Chat Transcript - December 10, 2007
Posted on December 11, 2007
santo hi mike
Mike_Summey Hi Lon & Santo
Mike_Summey Looks like were early.
Lon Hi Mike, I had to freshen my beverage.
Lon Mike, how were those apartments in Seneca?
Mike_Summey Santo, I’m sending you the Real Estate section from this weeks Sunday paper.
Mike_Summey Lon, I haven’t gotten to look at them yet.
santo thanks Mike
Lon I thought you mentioned in last weeks chat you were headed that way.
Mike_Summey Lon, I’m not sure I will be able to get to them until after the first of the year. Year-end is an extremely busy time for me.
Mike_Summey Hi Trav
Mike_Summey Theeeeerrre’s Roger Dawson
Lon Hi Roger, Trav.
santo hi, roger
Roger Dawson Hi Mike, Lon Santo and Trav!
Mike_Summey Lon, the trip I was planning last week got cancelled.
Lon I understand that, Mike. I’m busy as well.
Lon okay, it happens
Trav hey mike
Mike_Summey Lon I got a bit more info on the apartments and I think I know who built them. They sound like and the pictures look like ones I gave the plans to someone over 20 years ago.
Mike_Summey Hi oz & zoe
Zoe Good evening everyone
oz hi mike
Lon Small world, eh Mike?
Mike_Summey Yeah
Roger Dawson Hi Zoe
Mike_Summey Lon, I have a building here just like the ones they sent me the pictures of.
Zoe Hello Roger
Lon Too funny.
Mike_Summey Roger isn’t talking
Lon Someone nudge Roger.
Roger Dawson I’m still here!
Mike_Summey Lon, they are small studio apartments. Like a motel room with a kitchen. I have 20 of them in Asheville.
Mike_Summey Hi playhard
Trav mike where can i get more info. on the offer generatar
playhard53 Hi Mike its Jeff here in asheville how are you??
playhard53 I have enjoyed reading your articles recently in the newspaper
Roger Dawson I was at a Christmas party on Saturday. The owner of the house was telling me that he bought it 35 years ago for 55,000. Now it’s worth 1.2 million. Not at bad return on investment!
Lon Mike, they sound good. Sounded good on paper, what information I had anyway. We’ll see what happens after the holidays.
Mike_Summey Trav, try this www.weekendmillionaire.com/og-tour.php
Trav thanks
Mike_Summey Hi j5
santo mike ,did you see the story in the papers about the 88 year old lady who passed away and left 21 million to the owners of a chinese restaurant she went to quite often—-now her 5 nephews and nieces are trying to get that money–but the judge in the case says the will is final and the relatives get nothing
Mike_Summey playhard, thanks! I just wrote another one today.
Trav santo where was that at ?
Roger Dawson Santo, I did read that. I think her children would have stood a chance to get it revised, but not nieces and nephews.
Mike_Summey santo, did you see my earlier comment about sending you the real estate section of the Asheville paper?
santo mike in the new york paper
Lon Just goes to show you, treat your customers right!
Mike_Summey santo, that is another good reason to be nice to people.
oz santo, i heard of it, wasn’t it in the upper northeast ?
Zoe Amen to that Lon, do as you would have them do unto you!
santo mike yes thank you for paper that you are sending me
Mike_Summey Zoe and the rest of the comment is …and they just might!
Trav mike what about the real estste section in asheville
Trav high prices
Zoe Yes sir —buddy!
Mike_Summey Trav, nothing special, santo wrote and asked me to send him a copy of the real estate section for a friend of his.
Mike_Summey Hi ggggg
gggggg HI
Roger Dawson Mike, any news on the office building?
Mike_Summey opps! one g short
Trav ok i was just wander because i’m in asheville:)
intromaster (Mike F) hi all!
Zoe Hey gggggg, where are you from?
Mike_Summey Roger, no nothing yet, but I didn’t expect anything quickly. That’s going to be a huge decision for someone. Not one to be made in a couple of weeks.
Mike_Summey Hi MikeF
santo mike, get your bankers to rent the building
Mike_Summey My son closed Friday on the house we found for him in Enterprise, AL
gggggg Zoe, Florida the last decade.
Trav hey mike why there?
intromaster (Mike F) mIKE -that was fast!
Mike_Summey santo, they aren’t big enough unless they bring the headquarters here.
Zoe Wow, I’m from Alaska - “The Final Frontier”
Mike_Summey Mike F, we got it under contract on November 21 and closed on December 7th.
Roger Dawson I guess you can close fast when you pay cash.
intromaster (Mike F) oh, that’s right!
gggggg Zoe, what part?, I took the ferry all the way to Skagaway
Mike_Summey Roger, you’re right on that.
Zoe Right now I am in the city of Anchorage, but plan to move to the Matsu-valley
santo mike, how can i get to close on a property faster
Mike_Summey The deal my son made is a testimony to the Offer Generator. We made 4 offers at 2:00 PM and had two good counters and one acceptance by 4:30 PM.
Zoe gggggg, much more peaceful and alot of land to be had
Mike_Summey santo, how long is it taking you now.
Trav mike do you always use the offer generator
gggggg Zoe, Yeh get something on one of the rivers
santo mike the last couple were like 6 weeks
intromaster (Mike F) Mike- were the sellers using a real estate agent?
Mike_Summey Trav, yes. Before we developed the program, I had to do it on a calculator and it took hours. Now we can produce offers within 10-15 nimutes and the best part is that they will all cash flow with the NOI.
Trav i’m new whats NOI
Zoe gggggg, Absolutely. Much Salmon fishing where I am right now and alot of homes are going on the market because of the ANWAR project having been shut down
intromaster (Mike F) Mike- how do u know how much down payment to give the sellers if you dont know their situation?
Mike_Summey santo, that is probably because you were getting a loan. Cash deals can move quickly. Earlier this year I bought 2 houses from a bank and we made a handshake deal on Tuesday and closed on Thursday of the same week.
Roger Dawson Trav, NOI is net operating income. Net rents minus Maintenance, Management Insurance Utilities and Taxes. It’s what you have left over to pay the mortgage.
Mike_Summey Trav, Net Operating Income. That’s what’s left over after all expenses are paid.
Trav right
Trav i bought the carlton sheets program but have never made a move
intromaster (Mike F) Roger, what’s the best thing you’ve ever negotiated? Your biggest/proudest moment?
Mike_Summey Mike F, when I don’t know, I usually make one very low offer for cash and another much higher one that requires very favorable seller financing. When I see which one they respond to it tells me how to proceed in negotiating a deal.
santo mike, all my buys were with a loan– i guess 6 weeks is the norm
Mike_Summey Hi Rocky
Zoe gggggg, Nice chating with you. Good night everyone, I have to go and scrage some ice off of my windshield so I can go to my next meeting
rockydidonna hello
Mike_Summey santo, that sounds about right.
Mike_Summey gggggg, ugh!
Trav its hard to get in to it i think where i live
Mike_Summey It was 70 degrees and sunny in Asheville today.
intromaster (Mike F) No, I mean upfront cash to offer as a down payment - not an all cash offer
gggggg Not me-Zoe I’m in 80 degrees down here
Mike_Summey Trav, I’ve been doing it here for over 35 years and throughout the entire time I’ve had people tell me prices were too high and they would have done it too if they could have started when I did.
Roger Dawson MikeF: A man called me from Florida. His brother was being held as a human shield in Iraq. He wanted me to negotiate the ransom. I showed him how to get his brother out without paying a ransom.
intromaster (Mike F) Oh, ok..yeah, I remember you talking about that one on the audios!
intromaster (Mike F) wow! heavy stuff
Mike_Summey Mike F, the best way to find out what a seller will do or not do is to make an offer and see how they respond. Don’t be afrid to offer whatever you want. The worst they can do is say no, but they just might say yes as the people did with my son. He thought our offers would offend the sellers, but we got 2 good counters and one acceptance. He still can’t believe they accepted our offer.
Trav thats why i was wondering why your son got a house in ala.
Mike_Summey ‘Trav, he is in the military and will be there in flight school for a couple of years.
Trav right
rockydidonna Mike its cold here in chicago 10-20 drgees and snow ice it sucks anyway I looked at 30 property in the last 2-3 week and put in about 15 offers havn’t got any accepted yet but countered on 1 home. how long does it take to get one accepted?
Mike_Summey I wonder where everyone is tonight. It must me getting close to Christmas and everyone is out shopping.
intromaster (Mike F) I want to offer at least some cash to the seller (not much) because I know they will need cash to pay the commission to the broker
Lon Rosebud is at the REIA meeting
intromaster (Mike F) ok thanks
gggggg Probably collecting late rents
intromaster (Mike F) 
Mike_Summey rocky, I once made 50 consecutive offers that were all rejected before I got one accepted. Then 6 of the next 10 were accepted. It’s anumbers game. It requires patience and persistence, but when you buy one with an offer the Offer Generator produces, it will earn money for you the rest of your life.
Mike_Summey Lon, that’s right. She said last week she would be there tonight.
Lon I’ll be at mine next week.
rockydidonna its just sucks waiting
Mike_Summey rocky, be patient. You’ll never lose money on a property you don’t buy, but you can lose your shirt on one you pay too much for.
Mike_Summey Roger, why don’t you tell everyone about our new book.
Trav so mike when you give less than whats its worth should i finance it for a little more it case i don’t have a renter for a couple months
Trav would have a little cushion
Trav so i would
intromaster (Mike F) what do you do when prop. insurance goes up every year and real estate taxes go up every year but you cant raise the rent too much to offset the charges?
Mike_Summey Trav, you should always have some cash reserve to cover vacancies and unexpected repairs. If you don’t have that and can get a little extra cash when you finance, it may not be a bad idea.
Mike_Summey Hi Doug
Doug_in_CT Hi Mike
Roger Dawson Hi Doug
Doug_in_CT HI Roger
Mike_Summey Mike F, why can’t you raise the rents?
intromaster (Mike F) you can, but it prob wont be enough to offset the charges. maybe raise the rent $25-50 max (dont want to scare off the tenants to leave)
intromaster (Mike F) and this is every year (raising rents just a little bit)
Mike_Summey Mike F, $25 - $50 is $300 - $600 per year. I’ve never had taxes and insurance go up that much in a year.
Mike_Summey Hi Penny
Trav but if you get to much financed then it would be hard to get enough rent to pay the mortgage
santo mike, i can’t make offers where i live, too costly—but this out of town investing seems to be working for me–buying at very low prices–2 family $42,000–3 family $63,000—-20% down with a 30 year fixed rate–2 family mortgage $308. 3 family mortgage–$375.
Penny Hi there Mike!
Mike_Summey Trav, that’s what the Offer Generator tells you.
Mike_Summey Hi david
Trav ya i need to check that out
davidoro hola
Mike_Summey Trav, it’s the best $70 you’ll ever spend if you’re serious about wanting to get started investing in real estate.
davidoro hey mike, i have an offer in on a house using your techniques
Mike_Summey My doctor came over last night to get an Offer Generator. He brought his computer and we loaded it so he could see what it does. He said we were selling it way too cheap. I told him he could write another check for what he thought I should have carged him, but he just laughed.
Mike_Summey david, have you heard anything from it?
Roger Dawson We’re really excited about the fourth book in the Weekend Millionaire series The Weekend Millionaire’s Secrets to Negotiating Real Estate. Just published this week. Mike talks about the deals he’s been able to put together. We teach you how to negotiate with bankers and how to find good buys. You can pick up a copy at Amazon.com and we’ll have it up on our website soon.
Trav i know theres plenty of potential for a lot of money its just getting the first one behind me you know mike
intromaster (Mike F) thanks Mike!
davidoro well, the offer was accepted now i just need to hear back from the inspector i hired
Mike_Summey Roger, I just stopped by Barnes & Nobel today and they have the new book on the way. It should be in the stores by the weekend.
Trav a lot of unknowns
Mike_Summey Trav, the best way to get the first one behind you is to get started. You’ll never get it there thinking about it.
Doug_in_CT Congratulations Mike and Roger, Book number 3 is a good milestone. Negotiating with Bankers sounds like something everybody could understand better.
Mike_Summey Hi wps
wps good evening
Trav I hear you!
davidoro here’s the thing mike, i live in CA and the house is in TX (you don’t recommend the distance, but I think it works for me). you can’t get NOI to work in CA - prices and rents have about 50% difference. but it works in TX. that said, i came across a house that will give me 12% return on the money I put down.
Doug_in_CT Is there any advantage buying the new book on the weekend millionaire website over Amazaon
Mike_Summey Roger, my doctor was in the doctors group that you spoke to a couple of years ago. He has read the new book and loves it. He said to tell you hello for him.
intromaster (Mike F) Mike, if you dont care about appraisals what if the sellers are asking alot more for their property than others are asking in their area? do you bring it up or mention it.
Mike_Summey Doug, all books bought from our website are autographed if that’s worth anything.
davidoro you mention ROI on the money you put down in your book, but i didn’t believe it. in fact, i had to double and triple check the numbers before i made the offer. with that return it’s a no brainer.
Mike_Summey david, if you’re comfortable, then do it.
davidoro oh way comfortable
intromaster (Mike F) the audios are great…I listen to them in the car, when I’m in bed, on the compter, etc. reinforces what I read
Mike_Summey Mike F, I never mention appraisals. I determine what a property is worth to me and that what I offer. I don’t care what an appraisal says it’s worth.
davidoro my point is that i didn’t think the “wholesale” numbers you suggested would ever work. but they do. just have to find them.
Mike_Summey david, thanks! I’m glad you said that. We have people in this chat and those who read the transcripts who still don’t believe that.
davidoro ah, that was me. 
Mike_Summey I’ve been investing the Weekend Millionaire way for over 35 years. I know it works. It worked 35 years ago and it still works the same way today.
intromaster (Mike F) what if you want to get bank financing and reserve your cash? do you still deal with banks for conventional financing?
davidoro so mike, i have a question for you on escrow/impound accounts. do you have them? i have for one property, but don’t want to do it for others. that’s money i can be drawing interest on. thoughts?
intromaster (Mike F) Roger, do you have a couple hundred houses too?
Trav mike there is a weekend millionaire book out there ?
Mike_Summey Mike F, I cna’t qualify for conventional financing the way a new investor can. I own too many properties. All of my loans are treated as investor loans and that make them harder to get. With that said, yes, I still deal with the banks, but only when they will do what I want. I don’t let them push me into loans I know won’t work or will be hard for me to handle.
Roger Dawson Not any more Mike. I’m retired.
intromaster (Mike F) good for you (retired, that is)- enjoy life
Mike_Summey david, I have no bank escrow accounts. I don’t trust them to pay on time so I pay my own taxes and insurance. However, if you get a qualifying loan, you will probably have to have an escrow account as that is part of what make the loan saleable to other investors.
Mike_Summey Trav, there are 4 Weekend Millionaire books.
davidoro yeah, that’s what i got. i don’t like.
davidoro interesting you mention convential financiing mike, i heard from a lender that as an investor you can get up to about 10 investment homes before they start making it harder for you. what kind of loans do you get now?
Mike_Summey david, I have a great story about how I once got rid of an escrow account on a VA loan I assumed.
intromaster (Mike F) Mike, you should get one of your most successful students to join the chats for an interview and talk about his/her first couple deals
davidoro i want to get rid of them, but the ytell me i have to refinance into a new loan. i just got this loan.
Trav can i get them at books at million ?
Mike_Summey david, once you get 10 loans, your loans no longer qualify to be sold to institutional investors so the lending bank must keep additional loans in their investment portfolio.
Mike_Summey Trav, yes you can, but Sams Club has the best prices on them.
intromaster (Mike F) I get investor loans and I only own 1 property (will own 1 more by next June). They will all have to be NOO (non owner occupied)
Lon Maybe the next book should be some of the most interesting deals ever done with the OG.
santo mike, when i reach my tenth property, what will happen when i try to get a loan
davidoro so mike, the 10 loan thing, if i understand it correctly, rather than the lending bank selling your loan to investors - they have to keep it on their books
davidoro ?
intromaster (Mike F) Lon - I agree or have them come hear and talk about the deals
Doug_in_CT I was speaking with a financial institution today and they indicated quit claiming a few property into my wifes name could solve the 10 properties issue.
Mike_Summey david, as long as the loans you get are consider qualifying loans, you probably won’t be able to get rid of the escrow account. to do so you have to find a bank willing to make portfolio loans and that’s hard to do when you are just getting started.
Mike_Summey Lon, we talk extensively about the Offer Generator in the new negotiating book.
Mike_Summey santo, you will not be able to get the kind of loans you’ve been getting.
Mike_Summey david, that’s correct.
santo mike, you mean the rates will be higher
davidoro and banks don’t like to have that risk. interesting.
intromaster (Mike F) Mike, have you thought of making the books digital download? I hate havin to wait for the mail to deliver my books. I want them NOW
Mike_Summey santo, not necessarily. It all depends on the relationship you have with the bank and how you have performed on past loans.
intromaster (Mike F) like Amazon, look inside (books)
Mike_Summey david, banks don’t mind taking a risk, they just won’t take a big of one as they will if they are merely bundling a bunch of loand to sell to another institution.
Roger Dawson Mike F, we have talked to our publisher about Ebooks but it’s such a small percentage of their business that they are not enthusiastic about it.
Mike_Summey Mike F, McGraw-Hill is our publisher and that’s their call.
santo my relationship with my bank is with my attorney– she does all the talking
intromaster (Mike F) oh, ok.. I see
davidoro man, i came late and it’s already the top of the hour. i’ll be early next time. mike will keep you posted on that deal i got going.that will be house #2.
Mike_Summey santo, your relationship with your bank is how you pay the loans. You don’t have to get intimate with them to build a great payment record and that’s what they will look at after you get 10 loans.
intromaster (Mike F) Mike/Roger - I thought prop managers take 4-10% of GROSS rents, not net?
Mike_Summey Mike, most of them try to get 10% on residential single-family properties. As you get more units you can negotiate a better rate.
Mike_Summey Well, everyone, it’s past 9:00 and I’m going to say goodnight. I’m going to watch the Monday night football game with my sons.
santo mike, so if my payment record is 100% does tht mean i will continue the same way after 10 houses
Mike_Summey See you here next week.
Penny gotta run, good night
Mike_Summey Goodnight
Doug_in_CT Good night all.
intromaster (Mike F) offer generator calcs NET, not gross. I have to manually put in the GROSS for it.
Lon Santo, I think it really depends on the bank you’re working with.
intromaster (Mike F) doesnt matter, just thought it was gross rents
intromaster (Mike F) wow! time went fast this week
santo thanks lon
intromaster (Mike F) bye
santo nite all
Roger Dawson Goodnight everyone!
Lon Goodnight guys
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