What Are Kansas City Real Estate Investors Looking For?

Q: I’m looking to wholesale homes to investors in the Kansas City area. I’d like to know the answer to one question. What are the top 3-5 things Kansas City investors / landlords look for in a property they’d be eager to buy?

A: I have wholesalers call me each and every week.  All believe or hope that I may have a stable of ready buyers for their properties. 

In no way will I want to appear rude here, but usually if a wholesaler is involved the numbers will not match up with the expectations of most of my more experienced buyers.  Because that’s just one more layer of expenses that have to be worked through to see if the numbers work.

Top 3-5 Things A Kansas City Real Estate Investor Is Looking For

  1. Price/Value/Equity– Whether my buyer is looking to Buy & Hold, Rehab & Rent or is daring enough to Buy, Rehab & Sell they will all be looking very closely at the numbers.  Buy & Hold is probably willing to accept up to 85%-90% of CURRENT market value after all update expenses and closing costs.  Whereas a Rehab & Rent guy will probably be looking for a ceiling of 75%-80% of CMV and a B,R & S guy will be looking at 60%-70% of CMV.
  2. Location – This depends on the budget, down payment, credit scores and end-use goals of the individual investor but you can expect most of my buyers to be looking at clean, safe neighborhoods where appreciation is more the expected than the exception.  Even in this economy.  Jeff Brown calls it the Grandmother Test.  (If grandma wouldn’t spend the night there maybe you need to reconsider.)
  3. Exit Plan – Is this neighborhood likely to increase in value, stay the same or sink a little?  Who is moving in?  (People making more money than their neighbors or less?)   Are they taking care of their houses?  Any new development, both positive and negative, expected for the area in the next 3-10 years? 
  4. Tenant Pool – What kind of tenants will this property attract?  Are there enough of those kinds of tenant about?  Where will they come from?  Where do they work? 

Wholesaling tends to take place in the less than $70,000 price range around most of Kansas City.  It does happen some over that price range, but not nearly as much. 

If a house meets the criteria of the above I’m always willing to look at it.  Just email me the needed information.  listwithchris at kw.com

5 Comments

Filed under Real Estate Investing

5 responses to “What Are Kansas City Real Estate Investors Looking For?

  1. Great article. Very detailed and helpful. Thank you. One follow up question for you…when you say “Wholesaling tends to take place in the less than $70,000 price range around most of Kansas City”, is that $70k referring to the wholesale price or the current full market value of the property?

    For those interested, I am going to have some homes to sell at 40-60% of current market value less repairs. If you want to get on my VIP buyers list, hop on over to my website. Thanks!

  2. Follow-up…To get to my website, click on my name.

  3. Pat

    When ever I see someone wants to sell “wholesale homes to investors”, I think someone is trying to find the greater fool. If the homes have value, list them with an agent and get market price. If they do not want to list them, I question the location, if they are over priced, and wonder what out of town invester was taken for a ride.

  4. Pat

    It is a shame that Brian is trying to use “Chris’s Blog” to sell his investment system. Use a local agent like Chris to get through investment system instead of paying to learn what Chris provides on this blog.

    “A fool and their money are soon parted.”

    Brian’s Website from comment above: http://dodeals.com/hotbargain_index.php
    –Free for 30 Days–

    “Discover How an Under the Radar List
    of Bargain-Priced “Pre”-Preforeclosure Properties is
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    Deals in 30 days or Less…And Rake In
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    Invested in Real Estate Before”
    Until recently this “secret list” was offered only to a select few…but now for a limited time you too can gain FREE instant access for 30 days to this secret list of motivated sellers, deep-discount wholesale deals, pre-preforeclosure, and bankruptcy bargain-priced properties…with no strings attached.

    —–>Start getting leads FREE for 30 days<—-

    Dear Real Estate Investors,

    Now you can find real estate investment properties without cold calling, putting up signs, or talking to unmotivated sellers. It may sound unbelievable, but a new “under-the-radar” list of bargain-priced properties has made it possible for real estate investors to do just that.

    My name is Tim Mai, full-time real estate investor, CEO of dodeals.com and Founder of Certified Real Estate Investors Association (CREIA).

    Perhaps one of the following applies to you. You’re:

    Looking everywhere for deals but have no idea where to find them?

    Putting up signs all over the place but only getting a handful of calls (and most of those calls are from “tire kickers” rather than motivated sellers)?

    Getting doors slammed in your face by pre-foreclosure homeowners who want nothing to do with you?

    Scouring through the newspaper and making so many cold calls you feel like your ear is about to fall off only to get hung up on or told “no deal”?

    Subscribing to so-called motivated seller “leads” web sites that give you nothing but FSBO listings that hardly ever lead to a deal?

    Searching for deals on the web but can only find a handful in your area?

    Well, you’re not alone. I’ve been exactly where you might be right now…without profits, desperate for deals, and no idea where to find them.

    When I started investing, finding deals was so tough for me that …

    I Almost Gave Up Before I Even Started Investing
    For 4 1/2 months I pounded the pavement looking for bargain-priced properties. I drove around in the heat and rain knocking on doors of people selling their houses only to get the door slammed in my face. I thought there had to be a better way to find properties to buy.

    But I didn’t have a clue. I had no real estate background. In fact, I had just been laid off my job and was looking for a better way to make money.

    Then, by chance, I discovered a book by Peter Conti and David Finkel about lease options. They said that the easiest way to attract “motivated sellers” was to follow these 3 easy steps:

    Step #1: Make up 200 signs… and…

    Step #2: Go out and put up those 200 signs… and…

    Step #3: Take the calls from all the people that respond to those signs and close the deal.

    So, I tried that.

    The result?

    A measly 4-6 calls. Motivated sellers, these people were not.

    Here I was: making and putting up signs, cold calling owners trying to motivate them to sell, going door-to-door trying to find owners willing to sell. And the more I did all this, the more humiliated, demoralized, frustrated, and miserable I felt.

    I was on the verge of ending my real estate investment career before it even began…

    But Then the Phone Rang…

    But this time, it wasn’t a “tire kicker”. This lady was anxious to sell. She was so anxious in fact that she was asking for a price far below what her property was appraised for.

    Not wanting to appear overanxious (I was), I made an appointment with her to see the house. Liking what I saw, I was prepared to take her offer (which was VERY generous). But she seemed so motivated to sell that I asked her if she would take even less if I would pay her all in cash and close quickly.

    She hesitated for only a moment and then readily agreed.

    Finally, After 4 1/2 Months…A Deal!

    It ended after I fixed up the property a bit and auctioned it off 5 days later—at a nice profit. It felt great getting that first deal. And with the confidence I gained from making that deal, I would go on to get other deals.

    And as time went on, I got better and ultimately realized my dream of becoming a full-time real estate investor. Then I met others who were in similar situations like me. They wanted to earn money investing in real estate. So, I started to help them in their quests to start building wealth in real estate investing.

    But the same roadblocks I faced when I started out, my students also faced. Each and every student of mine kept getting discouraged. Like me, they soon found out that…

    Finding Good Deals Is So Tedious, Time-Consuming, & Nerve-Wracking That You Want To Quit And End Up Missing Out On A Lifetime of Profit

    So, I decided to do something about it. I wondered if it was possible to create a ”list” that brings the properties to the investor instead of the investor trying like mad to track down the deals?

    And this got me thinking even more…

    …Could I create a system that finds bargain-priced properties and offers them to investors. And it could have all sorts of bargain priced properties…

    Motivated sellers
    Deep-discount wholesale deals
    Pre-preforeclosure sellers
    Bankruptcy properties
    And if I could put this all together, it would not just be possible, it would be probable the investors I was helping (even newbie investors who had never done a single deal) to start making deals in 30 days rather than 4 1/2 months like me.

    And so…

    I used my marketing skills and hired a team of top-notch “internet coders” to compile a list of the best bargain-priced properties…so you can STOP chasing unmotivated sellers and can START making deals in 30 days or less
    And with the help of my newly-formed team of “internet coders” and a trusted staff of “spies” I was able to put together dodeals.com to bring all these potential deals into one place.

    I wasn’t sure what to expect but after providing access to this list to just a select few students of mine, I discovered that my “secret list” resulted in…

  5. One of the reasons I do this blog (make no mistake, the first reason is it makes me money) is to educate people as to wise real estate investing.

    If someone decides wholesaling is a good idea then so be it. Just know I am NOT a party to it.

    It can work out for everyone involved. But usually their is at least one person being taken advantage of. Will it be you?

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