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

May 28, 2008 · 3:29 pm

Chris Lengquist of Keller Williams Realty, Olathe, Kansas – My MeMe

Geno over at Chicago’s Home Weblog for real estate decided to irritate me by tagging me for a MeMe. MeMe’s, for those who don’t yet know, are a bloggers expression of friendship saying “I want to know more about you.” I’ve done these before but I will play along. So if this seems a little self-absorbed, remember you have Geno to thank! Alison Krauss

1. Who is your favorite musical artist? This is a tough one as I don’t really play favorites anymore. Who has the time? I will say that Alison Krauss, her voice, melts my heart. The Foo Fighters when I’m feeling energetic. Eminem when I need a laugh. I like music. All kinds.

2. Who is your favorite artist? I’ve got to go in the direction of photography. And each and every photographer that has ever graced the pages of National Geographic deserves a nod here.

3. Who is your favorite blogger? For knowledge I like Bawldguy. For great writing I like Geno. For trashy entertainment with a communist holier-than-thou slant I’ll visit Tony’s Kansas City.

4. If you could meet anyone dead or alive, who would it be and why? Thomas Jefferson. Think about the influence this man still has on modern life. I would love to know where his brilliance came from, what his thought processes were and how he reconciled “All men are created equal” with owning slaves.

5. What did you want to be when you were growing up? Center fielder for the Kansas City Royals. Or an architect.

6. What is the most entertaining piece of trivia you know? Trivia is trivial, right? Oh, okay. Did you know the Bumper Sticker was invented in Lenexa, KS?

7. If you could live at any point in history what would it be and why? I really don’t have a problem with where I’m at. Think about the changes the X Generation has seen/will see. It’s amazing.

8. What is the most interesting job you have ever held? People love to hear that I was once an investigator in the Washington, DC area. And I do have exciting stories to tell. But over all, the job is fairly tedious. Boring, even. I never carried a gun. I didn’t own a Ferrari. And I didn’t sleep with women for information. (That’s the part that disappoints me the most. 🙂 )

Now I’m supposed to “tag” other bloggers. But I’ll just say “you’re it” and you let me know if you take the bait!

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May 28, 2008 · 7:51 am

Positive Appreciation In Kansas And Missouri

Kansas City real estate

Sorry California. Too bad, Florida. Nevada, close your eyes. Last Thursday the government’s index for housing stated that Kansas had appreciation in the first quarter of 2008 was 2.7%. Missouri was 1.7%. And the Kansas City area housing prices were up “a little less than 1 percent in the first quarter.” (This is as compared to the first quarter of 2007.)

I’ve said it here over and over and over again. Some people are still not getting the message. Kansas City real estate investment property is a safe haven. Not full proof. Not perfect. In great years we might get 7%-10% growth. But in bad years we may only decline slightly or still manage to pull out very modest gains.

Think about that. Forty-three states lost value. Kansas and Missouri housing chose not to participate. What’s the old saying: “Slow and steady wins the race.”

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Filed under Kansas City, Kansas City Real Estate, Real Estate Investing

May 26, 2008 · 8:59 pm

How To Start Investing In Real Estate – Kansas City Style

All throughout the country people want to know how to start investing in real estate. And while I cannot say for sure the following advice will work in every city in America I can tell you for sure that this works great here in Kansas City.

I’m Twenty-Something And Want To Start Real Estate Investing

Whoa there, partner. Remember. You have your whole life ahead of you. I know that’s tough to believe. But ask anyone over forty. They’ll tell you. My best advice, buy your first house with an eye on it being an investment property a year from now. Then in a year or two or somewhere in between you buy another house with the same intentions. You get the benefit of owner-occupant financing (usually cheaper than investor financing) and you can do this forever. Heck you are young and restless and you know you’re gonna move several times. Why not just be smart about it.

I’m Thirty-Something, Trying To Adjust To These Kids But Still Have An Eye On My Future

Ah, the thirties. Many an investor finds this the most difficult time of all to start buying rental property. There may be a new spouse and/or kids. The job is putting the squeeze on and you’re trying to move up to a bigger house because you need more space. Not to mention the raises are starting to slow down a little because the talent pool coming in behind you seems to be really talented. Where’s the money gonna come from? I can’t answer that. But I know it’s gotta be found somewhere. 🙂 Start small. You still have time on your side. Buy a smaller duplex or a small single family home to rent out over in the Waldo area. But get started you must.

I’m Forty-Something And I Have No Retirement Planned. HELP!

So you weren’t able to get started in your twenties or thirties? Well, neither was I. Neither were most of my real estate investors. But if you remember the ’80’s you now know what mortality is and you’ve lost all allusions that your job is gonna take care of you. The good news is your debts are probably falling (the thirties were a nightmare of debt for me and many people I know/knew), the student loans are all gone and you’ve started with your company’s 401K. You really need to divert some of that savings in to a very liquid money market account. Get as much cash together as you can and call me when you get to a minimum of $15,000, preferably $20,000+. Then we can really get to work. You’ll be surprised at how fast your investments will catch you up so that you can have a Retirement Worth Having.

Fifty/Sixty-Something And Retirement Is Staring Me In The Face!I can’t work miracles here. But depending on your situation I can help you to soften the landing. You are going to need some liquid assets to throw at some carefully chosen properties. Our first goal is to protect those assets. Our second is to grow them…in a hurry. Specialized planning and understanding are a must here for you. This isn’t a one paragraph answer and will vary wildly from client to client depending on many, many things. You’ll have to call me to discuss further.

Tomorrow I think I’ll show you how owning investment properties will help to alleviate your retirement concerns. I’ve written about how investment property grows and grows before. But we all could use the review.

How To Rent That Vacant Rental Property

For Rent Kansas City

Working as an investment real estate adviser here in Kansas City I get asked all the time on how to rent a vacant rental property. And while there is no one way that works all the time you really just have to keep a close eye on your micro-market(s) and know and adjust to what is going on. For instance, just this morning a real estate investor couple I work with just closed on a super buy of a duplex in Blue Springs. Now they are worried about getting it rented quickly as there are a couple of other vacancies in the same neighborhood.

But before you worry too much for them just know that the vacant rental property they purchased over in Blue Springs went for $188,500 with about $4,000 in carpet cleaning and paint and misc repairs needed. Comps in the neighborhood? How about $215,000 to $220,000!

Getting back on track here are some tactics, sometimes guerrilla, that you may wish to consider when trying to rent your vacant rental property.

For Rent sign in the front yard with number you will answer most of the time.
Pointer For Rent signs that lead to your rental property from at least one “busy” intersection.”
Place add on craigslist. It’s free.
Make up a flier pointing out benefits and put in a “Info” tube on your For Rent sign.
Post a few fliers up at local grocery stores, hardware stores, etc.
“Bandit” signs in other rental neighborhoods or at busy intersections around town.
Create a blogsite with your rental properties listed on there.
Publish an add in LOCAL newspaper. For instance, I wouldn’t waste my money on the Kansas City Star. But I would consider the Blue Springs Examiner, or something like that.
Mailing to other rental neighborhoods advertising your property.

Get Creative With Promotions – Nobody wants to give money away. But every month a rental property sits vacant you lose money. So consider some of the following if you are in a sluggish environment.

Sign 13 month lease and get 6th month free!
Pay rent by 1st of every month and receive a $500 rebate on 12th month’s rent.
Half off security deposit.
Offer to pay for the rental moving truck and give a gift certificate for pizza on move-in.
Offer to pay any local leasing agents one month’s rent to get a qualified tenant.

Other tips for when the income property is empty.

Buy a secure key-box for the units to keep a spare key in. That way when you send over a contractor you don’t necessarily have to be there.
Ask a neighbor to keep an eye out and let you know if anything is amiss. (This has helped me more times than you could possibly know.)
Make sure the place is spotless so that when prospective tenants see the rental property they will want it!

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May 23, 2008 · 9:21 am

Real Estate, Beer & Shrimp

Memorial Day weekend brings a lot of activity for the Lengquist house. Just because it’s the holidays doesn’t mean I get to take today or much of Saturday off. But Sunday, ah, Sunday. Church will be followed by going over to my best friend’s house.

Doug (my bfl) has a heated pool (that the kids love) and makes the best darned grilled (not barbeque’d, Jeff) shrimp I’ve ever tasted. And of course, there will be adult beverages to help kick off the summer.

But I don’t want to forget those for which Memorial Day was set aside. Veterans, yes. But also those that stayed behind and kept the country going. The Greatest Generation. Our Founding Fathers. For each of us I’m sure there is someone worthy of you taking a few minutes and giving thanks.

I’m of the X Generation. We’ve had a fairly “easy” life. Our standard of living is a little lower than previous generations. But no Great Depression. No WWI or WWII. No hyper-inflation. Widespread disease is virtually non-exsistent for Americans.

So to those that made my lifetime as comfortable as it is, I say “Thank you.”

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May 22, 2008 · 8:07 am

Rents, Security Deposits And Your Purchase Of An Investment Property

Negotiating closing costs on investment property Are you negotiating on an investment property with tenants right now? Don’t forget to negotiate the rents and the security deposits. Those aren’t givens.

And secondarily, they can foul up a closing at the last minute if you aren’t careful. They can have an effect on your closing costs if you are working with an inexperienced underwriter or with a loan product that is very strict when it comes to investment property closing costs. That’s it.

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May 21, 2008 · 8:43 am

Phoenix Real Estate Getaway

Real estate investing and personal points from my time in Phoenix…

…I had dinner with agents from all over the country on Sunday evening. It’s always fun to speak to the ones from the Los Angeles area of California when we discuss real estate investments. They are just simply amazed at what we can do here compared to what they are used to.

…Dry heat. Wet heat. Listen Phoenix, 111° is 111°. I don’t care what you say or how you say it. 🙂

…The Phoenix area is pretty close to exactly twice the size of Kansas City. And yet we have ± 13,000 agents. They have ± 45,000. We run about 23,000 active listings. Someone said they are at about 74,000! (See comment by Jay Thompson for clarification.) I’m just glad I’m not an agent there.

…It’s nice to get away and “mastermind”. It’s even nicer to get home and see my wife and kids. (Personal note: Yesterday was the anniversary of my wife putting up with me for 22 years. Not bad for a 43 yr old.)

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