Monthly Archives: September 2007

September 10, 2007 · 8:51 pm

Multi-Family Housing For Sale In Johnson County, Kansas

Here is an update on multi-family housing for sale in Johnson County, Kansas. There are currently 54 duplexes or apartments for sale. I would only recommend about 5 of them based on what I’ve seen, condition and price structure.

Tip: Duplexes and apartments are like regular houses in that if they are overpriced no one is going to buy them. No one advised by me, at any rate.

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I had no fewer than 4 “price adjustment” emails sent to me today. I’ve said it before and I’m going to say it again. For you real estate investors out there with cash in your pocket and a healthy credit score you are going to clean up this winter.
Call your mortgage guy, get the pre-approval letter ready and be ready to strike when I call. I promise you that you will be happy.

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September 10, 2007 · 7:36 am

Everywhere I Go People Ask About Real Estate

There are some folks out there that think real estate agents make too much money. That is funny to me. Usually (always) these people work at some job where they put in their 40 and go home. Complain about their job they do. (Did you catch the Yoda structure of that sentence?)

Anyway, the point is that I’m out socializing last evening and all anyone wants to talk about is the current real estate market. I’m out at my son’s football game Saturday night and I get two phone calls regarding real estate matters. The phone almost always rings when I’m having dinner with my family. And while I ignore it until I’m finished eating everyone hears it and it’s on their minds.

So “some folks” may not like what I’m gonna say here but “Mind your own damn business and if you want to make more money do something different. And quit worrying about what I make or don’t make.”

These same “some folks” aren’t feeling bad for me when I’ve invested a thousand dollars in time and money and a seller decides not to sell. Or drive a buyer around to 10 houses and they decided not to buy. So quit chastising me when times are good for me.

Okay, I feel better.

While I’m ranting, Blogger no longer seems to allow me to dump certain comments. Why? I got spammed over the weekend by some “person” with nothing better to do than add links from my blog. I’d love to dump them. If the jerk, er person, keeps spamming I’ll have to turn on comment moderation and nobody wants that.

So two things;

  1. Blogger, put the trash cans back on my comments section so I can get rid of these stupid ads that no one will read anyway.
  2. Spammers, leave me alone and get your own readership.

(Can you tell the Chiefs got killed yesterday with no hope for the season? Looks like I’ll have to spend my football season rooting for the Washington Redskins and against the Raiders.)

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September 8, 2007 · 9:44 am

Kansas City Real Estate Investing During The Holiday Season

Are you thinking of purchasing Kansas City real estate investment property? Can I share a hunch with you? One word…”HOLIDAYS.”
With the higher inventories, slower growth and nerves on edge I believe that mid-November through the first week of January is going to be Buying Season. Not necessarily for the “regular folk.” But for you, the real estate investor.
Our weather turns colder, buyer scurry off to their winter hiding places and hope of selling diminishes greatly. Choose carefully, have your finances in order and be ready to pounce.
It’s just a hunch. But this is what I do…

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September 8, 2007 · 9:14 am

Do You Know Where You Are Going?

Admit it or not, every pilot has a fear of being lost. Or worse, landing at the wrong airport. Now, no pilot wants to be lost. And certainly no pilot wishes to land at the wrong airport. Safety issues aside (too small a runway?) think about the paperwork and embarrassment that pilot will endure.

As I was reading Jeff Brown’s latest post the thought of being off course and ending up in the wrong place occurred to me, again. Jeff’s point is that people hit a comfort level and cruise from that point on. And while this is certainly true within real estate investing circles and life in general, I also believe another key factor is thinking you are on course to your destination only to find that it’s the wrong airport.

To a pilot low on fuel and short on nerves the sight of a desired airport out the cockpit window is a sweet, sweet sight. The planning, the effort and the goal all laid out before him from 5,000 ft.

Relate that to retirement planning. I’m only 42 and sometimes get tired of the daily grind. Imagine when I’m 60 and all my efforts have come to fruition…or so I think…turns out I thought I was landing at RVS and the pilot’s lounge tells me I’m at MKO. Oooppps.

During your journey to retirement there is no doubt you are the pilot in command. The ultimate decisions and consequences rest with you. But may I make a suggestion? Contact air traffic control for flight following. They are happy to do it for you and will alert you to obstacles or bad weather in your way. They’ll basically leave you alone unless you need to hear from them.

Consider what I do, and what Jeff does, as ATC flight following. We just want to make sure you get to where you thought you were going…safely.

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Filed under Real Estate Investing, Retirement Worth Having

September 7, 2007 · 8:22 am

You MUST HAVE A Real Estate License To Manage Property In KC, Unless…

Okay. Let’s put an end to the question of whether or not you need a real estate license in the State of Missouri in order to hold yourself out as a property manager.

As I said in an earlier post today I called the Missouri Real Estate Commission at 573.751.2628 and left a message concerning this whole issue. A few minutes ago Joe Dinkler with MOREC called me back and said that I can quote him. But since I don’t have a tape recorder or a photographic memory, I’ll summarize.

(By the way, the photo above is probably a little harsh.)

In order to offer for rent, rent or hold any kind of rents in the State of Missouri you must be a licensed real estate sales person or broker. Unless… The only unless offered by Mr. Dinkler was unless the person doing those duties was an EMPLOYEE of the property owner. And an employee is not someone who is under contract with an investment property owner.

ANY third party transactions must use a licensee. He went on to state that there is a lot of confusion in the Kansas City area because Kansas does not require a property manager to be licensed. (Until they reach a certain threshold. – My words, not his.)

I hope this clears up the issue. I wish I weren’t right. Mr. Dinkler says he answers that question almost everyday. Feel free to call him if you wish.

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Filed under Property Management

September 7, 2007 · 7:49 am

Am I Right About Property Management Laws In Missouri?

A reader here of BBQ Capital has responded to an article I wrote a couple days ago titled Property Management In Kansas City. You can see the comment by clicking the link. The basis of his comments are that he believes that either myself or his property manager is wrong about this.

So you’ll see in the comments where I quoted some of the Missouri Rules & Statutes. It’s seems clear to me. But confusion still seems to reign.

Therefore, I have put in a call to the Missouri Real Estate Commission to get this interpretation cleared up once and for all. (I’ve had this discussion before with a broker making my argument and a property manager making his.)

Let me say right here and right now that I hope I’m wrong on this. My life will become so much easier if I can quit worrying about whether or not a particular property manager operating in Kansas City is licensed or not.

The MOREC answering machine promises answers in 24 hours. Is that human hours or government hours? Who knows. But I’ll keep you posted.

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September 6, 2007 · 2:57 pm

Know When To Say Stop

One of the great strategies when negotiating real estate of any kind, especially investment real estate, is to know what the highest price you will pay will be BEFORE you begin the negotiation process.

Here in Kansas City, a good rental property will be many things. But one of the most import things it will need to be is profitable. Profitable rental property is not an accident. It is by design.

Before I let any of my clients begin bidding on a home I encourage them to know where their Stop Line is before beginning They can share that number with me if they want. But I’d rather they didn’t. I’d rather they keep trying to get the best deal possible until they get to that line and then just tell me, “that’s it. No more.”

I’ll understand. Honest. When you are figuring your numbers for your investment property you need to know where it is profitable. Why go above that number?

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