Monthly Archives: April 2013

April 29, 2013 · 10:26 am

The Power of Neighbors

When it comes to effective property management in Kansas City (or anywhere, really) don’t underestimate the power of neighbors to help you run your business.  Just this morning I had a neighbor of one of the rental houses we manage give us a call to confirm that we knew that the tenants had moved out over the weekend.  We did, in fact, know.

But that’s great that she picked up the phone to check with me.  I love to look for neighbors that care about their street.  I don’t hide from them.  I knock on their door and introduce myself and give them one of my cards.  I like to explain that their interest and my interests are the same…a nice quite tenant that takes care of their property.

Plus, every once in a while there will be something we don’t know about and the neighbor will clue us in. Tenant using the driveway as a dump?  The neighbor will call.  Tenant not mowing lawn? They’ll call.  Tenant away on vacation and house looks broken in to?  They will call.

Don’t hide from the neighbors.  Introduce yourself to them and help them to help you.

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April 24, 2013 · 11:20 am

Shout Out to LC’s Bar-B-Q in Kansas City

This is the BBQCapital, right?  So I need to talk Bar-b-q every once in a while.  LC’s in KC is the best, Jerry, the best!  Check out their Yelp! page I linked to and you’ll see glowing reviews except for some woman who clearly needs to eat real BBQ more often.  Yes, it’s safe to park your  car there.  And YES! it’s delicious.  My out-of-town clients that I have taken there all thank me over and over and over again.

Looking for ambiance?  Go to Jack Stack in Johnson County.  Looking for the best BBQ in town that will clog your arteries, add an inch to your waste line and make you dream of hickory smoke?  LC’s.

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Filed under Kansas City BBQ

April 16, 2013 · 3:12 pm

How does a drought lead to so many water problems?

Last year in the Kansas City area we had the drought of a lifetime.  We’re still not quite out of it but things have been improving.  And I’m not looking forward to two straight days of rain forecasted for tomorrow and Thursday.  Sure we need the water.  But…

Cracked basements and settled dirt have been the two big results of the drought.  Now so much water is running towards the house and not away.  (Or it’s just sitting there next to the foundation which really isn’t any better.)  The the ground is so anxious to soak up the water and as the newly moist soil 6 to 8 to 20 inches deep swells it presses against the cracks and well, you know how water always finds the simplest path?

Basements that heretofore have never had a crack now have cracks.  Basements that have never leaked now leak.  Not all, mind you.  But too many.  We just went through a tough time with this month’s earlier rains.  By the end of this month I expect another couple of problems but by then we’ll about have them all identified and a plan to subvert.

Still, it’s a lot of work just because mother nature decided to take a year off.

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April 11, 2013 · 1:30 pm

Rent Rates Beginning to Flatten Out

As inventory rises for rental homes here in the Kansas City area I am beginning to see rent rates flatten out a bit.  I don’t have quantitative numbers to back my hunch…but it’s a hunch based on all my years of real estate investing experience.  Passive money is coming back in to the real estate investing market here in KC and with that has come lower cash on cash returns.

The next step will be that we will begin to see vacancies rise as all these new rental homes come on the market for rental purposes.  Trulia did a post on flattening rental rates nationally and here is a great quote from the article;

“Why have rents stopped rising on single-family homes? More supply. Investors have purchased single-family homes – including many foreclosures – and are renting them out. In fact, the number of single-family rentals nationally has increased by almost one third since the housing market last peaked: that’s nearly 4 million more single-family homes rented in 2012 than in 2005.”

You read that right…an increase of 1/3.  That is significant.

Don’t push the panic button just yet.  But be looking to adjust your expectations.

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Filed under Property Management, Real Estate Investing

April 9, 2013 · 9:39 am

Shame on Warren Buffett

Shame on Warren Buffett, Berkshire Hathaway and Iowa Realty.  Many of you probably don’t know that Berkshire Hathaway and therefore Warren Buffett own Home Services which is basically a holding company of a great many real estate companies throughout the USA.   No problem there, of course.  The problem comes in with his/their attempt to squeeze competition in Iowa.  And rumor has it that if successful they will continue to engage in these techniques in other markets.

Iowa Realty has quit paying commissions to Keller Williams Realty there in Iowa.  And other brokerages for that matter in the past.  I’m not going to bore you with a 30 paragraph rant.  If you are interested you can follow these links and do your own searches.

http://activerain.com/blogsview/3342619/commission-squabbles-in-iowa

http://fiberopticconnector.blogspot.com/2013/03/keller-williams-official-will-visit.html

http://www.inman.com/news/2012/06/29/iowas-largest-brokerage-sued-over-commission-splits

But he next time Warren Buffett is opening his mouth about fair taxes for everyone why don’t we just ask him why he won’t pay agents with a different sign color the commissions they earned by selling a house his company listed?  After all, no income means no taxes, right?  And how is this in the best fiduciary duty to your client?  Oh, I could go on.

Here is hoping that the Anti-Trust lawsuit beginning in November crushes the bug.  Classic case of greed.  If you cannot compete in the market fairly do so unfairly.  If you are upset about Keller Williams’ recruiting efforts make your business model more attractive to your agents.  It is really not that complicated.

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April 5, 2013 · 9:38 am

Yes. It’s a Seller’s Market. But…

Yes. It’s a seller’s market in the Kansas City area right now.  But….

It’s funny right now.  Priced in the number two spot in your neighborhood and nearly turn-key for bell curve houses in the Overland Park and Olathe area you will most likely sell your house in 30 days or less.  But push the price and you will likely be staring at a 4-6 month sales process.

I keep talking about this because it is what I’m seeing for “regular” housing in Johnson County, KS.

Now investment property over in Jackson County, MO is popping off the MLS at record pacing.  Houses in “good” neighborhoods that can be purchased for $40,000 or less are red hot.  And if you are buying at 40 today you could have had at 30 18 months ago and at 35 6-8 months ago.  But alas, real estate markets expand and contract based on demand.  And right now investment property demand is high.

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Filed under Kansas City Real Estate

April 2, 2013 · 5:55 pm

It’s Been Busy…And I’ve Been Pre-Occupied

I was thinking today that I really haven’t been as diligent in my posting as I should be.  So many of you read this and email/call me because of this site and yet I’ve sluffed it off the last few months.  Why?

Business
Frankly, it’s crazy busy.  Real estate investors are piling back in to the pool.  Good thing?  Depends on your view.  The market is getting stronger but that means returns on investment are lower.  When figuring cash on cash assume about 1%-3% lower than just 6-8 months ago.  That’s significant. And then there are “Joe and Mary” home buyer and seller.  They are trading up.  Buying for the first time.  And all that causes a chain reaction.  Make no mistake, the “regular” home buyers and sellers are far more active and getting results in Johnson County, KS real estate transactions than in Jackson County, MO.  But it is happening all over the Kansas City metro area.

Personal
My mom passed away from cancer back on February 26, 2013. A note from the doctor I found in early December told me what I needed to find on Google to get the truth.  So basically I turned over both my photography and real estate businesses over to our excellent and well trained employees.  (Not only did  they maintain, but business actually grew in both!   Am I the problem?)  🙂  I worked as I could but my priority was my mom. I wouldn’t trade those last three months for anything.

I promise to be more diligent with your real estate news for Kansas City.   I look forward to writing again!

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