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

March 2, 2009 · 11:23 am

Ramblings….

…our charting boards at our Keller Williams Realty office in Olathe had twice as many entries on the sales board as the listings board. Is this just a spring bounce or are we beginning to clear off some inventory? jayhawk

…the Kansas Jayhawks have just beaten Missouri to a pulp to avenge an earlier league loss to them. That puts the Jayhawks on the cusp of winning their fifth Big 12 title in a row…9 of the last 13. Amazing.

…right now I’m working with a lot more “regular” home buyers than I am with investors. It’s been a trend over the last six months. With investor financing comparatively more expensive and difficult to come by it just makes sense. Now, a couple of the regular home buyers are combining some sort of the Buy & Live real estate investing strategies I’ve advocated for years. So that’s smart thinking on their part.

vacancy_sign_lrg_clr …rents seem to be holding up in most of Kansas City. Where I see a definite softness is in the real low income properties and on the outskirts of Kansas City. Blue Springs, which I’ve loved for years, has had a movement to “soft” and I’m no longer thrilled about it. Though it’s still not a bad place to be.

…here in the Kansas City real estate market we are holding up pretty well. But advantage still goes to the buyer in much of the area.

…why do some real estate agents give up so much information about their clients?

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Filed under Kansas City, Kansas City Real Estate, Kansas City Sports, Misc. Real Estate

February 24, 2009 · 2:40 pm

First Time Home Buyers Credit

Well, the new first time home buyer’s tax incentive must be working. With four pending sales (three of them for first time home buyers) people are paying attention. A couple of things you should know;

A first time home buyer is someone described as a person who has not owned a home in the last three years.
In order to take advantage of the tax incentive you must own the home you will be buying for three years.
There are income restrictions. I believe it’s $75,000 for single buyers and $150,000 for married couples.
The max tax credit allowable is 10% of the purchase price up to an $8,000 ceiling.

So, if you KNOW you are going to buy your first home by the end of the year you can start by withholding less money for taxes and use that money you get in addition to your usual paycheck for savings/downpayment on your first home. Of course, if you end up not buying a house by December 31st you’ll have to pay all that money back!

Just sayin’….

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Filed under Financing Options

February 19, 2009 · 11:30 am

National Builders vs Our Local Guys

I was eating Mexican food the other day at a little restaurant on the west side of Olathe and turns out the 50% owner there has been a property developer and builder for many years around the Kansas City area, especially on the southern Kansas side. We naturally struck up a conversation about current market conditions and how I felt that the new home builders in Kansas City were really taking it on the chin because of the overbuilding that took place.

He turned the conversation a direction I had not thought about. With the suffering and closing of so many of our local builders here in Kansas City has the door been opened for national builders to come in?

Pulte was here and pulled out. I thought largely because they offered floor plans, construction methods and ways of doing business not yet accepted here in the KC area. When I lived in Tulsa I was always told Tulsa was the largest metro area without a national builder. (I never verified.) But is it Kansas City now?

I don’t know whether his prediction of national builders coming in to KC strong when the new inventory gets absorbed but I can believe that we are in a classic real estate cycle and that many of the local builders we all knew of will never be back. Some will weather this storm. But how many?

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Filed under Uncategorized

February 18, 2009 · 11:20 am

Real Estate Investing Real Estate Agent

boiling teapot Let’s be clear, this real estate investing blog is a resource of Chris Lengquist, a real estate agent with Keller Williams Realty, Diamond Partners, Inc. located in Olathe, Kansas. (A suburb of Kansas City.) Most people seem to understand that. But lately I’ve had literally dozens of emails wanting free counseling and advice while “using my cousin who has a license” type people.

Hey, this website has a wealth of knowledge on it concerning the owning and operation of Kansas City real estate investment property. It’s all here and free to be read. You don’t have to register. You don’t even have to use me as your real estate agent. But please, do not call or email me for quick advice if you have no intention of ever using my services. Show some respect. Hey, I know, have your “cousin” read this blog so he or she will know something about what they are talking about. 🙂

Not trying to be hateful here. If I was that way I wouldn’t do this blog. I put out this real estate investing blog for the following reasons;

It brings me a consistent flow of contacts and leads. (People read. People like. People choose me to represent them.)
It stops people from making mistakes. Lots of them. (I’ve had many a person call or email to say “thanks” for some piece of knowledge they found on here.)
Anything I can do to stop some people from investing is fabulous.
Anything I can to to get some people to invest is terrific.

BBQ Capital: A Kansas City Real Estate Investing Blog is my pride and joy. I actually run several sites and blogs. But this is my baby. I pour out my emotions on real estate investing, crooked agents, barbeque and Jayhawk basketball on here all the time. Consistent readers get to learn who I am before ever picking up the phone. I’m here and I’m transparent. But I won’t work for free. 😉

If you ever want to just discuss owning rental property here in the Kansas City area just pick up the phone or drop me an email. I love to talk about it. But not if you have no intentions of ever using my services.

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February 13, 2009 · 9:29 am

Don’t Forget Reserves For Your Rental Properties

I’ve had several conversations this week by phone, in person and by email with people wanting to jump into the real estate investing arena here in Kansas City. And all have come to me with very little thought about what kind of reserves they will need for their would-be rental property. That’s why I’m here.

I don’t blame these people for being ready to go. Heck, when you do the math, all of the math, real estate shines. But you simply cannot forget that real estate is VERY ILLIQUID (no way illiquid is a word!) and you’ll have to ride out any rough patches you encounter with your cash on hand.

For instance, what if you have a great tenant for 10 months and all of the sudden she loses her job. This is happening right now to one of my investors. He has given her a month to get back on her feet and now we are going to move forward. So he’s already lost one month and we’re gonna lose another for getting the papers filed and another for getting the eviction done and another for getting rent-ready and finding a tenant. That’s four months, five on the outside, of no income. Take a $795/mo rental property that is kicking off about $75/mo and you have expended $3,600 of reserves right away. Then if it takes $1,500 to get the place painted and ready to go for the next tenant, well… istock_000003228685xsmall1

You must have a healthy reserve chest going into any investment. Remember, investment money is not money you need to buy groceries. I would even say it’s not even all the money you need for a small, modest vacation each year. It’s money you want to and need to set aside for your future. Keep your reserve funds in a money market account or an interest bearing checking account. I have one that pays 5.25% a month. That’s not a rental property return rate. But it let’s me sleep at night. 🙂

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Filed under Real Estate Investing

February 10, 2009 · 5:35 pm

Real Estate Investing In Kansas City Is Green-Lighted Again!

open for business real estate investing Finally, Fannie Mae has decided that real estate investors (really, really qualified real estate investors) are not the enemy! The loan limit of 4 has once again been taken back up to 10.

I could pontificate on this but after reading Jeff Brown’s post on the subject I really don’t see the point. Just jump over there and read it.

Oh, and sorry for the lack of posts this past week. I’ve been working with three different home buyers. Now, I know many in the news media want you to believe housing is falling through the floor and we’re all gonna die. But I just don’t find that to be the case.

Now, don’t party too hearty you real estate investors. Get some sleep. We can talk tomorrow. 🙂

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Filed under Financing Options

February 4, 2009 · 1:23 pm

I Sit Here Saddened At What I Read

Wells Fargo seems to be the latest in a long line of companies that just don’t seem to understand what is going on. Oh, they understand how to ask for and receive $25,000,000,000 of taxpayer money. They understand how NOT TO RESPOND TO AN OFFER WE MADE 5 DAYS AGO with any kind of counter or semblance of an answer. They understand how to reward employees for only losing $2,300,000,000 last quarter.

What they don’t seem to understand is the backlash. I’ve long been a proponent of keeping government out of business. But how can I defend my stance, if only to myself, when this kind of arrogance goes on with financial services company after financial services company? At least GM had the wisdom to pull their heads out of their nether regions and not pay $3,000,000 of money on a 30 second commercial and to quit with the private jet trips to congress to ask for more money.

I’ve intentionally used all those zeros to make you think. What’s the population of America? 300 million? That means Wells Fargo was charging my family of 6 $499.98 to help them fund their party. Frankly, I don’t want to pay it. I have my own ways to spend my $499.98. Same goes for AIG, GM, and everyone else. Keep your hands off my check book! This is money my kids may never see back. They are already going to have to pay for the mismanagement of the retirement systems/attitudes of our nation.

Hey employees of this and other bailout companies, your reward for losing $2+ billion is that you get to keep your jobs in an effort to make that money back. Not go to Vegas and slap each other on the back.

How did this kind of arrogance work out for pre-revolutionary France? (Yes, yes. I know that many say Marie A never actually said the words “let them eat cake.” But how did it work out for her anyway?)

I feel better now.