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Sorry I’ve been away this last week plus.  Here are my list of excuses;

• The NCAA Tournament held it’s Sweet 16 (as far as my beloved Jayhawks made it) through Championship Game and those that are regular readers know I worship college basketball.
• I celebrated my 44th birthday with my family.  In my mind I just graduated high school…
• Getting ready for Missouri audit.  Looking and re-checking each and every document over the past 12 months to be sure each box is checked.  For every mistake they can find both property management wise and real estate wise it’s about a $250 fine.  That adds up.
• Just needed a writing respite.

But sadly for you I’m back!

Here is a little blurb from the Kansas City Star that is telling…

Retail and recreational development in Wyandotte County has helped raise the average weekly wage in the county 7.5 percent, the seventh-largest increase among 335 large U.S. counties. The U.S. Bureau of Labor Statistics reported Wednesday on increases from the third quarter of 2007 to the third quarter of 2008. The average wage rose 4 percent in Johnson County and 3 percent in Jackson County. It dropped 1.7 percent in Clay County. Those counties average weekly wages: $867 in Johnson; $830 in Wyandotte; $851 in Jackson, and $765 in Clay.

I was eating Mexican food the other day at a little restaurant on the west side of Olathe and turns out the 50% owner there has been a property developer and builder for many years around the Kansas City area, especially on the southern Kansas side.  We naturally struck up a conversation about current market conditions and how I felt that the new home builders in Kansas City were really taking it on the chin because of the overbuilding that took place.

He turned the conversation a direction I had not thought about.  With the suffering and closing of so many of our local builders here in Kansas City has the door been opened for national builders to come in? 

Pulte was here and pulled out.  I thought largely because they offered floor plans, construction methods and ways of doing business not yet accepted here in the KC area.  When I lived in Tulsa I was always told Tulsa was the largest metro area without a national builder.  (I never verified.)  But is it Kansas City now?

I don’t know whether his prediction of national builders coming in to KC strong when the new inventory gets absorbed but I can believe that we are in a classic real estate cycle and that many of the local builders we all knew of will never be back.  Some will weather this storm.  But how many?

Let’s be clear, this real estate investing blog is a resource of Chris Lengquist, a real estate agent with Keller Williams Realty, Diamond Partners, Inc. located in Olathe, Kansas.  (A suburb of Kansas City.)  Most people seem to understand that.  But lately I’ve had literally dozens of emails wanting free counseling and advice while “using my cousin who has a license” type people.

Hey, this website has a wealth of knowledge on it concerning the owning and operation of Kansas City real estate investment property.  It’s all here and free to be read.  You don’t have to register.  You don’t even have to use me as your real estate agent.  But please, do not call  or email me for quick advice if you have no intention of ever using my services.  Show some respect.  Hey, I know, have your “cousin” read this blog so he or she will know something about what they are talking about.  🙂

Not trying to be hateful here.  If I was that way I wouldn’t do this blog.  I put out this real estate investing blog for the following reasons;

1. It brings me a consistent flow of contacts and leads.  (People read.  People like.  People choose me to represent them.)
2. It stops people from making mistakes.  Lots of them.  (I’ve had many a person call or email to say “thanks” for some piece of knowledge they found on here.)
3. Anything I can do to stop some people from investing is fabulous.
4. Anything I can to to get some people to invest is terrific.

BBQ Capital: A Kansas City Real Estate Investing Blog is my pride and joy.  I actually run several sites and blogs.  But this is my baby.  I pour out my emotions on real estate investing, crooked agents, barbeque and Jayhawk basketball on here all the time.  Consistent readers get to learn who I am before ever picking up the phone.  I’m here and I’m transparent.  But I won’t work for free.  😉

If you ever want to just discuss owning rental property here in the Kansas City area just pick up the phone or drop me an email.  I love to talk about it.  But not if you have no intentions of ever using my services.

…for my God, my family and my country.

…especially for my wife.

…for my clients.  They are some of the best and most loyal.

…for opportunity.

…for struggles.

…for our readership.

Take a minute and make your own list.  It’ll bring a smile to your face.

I used to know investment loans as well as any lender out there.  Ask me anything, I could tell you.  Now, since it all changes on a minute by minute basis (seemingly) I don’t know what to think.  Read this email I just received from someone under contract to purchase an investment property right now:

Fannie/Freddie changed the rules about the rental propertyI already own.  Apparently, since I don’t have 30% equity or greater in the Grandview duplex they don’t count the rental income, HA!  But of course they still count the mortgage payment, which destroys my debt to income ratio.

I’m still traking this down, of course.  But this is getting insane.  This isn’t even reasonable.  He’s owned the properties for years but keeps them leveraged for capital growth.  Not counting any income from the properties but counting debt isn’t even reasonable.

As regular readers know I took my new 16 year-old to Chicago Fri-Sun and had a great time.  Chicago has a new fan.  I loved it and so did Jacob.  And while we were there we got a call Friday morning from Geno Petro anxious to show us his town.

Geno picked us up around 10:30 and proceeded to give us a three hour tour of the city.  Lincoln Park.  Wrigleyville.  The Gold Cost. Lake Shore Drive.  Halstead Street.  The Wienerville hot dog stand.  Geno showed us real estate and gave us price points.  Oy.  Geno showed me what Chicago people call a duplex.  Much different than what Kansas Citians call a duplex.  Much different.

Then Geno turned us loose.  We took the blue train out to Bucktown and proceeded to walk and walk and walk.  A tennis-shoe tour of the city.  We even stumbled across a Jayhawk bar at the Armtiage stop of the brown line.  Further proof that the city of Chicago has class!

I highly recommend setting up rights-of-passages with your children.  I think we had a weekend to remember.  But I digress.

Getting back to a real estate take, I was very impressed with Chicago.  But their prices are much more extravagant than what we deal with here in Kansas City.  I’m not sure how I would work numbers up there.  My guess is they are not all that attractive.  Not Los Angeles real estate investing bad.  But less profitable than here.  And I’d have to learn all new terminology to get acclimated to that real estate market. 

Thank you Geno for the guided tour.  You are truly first class.  Thank you Chicago for letting us stay.  And thank you for the advice many of you gave through emails and comments.  The architectural tour was fun.  The dogs were good.  (You know, they are still hot dogs, right?)  And the pizza fabulous.