Real Estate Investing in Kansas City: On Your Mark, Get Set, Get Set, Get Set…Oh, Go Already!

About two weeks back I was interviewing a potential Buyer client. He had found me through one of my blogs and said that he had liked what he had seen about my real estate investing philosophies here in the Kansas City area. I was flattered. But I was also growing leery of his motivation.

His motivation to actually buy a property, that is. It seemed that he had read the books I recommend along with half a dozen others. He had been to workshops and seminars that I’ve never even heard of. He was member of both investment clubs here in Kansas City. Had an LLC. Had an accountant. A lawyer was all lined up. So to was a property manager. Mortgage guys had been interviewed. There was even someone he was considering hiring as a mentor.

And all this had only taken him three years.

Now, I am big on setting goals before you get started. Knowing your criteria for a good income property is a must before I’ll go out and show you any homes. Pre-qualification/pre-approval a necessity. But come on. Do you really need the whole “team” together before you get started on your first property?

I am not pooh-poohing preparedness. Far from it. But this is a classic case of paralysis by analysis. Always preparing and never acting. Sooner or later don’t you have to buy a property to be a real estate investor here in Kansas City…or anywhere for that matter?

It was my advice to this would be real estate tycoon that he really focus on purchasing his first income property in the next few weeks or months if he wanted to get his business off the ground. I would help him to evaluate neighborhoods, properties and incomes. But he needed to actually commit to that before I would go to a great deal of trouble. After all, when you hire me to be your Buyer’s Agent, you are hiring a professional real estate agent who can navigate you through the benefits and mis-steps of owning rental properties. This is what I do. Here are references you are welcome to check.

We had a great conversation. It lasted about 45 minutes. He left very enthused and looking forward to emailing me his criteria and pre-qualification letter. He was really ready, this time, to buy an investment property.

I’m still waiting for the email.

If you are the customer of which I’m speaking and you read this and you think I’m speaking of you, you may be right. Don’t think for a moment I am minimizing your efforts or your dreams. On the contrary I want you to act on them. I hope to hear from you, or from anyone else reading this blog who fits that mold, very soon.

One last comment on this topic. Johnson County has appreciated about 3.85% (average) over the last three years. That $200,000 duplex he could have bought in 2004 would now be worth $224,000. Is this a good decision?

4 Comments

Filed under Kansas City Real Estate, Real Estate Investing

4 responses to “Real Estate Investing in Kansas City: On Your Mark, Get Set, Get Set, Get Set…Oh, Go Already!

  1. Jeff Brown

    Chris – This story is the reason I give my clients most of the credit for their investment success, and the rest to me.

    They are putting the rubber on the road, going to battle, taking the risks, and generally earning the right to take that credit.

    Solid piece – I wonder how many ‘talkers’ saw themselves as they read it?

  2. Chris Lengquist

    Thanks Jeff. I love to “talk” real estate. But I really feel for them when they don’t act. Nothing will change for them until they do.

  3. Goofy Girl

    I took the ‘leap of faith’ into real estate investing about a year and a half ago.

    I bought the WRONG house, in the WRONG area, partnered with the WRONG person, who hired the WRONG contractors. My six-week rehab took 1 year. Then I hired the WRONG realtor to try to sell it.

    However….
    The lessons I learned from the whole ordeal were PRICELESS. You just can’t get this from a book, folks.

  4. Chris Lengquist

    Hey Goofy Girl,
    Sorry to hear all that. I’m not a big fan of “flipping” though I do believe in the right hands it is a very profitable way to go. Sadly, your experience is quite common for the new real estate “flipper”.

    One year is an amazing amount of time to take on a rehab. What happened? Did you make any money? Are you putting those experiences to use or has this soured you from doing any more flipping. I’d love to hear more!

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