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

May 9, 2008 · 12:32 pm

Freddie Mac Just Made Getting Investment Loans Harder

I just received this email from a very reliable lender that I like to work with (Tom Brassfield of Security Savings Bank).

Chris, the following is an announcement about Freddie changing maximum number of mortgages from 10 to 4.

Ah, folks, this is not good news for many of you. Why? Because it just made getting a conforming loan nearly impossible if you already own four rental properties here in Kansas City and elsewhere. Me no like.

And where Freddie goes Fannie is sure to follow. This seems to follow up on the trend of punishing proven real estate investors for the problems real estate speculators and careless mortgage companies made. It’s like when the NCAA punishes a current team and coaches for the transgressions of the previous coach and team. The statement is made…just to the wrong people.

Tom, also mention that PMI is getting harder and harder to get for the real estate investor. Oy.

4 Comments

Filed under Misc. Real Estate, Real Estate Investing

May 8, 2008 · 10:54 am

Quick Glimpse of Chris Lengquist

This may seem completely ego driven but I thought I would share a few of the things in my life that I truly enjoy;

My wife of darn near 22 years. Thank you for your patience.
My mountainn bike. Think how big I’d be without it!
Kansas Jayhawk basketball.
Kansas City Royals baseball. (I’m a sadist.)
My MINI Cooper.
Our four kids. May God bless each of them the way he has me.

1 Comment

Filed under Uncategorized

May 7, 2008 · 9:01 am

You Can Be Defrauded: It’s Easy

Every one of us likes to think we are so smart and so wary that we cannot be defrauded. Bull. If I learned anything as a PI all those years in the Washington, DC area it is that anyone, and I mean anyone can be taken advantage of.

When we think of fraud in real estate we think of lying on loan apps, lying about disclosures, lying about this & that. But here is the deal. There are people out there that have nothing better to do but sit around all day and night trying to figure out how to take advantage of you. You really don’t stand a chance. Trust me on this.

I’ve seen too many people of all shapes, sizes, economic & education backgrounds be taken advantage of in ways that would make your hair curl. Currently I am helping a couple of people to work out of decisions that seemed like no-brainers at the time but with a few months behind them cannot believe how easily they were misled. Before you criticize just be glad it wasn’t you. It could have been.

Take a few minutes and do a Google search for Brent Barber, our Kansas City real estate fraud guy. (Just click his name.) Read especially, if you have the time, the article in The Pitch that lays out the whole scheme in detail. He is actually quite proud of his industriousness in taking your properties.

I just wonder what he could have accomplished as an honest member of our society. Now he’s in prison for 19 years. And we are getting messed over again because we have to pay for him to live for free. Jeez.

1 Comment

Filed under Investment Property, Kansas City, Legal Issues, Misc. Real Estate, Real Estate Investing, Worth Reading

May 6, 2008 · 12:19 pm

Think KC

Chris Gutierrez, President of KC SmartPort, Inc came to speak to my breakfast club this morning and I was really impressed with him, his presentation and what Think KC is trying to accomplish here in the Heartland.

In case you are not familiar with Think KC, they are the red dots all over town with KC in the middle. Promoting the Greater Kansas City area for new business (thus new jobs, new housing, new commerce, new tax base, etc.) that comes from outside our metropolitan area is their job. They have been actively involved in this whole Bombardier project that is down to Kansas City and Montreal. If that comes through it could bring an estimated 2,100 jobs and have an unprecedented impact on the Kansas City area.

Anyway, getting back on track, I think that Think KC should be on every Kansas Citians radar. They really promote the whole area and not just the Kansas City area or the Overland Park area or the Blue Springs area. Chris even said that when they show a map of the KC area to out of town investors and would be comers that they take off all the lines that define boundaries. I like that.

Other items Chris mentioned include;

Kansas City is #1 in railroad tonnage.
Kansas City is #3 in trucking.
Animal health is really on the grow throughout the entire corridor between Manhattan, KS and Columbia, MO.
Data and call centers are coming to Kansas City because of our central location/time zone, cheaper energy and labor costs and costs of living. (I know Olathe has really benefited from that!)

Chris found it difficult to contain his enthusiasm for the Kansas City area and stated that with all that is goin on, including the Power & Light District, they are getting more inquiries than ever.

Kansas City needs more like Chris. Proud of his community and ready to tell anyone who will listen about the advantages we have here. Think KC. You will be glad you did.

Real Estate Investing Mistakes I See In Kansas City

Since my expertise is working with real estate investing clients here in Kansas City, I see a lot of mistakes that could have been avoided. And of course, there are also the complete surprises. Here are some top mistakes I see over and over again concerning real estate investing;

Not having an exit strategy before you buy. If you don’t know what the end result should be then how do you know from where to begin?
Believing the expenses provided to you from the Seller’s Agent. You better know what expenses should be expected. Chances are the selling agent actually has no idea because he/she has never even owned a rental property.
Mistaking a speculation property for an investment property. Oh yes, Virginia, there is a difference.
Neglecting both your tenants and your rental properties. Listen, sooner or later you pay the piper. So why not just keep everything on an even keel the whole way through?
Listening to the wrong people. This should be obvious.
Being impatient. Seriously. Just leave you money in a money-market account until you find the right property that fits your criteria.

I could go on and on. I’d love for the experience real estate investors that read this Kansas City Real Estate Investing blog to add mistakes they’ve seen or committed. C’mon folks. Be honest. We’ve all done some of these.

2 Comments

Filed under Uncategorized

May 1, 2008 · 3:55 pm

Kansas City Multi-Family Housing Sales

Be forewarned:This is a blatant advertisement to promote using Chris Lengquist to help you buy or sell Kansas City Multi-Family Housing.

Why:You get the best of both worlds. A residential real estate agent that works with residential investment property every day and also works with commercial multi-family housing. Whether working for the buyer or the seller Chris Lengquist uses time-tested investment property valuations to help you determine at what price you should sell your Kansas City area multi-family housing units or at what price you should buy.

To determine whether or not you should be looking to move your apartment now or to hang on through these rough credit times you will need a thorough evaluation of your property’s income and expenses along with an interpretation of where it’s relative neighborhood is heading.

Can I stop talking in the 3rd person, yet? Good. Let me just say that it is my desire to help you meet your economic goals. Whether you have one investment property in Kansas City or fifty. Whether you own a small single family home in Kansas City’s Waldo neighborhood or a 85 unit apartment building (commercial multi-family housing) out in Overland Park, Kansas.

I look forward to helping you with all of your Kansas City area multi-family housing needs.

2 Comments

Filed under Investment Property, Kansas City Real Estate

May 1, 2008 · 9:44 am

Capital Growth

Cash Flow Before Taxes
+
Principal Reduction
+
Tax Benefits (depreciation/interest)
+
Appreciation
/ (divided by)
Capital Invested (downpayment + closing costs)
=
Capital Growth

Or Return on Investment, if you will. Now to me, I like to make sure my returns are satisfactory and that the rental property will be self-sustaining without adding in the Apprecaition.