Love For Kansas

Friday, October 19, 2012

New Kansas City Corporate Housing video.

New video for Kansas City Corporate Housing company. Pretty good job on the video considering it was only $60 to make.

Live link: https://www.youtube.com/watch?v=zEBMKmoeP-I

Wednesday, October 3, 2012

Kansas City Rentals Address, Compant Information, and Business Location

OK, here are all of our review locations! Go review now! Haha.

Kansas City Rentals
(816) 298-065-8416
Admiral Blvd
Kansas City, MO 64106

Trade a Paper Clip for a House!

So does anyone out there think that they would be able to trade a paper clip for a house? Now that I think about it, I don’t think that it would be that hard to do in many areas of the country (I did buy a house for $1 recently), so let me rephrase…a habitable house in a decent area? I just picked up on the adventures of Kyle MacDonald who is on a quest to complete this task. He is hasn’t done it yet, but he has traded his way up from a paper clip to a free year of rent in Phoenix. Check him out at One Red Paperclip.

It really goes to show you what can be accomplished if you can dream it up and work like crazy.

ProHabber.com Wins “Best of the Web”

I was notified today that Prohabber.com won “Best of the Personal Finance Web” in the Real Estate Investing category from Moneysmartz.com Personal Finance Directory. I would like to thank Moneysmartz for their support and encouragement and I would encourage everyone to check out their excellent resource on personal finance.

The Moneysmartz Personal Finance Directory is your guide to the best personal finance websites, blogs, and podcasts covering financial topics important to your financial decision-making, including investing, retirement, money management, budgeting, debt, credit, banking, financial planning, insurance, mortgages, loans, real estate, 401k, IRAs, and estate planning. Our goal is to help you quickly find the most reliable and relevant sources of personal finance information, services, and products so you can make better financial decisions.

The Price of Experience

Every day I drive past a local non-profit organization called Mathew 25 Ministries while on my way to work. They usually have a message on their road sign that is either inspirational or an update of their charitable work. For the last couple of weeks, there has been a quote up there that has really hit home for me:

Experience is what we get when we don’t get what we want.

Boy, this is the truth. Learning the real estate game is not an easy task and no matter how much education you get, the real world will teach you some lessons. Just consider this the price you pay for experience.

If you have some experience to share, speak up now and leave a comment. Lets try to save someone else from making the same mistake.

Matthew 25: Ministries is an international humanitarian relief organization helping the poorest of the poor locally, regionally, nationally and internationally regardless of race, creed or political persuasion. By rescuing and reusing products from major corporations, manufacturers and individuals, Matthew 25: Ministries provides basic necessities, skill development and disaster relief across the US and worldwide.

Selling: How to Read the Market Response

So what is the property going to be worth after you buy it and do whatever it is that you are going to do to it? Investors frequently call this the After Repaired Value (ARV). The entire process of figuring out how much to offer on a property hinges on the ARV. I have always tried to stay conservative on this estimate before I buy a property to make sure that I don’t get caught with an overpriced house when I am done. I would much rather estimate the ARV low when I am looking to buy and then try to get the most possible for it when I sell. Once your property is on the market at a certain price, it is time to read the markets response to your offering. There is a fairly simple way to decipher the markets response based on how many people want to see your property and how many offers you get.

If you put the property up and immediately get several showings, you know that your offering price is right on the mark or even low for what the market expects. The buyers know what they want and how much they are willing to pay in any given area. Before they see the house, all they know about it is whatever data is provided to them with some pictures and a price. Once they are presented with this data they have the choice to go see the house as a potential candidate for their purchase or they pass on it. If you have a property that meets their criteria for what they expect on price and style, they will want to see it. If they don’t feel that the property is right for them (i.e. priced too high or just not what they are looking for) then they will not take the time to set a showing appointment.

Once you get the buyers into the house, you can gauge their reaction to the condition and amenities of the property by how many offers you get. Of course, you should not expect to get an offer from every person that comes into the house because buyers are usually very picky and they are looking for something in particular. That being said, if you don’t get any offers even after a bunch of showings, then the market is telling you something. The buyer that is willing to pay for a property in your price range has expectations of condition and amenities. If your house meets those criteria and is within their price expectations, you will get offers. If the property falls short by just a little, you may find that a few buyers will offer, but at a discounted price. If the property is just all wrong, they won’t even bother with the property.

Paying attention to the market response can help you make adjustments to the property price and/or condition and amenities to get the property sold as quickly as possible.

Networking is Key to Keeping Your Business Alive

The old saying goes “It is not what you know, but who you know.” I have been working hard at networking in the real estate investing world for awhile now. As part of my marketing plan for buying houses, I have an entire component of increasing my network. Here are a few things that I have done to keep my network growing:

I have asked to speak at the local REIA meetings to share what I know and to make it easier to meet other people that see me speak. It is amazing how many people want to talk with you after you give a speech. I could never have that much credibility with total strangers if I just walked into a room.

I have signed up to be a coach in the local REIA coaching program. I have learned more from the “players” on my coaching team as they have learned from me. Each of them brings life experience to our meetings that I have been able to benefit from.

I have started this website to speak publicly about my career. From just this website I have met all kinds of investors from all over the country.

I have remained active at the BiggerPockets forums. If you haven’t been to this site yet, you have to check it out. There is an amazing amount of free information available for anyone to read and the forums are a great place to ask questions. You will find me there with the screen name “ProHabber”.

I have recently joined the Real Estate Investor Nexus at http://www.reinexus.com. This site is new but it seems to be picking up members very quickly. It has taken me a little while to get comfortable using this site, but it should turn into a great networking tool.

Networking is the best way to learn new tricks, find opportunities and grow your confidence. When you have a network of like-minded individuals you can get answers quickly and reach your goals faster. Plus, the added benefit of a large network is that those people know other people and word of mouth can really benefit you and your business. It doesn’t matter how you find other people interested in your business, but it is important that you do. There is so much out there that you don’t even know about and the larger your network becomes, the more you will be exposed to opportunity.

What is Your Bread and Butter?

Focus is key in this business. The more defined you can be with your market, the better you can focus on becoming an absolute expert in that niche. Let’s look at a few of the niches that exist in the real estate investing world:

Location Niche - Do you concentrate on a certain area?
Entrance Strategy Niche - What particular problem do you focus on solving (e.g. house needs work, foreclosure, burnt out landlord, etc.)?
Exit Strategy Niche - What is your preferred way to cash-in on the property (e.g. cash sale, rental, lease/option, etc.)?
Market Niche - What market do you focus on (e.g. first-time-homebuyer, luxury home, Section 8 rentals, etc.)
Marketing Niche - How do you find your deals?

I love single family homes for the first-time-homebuyer market. I prefer to purchase them in disrepair at a large discount and then fix them up and sell them to a homebuyer. I market directly to the potential sellers and ask them to call me if they want to sell. I also market directly to potential buyers and tell them that they may be able to buy instead of rent.

Focusing only on your market allows you to keep your mind clear and to master your business. Once you have completely mastered your niche, your business will run on auto-pilot and you can then find another niche to conquer in order to grow to the next level. Be sure to not get sucked into the “I can do it all” mentality. It is important to be able to take advantage of a good deal when one comes along, but you need to make sure that your day-in and day-out activities are focused on mastering a single niche. Otherwise you risk getting spread too thin to effectively operate and grow your business.

So, what’s your bread and butter?

Wednesday, September 26, 2012

The Land of the Chotchkes

I can proudly say that I have sold every listing I ever took. Yet, on two occasions, even though I sold the property, I feel I failed the clients. The first time was on my very first listing, 16 years ago. It still haunts me to this day. . .

I was green and eager to please, like most new agents. It was an expired listing and I was their fourth agent. I worked oh, so, very, hard and I got an offer on the property, but it took over six weeks. The longest it ever took me to bring in an offer.

I knew something was wrong fairly early on. I could just feel it. On my third visit to the home I noticed with my newly forming Realtor eyes that the bathroom counters were tiled, very nicely tiled. I hadn’t noticed them before because they were covered in little decorative bottles: hundreds and hundreds of little bottles. I looked around me and realized there were figurines – everywhere. There were glass and porcelain pieces on shelves and countertops throughout the house. I felt as though the home had been invaded by trinkets. I was surrounded by tiny collectibles. I was standing in the land of the chotchkes.

I may have been looking at the home, but buyers couldn’t see past the owner’s “little pretties”. I spoke to the owners about these little treasures, but she insisted upon leaving them out. She couldn’t live in a home without her “little pretties”. I should have been more forceful. Being so new to the business I was too eager to please. Those little pretties cost her about ten percent of the home’s value. It sold for about 90 percent of what it was worth.

Buyers discount mysteries. Anything they can’t see, whether it’s because the shades are drawn, the lights are turned off, a door is locked, or it’s covered in little trinkets, becomes a mystery. Mysteries will cost the owner money. Please, please sellers, I cannot emphasize this enough: destroy all of the mysteries in and around your home. Pack up the art work. Put in new light bulbs. Clean out the closets. Get those inspections. And do not allow your property to be invaded by chotchkes. By getting rid of the mysteries, you are telling the buyers that you are serious about selling your home. You can demand and receive full price for full disclosure.

http://www.yelp.com/biz/kansas-city-corporates-kansas-city

Wednesday, September 12, 2012

Frequently Asked Questions

Frequently Asked Questions

How do I pay for the living accommodations and services at Kingwood Village?
What are the terms of leases?
Can I bring my pet to Kingwood Village?
Do Kingwood Village communities allow smoking?
How are rent amounts set?
What are the visiting hours?
What does it mean to "age in place."
Are all assisted living and retirement living communities alike?
Can I bring my own furnishings to my apartment?
Q: How do I pay for the living accommodations and services at Kingwood Village?
A: Kingwood Village residents' expenses are either paid for privately, or through a third-party source such as a long-term care insurance policy.

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Q: What are the terms of leases?
A: Westminster House offers a one year lease with a 30-day written notice of termination. Wilshire House requires a two year lease.

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Q: Can I bring my pet to Kingwood Village?
A: We know that pets can be an important member of the family - but we do require a $500 non-refundable pet deposit.

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Q: Do Kingwood Village communities allow smoking?
A: Yes

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Q: How are rent amounts set?
A: A resident's rent is determined by the size of his or her apartment.

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Q: What are the visiting hours?
A: When you live at Kingwood Village, it's no different than living at home—you and your guests are free to come and go as you please.

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Q: What does it mean to "age in place."
A: "Aging in place" is a term that can be misleading. In some cases, residents require services that are beyond those allowed by state regulations. In most cases, however, residents can live with us and pass away in their own homes.

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Q: Are all assisted living and retirement living communities alike?
A: No.

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Q: Can I bring my own furnishings to my apartment?
A: Absolutely. This is your home and you may decorate as you like.

Tuesday, September 11, 2012

PREVENTING FALLOUT: 5 QUESTIONS EVERY AGENT SHOULD ASK (PART IV)

Okay, after covering down payment, income, and credit in Parts I, II, and III, let’s move on to the fourth important question.

Question #4: Are You Pre-Qualified or Pre-Approved?

When I speak with Realtors, there is inevitably some question about the difference. And lenders will frequently take advantage of the confusion.

An agent of mine recently had a deal fall out at the 11th hour with a client whose lender had provided a pre-approval letter with the original offer. When my angry agent confronted the lender, the lender shrugged and laughed as if to say hey, I lied, so what.

To avoid that type of deception, here’s a convenient place to draw the line in the sand.

A pre-qualification letter represents the loan officer’s opinion about the buyer’s qualifications. A pre-approval letter says that the file has been formally approved by a lender.

Pre-Qualification

Since this is merely an opinion letter, you need to know who is rendering that opinion (see Part V). Would you trust a serious medical diagnosis to a med student? No, you wouldn’t. Since you don’t know this person and since the market is full of bogus pre-qual letters, you have reason enough to ask your client to speak briefly with your lender. In doing so, you’ll be able to confirm the buyer’s qualifications and strategy. For instance, do they need a credit for closing costs?

I coach my agents to explain that by talking with me, they’ll be able to obtain a pre-qual letter from a well known and respected local lender. In multiple offer situations, I have had my client’s offer accepted because the listing agent recognized my name.

Pre-Approval

Pre-approval letters should only be issued after the loan has been submitted and approved. This is easier than it used to be, because most loans today are submitted through the the Automated Underwriting Systems. A formal approval with a list of conditions is issued if the loan is accepted.

Here’s a tip: get a copy of that approval. If the lender balks, the approval may be bogus. And if the borrower is approved, you’ll get to see the approval conditions. That’s critical, because there are sometimes conditions the borrower can’t meet. For example, what if that stated income approval comes back approved as long as the borrower can provide tax returns. Effectively, that’s a counter offer that the borrower probably can’t accept. An approval is only as good as its conditions are reasonable.

There you go. On to Part V

IS THIS THE END OF CREDIT SCORE PIGGYBACKING?

You may be familiar with the credit improvement trick of piggy-backing on someone else?s good credit to improve low Fico scores. Usually this is done to build scores for a son or daughter with no credit or to rebuild credit for someone who has had problems.

I feel dumb for being even a little surprised that there are on-line businesses encouraging and facilitating the use of this tactic?and worse?between complete strangers to game credit scores and defraud lenders. See the Mortgage Fraud Blog?s post for a good analysis of the problem.

Here?s another article I saw today, apparently one of many that appeared last weekend on this topic. The bottom line is that this tool is about to be shut down because of abuse. Don?t blame the mortgage industry for this one. It?s like drugs. The fundamental problem is demand.

Regulators Seek End to Shady Credit Score Sites

Mortgage industry regulators are trying to crack down on Web sites that offer consumers a fast way to boost their credit scores and look a lot more appealing on loan applications. These sites promise to connect a home shopper’s credit history to a stranger’s credit card or provide pay stubs from bogus companies. One even offers consumers the opportunity to rent a well-stocked bank account for a month.

?We think these types of Web sites are increasing,’ says Frank McKenna, chief fraud strategist at BasePoint Analytics, which helps banks and mortgage lenders identify fraudulent transactions.The operators of these sites are hard to track down because the y shut down and disappear when investigators come calling. These sites also are hard to police because it is unclear which laws, if any, the they’re breaking, says McKenna.

The repercussions for the consumers are clear, as it’s illegal to lie on a form, but there aren?t laws that specifically prohibit what the Web sites are doing. One site, RaiseCreditScoreNow.com offers to add a person to four separate $20,000 credit lines with 10 years of perfect pays for $4,000. The site says that doing so could increase an individual?s credit score by 200 points in 90 days. Another company, SeasonedTradeLines.com, says it has an inventory of 100 real, verifiable credit card accounts with perfect payment histories dating back to 1974. Fair Isaac Corp., which developed FICO credit scores, says it is trying to shut down this practice, which it calls piggy-backing.

Got a question or concern? Need help with a loan? Email me. I can do loans in the most of the Western U.S.

SHORT SALES VS. FORECLOSURES….YOUR CREDIT WILL SUCK EITHER WAY

I get a lot of calls these days from real estate agents wondering what effect a short sale or deed in lieu of foreclosure (DLF from here forward) will have on borrowers? credit. That is a really important and interesting question, since the last real estate downturn preceded the widespread use of Fico scores and automated underwriting (AU) systems.

Everyone now seems aware that debt cancellation creates taxable income. In a short sale, the amount of the lender?s loss is reported to the borrower as income, creating an income tax liability for the borrower. If the borrower is insolvent at the time, the tax liability can be avoided, but only to the extent that liabilities exceed assets.

But how will credit scores be affected? And if a loan is approved through LP or DU, Freddie Mac?s and Fannie Mae?s automated underwriting engines, will the underwriter overturn the approval when she sees the typical ?settled? comment on the mortgage tradeline?

For answers to these questions, I turned to my credit reporting agencies and representatives from the capital markets to see what is boiling inside the pot.

Credit Bureaus and Fico Scores

The word from inside is that short sales and DLFs are a hot topic. The scoring models are being revised to put them in parity with foreclosures. Although some agents are suggesting that short sales are not as damaging to credit as foreclosures, that would be a bad bet. Though it may be some time before we see credit scores for borrowers emerging from short sales, just assume they are going to tumble.

Given the inherent conflict of interest?a Realtor makes a commission on a short sale and doesn?t in a foreclosure?the real estate professional should proceed cautiously when counselling a seller. A short sale that leads to a tax liability and possibly to further financial hardship or bankruptcy could easily backfire on the party who profited most from the transaction. If the resulting credit scores also render the buyer unable to purchase another home or cause increased costs for auto loans or credit cards, it is easy to imagine the borrower taking a dive and hoping for a red card.

Automated Underwriting Approvals

Typically, there is no public record of a short sale to undermine an AU approval. Although AU may still see it, we?re not certain of the effect it will have. So I asked a couple of underwriters and the V.P. of American Pacific Funding what would happen if an AU submission was approved and the underwriter later notice a ?settled? comment on the mortgage tradeline. They didn?t know, but the question triggered a vigorous and immediate investigation.

Running that question up the flagpole in the capital markets illicited a blunt response and revealed a clarity of purpose from which we should take our cue. There will be no leniency shown toward short sellers. Investors dictate underwriting rules, and their instructions could not be more clear. Show no mercy. Punish the borrower who defaults. Make it difficult for them to do it again.

Waiting for Guido

Mortgage money belongs to people who expect to be paid back. Layoffs, health problems, and job transfers are the borrower?s problem. If the market takes a turn for the worse, the borrower needs to figure out how to make the payments until things improve. If the investor is dragged in to the mess by a short sale or deed in lieu of foreclosure, Guido will be paying a visit. He may leave your knees intact, but he won?t be so kind to your credit. And you won?t be buying a home anytime soon.