December 27th, 2011
Crime Free Multi-Housing
Our Brokers are both graduates of the Kansas City Crime-Free Drug-Free Multi-Housing Program with theKansas City Police Department. They have also graduated from of the Kansas City Citizens Police Academy.
What does that mean to you?... they are both certified in drug recognition. If we would like to have a tenant who is involved in drug traffic evicted, our testimony is usually all that is required. We can both testify to the presence of drug paraphernalia or even the smell of narcotics in the unit.
Our applicant processing procedures are based largely on what we have learned in these classes and nearly 30 years of property management.
Over the years sponsored the training of many staff and employees in drug recognition, the crime free multi-housing program.
We have tested this procedure and successfully evicted a tenant who was involved in drug sales. Fortunately we were able to work with the KCPD and the Prosecutors to convince the judge that it was in the best interest of the community. Furthermore we were able to get this drug-dealing, problem tenant removed form the Section-8 subsidy she was receiving.
With the assistance of the City and law enforcement we anticipate big changes in this area!
It matters not, what area you live in or the income statistics for your neighborhood. Drugs are everywhere! It is our goal to provide quality housing to people who are law abiding. We make every effort to screen prospective renters for criminal convictions. If we are aware of any illegal activity in any property we manage we will take whatever legal action necessary to remedy the situation.
Any hint of illegal drugs that we find in any property will be reported to law enforcement. Evidence of trafficing or narcotics sales, manufacture or distribution will be dealt with harshly.
Drugs bring crime, criminals do drugs. Allowing illegal drug use in our neighborhoods will only degrade the property values, bring crime to the neighborhood and create problems for the community.
Better management, better screening, better quality tenants.
Real Estate Asset Protection
Asset protection is a legitimate right of any individual to avoid or mitigate the effects of taxation, divorce and bankruptcy. Asset protection is a concept that has arisen out of the estate planning industry. It is an attempt to hinder a creditor's attack to seize and sell assets to recover debt owed. It changes the character of assets that cannot be legally seized and sold by the creditor.
There are various legal techniques to protect your assets. They vary depending on the type and location of property with limitations. The most essential factors of an asset protection plan are the degree of financial risk, type of assets own total net worth. The kind of asset protection you need depends on your risk factor. It is a standard part of business and estate planning. Traditional forms of asset protection techniques are gift of property, retirement plans, spendthrift provisions in life insurance, turning the business into a limited company, etc. You can also transfer a risk to an insurance company that will protect your asset.
In domestic asset protection strategy you have to legally protect your assets within the country of that you residence in. While offshore asset protection allows you to transfer your assets and form a trust in a foreign land that has anti-creditor law. It is an expensive technique that requires a lot of legal consultation and maintenance.
Properly crafted asset protection strategy could reduce the damage caused by a plaintiff's attorney. Asset protection has been practiced for ages because it is legal, effective and trusted. It is the best way to protect your savings, investments and other accumulated assets.
If you own rental property you would do well to talk to an attorney who specializes in aset protection.
Turn-Key Properties LLC will not tolerate discriminatory practices in the sales, leasing or marketing of real estate. Fair Housing is the law and we go out of our way to endure that all of our employees, contractors and agents adhere to the law strictly. Turn-Key Properties LLC enforces a strict rule of absolutely no discriminatory practices, Turn-Key will not condone, promote or in any way encourage discrimination. All real estate transactions are done in strict accordance with Federal, State and Local laws.
We encourage our employees and contractors to obey all laws and ordinances in relation to fair housing practices.
The Department of Housing and Urban Development (HUD) has established guidelines and set forth practices for the sale, marketing and leasing of real estate. In addition, the Kansas City Association of Realtors has further guidelines and restrictions.
We will not conduct business with any person, company or entity who requests that we operate in any other manner.
In addition we demand that all of our agents be educated in the practices of fair housing and conduct themselves appropriately.
HUD has a web site devoted to the promotion of Fair Housing Practices. Should you need information you can find it there.
You may view the Fair Housing Act here.
Turn-Key Properties LLC offers employment opportunities to all qualified applicants for available job openings. We will not discriminate in our hiring practices based on race, sex, color, national origin, ancestry, age, creed, religion, marital status, citizenship status, disability including veterans with disabilities, sexual orientation, gender identity or medical conditions. All potential employees will be evaluated solely on the basis of past experience, qualifications and ability to do the job.
We are in strict compliance with all guidelines and laws pertaining to workplace discrimination. EEOC
Turn-Key Properties does criminal background checks,and background investigations. Drug testing is a requirement and we have a strict drug free workplace. Use of illegal drugs will be cause for immediate termination of employment.
If for any reason you feel your rights have been violated Turn-Key would like to know of the incident. Please feel free to contact us as soon as possible 816-313-8876.
Kansas City Crime
What is the root cause of Kansas City crime, and what can be done to stop the violent trend? Since 1990 I have lived and worked in Kansas City, in that time I have been the victim of numerous crimes. The odd thing is the perpetrators of these crimes never went to jail! Arson, burglary, theft, forgery, etc.
That is the underlying cause of Kansas Cities' violent crime spree. Having worked in the suburbs and also in the inner city, I see that most residents in the suburban neighborhoods have a cavalier attitude toward crime, that stuff happens to other people... I live in a "nice Neighborhood". The scary truth is you are anything but safe. Criminals have cars, what's more, criminals steal cars, and they can come visit your neighborhood anytime they wish.
I bet you think that if a criminal gets caught in a stolen car he will go to jail! Wrong! A criminal driving a stolen car... your stolen car, will be charged with auto tampering. That is the same charge I would get if I keyed your new paint job. You see the criminals know all they have to do is say I didn't steal it, some guy let me drive it.
The same applies to most other crime in Kansas City. I have had drug dealers arrested inside a vacant apartment that they had broken into to sell crack cocaine out of. During the arrest they were found to have huge quantities of drugs and drug paraphernalia. They were not charged with drug dealing, not breaking and entering, not possession of a controlled substance, not even disorderly conduct. No! They were charged with trespassing! That's right, trespassing.
Every crack head and crack dealer I have had arrested in the past decade or more has been charged with trespassing. The most common sentence for this offense was a 30 day SIS. SIS is suspended imposition of sentence. They never went to jail! But wait there is more! If they are a resident in one of my properties, they can not even be charged with that because they live there.
Why? You ask, because if they had to jail all the crack dealers, pimps, prostitutes, crack-heads, car thieves, burglars and shoplifters there would be no room for people like you for not mowing your yard or driving while drunk! You see they have to pay to keep those people locked up. They simply do not have the jail space. But you! You see, you will pay if you get fined for not mowing your grass. You will pay if you want to get your license back. You will pay if you drive 37 in a 25.
It's all about revenue; Jackson County and Kansas City don't want to pay for it. If the crack dealer doesn't go to jail for his crimes, and the thief doesn't go to jail for his crimes then he just graduates to a higher level of criminal activity until finally he kills someone and the State has to house him and feed him.
We need Jails and Cops not arenas and arts. It is no longer just revenue it's lives at stake here. Tell your elected officials we want more jail space!
Kansas City Crime Blog This is a blog I created because the filtered version of the news at Crime Scene KC is just not doing it anymore.
Kansas City continues to make the most dangerous cities in the nation as reported by MorganQuinto
KC made 16th most dangerous but the numbers are skewed! A wide variety of crimes go unreported. Most calls for service by the P.D. never even hit paper. The Police are far to busy to fill out a report for every call they make.
Kansas City has a huge epidemic of property crimes but most never get reported. Why? If I call in and report that your copper plumbing or air conditioner was stolen nothing will happen, nothing good anyway.
Your insurance will likely not pay, because the house was vacant.
Your premiums will increase or your insurance will be cancelled.
Your deductbale is higher than the damage.
The Police will not investigate, the prosecutors will not prosecute.
Your property values will decline because of the increase in reported crime.
Crime is absolutely out of control in KC and no-one wants to address it. Instead our new mayor wants to punish landlords. Funkhouser has proposed landlord licensing. While the thugs are steailing our HVAC systems and our plumbing Mark Funkhouser thinks we should impose yet another tax on landlords.
KCPD has crime maps and crime statistics on it's web site. If you are thinking of buying a property in KC... Please view the crime maps!
Here's a newer map showing crime in KC http://crime.kansascity.com/
Update, 2007 Sanders, Graves seek regional jail By KEVIN MURPHY The Kansas City StarJackson County should explore building a regional jail for inmates of the county and its municipalities, County Executive Mike Sanders said Monday.
Sanders and U.S. Rep. Sam Graves toured the Jackson County Detention Center in downtown Kansas City, which Sanders said is often stretched to capacity.
Sanders proposed a jail with up to 2,500 beds. He said it also could be used to house some prisoners of Kansas City and other cities in the county that now have crowded jails.
“Clearly, lack of needed inmate space is one of the major public safety issues this community faces every day,” Sanders said.
Sanders said the county could seek federal grants for the project and could also house federal prisoners on a reimbursable basis. The county would continue to operate the downtown jail, Sanders said.
Graves, a Republican representing northwest Missouri and part of Jackson County, said he would help in the effort to find some money to move forward on a regional jail.
“It’s something we have all been throwing around for many years now,” Graves said.
Sanders said there are several potential locations, though he would not be more specific. He did not estimate the cost of a new jail but said he would not want to raise taxes to build it. Sanders said revenue bonds, paid off with income the county gets from cities and the federal government, could help pay for the project.
Finally, there is at least talk of doing something! No doubt Kay Barnes will try to take credit for it. This would be the first positive thing Sanders has been involved in yet. I have many police officer friends and frankly, I do not know how they stand to do their job. Arresting the same people every night to see them released the same day has to be frustrating.
What does the IRS have to say about eschanging your property or a 1031 exchange? What is a 1031? Like-Kind Exchanges - Real Estate Tax Tips Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized.
Section 1031 does not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets.
Properties are of like-kind, if they are of the same nature or character, even if they differ in grade or quality. Personal properties of a like class are like-kind properties. However, livestock of different sexes are not like-kind properties. Also, personal property used predominantly in the United States and personal property used predominantly outside the United States are not like-kind properties.
Real properties generally are of like-kind, regardless of whether the properties are improved or unimproved. However, real property in the United States and real property outside the United States are not like-kind properties.
Cash on Cash Return
In investing, the cash-on-cash return is the ratio of annual before-tax cash flow to the total amount of cash invested, expressed as a percentage. The formula to compute cash-on-cash return is:
PurposeThe cash-on-cash return is often used to evaluate the cash flow from income-producing assets.
ExampleSuppose an investor purchases a $1,200,000 apartment complex with a $300,000 down payment. Each month, the cash flow from rentals, less expenses, is $5,000. Over the course of a year, the before-tax income would be $5,000 × 12 = $60,000, so the cash-on-cash return would be
LimitationsBecause the calculation is based solely on before-tax cash flow relative to the amount of cash invested, it cannot take into account an individual investor's tax situation, the particulars of which may influence the desirability of the investment. Furthermore, the formula does not take into account any appreciation, depreciation, or other risks associated with the underlying property.
Cash-on-cash return is essentially a simple interest calculation, and therefore is not subject to the compounding of interest. The implication for investors is that an investment with a lower nominal rate of compound interest may be superior, in the long run, to an investment with a higher cash-on-cash return.
Retrieved from "http://en.wikipedia.org/wiki/Cash_on_cash_return"
Internal Rate of Return (IRR)
Occasionally someone will want to calculate the Internal Rate of Return on an investment property. This article explains how that formula works. (IRR) The internal rate of return (IRR) is a capital budgeting method used by firms to decide whether they should make long term investments. The IRR is defined as any discount rate that results in a net present value of zero, and is usually interpreted as the expected return generated by the investment. In general, if the IRR is greater than the project's cost of capital or hurdle rate, the project will add value for the company.
To find the internal rate of return, find the IRR that satisfies the following equation
Year Cash flow
Calculation of NPV:
i = interest rate in percent
NPV = -100 +120/[(1+i/100)^1]
(This calculation is condensed.)
Calculation of IRR:
NPV = 0
-100 +120/[(1+IRR/100)^1] = 0
IRR = 20%
Problems with using IRRAs an investment decision tool, the calculated IRR should not be used to rate mutually exclusive projects, but only to decide whether a single project is worth investing in. In cases where one project has a higher initial investment than a second mutually exclusive project, the first project may have a lower IRR (expected return), but a higher NPV (increase in shareholders' wealth) and should thus be accepted over the second project. A method called marginal IRR can be used to adapt the IRR methodology to this case.
The IRR method should not be used in the usual manner for projects that start with an initial positive cash inflow, for example where a customer makes a deposit before a specific machine is built, resulting in a single positive cash flow followed by a series of negative cash flows (+ - - - -). In this case the usual IRR decision rule needs to be reversed.
If there are multiple sign changes in the series of cash flows, e.g. (- + - + -), there may be multiple IRRs for a single project, so that the IRR decision rule may be impossible to implement. Examples of this type of project are strip mines and nuclear power plants, where there is usually a large cash outflow at the end of the project.
In general, the IRR can be calculated by solving a polynomial. Sturm's Theorem can be used to determine if that polynomial has a unique real solution. Importantly, the IRR equation cannot be solved analytically (i.e. in its general form) but only via iterations.
A critical shortcoming of the IRR method is that it is commonly misunderstood to convey the actual annual profitability of an investment. However, this is not the case because intermediate cash flows are almost never reinvested at the project's IRR; and, therefore, the actual rate of return (akin to the one that would have been yielded by stocks or bank deposits) is almost certainly going to be lower. Accordingly, a measure called Modified Internal Rate of Return (MIRR) is used, which has an assumed reinvestment rate, usually equal to the project's cost of capital.
Despite a strong academic preference for NPV, surveys indicate that executives prefer IRR over NPV. Apparently, managers find it intuitively more appealing to evaluate investments in terms of percentage rates of return than dollars of NPV.
Modified Internal Rate of Return (MIRR) is a financial measure used to determine the attractiveness of an investment. It is generally used as part of a capital budgeting process to rank various alternative choices. As the name implies, MIRR is a modification of the financial measure Internal Rate of Return (IRR).
There a few misconceptions about the IRR calculation. The major one is that IRR automatically assumes that all cash outflows from an investment are reinvested at the IRR rate. IRR is the "internal rate of return" with "internal" meaning each dollar in an investment. It makes no assumptions about what an investor does with money coming out of an investment. Whether the investor gives it away or puts it in a coffee can, the IRR stays the same.
It does however have a few drawbacks. First, IRR is not made to calculate negative cash flows after the initial investment. If an investment has an outflow of $1,000 in year three and an IRR of 30%, the $1,000 is discounted at 30% per year back to a present value. You would have to put this PV amount in an investment earning 30% per year for the IRR to reflect the true yield. Also, IRR ignores the reinvestment potential of positive cash flows. Since most capital investments will have intermediate positive cash flows, the firm will need to reinvest these cash flows, and the firm's cost of capital is a reasonable proxy for the return to be expected. Investments with large or early positive cash flows will tend to look far better with IRR than with MIRR for this reason.
To illustrate: a firm has investment options with returns that are generally moderate. An unusually attractive investment opportunity comes up with much higher return. The cash spun off from this latter investment will probably be reinvested at the moderate rate of return rather than in another unusually high-return investment. In this case, IRR will overstate the value of the investment, while MIRR will not.
Formula MIRR is calculated as follows:
where n = i + j
Gross Rent Multiplier
A Gross Rent Multiplier or GRM is much less accurate than a CAP Rate but a quick means of valuing investment property.
Calculating the GRM for sales comparables (recent sales)
Sales Price / Gross Annual Income = Gross Rent Multiplier (GRM)
The Property sold for $497,000 / $71,000 Annual Income = GRM of 7.00
Calculating the value of a property for sale:
Let us use this for an example; you are looking at comps for recently sold properties and found that the typical GRM averaged 7.00. Now you want to figure the value of the property you are looking to make an offer on. You know that its gross rental income is $71,000 annually.
GRM X Annual Gross Rental Income = Market Value
7.00 X $71,000 = $497,000
So now you have a basis for what a reasonable offer might be on that property.
Keeping in mind that you have not factored expenses into this equation.
Gross Rent Multiplier is the ratio of the price of a real estate investment to its annual rental income before expenses such as property taxes, insurance, and even utilities for vacation rental properties. Other expenses could include the cost of hiring a property management company. To sum up Gross Rent Multiplier, it is the number of years the property would take to pay for itself in gross received rent. For the investor, a higher GRM (perhaps over 20) is a poorer opportunity, whereas a lower one (perhaps under 15) is better.
The GRM is useful for comparing and selecting investment properties where depreciation effects, periodic costs (such as property taxes and insurance) and costs to the investor incurred by a potential renter (such as utilities and repairs) can be expected to be uniform across the properties (either as uniform values or uniform fractions of the gross rental income) or insignificant in comparison to gross rental income. As these costs are also often more difficult to predict than market rental return, the GRM serves as an alternative to a measure of net investment return where such a measure would be difficult to determine.
The common measure of rental real estate value based on net return rather than gross rental income is the Capitalization Rate or Cap Rate. In contrast to the GRM, the Cap Rate is not a multiplier but a rate of annual return. A similar multiplier to the GRM derived from net return would be the multiplicative inverse of the Cap Rate.
Turn-Key Properties LLC
22 years of real estate and property management experience serving Missouri and Kansas.