May 30, 2007 · 7:47 am

Big Bubba’s BBQ of Olathe, Kansas

Located on the east side of Olathe, Kansas is a BBQ that I really, really like called Big Bubba’s Bar-b-q. Now let me just say right off the bat that the BBQ is 1000% better than the website. The website looks bad. But the bar-b-q is oh so good.

My family and I ate there last night and over ordered so that we can eat more tonight! One of the things about Big B’s is that they don’t add sauce to their meat. It’s a big deal to them. So don’t ask them to unless you want a dirty look. But there is sauce on the table. They aren’t the best ribs in town but the brisket is to die for. Beans are very good. And the turkey is about as delicious as you’ll get anywhere in the world.

Give it a try. You’ll be glad you did.

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Filed under Kansas City BBQ

May 28, 2007 · 10:31 pm

Do You Have A Sinking Fund For Your Investments?

Sinking Fund: noun – fund accumulated and set aside by a corporation or government agency for the purpose of periodically redeeming bonds, debentures, and preferred stocks. The fund is accumulated from earnings, and payments into the fund may be based on either a fixed percentage of the outstanding debt or a fixed percentage of profits. Sinking funds are administered separately from…

Source: Encyclopedia Britannica

I use the term Sinking Fund a little bit differently. But the end results are the same.
If I am your agent during a transaction I will look for things that are going to cost you money down the road. Example: Sure, it’s a great duplex with healthy cash flow, a new furnace and air, good structural soundness and a good many updates.
But did you notice that roof?
Your insurance agent, your inspector and I all agree that the roof has a shelf life of somewhere between 5-8 years left before it will need replacing. What do we think that is going to cost? Let’s say for our example to replace that roof today would run right about $5,500. That’s a complete tear-off and replacement. So let’s just say that will easily be $6,000 grand in 6 years.
So here’s what you do. $6,000 divided by 72 months is $83.33 per month. Now figure out how much of that monthly fee you want your property to pay for. All of it? Okay, take the cash flow you figured you were getting and subtract the $83.33 per month from it. Does the property still look good to you?
The point of this exercise is to get you to understand that unless you wish to be a slum lord and bleed the property dry (making sure you won’t get top dollar when it is time to sell) you are going to have maintenance along the way that you need to account for.
And for me, well, I would rather have my rental homes pay for themselves. Rather than me writing a $6,000 check from my personal funds. Know what I mean?

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May 26, 2007 · 12:43 pm

Pirates of the Carribean: At World’s End

Okay, so I took my two boys to this movie last night. I figured it couldn’t be as bad as the second one. And I was right. It was worse. The movie runs 2:45. So take along a pillow. I just kept looking at my watch thinking “it has to be over soon.”

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May 25, 2007 · 1:33 pm

BBQ Heaven: The Great American BBQ Fesitval


I almost forgot to mention! Jeez. This weekend is The Great American Barbeque Festival. Click the link to learn more about this great BBQ, Blues and social event. Hope to see you there.

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Filed under Kansas City, Kansas City BBQ

May 25, 2007 · 7:56 am

Shoulda, Coulda, Woulda: The Investment Property That Got Away

I want to hear from you about the “one that got away.” The rental house you shoulda bought. The income property you coulda kept. If you only woulda sold that investment property before all heck broke loose.

Pictured above is my old neighbor’s house. He sold his a month after me for $3,500 more than I had sold mine. Six years later it is for sale for $193,000 more than he sold if for! If you look at the chocolate brown house to the right…that was mine.

MY LAMENT

I like to keep track of my old neighborhood in Germantown, Maryland. In late 1998 I bought a townhouse for $109,000 during one of Washington, DC’s housing corrections in the Stoneridge subdivision of Germantown. When my life changed in 2001 and my wife and I decided to get out of DC to return to the Heartland I really wrestled as to whether to keep the house as a rental or to sell it and take my gains with me to help get me started in my new life.

To keep the house as an investment had upside. It was, after all, the Washington area and therefore real estate always does better there than just about every city in the country. Good jobs, great growth and everything. But the thing that kept coming back to me is that I might need those funds to help me re-establish myself and that 1,100 miles was a long way to be from a rental property that I owned.

So I put the house up for sale. I sold it in 4 days for $142,750. No house in our neighborhood had ever sold for that much and getting the appraiser to get on board was a challenge. But we did, I made $33,750 (before selling expenses) in just under 3 years. I was pretty proud of myself.

But I just had a nagging feeling about selling that house.

Even after the current housing correction that neighborhood is still selling in the $330,000 – $345,000 price range. At one point I believe it had gotten up to the $380’s or slightly better. If I had kept that house and sold it during the peak (and I had a good feeling that was the peak for this go around of the housing cycle) I would have made an additional $232,000. That would have been $29,500 a year equity growth without even counting principal reduction, depreciation and cash flow before taxes.
Errrrr.

What is your story on the “one that got away?”

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Filed under Real Estate Investing

May 24, 2007 · 7:24 am

Do It Yourself Real Estate Investing


I have a confession. Regardless of the task the first thought that comes to my mind is “Hey, I can do that myself and save money!”

For the record, I’m usually wrong.

Take some wood rot and termite damage I needed to repair on my garage door frame. I went out, bought myself a reciprocating saw and tore into the house. After all, when I watch my contractors do it for my client houses they make it look so easy. Now it looks like a butcher got a hold of it! Then I tried fitting in the wood pieces to get ready for the trim pieces.

To make a long story short, I have a guy that does wood rot repairs for a living coming out next week to clean up my mess. He could barely contain his laughter when he walked up on the job I had been doing. And rightfully so, I might add.

*** *** *** *** ***
Sometimes people will take the time to read some blogs, read some books and attend a seminar or two to learn real estate investing. They say to themselves “Hey, I can do that and save myself some money!”

And I don’t blame them for feeling that way. But if they get something wrong, the consequences can be long lasting and disastrous. It is very hard work keeping up with neighborhood trends, rent values, tax codes and income property financing. Knowing what sells and what wont is as much an art as a science. Seeing where growth will occur is a skill that needs constant practice and fine tuning.

I know and understand the base feeling of wanting to accomplish something yourself to both establish your independence and to save/make money. But when it comes to purchasing and/or selling Kansas City income property I hope that you will call a professional.

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May 23, 2007 · 7:01 am

Own Real Estate Within Your Self Directed IRA

Are you using a self directed IRA to purchase real estate investment property?

If not, you really need to hunker down and wade through this posting. It could be the difference between retirement and a retirement worth having.

Understanding Your Investment Dollar

Most people in America today have no real understanding of their financial situation. That’s not insulting you. It’s just the truth. And here is a perfect example.
Example: A fresh out of college graduate takes on his first job and immediately begins making more money than he has ever had before. He feels kinda guilty about spending all that money on just cars, music and entertainment so he pays heed to the guy sitting next to him in the office and sets up an IRA. Immediately he begins contributing to the IRA and maxes out his contributions each and every year. (Which for 2007 is $4,000.)
*** To finish reading this article click here. ***

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Filed under Financing Options, Real Estate Investing