Consistent Distractions

We take our job very seriously.  We have invested a lot of time and energy into learning our trade and understanding the business.  Naturally we love the design aspect, shopping, checking out properties, educating about creating a healthier earth and watching  home transform.  And it’s critical we understand the systems to doing things the right way and avoid unnecessary risk.  When it boils down to it, it’s crazy fun.

Life as a real estate investor means we live on the fly, how we spend our days often gets made up as we go.  The best scheduled plans can quickly get detoured when a potential deal needs to be accessed because offers are made quickly.  Part of the excitement of the business is the unpredictability and it can also be a source of frustration.  At times we have found ourselves distracted by the excitement and wasting time on the wrong tasks.

Because of the tendency to chase shiny things, we have begun to emphasize improving our systems to implement tasks and routines with flexibility.  This allows us to keep focused on structure while still allowing for unplanned events.  We time block when to work on marketing, communications, renovation tasks, analyzing deals, education and networking meetings.  We keep each other accountable for sticking to assigned tasks and staying focused.  Our business is more productive because of this method.

Keeping in mind the necessity of avoiding distractions, I stood in our construction zone making a mental note of all of the duties which would need to be worked on over the next few days.  Tile on the kitchen floor to be repaired, trim around the windows, installing appliances, paint etc.  I placed a phone call to the contractor to go over what I was seeing when outside the window I spotted a flash of white.  Grateful to have the major part of my conversation completed, my focus wavered from his words to narrow in on the bright spot across the street.  I darted to the window like a labrador retriever and there it was, a small furry ghost on the tree, the neighborhood albino squirrel.  Okay, so we are not perfect.  We can’t time block everything and may still chase ‘shiny things’ on occasion.

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Not the actual squirrel, you would stop to look too wouldn’t you?

Kansas City Home Sales

soldimagesWith a decrease in inventory and an increase in sales price, Kansas City is currently in a hot seller’s market.  According to the Kansas City Regional Association of Realtors there are 27% less homes listed for sale in the Kansas City then there were just three months ago.  And the median house price reflects the greater demand by increasing 6.7% in the same time period.  If you are hoping to buy this spring, you have a lot of competition.

On the opposite side, this is great news if you are considering putting your house on the market.  You may have heard some extraordinary stories of people who list their home, have dozens of showings and multiple offers within days.  Ordinarily we would think this kind of house would be in a prime location and listed below market value to gain this kind of response.  However, this situation is occurring all over the metro and in every different price point.  The offers have been flooding in for home owners over asking price, no contingencies, with high earnest money checks and all kinds of additional bonuses to get contracts to stand out above others.

If you want to get in on the real estate action, now is the prime time to sell.  There is some up front work to consider as buyers love clean, updated homes with great curb appeal.  However, being a sellers market means buyers are willing to put money into some updating and landscaping just to get themselves to the closing table with a home.  It still would be unreasonable to think you could sell a house at a premium if it needs a complete overhaul or major repairs.

But what if your house needs updating or big repair and you still are interested in taking advantage of the current market?  It may seem overwhelming to replace a roof, repair foundation, install new carpeting or update bathrooms or a kitchen.  We may be able to help, we won’t ask you to clean, we won’t expect you to declutter for showings, and we won’t ask you to make any updates or repairs.  We make fair market cash offers, pay closing costs and close on your timeline.  And as license real estate agents, we may recommend it would be to your benefit to list your property in the traditional way to maximize your profit and can refer a great agent to serve you.  Reach out to us for more information at contact@ecolivingproperty.com or (913)333-9643.  We would be happy to answer your questions and help you with real estate solutions.

 

 

 

Have you considered real estate?

With so many HGTV and DIY shows making flipping look easy, many people have the idea real estate investing is simple and fun.  Choosing design plans, shopping for features and creating something beautiful out of what once was ugly – yes some parts are pretty cool.

In general, the thought doesn’t actually motivate most individuals into action to buy a house and begin construction.  This, as Martha Stewart would say, is a good thing.  Real estate is not as simple as it looks when trimmed into a 30 minute episode.  Unfortunately not all construction goes as planned, surprises can be hidden behind walls, permits can be stalled, and any number of things can go very, very wrong.  Experts who have invested in essential education, have systems for staying on time and on budget, and utilize a network of other seasoned investors can overcome these home nightmare obstacles without faltering.  For the beginner without knowledge about the process, these same obstacles can drive them to bankruptcy.

Okay I know this post started out scary, I promise there is an upside.

If you are a person who has an interest in real estate and realize you lack the time, energy or education necessary to take on a project there is still a way you can be involved and make money.  Redevelopment companies like, EcoLiving Property, grow business by building relationships with lenders who can fund the purchase and construction of a project.  The lender is given a first or second mortgage position to secure their legal interest, meaning the lender acts as the bank owning the property and collecting the interest.  Except you can earn double or more what a bank charges for interest on their mortgages.  The best part is, unlike your money in the bank or in the stock market, your investment is secured with the property and insured – no matter what could go wrong, you can’t lose money.

You may be wondering why wouldn’t we just get a mortgage loan from a bank, especially since the interest is cheaper.  The way our business works, we need to be able to purchase houses quickly and banks – to put it kindly – operate at their own pace.  Additionally, since the houses we purchase are distressed properties well below market value, banks cannot loan on properties without functioning kitchens and bathrooms.  Besides, we figure in the cost of paying our investor to our flips and we value their part in our business.

To review how the process works:

  1. EcoLiving Property finds an extremely undervalued property and presents you with the project.
  2. We borrow the funds from you to purchase and renovate the property.
  3. EcoLiving Property utilizes systems to complete an eco-friendly renovation staying on time and on budget.
  4. We list and sell the property.
  5. At the closing you’ll receive your principle plus interest payment.
  6. You can continue to invest in future projects and continue earning.

If this sounds like a more foolproof way to get involved in real estate investing, you’re correct!  However, we will not make money for just anyone.  We want to build investor relationships with those who have the same passion for our mission.  Our homes aren’t your typical flips, we aim to create green, energy efficient and clean home environments and hope you share this vision as well.   If you’re interested in hearing more, I’d love an opportunity to answer your questions.  Please give us a call.

 

The Key is Patience

One of the most difficult things about buying homes to rehab is falling in love the with character and charm of an older home and have a deal not work out.  As business women it is imperative to make business decisions, make them without emotions and make choices only in regards to the numbers.  Unfortunately for us, we not only chose real estate redevelopment for our business because of the viability of our investments but for the love of houses.

We swoon for great architectural bones, we are giddy with colorful patterns and rich textures, we ooh and aah like new mothers for built-in cabinets, glass door knobs and detailed crown molding.  We don’t turn our nose up at puzzling layouts, moldy odors, and layers of outdated wallpaper.  We seize the opportunity to explore our own creativity, make it functional and develop a home.  We have passion in this process so it’s not exactly ‘non-emotional.’

This week we had to make the difficult decision to let go of a house we had under contract.  The house itself was in an ugly state and in desperate need of love and attention.  We saw through the years of wear and neglect, the sagging roof, cracked stucco, over-sized fireplace and outdated lighting.  We knew the combination of our design plans to update with eco-friendly products and energy-efficient materials would bring new life to this home.  We knew a future homeowner would be able to enter into a warm inviting space where they could truly appreciate the original features we could highlight.  We were enthusiastic about this project and desperately wanted to fulfill the vision we had for this house with infinite potential.

In the end, we recognized the numbers didn’t make sense.  No amount of love for the original wood floors would cover the cost of a brand new HVAC system, the charm of the glass doorknobs was not financial compensation for replacing the front porch and the character of the neighborhood would not pay for replacing the kitchen and bathrooms.  In redeveloping properties there are daily lessons and this single one we return to more than all the rest: The Key Is Patience.

There will be more homes with these features, this one was not meant for us, the numbers have to make sense.  We love our business and we have to show our business love by following the numbers first.