Chat Transcript - August 13, 2007
Posted on August 14, 2007
BB hello? Are we early?
santo yes we are
BB ok, that’s good. I;ve made an effort to make this chat session and my clock is set ahead of time.
santo it starts at 8:00 p.m. est.
BB It’s almost 7pm here (cst)
santo is this your first time
BB yes, it is
BB and yours?
santo i’ts very interesting
santo no my tenth time
BB Then this is something to really look forward to and make a part of my scheduling
BB Are there many participants from what you’ve seen?
santo yes you will like it
BB I see
BB Who’s the moderator?
santo you, if you talk a lot
Al Lee HI
santo hi al
Al Lee you are here early this week
BB Well, I don’t so that settles that. Hi Al….
Al Lee I logged in early so I woudl not get distracted onto somethign else and forget :/
santo teh early bird catches the best rate
Al Lee HI, BB
Al Lee I am going to go get myself a cup of tea or coffee. BRB :}
Tina Hello All
Scott44544 Hello
Al Lee I’m Baaaaaaaak!
santo letting the smoke clear after my 6 month assault on buffalo ny, 6 properties– 12 units
Al Lee Where are:( Mike and Roger?
Al Lee santo, are all your properties doing well?
Al Lee Hi, Mike
Mike_Summey Hello everyone!
BB hi
eryk76 hello mike
Fred Hi Mike
santo AL better than well
Scott44544 Hello
Tina Hello
santo hi mike
Mike_Summey Roger Dawson will be along shortly.
Al Lee Occupancy rates are moving up overall because of the credit crunch
Mike_Summey There he is!!!
santo roger, welcome back
Mike_Summey Hi Tina, Scott, Fred erykl, BB & santo
Roger Dawson Thank you Santo. Hi Everyone!
Fred Hello Roger
Mike_Summey Did I miss anyone?
BB Hi Roger
Mike_Summey Al, my occupancy is the best it ahs been in 4 years.
Al Lee Roger, do you bring a lot of Pepto-Bismol and Immodium on those trips? That is whay my doctor advised many years ago.
Mike_Summey Any questions tonight?
Roger Dawson Al, I used not to worry about what I ate until I got deadly sick in Mexico City. Thought I was going to die. Now I’m a lot more cautious.
Mike_Summey Hi Daisy
Al Lee Yep, I am at 100% occupancy except for two that abe being given a little TLC by my manager
santo mike i seen the new project your on it looks great
oz Mike, thanks for the reply a few days ago, it helped, though the city appears it is going to be ornery. Thanks again.
Mike_Summey Thanks Santo
Al Lee Rober, my MD told me that Immmodium and Pept coud save you life in many of those countries
Al Lee Pepto-Bismol, that is
Tina Mike, Roger I’m constantly getting ask if you can rent the property, why doesn’t the Seller?
Mike_Summey Al, is that Immodium or Commodium?
rosebud Hello, everyone. I’m new and glad to join you. Mike, I, too, saw the announcement of your new project in the AC-T.
Al Lee The former helps you to avoid the latter.
eryk76 Mike if you use owner financing is there any type of document that is given after the home is paid in full??
Mike_Summey Hi Alex
Mike_Summey Thanks rosebud
Roger Dawson When we were in Tibet the altitude bothered us. At 12,000 feet it’s hard work. Wasn’t sure I was going to be able to climb the 13 stories of the Potala Palace, but I made it.
Mike_Summey Tina, can you be a little more specific?
Al Lee eryk76 a lien release. Have a lawyer do it.
Mike_Summey Hi Keith
Al Lee Roger, I had that same expeience hiking in Clorado last year.
eryk76 thanks AL.
Tina Mike, If the Seller has equity, why don’t he/she use it to there advantage and or become an investor themselves?
Al Lee No palace to climb, though. Just hiking trails
Roger Dawson Tibet was interesting but it lacks the charm of the Champs d’llyse in autumn.
Mike_Summey Roger, Carleton sat in for you the past two weeks. You need to send him a thank you email.
Al Lee eryk76, are you the buyer or seller?
eryk76 I would be the buyer.
Roger Dawson I’ll do that Mike. Carleton is a great guy. I’ve known him for 24 years.
santo mike, i sent you a letter about an idea on your new project, email me on what you think of it
Mike_Summey Tina, many do, but there are also many who need to get their equity out due to other reasons. Divorce, loss of job, transfer, etc. are among the reasons.
Mike_Summey santo, I haven’t seen it yet.
BB Can someone tell me how long this chat session will last?
Fred Mike, if I buy a little alligator house, that is, I have to put $200 a month, do you think is good? And when it will turn good?
santo only sent it this morning
Tina IMike, I’ve explained those reasons. Finally I said just read the book 
Roger Dawson BB we usually go until 9 east coast time.
Al Lee BB, usially 1 hour long
rosebud I’d like to know who among the group has made their first million! Other than Mike and Roger, I guess.
BB Thanks for the response
Mike_Summey Hi krspack
krspack1 Hey Mike
alex.elsiete@gmail.com Not me, this is my first chat
eryk76 Another scenario that I was thinking about was if you draw up a contract and seller passes away before the note is paid in full what needs to be done? Does the person who inherits the property have to honor the contract the seller signed?
Mike_Summey Fred, I never buy properties that I have to feed. I never liked the idea of pay to own an investment. I always thought it should pay me.
Mike_Summey Hi Joe
Mike_Summey Alex, glad to have you!
Roger Dawson The speculators are hurting right now, but anyone who followed our program of buying and holding is in great shape.
Mike_Summey eryk, if the seller passes, the payments are made to his/her estate. The mortgage contract does not change.
BB I’m planning on purchasing the software that you’re offering. That is the first step, right?
eryk76 thanks Mike.
Scott44544 1st chat and a question—Can someone show an example of the math involved in ROI?
rosebud What software is BB speaking of?
Tina Roger, everyday the news is giving negative feedback on real estate mortgages
Mike_Summey BB, the Offer Generator is very simple to use and it will keep you out of trouble.
Roger Dawson Fred, remember that cash flow is directly related to the amount of money you pay down. Nothing down is hard to cash flow. 50% down is easy. Just figure the amount of return you get on the money you put into it.
alex.elsiete@gmail.com I am happily married, however, my wife is in an other country, waiting for INS to process the paper work to bring our dauther to the USA. Can I sign a contract to buy my first house, without her signature?
Mike_Summey Scott, what in particular would you like to see?
BB the real estate offer software offered on this site
Al Lee Before 1986 I would buy a property that lost cash flow because of the tax benefits. Then the laws changed making it harder to use the tax benefits abaisnt ordinary income, so I changed strategies and only buy positive cash flowing properties.
Scott44544 can you give a simple example
Al Lee ales, that depends on what state yo uare in. You may also be able to get her to send you a Power of Attorney to do it
Mike_Summey alex, I see no reason why you can’t. She may have a marital interest in the property after you buy it, but there’s nothing to stop you from buying.
Roger Dawson Scott, ROI is figured on the net income after deducting maintenance, insurance, taxes, utilities and management. It assumes a cash purchase, which nobody would ever do, but it’s a way to compare ROI to other investments.
Mike_Summey Scott, ROI ic calculated by simply dividing the money you put into a property by the profit it produces. ROI and NOI are not the same thing.
eryk76 DaisyNH7, are you located in NH? I am in Mass here
Fred Mike & Roger, I am buying with no down payment, but the rent it is not enough, and I have to put the $200 a month. I am not sure if this is good or not good.
Scott44544 Thanks Roger and Mike. I’m in NC.
Mike_Summey Scott, ROI is return on investment, so if you invest $10,000 in a down payment and the property produces $1,000 after all espenses, including paying the mortgage, your ROI would be 10%
Roger Dawson Fred, it doesn’t sound bad as long as you’ve realistically figured the income and the expenses.
rosebud So is 10% considered pretty good ROI?
Mike_Summey Fred, there are a lot of properties you can purchase with no money down that you can’t afford to own after you purchase them. If you have to put $200 per month into the deal, where is that money coming from?
Mike_Summey Fred, how many properties can you buy that require $200 per month from other income. Each one makes you a little less able to pay the bills.
eryk76 Mike, I know that you recommend about four months cash reserves for properties but is there a point where you may have so many properties that it’s not the best use of the money because it could be used for other investments?
Scott44544 So help me out here, I invested 3,500 and produce 1000 a year, where does that leave me?
Mike_Summey rosebud, there is no magic number to look for in ROI. Whatever you are comfortable with is good.
rosebud Well, vis-a-vis Scott’s question, are we talking monthly or annual ROI?
Mike_Summey Scott, if you invest $3500 and it produces $1,000 after all expenses, you are making about a 29% ROI.
Scott44544 Really?
Fred Mike, right. But in your experience, how long it takes to get even, rent with payments.
Al Lee I am in the process of converting my radio show into a live audio conference. I already have listeners aroudn the country who listen via the webcast. Now they will be able to IM me or even talk online to ask questions. If you want to be notified when it is up and running go to www.myRentProperfy.com and click Subscribe. It is free. That will put you on my contact list. The show is called “Real Estate-Real Wealth”, SUndays at 2pm (other times may be added, too)
Mike_Summey Scott, do the math. What percent of $3,500 is $1,000?
Al Lee Whoops, that is www.myRentProperty.com )mistyped in the text above)
BB Al, do you feature real estate services on your show?
Mike_Summey Hi Penny, we thought you forgot us tonight.
Scott44544 You are right 28.5and some %
Roger Dawson Hi Penny!
Al Lee The show is about every aspect of investing in real estate. I also bring in notable guests like Mike, Roger, Carleton, and others.
Mike_Summey Scott, think of it this way…if you bought a CD for $3,500 and it paid $1,000 in interest, would you be happy.
rosebud Boy, would I!
Penny a lot late, but here. Hi Mike & Roger.
Mike_Summey Hi wood, I see you ran Roger off from your home country.
Al Lee HI, wood.
Scott44544 Oh yeah
BB Look at this reputable service at this site: http://www.eMortgageManager.net
wood hi everyone
Roger Dawson Hi Wood, I just got back from three weeks in Shanghai, Tibet, Three Gorges, Xian and Guilin. I’m amazed at the wonderful things that are happening in your country.
Mike_Summey I’m pleased to see that we have new people every week. That’s why we host these FREE chats.
BB Yes, MIke. I like this chat session aleady.
BB already
rosebud Well, it’s kind of you and Roger to do this for us. I’m so new I’m embarrassed to ask some very basic questions.
Scott44544 If you dont ask you wont know. Like me
Tina Mike, what would you consider a good time period as far as getting a property rented using a property Manager?
rosebud True.
wood Roger ,yes,things changed a lot in the past few years,and many people just dont know it.They need come around and see it!
Roger Dawson Wood, when I was 22 I moved from England to California because I could see the opportunity. If I were 22 today (and don’t I wish!) I would move to Shanghai today. Fortunes are being made there.
Tina I have been watching subdivisions with 30 days or less.
Mike_Summey Tina, there is no set time that is good. I find that as the rental market strengthens the time is shorter.
Mike_Summey Macaroon.
Scott44544 Mike and Roger—–Thanks for your help. Got to go. Talk with you all next time.
Mike_Summey Goodnight Scott
Tina I guess that safety girl in me seems to show up and I’m making that a part of my criteria
Roger Dawson Tina, it very much depends on the local market and location, location, location of your property. In a hot market you can rent in days. But never be pressured into renting to someone who doesn’t meet your standards. Getting a bad tenant evicted is very difficult these days.
Al Lee Not as difficult to evict in Texas as in California, though.
rosebud With mortgage lenders tightening up their lending policies and homeowners going into foreclosure, now would be a great time to have lots of rental real estate available.
Tina Roger, I’m definitely using a pm, I just want to avoid using cash reserves if I can
Roger Dawson Al, we have some very liberal minded judges in CA.
wood Roger,there are great opportunity here in China all around.You could still enjoy your life here if you like.
Al Lee Roger, that is why I don’t live there! 
Al Lee I own some commercial propery in other states, but I would only buy residential proeprty in Texas because of the laws that favor tenants in most states.
eryk76 Mike, If I am correct you recommend about four months cash reserves per investment property but is there a point where you may have so many properties that it’s not the best use of the money because it could be used for other investments?
Tina I’m still learning Texas
Al Lee Tina, do yo ulive in Texas?
Al Lee you live
Roger Dawson I had a tenant that knew all the angles to avoid eviction. In court the amount you’re claimed you’re owed has to be correct to the penny.
Tina Austin, TX
Al Lee Austin is very nice. Prices are high as compared to rents, but beautiful country’
santo al, how long does it take to evict a tenant, in Texas
Tina It’s not Seattle
Roger Dawson She showed up in court with a receipt from my resident property manager for $50. Found out later she’d asked him to take a load to the dump for her for $50. Then she asked him for a receipt and he gave it to her.
Mike_Summey eryk, I guess there comes a point where one can have too much cash reserve, but I don’t know what it is. I own several hundred proeprties and I still try to keep 4-6 months in reserve if the all go vacant. It’s a pretty good feeling.
Mike_Summey Hi Lar
lar hi all
Tina great point Mike
Al Lee santo, If a tenant does not pay rent by the 5th he is delinquent, if he has not paid by the 10th my manager gets a 3-day eviction notice filed. If they have not paid then, the sherrif goes with the manager to put their junk on the sidewalk.
eryk76 It’s definately the way to go. I guess that you can never be too secure.
BB Id that 4-6 months reserve per property, MIke?
Al Lee Of course, if the tenant has a valid excuse and makes an attempt to pay, we are lenient. We do not want a lot of vacant houses; but the ability to evict makes the tenants pay more religiously than they would elsewhere.
santo al we need tht law in ny
rosebud Al, where are you located?
Al Lee santo, I am from NYC. I woudl only want to be a tenant, not a landlord in NY.
lar santo you still investing in upstate NY?
Tina I realize life happens, but I have to remind myself this is a business
alex.elsiete@gmail.com Al Lee does that law apply to Virginia?
Al Lee I am in Dallas. Go to www.buyRentHouse.net or www.RentHouses.org
santo al, how about buffalo
krspack1 Goodnight all.
Mike_Summey Al, I had a problem sith one of my manager not wanting to file the evictions timely. I sent her a letter stating that anyone who way past due on the 16th of the month was to have an eviction filed. If she chose not to file the eviction and the rent was still past due at the end of the month I would be by her office to clooect it from her. I told her that if she wanted to loan the tenants her money, that was fine with me, that I was hiring her to manage my properties, not loan my money.
Al Lee ales, No, laws differ from state to state. That is whyI liek buying only in Texas
Al Lee alex
santo al, yes still investing in buffalo–6 properties–12 units– in 6 months
Mike_Summey My PM followed my directive last month and collections were the best all year plus most of the past due rents were collected.
Al Lee Mike, that is tough love
Joe Is there way to put a rental property in a LLC if the mortgage is in your name for asset protection I live in Houston, TX
Tina I got my real estate license here in Texas to help me with my investments as well as to have access to info I need when I need it
lar anyone have info on investing in the Albany NY Capitol District area?
Al Lee I have never had a real estate license and have been investing in real estate successfully since 1974
Roger Dawson Being business like is essential to success as a property owner. You can give money to your favorite charity but not to your tenants. If they move out on the first, no the 31st, they owe you day’s rent and you should insist on it.
Mike_Summey Al, I’m an investor, not a bank. If the tenants want to borrow money they need to go to someone in that business. I made a deal with my banks several years ago that if they would stay out of my business I would stay out of theirs.
Mike_Summey Joe, yes you can. All you need to do is notify the bank what you are doing and make sure they don’t object. As long as you stay obligated on the note they won’t.
Al Lee Of course, I agre with both Mike and Roger. We also enforce late charges starting the 5th. We do not waive them unless I specifically approve it.
Roger Dawson Joe, yes you can do that. As you say, the bank will want you personally to sign on the loan.
santo al, not doing anything now, have to do some small repairs on a few houses
eryk76 got to get going. Thank you for all of your advice. good night all.
Al Lee goodnight
Mike_Summey Joe, I transferred hundreds of properties to LLCs several years ago for estate planning purposes. I notified the banks what I was doing and none of them objected.
Tina Al, still looking for that 1st buy
Mike_Summey eryk, goodnight
Al Lee Joe, what Mike and Roger said is right for a bank loan, but if you are using a residential real estate mortgage, like a Fannie Mae or Freddie Mac loan, they will not likely approve switching the title.
alex.elsiete@gmail.com Tina, I am like you still looking for my first buy.
Al Lee Tina, look in the DFW area where prices are still low and rents are relatively high.
Mike_Summey Al, they have no problem as long as you stay obligated to the mortgage and they are in a first position.
BB what is DFW?
rosebud Dallas-Fort Worth.
Tina Al, I’ll check it out, thanks
Roger Dawson The first buy is at least 20% of the battle. After that it becomes easier and easier.
Al Lee DFW is Dallas/Fort Worth (sorry, I slipped into Texas lingo)
BB Oh…
Mike_Summey Dig For Wealth
rosebud Good one!
Tina I’m so ready to go. but I’m remembering your advice Mike — Be Patient
DaisyNH7 Mr. Summey-I am a big fan of yours, I beat my husband to the newspaper box every Friday so I can read your column.
Al Lee look at www.buyRentHouse.net — there is one house still available in phase one of the project we are doing now. There will be more in the next phases that will start next year.
Al Lee you should not beat your husband with a newspaper–use a broom handle.
Roger Dawson And keep your wrist stiff so you don’t hurt yourself.
Mike_Summey I spent my day today in my role as a law enforcement officer. We had a threat from an eco-terrorist group on our power plant. I spent the day on a partol boat protecting the water side of the plant.
Mike_Summey Daisy, thanks! I’m glad you enjoy it.
Mike_Summey Hi kharr
kharr1027 hello! i didn’t miss you!
Roger Dawson Mike, wasn’t that Green peace? They are not terrorists by CA standards!
kharr1027 i thought i was going to be too late
Mike_Summey Hi Bob
BobMassing Hi all
Mike_Summey Roger, Greenpeace was part of it.
DaisyNH7 This is a great service that you offer.
kharr1027 Question. how do you make an offer to a for sale by owner?
Roger Dawson Whenever I hear the name Daisy, I think of The Great Gatsby.
Al Lee Remember when France sunk a Greenpeace ship? Now they have elected a president who is more pro-American than half our Congress and Senate. Wow!
Mike_Summey Daisy, Roger and I have committed ourselves to helping our readers and that is why we donate our Monday evenings to these chats.
kharr1027 i finally went out and farmed some areas and i am trying to make the next move but i am really unsure on how to approach it
Al Lee that should have said “sank”
Mike_Summey kharr, write it down and present it. Nothing magical to that. Our Offer Generator program actually prints the offer letters ready for your signature and presentation to sellers.
Mike_Summey sunk
DaisyNH7 Roger, I hear that alot.
Roger Dawson Kharr, the best way is to sit down with them and find out what they need. The easiest way is to use our Offer Generator software to mail them an offer.
santo work tomorrow, have to rise at 1:00 a.m., nite all
Al Lee sank, have sunk, think, have thunk 
rosebud Goodnight.
Mike_Summey Goodnight santo
Al Lee night, santo
kharr1027 ok so you always try to meet with them face to face? You would call first and see what they asking and try to get some information right
Fred Thanks Mike & Roger
DaisyNH7 Do either one of you do speaking engagements locally?
Fred Good night everybody
kharr1027 so you can kind of see if it is even a possible solution
Mike_Summey kharr, when you can sit down face to face with sellers you can learn more about their needs and better structure you offers to fit their situations.
Mike_Summey Hi earl
Al Lee I am being beckoned to leave the chat a few minutes early.
Roger Dawson Knarr, a good approach is to be totally honest with them. Tell them you’ve never bought a rental property before but you want to get started and is there an approach that would work for both of you?
Al Lee thanks for a good time again.
rosebud Goodnight, Al. Your comments were appreciated.
Al Lee goodnight, mike, Roger, all
Mike_Summey Daisy, I spoke to a local group last Tuesday.
Roger Dawson Thanks Al
Mike_Summey Goodnight AL
alex.elsiete@gmail.com Good night all. thanks all and Roger and Mike.
DaisyNH7 Any more coming up in the near future? How do I found out about these?
Tina How is this done without the listing broker feeling threaten on non-fsbo?
DaisyNH7 I would LOVE to attend one.
Mike_Summey I’m cutting out right at 9:00 also. I’ve been up since 4:00 AM and on a boat since 5:30 AM.
Roger Dawson Daisy, at least one of us will be here every monday at 8 east coast time
rosebud Mike and Roger, thanks again.
BobMassing Kharr, if I may….I would also recommend Mike’s books. Besides giving you lots of info, they will build your confidence in presenting offers.
Mike_Summey Daisy, this was a small private group I agreed to meet with. Nothing was announced. I’ve spoke weveral times to the local real estate investment group CREIA.
kharr1027 also i have been looking at how to finance this and it just seems like in order to use the weekend millionaire’s formula i am going to have to offer something really really low. is this always the case? for instance i went to a house auction saturday the house was on the market for 135000 according to a property manager i talked to he said it would rent for about 550 a month with all the other figures the very best i would be able to offer would be 50000 and that would be with really low fianancing
kharr1027 thanks for the info bobmassing
Roger Dawson Tina, if the property is listed the broker won’t want you talking to the seller. Let them present the offer but reserve the right to meet with the seller if they can’t get it accepted.
Penny goodnight all
Mike_Summey kharr, there is virtually no way to buy a property for $135,000 and rent it for $550 and make the numbers work. You simply have to keep looking until you can find one where the numbers will work.
Mike_Summey Goodnight all. I’m off to bed. See you here next week.
kharr1027 yeah i am being very careful with this
kharr1027 thanks
rosebud Goodnight, Mike
BobMassing Good night….sorry i was so late. Grill duty.
oz c/night Mike.
Roger Dawson Knarr, those numbers don’t sound attractive. You need to find property that you can buy for 100 times the monthly rent. That’s a crude rule of thumb but it enables you to eyeball potential buys.
Tina thanks Roger
kharr1027 oh a better note it went at auction for about 83000 so a little better but still not where i need it
BB I am going to tell others about this chat session and the owner of the site http://www.eMortgageManager.net. Hopefully, they will find time and attend.
Tina I’m still reading and learning
rosebud Me, too!
Roger Dawson I have to leave. See you next week. Good investing!
Tina good night all
rosebud Thanks again. Goodnight.
kharr1027 well just in time to catch the end i suppose…i will be in earlier next week and have better questions prepared
BobMassing kharr, what area are you in?
kharr1027 east tn
BobMassing should be some deals there…keep looking
kharr1027 think so
BobMassing i’m buying in SC and finding lots
kharr1027 i have a couple for sale by owner but i am just getting started and don’t have alot of options for financing right now…in other words don’t have alot of my own money to invest with
kharr1027 i did get a home equity line credit on my personal house but i am being very careful with that
BobMassing look for properties in the ‘working class’ price range
kharr1027 yeah thats what the ones i have found are
BobMassing they cost less and the ROI is better
kharr1027 they are smaller 2/3 bedroom
BobMassing yes
kharr1027 when you calculate your noi do you take into consideration the closing costs..if so where do you add that into the formula
BobMassing don’t be afraid to say no, and move on….dont get married to one property
BobMassing yes, just add that to the price
kharr1027 lol thats something i don’t have a problem with…walking away
kharr1027 price of what
BobMassing thats the hardest part for me
BobMassing add it to the price of the house..its just like having a larger purcgase price
wood nite all
kharr1027 ok so if you find a house for 50000 and closing is going to be 3000 just add that to the 50000 for a total of 53000
BobMassing yes, and i ususally add about 250 for inspection
kharr1027 do u finance the closing costs into it as well
BobMassing thats up to you and the bank
BobMassing youre getting down to details now…if i see a house that pays for itself, i go for it
kharr1027 see i talked to bank of america today and they said on an investment property you have put 10% down and the interest rate on 70000 was like 8.76% or something around there then closing was another 3000. of coarse i did this over chat so it wasn’t the best scenario i just wanted to get a idea of how it would work
kharr1027 uhm
kharr1027 how many properties do you own now?
kharr1027 if u don’t mind me asking
BobMassing i have 4 but i had some cash to start with…only one is rented so far
BobMassing this is all recent
kharr1027 oh ok
BobMassing don’t pay 8.76 interest…go see a broker
kharr1027 do u have a property manager? i have talked to a couple here but i can’t decide who to go with
BobMassing yes, so far so good. just got my first check last week
kharr1027 what was the average % that you found they were taking?
BobMassing i got lucky and found one that only takes 10% with no other fees
kharr1027 ok, thats what both of the ones i talked to you take
kharr1027 ok this is probably a dumb question but what is a broker
BobMassing you prob wont find less untile you get more properties
kharr1027 yeah thats kind of what i have been determining
BobMassing i mean a mortgage broker…they will search everywhere for the best deal
kharr1027 here is something else i was wondering the other day
kharr1027 have you ever had a bank sell a mortgage
kharr1027 what happens when they do that…does your interest rate change
BobMassing it shouldnt..you have a contract
kharr1027 i know 2 people that happened to on their personal home
BobMassing you need three ‘buddies’ to help you along…a closing attorney, a mortgage broker, and a property manager. those people have most of everything you’ll need to know
kharr1027 ah that was a question i forgot about i was looking at the closing and couldn’t figure out who did that
BobMassing not sure about your two friends….depends on what their mortgage agreement says.
BobMassing and for me personally, i have a realtor, but i will get some argument on that
kharr1027 ok great! thanks for the info
BobMassing i live away from my properties so i need someone with eyes
kharr1027 ah
BobMassing glad to help…(if i did)
kharr1027 this is were i think i have an advantage. i drive 35 minutes to work and i have alot of towns around that are only a few minutes away actually i got to each of them at least once if not twice a week..so i have a lot of area i can cover
BobMassing then you should have a large pool of properties to look at
kharr1027 yeah like they said in the book your first one is the hardest and it is really hard for me to make the move
BobMassing you know where i have found lots of success?
kharr1027 where
BobMassing post-foreclosure…not pre
DaisyNH7 how do you hear about these?
BobMassing the banks are desperate by this time
kharr1027 yeah that was my next question
BobMassing many were listed in MLS
DaisyNH7 can you really get a good deal if it is listed w/a broker?
BobMassing absolutely
DaisyNH7 I was under the impression good deals came only through fsbo
BobMassing probably some…but where i live fsbo sellers are too greedy…they think their house is buckingham palace
DaisyNH7 interesting…
BobMassing i was looking at house for 70K…i was going to offer 52…
BobMassing i went to auction and the bank only bid 15 on it…i got it for 25
BobMassing it will rent for 600/mo
DaisyNH7 are these auctions advertised in the local papers?
BobMassing the county will run ads for the foreclosure, but you have to go to the county web site for auction info
BobMassing but auctions require a lot of work and are risky (mine had the copper pipes stolen)
BobMassing my point is wait till a foreclosure happens then watch it
BobMassing if it sits for a while (and in this market they do), the bank may accept your offer
DaisyNH7 woww, incredible. Baby is crying so I have to go, thank you very much for the info, it has been very informative. Hopefully, next week.
BobMassing hopefully i’ll get here on time…
BobMassing good luck
DaisyNH7 thank you, I really appreciate it, bye
BobMassing i’m gonna hit the wine bottle….good night all
kharr1027 interesting i started looking in the papers today to find houses that were going to be forclosed on
kharr1027 thanks talk to you later bobmassing
BobMassing county web site is your best bet
BobMassing see u next week i hope
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