DAN REEDY

more property management is 1 of kansas city’s most recommended property management companies.

started in 2007 by nancy reedy, a missouri and kansas real estate broker, more property management has grown from 40 doors to over 300 properties currently under management and the list grows daily.

nancy attributes her success and rapid growth to the fact that she is also an investor and knows what it takes to get a property cash flowing and keep it going. she also understands the importance of accountability from the management company regarding your accounts.

with the rapid growth of more property management, nancy found it necessary to find and implement the best management software available. more property management utilizes a web based management software program the enables the property manager, the owner and the tenant to access their accounts anytime online and keep up to date with statements, tenant ledgers, maintenance issues etc…

more property management employs 6 licensed leasing agents that market, show and lease properties. nancy’s leasing agents aggressively market vacant properties with signs and an internet marketing plan the has each property listed on over 20 real estate websites.

more property management also utilizes a full service handy man and maintenance crew that have the ability to respond almost immediately to any repair or maintenance issue.

according to nancy, “kansas city is a fantastic rental market. our phones ring constantly with tenants seeking housing. our current occupancy rate is over 90% on our rental ready properties.”

current average rental amounts are as follows;
2 bedrooms- straight rent averages $650 per month with section 8 rents as high as $750 per month.
3 bedrooms- straight rent averages $800 per month with section 8 rents as high as $910 per month.
4 bedrooms- straight rent averages $900 per month with section 8 rents as high as $1000 per month.

the above numbers will fluctuate depending on neighborhoods and property size.

Lately I have been getting an overwhelming amount calls from across the country from novice investors asking about the foreclosure market in Kansas City.

Can we really buy properties in Kansas City for $5000 -$10,000?

Can we really get hard money loans with no money down?

Are there really lenders in Kansas City that will sell rented foreclosures in their portfolio and owner finance them with almost nothing down?

I have to admit to them that the answer to their questions is yes, it is true.

My problem comes when they ask me to help facilitate these deals for them.

My answer is No.

Don’t get me wrong. Selling investment properties is my passion. I am very good at it. It has done very well for me and allows me to enjoy a comfortable lifestyle. It allows me to sleep very well at night.

I have to tell them no because most of the deals that sound too good to be true are really just that.

Typically, the above mentioned scenarios are high risk properties in high risk areas.

The amount of rehab needed is difficult to calculate due to the theft and vandalism that can occur the minute the workers leave for the day.

The cash flow is difficult to calculate due to the undesirability of the area and for the majority of tenants leaving you wondering if the property will be occupied more than it is vacant.

The true return is hard to calculate because the hard money loans must be refinanced in 6 months and because there are no good comps, most conventional lenders won’t touch these properties.

The owner financed scenario is worse because they are letting you assume the note of some other uninformed investor that owed 200-300% of actual value and wasn’t able to refinance and let the property go back. The tenant only looks good on paper and hasn’t paid in months, the rehab was a cosmetic Band-Aid, and you don’t have any better chance of refinancing than the last guy.

The last issue is this.

There are good reasons conventional financing is tough right now. Close to half of the foreclosures in our market are investor properties.

Investors with good intentions and lots of enthusiasm, but they lacked the proper guidance and cash reserves.

Proper guidance to make wise decisions on the properties and the areas they were investing in.

Cash reserves to cover the “Oh Crap” factor.

Oh Crap, My tenant moved out and it took me 3 months to replace them.

Oh Crap, The furnace went out. Its $2500 to fix it.

Oh Crap, My hard money note is due and I can’t refinance.

This is truly a snapshot in time to make lots of money in Real Estate. There are some great deals available right now.

Be a Conscientious Objector and help your client say No when it matters most.

I bet I talk to 4 or 5 potential investors per month who have spent CRAZY money to learn real estate investing.

They spend their hard earned money to go to seminars, buy tapes, and read books just to get MORE excited about spending MORE money to go to MORE seminars so they can buy MORE tapes and books.

Don't get me wrong, education is a beautiful thing. I wish I had more.

But... when I see regular people spending $3000, $7000, as much as $30,000 dollars on so called GURU MENTORING, and still have yet to purchase a property, or receive a dime in cash flow it makes me wonder WHAT THE HELL ARE YOU THINKING!

They all know the proper terminology like CASH FLOW, CAP RATE, and POWER TEAM but are still in danger of making bad purchases in bad neighborhoods due to unbridled enthusiasm and unscrupulous property sellers.

WHAT'S THE ANSWER? I am glad you asked!

Join an investor networking group.

Share thoughts, hear about mistakes, and ask questions from your peers. You will learn a lot.

Spend $20 on Real Estate Investing for Dummies. I have been involved in hundreds of transactions and I still have a copy on my desk right now.



Read it.

Learning the terminology is OK but the most important things you need to know are;

WHAT AM I TRYING TO ACCOMPLISH?

Is it long term wealth building with cash flow properties? Relatively low risk.


HOW MUCH RISK AM I WILLING TO TAKE?

Do I need a quicker cash injection with flipping? Higher risk



HOW AM I GOING TO PAY FOR IT?

Cash, Credit Line, IRA or Hard Money?

Once you determine these 3 things you now need to find someone you can trust with your future to help you accomplish this. This is where it gets tricky.

There is a very qualified group of people in every market that consists of Realtors, Wholesalers and Property Managers that are intimately aware of their market, trends, good and bad neighborhoods etc... that will spend time consulting with you, giving you multiple references and referrals and help you to accomplish what YOU want to accomplish. More than likely, they will present you with multiple options and give you the positive and negative possibilities of each opportunity. What they won't do is try to pressure or slam dunk you into what they need to sell.

Take your time.

Partner with the right people.

Put your money into your future, not the Guru's.