Chat Transcript - October 22, 2007
Posted on October 23, 2007
Mike_Summey Hello everyone
Mike_Summey Roger will be along shortly.
maria in Auckland houses have tripled in price so go for 500,000
santo maria, new york city
maria ah that explains it
Mike_Summey santo, thanks for the info on the apartment complex. It is a bit too far away for me.
santo hi mike hi roger
Mike_Summey Hi santo
Roger Dawson Hi Santo
maria Hi Mike, Hi Roger
Mike_Summey Lon, where are you from?
Mike_Summey Hi Bill
Lon_Peper I’m in Simpsonville
Bill L Hi All..
santo mike how did the price sound on that property
Lon_Peper down the hill from you
maria hi Bill
Mike_Summey santo, it’s hard to tell whether the price is good or not without having more information.
Mike_Summey Hi Zoe
Zoe Hello and good evening everyone
maria Hi Zoe
Bill L Hi Maria
Mike_Summey I have made contact with Experion the credit people and they are going to provide us with a guest for an upcoming chat to answer questions on how to improve your credit.
Lon_Peper Hi Zoe
Zoe Hello Maria, what’s the temperature in New Zealand
Zoe Hello Lon
Mike_Summey Maria, what is the time difference where you are. What time is it now?
Lon_Peper Maybe they can explain their calculation.
Ryan-NC Improving your credit is quite simple - just pay your bills on time, LOL
maria Zoe currently about 14 C
Lon_Peper Ryan - amazing how that works!
maria Mike it is now 1pm tues - we are on daylight savings time now
Zoe I’m sorry Maria
Mike_Summey I agree Ryan
santo mike, do you know a man named richard davis from sc, he is the owner of trademark properties, and he has a very good show on called the real estate pros
maria Zoe lol …it does get better
Zoe I’m Sorry Maria, is that 14 degrees F
Mike_Summey santo, never heard of him. Where in SC is he?
Mike_Summey Hi oz
Lon_Peper I am trying to get Richard Davis to speak at our local REIA meeting.
maria Zoe no celcius
Lon_Peper Keep going back and forth with his relations person.
oz hi mike
Mike_Summey Hi ggggg
Lon_Peper Mike - Richard Davis has a show on TLC - The Learning Channel. He’s a Clemson grad. He’s based out of Charleston.
Bill L Mike & Roger can we preorder your new book?
Mike_Summey There’s Al
Al Lee Better late than never!
Roger Dawson Hi Al
Al Lee Hi
santo mike, i don’t know the area where he is from, but what i will do is send you a video tape of his show
Mike_Summey Bill, I don’t think so. We don’t have anything on it yet. As soon as we do we will put it on the website.
Zoe Mike/Roger, I have been presently working with the experian corporation, and they seem to be definitely pointing me into the right direction. Can’t wait!
santo hi al , thanks for reading my comment on your radio show
Mike_Summey Lon, I have a son in Charleston right now. I’ll ask him to check out the show.
Bill L I am looking forward to the release date, then…
Al Lee santo, it appears we are about the same age. I hit 62 in December
Lon_Peper Richard Davis rehabbed and moved Shoeless Joe Jackson’s house across the street from the new Greenville baseball stadium.
Al Lee I WILL hit, that is
santo al, dec 28th for me
Bill L Al you have a radio show? where & when
Lon_Peper Mine’s in a week.
Mike_Summey I’m in January
Lon_Peper A youngster though, only 41.
Zoe Maria, how are you coming along with your Real Estate Investments?
Al Lee Bill, you han listen online at WealthRadio.BIZ
Bill L Me, 53 the day after Ground Hog’s Day.
Al Lee www.WealthRadio.BIZ, that is
Al Lee Santo, you are a youngster. Mine is the 11th
santo mike in case you forget that is jan 26th for you
Mike_Summey Bill, Roger & I have both been guests on Al’s show. He does a nice job.
Bill L Damm fell off the board
maria Zoe I am in the process of selling home and then entering rental market
Al Lee My live show is Sundays at 2pm Central, 3pm Eastern, noon Pacific
Al Lee When we do not have a live show on, there are recorded shows and interviews
Lon_Peper The Real Estate Pros ==> http://tlc.discovery.com/guides/property/real-estate-pros/real-estate-pros.html
maria Zoe how are your investments going?
oz Roger, you staying out of the So Cal fires ? Stay safe, there are 18 [resently foing last I heard
Al Lee Mike and Roger are my favorite guests. The shows with them are recorded and air on the station in a rotation
Lon_Peper and Richard’s website for Trademark Properties ==> http://trademark-properties.com/home/
Zoe Awesome Maria, I have just recently attended my very first REIA meeting and found it to be rather informative. I met alot of REI who are having a hard time dealing with lenders concerning
Mike_Summey Hi Cynthia, you sneaked in. I didn’t see you enter the chat.
Mike_Summey Hi wood
wood Hi all
santo al, i always listen to your recorded shows to pick up good info
Zoe I’m sorry Maria, continuing… with “short Sales”!
Al Lee santo, thanks. I am workign on putting more of the recorded shows on key topic on the station.
Roger Dawson Oz, I’m keeping my eye on my other screen to keep updated on the Lake Arrowhead fire. It appears to be only 2 or 3 miles from my mounttain home.
santo hello roger, sorry i missed you come in
Mike_Summey It looks like most areas are now experiencing the downturn in real estate sales. I saw last week were September sales were at a 14 year low.
maria Zoe short sales? you mean buy sell buy?
Bill L Roger, I have my fingers crossed for you.
Al Lee Roger, if the enviro-wackos would let you mow the grass and clear out the dead timber form the woods California might not have these annual conflagrations.
Mike_Summey Al, where Roger lives, he gets fined if he doesn’t keep the brush cut. Smart people!
santo al, a lot of people think this is arson
oz Roger, i have the news on as well… did you just see the DC10 make an ariel drop ? Good luck with your property
Roger Dawson A short sale is when the lender will take less than they’re owed on a poor performing loan. No magic to it. The owner takes the offer to the lender and asks them if they’ll accept the proceeds as payment in full.
Zoe No Maria, short sales are debts that are above and beyond the loan amount that is due to the lender, and you are basically asking the bank to forget the debt to these properties and sell them to you for it’s original note amount.
Mike_Summey Roger, I was watching the news earlier and the pictures from CA are unbelievable. One shot showed balls of fire blowing horizontal at what looked to be about 50-70 MPH.
Al Lee I would not be surprised to learn it was arson. There are plenty os sick people running around loose, not to mention terrorists.
Zoe Maria, these are Pre-Foreclosed/Foreclosed properties
maria Zoe ty
Roger Dawson Al, they only figured out a couple of years ago that forests do better when they’re thinned. Now we have a government program that pays 80 percent of the cost of thinning your property.
oz yea mike, in some places the wind was at some 80 to 90 mph.
Lon_Peper Zoe - two weeks ago you mentioned a program that allows you to pay off your mortgage in 10-12 years. You left before I could comment. It’s call a Money Merge Account or MMA.
Al Lee Roger, that is smart.
Mike_Summey I made an offer on 8 houses last week, but it was rejected. Seller said someone else was going to pay him 1.5 times my offer. I told him to go for it.
Mike_Summey Hi amckenzi
santo mike you also have a serious drought down there too
Roger Dawson We were at a garden party in Malibu on Saturday. A bunch of us looked out at the canyon and said, “That’s so dry it’s going to explode one day.”
maria sounds like australia
Mike_Summey santo, yes we do. Very serious. Fortunately in Asheville we have a very abundant supply of water.
Mike_Summey It is raining here now and we really need it.
oz Al, there are local reports that at least 2 of the fires are/were arson.
santo mike, that guy might be calling you back soon
Zoe Lon, not sure what Money Merge or MM means, but you can google this phrase (Mortgage Accelerator) and it will take you to several companies that are presently offering this program in the US.
Mike_Summey santo, after telling me another buyer was going to pay 1.5 times as much as I offered, he told me not to throw away my work papers. I think he doubts the other buyer ability to perform too.
Mike_Summey Hi Penny
Penny Hi Mike & everyone.
Bill L Mike, if he does call Ithink the offers should be a little lower.
Roger Dawson Hi Penny
maria Hi Penny
Zoe Lon, It’s worth checking out. My wife is presently going through the process of setting up this program for one of her properties
Mike_Summey Bill, I’m very patient. I know what investment properties are worth and if I cna buy them for that I buy. If I can’t I don’t. That philosophy has served me well for 35 years.
Lon_Peper Zoe - I think Mortgage Acclerator is a product the bank offers at a price where you pay weekly instead of monthly, thereby knocking your principal down faster. The Money Merge Account uses a Home Equity Line Of Credit to help pay down your mortgage faster.
Bill L That it has…
Mike_Summey I have another property I’m looking at and the sellers have provided me with two apprasials they had done. After reviewing them, I’d be willing to bet no bank in the country would loan on them. They are utterly ridiculous. I guess one can buy an apprasial that says whatever they want it to say. but getting a lender to use it is another story. These sellers haven’t learned that yet.
Lon_Peper I opted to do it myself by multiplying my monthly mortgage by 13, then divide by 12, round up to the nearest $25 and pay that every month. I’ll have my 30-year mortgage paid of in less than 20 years, possibly sooner once I become a Weekend Millionaire!
Al Lee Paying bi-weekly causes you to pay 26 payments a year, or 13 months of payments instead of 12. That does pay down your loan faster, but the banks usually charge a small fee for letting you do that (processing fee). It means that you will pay more money each year in payments.
Bill L They will soon enough…
Zoe Yes Lon, ok now I see what you mean. On it’s basic level, the Mortgage Accelarator is a program that pays down your mortgage principle faster and quicker because of the amount of money you are dumping into it on a monthly basis, not weekly. Anyway, you got to check it out.
Al Lee Paying yoru loan off faster defeats the benefits of using Other People’s Money. Why pay the extra money to the bank when you could accumulate it to buy more properties?
maria I have to go now, see you all next week bye
santo al, i agree
Zoe Aloha Maria
Mike_Summey I think a great way to speed up paying off a loan is to get an amortization schedule and make the payment due plus the principal only of the next month’s payment. That moves you two months down the schedule. By doing this, you pay off many months for a very small amount and the closer you get to paying the loan off the larger the next principal payment is. That lets you step up you payments as your income grows. Just something for everyoen to think about! 
Al Lee Leverage is one of the key aspects of successful investing and real estate affords you the ability to use the best and safest leverage of any investment medium. Whh
Al Lee Why override that benefit?
Lon_Peper Zoe - Is the Mortgage Accelerator you’re talking about similar to using the Home Equity Line of Credit to pay $5000 down on your mortgage, effectively cutting your interest by a good chunk? Or is it the paying more often like I explained?
Mike_Summey G’day maria
Roger Dawson There have been someme crooks who have encouraged people to send their mortgage payments to them instead of the lender. Never do that/
Lon_Peper NEVER
Zoe The money that is going to the bank is money outside of your NOI. Your PITI is what you will be giving the bank!
Mike_Summey Al, one day you and I are going to sit down and debate whether it’s better to pay off loans or not. That’s about the only thing we disagree on.
Al Lee My philosophy is to get 30-year fixed-rate mortgages and ride them until either: 1) they are paid off naturally, or 2) interest rates drop low enough to make it worthwhile to refinance, or 3) your Return on Equity drops low enough to make it worthwhile to do a cash-out refinance to use the cash for more investments.
Zoe The Mortgage company pays all your bills and puts the rest of it into your newly debit card for your convenience
Lon_Peper Mike - There’s a financial adviser at my church who says he can prove all day long that you should have a mortgage.
Bill L Yes, I would like to read that debate…I think there are interesting points on both sides.
Mike_Summey Lon, I’d be happy to debate the issue with him also.
Lon_Peper Mike, I think I’m with you.
Lon_Peper I can’t see it.
Al Lee Mike, I would love to have that debate. It is soemthing I have given a lot of thought to. I started out in the 70’s with the get-em-paid-off strategy; but changed my mind when Excel let me run the numbers easily.
Zoe Anyway fellow WM investors, I just thought I’d share it with all of you and lively conversation. I hope I didn’t offend anyone.
Mike_Summey Granted, mortgage interest is a tax deduction, but how does paying out a dollar in interest to save 20-40 cents in tax benefit anyone.
Al Lee Lon, I agree with the guy at your church.
Bill L Al do you Buy and Hold like Mike? Or do you sell some?
santo mike, why don’t you have a debate, with al, carleton sheets, and roger
Lon_Peper I can’t see paying interest to a bank on borrowed money when I can use that money to invest elsewhere. Someone has to show me how the tax write off offsets what I could make on that money.
Al Lee Bill, yes I do. Mike and I agree on almost everything–except the leverage question.
Mike_Summey santo, I was in a debate with Carleton all last week. He was here visiting with me and we debated golf!
santo al, we must have this debate between you 4 experts
Mike_Summey Al, I have no problem with leverage. That’s how I built my portfolio. I just don’t believe in perpetual leverage. Once a property is purchased, I prefer to let the tenants pay for it for me. That’s how I use OPM.
Al Lee Bill, I have sold properties at times when my primary business was not doing well and I needed money, or when a given property became more trouble than it was worth to keep. Generally, though, I believe in holding them. Most of the properties I have sold, were not actually sold, though. In a divorce you split the assets and liabilities. I got the liabilities.
Lon_Peper Zoe - I just googled mortgage accelerator, it’s the same thing I was referring to. I sent that to the financial planner at my church and he said if you’re disciplined enough, you don’t need the software.
Bill L Yes, I tjhink it would be Very Interesting.
Lon_Peper I listened to a presentation a couple of months ago.
Zoe Got it Lon, Awesome, thank’s alot
Lon_Peper The one thing they don’t take into consideration is a lot of people live check to check and really don’t have the extra money each month to pay off the HELOC as well as their mortgage.
Roger Dawson If you own enough property you’re probably not paying taxes anyway, so that’s not a benefit.
gggggg Mike/Al but once you have a mortgage, aren’t you controlled by the lenders and insurance companies/
Bill L The point I was trying to get to was that doesn’t the exit statgery drive the investment statgery?
Al Lee Mike, we ought to have that discussion in depth some time. I have the facility to have a web conference with both text and voice. YOu can even put up charts or display websites. Let’s schedule soemthing!
Al Lee ggggggggg, you are controlled by the taxing authorities whether you have a mortgage or not.
Mike_Summey Everyone, the problem I have with Al perpetual leverage method is that 99% of the people do not have the discipline to accumulate the few extra dollars it provides and then reinvest it in more properties.
Al Lee Mike, that is a different issue. I agree. We are trying to get people to be in the top 1%, though.
Mike_Summey Al, I’d be happy to do that.
Al Lee Roger, want to join in? We can make it a affair to remember. Wait, that was in Milan, wasn’t it?
Lon_Peper Mike/Al - please do
Al Lee Hey, now this is getting exciting!
Roger Dawson No, Lubbock, Al. We’ll always have Lubbock.
Zoe Wow, one mention of a Mortgage Accelarator program and we have two RE gurus setting up a debate.
Mike_Summey Al, unfortunately it’s not a different issue. One of the biggest problems I have with some of the other real estate gurus is that they promote methods that only work for 1% or less of the people, but they market them to the other 99% who don’t have sense enough to understand what they are doing.
Al Lee dance
Roger Dawson The Washington Post had a contest. Change one letter in a word and give it a new meaning. How about this: Cashtration (n.): The act of buying a house, which renders the subject financially impotent for an indefinite period of time.
santo al, if carleton does not want to participate, let him be the moderator asking questions
Mike_Summey I prefer to give advice to the 99% that they can understand and use and gradually move themselves into the 1%
Zoe Thank you very much mike for looking out for the little people like myself!!!
Al Lee Wait! Let’s not give away all our arguments here. Let’s hold some back for the webinar/online conference.
Bill L Very good Roger, I like it…
Mike_Summey Al, I have plenty more. I’m just getting wound up.
gggggg Thanks Mike
Mike_Summey I like that Roger
Al Lee Great! Lets talk offline about the logistics of this and set a date. It will be lots of fun and we can record it for posterity, too
Zoe Roger, that’s great wisdom Sir.
Roger Dawson How about this: Sarchasm: The gulf between the author of sarcastic wit and the person who doesn’t get it.
Mike_Summey Al, here’s another one…equity is the cushion that keeps you from going broke when the market turns down.
Al Lee I don;t get it
Bill L Yes, I like the idea it will be great chance to learn different methods.
santo al, the great real estate debate, i can hardly wait
Zoe Holy macro, Roger is on a streak everyone. Preach on Roger
Al Lee he is speaking in tongues!
Bill L Roger please send them to the Post
Mike_Summey Is anyone trying to buy right now?
Roger Dawson Mike, this is not directed at you: Reintarnation: Coming back to life as a hillbilly.
Bill L Yes,
Bill L Go Roger Go, your on a roll….
santo roger, you can lead a horse to water but you can’t make him take a bath
Al Lee Mike, I think the topic shoudl be the overall subject of leverage and debt with this aspect as just a part of it. I think it is one of the most important concepts in investing and poorly understood. In truth, of course, neither of us is “right” nor “wrong”. The question is, what strategy suits your personal objectives and capabilities.
Mike_Summey Al, nest week’s article is on the affects of compounding interest.
santo roger, a rolling stone gathers momentum
Zoe Yes Mike, Pre-foreclosures. Working with some homeowners to see if I can be of assistance to try and direct them out of the foreclosure process. If not found then offer to negotiate a sale to me for long term investment
Roger Dawson You can take a horse to water, but a pencil must be lead.
amckenzi hi jumping in late here.
Al Lee Mike, the topic for another such online seminar might be compounding and the time value of money. Another poorly understood concept that is very importatn to investors.
Roger Dawson Hi Amchchkenzi
Mike_Summey Everyone, now is the time to start using your Offer Generators and make some creative offers. The next 1-2 years are going to be the best in the last 50 years for long term investors.
Bill L Roger, that was a groaner….
santo roger, kill a bird with two stones–i have a bad aim
Mike_Summey What are you smoking Roger?
gggggg Does anyone have a used offer generator for me?
Roger Dawson Al, perhaps you can explain deferring taxes to me. I keep thinking I’ll be in a lower tax bracket one day but it never happens.
santo roger a bird in the hand can be a messy situation
Al Lee Roger, I will try to do that.
Al Lee Roger, you did not mean in the remaining minutes of this chat, did you?
Bill L Santo, but a bird in the oven can be tasty….
Mike_Summey Did you know that if a 25 year old made a one time investment of $5,200 at an average rate of return of 10%, it would take a 40 year old investing $4000 per year, every year, at the same rate of return for them both to have the same amount of money at age 65?
Roger Dawson No, Al. It’ll wait.
Al Lee Roger, that is a good topic for another of out online seminars. Wow! this might be a fruitful day.
Lon_Peper Can I go back 15 years and put $5200 in something making 10%?
amckenzi hi - wife and I loved 1 br high end condo new development earlier this year and locked in.. after comparing apt. comps, and attractive DC/MD metro location we thought wow, great entry level price…
santo al, was it my idea for the debate, do i have a patent on it
Mike_Summey amckenzi, and…
amckenzi calculated a (+) cash flow, now the unit is finnaly ready
Al Lee santo, you get a free admisson!!
Roger Dawson What happened Amchenzi?
Zoe Goodnight everyone see ya next week, gotta go
amckenzi ready to close next week,
Mike_Summey Goodnight Zoe
Lon_Peper nite Zoe
Bill L nite ZOe
amckenzi concerned about slow season for tenants looking for rentals
Mike_Summey Lon, the stock market has averaged about 10% over the past 80 years.
Al Lee amckenzi, I had heard that someone was buying something in the DC area, you must be the one.
amckenzi is there a slow season?
Lon_Peper Mike - what about the going back 15 years, can you help me there?
Al Lee I understand that sales in DC have fallen through the floor. Is that the way it looks to you?
Mike_Summey amckenzi, the holiday season tends to be a bit slow in most areas. Nov-Dec.
amckenzi ok
Roger Dawson Is this is new construction I wouldn’t be afraid to go the builder and negotiate a better deal.
Al Lee That wouel make it a good time to be a buyer there.
Mike_Summey Lon, I could have last week, but my time machine broke.
Lon_Peper of course, just my luck
santo mike i will sen you that tape the next time richard davis’s show is on i will tape it
amckenzi ok
Mike_Summey santo, thanks. I will get Matt to try to watch it too.
Roger Dawson Good night everyone. See you next week.
oz g/night all…
Mike_Summey Goodnight Roger
amckenzi night
Bill L Good Roger, remeber to send them word to the post
Al Lee I heard that Suze Orman has revealed (among other things) that most of HER money is in real estate–despite what she preaches on TV
Mike_Summey I’m going to have to run also. I have several things to finish tonight and then I’m off to Florida tomorrow.
santo mike i am suprised you don’t get it where you are
Lon_Peper have a safe trip.
santo nite mike
Al Lee OK, I need to run off, too.
santo nite al
Mike_Summey Goodnight everyone.
Al Lee ight, Mike, ROger, all of you
Bill L Good NIght All…Mike have a safe trip. Roger hope your MOuntain place is OK.
Penny goodnight everyone, see you guys next week.
MarkNC Is anyone still here?
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