Category Archives: Social Issues

December 3, 2008 · 10:19 am

I’ve Been Smacked By Credit Crunch…But Don’t Care

In the last ten days I’ve received two letters from two of my three credit card companies.  The first stated that since I don’t use my card and haven’t done so in more than twelve months, and since they had “re-evaluated” my employment situation (I’m self-employed) that they were cancelling my credit card.

creditcardBoo hoo.  Did I mention I don’t use it?  It was a Washington Mutual card.  Aren’t they in big trouble?

Then yesterday AmEx sent me a letter stating that they had reviewed my situation (I’m guessing this is a popular thing to do now) and had decided that they were reducing my available credit by 20%.  Again, okay by me since I’ve never been anywhere close to the credit limit.  I guess they don’t want me to get anywhere near it, anyway.

Anyone else noticing things like this? 

Let me state that I am not behind on anything.  Nor has my income declined.  Nor have I had any trouble at all in years and years and years and years.  (I was not so good in my twenties.)  My guess is that “my employment situation” isn’t popular right now with credit companies.  A self-employed real estate guy has to be a little scary to them.

Yet, 45 days ago I signed a rather large loan with a local bank here during the height of the credit crisis news cycles and they barely even asked me to explain myself.  Just “how much do you need” and it was ready days later.  Now this money is for a non-real estate related business I also have.  So I have to believe it’s the self-employed real estate agent thing on the credit apps and credit company reports that has them leery.

Just a guess, anyway.

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Filed under Misc. Real Estate, Social Issues

August 25, 2008 · 6:57 am

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.

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August 19, 2008 · 7:21 am

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.

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Filed under Social Issues, Worth Reading

July 29, 2008 · 11:07 pm

Putting An Investor Behind Bars: I Hope I Succeed With This Real Estate Fraud Professional

Shortly after writing this post on yet more real estate fraud in Kansas City I’m going to be sending off an email to the Kansas City Star letting them know I have a story gift-wrapped for them, if they would like. 

I’ve run into this fraudulent investor before.  And he was the inspiration for the post on real estate fraud that I wrote back in May.  I’m not yet ready to name names (though the photo is a clue) but I am ready to turn the story over to someone who will.  I’m also making myself available right here right now to the FBI and any other law enforcement communities that would like my assistance with this fraudulent real estate investor and another I’m working on right now for someone else. 

It’s time to put an end to this.  Heck, the guy I’m talking about still has his real estate license!  You could be calling him tomorrow for advice! 

I want him to lose his license, suffer public humiliation, make restitution on those straw buyers he conned and spend time behind bars.  And guess where they met him?  Church!!!!

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Filed under Misc. Real Estate, Social Issues

January 25, 2008 · 4:58 pm

First Time Home Buyers In Kansas City

True, the bulk of my business is working with the real estate investors in Kansas City.  It’s what I do.  It’s what I like to do.  But…

I just (literally) walked out of a closing with a first time home buyer who purchased her first home in Kansas City, Kansas.  Just above the Johnson County line.  She’s a single lady, which is a fast growing segment of the home buying public.  She’s also a twenty-something. 

first time homebuyer in kansas cityIt warms my heart to see someone so young, so responsible and so visionary.  She knew what she wanted, stayed within her budget and when all was final she had purchased a newly rehabbed home in a safe neighborhood with no money down (at a good, fixed interest rate) and is paying less for her house payment than she was for her monthly rent.

And you know what?  Because of the time we spent together in the car she’s already talking about how it would be nice to live there for 2-3 years, put together some more savings and purchase another home to live in and renting out this home. 

Wouldn’t that be great?!?  If she were to buy another home in 2-3 years after creating more savings (I gave her a target to shoot for) she would be so far ahead of most of us at that age it wouldn’t even be funny.  Imagine being 29 and having a good primary home and a good rental home…all on a very modest salary.

Anyway, I just thought you might like this warm and fuzzy story. 

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Filed under Personal Real Estate Opinions, Social Issues

July 20, 2007 · 8:12 am

Bleeding Kansas: Taxation Without Representation

Once again Missouri has figured out a way to stick it to Kansas. And once again, Missouri will lose if Kansas chooses to retaliate.

Reported in today’s Kansas City Star (go out an buy a copy)…

The first shot was fired by Missouri when Gov. Matt Blunt signed a bill this month providing an income tax break for Missourians who receive Social Security. It contained a little-discussed provision eliminating a deduction for real estate taxes paid outside Missouri.

That’s a $190 ding for the typical Johnson County resident who works in Missouri.

When someone asked Governor Matt Blunt of Missouri about the tax that screws Kansans his response was again reported in the Star as…

Blunt said he was the governor of Missouri and his focus was on reducing taxes for Missouri residents.

As someone who has to pay some Missouri taxes, this is just stupid. Why? Because when Kansas inevitably responds, here are the numbers

Based on commuting patterns, Johnson County’s Economic Research Institute estimates that more than 71,000 residents from eight nearby Missouri counties work in Johnson County. And at least 53,000 Johnson Countians work in those Missouri counties.

So by getting taxes from 53,000 JoCo residents the Governor will cost 71,000 of his residents higher taxes. Will Missouri ever learn? This is why there is so little cooperation between the “rich” Johnson County and the “incompetent” Kansas City/Missouri governments.

Nobody asked, and it has nothing to do with real estate investing… No wait, it has everything to do with real estate and real estate investing. More taxes cause higher expenses. Higher expenses cause higher rents and fees. Figure it out. Just my $.02 on the subject.

For you out of town readers Kansas City, Jackson County and the State of Missouri are always trying to figure out how to screw Johnson County, Kansas. When they did a study and found out the majority of ticket buyers to the Chiefs and Royals were Johnson Countians they added a per seat tax. Then they “locked out” Kansas ticket buyers for the perennially sold out Chiefs until all the Jackson County residents who wanted tickets had tickets. (Not that Jackson County can support the Chiefs all by themselves.)

Then there is the City payroll tax. The bi-state tax and the never ending attempt to get Johnson County to further subsidize Kansas City, Missouri. I’m all for civic cooperation, realizing we all have a stake in this metropolitan area. It would help is stupid policies like these weren’t instituted. It just builds further resentment.

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Filed under Kansas City, Social Issues

July 18, 2007 · 8:08 am

A Smart Investment? Is The TV Worth $3.7M?

Loyal readers know how I love numbers. Numbers are concrete. They add up. They are infallible…so long as you plug in the right numbers.

Real estate investors tend to love numbers, too. But this link below is worth reading for everyone. Not just people concerned about their real estate future. But everyone concerned about their financial future.

How to Earn $1 Million by Not Watching TV

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Filed under Social Issues