Tuesday, May 30, 2006

Duplexes With Low Entry Fee

I previewed 4 duplexes last week priced between $115,000-$119,000 located in a very clean and safe neighborhood in Missouri. Rents average $550 per side. These look like good solid investments. Call on these!

Wednesday, May 24, 2006

Get Your Real Estate License?

I just got finished reading an article that stated that 1 in every 52 people in California has a real estate license. 1 in 52! That's incredible. It's also interesting.

I'm not sure what the breakdown is here in the Kansas City area. But I've heard we have 13,000+ agents here ourselves.

But what I really want to know is; How many are working and earning a living?

I run into the same agents over and over again. Here and there I run across a new name for the area I work. But by in large it's the same names I see again and again. You see real estate is no miracle job. You don't get rich by passing a two week course and the prescribed exam. It takes work.

10:00 pm phone calls. Canceled weekend trips. Did I eat lunch today? Should I spend my money on marketing or the Worlds of Fun tickets? These are some of the things that you should be dealing with if you are going to rise from the 13,000 here in Kansas City to be known as a producing agent. Heck, even in my own office I think we have 130+ agents and about 20-30 good producers.

If you are thinking of getting your license, give me a call. I would love to discuss this business with you. It's not for everyone. But it could be for you. I will leave it with this...it is by far the most rewarding and frustrating profession I could have ever imagined...and I'm glad it's mine!

Sunday, May 14, 2006

Owner Financing

Buyers will often need to consider many options when purchasing a home. Especially investment properties. One item you might want to consider is getting a Seller to hold all or part of the financing of a home you wish to purchase.

Pros
The qualification and paperwork may be much less of a hassle. And, if you are going to have limited cash down, with a traditional lender you will either have to pay a higher interest rate or mortgage insurance. But you might consider getting a bank to loan 80%, an owner to finance 15%, and you put down 5% and pay your own closing costs. Then you would be able to avoid mortgage insurance. Of course you will want to document all of this and make sure that it is a real "owner carryback" and not an attempt to defraud the bank. Yes, it goes on, sadly.

Cons
A Seller willing to hold all or part of financing is going to want top dollar for their property. Yes, they will be earning good interest. But in their mind they will not be completely rid of the responsibility of thinking about that property. Afterall, if you should default they have to chase you down, file liens... Not what they really want to do. So by getting top dollar they get rewarded for some of their risk up front.

For both parties it can be a highly desirable outcome. Just make sure you work it out, all of it in great detail, before moving forward.

Wednesday, May 10, 2006

Sorry I've Been Away...It's Busy Out There!

I don't know about every REALTOR out there, but I have been busy. And the more I'm in the market the more I keep realizing how basic this all is.

There are still about 9.5 homes for sale for every one that sells. Now think about that. If you are a Seller, you better price your home correctly if you are going to sell it. By correctly I mean that if the condition is rotten you are not going to get top price. If it is in excellent condition do not lose perspective as to what your home will bring. Just because it's nice doesn't mean it's as large as the one down the street.

If you are a Buyer, you are going to like this market. But it isn't quite like Buyer's markets I've experienced before. Sellers are being a little "pie in the sky". If they are backed against a wall they will really move on the price. But because so many Sellers have refinanced their homes, and then refinanced again (how do you like those vacations/SUV's now?) they are locked into the price they are asking or they'll have to bring money to the table.

What Buyers are able to do now is pick and choose. Make a fair offer on this place and if they don't like it, go to the next one. If they are offended, they'll move on again. Again, I'm not seeing huge price reductions. But I am seeing Buyers cherry pick. And that is definitely to the Buyer's advantage.