Labor Day.
You know. The day we celebrate the American work ethic by taking the day off.
Does this make any sense to anyone? 🙂
Monthly Archives: August 2008
Rehabbing To Rental Property Standards
I’ve been talking to quite a few would-be investors lately about the difference of rehabbing to a rental standard versus rehabbing to sell. And it’s really not all that complicated. Without sounding too cold you really just rehab everything not quite as nice.
What I mean is instead of granite counter tops you go with a very nice Formica. Contractor grade carpeting instead of the best. Contractor packs of lighting fixtures instead of hand picking each and paying the individual mark-up. Refinishing cabinets instead of replacing. And etc.
This will help increase your equity margin. Now, in three, four or six years down the road when you want to sell you may very well wish to wait for a vacancy and plan on 60 days holding to rehab up to sales standards. Or if you keep the place nicely maintained through the years you may very well be able to sell the place as a performing investment property.
Pennies count in any kind of rehab. Doubly so when you are trying to increase sweat-equity.
Filed under Property Management, Real Estate Investing
Fundamentals Of Kansas City Real Estate Investing
When you are investing in real estate in Kansas City you need to understand the fundamentals of owning investment property. (Also true wherever you are in the country.) As I sit here and read that average sales home prices have declined a little but that existing inventories are shrinking I’m continued to be amused at the conflicting data being offered by everyone.
We all agree all real estate is local. But we love to throw out broad numbers that cover an entire region. Go figure.
Whether buying in an up market or a deflating market the fundamentals do not change. There are 4 Benefits to Real Estate Investing that I write about time and time again;
- Cash flow before taxes
- Principal reduction
- Depreciation (and other tax benes)
- Appreciation
Relying on any one of the 4 Benefits without taking into account the other three is borderline foolish. In the case of relying solely on #4, well, we’ve seen how that’s worked out. But I am able to make the same case on relying solely on #1.
Make sure that at whatever price, whatever down payment and whatever interest rate you buy an income property at that the numbers “work.” It is really as simple as that.
Filed under 4 Benefits of Real Estate Investing
Suicide: It’s Only Money
I’m going to my cousin’s funeral today. 28 years old and a married father of 2 he hung himself on Thursday afternoon. We weren’t close. But he is blood. I’m told he had financial troubles he always stressed over. He lived in a very small town in rural Missouri where opportunity is difficult to find.
This blog is dedicated to Kansas City real estate investing. The purpose of this blog is to talk about REI. To talk about income and wealth and making money. But frankly, events such as I’ve described have to remind me, you and everyone that money is a tool. It’s not who you are.
Financial stress. I’ve been there. Maybe you have, too. But it’s just money. If you don’t have it to pay back you swallow your pride, declare bankruptcy, move on and figure out a way to do better. You grasp at hope until hope becomes real. You realize that those children and that spouse count on you for more than a paycheck.
Filed under Social Issues
Tidbits & Asides Regarding Kansas City & Real Estate Investing
- Tomorrow is the Rent & Rehab Workshop I’ve been talking about. I’m expecting a good turnout. Hopefully it will be worth their while.
- After the workshop I’m showing a California real estate investor around looking at properties that will hopefully meet his criteria since he’s flying out all this way. I’m still trying to decide which barbecue to take him to.
- Kansas Jayhawk basketball practice started yesterday since they are going to Canada in a week or so for one of those “international” pre-season games. A good chance for the young me to get started.
- Is Canada really international?
- I’ve noticed that searches for real estate investment property in Kansas City is down slightly on the analytics package I use. Is this because of financing? Fear? Lack of interest? It’s summer time? I’m curious as to what you think.
- The Royals are in another tailspin. I guess this means another win streak is right around the corner.
- The airshow is in town this weekend. If I can spare a moment I’ll get out and watch the Thunderbirds on Sunday. I love those guys.
- One of my favorite property managers has announced to me that he is selling out to another property manager I know. That’s too bad. Or at least that’s what I think at this moment. Hopefully I will be proved wrong. But I usually like where there is healthy competition.
Real Estate Investors With More Than Four Properties
Attention real estate investors with more than four properties! I just received this from Stacey Taylor of Countrywide Home Loans in Olathe, Kansas.
Product Modification: Maximum Number of Financed Properties for Conforming and Non-Conforming Programs
- The effective date has been postponed. There is NO effective date at this time.
- A CMD Notify will be sent once the effective date is confirmed.
- See CTM 1.4 for current guidelines on financed properties.
The long and the short of this is that you should have less of a hassle trying to buy another investment property if you already own 4 or more income properties. So go to town…within reason, of course.
Filed under Real Estate Investing
How To Avoid Foreclosure
Are you a Kansas City homeowner or real estate investor that is more than a little stressed about paying that monthly bill for your housing? Do you need to know how to avoid foreclosure on that home you were so proud to move in to? Or maybe you believed someone when they said real estate investing was easy and that if the rent covered the mortgage you were good?
Well, obviously you are not alone. Here in the Kansas City area we are not nearly as bad off as the Californians, Floridians and so forth. But we do have people in crisis here. If you have stumbled on to this site because you are looking for foreclosure relief you need to know the following;
HUD Tips For Avoiding Foreclosure
Exact Steps To Take To Renegotiate Your ARM Mortgage
Beware of mortgage bailout specialists. There are ethical ways for someone to take over your house and there are unethical ways. Seek professional, non-biased counseling when deciding on what your next step should be when considering a mortgage bailout. Get the facts.
Filed under Social Issues, Worth Reading
BBQ Capital | Kansas City Real Estate Investing 