October 29, 2013 · 8:20 am

Finding The Right Real Estate Agent for Real Estate Investors

Over on Bigger Pockets there was an article posted to real estate agents on how to work with real estate investors.  And by in large I really cannot argue with too much of it.  It’s critically important to work on finding the right real estate agent for real estate investors.  I like to think that I am one.  But I know my personality and style and target does not necessarily fit everyone else’s goals.  So hop on over and take a read.  As a real estate investor it will help you to know how to help your agent to help you.

But I also need to point out that when you find an agent that knows what he is talking about quit trying to abuse him. Do you know how many seminar goers I get wanting me to quit making a living and help them write 100 extremely low-ball offers so that maybe they will get one (and God willing, two) $40,000 houses?  Do you know how much work that is on my part?  Essentially some of you are asking real estate agents to work upwards of 60 hours in the hopes of making a commission of $768…or maybe twice that if  two pop.

Would you work that hard for $768? (Based on a 3% commission paid by seller and then a 64% split with broker.)  C’mon.  This is supposed to be beneficial to everyone.  A real estate agent that understands the numbers, the neighborhoods and the outcome is worth his weight in gold.  Do you know how many retirements worth having I have helped to fund for people?  And in turn I’ve made a nice living for my family.  See how that is supposed to work?

If you want to be a serious real estate investor at some point you are going to need a professional realtor.  Know what to ask.  Know what to expect.  Know how to compensate them fairly while maximizing your situation as well.  Win-Win isn’t just a trite saying.  It’s a profitable one, as well.

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October 23, 2013 · 8:24 am

Portraits Today Studios – Kansas City Photographers

For the readers in the Kansas City area it’s time to start thinking about the holidays and holiday pictures.  Did you know that Thanksgiving is only 4 weeks away?!?

kansas city portrait studio

If you are in Olathe or the greater Kansas City area you might want to consider Portraits Today Studios in Olathe as your portrait studio of choice.  We’ve put a click to it so go on over and spread the word to your friends and family.  I know this has nothing to do with real estate investing, but for me it’s another investment vehicle.  🙂

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September 30, 2013 · 8:45 am

It’s About People

This post isn’t going to concentrate on rental property management or buying the right investment property.  It’s going to focus on people.  Because isn’t that why we all work so hard for the money we make?  To take care of the people I love, that’s why I do work as hard as I do.

flood vicitims lyons co

This past week it was my honor to go with Samaritan’s Purse to Lyons, CO to help with the flood relief.  You can see the pictures on my facebook page.  The devastation was quite humbling but the spirit of the people there was quite powerful.  In addition to Samaritan’s Purse ( a Billy Graham Ministries inspiration) there were also secular volunteer groups there to help and help they did.

None of us know what tomorrow will bring.  We’re all working hard to provide and build our asset base.  But sometimes it is good to remember that it’s temporary and can be taken at any time.  People and relationships simply cannot be brushed aside to allow for more money and assets.  People and relationships can hold you together through a storm and strengthen your spirit after a storm.  Keep working hard towards your “Retirement worth having” but don’t forget who you hope will be there with you.  Because it won’t be any fun to be retired by yourself.

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September 25, 2013 · 8:30 pm

A Retirement Worth Having

Real estate investors, especially new ones, are constantly putting the proverbial cart before the horse.  Why are you picking investment strategies before you even know what the goal is?

A Retirement Worth Having is not about whether you are flipping or holding or selling notes.  It’s about a purposeful plan, as my friend on the west coast would say.  Seriously, I like to spend and hour to 90 minutes talking with my prospective clients finding out what their goals are, economically and lifestyle speaking, before I’ll even go out the door to show them a single possible rental property.  What’s the point, otherwise?  How can I match you with an income property that will help you to accomplish your Retirement Worth Having if I don’t even know what the cash flow or equity position will need to be?

Stop looking at possible rental houses until you know what you are trying to accomplish.  I’ve said this many times and I’m going to keep saying it.  Think about it.  It just makes sense.

Kansas City Investment Property
Chris Lengquist
Keller Williams Realty
Diamond Partners, Inc
Olathe, KS
913-568-1579

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September 23, 2013 · 7:37 am

Rental Property Makes Money Four Different Ways

So you have been researching rental property and you are drowning in numbers.  Cap rates?  Cash on cash?  Internal Rates of Return?  Good grief.  What you need to know is that rental property makes money four different ways.

  1. Cash Flow Before Taxes
  2. Principal Reduction
  3. Tax Savings
  4. Appreciation

These four ways of making money with investment property are all intricately related.  For instance, the more cash flow the cash real estate investor goes for the more likely he’ll have little to any appreciation as compared to surrounding areas.  Likewise, the more appreciation a long term buy and hold investor goes for the less cash flow he’s like to accumulate (without a significant down payment) because these properties are usually in the nicer areas around town.

Sure, there are exceptions to the rule.  But what you need to decide as new investor (or experienced trying to re-start) is what the end goal is before beginning.

Give our team a call today to help you make a plan for a retirement worth having.

Real Estate Investing in Kansas City
Chris Lengquist
Keller Williams Realty
Diamond Partners, Inc
Olathe, KS
913-568-1579

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September 16, 2013 · 7:28 am

Housing Protection – Know Your Rights

There are seven protected classes when it comes to housing in the United States.  Not eight.   (More on “eight” in a minute.) But literally from the moment you sign up for real estate classes you are told about the seven protected classes.  Per HUD and a million other websites they are;

  • race
  • color
  • religion
  • national origin
  • sex
  • disability
  • familial status

Recently, as professional property managers, we have had to evict a couple people because despite trying to work with them they could  not or would not catch up on their rent.  And one of them was out of his lease and kind of a pain with so may phone calls (along with other issues) that we decided to move forward on the eviction.  Now this person has filed a racial complaint against us.

Never mind there is no basis in fact.  Never mind it’s not the way I choose to live my life, anyway.  (See this post from May of 2007.)  Never mind that we evict people of all kinds because they all have one thing in common that is not included in the seven (and here’s where we get to the eighth that so many tenants seem to think deserves to be in there) is that they don’t pay their rent on time or sometimes at all!

It is not your right, Mr. and/or Mrs. and/or Ms. Tenant, to live in somebody’s house without paying for the services.  Go ahead and check with HUD or your attorney or whomever you choose.  The eighth class you want, the one that says you can pay if and when you want, it not protected.

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Filed under Property Management, Social Issues

August 26, 2013 · 10:01 am

Let’s Figure Out The Goal Before We Look At Houses

I know it’s exciting to think about being an income property owner.  By the time you are ready to pull the trigger you have been reading, searching the web, probably talked to a real estate agent or two and maybe even attended some type of investment property guru seminar.  But, let’s figure out the goal before we go look at houses.

As much as possible I like to meet people at my office before we go out and look at houses.  For twelve years I have worked with rental property buyers and I have a lot of experience in what to look for, what to avoid and how to figure what that property’s actual returns will look like. If we immediately just meet at a house or jump in the car how can I really help you unless I know what the end game is all about?

It is wise to be in a bit of a hurry.  The economy is changing and income property does not appear to be getting less expensive.  But please, I’m getting paid to help you figure this out before you buy and not after you already own something you wish you would have passed on.  I’m here to help.  Let me help.

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