Crazy About Real Estate » Private Money http://crazyaboutrealestate.com Just another Crazyaboutrealestate.com weblog Sun, 22 Mar 2009 19:44:48 +0000 http://wordpress.org/?v=abc en hourly 1 Kansas City VS Other Markets For Investing http://crazyaboutrealestate.com/letters-of-an-investor/kansas-city-vs-other-markets-for-investing/ http://crazyaboutrealestate.com/letters-of-an-investor/kansas-city-vs-other-markets-for-investing/#comments Sun, 22 Mar 2009 19:44:48 +0000 dan reedy http://CrazyAboutRealEstate.com/?p=98 With the huge interest in Cash Flowing Rentals in Kansas City from investors nationwide, I thought it would be interesting to compare it to another rental market I have been seeing promoted on many blogs and websites as a cash flowing market.

I have also included info about the area from which many of our investors come from.

This information is according to Yahoo Real Estate neighborhood profiles.

Kansas City Detroit Los Angeles

Population 450,375 916,952 3,834,340

Population Growth 1.9% -3% 3.5%

Population Density 1424 6265 8388

(residents per sq mile)

Median Age 36 33 34

Medium Income $43,574 $32,426 $42,529

Median Home Age 42 yrs 57 yrs 34 yrs

Median Home Value $146,400 $32,426 $606,375

Ownership % 51.45% 46.05% 36.4%

Rental % 37.04% 38.54% 60.36%

High School Grad 82.9% 69.6% 66%

Unemployment Rate 7.8% 17.7% 7.8%

Returns of 20%-40%, stable economy, availability of affordable housing and an average price of $57,500 for Postive Cash Flowing Properties makes Kansas City a FANTASTIC market to invest in.

Kansas City Investment Properties & Cash Flowing Rentals

Missouri Real Estate Exchange

11333 Hickman Mills Drive

Kansas City, Mo. 64134

Office(816) 761-9400

Fax(816) 761-9401

Toll Free (866) 451-MORE

Email: danreedy@morekc.com

BLOG:  http://activerain.com/blogs/reedy6799

]]> http://crazyaboutrealestate.com/letters-of-an-investor/kansas-city-vs-other-markets-for-investing/feed/ 11 Working with Private Money for your real estate deals http://crazyaboutrealestate.com/letters-of-an-investor/working-with-private-money-for-your-real-estate-deals/ http://crazyaboutrealestate.com/letters-of-an-investor/working-with-private-money-for-your-real-estate-deals/#comments Thu, 08 Jan 2009 23:55:32 +0000 Matt Vestal http://crazyaboutrealestate.com/?p=56 Real Estate is a very secure investment. The ability to collateralize real estate gives you a better chance to leverage off other people’s money. Have you ever gone to your rich uncle for money? Maybe you needed to buy books for school, or pay off some debt. Whatever the reason, there is no better cause for lending you money than buying real estate. Think about it…how does a bank make money? You put thousands in their accounts or cd’s and they give you 1-3% annual return on your money, to then turn around and lend that money at a much higher rate. In other words you lend them very cheap money and they turn around and make it expensive by creating demand. Well let’s see…if I invest $30,000 of my hard earned cash in a cd at 3% for a year I can make a whopping (drum roll)… $900 bucks?! Sorry but your rich uncle is much better off with what YOU have to offer.

Take this for instance: You ask your rich uncle to lend you that same 30,000 to buy and fix up a house, as well as pay any fees involved in the transaction. And then with a well thought out exit strategy you can pay him back in 3-6months (yes it’s possible)…at 10% simple interest. That’s $3,000!!! In max 6 months. Do this twice a year and now you’ve made him $6,000. That’s 20% annual return. Rule of 72 tells us you can double your rich uncles money is 3.6 years. It would literally take you 24 years to do the same at your bank!

Using the right security documents your piece of real estate is collateral in case you don’t pay your uncle back. He just basically cut out the middle man and is making money with his favorite family member!

Remember to always consult an attorney and obtain specialized training before implementing any of the above. It’s not as easy as it sounds, it takes a system and years of knowledge. Not that you have to have all the knowledge about investing using private money. But you do have to surround yourself with those who do.

Till next time,
God Bless!

Ernesto Tinoco
MOKSRealEstate.com

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