Chat Transcript - March 17, 2008
Posted on March 18, 2008
Mike_Summey Looks like we may have a good turnout tonight.
santo hi, al, mike
jfoice1 Hi, Mike
Mike_Summey Al, how are things going in Texas?
Al Lee I guess the wrod got out that I was going to be here :p 
Al Lee word
Al Lee Mike, things are going well. Very busy!
Mike_Summey Al, we’ve missed you, but you obviously haven’t been taking a typing class while you were missing. Ha!
Al Lee Fat fingers!
Mike_Summey Hi zert
Mike_Summey There’s Roger Dawson
Mike_Summey Hi broses
zert Good Evening
Al Lee Roger, too? What a treat!
rosebud Good evening, everyone.
santo hi, Roger
broses9 hello
Mike_Summey rosebud, anything new with you?
jfoice1 Hi, Roger
Roger Dawson Hi everyone, and thanks for the compliment Al!
rosebud Yes. I’ve made some offers which have been rejected!
Mike_Summey As I said in today’s chat reminder, I bought 13 houses last week. Things are really starting to get good for long-term investors.
Mike_Summey Hi Scoty
Al Lee Roger, keep count of those compliments so we can settle my bill at the end.
rosebud And I attended CREIA’s seminar this past weekend on turbocharging your IRA with real estate investments.
Roger Dawson Al do you take Bear Sterms bonds?
Mike_Summey rosebud, how was that?
Al Lee Roger, I’ll give you Monopoly money for your Bear bonds
zert Mike: Can you talk a bit about accelerating payment by making the next months princ payment
rosebud It was great. I just wished I’d had this kind of info 20 years ago.
Mike_Summey ramisdon, welcome to the chat. Don’t let all these loudmouths keep you from jumping right in.
scotyl10 Hi I am up in Bangor ,Main
rosebud Hey, Scoty, in Bangor, Maine.
Al Lee Bear Stearns was a major casue of the sub-prime lending collapse. I think they deserve to flop. Sad thing is that the top exes will still keep the 9-digit salaries they got paid.
shaneb hello everyone hello mike
Mike_Summey zert, if you pay a mortgage payment for this month and add just the principal portion of the next month’s payment to it, it will move you 2 months down the amortization schedule.
shaneb mike since the last chat i have read all your books they are very good
Mike_Summey Hi shaneb
Roger Dawson I’m amazed to read stories in the newspaper about lenders being surprised that their investments tanked. We were warning against adjustable payment mortgages two years ago in this chat.
zert Mike: Do you then cancel out the very last payment?
rosebud I’ve missed the last three weeks due to working out of town and I’ve been having withdrawal.
Al Lee Roger, 5 years ago on my radio program
Mike_Summey Thanks shaneb. Now that you’ve read them I’m sure you are ready to get started, right?
Mike_Summey zert, yes that is correct.
Al Lee and since 2001 in my book!
shaneb yea as i said before i have 4 houses already, i have used my personal credit though for them and know i need to get more buy my credit is maxed out so i need to so seller financing
Roger Dawson We missed you Rosebud
rosebud Thanks, Roger. I sure missed y’all.
Al Lee shaneb, if your houses are cash flowing, you just need to let them season fo rabout 6-12 months and you will have more buying power again.
Mike_Summey shaneb, when you talk about your personal credit, are you talking about a HELOC or other line of credit?
shaneb yea i have had them for 2 years
zert Thanks Mike - I don’t know why such a simple concept is giving me such a brain cramp
shaneb im talking about getting financing using regualr mortgage, which use your personal credit report
rosebud I strongly recommend the IRA seminar to anyone younger than, say, 55 who has time left to really take advantage of maximizing their investments by using IRA funds.
Al Lee shaneb, you can get dozens of loans the way you are doing it.
Mike_Summey shaneb, if you use a line of credit to but a house, you should be able to refinance it and pay back the line of credit so you can do it all over again.
Al Lee shaneb, so long as they cash flow
Mike_Summey zert, in the beginning, you may be able to advance yourself down the amortization schedule for only a few dollars.
shaneb when i bought my houses i bought them with 100 percent finanicng programs, mmy houses cash flow but they only have about 10k in equity in each one.
rosebud Santo, how’s the market in Buffalo? Still strong?
Mike_Summey Hi Dean
DeanC Hey !!
santo Al, still having a problem with s.s.—the dept of vital records want my wife’s mothers maiden name, which we don’t know–whenever my wife asked her what it was years ago,she told her it was none of her business
Mike_Summey shaneb, as Al said, you may have to let them season for a year or so before you can buy more. Just be patient.
Mike_Summey Hi Tommy
zert Mike: that’s why I started looking at it with a purchase that I am closing in next month. The first number of princ payments are pretty low, and I will have an excess NOI even after increasing my reserve numbers
rosebud SAnto, where’s the marriage license recorded? That should list the maiden name.
meowka01 Hi Mike and Roger. I would like both your opinions on this if you don’t mind. I have a strategy to purchase larger apartment buildings (20-200 units) by using either a land contract, “subject-to”, or owner carry in conjunction with: a quit claim deed held with an escrow agent
shaneb also as a good resource i am reading a book called ” streetwise” with talkes all aabout seller financing, its a great book and its by W.eddie speed
tommyd Hi Mike, great to be with you
mikel Do you create different LLC’s for each property? If not, how many properties do you keep under each LLC? I’m thinking in terms of liability. Thanks.
santo rosebud, how about a 14 unit building for $269.000
rosebud Wow! Wow! All I can say is Wow!
Al Lee santo, I do not know the answer to your SS problem. That is a tough one. Surely someone in the administration can help get that solved.
Mike_Summey meowka, run from it as fast as you can. Those tactics will only get you in trouble.
Mike_Summey Hi David
davido greetings from the waters of the san francisco bay
shaneb al lee and mike s i have owned my properties for 18 months but with the mortgage industry the way it is i cant get financing for new ones, what do you reccomend?
Mike_Summey mikel, I have several properties in each LLC. I use LLCs for estate planning purposes more than for liability protection.
santo Al, they are giving us 60 days to appeal, and then it’s over with
Al Lee shaneb, I once had a mortgage company tell me I could not get another mortgage because I already had over a dozen. I went to another mortgage broker who knwo more about investor loans and he got me a dozen loans in one month. Different lender shave different criteria. You need to deal with a broker who understands investors.
zert hey Doug
santo Al, that’s $11,316 a year down the drain
Doug_in_CT Looks like a pretty good crowd in here tonight
davido mike congrats on the 13 properties. that’s 10 more than i’ve ever bought. 
:)
Doug_in_CT hey Zert
zert Doug - what part of Ct are you from
Mike_Summey shaneb, I recommend that you be patient and look for additional deals you can buy with seller financing. You might also look to open relationships with additional banks. Maybe you are at the comfort level of the one you are currently using.
Al Lee santo, it you were an illegal alien you could claim benefits without having to prove anything because that would be discriminatory. Our system is upside down
Doug_in_CT We are east of Hartford and North 17 miles from the banks of the Mighty Connecticut River
shaneb hanks al lee, i am a mortgage broker and i used to specalize in investment properties but know they are so tuff on them. how much money did you put down on each when you got the 12 in one month?
mikel Mike, do you recommend getting leads on pre forclosures from on-line sources?
Al Lee santo, there are lwyers who specialize in social security claims. Have you talked to one?
shaneb thanks mike
DeanC Hey Mike, In reference to liability, alot of investors are directing me to more insurance rather than LLC’s. What are your thoughts?
Mike_Summey Thanks david! I was very patient during the recent runup in prices and built my cash reserves and borrowing power. Now that things are moving in the other direction, I’m set to make some very good deals.
Mike_Summey Hi Daisy
Al Lee shaneb, Aha! I always put 20% down, so I don;t have much problem. That might be the difference.
santo AL, there only want to talk to you if it’s a disability claim
davido mike was thinking about the homes you have as income and the recent stock market gyrations. one never knows what is going on in stocks - bear stearns was good last friday and on sunday night the company sells for $2 a share. seems like if you invest in houses properly, you don’t have to worry about unknowns like stocks.
zert doug: I was in Hartford a few weeks ago when you had the 12 inches of snow and ice. Had a meeting in Berlin
Doug_in_CT What kind of Meeting Zert?
shaneb al, you are right i can get financing if i put down 20 percent i just dont have the 20 percent…
Mike_Summey mikel, there are a number of ways to get foreclosure information, but I’ve never focused on just foreclosures alone. By looking at all options, I’ve found dozens of deals that were passed up by people who just focused on one aspect of investing.
zert client for the J.O.B.
Mike_Summey Hi Rod
Rod_NY Hi Mike
Doug_in_CT Gottcha
shaneb al, did you have the seller finance the 20 percent or did you put it down yourself?
Al Lee shaneb, getting 100% financing today IS a hard one. No question.
Mike_Summey david, you are so correct.
shaneb oh it doesnt exist anymore
DaisyNH7 hey mike
zert got stuck, wound up driving home the next day
Al Lee shaneb, I paid it myself. I use money from the rents of old houses to pay donw payments to buy new houses.
rosebud Penny, what are you up to these days?
Mike_Summey Yes Daisy?
davido wells fargo mortgage told me the other day that for investor homes, you have to pay PMI unless to the loan to value ration is at 65%. that means you pay PMI even if had 20% down. times have changed.
DaisyNH7 I mean Hi there Mike
Penny not a lot rosebud. Glad to see you back in the chat, I enjoy reading your input.
shaneb ok got yea, so thre must come a time when you make real good money from the rents and it is enough to accumulate into downpayments and thats when the fun must begine, right know i am jsut waiting for that time
Mike_Summey david, have you asked the bank about keeping your loans in their portfolio rather than selling them. the rules are totally different if they will do that.
Al Lee shaneb, However, I soemtimes negotiated for the seller to pay an upgrade or repair allowance at closing. They pay it to my managment company so the cash never comes to me. It is not allowed for the cash to come to me, but OK for it to go to the managers (who apply it to my account).
Jeff S CPA wow… PMI unless 65%.. that’s crazy
rosebud I’m still such a novice that my comments have very little value, I’m afraid.
rosebud But thanks, anyway.
Penny rosebud, keep trying on the offers. Remember what Mike & Roger write about, persistance is the key.
davido i have not asked that mike. i think the loan was orignated through wells fargo and i am still paying them. it’s only two months old and they haven’t sold it yet; don’t think they will.
meowka01 Hi Mike and Roger. I would like both your opinions on this if you don’t mind. I have a strategy to purchase larger apartment buildings (20-200 units) by using either a land contract, “subject-to”, or owner carry in conjunction with: a quit claim deed held with an escrow agent and wordage in the contract providing for a management company to collect and distribute the funds for the note, taxes, insurance etc. thereby increasing the Sellers comfort level. The quit claim deed in escrow would also profide more comfort to the Seller knowing he would not have to go through a full foreclosure process if the deal didn’t work out. I am trying to create a no money down offer that has a greater chance of being accepted even with a buyer and Seller who don’t know each other. Do you like this idea? How could it be improved? Would there be a better method without partners.
davido Jeff - that’s one bank, wells fargo. not sure about others.
rosebud Oh, definitely. It was just so true to what Mike and Roger say in their books about making lots of offers and getting lots of rejections. Sooner or later one will fly.
Mike_Summey shaneb, think of it as a plane taking off. You have to give it full power in the beginning just to get rolling. Then as you pick up speed you eventually get enough to lift you off the ground. Then you keep applying full power until you reach crusing altitude at which point you can pull back on the power and coast. This is not a get-rich-quick proposition.
Jeff S CPA yea davido… if all of them did that i would be SOL
zert rosebud - we all were new at one point. God knows that I still ask Mike, Roger and Al basic questions. This is what the chat is for and why they are great
Al Lee But, it is a get-rich-for-certain proposition!
santo Al, I am getting sick over this s.s. mess the chest pains are more often now, and my doctor want’s me in the hospital for a cardio procedure–but I have to complete my wife’s cancer treatments first–I drive her to the hospital every day
rosebud There’s so much sound advice here (no pun intended).
Roger Dawson Meowaka01: I wouldn’t do a land contract period. That’s where the seller holds the title until you finish paying. I’ve never heard of a quit claim being held in escrow but it seems like you’d be giving up a lot of your legal rights.
shaneb hahahaha al, how long would you say it took to pick up steam to the point where you could buy more houses from the rents of the other houses
Mike_Summey meow, I said earlier I would run from a deal involving land contracts, subject to financing and quit claim deads. There’s way too much risk for me.
Al Lee santo, I really feel for you. I know how frustratoin that can be. I wish I could come up there an help.
DeanC Mike - May I ask how many offers you made while buying your 13 last week?
rosebud Santo, it’s not worth your health. Please consult a lawyer, check public records. There must be a record somewhere of your mother’s maiden name. No aunts or uncles?
Al Lee shaneb, not as long as you might think. Santo started a year ago and has a very nice cash flow income already. He has a lot of problems with social security, but I think his rent houses are going along fine.
Mike_Summey Hi magre
Rod_NY Mike, Roger… great job on the latest book. I’m re-reading it again tonight. I plan on using some of the tactics in a negotiation tomorrow.
shaneb nice well my houses i go 100 percent financing and i make about 1800 dollers a month after expensise each house is worth about 185k, but for some reason each month i cant seam to save money becouse of repairs and stuff
santo rosebud no aunts or uncles
Mike_Summey shaneb, it took me a year to buy my first house in 1972. Then I bought 2 in 1973, 4 in 1974. I bought 65 in 1993. It takes time.
shaneb nice
Al Lee santo, if it makes you feel any better, those chest pains might only be anxiety. That is often mistaken for a cardio problem. With the stuff you are going through I would say that is a likely situation.
Mike_Summey Dean, I only made 5 offers that were not accepted. Things are getting much better for long-term investors.
DaisyNH7 Mike how many do you have in total? Have you ever sold any?
Mike_Summey Thanks Rod
meowka01 Mike and Roger. How would you purchase 20-200 units with no money down. Straight owner carry?
Al Lee Don’t ask Mike how to sell a house. He has never done it.
rosebud Santo, got to be a public record somewhere of the marriage. Did her dad die first (I guess)?
Doug_in_CT Be careful with Al’s medical diagnoisis, I am not sure he has a license to practice on-line.
santo Al, I had a angiogram last week—a 50% blockage
Al Lee Doug, you are right, I am no on-line certified.
Mike_Summey Daisy, I have several hundred. Never sold one…don’t intend to.
Al Lee santo, that is not anxiety, then.
zert Al - On-Wine Certified
zert santo - good luck
Al Lee Yes, that is my problem. I don;t have any wine!
shaneb also all my houses are collage rentals and the kids beat the houses up, maybe thats why i have so many repairs
santo rosebud the husband was thrown out 6 months after the marriage
Roger Dawson That’s good Zert!:)
shaneb do any of your guys have any collage rentals
broses9 Are there any online resources with truely current information on pre-foreclosures, foreclosures and reo’s?
Mike_Summey meow, I’d have to have much more information to give advice on a deal like that. When you say 20-200, how many exactly are you talking about?
rosebud Santo, then there’s also a divorce record somewhere. Do you know where that happened?
mikel Mike or Roger, do you need state specific offer to purchase forms or can one form apply to any state. Most realtors I have spoken to are reluctant to hand these over. Any other locations availabile for a good form?
magre shaneb - how tough are college rentals?
santo rosebud somewhere in mass.
DaisyNH7 Broses9 -I work for a bank and I can get you the website on next weeks chat for our bank
Doug_in_CT Shaneb, Business Week had a great on-line article about the value of real estate in college towns. They noted they tend to be more stable than non-college
shaneb well they alwasy rent a yar early, so im never worried about vacancy but they beat the house up
meowka01 Don’t have one in mind but I am trying to come up with a first offer strategy that give enough security to the Seller to hand over larger properties.
magre so up the maint.
Mike_Summey shaneb, do you have the parents sign for the students and agree to be responsilbe for any damages?
shaneb yes
broses9 that would be great. Thanks.
shaneb at the end of the year i alwasy end up keeping there deposits
Roger Dawson Broses9: In our latest book “Weekend Millionaires Guide to Negotiating Real Estate” we have a whole chapter on how to locate bank owned properties.
Mike_Summey mikel, the Offer Generator program will print letters of intent that are good in all states. Once a letter of intent is accepted than you can transfer it to a contract for the state in which you operate.
davido increase the deposits
rosebud Santo, you can find out what public records are available in Massachusetts and where the state records are. There should be a state repository of some sort, which should lead to the county. Were they also married there? There will definitely be record of the marriage, which will give maiden name and names of parents.
broses9 I’ll have to check that one out. Thanks.
shaneb yea i need to do that
fwp Mike, Where most of your deals found through MLS or do you run ads?
Doug_in_CT shaneb, I have a link to the article on my new real estate investing blog: http://dougsrealestatemusings.blogspot.com/
shaneb thanks
santo rosebud we tried all of that with no luck
magre what would be suggested deposit for college rentals? rent x 2mos?
Mike_Summey fwp, none of my deals were through multiple listings. I found them all …or I should say some of them found me.
shaneb right now i am getting last months and one month security
magre thanks
rosebud Santo, if she was a church member, there may be a church record. Did you try that? Military records for the husband of six months? Newspaper account of the wedding?
santo rosebud, ever hear of going postal at a social security office
Mike_Summey magre, in addition to security deposit, get the parents to sign a separate agreement in which they agree to be responsible fo any and all damages to your property doen by their children.
rosebud Santo, at least you still have your sense of humor!
Mike_Summey Hi Joe & EMP
mikel Mike, I guess the question is where can I get a legal offer to purchase form for NC other than from a realtor?
Al Lee santo, the Church of Latter Day Saints is very good about keeping and finding old records. They might be able to help you.
magre thanks — looking at rentals in college town, but wary of maint
EMP hi
santo rosebud, no church records mother did not bleive in that
shaneb marge is there annything else i can help you with all my rentals are in albany new york
Mike_Summey mikel, the Offer Generator prints the letter of intent. Once that is signed, you can obtain a NC contract form from the Board of realtors, some office supply stores and from your attorney.
rosebud Mike (not Mike S), James W. Williams Company used to print deed, deed of trust and note forms for legal offices. I believe they were located in Winston-Salem or Wilkesboro. Maybe they are listed on line. Haven’t worked in real estate law firms in years.
Al Lee santo, I do not think it matters whether she went to church. I think they have lots of records. The is also called the Mormon church
Doug_in_CT I have rented to college students at the University of Connecticut in Storrs and found they are a lot like other tenants, some are good and some are not. I did have a few very excellent, responisble college student tenants.
Roger Dawson With college rentals you need to get your years rent covered in nine months to protect you against having a three month vacancy in the summer.
Mike_Summey Hi Lcaseysa
magre not at moment — first time in chat, but will be back — I wasn’t sure I wanted to bite off rentals to college students, but it sounds do-able
shaneb in albany they rent all year round
meowka01 Mike, Roger: So perhaps the best method th purchase 100 units would be partnerships if you don’t have the cash?
Doug_in_CT same here in CT
shaneb doug, do you have alot of collage rentals in ct?
shaneb also do you have a property manager?
Mike_Summey santo, the Morman Church has extensive archives in Salt Lake City. My brother used to be the traffic engineer for the city and he traced our family history back hundreds of years using their resources.
santo rosebud–I have to lie down now the pains are here again-nite all
fwp Mike, the ones that found you were by word of mouth, ads or networking?
rosebud Santo, take care and good luck.
DaisyNH7 mike-in the beginning what criteria did you using for searching? or was is strickly by price?
Al Lee santo, goodnight. And I wish you good luck, too.
Doug_in_CT I have single family houses (all in very good shape) — three different houses and I would say you really have to check them out….like all tenants.
Doug_in_CT I do not have a property manager Shaneb — I hope to one day soon.
Mike_Summey fwp, they were from people who kinw what I do. After over 35 years of buying homes in this area, many people know about me. That’s an advantage that only time can give you.
shaneb how many homes do you own?
Doug_in_CT 10 and counting
shaneb wow awsome
davido doug when did you start?
shaneb ngrats
Doug_in_CT I started with my former residence in 1998
rosebud ngrats?
shaneb doug, i woudnt mind showing you all around albany and you could show me around ct
shaneb congrats
Mike_Summey Daisy, in the beginning I used the MLS. I just found houses in the price range I was interested in buying and started making offers…dozens of the. It took me an entire year to buy my first property.
Doug_in_CT I heard that Binghamton, NY was up 16% over last year — that article is also referenced on my blog.
magre this may have been covered already, but… any ideas for tracking down absent owner?
davido doug - how did you buy homes before reading Mike’s book? was it similiar?
davido what’s your blog doug?
rosebud Magre, tax records should show owner info.
Mike_Summey Doug, you need to get a manager. It will free up a lot of time to look for more deals and you won’ thave to deal with tenants.
magre I have name and that kind of thing, but he’s moved out of state — neighbor says he went to NC
shaneb doug, i dont even know who my tenets are , having a property manager is key
davido doug - get a manager. i got one last month and i only have two properties. it’s the future!
magre but that’s as far as I’ve been able to go with it so far
DaisyNH7 Mike-if people are coming into my bank and needing to sell and it is out of my price range would you like me to send you an email with the info?
Al Lee I need to get going now. Famil calls!
Al Lee odnight all.
Al Lee Goodnight
rosebud Magre, tax records will know where he is or the taxes will be delinquent, in whic h case you may be able to pick it up for the back taxes.
Mike_Summey Hi chase
chase1965 Hello
Doug_in_CT When I read Mike and Roger’s first book, (The Weekend Millionaire) it was like drinking a soothing tonic. They were telling me to do, exactly what I was doing. Patiently wait and watch the beauty of what time and patience will do to your assests if you take the long term perspective.
magre ahh! good to know
Roger Dawson magre: forgive the commercial but we have a whole chapter on locating property owners in our latest book, “Weekend Millionaire’s Guide to Negotiating Real Estate.” I probably have the title wrong, but Mike will correct me.
Mike_Summey DAisy, I’d be glad for you to do that.
meowka01 Mike, Roger: What factor do you most not like with regards to land contracts and “subject to” arrangements? So owner carry is the way to go for 100 unit apartment buildings if you have no money?
magre it’s been a couple of months since I checked with them.
magre roger, no problem. I’ll get the book, too — I really enjoy your negotiating techniques
Mike_Summey Hi alex
magre …am actively using on current house I’m looking at
alex Hi, sorry, I am late.
meowka01 Mike, Roger: What factor do you most not like with regards to land contracts and “subject to” arrangements? So owner carry is the way to go for 100 unit apartment buildings if you have no money?
Roger Dawson Subject to is illegal. You might get away with it for a while but the bank could call the underlying loan anytime they want or charge you points to assume the loan.
Roger Dawson With a land contract if you miss one payment the seller could take the property back.
DaisyNH7 For all the time you and Roger help all of us every monday night it is the very least that can done for you guys. Thank you for all you guys do!!
davido mike - when you were starting out did you ever borrow from a credit card to put down money for a house? some rates are very favorable today and last up to a year.
Roger Dawson Our pleasure Daisy!
meowka01 Roger: if you have no skin in the game would that be worth the risk?
Mike_Summey meowka, a seller who insists on selling “subject to” or on a land contract or other such gimmick may be setting you up for failure. There are so many problems with these type arrangements that I couldn’t begin to address them all in this forum. If a deal won’t work without using tactics liek these, Id recommend you stay away from it.
davido meowka - one thing i learned is that you should not force it to work. that means if it doesn’t fit within your investing guidelines, don’t do it.
fwp Thanks Mike, I’ve only reaqd your first book and it’s a bit dog earred from use, love the investment stlye and negotiating techniques. Are lease options a way to acquire properties without much cash?
Mike_Summey davido, no I’ve never borrowed from a credit card. I found other ways to get money. I used a lot of seller financing combined with bank financing, but not the way most people think. A small bank loan combined with a large seller second mortgage works quite well to get full financing.
Roger Dawson Mwowka01: I can’t figure out how you’re going to break even or better with no money down. You’d only find one that would in a really bad area of town.
meowka01 Roger: land contract could not be set so that one missed payment doesn’t end it but two or three, etc.. Isn’t the devil in the details? And couldn’t the devil be written out of the details?
mikel Mike, have you ever bought houses from wholesalers, or have you found that that you can’t make the numbers work on these types of properties?
rosebud Meowka: you really should listen to Mike and Roger and reconsider this “deal.”
Mike_Summey fwp, if you liked the first book, you’ll love the others. Lease options are one way of acquiring properties without having to come up with a big down payment, but hter are many other ways also.
meowka01 I have seen 50-100 units in need of renovation or high vacancy or in bad neighborhoods.
Jeff S CPA Talk to you all next week, time to get to the Pub!
davido my boat has arrrived to my destination. catch you guys next time.
rosebud I’m cashing in, too. Goodnight, all.
Mike_Summey mikel, I’ve bought several properties from wholesalers. As much as I hate to admit it, I can’t find all of the deals.
Mike_Summey meowka, do you own any single family homes now?
meowka01 A distressed property could be acquired and have a positive cashflow if you do the renovations
Penny ditto for me as well. Early , long day tomorrow. goodnight
meowka01 I own 35 units from 3-10 in each building
broses9 goodnight
DaisyNH7 The husband is telling the baby to take the cat out of the dryer, I have to go!! Thank you again for a great chat
Mike_Summey Goodnight Penny
zert nite Penny
Roger Dawson Goodnight everyone. See you next week.
zert Happy Easter everyone - Thanks Mike, Roger, Al
shaneb night all
shaneb see you nexr week
fwp Thanks, Good Night all!
zert Doug - nice Blog
meowka01 All the building are undercontract and to close shortlty except the 10-family which I will hold. After the sale I will have held some notes, so little cash will come to me at closing.
mikel Mike and Roger, I’m signing off. thanks for the info. - Go Heels!!
Mike_Summey meowka, as someone earlier said, if you have to stretch to make a deal work it may not be work buying. It only talke one big deal to drag down a lot of very successful smaller ones.
meowka01 Thank you Mike
Mike_Summey I’ve got to run also.
Mike_Summey See you next week.
meowka01 Goodnight
Mike_Summey Have a Happy Easter, I’m heading to New Orleans with my sones for the holiday, but I’ll be here next week.
Doug_in_CT Thanks zert
zert np, I’ll shoot you an e-mail from your site
zert anybody hanging around?
magre came in way too late and have to read the previous
Doug_in_CT I am still here Zert? Where is you location again?
zert Rochester
Doug_in_CT Oh yeah. Not too far away. Do you still have a lot of snow on the ground?
zert yup - in fact it snowed yesterday
Doug_in_CT Snow is long gone here.
Doug_in_CT What is your occupation?
zert how long did it last after that storm? it was pretty bad out when I was driving to the Airport
zert Project manager - technical training
Doug_in_CT We get a lot of rain here in the winter. I found that nothing gets rid of snow as fast as a good warm rain.
Doug_in_CT How many properties are you working with now?
Doug_in_CT Zert, Did you die on me?
zert no sorry
zert had to put my son to bed
Doug_in_CT I have a couple of school age kids also….so I know what you are dealing with….Mike and Roger are beyond all that.
zert 4 properties currently, closing on another early next month - how about you?
Doug_in_CT I have the 10 houses and 1 four family apartment.
zert I set a goal of 5 properties in 3 years. It will be 19 months since my first purchase
zert wow, you have been busy!! how is the 4 family?
Doug_in_CT So the goal is in sight…
zert after I close it will be 5
zert looking for #6
zert traditional bank financing was difficult this time though
Doug_in_CT The four family has been one of my bigger challenges. I find the tenants in this “little be rougher” neigborhood, tend to be more challening.
Doug_in_CT I have notice that the bank financing has moved into a whole new more difficult period.
zert ahh - did you ever get to do the minor rehab that you wanted to?
zert The financing limits and rules have made it tougher but not impossible
Doug_in_CT No, I have almost always found a nice….”ready to move in” type property selling at a little bit of a discount to the market.
Doug_in_CT There is some real uncertainty in the market right now, shared by buyers, bankers and investors……it is tough to get in there and go strong against the grain.
zert my last purchase was a forclosure, it will take minor work to get it in shape but not a major task - painting, replacing pipes, fixtures, stuff like that
zert I am seeing better deals now than 2 months ago
Doug_in_CT same here.
zert my properties are lower cost than where you are
zert rents 650-800 purchase price 40-60k
Doug_in_CT I get tired of working with mortgage brokers. I have invested a lot of time with many brokers hoping to build the long term relationship….I have gone through 5 or 6 ….soon they seem to just be unable to do the deal. They move, they get ill, they no longer have the programs, they just get where they can’t make it happen any more.
Doug_in_CT yeah, the average 3 bedroom 1 bath house here is $175,000
Doug_in_CT Usually these are 1000 sq ft to 1200
zert some of the brokers are leaving the industry since they work on comission. I have used 2 locations , they now know me and give me what I need. I probably could get a 1/4 point somewhere else but they get the deal done
Doug_in_CT If you can buy at 60K and rent at $800 I think you are in the “money” as far and Mike’s formula.
Doug_in_CT My rents here are $1,400-$1,800 for the sfhs.
zert Good rental in the city is 1000-1100 sq feet, 40-60,000 will rent for 650-800. Decent areas, there are “better” NOI deals but in not so desireable locations for my taste. Suburbs might go to 80,000 - 100,000 for 900 rent. Value is in the areas surrounding downtown
zert 14-1800 for 175,000 puts you right on the cusp of the 100 to 120:1 rule of thumb
Doug_in_CT You are using a property manager right?
zert I have really been looking at paying down the property the past few days. First 3-5 years of princ is really low. Even with inceasing my reserve amounts, I have enough NOI left over to pay down. Trying to balance and weigh paying down and saving for another purchase
zert Yes I have a PM
Doug_in_CT I can’t see paying down the mortgage, in light of increasing inflation. I think you want to be saving as much as possible for the next purchase.
zert maybe, but having additional equity gives you leverage
Doug_in_CT This is especially true if you are finding the better deals now
zert you are probably right, however I just hate having debt - even if it’s good debt and secured
Doug_in_CT I know the feeling….but I think we just have to get over it.
Doug_in_CT Do you work 40 hours at your JOB?
zert more like 55
zert plus some travel
zert let me know if you are ever interested in some smaller sized opportunities around here. If you have some equity, you should be able to pick something up with little or no financing
Doug_in_CT My job is as computer consultant for small businesses. Because I am the owner I can go out on my own schedule and switch into property investor, property manager mode at the drop of a hat.
zert that’s a definite benefit. I had a similar level of freedom but I changed companies and gave that up . But was a great trade off
zert I would look at a PM unless you like being on call and Mr. Fix - it
Doug_in_CT If you are putting in 55 hours at the job and still finding time to find your properties you are hustling pretty good.
zert slow and steady like the turtle.
zert Getting pretty tired and still have a few things to do, so I’m logging off
zert Have a great Easter, talk to another time
Doug_in_CT And I forgot, managing a family too. Well have a good one, I will probaly see next week in the chat room.
Doug_in_CT Good night!
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