Monthly Archives: March 2007

Real Estate and Life in Kansas City

Just some meandering links to help you see what I’m reading…

This article is found in today’s Kansas City Star. From my own personal view let me say that what the United States is allowing to go on in the Sudan is absolutely terrible. Genocide is unacceptable. This article that you can read is great news for this individual, however. A true success story.

The housing/foreclosure crisis that is quickly setting in will have impact on you. No question about it. Even if you have great credit just one or two foreclosures in your neighborhood will help to further bring down property values. Columnist Steven Pearlstein of the Washington Post has written a column that I really can’t argue to much about. Worth your time.

Conversely, if you have cash right now you are KING! The market is opening up to you in big ways. Loans favor the 80% LTV buyer. Sellers favor the buyer with cash to invest.

The Olathe Serve Day put on by volunteers from Olathe Bible Church (my home church), Indian Creek Community Church, Life Church and College Church of the Nazarene went splendidly. This article in the Olathe Daily News spells out the home building that went on. In addition, a team of volunteers changed oil and did car inspections for single mothers and widows and another group cleaned up and landscaped at least 10 of the local schools that I know of. Congratulations and thank you to all.

Kansas gears up tonight for their first round game against Niagra. Go Jayhawks!

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Filed under Kansas City, Kansas City neighborhoods, Kansas City Sports

Olathe, Kansas Has A National Championship!

Congratulations to the men’s basketball team over at MidAmerica Nazarene University. (Just 1 block from my house!) Last evening I watched them defeat Mayville for the NAIA Division II Championship. If you have never seen a game over there you really should take the time. The gym is small, the student body loud and the games very entertaining. Check out the Olathe Daily News for more details.

Now if my boys over in Lawrence, Kansas could bring home another banner!

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Filed under Kansas City Sports

Mortgage Lenders: "Easy Money Is Drying Up"

For those of you paying attention to this blog and several like it, money is getting a little tighter out there for those looking to purchase a home. And the forecast for home sales is dipping a bit. And current mortgage delinquencies are creeping ever upward.

This is great news for the qualified buyer! Especially the real estate investor.

Listen, I work hard. Utilize effective marketing techniques including all aspects of the internet. I am up front with my clients. Things work out for me. I do well in all markets.
For sellers, however , life is a little more difficult. On the other hand, if you have good credit, some ready cash and you are looking to make a move to begin or increase your real estate portfolio you may want to take a very serious look at the Kansas City housing market right now!
To discuss what this market means to you just drop me an email.

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Filed under Kansas City Real Estate, Real Estate Investing

Investment Real Estate Glossary

GRM. ARV. Determine your NOI before I can tell you what LTV you will need. What? If you are new to real estate investing these terms and initials can really get you jumbled. But here are a few that will help you sort through some of what you read.

ARV – After Repair Value
CAP Rate – Capitalization Rate
CFBT – Cash Flow Before Taxes
GOI – Gross Operating Income
GRM – Gross Rent Multiplier
NOI – Net Operating Income
LTV – Loan To Value
3B2er – You have to go to here to find out. (Funny Video)

But don’t get too caught up in all of this. As you gain experience it will be easier and easier to talk the lingo. What is really important is that you learn how to determine profitability. You’ll need your own formula or to work with someone that has successfully worked with investment property.

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Filed under Real Estate Investing

Termites in Kansas City: They Got Me!

Termites. As a professional real estate agent they cause me trouble. Buyers don’t like them because they believe all termite damage is bad. Very bad. Seller’s don’t like them because they have to pay, sometimes big money, to get rid of them and possibly repair damage. Me, I don’t like them because I am usually the bearer of bad news when it comes to working with either the buyer or seller.

And now they (the termites) have found out where I live! Obviously, for years I have been an advocate of killing any and all termites that I come across. I urged sellers and exterminators to “kill’em, kill’em all!” Every last one of them. The mothers, fathers and yes, even the little children termites. They must not have liked this very much. They formed a plan and went to work.

You see, late last fall I was cleaning out the gutters of my home and son-of-a-gun I recognized the tell tale sign of mud-tubes coming down from one of the gutters. Crap. I immediately called my termite guy, Ken Nelson of Extreme Pest Elimination. He came all the way over to my house to confirm that, yes, I was not an idiot and yes, those were indeed mud tubes. He recommended waiting through the winter for treatment. I still have to replace a few shrubs around my house and do some minor landscaping up against the house before treatment. Why? Because if I treat first it will probably disturb the barrier we would be setting up with treatment.

Anyway, do your homework on termites. Rental property owners should remember to have their houses inspected at least every other year. Just because you don’t live there and just because you don’t spend a lot of time there doesn’t mean the termites are not lurking. They are crafty little devils. And should you want to read more about them from an independent source, check out the link to the Kansas State University Research and Extension center. They are always a good resource.

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Filed under Kansas City Real Estate, Preferred Vendors

Another Freaky Friday

The Kansas City Star has a list of the wealthiest people in Kansas and Missouri in today’s edition.

Ambucs is a charity based on providing people with mobility and independence by providing AmTrykes, providing services for people with disabilities and providing scholarships for physical therapists. They made a big difference in my daughter’s life. I urge you to check them out and, if so led, to give of your time or money.

My Kansas Jayhawks are set to storm through the Big XII starting today. Best of luck to Bill Self and the boys. I’ll be pulling for you!

ShakeGently, a technologist’s view of the world of advertising, is a blog from a local guy here in Kansas City that is a good relaxing read. Give it a try.

If you have 22 minutes to kill and you are wondering just how lacking the American Education System has become, click here.

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Filed under Cool Sites, Kansas City Sports

Always Attend A Home Inspection

As a home inspector, I am asked by friends all the time: “What kind of stuff do you see? Do you see lots of crazy things?” Of course the answer is always “Yes”.

Home inspectors see the same things that most well versed home buyers can see. Wood rot is often readily visible. We see the same water stains in ceilings. The same cracked garage slab floors. The same leaking toilets that won’t properly shut off.

But more importantly, we see the same crazy stuff that most home buyers WON’T see. Aluminum wiring. Un-insulated attics. Unsafe electrical panels. Water stains in finished-basement ceilings as a result of improper flashing on roofs. Improper clearance between furnace combustion vents and flammable materials. Unprofessional repairs to structural framing.

I recently inspected an average Kansas City home for a retired couple that has owned many homes in their lifetime. Most home inspections for this 1500 square foot house take between 2 and 3 hours. This one lasted 5 hours. They asked lots of questions. And their questions led to more questions. By the time I was finished, the gentleman said to me, “I think I’ve learned more about homes than I’ve learned in the rest of my life until now”.

After this inspection, the home buyers and I were talking about homes, in general, and they asked me – “Do you see lots of crazy things?” Again, the answer was “Yes – I see home owners with Zinsco Electrical panels in their house all the time.” They nodded, and knew exactly what I meant, because they had just attended the inspection and asked lots of questions. And they took full advantage of the time and experience they were buying from a certified home inspector.

Many buyers don’t attend a home inspection, and it’s too bad. After all, what are you buying from the home inspector? A report? Many home inspectors take pride in delivering a thorough, informative report. But you’re really buying their time and expertise. The question you should ask yourself – did I learn anything from the experience, and did I take full advantage of having a professional on-site?

Can you now identify the crazy stuff that a home inspector will see in the home when you get ready to sell it?

John Clason
Crown Home Inspections
ASHI Certified Inspector

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Filed under Kansas City Real Estate, Preferred Vendors