Monthly Archives: May 2008

Are you negotiating on an investment property with tenants right now?  Don’t forget to negotiate the rents and the security deposits.  Those aren’t givens. 

And secondarily, they can foul up a closing at the last minute if you aren’t careful. They can have an effect on your closing costs if you are working with an inexperienced underwriter or with a loan product that is very strict when it comes to investment property closing costs.   That’s it. 

Real estate investing and personal points from my time in Phoenix…

…I had dinner with agents from all over the country on Sunday evening.  It’s always fun to speak to the ones from the Los Angeles area of California when we discuss real estate investments.  They are just simply amazed at what we can do here compared to what they are used to.

…Dry heat.  Wet heat.  Listen Phoenix, 111° is 111°.  I don’t care what you say or how you say it.  🙂

…The Phoenix area is pretty close to exactly twice the size of Kansas City.  And yet we have ± 13,000 agents.  They have ± 45,000.  We run about 23,000 active listings.  Someone said they are at about 74,000! (See comment by Jay Thompson for clarification.)  I’m just glad I’m not an agent there.

…It’s nice to get away and “mastermind”.  It’s even nicer to get home and see my wife and kids.  (Personal note:  Yesterday was the anniversary of my wife putting up with me for 22 years.  Not bad for a 43 yr old.)

Here in Phoenix I sit listening to differing views about how to market real estate and work with people looking to buy or sell real estate.  And although none of the speakers to this point has addressed real estate investing specifically, there is a correlation to be had here.

I’ve said it again and again and again that the people you choose to listen to will have such a bearing on the success, or failure, of your real estate investments that it’s not even close to funny.  I say that because I am hearing things here that, based on my experiences and what I know to be true, are both brilliant and completely off base.  At least for how I choose to do business.

No one is saying you can’t make money flipping houses, or buying notes, or owning trailer parks, or working with short sales.  What I am saying is know what the end result is supposed to be.  Then, where are you starting from?  If you are a busy executive that travels, has a family, a solid income, a solid start on your retirement assets do you really want to be supervising a construction crew to squeeze out a few extra thousand or are you looking for turn-key investments that will require as little personal attention as is reasonable for real estate investments?

Conversely, if you are a twenty-something with limited assets you are probably not ready to start plunking 20% down on three properties at one time.  You have to know that the person you are working with is familiar with you and your situation. 

If you are in the Kansas City area, call me.  Let’s sit down and talk.  Out of the area, call me and we can work by phone on an hourly consultation basis.  And I’ll find you an agent in your area that can help with the peripherals.  Either way, call me.