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

October 5, 2007 · 8:45 am

House Alarms: Annoying or Helpful?

Am I the only one who finds house alarms more annoying than helpful? Seriously, I fear nothing more than opening the door for a client and not having been told that there is an active alarm.

This actually happened to me once. The sellers forgot there was going to be a showing and set their alarm. An honest mistake to be sure. But a gigantic waste of time for both myself and my buyer as we stumble around trying to figure out what to do.

Should we wait for the police? Whom do we call? Darn, the seller isn’t answering! Now what? Do we just leave? Sorry, it’s hard to see the features of a house when a horn is blaring in your ear.

I’m quite certain that alarms have saved people’s lives…somewhere. Usually they just go off on accident and annoy the neighbors whose baby was trying to sleep. At least that’s been my experience here in Johnson County, Kansas.

Next subject: Why does Tulsa (how crime ridden can it be?) have so many gated communities?

Shouldn’t This Go Without Saying?

So I had some time to kill over lunch and I needed to pick up a signed contract and earnest money from a client who works at the General Motors Assembly Plant in Kansas City, Kansas. (Fairfax) While there I decided to use the “facilities” and was amused with these signs on the wall for everyone to read.

Shouldn’t this just go without saying? Do I really have to put myself in the position of hearing this question coming from behind a closed stall door?: “Does anyone have any extra toilet paper…and a cheeseburger?”

SPECIAL NOTE TO ATHOL KAY: Disclaimer, really. I didn’t have a camera. This was taken with my Treo Palm in a low lit (fluorescent lighting) bathroom. So get off my back about the quality and focus!!!! 🙂

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October 4, 2007 · 7:15 am

Building Real Estate Wealth in a Challenging Market

Anyone that has talked to me about real estate investing knows that I really like John Schaub’s book . Mr. Schaub has a new book out concerning real estate investing titled Building Real Estate Wealth in a Challenging Market.

I’ve only just begun the book. (Chapter 4 at this point.) But once again I have to say that I am happy with what I’m reading. As reasonable adults with differing opinions I stress that I don’t endorse 100% of Mr. Schaub’s thoughts and ideas. But by in large, it’s right on track with my way of thinking.

From the Introduction…

For 35 years I have adapted my investment strategy to change. Recessions, tax law changes, and fluctuating interest rates have all taken their best swing at the housing market. Through it all an din spite of periodic predictions of a housing collapse, house prices have continued their steady climb.

Today the stage is set for a wave of distress selling and a new era of buying opportunities. Lenders have long forgotten the collapse of the real estate market in the 1980’s. New young lenders are making many high-risk loans. Some of today’s borrowers will become tomorrow’s distressed sellers. The next few years will bring the opportunity of a lifetime to buy quality properties at bargain prices.

It should be noted that the copyright on this book is 2007. Meaning he wrote those two paragraphs at some point in 2006 BEFORE the mortgage crisis. Nothing beats experience.

Building Real Estate Wealth in a Changing Market: Reap Large Profits from Bargain Purchases in Any Economy

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October 3, 2007 · 12:16 pm

When Good Mascots Go Bad

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October 3, 2007 · 7:39 am

Principles Stay The Same, Performance Moves Forward

Flying is a terrific way to get from Point A to Point B. And logic presumes that any airplane could do that for you. But is that true?

During the process of learning to fly an airplane I quickly learned that each and every airplane is different. Different checklists. Different performance levels. Different capacities, weights and balances.

The earliest pilots flew planes much like this Piper Cub still in use today. These planes would make them free from the Earth and allow them access to the skies in unprecedented fashion. They could travel farther, faster and more enjoyably than ever before.

Science moved forward in lock step with engineering. Compare the cockpit of the pictured Cub to the all glass cockpit of the Boeing 777.

Excuse me, Chris. But you are doing it again. May I remind you that this is a blog about real estate investing. We know you used to fly airplanes. Cool. We’re impressed. Whatever. Can you please get back on topic.

Alright. Sorry. But again I have to remind you that lessons in life are easily transferred. Today’s Boeing 777s fly on the exact same principles as yesterday’s Piper Cubs. But the 777s have learned from experience, improved on function and the result is superior performance.

Yes. Both planes can take you from Kansas City to Los Angeles. But one can get you there in 1/10th the time while allowing room for error and greater performance.

Today, many real estate investors are still using the real estate investing techniques of the Piper Cub. Twenty to twenty-five percent down. The one percent rule. Cash flow is king.

And while not discounting those, and many more, tried and true methods I want to point my finger upwards to show you the jet that is smoking you. It’s flying higher, faster, farther than you are and without the fuel stops that you have to make.

Consider other options to maximize your investments. Learn from the real estate investing principles that have been given to you and see what others are doing with them. Don’t know what I’m talking about? Then we need to talk.

Questions To Ask When Investing In Real Estate

Other than telling you to read this post by Jeff Brown I have nothing to say. Quit reading and hit the link. Do it now.

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October 1, 2007 · 10:02 am

Renting Your Home To Family

I got a phone call today from a person wanting to know about real estate investing. In fact, she and her husband will probably read this post and know I am talking about them. 🙂

Anyway, the subject of buying a home and letting their mother live in it came up. Is that an investment rental property?

Maybe yes. Maybe no. The IRS, as I understand it, wouldn’t look too kindly on that situation. It’s not “arms length.” So if you are going to do something like that you had better check with your CPA first. One thing you could do is to make sure, and document, that your family member pays fair market rents for that housing unit.

Of course, if the IRS disallows the rental property as an investment you might be able to count it as a second home. Any thoughts chimed in here by CPAs would be most appreciated.