I don’t know if you need the reminder. I do.
I stole this from John Novak’s active|rain blog.
UrbanDigs Talks Subprime ARM Resets
Take the time to go over to UrbanDigs and look at the ARM resets due in the next 12-18 months. Kinda cool.
Filed under Worth Reading
Back Away From The Ledge: It Will All Be Okay…
Concerned? That’s okay.
Distraught? Calm down. It’s all going to be okay.
Fed drops discount rate 1/2 point from Ardell DellaLogia.
A Billion Here, A Billion There, And Pretty Soon You’re Talking Real Money by Jeff Brown.
Filed under Worth Reading
Here’s What I Think About Countrywide, Saundra McFadden-Weaver & George Brett
Countrywide has gotten themselves into a pickle. So has just about every major lender out there. But with Countrywide having to tap into an $11.5 billion dollar line of credit it sends the message that the secondary loan market is in trouble, big trouble.
“The asset-backed commercial paper market has virtually shut down,” Friedman Billings Ramsey wrote in a research report. – Source: Kansas City Star
My opinion is that we are in for more turbulent times than I had initially understood. A tightening of lending standards wasn’t possible in a self-policing sort of way by the mortgage money market. So now, as a matter of economic principal the market is doing it for them. Another classic example of how free enterprise works. But it can be mean as hell.
If you are an “A” borrower you should still be okay. Make no mistake about it, there are still lenders out there that want your business. But follow this advice from yesterday’s edition of The Washington Post.
“What I’m telling people is that they should not shop around for the lowest rate necessarily,” Binstock said. “Go with the lender who you think is going to be there in the end.”
***
Saundra McFadden-Weaver, a former Kansas City Councilwoman, was found guilty on mortgage fraud charges yesterday here in Cowtown. She still proclaims her innocence, naturally. But based on my experience with the real estate boom, especially where it pertains to “flipping” houses, I have no doubt she is guilty.
But is she being selectively enforced because she is a former Councilwoman? I think it doesn’t hurt. I’ve put together entire files and sent them to the Kansas Banking Commission without so much as a response from them that proved mortgage fraud by a wealthy “lender” located here in Overland Park. But I guess he didn’t have a name. And the victim was a barely English speaking immigrant. Not sexy enough, I guess.
***
It was 27 years ago today that George Brett raised his batting average to .400 by going 4 for 4 against the Toronto Blue Jays. He finished the season at .390. Oh, so close. But George, the memories you gave this young man that grew up in Kansas City are priceless.
Thank you for giving Kansas City it’s greatest sports hero. You stand with our greats: Len Dawson and Buck O’Neil.
My Friend Geno In Chicago Talks Catholic
For those of you that have never been introduced to Geno Petro up in Chicago…you have really missed something.
No, he has nothing to do with real estate investing. But of all the real estate bloggers out there his writing is up there at the top.
His post Ol’ St. Joe Is Good To Go is one of the best reads I’ve had lately. Well written with a point in there somewhere. Actually, many points. Geno, thanks for the laugh.
Filed under Worth Reading
Depreciation: #3 Benefit When Investing In Kansas City Real Estate
Did you know that the IRS allows you to depreciate your real estate holdings? Of course you did.
Quick. How long does it take?
Right. Twenty-seven and a half years (well, that’s not exactly accurate but we’re talking about our government setting this up, right?).
Also, wrong. Did you know you could break out your depreciation? Sure, the building has to be depreciated over 27.5 years. But what about your personal property within the house? i.e. carpeting, lighting fixtures, appliances, etc. Five (5) years! At a much higher percentage.
And land improvements can be depreciated over the course of only 15 years. What are land improvements? Landscaping, sidewalks, stairs, driveways, etc.
All this is called Cost Segregation. And it’s too complex for me to explain all the benefits of accelerating your depreciation here. Feel free to do some research on the web or ask your tax planner about it. But sadly, it’s over the heads or beyond the knowledge of many tax “specialists” as well.
Make sure that if you choose to take advantage of Cost Segregation for your rental income properties that you have a tax preparer that understands what Cost Segregation is!
Filed under 4 Benefits of Real Estate Investing
Further Proof Of Kansas City Real Estate Bubble Bursting!!! A Must Read!
See, I can tell who watches the national news and/or cable news networks. They are constantly asking me about the real estate bubble bursting and how bad is the market?
Here I have actual proof of the Great Kansas City Housing Bubble Burst of 2007. From today’s Kansas City Star they report that sales are down on data reported for April – June compared with last year…
Check out these numbers if you want further proof!!!!
- Florida – down 41.3%
- Nevada – down 37.5%
- Arizona – down 23.4%
- Maryland – down 21.1%
- California – down 19.8%
- Kansas City area – down 0.7%
I don’t know about you but I was staggered by our numbers. I’ve been wrong. We are in a huge crisis here in the Kansas City area. Sell. Sell NOW! Slash prices by 15%-20%. But just get out! Live on the streets if you have to. But don’t take that chance.
What? We still have very modest appreciation? Darn. I was hoping for more headlines!
Filed under Personal Real Estate Opinions
BBQ Capital | Kansas City Real Estate Investing 
