Category Archives: Preferred Vendors

This is a special thank you to a home inspection service here in the Kansas City area that I use and recommend regularly. In fact, he sometimes contributes articles here on BBQ Capital.

I have a current client that has some 1031 exchange money that needs to be “identified” by no later than Friday. Because of this we are looking at which property is more profitable that the other, which is in better shape, which has fewer oncoming headaches, etc.

Anyway, while we were deciding on which houses to make final bids on he was kind enough to come out and just look at a few issues we had without yet doing the full inspection. Obviously, we paid him for his time and travel. But getting him to come out and look at a few concerns helped us to get a better idea as to which properties to pursue.

Termites. As a professional real estate agent they cause me trouble. Buyers don’t like them because they believe all termite damage is bad. Very bad. Seller’s don’t like them because they have to pay, sometimes big money, to get rid of them and possibly repair damage. Me, I don’t like them because I am usually the bearer of bad news when it comes to working with either the buyer or seller.

And now they (the termites) have found out where I live! Obviously, for years I have been an advocate of killing any and all termites that I come across. I urged sellers and exterminators to “kill’em, kill’em all!” Every last one of them. The mothers, fathers and yes, even the little children termites. They must not have liked this very much. They formed a plan and went to work.

As a home inspector, I am asked by friends all the time: “What kind of stuff do you see? Do you see lots of crazy things?” Of course the answer is always “Yes”.

Home inspectors see the same things that most well versed home buyers can see. Wood rot is often readily visible. We see the same water stains in ceilings. The same cracked garage slab floors. The same leaking toilets that won’t properly shut off.

But more importantly, we see the same crazy stuff that most home buyers WON’T see. Aluminum wiring. Un-insulated attics. Unsafe electrical panels. Water stains in finished-basement ceilings as a result of improper flashing on roofs. Improper clearance between furnace combustion vents and flammable materials. Unprofessional repairs to structural framing.

I recently inspected an average Kansas City home for a retired couple that has owned many homes in their lifetime. Most home inspections for this 1500 square foot house take between 2 and 3 hours. This one lasted 5 hours. They asked lots of questions. And their questions led to more questions. By the time I was finished, the gentleman said to me, “I think I’ve learned more about homes than I’ve learned in the rest of my life until now”.

After this inspection, the home buyers and I were talking about homes, in general, and they asked me – “Do you see lots of crazy things?” Again, the answer was “Yes – I see home owners with Zinsco Electrical panels in their house all the time.” They nodded, and knew exactly what I meant, because they had just attended the inspection and asked lots of questions. And they took full advantage of the time and experience they were buying from a certified home inspector.

Many buyers don’t attend a home inspection, and it’s too bad. After all, what are you buying from the home inspector? A report? Many home inspectors take pride in delivering a thorough, informative report. But you’re really buying their time and expertise. The question you should ask yourself – did I learn anything from the experience, and did I take full advantage of having a professional on-site?

Can you now identify the crazy stuff that a home inspector will see in the home when you get ready to sell it?

John Clason
Crown Home Inspections
ASHI Certified Inspector

Many of us have lived in a home for the better part of our lives. We’re used to living in them, used to using their components and even used to repairing them when we see problems. So why would anyone need to hire a home inspector? I mean, really, how hard is it to see a defect in a home? Can’t everyone tell if a faucet is leaking or an automatic garage door opener doesn’t work?

To answer that, let’s ask the question, what is a home inspection? That’s the easy part – A home inspection is a visual examination of the readily accessible components of a house.

That’s the simple answer. But looking a little closer, there are many components of a home. They include the structural systems, the foundation, the roof, the mechanical systems, the electrical system, and the plumbing system, among others. All systems are independent, but are designed to work in conjunction with one another. A home inspection will give valuable insight into the condition of all of these components, and help to identify those that may be in need of repair or replacement. This is especially valuable information for those that are ready to buy or sell a home.

Consider this analogy: If you have a pain in your neck (other than your boss), you might consider going to your family doctor, or general practitioner. Your doctor might then refer you to a specialist for a more thorough evaluation of the specific problem in your neck. Your doctor may be a very good doctor, but he or she is not a specialist in every aspect of the human body. In much the same way, you can consider a home inspector as a general practitioner regarding a home. Your inspector can point out the obvious, and can even give you an indication of the condition of the systems or components of the home. Your inspector might even suggest that you consider hiring a specialist to look at a specific component (such as a HVAC specialist for the furnace, or a plumber for the water heater).

A good home inspector has been trained in all aspects of the components of the home. He or she can readily identify and describe the condition of each component. Inspectors understand how the components interact with each other are trained to identify material defects, operational defects, and other indications of problems that may exist in a home.

A thorough home inspection will take between 2-4 hours for the average home of approximately 2000 square feet and will cost between $250-400 on average. In this time, a home inspector will operate and visually inspect all the readily accessible components of a home. A thorough home inspector will evaluate the major systems of the home, including those listed above. The inspector will give you a list of the items of in the house that need some type of attention or repair, and will even let you know when a specialist is warranted for a particular component of the home. During this evaluation, most inspectors will encourage you to follow along and ask questions.

The inspector is there for you. It their expertise and time you’re buying. Make the most of it, attend the inspection, and ask questions. It is an excellent opportunity to learn a lot about the home.

Until next time….

John Clason, ASHI Certified InspectorCrown Home Inspections

Ask the Inspector

Approximately once a week, I’ll post a blog regarding some aspect of home inspections, and the home inspection process. In the mean time, feel free to email me directly if you have questions, or if you have a topic that you’d like to see discussed. You can reach me at john@crownhomeinspections.com or on my cell phone at 816-305-4624.

John Clason, ASHI Certified Inspector
Crown Home Inspections

Today is a pretty big day here at BBQ Capital. Our first guest speaker. Let me introduce to you Steve Tremaine of the Bank of Blue Valley. There are three mortgage guys I recommend and trust and Steve is certainly one of them! He’s a straight shooter and easy to talk to. When something comes up I go straight to him and he gets it fixed. No last minute changes. No extra fees. No bull. Now, this is his first blog…so treat him nice on your comments.

Solving the financing puzzle for your investment properties can be quite a hurtle to say the least, it helps to work with a loan officer who knows the common snags and has outlets and resources to solve problems and save you thousands. Be sure to ask your loan officer how much experience they have in financing non owner occupied properties.

Common snags include:

Seasoning:

Seasoning is the time period for the previous 12 months prior to your transaction and specifically deals with any other transactions on the subject property. If the property you have purchased 2 months ago for 150,000 and rehabbed is now appraising for 225,000, seasoning requirements say that if the house has sold or been listed 12 months prior to your refinance or sale transaction you must use the lower of the values, either the appraisal or the previous sales price. This can really throw you a curve ball if you are trying to sell the house and your buyers’ lender can’t get them a loan on it because of the seasoning issue. It can also be tough if you are trying to refinance the property to hold it as a long term rental property. The solution is to use a lender that does not have a seasoning requirement or buy a house that was never listed.

Higher investment rates:

Rates are always higher on investment property but there are ways to soften the blow. Many lenders do not have steep rate hits if your loan to value (LTV) is below 75%. “What if I don’t have 25% to put down” you may ask, just put down 10% and then do a second mortgage for the remaining 15%. This is known as a 75/15 combo; both loans can be 30 yr fixed rates with no balloons. Your second mortgage rate will be higher but the bulk of your loan will be at a much lower rate saving you thousands of dollars over the years. The other way to save money on interest rates is to buy down your rate but be sure to do the math; your break even point may be more than five years out so you want to make sure you are holding the property long term if you go this route.

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