Monthly Archives: March 2008

Kansas Jayhawk Basketball

Congratulations on making the Final Four.  Your thirteenth.  Here are all the appearances;

Jayhawk Jr.1940
1952*
1953
1957
1971
1974
1986
1988*
1991
1993
2002
2003
2008

* NCAA Tournament National Champions.   (The Kansas Jayhawks were also national champions in 1922, 1923.  But those are Helms Trophies since the NCAA Tournament did not start until 1939.)

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School Districts And Property Values

schoolhousesm.jpgEver notice how school districts and property values go together?  Take the Kansas City School District.  It’s perceived to be in constant turmoil with very little idea of which direction it’s heading.  (See all the turnover in the Superintendent position.)  Houses in the KC School District, by in large, are much less expensive than their counterparts just a mile or two to the west in the Shawnee Mission School District.

That’s it.  Nothing complicated.  Just look at the intrinsic values of your investment properties, too. 

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Filed under Kansas City, Personal Real Estate Opinions, Real Estate Investing

NCAA

n-copy.jpgDear NCAA,

I realize you are so concerned about the integrity of amateur sports and all.  That’s why you won’t pay the players.  Then why are we starting the Kansas v Villanova game at 9:00 at night, central time?  Is this in the best interest of the kids?  To the Villanova fans the game won’t end until after midnight. 

Oh, that’s right.  This amateur game has to start so late because of your $6,000,000,000 contract with CBS that fills your coffers. 

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Government Stupidity Can Affect Your Investment Property

You may want to watch this if you live in Baltimore and own investment property.  Every jurisdiction is different.  Maryland tends to be very tenant (deadbeat) friendly.  Here in Kansas we can get rid of people pretty quickly. 

Click this link to see how government protects those that contribute little while punishing those trying to make a better life. 

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Tax Time Has Tax Consequences

HurricaneIt’s only twenty days until April 15 hits with a powerful punch for some of you.  Have you figured your tax consequences to your 2007 activities yet?  Or has your CPA? 

Real estate investing can be very lucrative, tax wise and otherwise, if done correctly.  I’m going to publish an email I received this morning, anonymously of course, from a client I’ve sold a couple of properties for.  He’s owned property for 4 decades but sold off his final property in 2007.  Now before you cry for him, he knew how his actions would affect his taxes BEFORE selling because we discussed it.  And because he’s sold without exchanging before.  Money should not be an issue for him for the rest of his life.  🙂

Oh, and I love the milk analogy. 

Chris,
Nice shirt, nice color, nice thought.

Glad to see your keeping a visible presence with your past clients. Who knows when I may come back to make more money in real estate.

Just finished doing my taxes and had a refresher course  on recapture of depreciation  and capital gains. On the recapture I can understand Uncle Sam saying you did not pay taxes on that value you said was depreciating but it did not depreciate, so pay me now. That is only fair.

One thing I do not understand however is capital gains. You see when I bought my Duplex, milk was selling for $1 a gallon. When I sold the duplex milk was selling for $ 3 a gallon. My duplex sold for 3 times what I paid for it so I could by the same amount of milk today now as when purchased the duplex. But Uncle Sam says I had a Gain and wants a tax  that gain. I did not gain purchasing power just an inflated number. If I were to use the price of gasoline there would be loss of purchasing power.  Nothing you or I can do about this fact but grin & bear it. 

The good news however was that all that inflated gain was paid for by rental payments made by others.
So there is some money to be made in Real Estate. With inflation about to go gangbusters in the near future one needs to keep hard assets like Gold & Metals ( which do not pay dividends) or Brick & Mortar (also know as housing) which can produce dividends known as rent.
Ciao;Name withheld

Last week I recommended you read Jeff Brown’s article on how to figure your basis.  You’ve just read a real life email on how your basis relates to you in real life.  And did you catch my most favorite sentence in that whole email? 

The good news however was that all that inflated gain was paid for by rental payments made by others.
Oh, how I do love Principal Reduction.  Now go do your taxes!

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7 Questions To Ask Your REALTOR Before Looking For Investment Property

  1. Are you an investment property owner and/or do you take any specialized classes to assist you with evaluating real estate investment property?
  2. How long have you been working with investment properties?
  3. Can you show me how you evaluate an income property, numbers wise?
  4. What are your feelings about cash flow or appreciation?
  5. What are your hours of availability?
  6. Do you require a Property Management agreement in addition to an Exclusive Buyer’s Agency Agreement?
  7. Who do you work with concerning inspections, repairs, maintenance and property management?

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Kansas City’s Rich And Famous

Back in the beginning of March Lani Anglin-Rosales did a blog post about Famous Texas Alumni.  And I got to thinking about doing one about Famous University of Kansas Alumni.  But, hey, this is Kansas City so we should make note of the famous Kansas Citians regardless of which side of the state line they were from or what school they attended. 

To be eligible for the list they must have been born & raised in the Kansas City area or made their bones here.

WALT DISNEYDude with a mouse.
Walt Disney

DANNI BOATWRIGHT Pretty girl.  Oh, and I think she won Survivor.
Danni Boatwright

HARRY TRUMAN Midwestern sensabilities in a crazy world.  I’d still vote for him.
Harry Truman

TOM WATSON At least for a little while he made Jack Nicholas nervous. 
Tom Watson

ED ASNER Chuckles the Clown episode is the funniest thing I’ve ever seen on television. 
Ed Asner 

AMELIA EARHART Famous, ground breaking aviator.
Amelia Earhart

ROBERT ALTMAN Oscar winning director.
Robert Altman

BUCK O’NEILL This man, may he rest in peace, is one great American.  Although he’s not in the Baseball HOF, there is an award named after him. 
Buck O’Neil

BIG JOE TURNER :  Just sit back and listen to the blues, man. 
Big Joe Turner

DR. JAMES NAISMITH Well, he actually lived and died in Lawrence, KS.  But close enough.  Heck, he invented my favorite sport.  He had to be included!
Naismith

MAURICE GREEN World’s Fastest Man.  (Well, maybe not anymore.)
Maurice Green

COUNT BASIE Kansas City style jazz at it’s best. 
Count Basie

GEORGE BRETT Kansas City’s greatest baseball player.  A HOF’er who would have been a catrillionaire if he’d played in New York or Los Angeles. George Brett
(As a personal aside to George, don’t feel too badly.   He seems to have done alright in his financial life.)And there you have it.  A collection of Kansas City talent. Now, there are more, of course.  But I’ve run out of time.  And it’s not likely I have the patience to continue.  Enjoy the list.  Feel free to add names in the comments section!Oh, and I just have to say this because of the time of year…

 ….Rock Chalk!

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