precedence? FICO? small LTV? credit history, job length?
Mike_Summey Al, the banks can make private deals, but they will want to document that they are arms length transactions.
freebird Al, do you target owners of Multis and buy from them. Do you work with realtors also?
jacepharm@gmail.com Thanks Dwayne…I will do so
Dwayne Wiseman Mike, yes remeber the 5 Cs of Credit. Character is number 1 and seasoning proves your point. We have a saying you so and so borrwer will do what ever ittakes to pay you back both in the good times and the bad times.
Mike_Summey We will not have a chat for the next two weeks as both Roger and I will be travelling.
Mike_Summey Next chat will be July 16th.
Al Lee freebird, I often work with Realtors. I do not buy multi-family as I think single=family is better
ghess Mike, in a place like Chicago where single family homes are expensive, would you rec. staying in the city and fishing for REO or venturing outisde of the area i know (suburbs) in hopes of finding the bread and butter properties?
Dwayne Wiseman jacepharm, time well spent but they know you are a serious buyer and they will take more time with you. They know you will not buy every property but at least you will be in the loop.
Mike_Summey ghess, find where the blue collar workers live. That is usually a good place to start because many of them rent.
Al Lee freebird, multi-family is much more volatile. Commerical property is even more volatile.
sparky37 night all
jacepharm@gmail.com Thanks Dwayne…. I will start making some calls tomorrow….
Al Lee I think that a stable, consistent producer is a better investment for the newcomer, but also for most experienced investors.
Dwayne Wiseman Mike, very active group and good questions.
justin what is the best way to get comps if you dont have access to MLS?
Bill L Thank You Gwayne
Bill L Dwayne, sorry
Mike_Summey Dwayn, tell everyone how long it took for me to buy the last foreclosure I bought from you. That might help the newbie to understand what banks look for when selling REO properties.
Al Lee justin, let you property manger get the comps. they do have access to MLS
Bob (vegas) Hey Al you guys getting lots of rain?
Dwayne Wiseman Mike, you mean the bird in the hand storey with asset manager?
freebird All of you have been so helpful . Thank you
Al Lee Bob, it rains nearly every day. It is slowing down construction work.
justin Thanks. Al. how about in the instance of a new purchase?
freebird Mike, thank you and I will chat again with more questions
jacepharm@gmail.com DWayne I want to hear that one
Al Lee justin, same thing.
freebird Thanks Al
Dwayne Wiseman Al, how many properties do you have now?
freebird Good night every one
Bob (vegas) Thats what I hear
Mike_Summey Dwayne, I want to thank you for joining us tonight. You’ve been very helpful, but if you need to run we understand. We only promise to go until 9:00 but occasionally we run over a bit.
Mike_Summey Dwayne, yes.
Al Lee I have 3 dozen SFHs and a some comercial properties
jacepharm@gmail.com Please dont leave before telling the foreclosure story
Al Lee I also have 21 SFH that I am building, mostly to sell, but I might keep a couple fo rmyself, too.
justin Al, what do you think of interest only loans? Can you described how they work? Can you get a no down payment interest only loan?
ghess Mike, will you be speaking at any of Terry Weaver’s conferences this fall?
Mike_Summey ghess, I don’t know. He hasn’t asked me so far. I spoke at the ACES conference in February.
Al Lee justin, I use I/O loans all the time. I have about 20 currently myself. I think it is a fantastic deal for a money-wise investor. I don’t do no money down because I get better rates and terms with 20% down.
Mike_Summey ghess, were you at that meeting.
Dwayne Wiseman Mike, purchased an REO from our Bank after discussing with our asset managerthe two single family homes in a depressed neighborhood. We had very little activity and Mike ran the numbers verbally in the car (both were rented) and he told the asset manager the price. The asset manager said we can’t take that. I said (asset manager) a bird in the hand is better than one in the bush and Mike closed in 2 days. I believe he still has the properties. Is this correct Mike?
ghess I wasn’t - but Terry’s son Jason is about to be my brother in law in two weeks!
Al Lee justin, if yo ugo to my webstites I have articles and recorded radio programs in which I discuss loans, interest-only, ARMs, negative amortization, etc. etc. www.RentHouses.org
Mike_Summey Dwayne, you know I still have them. I’ve never sold anything I’ve ever bought. I’ve even raised the rent since I bought them.
jacepharm@gmail.com Awesome! Thanks Dwayne and Mike…Im calling my bank tomorrow
Mike_Summey ghess, Jason is a nice young man. Congratulations. Did you hear about me from Terry or Jason?
Bill L Thanks Dwayne, Mike, it has been a great chat…
Dwayne Wiseman Thanks everyone. Sorry for the typos. Have a good evening. Mike please aske me to come back sooner next time. Good luck investing all…………..
ghess from my dad, Tim Hess — he was there with Jason. not sure if you met.
Al Lee Goodnight, dwayne
jacepharm@gmail.com Thanks Dwayne you have been insightful;
Mike_Summey Dwayne, you know you’re welcome any time.
ghess thanks dwayne.
Mike_Summey Hi altopion
jacepharm@gmail.com Mike quick question
Mike_Summey Your a bit late, the chat is about over tonight.
freebird Good night every one
Mac Dwayne, thanks for a great chat tonight.
kk Dwayne, thanks for all the advice! Kevin
Mike_Summey Goodnight Dwayne, Thanks again for joining us.
altoption sorry, just landed! maybe next time!
Dwayne Wiseman Good night all. You all are welcome.
jacepharm@gmail.com Would you ever consider have a service where we can send you some deals and you tell us if were looking at the numbers correctly or give us different ideas on how to structure?
Al Lee Altoption, where are you geographically?
jacepharm@gmail.com Ok Ill save it for next time
altoption n.c.
Mike_Summey I’ve got to run also. See everyone here JUly 16th. Until then, happy investing!
jacepharm@gmail.com Good night mIke and All
ghess Thanks for the help mike.
Al Lee Goodnight, jace
kk Good night, Mike, thanks! Kevin
Dennis Gnite
Bill L jacepharm, I am interest in that also.
jacepharm@gmail.com Good night Al
Bill L talk to you all in two weeks, Happy 4th.
altoption well i guess it’s goodnight to all!
jacepharm@gmail.com Bill L, I think that would be a great service
Al Lee altoption, Oh, I thought you might be in a different time zone (as I am) and that is why you logged in now
steve_nm goodnight all.
jacepharm@gmail.com for us beginners
Al Lee goodnight, jace
altoption no, just got in from the airport!
Al Lee see, steve is probably in New Mexico, where is is earlier than in NC
altoption bye!
justin al, what do you think of just interest only loans with no down? Is it bad idea, or you wont get a good deal.
Al Lee Mike had to go, but i HAVE A FEW MINUTES if you want to discuss somethng
Al Lee justin, I think it is risky because your debt service will be high and it will be hard to get positive cash flow. If you can gt positive with that loan, fine, though.
Al Lee You want to avoid negative cash flow for a long list of reasons.
justin i’m in san antonio, there is new construction every where. is this a good market?
Bob (vegas) just closed on a duplex in Killeen
Al Lee I I have never been able to buy cheaply enough to get positive cash flow in SA with the rent levels there. Rents are lower than in Dallas and prices are higher.
Al Lee Bob, I knoew you were working on that deal
Al Lee YOu have to look at the price/rent ratio.
justin what if i live in the house for a year or so.
Al Lee justin, that would give you a better loan rate, but you still have to compute if it will cash flow at market rents.
Bob (vegas) had to hold 3000 in escrow waiting on dirt work completion
Al Lee Bob, was that to satisfy the lender?
Bob (vegas) me
Bob (vegas) the builder said rain had been a problem
Al Lee Rain is a big problem to builder. Believe me, I know.
Bob (vegas) he didnt want to put sod
Al Lee This rain will end some day, though
Bob (vegas) I hope
Bob (vegas) gotta run
Bob (vegas) nice night
Al Lee Goodnight, Bob
Al Lee justin, anything else I can answer fo ryou?
justin al, do you flip houses?
Al Lee Are you currently an investor?
justin i have one rent house and one that i live in
Al Lee I build houses designed for rental and sell them. I also own a few dozen rent houses myself.
Al Lee go to www.buyRentHouse.net and you will see the houses I build.
justin the one i live in appreciated about 20K… so, i’m thinking about putting it on the rental list.
Al Lee I also have a book at www.myRentProperty.com and do a radi show on real estate investing.
Al Lee radio
justin i’ve logged in …. read thru some materials.
justin before.
Al Lee jsutin, that is not a bad move.
Al Lee If you hom is too expensive, though, it might not be a good rental house.
justin it’s been hard for me to get that third house.
Al Lee your home
Al Lee you are off to a good start. The third house will happen.
justin in my neigborhood, i have other investors from CA that have rentals.
Al Lee how much rent do you have to get to make positive cash flow?
justin that’s why i was thinking moving closer to downton where theprice will go up
Al Lee are you looking for a no-money-down deal or do you have down payment money?
justin on the one rental.. i have cash flow of 200
Al Lee How much rent woudl you need on the one you live in?
justin i have money, but i dont like using it. but, i could be convinced to let some go
justin well, 1200 -1300.
Al Lee that sounds like reasonable rent that you shoudl be able to get without too much strain.
justin that’s what i’ve seen others listed, but havent actively tried to list it.
Al Lee I have a call and need to run now
justin should go for the house in downtown which could be like $200 or a house that is $80K
justin ok… thanks for sticking around.
deb OOPS missed the chat tonight. How was it?
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