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

July 25, 2008 · 8:23 am

Kansas Jayhawk Basketball Schedule 2008-2009

Many of you know my affinity for Jayhawk Basketball. The new schedule is out for the 2008-2009 season.

When you consider we only return 4 scholarship players and that only one of them (Collins) had real significant playing time this upcoming year could prove to be very challenging. Though Aldrich did prove his upside in the tourney against Hansbrough. He’ll have to step up big.

Either way, I’ll enjoy!

Oh. For you new readers who think I only like a winner, I’m going to the Kansas City Royals game tonight. Hopefully they still sell beer.

First Time Home Buyers In Kansas City

Attention first time home buyers in Kansas City. And yes, that includes Overland Park, Olathe and a dozen other cities. The current mortgage crisis will now benefit you!

The House has passed a bill that will likely become law within the week. It’s a bill that no one wants to stand in the way of so it’s pretty much a done deal. How will this help the first time home buyer in the Kansas City area? Well, if you;

Are a first time home buyer
Have purchased or will purchase a home between April 9, 2008 and July 1, 2009
Have individual income of less than $75,000 or as a couple earn less than $150,000

If you meet those 3 standards you are eligible for a $7,500 tax credit.

Now, you will be expected to pay that back over the course of the next 15 years interest free. So it’s not free money. But it’s discounted money. If inflation ends up being 5% this year, well…hopefully you get the picture. I’ll work out the math for you a little later today but you will be saving hundreds and possible a couple thousand in interest over the course of that 15 years.

(Further details will be announced as I dig deeper into this Housing Rescue Bill.)

So if you are a first time home buyer and looking to purchase a home in the Kansas City area you need to contact me today. Regardless of where you are looking be it Olathe, Overland Park, Blue Springs, Lee’s Summit, Shawnee or a host of other suburban cities or Kansas City. If I am not knowledgeable about the area of town you are looking I’ll hook you up with someone who is.

With a FHA loan, 3% of the purchase price and good credit this makes it easier and more economically feasible to be a first time home buyer than ever before!

Financing Your Real Estate Investment Property In Kansas City

Financing your real estate investments is getting more and more interesting here in the Kansas City area and throughout much of the country. Much more interesting. Wachovia lending just shut down. IndyMac Bank is gone. And the bloodletting continues.

The good news? You can still get financed. Countrywide Home Loans and Wells Fargo do not appear to be going anywhere. And I still say the single best source for income propeprty loans is your local bank. You know, the one that only has 2-10 branches. Based in your home town. That sort of thing.

Because with Fannie Mae and Freddie Mac’s new 4 limit you might occasionally need a loan through portfolio. (In case you didn’t know, Fannie and Freddie say you can only have 4 real estate properties with outstanding mortgages now. This is down from 10. A significant difference that really hurts the part-time real estate investor…the bulk of my clients.)

Investment property loans are still available. But you’ll need 10% down as a minimum in today’s environment for single family homes and duplexes. Fourplexes and above will require a minimum of 20% down and maybe as much as 25%. If you know of a lender with loan product for fourplexes still available at 10%, let me know.

As a professional real estate agent working with real estate investors each and every day (save Sundays 🙂 ) I keep in touch with and up to date with several quality lenders in and around Kansas City. Let me know if I can recommend a lender to you today. And if your pre-qualification letter is greater than 60 days old you’ll want to get it re-run through. Trust me.

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July 21, 2008 · 6:44 am

Cash Flow Hunting: It’s Officially A Trend

My phone rings quite a bit. That’s a good thing. And Cash Flow is the number one topic for most real estate investors calling me lately. I’ve written before how Cash Flow Before Taxes is one of the Four Benefits of Real Estate Investing. I’ve also written about why you may not wish to worry too much about Cash on Cash returns if you are looking to really get your money working for you.

I am a real estate investment consultant. I advise. It’s what I do. But I am also a real estate agent. I sell homes. It’s how I’m paid. So unless people are too far outside the scope of my core beliefs when it comes to real estate investing I help them meet their goals…after at least having a say in what I think. But make no mistake, if cash flow is what you are after I will help you find the best rental properties for that purpose that I can.

Now I do draw a line. I don’t work with rental properties priced below $30,000. I just won’t as a general rule. Because these houses are typically in neighborhoods where I don’t see any kind of long term growth. (I have sold properties under $30K. They just weren’t in neighborhoods I don’t like.) I don’t advise working in certain neighborhoods where retention of tenants is low and where there is a history of roller coaster appreciation/depreciation. How can that be to your advantage unless you think you can time the market? (That hasn’t worked out too well with many, many people.)

I still believe you want to look at an investment property in it’s entirety.

What are the long term capital growth projections with all 4 Benefits calculated?
What does the cash flow look like when all expenses are calculated/projected?
Is this neighborhood on the upswing or is it slipping?
Nearby jobs, development and schools matter.

If you are looking at Cash Flow as your major driver for your next investment property go ahead and give me a call today at 913.322.7515. I’ve identified a couple of good neighborhoods that stand up to the four bullet points listed.

Radon Gas In Your Kansas City Rental Property: Upcoming Workshop

Radon gas in Kansas City is a problem. But how much of a problem? What are the real health risks versus myth? What are your liabilities concerning radon gas and your Kansas City rental property?

Radon gas is tricky. It can also be scary and highly misunderstood. Real estate agents are aware of it but seldom do we really understand what it can do to you over the long term. All we really know is that it can throw a wrench into inspections at the last minute, which nobody likes.

A real estate agent down in Charlotte, North Carolina wrote on Radon Gas last November. And here is a helpful website from the Kansas State Engineering Extension breaking down radon gas in a more text-book sort of way. I’ll let you go off and read those now. But when you come back we’ll discuss a free workshop being sponsored by KCRAR (Kansas City Regional Association of Realtors) for investment property owners, real estate agents and property managers that you may wish to attend. Look below the photo!!! And by the way, my house recently came in at 3.3. You’ll have to come to the workshop or read the second website to know if that’s good or bad. 🙂

*** *** ***

Radon & Rental Housing Workshop
Friday August 8, 2008 9:00 am – Noon

Targeted to rental housing owners, managers, inspectors, housing agencies, real estate agents and others in the rental housing industry, this seminar will provide information and resources necessary to deal with radon in their holdings in a cost-effective and efficient manner.

Radon basics, testing processes, reduction methods, risks and liability issues will be covered in this 3-hour seminar, with handouts and a free radon test provided for the first 25 people through the door.

Come hear from the experts at Kansas State University’s engineering extension office. This is not the same Continuing Education class they regularly teach at KCRAR, because this one is especially for landlords and those who work with rental properties.

THIS IS NOT FOR CE!Questions? Contact Jan Pringle, KCRAR Education Director, (913) 498-1100, or janp@kcrar.com.

ATTENTION: Jan Pringle of KCRAR just sent me this so be sure to register! I just did.

Wow! That’s great. What a nice website, too!

Just one thing, would you please put in your article that KCRAR members can register online there at www.KCRAR.com, but NON-KCRAR MEMBERS must email me to reserve a seat??? We have limited seating and I have to keep ahead count.

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Filed under Investment Property, Legal Issues, Misc. Real Estate

July 15, 2008 · 7:19 pm

Pickens Plan: A Step In The Right Direction

I am not a tree-hugger. But I recognize our impact on the Earth. I am not an isolationist. But I get tired of sending United States money overseas to be turned against us. I am not a homer. But I would like to see more jobs stay in rural America. Over my lifetime I have witnessed first hand medium sized to small towns in Kansas and Missouri whither. Some are almost dead.

T. Boone Pickens has a plan. He’s a billionaire oilman from Oklahoma. There’s no doubt in my mind he has an angle here that will allow him to make millions more. (Too bad. Because he gives too much money to Oklahoma State University. 🙂 )

Take the time to read the plan. Let me know your thoughts. Because in my mind the greatest sin of omission committed by Bush, Clinton and now Bush is having no plan at all.

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July 15, 2008 · 8:03 am

Olathe, Overland Park & Shawnee, Kansas Rank High In CNN/Money’s Best Places To Live 2008

I’ve written here in the past about how high Overland Park and Olathe, Kansas rank in CNN/Money’s Best Places To Live 2007 and before. Now the 2008 Best Places To Liveis out and Olathe, Overland Park and Shawnee, Kansas are all on the list along with Lee’s Summit, Missouri.

# 9 Overland Park, Kansas
#11 Olathe, Kansas
#39 Shawnee, Kansas
#79 Lee’s Summit, Missouri

As a professional real estate agent in the Kansas Cityarea I have helped people buy homes and investment properties in each of these cities. I can tell you without a doubt that I can recommend each. I live in Olathe. I grew up in Overland Park. And Shawnee is just a stone’s throw away.

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Filed under City Comparisons, Kansas City Real Estate, Olathe