I promised to tell you a little bit more about the Landlords of Johnson County, Kansas meeting I went to on Wednesday. As mentioned previously there were three gentlemen there from the Bank of Blue Valley to talk about wealth planning, asset protection and the state of the current economy. All the while sharing with us how their bank could benefit each and every person in the room.
In the interest of full disclosure I am a Bank of Blue Valley customer. I think they do an excellent job. On my personal account I get 5.38% interest on any monies in the account under $25,000 so long as I just go about my daily/monthly business. (See Bank of Blue Valley for the details.) I fully endorse at least that program.
Anyway, after the gentlemen each told of their positions or affiliations with the bank they had a Q&A session. And I have to tell you that session didn’t go anything like I thought it would.
As I mentioned the other day there were probably about 75-80 people there. So let’s say there were about 50 different investment property owners. From what I could gather I think I could safely say those 50 Johnson County, Kansas real estate investors had to easily average 3 properties (or more) each. So let’s say we had over 150 income properties represented.
Continuing to set the stage I will tell you that 90% of the folks in that room had to be north of 55 years old. I spoke with some couples that had owned Kansas City investment property for decades. Just as an eduated guess I’d say that each property owner represented in that room easily had to have a net worth from real estate investing alone well above $500,000.
And yet, most of the Q&A session was dominated by talk about stocks and the stock market. What? It was all I could do to sit there for 45-50 minutes and not stand up an yell
WHAT ABOUT REAL ESTATE INVESTING???!!!???!!! YOU ALL MADE THE BULK OF YOUR MONEY THROUGH APPRECIATING ASSETS CALLED INCOME PROPERTY! ASK QUESTIONS ABOUT THE DISPOSITION OR CONTINUATION OF YOUR REAL ESTATE INVESTMENTS!
But you’d have been proud of me. I behaved myself and soaked up whatever information I could about the stock market and what others are doing. And I did learn. But I sat there fascinated by the complete lack of care people seemed to be treating their largest retirement assets.
Now I don’t know the personal cases of any of the people in that room. (Well, that’s not ture. There is one perspective buyer in that room that I didn’t know was attending.) But I would be absolutely flabbergasted if each of these people were on a pre-determined course to navigate the tax implications of their real estate holdings.
I would advise anyone to simply not lose focus of their Kansas City real estate investments. It’s great to have diversification. I too have IRA & 401K plans in our family. And yes, there have been times when dealing with the tenants was exhausing. Yes, there have been times when I didn’t know if I’d have enough money to cover the vacancy. And yes, there have been times when I thought I should quit all forms of real estate and become the drive-thru guy at the local burger joint. But real estate has been/continues to be where my money has performed the best. How about you?