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

July 30, 2007 · 5:04 pm

Why You Need A Real Estate Investing Specialist In Kansas City

My wife has Graves Disease. That’s Hypothyroidism. Basically, her thyroid will kill her if not monitored. It’s changed her personality and given her a whole host of symptoms to deal with.

What does this have to do with your choice of REALTOR when you are involved in real estate investing? It really doesn’t. But it does provide another great teaching point.

***

A couple month’s back my wife was really out of sorts and out of character. Her doctor didn’t know what was going on and so I sent her to mine. To my doctor’s credit she picked up right away that this was probably Graves Disease. She prescribed the right medicine and recommended a specialist.

We saw that specialist today. He really made us feel comfortable. And as I sat there listening to him speak I was prepared for everything. Marie and I had spent hours on the internet learning about Graves Disease. The good, the bad and the ugly.

What he said was NO SURPRISE to me at all. I had already read about it. Heck, I even knew before he said it what medicines he was going to prescribe and what the treatment plan would look like.

Then he said it. My doctor had prescribed the right medicine, but he was upping the dose 600%. I said six hundred percent!

Now, let’s understand each other. I’m not mad at my doctor. She is a general practitioner who immediately recognized that what the problem was and immediately ran tests. As soon as her suspicions were confirmed she sent us to a specialist. That’s her job. And she did it well.

Again, Chris, what does this have to do with real estate investing? Everything.

I’m not against you thinking you know as much as a real estate professional when it comes to buying or selling a home. I realize you’ve done it once or twice or six times. (Sometimes I have six closings in a month.) And I know you’ve read four books on owning and managing income property.

I’m also fully aware that you belong to two real estate investing clubs, have an uncle that owns two rental homes and attended a short sales seminar that was put on for only $395.

But damn it, when my wife’s health and well being is at stake I’m going to the specialist. He did not say one thing I didn’t research on the internet. Well, check that. If I had read on the internet and then prescribed my wife medicine I probably wouldn’t have gotten the dosage right. And maybe I would have missed a symptom or two and had the wrong disease altogether.

What does he charge? Who cares? Can I find someone to do it cheaper? Who cares? Am I going to argue with him about everything?

Now, about your finances. Do you want to wing it from something you researched on the internet? Or do you think in the long run, at the very least, that you would be better off working with someone who specializes in the real estate field with a double major concerning real estate investments?

If you are outside of Kansas City just count this as the rantings of an evil REALTOR only bent on making a commission. But I beg you, if you are in Kansas City and interested in real estate investing, please seek my help. Don’t gamble your future. I will cost you some money. Money well spent.

7 Comments

Filed under Real Estate Investing

July 30, 2007 · 10:00 am

McGonigle’s Market…And BBQ.

When in Kansas City and on Ward Parkway, you may want to stop at McGonigle’s Market. Located at the intersection of 79th Street and Ward Parkway McGonigle’s is a great place to pick up some bar-b-q for lunch.

The pit is located just outside the market and the brisket that I had was fantastic. And just south of the parking lot you will find picnic tables in which to enjoy the sandwich or ribs when the days are nice.

Inside the market you will find all sorts of prime meats and groceries. Give it a try. You won’t be disappointed.

Rested, Relaxed & Back To Work With Kansas City Real Estate

Thank you to all my loyal readers and clients who allowed me a few days away! I was beginning to feel a little like Clark Griswold when he got to Wally World.

My fuse had grown short and I was beginning to dread phone calls, emails and blogs. You know, burn out. It’s not just limited to the real estate profession. It can happen to anyone. Especially this Type A personality who doesn’t know when to turn off his phone and leave the computer alone.

My brother-in-law was retiring from the United States Navy after 20 years of service. In today’s times I figured that was quite an accomplishment. So we loaded up the van and left for four days down to Ft. Worth, Texas to their local Naval Air Station.

Congratulations, Gary. Job well done.

While we were there we had quite a bit of fun, too. My wife and other brother and sister in law went out to Ft. Worth’s Stock Yards for a little nightlife. And while I enjoyed myself there my wife knew I was out of place. Cows are good for eating and cowboys are great in movies, but…

We wandered around after a couple beers there in the Stock Yards and someone told me to go down to the downtown district. What we found there was more to my liking. It’s what Marie and I figure the Kansas City Power & Light District will be like when it’s up and running.

***

One of the reasons I work so hard is pictured to the left. Nearly 10 years old and full of mischief and happiness. The whole family, extended and all, got to go to this real nice little water park. A good time was had by all! And I got more than a little sunburned!

It was fun not answering the phone and pretending to be a kid. Racing my wife down the water slides reminded me of another time.

Work hard…and never forget why.

***

The best part about the trip was learning that my business doesn’t always need me there. My clients understood the need to get away for a few days. And Brent Sharp, a quality associate of mine, stepped into the gap and took care of a couple of issues for me while I was away. I liked learning that I’m not nearly as indispensable as I think I am. (That Type A thing, again.)

***

For those of you that have never seen the power and awesomeness of a Kansas thunderstorm, here’s what the leading edge can look like. Keep in mind that this was nothing to worry about. Why, because the sky wasn’t green and “bubbly.” Any true Kansan and Oklahoman will tell you there is nothing to worry about, generally, until the sky turns green. Then, look out.

Anyway, thanks for the few days off. Now I’m ready to get back to work for you and your Kansas City real estate needs.

1 Comment

Filed under Uncategorized

July 26, 2007 · 8:02 am

What To Expect From Your REALTOR Regarding Your Real Estate Investments

Yesterday I wrote a post titled Understanding Your REALTOR’s Role When Buying & Selling Real Estate. And for that post I concentrated mostly on the duties of your REALTOR when you are a regular house buyer/seller.

But what if you are an investor? What additional duties would you require from your real estate investing professional to help you stay out in front of the pack?

Here are a few things I think both you and your professional should be proficient at to help you maximize your investment.

Income and Expense Evaluations – This is critical. You will not have a full understanding of how much money you will make or lose on a property until you understand what is coming in and what will be going out. Everything in real estate investing revolves around the Net Operating Income. Without a true knowledge of that you are sunk from the start.

Return Comparables, Not Neighborhood Comparables – Your real estate agent should be able to calculate all measures of return important to you to accurately measure one property against another. Remember, you are buying future returns when you buy income property. The house or duplex is just the vehicle you choose.

Negotiations – This is where it can get sticky. When you are buying duplexes and apartments you are almost always buying them from other real estate investors. They are savvy. They’ve been to the dance before. They will know what they want and they read all the same negotiation books you read. Just today I had a phone call from the seller-agent of a duplex my clients made a bid on. He was probing and probing trying to get to the root of motivation. Once he has motivation, he has leverage. Finally, I advised him that I understood what he was doing but that I was also a professional. He chuckled and understood.

Now I don’t blame him for trying. I do, as well, on every transaction. Sometimes I run across agents that will give away the store. But not usually. Still, I try.

Take these three areas to heart. And your real estate investing career will go a lot smoother!

Yellowstone Bison

Here is something you don’t see everyday…

1 Comment

Filed under Uncategorized

July 25, 2007 · 7:11 am

Understanding Your REALTOR’s Role When Buying or Selling Real Estate

No question about it. There is a lot of confusion over what exactly your real estate agent should be doing for you when you are purchasing or selling property. So if I may…

Regular House Agent’s Role

A regular house agent’s role is different than an investment property agent’s role. Today we will talk about the “regular” house agent. And before we get started you need to know that all real estate agents are independent contractors. They have a lot of freedom (within their brokerage’s framework) in how they run their businesses. So while these are my guidelines that I think you should consider, you may find an agent who works differently.

What a buyer’s agent does do:

sift through homes for you that meet your needs.
preview homes for you to save your time.
help you to narrow the field to two or three homes.
learn as much as she can regarding seller’s motivation.
advise as to negotiation tactics and offer opinions.
keep lines of communication open at all times during negotiations.
recommend quality inspectors and title company.
keep you on track to satisfy contract demands.
follow up with seller’s agent to make sure seller is following contract demands.
review Settlement Statement for compliance and/or errors.
give you the keys to the house.

What a seller’s agent does do:

show you accurate comps to your home.
help you set a price that will sell.
properly stage the home to maximize appeal.
market your home using today’s technologies.
remember that agent has a fiduciary duty to you and not throw you under the bus to “double side” the deal.
help you to understand and evaluate feedback.
help you to understand and evaluate offers.
advise as to how to respond to offers.
keep lines of communication open during entire process.
coordinate inspections with buyer’s agent and set stage for renegotiations.
work through inevitable renegotiations.
make sure buyer’s agent is keeping buyer on track for closing.
communicate with buyer’s loan officer at least once to make sure buyer is on track for closing.
review Settlement Statement for compliance and/or errors.
congratulate you on the next step of your life.

These lists are not all encompassing and many of the points should have several sub-points. There could also be a long list of what an agent does not do. Let me know if you think I should include something else.

Understanding The Current Real Estate Market In Kansas City

Whether you are looking to sell a home in Olathe, Kansas or buy a home in Kansas City, Missouri you are probably asking yourself about the current real estate market.

With every group of people I meet the question is “How’s the market?” People want to know.

And so do I. Yesterday, I saw a couple of agents while I was out and about showing homes. When I asked them how the market was I got one “Great!” that seemed rehearsed and another “Well, I’m making a living. But that’s about it.”

IT’S NOT ALL ROSES OUT THERE but it’s not all thorns, either. A little history is in order here. During the great price run ups of the early 2000’s people got used to being able to sell their houses rather easily. Here in the Kansas City area we didn’t get the 20% appreciation rates they got out west and east. But we did get to the point where you could sell every year for 5%-10% more than last year. And sell it withing 60 days.

Today’s market is a bit different. It’s a “normal” market. Yes, despite what CNN and FoxNews tells you there is still appreciation here in Greater Kansas City. Yes, there are a few zip codes that have gone backwards. But not in a free fall fashion like parts of Cleveland. And yes, there are zip codes that have had significant increases, but not like Denver or Tulsa.

The key to selling your home today is proper pricing. Study the comparables carefully. Judge the condition of your house brutally and compare that to the SOLD houses. Where do you stand. Be honest, it will be the difference in whether you sell your house in 60 days, or not.

Don’t think that is possible? It is. Want proof? I can email it to you. Take a gamble and leave “negotiating room” and you will likely slip into that 4-7 month sales time range. Go ahead, argue with me. See how it goes.

Of course, buyers are loving life right now. Even if they sell their $150,000 house at a 5% discount they can pick up their new $235,000 house at a 5%-10% discount. See how they still benefited?

And selection, ah, the selection.

3 Comments

Filed under Kansas City Real Estate