All Forum Posts by: Richard Okagbue

@Pete M. there are now 3 city departments armed with making life miserable for landlords all under the notion that they are looking out for tenants. We have the Healthy Homes Program. Then we have the Rental Registration stuff. And then a new one was just approved via a bill a few months ago that, though not funded yet, will have a $1m a year budget (to start with) to help tenants with a lot of stuff (look up KC Tenant Bill of Rights).

As for the registrations, THERE IS ENFORCEMENT but Kansas City, Missouri is a 318sq mile city with less than 20 inspectors doing all that enforcement. Their priority is for where there have been complaints first. So you're not seeing SUFFICIENT enforcement but make no mistake it is there. And yes they have the right to inspect anytime if invited by tenants due to complaints. Registration is a good idea but you can also just register after the initial "warning letter" as most investors I know do.

Similar programs exist in nearby cities (Grandview, MO has one too) and it is spreading like fire. KCMO is the largest city around and many cities follow its lead on stuff like this which will add to city coffers. Overland Park, KS does not have an inspection program yet but does have a rental registration program as well that is much more expensive to the tune of $120 (at least on a duplex).

@Kim Tucker, you are just playing with words. Hard money lenders are also private lenders. So yes, by private lenders I meant the full group. For example, I mentioned several companies that you may group under hard money lenders. They all fall under the broad group of private lenders as I have read here and in many other places. Your speech on your lenders being private to you only does not help me at all and is clearly not what I asked about in this thread. I also have such lenders, two of whom know you quite well! I clearly am seeking more lending. Being told a speech on networking and such is meaningless, insulting and condescending as you assume I do not already know that. It is also clearly not what I asked for here.

I guess I forgot to add that these properties are titled under my LLC. I can't do FHA with them and also, I can't even do conventional - for conventional, the properties have to be titled under my name personally for at least 6 months.

I'm seeking recommendations for good private money lenders for investments in the Kansas City Market, please mention who you have worked with or heard of that can make this deal happen. The deal - short term refinance for two properties valued at $60K each in Kansas City which were purchased with cash due to the competitive market, but now the cash is needed back out to be used to rehab and flip the properties. So basically, need a 12 month refinance loan for both houses.

Please note that Peak Asset Lending, which proudly advertises themselves as a good local lender, is quite picky and actually is executing a form of redlining and will not fund projects in all of the city. They have some formulas they use to determine if an area is "worthy" of their money. These two houses are not even in the inner city and are located in a suburb in the South area and yet they declined to finance them. I suppose their redlining is legal because these are investment loans and not owner occupant loans. 

It seems that many lenders just cannot help with cheaper properties as they have giant minimums, Visio Lending has a loan minimum of $100K (was $75K just as recently as last year) and LendingOne has a loan minimum of $75K for each property.

I'm hoping to get a good lender that is not redlining and also recognizes that $50K still buys a heck of a house in Kansas City and in decent areas of the city too!

Actually take a look at this on loopnet, you should try this approach, don't agree to split them up and you will attract only larger investors, everything like this I have seen for sale on loopnet has gone from super fast to fairly fast - https://www.loopnet.com/Listing/profile/15387240/

I certainly think you can sell it as a package to an investor without even going on the MLS. You can also split them up if you are fine with that. What do you have in Grandview? I may even be interested in that one.

I do not know anyone with several rentals, just people with a few here and there but I know appreciation is pretty equal between OP and LS really. Those are two solid A neighborhoods, now LS has some areas that are less than A but for the most part it is an A neighborhood area.

...

I'm currently under contract to buy my first one (a duplex) over there, Overland Park is a solid A neighborhood which is also very desirable in the KC Metro so it isn't hard to get stuff rented there. Property values and taxes are high which makes it next to impossible to hit double digit returns without leverage, most returns are like 5% to 6% if you are paying for management and if not leveraged.

Will these guys write policies for me that are for the LLC and such that if a claim is ever made, I won't be impacted personally (won't appear on my loss history)?