BBQ Capital | Kansas City Real Estate Investing | Real estate investing and property management in Kansas City.

August 7, 2007 · 11:25 am

Get The Protection You Need When Buying Income Property

So I was watching my son get ready for football practice yesterday. (Before I get started too far, how cool is it that Frank Seurer, the ex-Kansas Jayhawk and ex-Kansas City Chief quarterback, is his head coach? And that the kids get to play a scrimmage in Arrowhead Stadium the day of the Kansas City Chiefs v Miami Dolphins pre-season game?)

Anyway, back on topic, here is a short list of items that the boy had to suit up in to protect himself while playing the game of football;

Helmet
Chin Strap
Shoulder Pads
Thigh Pads
Tailbone Pad
Hip Pads
“Privates” Pad

I mean, the boy is going out to have fun but has to protect himself against the very real dangers of getting hurt.

Just like a real estate investor…especially a first time investor. Here is my short list of protection you should put on before buying any income property;

Excess funds account of 2-4 months
Knowledgeable investment real estate agent
Knowledgeable property manager
Knowledgeable tax planner
Knowledgeable real estate attorney
Knowledgeable investment mortgage professional

Because you don’t want to get hurt, perhaps seriously, with your real estate investments. Proper real estate investing takes professional skills, time tested theories and patience. It’s not magic. Just like the Green Bay Packers of the Lombardi era could tell you what play there were going to run and still succeed you need to be able to run a very predictable play to get the right income property for you and your circumstances.

It’s not rocket science, this real estate investing thing. But maybe it’s a little like football.

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Filed under Personal Real Estate Opinions, Real Estate Investing

August 6, 2007 · 7:16 am

Numbers + Emotion = Kansas City Investment Property

Anyone that reads my blog for more than a day knows that I love the numbers part of Kansas City investment property. If the numbers don’t make sense you should just pass and go on to the next rental house possibility.

But numbers are not everything when it comes to selecting your investment properties. Given that we are human beings with different emotional needs and judgement processes we cannot discount our feelings when choosing our investment property.

The time when I see this become the most subjective is when I’m working with newer investors who are considering the purchase of a first duplex to live in half and rent the other half. I’m working with two such investors right now. It’s a great way to start. Believe me. But there’s also the human element of “do I want to live here for a year or two?” to be considered, as well.

It’s not that the duplexes the couples have been shown are beneath them or, all in all, in bad shape. It’s just that the available inventory, by in large, is not up to the standards they have set for themselves, even in their current apartment situations. I get that.

So I’ve been encouraging them, and continue to do so here since they are both readers, to know that numbers are important. No doubt. But if the numbers are reasonably close to the other investment property choices out there, though slightly lower, but have a much better school district and/or neighborhood feel and/or updated everything, then that counts, too. (That is a complicated sentence that I’m sure my 8th grade teacher Mrs. Sanders would mark through with her red marker.)

Keep the numbers in mind when you purchase a prospective Kansas City investment property. If you are going to live in half for a couple years it’s okay to let those numbers “slip” a little bit. (I said a little.) Because the rents will more than likely catch up and exceed on the numbers quotient before it’s over. And you need to be proud of where you live, investment property or not.

Wonder Woman, Me, My Boys & Barbecue

Warning: No real estate or real estate investing will be discussed here during this post. But stay tuned…

Every year before school starts we have a tradition in our family. I take the boys on a “Father/Son” trip. Nothing fancy, and really no rules. We get away for a day, or two, or three.

It started when my oldest was entering Kindergarten.

1998 – Thurmont, Maryland: Cunningham Falls, camping and canoeing
1999 – Cooperstown, New York: George Brett’s Hall of Fame induction, camping
2000 – Assateague Island, Maryland: camping, wild horse chasing and swimming in ocean
2001 – Move from Maryland to Oklahoma scrubs this year’s F/S trip…I regret that.
2002 – Jet, Oklahoma: crystals digging, bat cave and OK sand dunes “Little Sahara”
2003 – death in family created “rain out”
2004- Dallas: Six Flags (first with Brandon after adoption)
2005 – Osage Beach, Missouri: Camping, jet skiing and cave exploring
2006 – Hutchinson, Kansas: Camping @ Cheney Reservoir and Smithsonian Air & Space Museum
2007 – St. Louis: Gateway Arch and Six Flags

Anyway, as you can see this year we went to the Gateway Arch in St. Louis. We got there early and went up. If you’ve never been, I don’t know why. The view from the top is awesome. And the museum below the ground is pretty informative and well done.

Then we headed on over to Six Flags. But on the way I spotted a BBQ. You know what that means. We pulled into the parking lot for some early grub before heading on into Six Flags. The place is called Super Smokers.

Immediately I liked the feel of the place, though I was prepared to dislike it. My past experiences with St. Louis BBQ hadn’t been good. I mean, how could a city equidistant from Kansas City and Memphis not have a good barbecue tradition?

Anyway, I was a little alarmed when I noticed the menu had items like Nachos. Is this a real BBQ? But I will make allowances because, again, BBQ isn’t part of the city identity in St. Louis.

All fears were relieved when I got my beef brisket sandwich and beans. The meat was moist and tender with a smoky flavor and the beans were good. Several sauces were available and I liked the sweetness of the Kansas City sauce and the smokiness of the Championship sauce. The Texas sauce was vinegary, as you would expect. I didn’t care for it too much.

The owner also happened to stop by our table and was very, very personable. He even gave me a rib to try which was moist and tender, as well. It had a dry rub? I could taste the smoke but there was another flavor in there as well. So I would recommend a stop there. It would be worth your time. Just don’t get the nachos. Go to a Mexican restaurant for that. 🙂

At Six Flags we had a great time, of course. The coolest ride for me was the new Tony Hawk. It’s a roller coaster and the cars you ride in spin 360 degrees around continually while you ride. That’s pretty cool.

I met this wonderful woman there, as well. We instantly connected but alas, she had to run off to save the world. I guess it was never meant to be.

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Filed under Kansas City BBQ

August 3, 2007 · 2:22 pm

Weekend Reading For Real Estate Junkies

First we’re gonna take you over to the Real Estate Zebra. Took me a few visits to figure out he’s a REALTOR and a basketball official. So you know I’m gonna love him. Anyway, read this: Real Estate is a Team Sport.

Then you may want to jump over to BawldGuy’s Chasing Chump Change Cash Flow – Sacrificing Tomorrow’s Dollars For Today’s Pennies.

Lastly, and this is shameless self-promotion, take a visit to Blogger Spotlight; Chris Lengquist. Someone actually cared about my thoughts regarding this whole blogging thang.

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Filed under Misc. Real Estate

August 3, 2007 · 7:21 am

Gen Y Will Be Your Tenants

I was reading through my copy of the REALTORS Commercial Alliance Report last evening and specifically a story titled Who Are Tomorrows Renters?

Thought I would share a couple of exerts from the article:

“I’m really bullish on multifamily demand” says Leanne Lachman, president of Lachman Associates…

Projections by the Joint Center for Housing Studies at Harvard University estimate that around 2 million new households will be formed between 2005 and 2015. Rising interest rates and booming growth in many traditionally renter demographics make it likely that apartments will receive a proportionately higher share of that growth than they have in the last few years.

Between now and 2020, 4 million Americans or more will be turning 18 each year.

While an average of 31 percent of all U.S. households rent, the number jumps to 74 percent of those under 25 years old and stays at 59 percent for households between 25 and 29 years of age…

Some households rent as a lifestyle choice, avoiding the costs and inflexibility of home ownership. Indeed a 2006 JCHS study found that some 20 percent of renters had incomes above $60,000. However, the majority of long-term renters are there because of economic necessity.

I find this all a great indicator of growth. Especially in the areas of town that will appeal to the upcoming youth. Close to business centers, nightlife and where space is affordable. Know of any areas that fit this description?

Property Management Problems

I received a disturbing phone call yesterday from a client I have out west. (You know who you are.) Before we had ever met she had purchased an Independence, MO duplex and arranged for a property manager to take care of the rental home.

Well anyway, she called me yesterday to ask about other property managers I might know in that area who could take care of the duplex. Why? Her tenant had contacted her and said the property manager was missing in action.

Carpet had gone unreplaced that she had approved four months ago. The other side is vacant without so much as a sign in the front yard. And July’s proceeds had yet to be forwarded to her.

Wow. It got me to thinking that owners may not be fully aware that when you hire a property manager for your investment properties that you will still want to stay in some form of contact or the other with your tenants. Maybe have them fill out a questionnaire once a year about the PM’s management abilities.

That, or you better have a lot of faith in a very good property manager for your investment properties.

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Filed under Property Management

August 2, 2007 · 7:57 am

Kansas City Royals: This Time Hire Frank White!

Now that Buddy Bell has decided to move on it’s time to thank him for being the sacrificial manager during times when he was given little talent to work with. But I smell a worm turning.

The infusion of young raw talent has allowed the Royals to give glimmers of hope. Dayton Moore is starting to assemble these guys with an eye towards future success. He’s returning to the old Royals philosophy of team speed, pitching and defense.

Who should the next manager be? Easy. Frank White. And no I don’t think this because he was a Hall of Fame caliber player.

Frank has paid his dues in Wichita. He managed and coached many of the younger guys now on the Royals’ roster or waiting in Omaha. He’s learned the game from a different perspective and has earned the right for serious consideration.

And the Royals owe it to the fans. We put up with a lot and get national ribbing when we only turn out 15,000 for a game. But hey, no playoff appearances since the ’85 World Series will do that to you. Especially when capped by 3 out of the last 4 seasons ending with 100+ losses.

For whatever reason White has been snubbed by the Royals administration in the past. Give him a chance. I really don’t want another recycled “baseball man” leading these boys. Give us a guy with heart. A guy that has humbled himself in the bus leagues. A guy with two World Series rings and multiple Gold Gloves. A guy that KNOWS how to win.

***

While I’m on my Royals rant, did you see the two run, second deck blast by Alex Gordon in the 10th last night? I was telling my buddy over a cold beverage last night that he reminds me of a past Royal.

Weight on the back leg. Bat held high over the back shoulder. Hand coming off the bat early in the swing. Willing to go wherever the pitch takes him.

Alex got off to a rough start. Probably moved to the Bigs too quickly. But we need the help, badly. And playing third base the comparisons are going to be there. Keep developing kid. Keep developing.

And Dayton, sign him before he’s fully developed so we can keep him instead of seeing yet another Royals product in the playoffs with Boston or New York or LA (Anaheim, California…whatever they call themselves this week).

Okay, now I have to get back to my real estate business.

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Filed under Kansas City Sports