March | 2014 | BBQ Capital | Kansas City Real Estate Investing

Monthly Archives: March 2014

March 31, 2014 · 1:01 pm

Real Estate Investing Classes

I haven’t been posting much. But teaching about real estate investing is keeping me very busy these days. Currently, I’m putting together a video series discussing the do’s and don’ts of real estate investing. It has turned out to be quite a project. Some of the topics we have been covering are;

What is your criteria?
Rates of Return
How to calculate rates of return.
Income & Expenses
Property Management
Buy & Hold Real Estate Investing

It’s my hope to get these all released by the end of May. We may start dripping some in the near future to get some feedback. I’d love to know what you think.

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March 18, 2014 · 1:36 pm

Housing Sales Up – So Is Loan Nonsense

The great news is that housing for investment purposes is still strolling along at many price points. But I want to point out that the mistakes learned in our last real estate recession are still affecting our loan parameters today. And that’s generally a good thing.

But seriously, if you are buying $944,000 worth of real estate and you are putting down 55% of the value AND paying all the closing costs out of pocket, how is it possible to be a credit risk?

The scenario above has 5 duplexes with, of course, 10 units. 9 of the 10 are rented. The other one could easily be rented before closing. No sweat. Cap rate? Debt coverage ratio? All within the parameters that the mortgage banker has set.

And yet, someone has decided, arbitrarily mind you, that they can only write four loans, not five. So now we have to go find another lender. Ok, fine. But really, who loses here?

I realize this may sound like I’m griping for griping’s sake. But at what point do people start examining each situation instead of coming up with rules to hide behind? Not just in the lending business. But in everything we are involved in.