All Forum Posts by: Kim Tucker

Drake, I have a real estate investor group on facebook for the lake of the ozarks, please post your event there too - we LOVE Baxters and for those of you who have not been there, Happy hour is amazing and the View can't be beat!!

Reminder: MAREI Meeting is tonight and we ask that you PLEASE pre-register. Saves you time at check in and MAREI Members, if you pre-register before noon, you get a preprinted name tag. Non-members if you pre-register before noon and it is your 2nd or 3rd meeting, you save $10 on the guest fee.

Sorry, no @Shannon Witters this is a live event.  

Welcome - lots of live meetings to connect live and face to face - check out the MAREI meeting next Tuesday Jan 8th - its on the BP Calendar of events.

In the Kansas City Metro you might check with Julie Anderson Clark (she's on facebook, but we can't post her website) here company does contracts, foreclosures and is probably the biggest eviction firm in the metro.  Also look up David Nachman and Rick Davis, both manage small business law and real estate and loan contracts.

Many Many times as the leader of the local REIA in Kansas City, I would get calls from out of state investors who snapped up a turn key rental property for so cheap that rented for so high and produced $500 cash flow a month.

AMAZING, who would not want it.

Sadly the price paid for these houses was way over value for their location.  The tenants in the property were barely screened, just a warm body placed, and then after the new owners owns for a couple of month, there is no cash flow, the tenant must be evicted and after eviction and in the process of finding a new, actually qualified tenant, the house gets ripped and stripped and the owner who paid too much to begin with now needs to put another $8 to $10k in the property before they can rent it.

So - learn your sellers, some are one and done and some want an ongoing relationship with you.  If they've done a few folks wrong, it will be on the internet somewhere.  Sadly some change their names so you can't find them.

Next, learn your areas.  Some areas are just not worth it.  In Kansas City, if the average price for the area is under, i would say about $80k, do a lot of homework on the area before you buy.  See what other houses are selling for and know what a good deal is before you buy and it's not just about the numbers.

Have local boots on the ground.  You need your own buyer's agent who knows rental property or possibly a local investor partner, a good general handyman, a good title person and a couple of good attorneys for contracts, evictions and the like.

The local REIA group in what ever city is a great place to start to do your research and find local people. Google National REIA and find the local group in your area.

And owning rental property in Missouri should not have negative cash flow.  We have cheap properties that are not worth it in the long run because of the age, the crime, and repairs that will ad up.

 But we also have nice suburban houses in the $80 to $150k range that should rent and cash flow.  If they don't you are not doing it right.

Note in Kansas City, that the city council is working to change that:  some of the proposals are 60 to 90 days and in another state, the landlord has to pay the tenants moving expenses.  Be sure to check with your local ordinances as they are getting way crazy across the country.

Um, spend a few $100 and consult with a real estate attorney on your options as right now we are just speculating.

With 20 years of experience in KC, I am guessing that seller would probably do nothing and accept the EMD as liquidated damages, I have not read our 40-page contract of late, so not sure. The seller could sue for liquidated damages, or maybe the attorney would advice negotiating a buy out of the contract as in we will double our EMD that the seller gets to keep to back out.

There is a way out legally. 

or buy it and relist it for sale, although they might lose a lot more money than the attorney would coust.

If it's owner occupied and you have huge equity, don't refinance and get the big loan as we head into the predicted down market.  You might like that equity and cash flow in say 2020.

Do however find out about a Home Equity Line of Credit.  You set it up once based on your equity and then you can borrow money and pay it back like a credit card basically.  You can use that to pay cash for the next Buy and Rehab and then refinance to a permanent loan.

  Although you did say they would not do a 2nd mortgage.  Maybe talk to a different lender.  You might find what you need at a different bank.