Category Archives: Real Estate Investing

All throughout the country people want to know how to start investing in real estate.  And while I cannot say for sure the following advice will work in every city in America I can tell you for sure that this works great here in Kansas City.

I’m Twenty-Something And Want To Start Real Estate Investing

Whoa there, partner.  Remember.  You have your whole life ahead of you.  I know that’s tough to believe.  But ask anyone over forty.  They’ll tell you.  My best advice, buy your first house with an eye on it being an investment property a year from now.  Then in a year or two or somewhere in between you buy another house with the same intentions.  You get the benefit of owner-occupant financing (usually cheaper than investor financing) and you can do this forever.  Heck you are young and restless and you know you’re gonna move several times.  Why not just be smart about it. 

I’m Thirty-Something, Trying To Adjust To These Kids But Still Have An Eye On My Future

Ah, the thirties.  Many an investor finds this the most difficult time of all to start buying rental property.   There may be a new spouse and/or kids.  The job is putting the squeeze on and you’re trying to move up to a bigger house because you need more space.  Not to mention the raises are starting to slow down a little because the talent pool coming in behind you seems to be really talented.  Where’s the money gonna come from?  I can’t answer that.  But I know it’s gotta be found somewhere.  🙂  Start small.  You still have time on your side.  Buy a smaller duplex or a small single family home to rent out over in the Waldo area.  But get started you must. 

I’m Forty-Something And I Have No Retirement Planned.  HELP!

So you weren’t able to get started in your twenties or thirties?  Well, neither was I.  Neither were most of my real estate investors.  But if you remember the ’80’s you now know what mortality is and you’ve lost all allusions that your job is gonna take care of you.  The good news is your debts are probably falling (the thirties were a nightmare of debt for me and many people I know/knew), the student loans are all gone and you’ve started with your company’s 401K.  You really need to divert some of that savings in to a very liquid money market account.  Get as much cash together as you can and call me when you get to a minimum of $15,000, preferably $20,000+.  Then we can really get to work.  You’ll be surprised at how fast your investments will catch you up so that you can have a Retirement Worth Having.

Fifty/Sixty-Something And Retirement Is Staring Me In The Face!I can’t work miracles here.  But depending on your situation I can help you to soften the landing.   You are going to need some liquid assets to throw at some carefully chosen properties.  Our first goal is to protect those assets.  Our second is to grow them…in a hurry.  Specialized planning and understanding are a must here for you.  This isn’t a one paragraph answer and will vary wildly from client to client depending on many, many things.  You’ll have to call me to discuss further.

Tomorrow I think I’ll show you how owning investment properties will help to alleviate your retirement concerns.  I’ve written about how investment property grows and grows before.  But we all could use the review. 

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.