Monthly Archives: April 2008

April 30, 2008 · 8:39 am

Johnson County, Kansas Rental Property

If you want me to pull a rabbit out of my hat, then you have to have patience. I’m not trying to be a smarty pants. It’s just the truth.

What brings this up is that I have about 4 clients that I’m working with right now that insist on owning investment property in Johnson County, Kansas. And that’s fine. They are good people and with enough time and patience we will find them each something that is suitable to their goals and criteria. But rental properties in Olathe or Overland Park or Lenexa are just nearly downright impossible to find using criteria that fits areas like Blue Springs or Indepenence. But hey, that’s why I get paid.

And every once in a while they do pop up. And that’s when we have to pounce. If you haven’t lost faith in my by then. 🙂

1 Comment

Filed under Personal Real Estate Opinions

April 29, 2008 · 6:49 am

The Emotions of a Short Sale

I’m currently working with a homeowner in distress. In the last six months both jobs have been lost, savings depleted and hopes dashed. Eight years of home ownership is now 4 months behind with foreclosure the next step, only days away.

Denial, desperation and frustration are the emotions this homeowner has already experienced. Apathy has now set in.

“I really don’t care at this point. It would be easier if they just took the house.”

A mortgage broker I know put me in contact with this homeowner. He’s known the homeowner for years and years and he wanted the homeowner to work with someone he could trust. Problem is any deal I can put together is too thin for investors. So I turned to Countrywide Home Loans who holds the note.

Turns out they cannot authorize a short sale until the home has been on the market 90 days because this was a FHA underwritten loan. But we are only 9 days away from foreclosure proceedings.

Listed the house, I did. Got written authorization to negotiate with Countrywide, I did. Patience, creative thought and cooperation from Countrywide, I need.

I do not know if this will end in foreclosure, deed in lieu of foreclosure, short sale or subject-to transference. All I know is that I pledged fiduciary duty to this homeowner and this homeowner is gonna get my best. Because I can look into the eyes and see the emotions I previously mentioned. And rather than get on the moral high horse I’d rather have compassion and help in any way I can.

It’s easy to look at the housing crisis many are experiencing on a macro level. I do it all the time. It’s easy because it doesn’t involve an emotional investment. But people are not numbers.

5 Comments

Filed under Misc. Real Estate, Personal Real Estate Opinions

April 27, 2008 · 2:46 pm

Being A Good Neighbor And A Good Landlord

I’m working with a short sale situation on a half duplex for sale in Olathe. It should be ready to announce within the next day or two. It’s only about 9 or 10 houses down the street from a rental property of my own here in Olathe and as I drove by mine I realized that I haven’t been a good neighbor.

See, the unit of which I speak has excellent tenants. They always pay their rent on time. Plant flowers next to the house. Never a problem. So I don’t go by that often. But as I drove by this day I saw that dandelions from miles around had come to my yard to grow and prosper.

This particular rental property is only a half duplex. My neighbor’s yard is beautiful. Not a weed in the whole yard. So I went down to the local K-Mart, bought some Weed & Feed and addressed the problem immediately.

You may find this funny. But I like my neighbors liking my properties. The better I keep up my rentals the more cooperative the neighbors are about letting me know about things that I should know about. And besides, a sharp looking home usually attracts better tenants. If experience has taught me one thing it is that your tenants will treat your rental homes like you do. Take care of your rental properties and so will they. Let them go and so will they.

Talk about your law of reciproicity.

Ronald McDonald Killed In Drive-By Shooting

Warning: This video is absolutely hilarious in a sick and demented way. And it’s fairly gruesome. So don’t watch if you are gonna be upset. 🙂

1 Comment

Filed under Uncategorized

April 25, 2008 · 11:59 am

Home Inspections

By now, nearly everyone knows that you need to conduct home inspections when purchasing a new property. There are many reasons for this;

Some mortgage lenders require an inspection. At the very least a termite inspection.
Having a professional, non-biased, non-agent perspective on the shortcomings of the house can help you to look at your new home or rental property with a new set of eyes.
Inspections can create a “to do” list for the buyer.
Inspections can help you to re-negotiate the purchasing price of the house you are buying if the circumstances warrant.

I’m sure a good, professional home and/or termite inspector could give you more reasons. But what does a home inspection consist of? Here is an incomplete list of inspections you could choose to do when still inside the Inspection Period of a property you have under contract;

Electrical, mechanical and plumbing (“Whole house” done by a generalist.)
Termite
Radon
Structural (Better hire a specialist here.)
Insurance history
Roof
Chimney
Lead based paint
Air conditioning/heating by licensed HVAC guy/gal

Those are some of the more common inspections that I see buyers and investors conduct. But there may be other items you wish to check on;

Flood zone
Sex offenders list for neighborhood
School boundaries (Verify. Trust me.)
Zoning
Development plans for surrounding area

If you are going to be purchasing the property for rental property purposes;

Verify rent survey
Get as much information about tenants as possible
Check with city regarding upcoming “special” taxes
Verify HOA allows rentals

I want to emphasize this is not an all encompassing list. But it should help you to get to thinking and prioritizing. It may not be economically feasible to do every inspection possible. Depends on your situation. Good luck and feel free to add items in the comments section.

2 Comments

Filed under Misc. Real Estate

April 23, 2008 · 3:38 pm

I Guess I’m Not Guru Approved

I received this email the other day…names removed…

Hi Chris,We will be coming into Kansas City in June for a field training regarding the purchase of investment property in the Kansas City Area. We are in need of a real estate agent who knows the area and is willing to work with us to find investment properties as well as put us in contact with a mortage broker who can work some “creative financing”.

We permanently reside in Palm Springs, CA and have excellent credit. It is our goal that in 3 days to purchase a couple of properties.

Would you be interested in assisting us with this endeavor?

Thank you very much and I look forward to hearing from you soon.

Here was my response…

Working with real estate investing can mean many different things. I’m more structured to investors looking to buy & hold over a period of 5-8 years using maximum leverage from good credit and looking to achieve capital growth over cash flow. See my blog at www.BBQCapital.com for more information.

I would love to help. But your comments about “field training” and “creative financing” send up warning signals to me. I do not wish to tell you what to do. Really. But proceed with caution. I’ve seen more than a dozen folks from out of state come into our area with the help of an investment guru and sometime later call me wanting me to help fix the mess they are currently in.

You can always feel free to call me at 913.568.1579 to discuss what your objectives will be. If I can help, I’d love to. I don’t think you’ll find anyone better. And if I think it’s best you work with someone else I’ll say that, too. (As you can probably tell I’m fairly outspoken.)

Do give me a call. Five minutes of your time can make a huge difference.

Since I’ve received no response I can only assume that I didn’t pass the muster with their real estate investing guru. Actually, I’m kinda proud about that. If I wanted to double my income, literally, I could just help these people…no questions asked. I get similiar emails and phone calles EVERY WEEK. I know of enough “creative” mortgage people and “cash flow” properties priced less than your used car that this guru would salivate over. And heck, I could even charge to help them complete their “field training.”

Maybe I should change my business model, get a Mercedes and a gold chained necklace?

5 Comments

Filed under Real Estate Investing

April 23, 2008 · 8:31 am

OMG – I’ve Been Trampled Under Foot

This blog is dedicated to Kansas City Real Estate Investing and by virtue of it’s name, Kansas City BBQ. But another Kansas City cultural tradition is ‘da Blues. I’m not gonna say we are the capital of the blues. But we are certainly a player.

For quite some time now I’ve been urged to go out and hear a couple of local blues bands. Levee Town and Trampled Under Foot. And last night I went to see Trampled Under Foot with some buddies at Marty’s Blues Cafe. What I got was blown away.

Seems the bassist and singer for TUF (as Trampled Under Foot is referred to) was on her honeymoon so the remaining two members of the band (They are all three siblings! – Me and my siblings have no talent!) invited two of the members from Levee Town to join them. And what seemed to be a whole host of other Kansas City blues players and singers. Special mention here to Sweet Sue, a fun singer and Kool Aid who played a very nice guitar. (I hope I got their names right.) Those two joined the other guys for various songs during the sets.

But let’s cut to the chase. I was completely blown away with the guitarist/singer for TUF. First the guys, all of them, were younger than I expected. Secondly, as built up as they were to me the publicity did not exceed the talent.

I’m am not a professional journalist or music critic. What I can tell you is that the guitarist/singer, Nick Schnebelen, not only has excessive musical talent and abilities he’s got stage presence. A charming smile. A knack for knowing when to talk and when to be quiet. An unbelievable blues voice and the ability to remind me of a young George Thorogood.

Anyone looking for a great night out enjoying a fabulous feast of ‘da blues would be advised to see either of these bands. But I’d definitely recommend catching a glimpse of Trampled Under Foot. They may not be confined to Kansas City very long. After all, they have been voted the best blues band in 2008 down at a festival in Memphis. Not too shabby.