Final Chat Transcript – December 5, 2011

Posted on December 6, 2011

nspollard what’s up Stanley?
stanley This day, how are you nspallard?
nspollard great getting lots of things done
nspollard waiting for the chat to start
stanley Yea I’m a bit everywhere myself. This is my first chat though, how about you?
nspollard my second
nspollard I’m in Georgia, I’m a realtor and auctioneer
nspollard and real estate investor too!
stanley Hmm, I’m in Maryland. I’m real estate investor, life coach and a published poet.
nspollard my early life was enjoyable in Baltimore and Virginia Beach
stanley What made you leave?
nspollard my mother and father divorced, and my mother brought me and my sisters here
nspollard I joined the Navy and came back and settled here
stanley Do you like it in Georgia?
stanley I must say thanks for the service of this country!
stanley I have quite a few people I know leaving Maryland for Georgia.
nspollard thanks and yes and no
nspollard the weathers fine
nspollard but I want to get away from so many people
stanley lol And you’re welcome.
stanley Why is that?
nspollard It’s crowded and I want to do a little hunting and fishing later in my life
nspollard but I do think many northerners will move to Georgia to retire
stanley Do you live in a specific city or is the whole place crowded?
stanley I also agree with you that they will.
nspollard I live about 17 miles from Atlanta in a small town called Duluth
nspollard Duluth and Norcross are my farm
stanley Oh okay, I’ve never been but I hear good things.
Cuti Hi
stanley Welcome Cuti!
Cuti It is my first time…
Cuti It is my first time
nspollard that was quick
stanley lol very quick!
nspollard hi Cuti
Cuti1 hi
nspollard ok hi cuti1
Cuti1 It is my first time. Good evening everyone
Mike_Summey Hi everyone. We’re a bit early.
Mike_Summey Hi Cuti1
stanley Hey there Mike! Nice to meet you!
nspollard Hi Mike
Mike_Summey I’m here a bit early, so if you have any questions for me now is the time to get them answered before we get too busy.
Cuti1 Hi everyone, nice to meet all of you…
Mike_Summey Hi Stanley & nspollard
Mike_Summey Cuti1, where are you from?
stanley Same here Cuti1
Cuti1 I live in San Jose, but I’m investing in Sacramento.
Mike_Summey Any you too, Stanley & nspollard?
stanley I’m in Maryland
Cuti1 Mike, what do you think about buying old houses between 1960 and 1970
nspollard Duluth, Georgia
Mike_Summey uti1, just be careful about lead paint and asbestos. Personally I think you would be better off sticking to ones built after 1978.
stanley Are there any specific resource you use for contracts?
Cuti1 I bought four houses, two of them are 1979 and two of them are 1989, but I see a great deal if I buy the house in 60-79….
Mike_Summey I just clsoed last week on #50 in the past 24 months. Got another one under contract today.
Mike_Summey Hi rich
rich Hello Mike
nspollard Mike my threshold count is 56 so far
stanley Hey Rich!
Mike_Summey Cuti1, as I said, just be careful. I’d advise having an inspection for lead pait & asbestos done before buying ones that old. There might be a good reason why you can buy them so cheap.
Cuti1 Thanks..
rich Hi stanley
Mike_Summey nspollard, that’s awesome!
Cuti1 nspollard, it is amazing. How long does you invest?
Mike_Summey I like it when we get new people in for the first time.
stanley I’m still kind of new to real estate investing, what bit of advice would you give me?
nspollard Cuti1 I’m brand new
Mike_Summey Cuti1, I’ve been at it for over 40 years and have never sold a property I have purchased.
Cuti1 I just started 2010
Mike_Summey Hi Carleton, glad you could join us.
Mike_Summey Hi Stan
nspollard yeah
stanley Hi Carleton
Stan Hey Mike, Carleton
stanley Hey Stan
Cuti1 Hi Carleton
Stan Hello
Carleton_Sheets Thanks, Mike. This being the final worldwide chat, I wouildn’t want to miss it.
Mike_Summey We should have several more joining us shortly.
Jan-Erik Good evening all
Mike_Summey Hi Jan-Erik
stanley Hey Jan-Erik
Carleton_Sheets I’d love to know where everyone is from.
stanley Maryland
Jan-Erik Williamsburg, VA
nspollard what’s the best way to invest with little or no money down?
Stan Mike, I have good credit and a good job, but I currently rent. I don’t have much cash, so I was wondering the best way to get cash to make offers on REOs
rich Salt Lake city Utah
Carleton_Sheets Stan, what about making an offer on a home owned by a motivated seller and trying a lease with option to buy.
nspollard Duluth Georgia
Mike_Summey Stan, when I started, I didn’t ahve much cash either so I had to make offers that would work for me if one got accepted. It took me nearly a year before I found a seller willing to sell the way I wanted to buy. This is a numbers game and it requires patience, but once you get started it is very exciting and very rewarding.
stanley Hi TT
Mike_Summey Carleton, good answer. See everyone, thats why I asked him to join us tonight.
Mike_Summey Hi TT
TT Hi Guys. I’m just glad to be here!
Stan Ok, I am a member of a credit union and they will finance 90 LTV, if a get pre approved for a loan will that be the same thing as cash offer
Mike_Summey Hi Joshua
Joshua Hi Mike
Carleton_Sheets Take advantage of a situation where investors are buying REO’s and looking to make a profit. This approach might work with them. It would with me and I am buying REO’s frequently.
stanley Hey Joshua
Carleton_Sheets Stan, yes!
Stan Ok great, thanks Carleton
Mike_Summey Stan, its not the same as a cash offer, but close. Anytime you make an offer subject to financing, it is not quite as strong as a cash offer with no contingencies.
Joshua Mike, how’s business going?
Carleton_Sheets Mike’s right. Although if you have pre-approval it is largely the same.
Mike_Summey Joshua, very good. There are more deals on the market right now than I have ever seen.
Mike_Summey Hi Dena
stanley What’s the most successful tactic you’ve used when purchasing?
Dena hello
stanley Hi Dena
Joshua Mike, glad to hear. I just closed my 3rd for 2011. Would like for it to have been 4 or 5, but just been too busy with work, school, etc
stanley Good Job Joshua!
Mike_Summey Stanley, fortunately I am now in a position where I can make cash offers without any contingencies. I find that to be the most successful tactic. I had an offer accepted that was $11,000 less than another offer that was subject to financing. Plus, I can close on an all cash offer in a week if I have too.
stanley Thanks!
stanley I’m still kind of new to real estate investing, what bit of advice would you give me?
Mike_Summey That’s great Joshua. Imagine where you will be in 10 years if you can ONLY buy 3 per year.
Stan Mike or Carleton, if I am pre approve for a loan what do you think is the shortest time I could close a deal in?
Joshua My banks are starting to pull their financing, so I may be up a creek until I can find more banks willing to do loans.
Mike_Summey stanley….be patient! Don’t rush into a deal just so you can say you’ve made one.
Carleton_Sheets Stanley, picking up on something Mike said, be patient. Get to know your area geographically and look at many many homes until you feel you know value. Then start making offers. Do this for 6 months to a year and you’ll be a pro.
stanley Thanks Mike and Carleton!
Joshua Once CU I was using is up against their cap on commercial loans, backed by SFH collateral. Essentially they need to finance more true commercial properties before they’ll let me do another home.
Carleton_Sheets Stan, even after getting an offer accepted, it would be rare to close in less than two weeks.
Stan Thanks that at least gives me a time frame
Mike_Summey Joshua, try to open relationships with several banks. They are businesses just like any other business and they have their up and downs too. You don’t want to be locked into just one bank because you will have to ride their wave, not yours. Theirs may be going down when you want to go up and up when you want to go down. Having several is best.
Carleton_Sheets Excellent advice from Mike.
stanley What sort of contracts do you uses when purchasing?
Mike_Summey I have an announcement that I wil make in 15 minutes.
Carleton_Sheets Someone once told me that bankers tactics and attitudes are like bankers noses. they all have one and they are all different. I’ve never forgotten that.
stanley Hi Tony
Joshua Mike, completely agree. It’s been very hard to find any. I buy cash and then get a note on it after rehabbed and leased. Most banks willing to do this will only loan 60-70% of LOWER of ARV OR my cost. This uses up all my cash.
Stan Mike or Carleton, do you think I would be better off getting pre approve for a loan or trying to get a owner to lease option
Mike_Summey stanley, I use the standard contracts for the state in which I’m buying. I used to try to customize the contracts, but under today’s market conditions, the standard contracts work jsut fine.
Mike_Summey Hi Tony
Tony Hi everybody
Mike_Summey Joshua, don’t tell them what you paid for it. Use the appraised values.
Carleton_Sheets Stan, no reason not to try both.
Mike_Summey Stan, I agree with Carleton
Stan Ok thanks
Mike_Summey Stan, keep your options open and numerous.
Dena We are losing a renter in 6 months.. she is getting a habitat home. yeah .. so we have plenty of time to look for a good renter.. we usually just stick a sign in the yard, and get lots of people. is there a better way to get “good” renters?
nspollard my investors use creigs list
Cuti1 You could use craiglist or postlet/vflyer
Carleton_Sheets Dena, let your renter help you find one and you could afford to pay handsomely for him/her doing that. I pay as much as $500-1,000.
Mike_Summey Dena, I don’t know. I’ve never talked to a potential renter. I use professional property managers and have done so since my first purchase. I want to be an investor, not take on a second job that is full of headaches and pays very little.
Carleton_Sheets Amen!
Stan Mike I know you don’t like HOA, but it seems a lot of the newer houses have at least a small HOA fee. do you avoid these neigborhoods
Dena i am going to do that someday…. when i get old and tired of dealing with renters. 🙂
Dena I do love working on the houses and yard now though.
Carleton_Sheets Stan, I avoid condos now but a neighborhood HGOA hasnever caused me a problem. Mike….?
Carleton_Sheets HOA
Mike_Summey Stan, if it is a HOA that is only collecting fees to maintain roads in the development, that not as bad as full HOAs that want to dictate what can be done in the neighborhood.
Joshua Mike, the banks pull records when the title company does their due diligence and see that I have purchased it in the past 60-90 days or so. I don’t see a way around it?
Mike_Summey Hi Wayne
stanley What is the best way to find a property outside of just driving around and using the internet?
Stan Ok thanks guys
Wayne Hi Mike sorry I,m late.
stanley Hi Wayne
Wayne Hi Stanley
stanley Hi Charlie
nspollard find a realtor you works with investors
Carleton_Sheets Stanly, a good Realtor, underline good.
CHARLIE Hi everybody
Carleton_Sheets Hi Charlie!
Mike_Summey Joshua, I’ve asked my banks why they only want to loan me 70-80% of the purchase price when I buy at 60-70% of appraised value, but they are willing to loan someone who pays full price 80% of the appraisal when it may be several thousand dollars more than what they want to loan me. They can’t answer that questions.
Mike_Summey Hi Charlie
Wayne Hi Charlie!
Stan Mike, I am a new investor and want to buy my first house like the offer generator suggests, when putting offers in on REOs if I put a time limit on the offer will the bank pay that any attention. I need something to get me off the hook so I can put offers in on other properties the following week or so
Mike_Summey Stanley, a good Realtor is invaluable. Charlie, who just joined us finds properties for me. He can answer a lot of your questions.
Carleton_Sheets Mike, don’t you think in your scenerio, that the 80% person will live in thehome?
Mike_Summey Hi Penny
stanley Hey Penny
Wayne Hi Penny!
Penny Hello Mike, Stanely, Wayne and everyone!
Carleton_Sheets ….and hello Penny
Joshua Mike, I’ve asked the same thing. They don’t give me a good answer either, but they still won’t loan on ARV.
CHARLIE Stan if you put a time limit on the offer and you donet get a responce the offer is dead unless you want to revisit at a later time
Penny hi there Carleton,
stanley Have you had any problems with asset protection?
Penny hope everyone is well.
TT Mike, are you now finding opportunities in Buncombe County, and where do you see that area in the cycle?
CHARLIE HEY PENNY
Mike_Summey Stan, why not put a clause in the offers that reads, “This is one of multiple offers being submitted simultaneously. Buyer is an investor looking to purchase one property and will close on the firs offer that is returned accepted. Once an offer has been accepted, buyer has no obligation to close on any subsequently accepted offer.”
stanley Thanks Mike and Carleton
Mike_Summey Stanley, no I haven’t.
Penny Hi Charlie, feel like I know you through Mike.
Stan That sounds great Mike
CHARLIE Penny thanks we work well together, have question ask
stanley What should I do to avoid problems also?
Mike_Summey TT, I haven’t found anything in Buncombe County in several years. The market here is still way over heated and it will be some time before things come back to reality. That’ just my opinion.
Penny Not an investor Charlie–other than my own home—ust an innocent bystander
Mike_Summey I said earlier that I would have an announcement about this time.
stanley Yes Mike?
Tony I have a couple houses I need to replace the existing older furnaces and ac in. Is it worth upgrading to a 90 – 92% eff furnace to help offset the tennents gas bills ? Or is installing a cheaper 80% good enough ?
Mike_Summey Roger Dawson & I have decided it is time for us to retire and focus on our own investments. This will be our last online chat. We have been hosting these free chats for 10 years and like all other good things, it is time to bring it to an end. We have never charged a fee to participate, and have not used our subscriber list to peddle our products. We have truely enjoyed helping people and hope all of you and all of the rest of our subscribers take advantage of the wonderful opportunities the current times have provided.
Carleton_Sheets Tony, what is the differenc in hard costs and what will the savings be?
Mike_Summey Tony, that is your call. Is the warranty any better on one versus the other.
Stan Mike that is sad news, but I appreciate all you have done.
Dena that is sad news.
stanley Wow, my first is the last. I do want to thank you for the opportunity to be here. I wish you well on all that life brings.
Mike_Summey Everyone, I hope you will all take advantage of the great half price sale we have going in our online store. We still have a few remaining products to sell.
Dena Mike, i loved your newspaper articles a few years back…. do you have a book with those included?
Mike_Summey Hi krspack
Penny It is an appropriate time of year for your annoucement Mike and Roger. Just want you both to know the chats have been so appreciated.
Carleton_Sheets Amen to all that Mike has said. And with that I must say good night to all you folks that I will probably never meet but wishing you the greatest of good fortune, and in the case of Mike, I cherish our life-long relationship. See you soon, Mike! And best to you, Penny!!
krspack1 Hey Mike. Sorry am late. Had trouble signing in. What is the announcement?
Mike_Summey Dena, I do, but it is currently sitting on the shelf waiting for the publishing market to rebound. It has much more than just the articles.
Penny ditto Carleton. Have a wonderful new year. !
Dena what is it going to be called… do you know yet?
TT I will also say that I loved the newspaper asrticles. I remember many of the advice given in those articles, and i have tried to impart them to friends but as they say you can lead a horse to water…
nspollard Thank you, merry christmas everyone
Dena i really, really thought those articles were wonderful
Stan Mike where do you suggest we get advice, you have walked through the mine field and you can kinda direct us where to step and not step
Mike_Summey krspack, the announcement is that this is our last chat. Roger and I have decided it is time to retire. After all, we are both getting OLD! 😀
Mike_Summey Thanks Dena and TT
krspack1 Mike, I understand. The chats have been great. I mostly find myself reading the transcripts. Will your website stay active will all of the archives?
Mike_Summey Stan, everything you need to know is contained in our books, audio programs and computer program. We have held these chats as a way of giving moral support to our readers.
Mike_Summey krspack, we are looking into that.
Stan MIke thanks for everything and all your time
krspack1 Mike, I am assuming your email address will remain active as well?
Dena it was very good of you guys to give you time doing this. it is a wonderful way for people to be financially successful.. i appreciate your time
Tony I did not get a chance to ask Carleton Sheets if he is still buying real estate ? You do not see him on TV anymore !
Mike_Summey I wish Roger could have been with us to say his goodbyes, but he is in China. When he returns, we will discuss the possibility of having one more chat near the end of the month, but I can’t give you a definite answer on doing that at this time.
Penny Thanks again Mike and Roger for all the helpful tips and for truely caring for your fellow investors. I hope the future years provide much wealth and happiness for eveyone that has participated in this chat over the last 10 years. Goodnight all. May your season be bright and your New Year be filled with Magic. Penny
Mike_Summey Tony, Carleton, like Roger and I is not getting any younger, but I can tell you he is still actively buying. We discuss our acquisitions on a regular basis.
krspack1 Mike, thanks again for your support.
krspack1 Charlie, thanks for your input as well
CHARLIE Everybody it has been a good time answer question for all of you. Hope my answers helped you
Tony I love it. Gurus who are doing the business. Mike – do you have a goal of how many houses you want to retire holding ?
Mike_Summey If any of you don’t have the Offer Generator, get it by the end of the month. Don’t worry about whether or not you are computer literate enough to use it. Every step in the process has pop-up help screens that tell you what to do. Just place the cursor on the label and it will appear. It is really a great program.
krspack1 Mike, just checked on my order for OG tonight. Looks like it takes 5 business days for funds to transfer into Paypal. Sorry about the delay.
Mike_Summey Tony, my sons are now in the business with me and helping to gorw our portfolio. Someone asked me a few days ago how many we wanted to buy and I told them as many as we could find that would make money. I guess that’s my answer.
Mike_Summey krspack, it will ship as soon as we get notice. Thanks for the order.
krspack1 Mike, thank you
Tony Are all of your buys owner financed ?
Mike_Summey Tony, none of them are at this time, but I have had several in the past.
Tony Do you use private money investors ?
Mike_Summey I started another company with my two sons two years ago and we have purchased 50 properties since that time. I think they will continue to buy and will probably do much better in the long run that I have done…at least I hope so.
Mike_Summey Tony, no I have always used either seller financing or bank financing.
krspack1 Mike, the chat transcripts alone are valuable. It would be great if someone could bundle them together and make them available via download.
Mike_Summey krspack, great idea. I’ll look into that.
Stan Mike, If i use a heloc to buy a house should i use the interst rate on the heloc on the OG or the interest i would get when i get it refianced
krspack1 Mike, thanks again and hope to meet you sometime in the future. I am in Spruce Pine often and if you ever find yourself coming to Charleston, SC, I would love to know about it.
Mike_Summey Stan, use the rate of return you want to get on the deal. It should be a bit more than just the interest rate.
Stan ok
Mike_Summey krspack, what do you do in Spruce Pine?
krspack1 vacation, actually in Bakersville
krspack1 Mike, we were up there the weekend of Thanksgiving
Mike_Summey krspack, you mush have a vacation home there.
krspack1 Mike, love it up there
Mike_Summey must
stanley At this early stage, is it best to just get bank financing for every property?
krspack1 Mike, actually a good friend of mine has a home there
krspack1 Mike, vacation home
krspack1 Mike, I can not justify a vacation home in NC mtns at this point in my career
krspack1 Mike, but I can justify using one if available 🙂
Dena Bye guys, hope things go well for you… thank you,dena
stanley You too Dena
krspack1 Mike, when you get a chance, check your facebook page. Just sent a picture of us at Springmaid mountain in Spruce Pine
Mike_Summey stanley, if you are just getting started, you should at least ask for seller financing whenever possible. I’ve bought several properties where the seller had a small mortage and a large equity. I would make them an offer with enough eash to get them out of the mortgage and then aske them to carry a second for the balance. It is not hard to get a 20-30% loan when you can give the bank a 1st mortgage and then have the seller finance the balance. When that happens, the bank actually has two borrowers, you and the seller because the seller is not going to lose their second to a bank foreclosuer on a small second, plus the seller got the money for the first at the clsoing.
Mike_Summey Goodnight Dena! Thanks for joining us tonight.
Jan-Erik Thanks Mike (and Roger). Best Wishes on your next steps!
CHARLIE It has been fun and real happy investing in the future all
Mike_Summey Well, as they say ALL GOOD THINGS MUST COME TO AND END! It is now 9:00 PM and I will be signing off for the last time. Goodnight everyone. See you in the next life.
stanley You too Charlie!
stanley Goodnight!
krspack1 Mike, thanks and have a great night
rich Best of luck
CHARLIE Mike & roger thanks for your time once a month. It has been a great help. Best wishes in the future.

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