Rural Kansas City

Is all real estate in a slump??

2011-06-19T05:12:00.000-07:00

You may have seen the article about us that appeared in this mornings KC Star. It got me to thinking that a lot of buyers may not recognize that rural property, particularly land has actually turned out to be a good investment as we work our way through what has now become a multi year slump. I found this article from INVEST magazine that I thought I share with our readers.

At precisely twelve noon on September 16, 1893 a cannon’s boom unleashed the largest land rush America ever saw. Carried by all sorts of transportation - horses, wagons, trains, bicycles or on foot - an estimated 100,000 raced to claim plots of land in an area of land in northern Oklahoma Territory. There had been a number of previous land rushes in the Territory - but this was the big one.
Many would be disappointed. There were only 42,000 parcels of land available - far too few to satisfy the hopes of all those who raced for land that day. Additionally, many of the “Boomers” - those who had waited for the cannon’s boom before rushing into the land claim - found that a number of the choice plots had already been claimed by “Sooners” who had snuck into the land claim area before the race began. The impact of the land rush was immediate, transforming the land almost overnight.
Over 100 years later, we are in the midst of a second rush for land. When it is over it will go down as the greatest land rush in United States history far eclipsing the Oklahoma land rush of the 1890’s.
How will it be different? Baby Boomers, investors and institutional investment firms are preparing to buy over one-half of the useable land in the U.S. in the next ten years. Are you aware there is approximately 1.6 billion acres (Yes, billions – with a big B!) that can be bought and sold? The potential is for millions and millions of land deals in the next few years.

Just like the previous “land rush”, the demand for land it is going to transform who owns land in our country and what they are going to use it for.
In last month’s article, I wrote how Baby Boomers are buying land in all shapes, sizes and types. Let’s read what the media is saying who else is participating in this modern day rush for land:

Wall Street Journal
“Is it still possible to make money in real estate? With home prices continuing to plummet, many people have finally stopped seeing their family manse as a big bottomless bag of cash. But look beyond your front door, and you’ll find some alternative real-estate related opportunities that are holding up despite the current economic downturn including rural land. Rising food prices, demand for corn-based ethanol and a growing desire by many urbanites for a place in the country are making rural land more valuable.”

The New York Times
“The real estate market may have cooled, but investor demand may soon be heating up for at least one type of property: LAND. Some of the most attractive deals lately have come from land developers and home builders, who are divesting parcels in many parts of the country as they whittle down excess housing inventory. Even smaller landowners, facing their own financial strains, are selling off lots once meant for building.”
“The time is ripe to start looking; I haven’t seen this market in 20 years,” said Jaime Raskulinecz, a real estate investor from NJ, who wants to buy land in the hard-hit market of Cape Coral, FL. She found lots for sale on or near the water at about a third to half below their peak prices of two years ago. On a larger scale, H. Ray Alcorn Jr., an investor in VA, is picking up commercial and residential parcels after two years on the sidelines. Mostly using cash, he has bought more than 100 acres throughout Virginia this year, much of it at reduced prices, and he has options to buy more.”

www.Bloomberg.com
“…farmland is having its biggest revival in almost 30 years as demand for corn and soybeans from Asia and the ethanol industry drive commodity prices to record highs. From Iowa to South Dakota to Wyoming, gains in rural land prices have ranged from 78 percent to more than 200 percent, according to farmers and data from Farm Credit Services of America.” “TIAA-CREF, the largest U.S. manager of retirement funds, bought $340 million of farmland in seven states in December. George Washington University plans to earmark $100 million for agricultural investments during this year. “
“Farm values probably will rise at an annual rate of 6 percent to 10 percent in the next five years,” said Murray Wise, the CEO of Westchester Group Inc., manager of $550 million of global farm tracts. In comparison, the median U.S. home is forecast to gain 1.2 percent through 2010 and stay below the 2006 peak of $221,900, the Mortgage Bankers Association in Washington said.
“It’s just crazy out there right now,” said Mac Boyd, 65, a real estate broker in Arcola, IL, who has sold farms for more than three decades. “The land market has never been stronger.”
http://www.landflip.com/, the premier land website, recently conducted a poll asking “When are you likely to purchase land?” 73% responded said they plan to purchase land in the next 12 months!

What is creating such an interest in land?
Retiring Baby Boomers – In my previous article, I documented that many Boomers are nearing retirement. Here is a snapshot of this group:

10,000 Boomers will retire every 24 hours!
17 trillion dollars are going to flow out of retirement accounts over the next two decades into the hands of Boomers.
1 in 4 Boomers own more than one piece of real estate.
1/2 of Boomers own their home free and clear.
60% of Boomers plan to move to a rural setting.

Since 1 in 4 Baby Boomers own more than one property, the logical conclusion is they will allocate a portion of their investment portfolio and buy land in the near future.

Baby Boomers are buying land, but most unlikely to ever move on the property
Where are Boomers going to relocate when they retire? In a poll commissioned by the National Association of Realtors, 60% plan to move to a rural area upon retirement. The operative word is PLAN. Many are in the process of purchasing small and large tracts of land all around the country to fulfill their future dream. Chances are that they will never move on to the property. Nonetheless, everyday there are more and more Boomers entering into the land arena to buy their dream property – and they are ready to buy soon!

Stock market and the drive toward buying land
As in most economic cycles, there are times when the stock market has not performed to investor’s expectations. When the stock market is doing well there is no reason for investors to look elsewhere to secure a modest return on investment. But, as we know, the stock market is mired in uncertainty. Because of this, some investors look for other investment options such as hard assets. Both individual and institutional investors are looking to land as one safe haven to relocate part of their investment portfolio. This translates that billions of dollars will be moved into land over the next few years.
As an example, the demand for hard assets appeared in FL in 2004 and 2005. In 2003 and 2004 the overall stock market results were flat. Investors were unsatisfied with the returns and began to look for investments outside the stock market. Some turned to real estate, (i.e. condos, preconstruction projects, rehabs etc.) particularly a drive to buy land. At the time, I was associated with a real estate office in rural Florida that only brokered land. By early 2005, the office received contact from a new buyer every 15 minutes! They learned investors wanted to buy for two reasons: (1) for investment and; (2) to build on the property at retirement. 80% of the buyers bought site unseen and lived far away from the property.
The brokerage (as well as many other brokers in Florida) could not keep pace with the demand as there were more buyers than sellers. So, I and a few other investors went out to coax landowners to sell their property. In the end, this one office brokered 1000’s of land deals ranging from a .25 acre to 500 acres.
The demand for land is reoccurring again but this time it is happening nationwide! Also, there are brokers reporting around the country that they have more buyers than sellers. That is a great dilemma to have! If the stock market continues to be volatile, more and more investors are going to look to land to fulfill a part of their investment needs. Some are buying land like it is a stock and betting that it will increase in value over the next 5 to 10 years and beat stock market returns.

Don’t be left behind! Be a part of the next great land rush!
When the dust settled, many walked away from the Oklahoma land rush disappointed and empty handed. Don’t sit on the sidelines any further waiting for the next opportunity. You can say to your children that you were part of THE greatest land rush in US history! There simply isn’t a better time to profit from land!

In the next few years there will be millions and millions of land transactions. I specialize in finding sellers – and you can too. The marketplace needs investors like me to find affordable land for this new generation of buyer.

Some of you are saying, “Can I really buy and sell land?” Land is by far the simplest, easiest form of real estate on the planet. Don’t be intimidated because you have never done something like this before. The marketplace desperately needs more investors to step into this once-in-a-lifetime opportunity. Won’t you join me?

Buy land. They’ve stopped making it. - Mark Twain

So what are Exurbs, and can I see one?

2011-05-12T06:44:00.000-07:00

Never heard the term Exurbia before? Sunday May 16 Rural KC real estate is sponsoring a unique “Exurbs Open House” event at two locations. What are exurbs you ask? Merriam Webster defines them as “a residential area outside of a city and beyond suburbia”, Bill Gaughan a senior partner with Rural KC, says that exurbs are characterized by a country lifestyle that’s still within easy commuting distance of the city.

Gaughan himself lives in just such a development and thinks it is a great lifestyle that not too many people know is possible. Rural KC is hoping that having an open house at a couple of these developments today will introduce the Exurbia concept to some city residents who might not know it is both affordable and convenient. Exurbs are perfect for city residents who want to live in the country but didn’t think it was possible. So today open houses will be held at two outstanding developments that exemplify this concept, one on the Kansas side and one on the Missouri side.

Both of these developments will be open Sunday from 1 to 4. They will offer tours and additional information about the developments. At both developments the developers themselves will be on hand to ask any specific questions.

At Whispering Oaks Subdivision immediately south of Archie Missouri the emphasis is on affordable yet quiet living among towering timber. The building lots are 1.3 acres, all of the lots back up to a gentle creek and have huge mature trees on them. Roughly half of the home sites are completely encased inside the woods while the remaining building sites are half in and half out of the timber.

Whispering Oaks is perfect for those wanting to raise kids in the country who thought it was beyond their means. Whispering Oaks is also a great place for empty nesters wanting to dial back their lives to a more secluded quiet life, but didn’t want a huge lot to maintain. The beginning point for tours at Whispering Oaks will be a model home at the development.

Drew Parks who is the developer of Whispering Oaks is also a builder and offers a variety of potential homes designed to blend in well to this terrain and yet still be extremely affordable. Whispering Oaks can offer a new home on wooded secluded lots and still be under $175,000. Parks also welcomes buyers to bring their own builders as the reasonable restrictions protect all homeowners. Whispering Oaks can be found by taking Highway 71 to the Archie Exit, go straight through town west to Butcher Street. Then go South on Butcher Street to 355th, then right to the property on the left.

At the Crimson Ranch development just south of Hillsdale Lake near Paola Kansas the emphasis is on an active lifestyle. Crimson Ranch features lots ranging from 3 to 16 acres but the lots are just part of the story. All lots at Crimson Ranch are adjacent to over 24 acres of common ground. The common ground includes over 1 ½ miles of riding/hiking trails, three stocked ponds, great views, springs, and trails through the timber. Horses are welcome at Crimson Ranch. During the open house Crimson Ranch will feature Hay rides and fishing for the kids.

While the developers of Crimson Ranch (Dyers and Reynolds) aren’t builders they do live at Crimson Ranch and live there because it’s the kind of lifestyle they love. They say Crimson Ranch is perfect for the active family who loves the outdoor lifestyle. If hiking, riding, fishing, or taking advantage of Hillsdale lake only 3 miles away appeals to you, Crimson Ranch is perfect.

At Crimson Ranch you can bring your own builder as the reasonable restrictions protect home owners and the association maintains the common ground. To find Crimson Ranch from Olathe go south on Hwy 169 to K-68 then west to Old KC Road ( at the roundabout) then south to 287th W. then west approximately 4 miles to Montrose road on the right.

Rural KC a Real Estate Team specializing in the marketing of rural and country properties continues to bring creative marketing ideas to rural real estate. Rural KC has sponsored such unique events as seminars for buyers wanting to invest in cropland, developed a web site www.RuralKC.com, just for marketing country property and maintains a blog at the web site just for issues about rural real estate and all things county.

Rural KC specializes in country Homes, country homes sites, hunting property, farms, and ranches. Rural KC markets real estate and represents buyers in all parts of Missouri and Kansas. The Rural KC real estate team is affiliated with Realty Executives of Kansas City. They can be reached at 913-837-4665, or 816-899-2330. Their website is www.RuralKC.com and their email is info@RuralKC.com

The above article will appear in the KC Star Sunday May 16, 2011

Will listing your land with a land real estate agent make you more money?

2011-05-10T12:04:00.001-07:00

The time has come and you are ready to sell your land. You might wonder if listing with a real estate land agent really makes a difference. You can certainly go it alone but of those that do (about 85%) end up eventually listing the property for sale with an agent. It is generally said by most real estate folks that properties do not sell for two reasons either price or exposure. Let’s look at price.

The LandOwner newsletter recently reported that discrepancies as high of $1000 to $1500 per acre were being found when doing appraisals on land. Why such a difference in price?

We did an informal analysis of some land sales over the last few years. It showed that of all the land sales that we found that were sold directly from owner to owner – the sold price yielded was approximately 25% less than similar sales that had been listed with a land broker. Taking into account that most likely at least half of those were sales to family members and discounts can be expected in family exchanges that it is still a surprising number of sales that were substantially less than going market rates at the time. The lower priced properties maybe were not exposed to the market via a listing or auction.

So how could listing with a broker get you so much more money? First and foremost is market knowledge. Land agents and brokers work with land values every single day. We are reading land reports, real estate market reports, land analysis surveys, following farmland and commodity markets, plus following all the ins and outs of the real estate on top of all the land information. It can be overwhelming at times the amount of data and information that is spilling out daily even for those of us in the business. All of that information helps to price a property in the right range.

The land market is changing rapidly …. probably faster than any other time in recent history. Farmland prices are skyrocketing, recreational land sales seem stagnant and development land sales are nearly non-existent in most areas. However, each of those markets has changed almost overnight when local, national and international events cause the local price values to fluctuate. As an individual selling a single piece of property it can be challenging to find current land market information and know how to price the property. This might be why so many of the non-listed land sales are lower.

Another issue that comes up with pricing is the news cycle. Media stories tend to focus on one news breaking story when it comes to real estate sales. They want the WOW factor and they report the sensational facts of one abnormal sales price that usually that happens at an auction and then it goes through all the news outlets over and over again until most people think that is reality on property sales. Unfortunately, most of the time it is not reality or normal and sellers are faced with disappointment when they see the real market values and averages.

So how do you know what to do? Unless you are committed to spending an enormous amount of time following the markets (not just a few sales here and there) and spending at least several hours a day marketing your property then you might want to consider hiring a professional. Almost all land agents we know live, eat and breathe the land market just like we do and that is what you need to bring you the higher price for your property. Find a land specialist, list it, and then relax.

8 reasons to put your land in a conservation easement

2011-04-18T14:45:00.000-07:00

A conservation easement is a viable solution for landowners who want to protect their land from development. Simply put, a conservation easement is a restriction on the use of property owned by an individual, similar to a deed restriction. It is recorded in public records and generally is in perpetuity. Landowners who sell conservation easements can control the ownership of the property, while receiving money for the easement. The government receives assurance that valuable land will be protected from future development.

What are the specific benefits to the landowner? Below is a list of eight of the general benefits for considering a conservation easement:

• The landowner maintains control and ownership of the property.

• Each conservation easement is individually structured to meet the needs of the landowner, along with the conservation criteria, and can be structured broadly or specifically.

• The landowner keeps the land and receives payment for the appreciated value caused by development pressure.

• The landowner assures the property is protected for future generations

• The landowner continues to receive income from his/her land.

• The property may be sold and the restriction travels with the property.

• Future generations are assisted in the transfer of the land by favorable estate tax treatment.

• Landowners may gain income tax advantages.

Most landowners are interested in tax advantages when considering a conservation easement. Landowners may receive income tax advantages that include gifting, tax deferred exchanges, and gains used against the basis value. Tax advantages can also assist in the transfer of property from generation to generation and can lower estate taxes for heirs by maintaining the agricultural classification of the land.

A generational transfer may benefit a landowner by lowering the value of the property for estate tax purposes. This happens because after the rights to develop it are sold, the highest and best use of the land is usually agricultural.

Gifting is a using the conservation easement as a donation to the government or to a qualified conservation organization. Gifting is treated as a charitable contribution and results in lower Federal income tax.

A Tax-deferred Exchange is an option allowed by the IRS for landowners who owe capital gains taxes because of the sale of property. This defers paying the tax by purchasing another piece of property instead of paying the tax. Known by several terms, a tax-deferred exchange is often referred to as a Like-kind Exchange or a 1031 Exchange.

The IRS allows a tax exchange for owners who have a capital gain because of the sale of a conservation easement. Gains Used Against Basis includes basis as the amount you paid for the property, plus the value of any capital improvements, less any depreciation claimed. If you sell a conservation easement, the IRS will allow you to reduce your basis by the amount of the conservation easement, which may result in you not paying any capital gains taxes.

To take advantage of a Federal income tax deduction, a conservation easement must be perpetual and given to a specific division of the government or a qualified conservation organization. Annually, the division or organization monitors the property to assure that the easement is not being violated.

This article in part came from Land Flip

Is there any way to buy land other than cash or borrowing money?

2011-04-11T11:49:00.000-07:00

Those beginning the process of purchasing land usually have a general idea of how they plan to pay for the investment. However, I have seen many buyers change their method of funding because they became educated on an option that was previously unknown to them and offered them some distinct advantage. Some may simply not understand the process or what they can afford. Following is a brief explanation of the most commonly used methods to fund land transactions.
Cash – Most land transactions that I work with are cash transactions. This is not to say that I work with only the independently wealthy. Most people that pay cash for a property have recently sold some other type of investment and are simply moving that investment into a property that works better for them. Many investors prefer this method as it is the most hassle-free and gives the buyer a negotiating advantage—The general thought is that a cash offer is stronger and that because the terms of the offer are stronger, the investor can offer a lower price.

1031 Exchange – 1031 exchange, Like-kind exchange, Starker exchange, Tax-deferred exchange—all refer to a method of exchanging a property or properties for other similar properties without the realized capital gain being recognized as taxable by the IRS. This is only available to those who hold the property for a business purpose. In the past few years, this has become very popular with investors seeking to grow their investment portfolios without taking cash out. For example, if you sell a farm that you have operated in Texas, you can utilize a 1031 exchange to move that money into a timber property in Alabama. There are many special conditions that must be adhered to in order participate in a 1031 exchange. You should consult your attorney regarding a potential 1031 exchange prior to accepting an offer from someone to sell the property you will be selling in the exchange.

Home Equity – In most of the land deals that I work with, the buyer is purchasing a property that will not be, at least immediately, their primary residence. Most of these buyers also have significant equity in their current primary residence. A home equity loan on the buyer’s primary residence offers many advantages over a traditional land loan. First there are the tax benefits from using the interest on the loan on your income taxes. Also, when a buyer is using a home equity loan, that buyer can go through the loan process prior to making an offer. Since the buyer then knows how much money he or she has available for the purchase, they can make an offer as a cash offer, which strengthens the buyer’s position in negotiations. Many times you can get more favorable terms on a home equity loan than on traditional land loans as well. It also makes your investment in land more liquid since to sell it, you will not have to then pay off a mortgage on it- so if the right opportunity comes along, you can liquidate your investment and roll that money into whatever it is that you wanted…just like you had bought the property with cash. Most banks, credit unions, and mortgage brokers offer home equity loans.

Land Loans – Land loans are those loans that hold the land itself as collateral. Whereas many times you can buy a home with 5-10% down payment, most times you will need 15-30% of the purchase price as down payment to get a land loan. Land Loans typically have a slightly higher interest rate than you can get on a home equity loan or regular home mortgage, however, many institutions that specialize in land lending are becoming more competitive with the conventional home loan market. Local banks (local to the property) are a good source for land loans, as well as lending cooperatives like the Federal Land Bank, and the Farm Credit System. My experience with land loans is that you want to work with a lender that understands land and land issues. Most, not all, mortgage brokers and loan officers are not as experienced in land lending as are those that work for companies that specialize in that segment of the industry.

Owner Financing – Many times buyers and sellers find advantages in owner or seller financed transactions. This typically occurs by the buyer making a down payment to a seller on a property. The seller then conveys the property to the buyer, with the seller holding a mortgage on the property until the buyer pays the remainder of the amount due. Terms and conditions of owner-financed sales can vary greatly. In my experience, sellers usually want 15-20% down payment from the buyer and an interest rate that is slightly above what rates are in the conventional markets. Repayment terms can range from monthly payments over 30 years down to a single payments soon after the initial transaction. This must be worked out between the buyer and seller. It is important to note that not all sellers are willing or able to offer this option on a property. The buyer should be sure to perform the same due diligence that a lending institution would require to protect themselves from potential pitfalls in owner financed transactions. Owner financed sales are advantageous to some sellers because they can differ some of the income from the property and get a steady stream of income over time. Buyers benefit since most owner financed sales do not typically involve credit checks, origination fees, and the hassle of dealing with a lender.

Lease Purchase – Some properties are contracted for in a Lease/Purchase Option contract. In this type of arrangement, the buyer leases the property from the seller for an agreed upon timetable at the end of which the buyer can elect to buy the property or forfeit their money paid to the seller until that time. Sometimes these arrangements do not leave the buyer with an option to buy, but rather an obligation to buy at the end of the lease period. Typically, monies paid as rent and for the option are deducted from the purchase price, but this is not a requirement. In this type of arrangement, title to the property does not pass to the buyer until the end of the lease period, when the buyer exercises their option to purchase the property. Usually there is interest charged by the seller on the principal amount due during the lease period. It might be helpful to think of this as “Rent to own”. Again, not all sellers are willing or able to offer this arrangement. Also, it is important that the buyer performs sufficient due diligence in checking out the property, as well as the seller of the property, since the seller will retain title to the property during the lease period.

There are many other options for funding land transactions and are limited only by the creativity and the acceptance of the parties to the contract. Sometimes transactions are negotiated in broad strokes, sometimes deals worth hundreds of thousands of dollars hinge on something as small as who pays for inspecting the title to the property. One creative manner of funding a land transaction is through the use of your 401K funds or IRA funds…and you can do it without incurring Federal taxes for transferring the investment. I will examine that further in a later post.

The above article is courtesy of Landflip.

Are we at the top of the land market?

2011-03-31T08:48:00.000-07:00

I recently received an email from one our newsletter subscribers. It contained a link to an article in the Des Moines register about how land prices had gone up 24% in just one year in the state of Iowa. The writer was understandably concerned about whether we had hit the top of the market when it comes to land prices. I thought I'd share my response to him with you.

Thanks for sending that article from the Des Moines Register. It's always the conundrum in a time like this isn't it? Given that the article was written by an Iowa paper it reflects the situation as it exits in Iowa. I think there are a few other issues one has to consider when deciding whether or not to invest in farmland. If you'll indulge me I'm going to list them here as this is a common and important topic of conversation.

The first is the issue of whether or not it makes sense to borrow money to buy land at this time. To a degree this is no issue at all in the current run up of prices. Unlike in the late '70's and early '80s when farmland was being purchased by taking out mortgages on existing farms very little of this land is being bought by people going into debt. As the article points out farm lenders are working hard to find anyone wanting to get loans. The vast majority of these purchases are being done by investors and farmers who are buying with cash. So that means comparisons to the housing crash are meaningless. The housing collapse was due to unfettered, almost unregulated credit that put too many unqualified buyers in the market. Any agricultural lender will tell you that's not what is happening now. And that leads to the second point.

People feel this run up in land prices is due to the current high commodity prices. That is only a part of the issue. The bigger issue is people wanting to get out other investments that they fear are going to be made worthless by anticipated coming inflation. That's why people aren't borrowing to buy, they are liquidating other assets to buy "real" assets such as gold and real estate. I have found that people buying land are less interested in the yearly ROI from rental than they are from the anticipated appreciation, or at least the fact that they don't think an investment in land is going to be degraded as assets that are subject to inflation will be.

As one of the comments to this article put it:

It is not high corn prices that are driving land values, it is the deterioration of the value of the dollar which makes American agricultural products cheaper than any other place in the world. The driving down of the dollar, the deflation of the currency, and the financial condition of the United States has caused a rush into hard assets that hold value and will be here tomorrow when TEOTWAWKI arrives. It would be better to own a bottle of wine than hold a dollar bill earning one half percent interest in a bank. The goal right now is preservation of capital not return on investment and land, residential property, grain in bins, and "real" assets instead of paper is where one wants to be. Farmland has always been a conservative long term asset which held value, or at least never evaporated in hard times. The farm crises drove down land prices but it took the FED to raise interest rates to 17% to break the farmers and destroy land values, today interest rates are so low and the dollar depreciating so fast a rush into farmland is one of the best options. That is why land prices are rising, corn has nothing to do with it! If you bought land and own land then you are now being rewarded for accepting that risk. But . . . it is never real unless the asset is sold, it is only on paper which makes one feel good, but does not put money in the bank. The dollar is buying less and less, that is why there is a rush into real assets.

Next I think looking at Iowa is to be looking at the most extreme example of what is happening across the spectrum of agricultural land prices. For example if Iowa land at $8,000 acre can produce 280 bushels of corn, then by that measure Missouri land that can produce 200 bushel corn ought to be worth $5714 per acre. But you can still buy land like that in Missouri for $2500 per acre,although it's admittedly getting harder to do. So while there is risk in any investment, it seems to me that to buy land in MO or KS rather than Iowa carries with it a lot less risk and a good chance of strong upside. Frankly if I owned land in Iowa I'd sell it, and then come down here and triple my holdings by purchasing land in this area. Ok maybe I wouldn't really do that. Iowa land has provenn to hold it's value over time. But I do think that if someone is searching for appreciating land values there are some outstanding opportunities to do so in this area.

Finally I think there are some simple questions you can ask yourself that may clear up the question of whether or not this is a good investment for you.

Do you believe that there is any reason to think the demand for agricultural commodities is going to drop significantly in the future?
Do you think they are going to be producing any more land?
Do you have concerns about future inflation deteriorating non "real" assets?

After you answer those questions for yourself you may decide that it's not a good idea to buy land in Iowa, but that does not mean investing in farmland somewhere else is not in your best interests.

Thanks for letting me ramble on. I've been wanting to get these thoughts on paper and your email gave me the reason to do that. I apologize for being so lengthy.

As always if you have any questions or concerns feel free to contact us by phone at 913-837-4665, email at info@RuralKC.com, or just leave a comment after this article.

Ten Things You Won't Find In City Folks' Homes

2011-03-28T11:46:00.000-07:00

STRAIT FROM THE HORSE'S MOUTH.........

10. Sick Calf fecal samples more-or-less safely zip-locked in the referigerator.

9. A rifle tripod mounted on the front porch for possum/coon/coyote population control.

8. Binoculars hanging on the living room curtain rod so you can keep an eye on the bred heifers.

7. Livestock wound spray in the medicine cabinet.

6. Herbicide rate metric conversion chart on the refrigerator door.

5. Carburetor parts spread across the kitchen table.

4. Soil samples stacked on top the dryer in the mudroom.

3. Container full of bent nails, rusty bolts, pocket lint and unidentifiable items next to the washing machine.

2. Local Co-op company calendar on the kitchen wall.

1. Shivering baby calf in the bathtub.

Until next time..........HAPPY TRAILS!

10 tips for buying rural property

2011-03-24T09:19:00.000-07:00

With a tip of the hat to our friends at LandFlip we are repeating a nice article we found there on how to buy rural property.

If you are a buyer in today’s market, you may be feeling a bit overwhelmed by all of your options. You may be finding it difficult because there are so many listings that you think you need to look at prior to making a decision. Just when you think you have it narrowed down, there’s a whole new crop of listings. All of this leads to market paralysis, and leads you to missing that great deal you have been so adamant to find. You second-guessed, thought there may be one just a little bit better, and you failed to act…even though your instinct, research, and the agent you have been working with all told you it was a good deal. Back to square one all over again. Maybe buying land isn’t for you? Does this sound familiar? Here are 10 steps to help keep you same.

1. Stop worrying about what you are going to miss. You can’t have it all. Somebody else WILL get a better deal than you. I’m not saying throw your money at the first property you see, I’m telling you to focus on variables that you can have some control over. You cannot control the entire land market.

2. The market may go up from here, or may go down from here. A little research, and time investment will show you that there is currently much more room for land to go up than to go down. We are at or near the bottom of the market. Interest from REAL buyers has picked up, and I am beginning to see some competition for good properties. Land is generally a long-term investment. The ups and downs of the near-term market are merely blips on the radar screen of the entire land market. Sometimes the view from 50,000 feet is more accurate than the view from 10. Long-term trends will guide how your investment in land performs. Don’t get caught up in the day-to-day sensational media stories. Familiarize yourself with the TRUE market.

3. Narrow your focus, geographically, to the location that works best for you. Generally the nearer to your primary residence, the better. You will be more apt to visit the property and maintain it if it is nearby. There are enough properties on the market today for you to find something suitable and not drive 18 hours to get there. Closer is better, even if it costs a little more. Find the center point of a location that works best for you and narrow your focus to within 25 miles of that point. Figure out what your geographic focus should be and stick to it.

4. Once you have narrowed that focus, find a good agent who specializes in rural property. Find an agent that works with buyers of land and farms, someone with knowledge about those types of properties. Are they going to know about all of the properties in the area? Probably not. They will know about most, and should have enough market knowledge to advise you on a good deal when they see one. Communicate with that agent. Write down what your ideal property looks like from an aesthetic, geographic, size, use, and investment standpoint. Write down those things which you absolutely do not want. (If you make this list too long, you will scare off good agents). Once you know what that ideal is, be flexible. You probably will not find something that fits ALL of those criteria.

5. Budget. Figure out what your budget for the investment is. If you need to borrow money, go ahead and check into that. The agent will probably have some local sources they can send you to. Talk to these people, see what type of loan products they offer, see if you will qualify for those products. Make sure you can meet the expected down payment and closing cost requirements. Then narrow your search to properties that fit within the financial guidelines that your budget allows.

6. Notice that we are on step 6, and have not looked at a property yet. It will come. The exciting part will get here, I promise. Won’t it be better to look at properties that will work for you instead of spending every Saturday for a year looking for the perfect place? Now, on with step 6. Search the web for properties that fit your geographic criteria from step 3, your written down criteria from step 4, and your budget criteria from step 5. If you have done a good job on the previous steps, this one becomes much simpler. Instead of 500 potential properties, maybe you have it narrowed to 10-25 potential properties. Look at these individually, and toss the ones that have aspects that you really dislike.

7. Once you have that list down to 10 or fewer properties, send it to the agent you have chosen to work with. Get their opinion on the properties. They may have been to the properties and know a great deal about them, or maybe not. Just because they do not know a particular property does not make them a bad agent. Narrow your list once again down to 5 or 6 properties that best fit your goals. Print out the information, maps, directions…anything you can find on these properties. Organize these in some fashion that works for you. Leave room for notes.

8. It’s TIME! Call your agent and make an appointment. You are going to look at land! Dress Appropriately! Shorts and flip-flops are not appropriate attire for walking through fields and forests. If it’s hunting season, put on your orange cap. If it’s summer, then insect repellant is appropriate.. While you are there on the properties, take notes. It will be hard to remember those aspects you want to remember after looking at 5 or 6 properties. You will get the properties confused after looking at this many. Good notes will help keep that straight for you. If you do not like a property, promptly tell your agent that you have seen enough and are ready to move on. They WILL appreciate your honesty. Tell them why you do not like it and it might save you a trip to a similar place. Agents will like burning less $4.00/gallon gas…I promise! Take out the printed material on that listing that you do not like, crumple it into a tight ball, and throw it away. (Recycle if you are particularly green) You no longer need this.

9. If you found a property that works for you, it’s time to act. If you did not, don’t worry. Just wait about a month and repeat steps 6 through 8. Avoid getting caught up in the trap of endless analysis. Do enough due diligence to be prudent, but don’t miss the forest for the trees. This is a logical process to help you not become overwhelmed. For those that have found a property, ask the agent what the appropriate next steps are. Generally, you want to know what similar properties in the area have sold for recently. There may or may not be good information on this available. This is a market condition, not an agent’s ineptitude. This can help guide you in making an appropriate offer. Make an offer that is harmonious with your financial criteria set out in step 5. Make the offer with a little negotiation in mind. I seldom recommend sellers to have no negotiation room in a listing price, and I certainly never advise buyers to offer all that they can on an initial offer.

10. Once you have a “meeting of the minds”…meaning a valid purchase-sale agreement, it’s time to close. Your process will vary from location to location, by your financial criteria, and by the type property you are buying. A good agent can lead you through these steps. Generally it will take 30-60 days to get it done. If you are a cash buyer, it can be done more quickly.

Congratulations! You are now the owner of a rural property investment. A property that is a good fit for you, and probably a sound investment for your future. Reducing the process of finding and buying a property to a few logical steps will help you cut through all of the clutter in today’s market. Following the plan above will help you retain your sanity while you are finding that place in the country to relax on!

If we can help you with this process give us a call at 913-837-4665, or email us at info@RuralKC.com.

Our greatest successes are when we lose.

2011-03-13T17:00:00.000-07:00

Now I know the title of this blog makes little sense, but what I’m referring to is the fact that it is our responsibility to protect our buyers and make sure that they don’t buy a poor piece of property. In particular we are concerned when purchasing cropland for investment purposes. It’s pretty easy to look at the aerials, read the historical crop insurance record, and even view the land and be fooled by a piece of cropland.

So how do we protect our buyers from making that type of a mistake? Well let me give you a couple of examples.

Example one was a nice piece of bottom ground with good soils that lay very level, had a good track and had a good track record of productivity from crop insurance reports. But as it turns out had gone from being a good piece of land to a bad one because of frequent flooding. Land upstream that used to be pasture land had recently been turned into cropland and as a result the grass that used to filter rainwater and flow slowly into the creek now was channeled to drain off the cropland quickly. As a result the stream through the property which used to flood infrequently now flooded regularly making it a far less attractive piece of ground.

Example two was of a property that was approximately 40% but that looked as if another 40% could be turned from pasture back into cropland. In fact at one point in the past it had been cropland. But instead of being an attractive piece of ground it was determined that even though the soils were good they were too thin and the rock layer was less than two feet beneath the surface so that any erosion at all would make the land worthless except for pasture.

So how were we able to keep our clients from purchasing these properties and making a mistake? It’s because part of our process is to make sure either before the offer is made, or after using a contingency that we have a local farmer agree to rent the property at a fair price. If we can’t find a local renter then the contract is cancelled.

In both of the examples mentioned above it would have been very difficult for someone unfamiliar with the area to know about the problems of these properties. But of course the local farmers know all about these issues and we use them to filter any cropland properties to avoid these kinds of mistakes. So we don’t recommend a buyer purchasing any property where we haven’t already identified a local renter, or we make our contracts contingent on us finding a renter who will give his blessing to the property.

While we get a big kick out of making a sale, we get a bigger kick out of knowing that our clients can rely on us to help them avoid making a mistake. And in both cases we were able to help those same clients find other properties that are more than satisfactory for them. Those clients also referred other buyers to us so in fact “losing” a couple of sales actually led to us making several more as a result.

Email Info@RuralKC.com

Phone 913-837-4665

If you want live updates or want to know when we come across a particularly hot property you can follow us on twitter. http://twitter.com/#search?q=ruralkc

Top Ten Ways To Use Your Horse As A Weather Gauge

2011-03-10T12:20:00.000-08:00

STRAIGHT FROM THE HORSES MOUTH.........

10. You are walking across the pasture and run smack-dab into a Shetland pony........heavy fog in low-lying areas.

9. The horse swishes his tail and knocks you unconscious.......icy conditions.

8. A 14 hand horse appears to be about 16 hands tall..........snow with possible accumultion up to eight inches.

7. The ground looks wet but the hoofprints are dry...........light showers.

6. Your horse bites and kicks you.........well, this just really means that you are an idiot for buying him.

5. The horse looks hungry because his big round bale floated away...........possible flooding in some areas.

4. Your sorrell horse has turned roan.........snowfall with little or no accumulation.

3. He's slow to leave the hedgerow even though you are rattling the feed bucket........excessive heat warning.

2. The horse is hanging onto the fence with his teeth........bustery winds.

1. The front half of the horse is wet and the back half is dry.........isolated showers.

Until next time.........Happy Trails.

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What does the housing market hold?

2011-03-08T12:31:00.000-08:00

Below is a link to a Wall Street Journal article on the current state of affairs when it comes to the housing market. It would seem as if they feel the end, or at least the very bottom of this decline is very near. They point out how it now takes fewer months of income to buy a home than it has in many years. For example in Los Angeles it used to take 4.5 years worth of income to buy a home, and now you can buy it with just 26 months of income.

On the more somber side is the fact that they think prices could drop another 5% or so before the actual bottom is reached. Of course that will vary from market to market and here in the midwest we are not usually subject to the wild swings that are seen on both coasts.

Also we often hear from sellers in particular, "when will the market get back to normal?" Well it probably has gotten back to normal. Many people still expect or long for the days of double digit appreciation in the value of their homes. When will those days reappear? We don't think they'll reappear until all the bankers, appraisers, lenders, and real estate agents who have lived through the past three years have retired. Only then when a new generation of professionals who have not gone through this come on the market will you see the mistakes repeated that have led us to the current state of affairs.

So how do you invest your money now? Have we ever talked to you about cropland?

http://online.wsj.com/article/SB10001424052748703796504576168822497423738.html?mod=googlenews_wsj

Missouri Cropland sets a new record high

2011-03-07T12:59:00.000-08:00

Well we don’t have to take a backseat to Iowa anymore. I just talked to an eyewitness who was at an auction for 160 acres of Saline Co. Missouri farmland. It went for a record price of $10,700 per acre. Even more amazing to this witness was the fact that there were still 5 bidders at the $10,000 level. Now it’s true that the soils in that area are especially good, but I’m willing to bet that no one anticipated seeing Missouri farmland go within $3,000 per acre of a price like this.

We also are having difficulty keeping up with inventory changes. As the planting season is now just a few days away there are a lot of final decisions being made. That does not mean that you cannot still by cropland this year, or that it will stop coming on the market. But the number of new properties being listed will fall off and some accommodations may have to be made regarding the income and rentals from this years crop.

But it does not seem as if there is anything on the horizon that is going put a crimp in the escalating prices of cropland. It still looks to be an outstanding investment for both the short and long term.

Email Info@RuralKC.com
Phone 913-837-4665

If you want live updates when we come across a particularly hot property you can follow us on twitter. http://twitter.com/#search?q=ruralkc

Keeping up with an accelerating market

2011-02-25T14:43:00.000-08:00

One of the most common laments we hear from farmers these days goes like this, “I0 years ago I had the chance to buy that property and thought it was too high, I wish had that to do over again”. Now we aren’t trying to say that no one has ever regretted buying farm land. I’m sure there were some who did so in the late 1970’s, but even then if they held on to it they would have come out way ahead. Given that farmland has only gone down in price three times in the last 100 years it’s been one of the best investments of all time.

But right now we are living in unprecedented times. The velocity with which cropland is selling now is staggering. It’s not unusual that cropland moves quickly this time of year because everyone wants to get set right before planting season which is just around the corner. But when you add in the high commodity prices it makes for a very volatile industry.

If you are considering buying cropland you should be prepared to move quickly. We will help you identify the land and come up with potential renters for you. If you need to finance part of the land you should be making arrangements for it now. There is little likelihood that you can leisurely view several properties, then mull it over and make an offer in a few weeks. The good properties will be gone and only the less desirable ones will be left.

We are particularly fortunate in this part of the country because when you compare the price per acre for land in this area versus other cropland say in Iowa, there is a large gap between the productive value of the land and the price.

For example prime Iowa land is now going for over $9,000 per acre and it will produce 275 bushels of corn. Land down here may not produce 275 bushel corn, but an acre of ground south of Kansas City may produce 185 bushels of corn. If land were based solely on productive ability that ground compared to Iowa ground should sell for $6,000 per acre. But there is still a lot of land in this area available for under $3,000 per acre. We believe there is still opportunity to take advantage of that gap and realize some excellent appreciation in the next few years.

We have been frustrated several times in the last few days by hearing about a good property, and then trying to get the word out to any potential buyers. Sending out a weekly newsletter is not a quick enough notification in this market. So we have opened up a twitter account and if you want to know about hot properties just follow us on twitter. We will not be putting every new property on there, but if we think it's a particularly good one we will send out a tweet so you can react and contact us if you are interested. If you are not currently receiving our newsletter, let us know and we'll add you to our list.
If we can help you identify and purchase cropland, negotiate with renters, or be of help in any other way let us know.

Email Info@RuralKC.com

Phone 913-837-4665

Web site http://www.ruralkc.com/

Blog http://www.ruralkc.com/template24/nextpage.asp?mnu=174730

If you want live updates when we come across a particularly hot property you can follow us on twitter. http://twitter.com/#search?q=ruralkc

Top Ten Exercises To Become A Better Equistrian

2011-02-24T12:19:00.000-08:00

Straight from the horse's mouth.........................................................................

10. Drop a heavy steel object on your foot. Don't pick it up right away. Shout, "Get Off, Stupid! Get Off."

9. Leap out of a moving vehicle and practice "relaxing into the fall."

8. Learn to grab your checkbook out of your purse and write out a $200 check without even looking down.

7. Job long distances carrying a halter and a carrot. Go ahead and tell the neighbors what you are doing; they might as well know now.

6. Affix a pair of reins to a moving freight train and practice pulling to a halt. Smile as if you are having fun.

5. Hone your fibbing skills. "See, Hon, moving hay bales is sooooo fun!"

4. Practice dialing your chiropractor's number with both arms paralyzed to the shoulder and one foot anchoring the lead rope of a frisky horse.

3. Borrow the US Army's slogan: Be All That You Can Be: bitten, thrown, kicked, slimed, trampled, frozen........

2. Lie face down in a puddle of mud in your most expensive riding clothes and repeat to yourself, "This is a learning experience, this is a learning experience, this is......"

And........the number one exercise to become a better equestrian:

1. MARRY MONEY!!!!!

Thanks for reading our blog. Have a quality week. Happy Trails.

Will the housing market be back?

2011-02-22T16:36:00.000-08:00

Working in the agricultural part of our business has been exhilarating and exciting. But we also sell a lot of rural homes and rural home sites, and that has been a struggle. One of the comments we often get from our sellers is that, “I’ll wait it out until the market gets better”, or “I’ll wait until the market returns”. I often wonder how do they know that it will, or when it will get better?

Linked below is an article from Yahoo that makes me wonder why the optimism in the housing market? As this article makes clear last years bump was due almost totally to the tax incentives and when the market returned to normal it fell back into a slow slide. Out of the 20 largest cities only Washington and San Diego reported increased housing prices last year.

So if one needs to sell, the issue is about how to price your house and how to set your expectations. They should be based on reality, not blind hope. It may be that if you don’t have to sell at all then this might be a good time to sit tight if you have years at your disposal. If you do have to sell you might want to price yourself at the market’s current price level or even beat it.

If you think the market is going to decline you might want to compare your home against others like it on the market and make sure that yours is priced at the lower, if not lowest end of the market. If we are going to get there anyway you might as well be the one that sells your house rather than the one who keeps chasing the market down.

The good news of course is that there has not been a time like this to be a buyer in recent memory. So if you are going to sell and then buy again, take your lumps on the selling side and make up for it on the buying side. The toughest situation is for retirees who have planned on using their home equity as part of their retirement plan. That is going to be tough to replace.

It may also be time to look ahead and determine how you can make up for the recent losses most have suffered. If you are in a position to do so we recommend that you at least consider buying farmland. It's a lot more fun in that market.

http://finance.yahoo.com/news/Home-prices-fall-41-near-2009-cnnm-2016472877.html?x=0

Water Rights Missouri versus Kansas

2011-02-20T12:38:00.000-08:00

Many people don't know what a difference it makes when crossing the state line when it comes to water rights for cropland irrigation. Here for example is a summary of Missouri water rights law:

"Landowners have the right to make reasonable use of the waters upon, adjacent to, and beneath their property."

That's it. Notice that there no provision for permits, or applications, or really controls of any sort. In fact the only area of the state where I could find any effort at all to even address water rights is in SE Missouri. There is a SE Missouri Water conservation district where the bulk of cropland irrigation is done in Missouri and it says:

"The commission shall require all water users in the district, with irrigation wells 6 inches or lager in diameter to report the number, location,and annual water usage of the wells. The commission may establish annual fees to be paid by irrigation well owner not to exceed five dollars per well unless a higher fee is approved by qualified voters, and then not to exceed twenty-five dollars per well"

Note that in Missouri you do not have to get permission or file for a permit to drill a well. You are only required to report location and usage and the maximum cost for that is $25 per year.

Ok now let's turn to Kansas. I don't have time to give all the details so I've added a link that will allow you to read it:

http://www.ksda.gov/appropriation/content/240

But to put it in brief before you can drill a well, or pump from a stream, or build an irrigation lake you must:

File an application
Receive a permit
Complete Diversion works
Develop the water right
Have a field inspection
Receive and comment on a draft certificate of appropriation
Have the Certificate authorized
Report Annually on water usage

Now I don't do this to pick on Kansas or to say that they are unfair. It's just a matter of climate. Kansas, especially in the Western two thirds of the state does not receive enough rainfall to replace all water used for irrigation, while Missouri does. So Missouri does not face a potential situation where water usage will overwhelm the resource. Kansas has to strictly control water usage because so much of Kansas' water comes from aquifers that are being drained faster than they can be replenished.

I am also told that it is easier to obtain permits in eastern Kansas where waterfall is more prevalent, than in the western part of the state. But it is no where near as easy, even in eastern Kansas, as it is right across the state line in Missouri. I've been told anecdotal tales of the frustration of farmers in Eastern Kansas watch as water flows through their land and as soon as it crosses the state line they watch a Missouri farmer start pumping irrigation water out of the same stream the Kansas farmer can't touch.

In our next blog we'll talk about how this difference in water rules and regulations may affect investors and the decisions they make.

We struggle to keep up with inventory

2011-02-17T12:30:00.000-08:00

We try to work as hard as we can to keep up to date on cropland properties that are for sale. There are a lot of challenges in doing that because they don't all fit neatly into a nice MLS feed, and often the sellers don't want them advertised publicly because they want their business kept private. If you want an up to date, (ok as up to date as we can keep them) list of cropland properties that come on the market then just call or email us and we'll send you out the latest.

But in the meantime we have just become aware of three new listings that look to be great investment opportunities. If you want more details on any of these give us call at 816-899-2330, or email us at info@RuralKC.com

152 acres in Linn and Sullivan Co. Missouri - $325,000
This $325,000 property is 3 parcels along the Linn Sullivan county line. The price is attractive for the are and there is current cash rental agreement that is returning 4.87%

156 acres in Carroll Co. Missouri - $599,000
This is a productive piece of bottom ground along the Grand River, with 120 acres in cropland, and is returning $25,800 in cash rent. It also has the potential to return more with waterfowl hunting leases.

335 acres Grundy Co. Missouri - $775,000
This outstanding property has a cash rental of $42,000 returning a very nice 5.42% ROI.

What about properties that aren't on the market?

2011-02-15T13:55:00.000-08:00

A significant number of the cropland properties that we sell are not officially on the market. Sometimes the seller doesn't want people to know the property is for sale until it is officially sold. Sometimes they don't want signs on their property, or they just don’t want the world knowing their business. But if the right buyer were to come along they would sell the property. In the real estate world these are known as "hip pocket" listings.

We find about these types of listings in a couple of different ways. Sometimes the seller contacts us directly as they know we keep a list of potential cropland buyers and are hoping we can easily, quickly, and quietly, find them a buyer.

But the more common method and the one that gives us the best information about the ground is when potential tenant farmers contact us about a property they are, or would like to rent. They usually know not only the value of the property and its potential for production, but they can also usually commit to a rental rate that helps us know the true value of the property, making it easier to find a buyer.

If you are a tenant farmer and know of a property you’d like to rent, or are concerned that a change of ownership may keep you from working ground you have been renting, please call or email us and we’ll work with you to find the right buyer for that ground

By law we cannot advertise properties that we don’t have a listing agreement on, but we can privately let potential buyers know about the existence of these properties. The best way to be kept informed about these opportunities is to be a member of our newsletter list. If you aren’t already a member just send us an email at info@RuralKC.com, or call us at 913-837-4665 and we’ll be glad to put you on the list and keep you up to date on “hip pocket” as well as listed properties.

A little off topic today Valentines Day

2011-02-14T08:07:00.000-08:00

One of my favorite days of the year is Valentines Day. I get the biggest kick out of watching men at my local grocery store buying cards and flowers. There they/we/I stand gazing at these cards. We are so out of our element and have no idea what will work. We stare with glazed eyes at these cards with the same level of understanding as if you were trying to explain algebra to a cow.

Eventually we give up and make a choice, generally the more sappy the better. Now we have to get the flowers. What other than roses is safe to buy? I'm told all of these different flowers mean different things, but I have no idea what. I'm particulary concerned ever since an incident when I was 11 when I was trying to buy my mother a big spread of flowers for Mothers Day and unknowingly bought a Memorial Day wreath. I will never forget my mother trying to stifle a laugh as she looked into my sincere but clueless face. Oh well.

So I do what I normally do and get some roses. Better safe than sorry. Then I go and stand in line with my fellow clueless males. The checkout ladies are all grinning at our discomfort as gnarly guys with balding hair and overalls, stand in line with execs in suits and trench coats, as we all try to stave off domestic disaster by not forgetting this high risk day.

But the best is yet to come. Because by about 2 PM this store, all the flower stores, all the card shops, all the candy stores, and even Wal-mart are out of everything. Now what do you? My advice having been in this situation more than once is to consider gift cards, and lots of them. Now is the time to guarantee that romantic dinner, that trip to the movies, or that extravagent gift, because you have been outed.

I so look forward to the morning of the 15th because good or bad the highest risk time is over and life can return to normal.

Buy High..... Sell Low....????????

2011-02-12T07:02:00.000-08:00

Occasionally we come across an article that would seem to deserve further publicity. Such is the case with the article below we found by Paul Breden. Paul is a long time Land real estate Broker in the Carolina's:

On Monday, December 13th, an amusing investment article appeared online. Entitled “5 Experts: where to invest in 2011” – the “experts” cited in this Fortune article offered up a most obscure, milk-toast recipe for building wealth. Using generic phrases such as “global investors, emerging markets, labor costs, debt and the asset bubble, and asset-class synchronicity”, they seemed to be teaching an entry-level college economics course – rather than giving specifics about where to invest.

One comment went like this: “Gold is close to $1,400 per ounce. Is it a good buy at that price?” One of the five “experts” replied “We have no view on the future direction of the price of gold.” Really? Considering that gold hit a low just under $300 per ounce in 2001, and reached a high of $1,415 on December 13th, it would seem that buying gold today is akin to following the “Buy High – Sell Low” theory being pushed on TV by gold companies.

So… what else did the experts advise for 2011? Their comments included:

• There’s downside risk with fixed-income

• Look at asset-class synchronicity

• The whole world isn’t decoupling

• Look at debt and the asset bubble

• You can get totally lopsided in commodities and equities

• Is it a bubble or not a bubble in Treasuries?

• I take the group-hug approach…when investing in financials

• …eat more meat, chicken, beef and pork…creates more demand for grain

• All the flows we see are into bond funds

OK – you get the drift of this informative group professing to give you great investment advice for 2011. Now let’s take a look at the real world of dollars and cents – the one that’s called “Buy Low – Sell High!”

The so-called experts left out the most tangible, durable, risk-free, and always marketable asset – LAND. That’s right – plain old raw land. Think about it – you can buy it, sell it, bequeath it, give it away, borrow against it, play on it, improve it, live on it, earn income from it, or just watch it appreciate while you sleep. Best of all, it doesn’t call you in the middle of the night to say it’s disappeared or gone bankrupt.

So… how do you invest in land? First and foremost, you “buy low – sell high. In other words you make your money when you buy – not when you sell. Why? When you’re buying, there are always properties priced below fair market value. It’s your job to find them.

Because most raw land is owned by individuals, the reasons for selling are as diverse as their personalities. All are selling because of some change in their circumstances, i.e. they’re short of cash, they’re moving to another state, they can’t pay their mortgage, experiencing a divorce, or motivated by a death in the family. The price they ask is based on personal need, more than some fancy business formula. It’s up to you to determine which property offers the most value, yet is priced at the low end of the food chain.

Often, the ones priced lowest per acre are also the ones owned by sellers with the most pressing motivations. They’re also the owners with the most emotion attached to their motivation to sell. Thus, it’s best to make your offer to purchase through their agent, not directly with a “by owner”. Keep it businesslike, yet cordial – and leave emotion out of your buying equation.

As an aside, by making a low offer on a property whose seller is under pressure to move the property, you are not taking advantage of them – you are actually helping to solve their problem at the same time you are making a profitable purchase. The circumstances that caused them to sell and their price are solely theirs – you didn’t cause their circumstances. By purchasing their property, you actually relieved their pressure, making it a win-win transaction.

Finally, the reason for buying below fair market value is because it is rarely possible to sell for more than fair market. Buyers recognize properties priced above the market, and will walk away. On the other hand, there are always properties priced below the market, as cited above. By buying below the market, and later selling at “fair value” – a tidy profit is assured.

Oh – one more thing. Don’t get attached to the properties you buy. Remember, you’rebuying them to build wealth, not for “bragging rights” to show off to your family andfriends. The ugliest, most poorly located land parcels may be the most profitable.

Want to be financially independent? Get out and start digging for land!

Keeping up with available cropland

2011-02-04T04:57:00.000-08:00

One of the challenges we face in finding the right cropland for our buyers is that there is no central location to search for cropland and when there is you find that you don't always get the information you need to make a decision. For example you can find cropland from multiple areas such as:

Various aggregated advertising web sites on the internet
Local MLS's
Local brokers web sites
Newspaper ads
Word of mouth

But all these pose various problems in searching for good cropland.

First of all cropland moves so swiftly these days that the information is often out of date and you find that the property has already sold.
The information is often incomplete, such as what are the expected rental rates, or how much of the land is tillable.
There is usually no information about how the land is rated by the USDA
Most importantly it never tells a buyer about land that is not on the market, but that is still available for sale.

In trying to represent our buyers we run into these issues on a daily if not hourly basis and so in order to help us keep up to date, and to best provide information to our buyers we are attempting to keep a master sheet of available cropland for sale. There we try and track all the information a buyer would want to make a good decision. Such things as USDA aerials, soil information and ratings, slope of the land, and estimated rental rates, the potential for development for non agricultural uses, and most importantly information about land that the sellers don't want advertised but that is likely available for sale.

Now does this work perfectly, no because no matter how we try we can't keep up with every sale that occurs. But it's a better alternative that what we face everyday. And if one of our clients finds a property that is not on our list we can usually get all the important information within 24 hours.

If you would like to receive a list of the properties we are tracking or if you want us to do some information gathering on a property or area you are interested in just give us a call or email us and we'll get back in touch as quickly as possible. In Missouri call 816-899-2330, in Kansas 913-837-4665, or email us at info@RuralKC.com

Is there a season for buying cropland?

2011-02-03T08:21:00.000-08:00

While cropland is bought and sold all year long the greatest amount of activity and the easiest time to arrange contracts is between harvest and planting season. After the harvest, and before the next planting season, roughly November to March is when most farmers and sellers like to make their plans for the next season.

The closer we get to March the more commitments have already been made regarding rental contracts for the upcoming season, and both buyers and sellers have to start getting more involved in planning for Spring planting than for buying or selling any more land. They have to make decisions about buying new equipment, purchasing seed, fertilizers and chemicals. So the further in advance of the next planting season they can do that the better.

In both Kansas and Missouri verbal contracts legally extend for another year unless written confirmation is provided to change the terms of the agreement 30 days prior to March 1. So a new buyer of cropland may find themselves unable to negotiate a new rental agreement until after this years harvest is complete.

Buying cropland that is currently planted also means that the results of this years income will have to be negotiated as part of the purchase contract. If it's a cash rental how much of that will go to the new buyer? If it's a share crop contract how will the crop be split between the new buyer and the original seller? None of these are deal killers and those types of negotiations happen every day. But normally all of that is avoided if cropland changes hand between November and March.

If you haven't attended one of our seminars we still have one more scheduled next week in Lee's Summit on the 8th of February. We are also willing to provide a seminar at your convenience. If you have a group of investors, or even just want to discuss this with us individually we can schedule a time and location convenient for you.

If we can help you purchase cropland please let us know. If you've attended one of our seminars you know that we have an extensive list of available properties and the ability to find property that is both on the market and that is not currently advertised anywhere. If you are interestead in purchasing cropland We can assist you with negotiations and make sure that the price you pay, and the rent you receive is at least at current market levels if not better. Please call us at 816-899-2330 in Missouri, 913-837-4665 in Kansas or email us at info@RuralKC.com.

The weather wins

2011-02-01T11:17:00.000-08:00

We have had to reschedule our seminar for this evening in Lee's Summit for next Tuesday the 8th. If you haven't already done so please visit the web site we set up for this and register to attend. http://www.kclandseminar.com/

A seminar coming near you

2011-01-28T05:08:00.000-08:00

Given the widespread popularity of our seminar series we are looking at ways to expand it, so that more people can attend. Here are some ways you can attend one of our seminars:

1) Currently we have one more scheduled seminar on February 1, in Lee's Summit. At this point there are still some seats left so if you'd like to attend just click the link "KC land seminar" on the front page of our web site, or call us at 913-837-4665 to reserve your spot.

2) We are looking to add a seminar in the very near future north of the river. Please watch this spot or contact us by email if you'd like to attend a seminar in the northland and we'll get you the details as soon as they are set.

3) If you have any group, investment club, or just friends considering investing and you'd like us to make our presentation on investing in cropland, just contact us as we'll be glad to schedule a meeting that fits your schedule.

As always call us at 816-299-2330, 913-837-4665, or email us at info@RuralKC.com

Lee's Summit Land Seminar

2011-01-28T04:52:00.000-08:00

After two successful and well attended events in Leawood last night our first seminar was held in Lee's Summit. Like the first two sessions this one was very well attended and we had to bring in extra chairs to hold the over capacity crowd. At first we thought we were going to have a sound problem as a local band was setting up to practice in the space next to the Realty Executives Office. But they were very cordial when we asked them to delay their practice and so the meeting went off without a hitch.

As usual the best parts of the meeting often come during the question and answer session and in the informal meetings afterward. At both this and the second Leawood meeting we had potential tenant farmers in attendance. This gave investors thinking about purchasing land the opportunity to ask the farmers directly about issues relating to taking care of the land, how leases could be set up and other pertinent questions.

There are some questions that are repeatedly asked at each meeting and we are going to address some of them in subsequent posts since it seems they are on most investors minds. The first is what is to keep the farmer from overusing or abusing the ground that is rented to them. There are a couple of reasons why this reasonable concern can be avoided.

1) The reputation of the farmer. Farming is a very local business. Most farmers have grown up in the same area their entire lives. Any farmer abusing land will soon find it difficult to get anymore land to rent. Like in any other form of human endeavor farmers are competitive, and no one wants to be known as a poor farmer. For pretty soon that farmer would be unable to find any land to rent.

2) If a farmer would abuse the ground by over fertilizing it, for example it would be of less use to him in subsequent years. The farmer with a long term lease will want to improve, not abuse, the land. In the vast majority of cases where a farmer is given a long term lease the ground will wind up being better than it was when the farmer first started the lease. What a great difference between the experience most landlords have and what most landowners have when renting farm ground.

3) Avoid short term leases. A farmer who is only given a one year lease has no incentive to improve the ground. He will avoid certain farming practices that cost money but only pay off in the long run. Instead he will concentrate on doing what he can to boost the current years crop without caring about the long term affect on the ground. By comparison if he know he is going to be farming the ground for several years he will gladly make the investments of both time and material to improve the ground so as to get bigger yields in the future.

In summary the best way to avoid having a farmer abuse the land is to make sure you are renting to an experienced farmer and giving him a long term lease. That way both he and you have the same goal in mind which is to improve the ground for it's long term best use.

More Land Seminars are added

2011-01-24T08:50:00.000-08:00

Well our second seminar in our Leawood office was almost at capacity like our first one. At the current time we are actually over booked on our Lee's Summit seminar on the 27th. In anticipation of more people signing up we have added another seminar in Lee' Summit on Feb. 1st. If you are signed up for the Jan. 27th Lee's Summit seminar and for some reason would like to change to the 1st. just let us know by calling us at 913-837-4665, or email us at info@RuralKC.com

Land Seminars proving very popular

2011-01-20T10:08:00.000-08:00

After last nights snow we started ratcheting down our expectations for tonights seminar. We had to add this evenings seminar to our schedule after the first one filled up. We expected a lot of no shows but exactly the opposite has ocurred. We had people calling to make sure we were still having the seminar and as of the time I write this, which is just before noon we've already had 9 new attendees show up.

We will be close to filling up this add on seminar and that makes me curious about if we will need to add another seminar in Lee's Summit as the one scheduled on the 27th is already at capacity. If you would like to attend a seminar but find that they are filled give us a call at 913-837-4665 or email us at info@RuralKC.com and we'll set up a new seminar to accomodate you.

Our Land Seminars

2011-01-19T12:07:00.000-08:00

We held the first of three seminars on investing in cropland last night at our Leawood Kansas office. The response to these seminars has been overwhelming. So much so that we have had to schedule a second Leawood seminar on the 20th. Currently our Lee’s Summit seminar on the 27th is filled up. If we receive any more attendees we’ll have to schedule another one in Lee’s Summit as well.

The intent of these seminars was discussed in an article about our team that appeared in the KC Star on January 9th and again in the Business section on January 11th. Below is that article.

“The great Lebo Land Rush” is what one of Bill Gaughan’s clients from Florida called his recent efforts to buy some cropland in Coffey County Kansas. Gaughan, founding partner of Rural KC Real Estate a real estate team specializing in rural property, said that cropland sales by investors continue to soar and finding parcels that meet investor needs can be a real challenge. “The investor that made the humorous remark about the Lebo land rush had been frustrated as each time he identified a property it quickly sold. We did finally find him a property he liked and it was the second parcel he has purchased this year without leaving Florida to actually see it.”

Investors have turned to cropland in great numbers especially since the start of the recession in 2008. Cropland when compared with other potential investments has shown to be a wise choice for the informed investor. Cropland Investment LLC had this to say about investing in Cropland, “Over the last 15 years cropland returns have exceeded stock and bond returns with up to 60% less risk. In general cropland has been a lower risk/higher return asset and a strong inflation hedge. It is like buying gold that pays a dividend.”

Gaughan points out that there are two returns when investing in cropland. The first is the appreciation in value over time of cropland and the second is the return you get from renting out the cropland to farmers. According to the USDA Economic Research Service, “Farmland is unlike any other investment as it can weather economic storms, yield consistent returns, act as hedge against inflation, and pay investors for holding it.

U.S. farmland values have increased roughly 6.7% over the last 20 years and 4.5% over the last 100 years. U.S. farmland has also paid its owners cash rents of roughly 5.8% of its value since 1987. When combined, farmland has returned to investors 12.5% per year over the past 20 years. “Since cropland is a finite resource that cannot be increased it has held its value remarkably well over time. According to the USDA Economic Research Service In the past 100 years there have only been 3 occasions when cropland has temporarily dropped in value, the Great Depression, the inflation boom and boycott of grain sales to the Russians in the early 80’s, and the first year of the current recession.

But to most investors, purchasing cropland raises a lot of unanswered questions. How do I know I am buying good land? How do I find and negotiate with renters? How do I know I’m not paying too much, or not getting enough return on rental income? Can I be sure my land will not be damaged? What are the risks in cropland investing? Because of that Rural KC real estate is sponsoring a couple of seminars on investing in cropland. Brad Gaughan sales agent refers to it as “Cropland Investing 101”.

“We wanted to find a way to allow investors to get an overview of not only the opportunity, but also the process in cropland investing. So we along with Frontier Farm Credit are holding seminars in Leawood on January 18th and in Lee’s Summit on January 27th. We will be making some brief high level presentations on cropland investing, but more importantly will be opening up the seminar for questions, and will be willing to meet with investors privately. We have also invited some farmers interested in renting from investors to attend so that investors can talk directly with them."

Jarred Sterling, Financial Services Officer with Frontier Farm Credit, agrees with the idea of cropland as a solid investment. "We have seen throughout our territory a consistent, strong demand for highly productive, good quality farmland. It only makes sense as a lender to provide financing for properties that can generate a solid rate of return.” To allay concerns of potential investors, Sterling also added that “there is no shortage of loan funds with Frontier Farm Credit, including long-term fixed rate financing.”

Just as cropland investing is different from most investment opportunities so too is purchasing cropland different from a normal real estate transaction. There are three, not two interested parties, and the renter is the one who is more important to the investor than the seller. “The investor will have a relationship of a few weeks with the seller, but may work with the renter for several years”, said Danicia Duncan Sr. partner in Rural KC Real Estate. “It’s our job to assist the investor in not only purchasing the right land, but also to forge the best possible relationship with potential renters.”

Since seating is limited investors are asked to register to attend, investors should visit www.KCLandSeminar.com, call Rural KC at 913-837-4665, or email info@RuralKC.com. Rural KC’s web site is www.RuralKC.com. Frontier Farm Credit can be reached at 785-594-2900 or email jarred.sterling@frontierfarmcredit.com

A little off topic today my son got married

2010-04-26T06:43:00.000-07:00

There are few things that make you sit back and take a look at your life more than life changing events such as wedding. My youngest son, who is also a member of our real estate team took on a bride this weekend. They are starting out just great. They are being conservative in how they live and they are making good plans for their future. I am proud of both of them. And I'm really tired. It was 4 days of family, ceremonies, and more, much more than I normally take in, and a lot later than I normally stay up.

I was reminded of an uncle of mine. He is 85 years old and his wife, my aunt, died about a year ago of alzheimers. As so often happens her last years were not good. My uncle kept her at home and long after she knew who he was, or where she was he took care of her. Eventually he wound of caring for her as if she were an infant. He had to spoon feed her, take her to the restoom, bath her, change her and more. It was an agonizing ordeal for anyone, but especially for a man already in his 80's.

His children went to him to convince him that it would be ok to put her in a care home. He could still see her everyday and the burden would be lessened for him. Plus he could afford it. He looked at them with a quizzical look on his face and simply said, "I made a promise".

I thought of that as I watched my son and his bride exchange their vows. Those vows are often recited and repeated with not enough undestanging put into them. But what's really happening is that two people are guaranteeing one another that no matter what happens in life there is one thing, and one person they can always count on no matter what.

Experience and observation have shown that promise to be hard to keep. But somehow like my other married kids, and my bride of almost 40 years has shown it's not impossible to keep that promse. I wish them well as they start their journey together.

Protect yourself against ticks.

2010-04-19T06:57:00.001-07:00

I wanted to remind all of you that this great spring time weather does bring with it the reappearance of ticks. As someone who spends a lot of time in the timber showing property this used to be a really big problem for me. No matter how much Deet, or OFF, or 6-12 I used I almost always had one or more ticks on me when I got home.

Now I don't care how much Irish charm I may have, my bride of almost 40 years is not impressed with a man carrying parasites. She is almost as offended by a man who smells like insect repellent. And even if I wasn't using insect repellent that day I would still smell like it because of what the inside of my truck smelled like.

But a few years ago I found the answer to my problem. There are newer products on the market that are based on a chemical called permethrin. Permethrin is a natural ingredient discovered by the US military that repels insects with no odor. But the biggest difference is that you first put it on your clothes, before you ever go out in the field.

The process is that you select some clothes to be your "timber walking" clothes and you spray them with the product. You allow it to dry and now your clothes will repel insects for up to six weeks even though the clothes have gone through the wash. So I have a couple pair of jeans, all of my white sox, and several white shirts that I wear whenever I know I am going in the timber. I wear white shirts in the timber so I can easily spot any ticks that might get on me.

As you might imagine I felt a little dubious when I first tried this product but the results were amazing and have continued to stay the same. It's simple, when I get home I have no ticks on me. None at all. And I don't smell like insect repellent. There are a couple of tricks to remember. First of all don't put it on your skin. This is meant to be used on your clothes. Also I found that sometimes ticks would be in my truck so I took this product and sprayed it on my seats in my truck and that problem has gone away.

You can find permethrin based products at places like Bass Pro, Cabela's and other similar stores. They come under several trade names "Sawyers" is one that I use. Just always be sure to read the instructions carefully. I think you'll be glad you did.

Now you might think that all of this made it easier for me to get closer to my bride. Well not actually but I am slowly, bit by bit, eliminating excuses. It's just a matter of time I'm sure.

Getting Your Trailer Ready For Hauling

2010-04-18T10:08:00.000-07:00

Horse trailers need a spring once-over as well, even if they are stored inside. Dirt, leaves, mouse nests, old hay and debris find their way into trailers like stall shavings to a fleece jacket. For wood floor trailers, remove rubber mats and inspect the floor boards for water damage caused by melting snow or leaks.

Check exposed electrical wires for rodent damage, as they seem to find the plastic coating tasty. It's worth the time and hassle of backing your truck close enought to the trailer to test all electric lights and signals before you actually hook up for your first road trip.

While you're at it, check the inflation of your truck and trailer tires to enhance safety and fuel economy. They have a way of mysteriously flattening just as you are ready to load the first horse, especially if you have friends waiting nearby who are anxious to get on the road.

In addition, while not mechanically imperative, your trailer will be more pleasing to everyone's ears (including your horses) if you oil any old or rusty hinges. Springs is full of moisture, so anything that can become squeaky, does. Various products such as WD40, lithium grease and silicone are available as sprays, and are designed to loosen and lubricate noisy metal connections.

Because spring weather can be ever changing - cold and rainy one day, warm and sunny the next - many inclement days can be used productively by cleaning and organizing the equipment, tack, supplies and tools in your barn. Similar to re-booting a computer, you can begin the new riding season with a fresh slate.

Until next time...............Happy Trails.

URGENT!!!!!! PLEASE READ.

2010-04-02T08:46:00.000-07:00

PRESS RELEASE: PLEASE TAKE CAUTION.

THIS IS A PUBLIC SERVICE ANNOUNCEMENT:

In a press release today, the National Institute of Health has announced the discovery of a potentially dangerous substance in the hair of horses. This substance, called "Amobacter Equuii" has been linked with the following symptoms in females:

*Reluctance to cook, clean or do any housework
*Reluctance to wear make-up, nice clothes or heels
*Reluctance to spend money on home or car repairs until after "Baby has new shoes, pad, blanket, tack, grain, hay and supplements"
"Amobacter Equuii" usuall results in long hours away from home and exhaustion which may lead to a loss of physical contact with other humans (especially husbands).
"Amobacter Equuii" is thought to be addictive, driving the need for additional sources - this may lead to a "herd mentality" or, like the ptato chip commercial, "you can't have just one".

BEWARE! If you come in contact with a femal human infected by this substance, be prepared to talk about horses for hours.

SURGEON GENERAL'S WARNING: Horses are expensive, addictive and may impair the ability to use common sense.

"Amobacter Equuii" is usually found in females but can occasionally infect males as well.

Until next time.......Happy Trails.

Don't Miss The Tax Credit.

2010-03-26T07:49:00.000-07:00

New Tax Credits Benefit Both First Time Buyers and Current Homeowners.

First time homeowners aren't the only ones who can claim a tax credit when they purchase a new home. Now current homeowners can take advantage of the tax break too, if they qualify.

Buyers now have until June 30, 2010, to close on their purchase and will need to submit documentation with their tax returns to claim the credit. Here are the details:

FIRST TIME BUYERS

Credit: Equal to 10 percent of the home's purchase price, up to $8,000.

Who Qualifies:
Those who haven't owned property in the last three years
Those with income up to $225,000 for couples and $125,000 for individuals
Must be at least 18 years of age
Purchase price must be $800,000 or less
Deadlines:
Have until April 30, 2010, to enter into contract for a home purchase
Have until June 30, 2010, to close on the purchase

CURRENT HOMEOWNERS

Credit: Equal to 10 percent of the home's purchase price, up to $6,500

Who Qualifies:
Those who have owned and lived in their principal residence for at least five consecutive years during the past 8 years.
Those with income up to $225,000 for couples and $125,000 for individuals
Must be at least 18 years of age
Purchase price must be $800,000 or less

Deadlines:
Have until April 30, 2010, to enter into contract for a home purchase
Have until June 30, 2010, to close on the purchase

In addition, buyers have another year to take advantage of the higher loan limit for mortgages backed by the Federal House Administration, Fannie Mae or Freddie Mac-set at 125percent of local median home sales prices, up to a maximum of $729,750 in high-cost housing markets. The limit in normal markets will remain $271,050 for FHA and $417,000 for Fannie Mae and Freddie Mac.

What this all means is that many more buyers qualify for a tax credit. So what are you waiting for? If you are even remotely considering buying a home, now is the time to do it.

Time For Spring Cleanup!

2010-03-21T13:10:00.000-07:00

This is the first of a five part blog on spring cleanup for horse owners.

Even before the snow melts and the mud dries, horse owners are happily gearing up for warmer weather and solid ground, and a itching to be free of bulky clothes and thick gloves. Now is the time to organize the mess we've made of our barns during the off-season and begin the tasks that signal spring is about to be sprung.

Tackling the Barn

Clean your heated buckets thoroughly. Roll up the safety cords and secure them to the handle and store upside down. I use Clorox Clean Up on my buckets and then rinse.

Remove the stock tank heater. Soak the heating element in white vinegar or lime and rust remover to remove the calcium build up. Store the tank heater with the heated buckets.

Invest in a few plastic "cord holders" for all of your extension cords.

Wash your barn windows. Not only will your horses appreciate the better view, but you won't have to peer through a dirt filter to keep an eye on them.

Eliminate the cobwebs that "grew" over the winter. Even though it is comical to see them on your horses ears, they are a fire hazard.

Next week I will be discussing trailer cleanup. Until then.......HAPPY TRAILS!

Why use a Real Estate Agent to sell vacant land?

2009-09-23T07:08:00.000-07:00

Why in the world would I pay you a commission to help me sell my land?” This is a fair question for a landowner to ask. Let’s consider a few points, from a land agent’s perspective, on why an agent can be worth the money. I will grant that there are many savvy property owners that buy, sell, and trade land often. This type of owner loves to dicker and receives a thrill from each transaction. He may or may not need an agent’s help as he has done a dozen or more deals on his own. The majority of landowners sell their land once in a lifetime, and having an experiecend adviser when navigating these murky waters can be quite helpful. Consider several key ways an agent earns their commission.

1. Pricing your property accurately in the current market. An experienced agent will have the pulse of the current market in the area. They know the comparable sales history, and have a feel for what buyers are looking for and willing to pay. In the current market, I have seen buyers be sensitive within $100 to $200 an acre, so getting the right price is crucial to attracting buyer interest.

2. Marketing the property in media that buyers use. Placing an ad in the local newspaper may garner some interest, but one recent statistic says that over 80% of land buyers search for property online before going to look at land. As a landowner, can you afford to pay the monthly fees to advertise your one listing on land sites, and which ones generate the best activity? A good agent will give your land exposure to buyers in many different forms.

3. Answering phone calls and showing the property. Are you willing to field the phone calls of every person that wants to cut off the front 1 acre of your 120 acre tract? How many times do you have to give up a Saturday or take off work, only to be stood up by someone before that gets old?

4. Negotiating and writing the contract. The realtor’s job really begins once the contract is written and the negotiations begin. Going back and forth with tact and integrity can be taxing on even the most seasoned agent. Navigating emotions and potential hiccups is essential if the deal is to be transacted. Many owners appreciate not having to feel the heat of negotiations and can let attachment to the property or other emotions cloud the business transaction.

5. Professional networks. This past week I had to have a survey performed on a parcel we have under contract. I got 5 quotes from different companies before we were able to select the best price and the fastest service. How much time do you want to devote to getting quotes from surveyors? You need an agent with a network of foresters, surveyors, closing attorneys, builders, home inspectors, appraisers, lenders, bull dozier operators, bushhog operators, and a host of other contacts that service landowners. When you select a good agent, you not only get her, you get her whole network at your disposal. Keeping all of these people motivated and on track so you can meet your closing date requres a great deal of effort and attention on the part of the agent.

6. Accuracy at closing. Do you know how to read a HUD 1 Settlement Form and make sure that all of the numbers add up? This can lead to costly mistakes or even the loss of a deal in a worst-case scenario. These forms can appear to be written in a different language to the uninitiated. The agent will contact you at least 24 hours ahead of the closing to go over the HUD 1 and also provide you for instructions on what you will need to bring or be prepared for at the closing table.

These are a few of the ways land agents earn their money. Generally a good agent will help you make or retain more money than their commission. If you are on the fence about whether to strike out on your own or to use an agent, give them a call and become more informed. Ask the agent why in the world you should pay them a commission and see what they say. If you’re in Kansas or Missouri and are considering selling, we would love a chance to earn your business.

Gates

2009-07-25T09:27:00.000-07:00

Gate Design. Gates should have the
same strength and safety as the fence.
Gates can be bought or built in as
many styles as fence but do not have
to be the same style as the fence. The
most common and recommended
materials are wood and metal tubes.
Easy-to-assemble kits for wooden
gates with all the hardware, including
fasteners, braces, hinges, and latches,
can be bought from farm, lumber, or
hardware stores. Horse-safe tubular
pipe steel gates (often 13⁄8-inch outer
diameter pipes) have smooth corners
and securely welded cross pipes to
minimize sharp-edged places for cuts
and snags. By contrast, channelsteel
or aluminum stock livestock gates are
not recommended for horse use due
to their less-sturdy construction and
numerous sharp edges.
Avoid gates with diagonal cross
bracing. Although this strengthens
the gate, the narrow angles can trap
legs, feet, and possibly heads. Cablesupported
gates offer a similar hazard
to horses congregating around the
gate. If gate supports are needed,
a wooden block called a short post
can be placed under the free hanging
end of the gate to help support
its weight and extend hardware life.
The use of a cattle guard (rails set
over a ditch) instead of a gate is not
recommended since horses do not
consistently respect them. Horses
have been known to jump them or
try to walk over them, which results
in tangled and broken legs.
Gates should be as tall as the fence
to discourage horses from reaching
over or attempting to jump over the
gate. Gates can be up to 16-feet wide,
with a minimum of 12 feet to allow
easy passage of vehicles and tractors.
Horse and handler gates should be
no less than 4-feet wide, with 5 feet
preferred. Human-only passages are
useful for chore time efficiency.
Fencing near gates needs to withstand
the pressures of horses congregating
around the gate, which means
it needs to be sturdy, highly visible,
and safe from trapping horse feet
and heads. Some paddock gates are
positioned to swing into the pressure
of the horse to prevent horses from
pushing the gate open and breaking
latches. On the other hand, gates that
are capable of swinging both into and
out of the enclosure are helpful when
moving horses. Additional latches are
recommended to secure the gate in
an open position, fully swung against
the fence, not projecting into the
enclosure.
Gates are hung to swing freely
and not sag over time. The post
holding the swinging gate maintains
this free-swinging action, necessitating
a deeply set post with a larger
diameter than fenceline posts. Gate
hardware must withstand the challenges
of leaning horses and years
of use. A person should be able to
unlock, swing open, shut, and lock a
properly designed gate with only one
hand so that the other hand is free to
lead a horse or carry a bucket, for
example.

Until next time......Happy Trails.

Are we at the bottom of the market?

2009-07-13T21:23:00.000-07:00

We are a nation obsessed with looking for, hoping for and predicting The Bottom of this real-estate market. In our spare time, some may also root for — in both senses — bottoms in stocks, commodities and uncommon viruses.

Why do we peer down so hard? A bottom means things won’t get any worse. But how long the worst lasts is unknowable.

Many of us believe, even though we don’t say so, that once we’re on the bottom, things, eventually, will scoot up to where they were a couple of years ago. Or put simply: A house worth $250,000 will once again sell for $500,000 after 15 days on the market.

This is a ruinous hope. The only way to get back there quickly is to do it the way we got there in the first place. The factors that “steroided” property values after 2000 caused the tumble that we are now riding down.

The real-estate frolic was not, shall we say, sustainable, because it was the product of fraudulent appraisals, unscrupulous lenders, greed-driven speculators, individual home buyers who chose not to add or subtract, gamblers and crooks masquerading as risk managers, brokers and agents who made hay while the sun shone, commentators who blew hot air into the bubble, government regulators who did not regulate and politicians who did not want to rock a ship of self-interested fools. (If I missed somebody, it was not intentional.)

If the same players are allowed to start playing the game the old way, we will have wasted the billions in public bailouts and set ourselves up for an even bigger wreck.

We will know when real estate has bottomed in hindsight. No one can predict it in advance since many “other shoes” are out there that may or may not drop.

Recent surveys of Realtors by HomeGain and consumers by Zillow, as reported in Inman News (“Realtors optimistic about price bottom,” May 18, 2009) as well as a member survey from the National Home Builders Association (“Builder confidence continues to rise in May,” May 18, 2009) suggest a small increase in confidence in each of the three groups. Hope, of course, doesn’t hurt.

Confidence breeds confidence, which is the trampoline for any bounce. But expressing survey confidence in the future while the present is still in a slide can be rooted as much in desperation as in the first glimmers of a genuine turnaround.

All real estate is local. A bottom here may hit long before a bottom there. One can last six months, the other five years. The 50 percent asking-price reductions now seen in some parts of California, Nevada and Florida may still reflect inflated seller expectations, while 20 percent off in the northern Shenandoah Valley may be as low as it’s going to go.

When market indicators finally suggest that we had hit bottom a few months earlier, the blessed event will reflect national averages for existing home sales, new house starts, price, inventory and foreclosures. Those numbers will have national relevance, but their effect on individuals will vary. Some sellers will give up, either by bottoming their price or being foreclosed. Others will tough it out in expectation of the upturn.

The bell tolling the national bottom may be barely heard in local real-estate markets that don’t track the national average, particularly those that are smaller, less urban/suburban, more specialized and less punched up by subprime loans and foreclosures.

Rural property asking prices (and presumably values and selling prices), taken as a whole, have held up better than metropolitan residential values. But each seller, even in the strongest local market, has to be given a written offer to test his taste for a sale. Buyers don’t know what a seller will take unless they ask through an offer.

The individual seller is always the judge of his own bottom—and that’s the only one that counts for both buyer and seller. Assume that if a property is for sale in a market as weak as this, the seller wants to sell. Offers test how much a seller needs to sell.

My advice to sellers: Postpone selling if you can. Wait, if you’re able, until you see clear, modest upward trends. Then move…and don’t be greedy.

If you must sell right now, ask what you think your property is worth under a cold, hard light, but be prepared to move down as fast as you have to. Sell “as is.” Be transparent about your need to sell and don’t send mixed signals. You’ll find out the current market value of your property quickly.

My advice to buyers: Figure out what a particular property is worth to you right now given its assets and negatives, weighed against your financial resources and plans. Forget about timing the market and buying at the bottom. Come up with an offer that makes sense to you, regardless of asking price, comparables, appraisals, competitive market analyses and the opinion of your wife’s third cousin who operates a taxi in Manhattan and is widely reported to have once driven Suze Orman to a matinee.

Bottoming out will require adjusting the expectations of have-to-sell-now sellers in most real-estate markets. This will bring more pain. They will have to forget the selling prices of the recent past and lower their expectations of the anticipated appreciation rate that recovery will bring. Some comfort may be found in understanding that future appreciation rates will not be juiced-up once again by the financial lemons on which we have all soured.

A 3-to-5 percent annual gain works for all. Ten percent or more will ultimately penalize everyone again.

It’s the bottoming of expectations — seller by seller, market by market — that will bring us up and out.

Fence Posts

2009-07-09T18:39:00.000-07:00

The fence post is the foundation of
the fence, so its importance cannot
be overemphasized. The common element
in virtually all successful horse
fences is a wooden post. Setting posts
represents the hardest work and the
most time-consuming part of fence
building and is absolutely the most
critical to the long-term success of
the fence.

Driven posts are more rigid and
therefore recommended over handset
posts or those set in predrilled
holes. Driven posts are pounded into
the ground through a combination
of weight and impact by specialized
equipment. The principle behind
driven posts that makes them so
secure is that the displaced soil is
highly compacted around the post,
resisting post movement. Even for
do-it-yourself projects, you should
contract the job of driving posts. Postdriver
equipment is nearly impossible
to rent due to liability concerns.
Under some dry, hard, or rocky soil
conditions, a small-bore hole will be
necessary for driven posts.

Wood is recommended for all
horse fence posts. The best buy is a
pressure-treated post from a reputable
dealer. The preservative must be
properly applied to be fully effective.
Initially, treated posts are more expensive
than untreated ones, but they
last four times as long as untreated
ones. Depending on soil conditions
and preservative treatment quality,
a pressure-treated post can last 10 to
25 years.

Suitable wooden fence posts are
similar for board and mesh fences.
High-tensile wire and other strandtype
fences require similar posts, but
distances between posts are often
much longer than for board or mesh
fence. Post distance on high-tensile
wire fence depends on wind influences
and topography. Round wood
posts are stronger and accept more
uniform pressure treatment than
square posts of similar dimension.
Attachment of wooden rail boards to
round wood posts is improved when
one face of the post is flat.
Exceptions to wood posts are allowed
for horse-safe steel posts typically
used on chain link fences, pipe
posts from welded fences, and rigid
PVC fence post. Hollow posts require
top caps to cover the ragged top edge,
or should be designed that the top
fence rail covers the top of the post.
Recycled plastic, 4-inch-diameter solid
posts are suitable for horse fence, but
require a small-bore pilot hole before
driving. Metal and fiberglass T-posts
are slightly cheaper but pose a serious
risk of impalement and are not recommended.

They are also not strong
enough to withstand horse impact
without bending. With a plastic safety
cap installed on the top, T-posts may
be cautiously used in very large pastures
where horse contact is rare.
How deep to set the post for structural
stability varies considerably with
soil conditions. Soil characteristics
play a major role in determining the
longevity and maintenance requirements
of a fence. Some soils remain
wet and can quickly rot untreated
wooden posts. Posts in sandy or
chronically wet soil will need to be
set deeper and perhaps supported
by a collar of concrete casing. Other
soils tend to heave with frost and can
loosen posts that are not driven deep
enough. Fences under tension, such
as wire strand or mesh materials,
will require deeply set posts to offer
long-term resistance against tension.
A typical line post depth is 36 inches.
Corner and gateposts are required to
handle greater loads and are about
25% larger in diameter and are set
deeper, often to 48 inches.-

Why doesn't my agent want to list my property?

2009-07-06T20:53:00.000-07:00

If you’ve been interviewing agents and find for some reason that they don’t seem as enthusiastic about your property as you’d like maybe it’s because they don’t want to be the first one to list your property. Most experienced agents will tell you they’d rather be the second or third rather than the first agent to list a property.

Why would they say that? Wouldn’t anyone want to list a property first so as to have the first chance to sell it and earn a listing commission? Well yes, but that’s only if they think your property will sell. If they think the property won’t sell, and let’s be candid here most of the time it’s because they believe you want too much money for the property, they’d just as soon another agent has it first. They prefer that agent has to deal with your frustration at not getting it sold.

Most of the time that first agent will earn the wrath of the seller for “not working hard enough”, or “never showing the property”, or “not advertising it enough”, or some other fault that makes the seller certain the only reason the property did not sell is because of the inadequacies of his agent. Now there are occasions when those criticisms are fair and valid.

But if you’ve talked with several agents and they all seem lukewarm to listing your property they are telling you what you probably don’t want to hear. You are pricing your property too high for this market. They’d just as soon you learned your lesson about the realities of this market at the expense of another agent rather than them. So that by the time you turn to them you will be far more realistic about what your property will likely bring.

There isn’t an experienced agent out there, who hasn’t lost a listing, and endured a frustrated seller only to watch the seller lower the price significantly for the second or third agent, and then talk about how much better their new agent was. Sigh it’s all part of the game. But just be wary, those agents who seem unenthusiastic about your property, want the listing all right, they just want it after you’ve taken your lumps and frustration out on some other agent first.

Do I have the right fence?

2009-06-30T18:44:00.001-07:00

Horse fencing can be the most attractive
features of a horse facility. But not all fence
is suitable for horses. Fencing is a
major capital investment that should
be carefully planned before construction.
A fence should keep horses on
the property and keep away nuisances
such as dogs and unwanted visitors.
Fences aid facility management by
allowing controlled grazing and segregating
groups of horses according
to sex, age, value, or use.
Well-constructed and maintained
fences enhance the aesthetics and
value of a stable facility, which in
turn complements marketing efforts.
Poorly planned, haphazard, unsafe,
or unmaintained fences will detract
from a facility’s value and reflect poor
management. Good fences can be
formal or informal in appearance, yet
all should be well built and carefully
planned. Many experienced horse
owners will relay stories about the
savings for cheaper, but unsafe, horse
fence (barbed wire, for example)
eventually being paid for in veterinary
bills to treat injured horses.
Often, more than one kind of
fence is used at a facility. Different
fences might be installed for grazing
pastures, exercise paddocks, riding
areas, or for securing property lines.
Land topography influences the look,
effectiveness, and installation of fencing.
Consider different horse groups.
Stallions, weanlings, mares, mares
with foals, and geldings all have different
fencing requirements.
Pasture use may range from exercise
paddocks (corrals) to grazing
or hay production. Paddock layout
should allow for ease of management,
including movement of horses,
removal of manure, and care of
the footing surface. Pasture design
should allow field equipment, such
as mowers, manure spreaders, and
baling equipment, to enter and maneuver
easily. This will reduce fence
damage by machinery and the time
needed to work in the field.

Next week I will talk about the importance of using the correct fense posts.

Until next week.......Happy Trails.

Outbuildings are always useful

2009-06-30T05:20:00.000-07:00

Outbuildings are to country property as legs are to a centipede. Each functions better when all are in working order and you have some to spare.

Urban buyers usually focus on a property’s house, because that is what they know. Nothing wrong with that. Equal attention, however, should be paid to the supporting cast of improvements, without which the show may go on but not very well. Working farms, in particular, rely on a few star structures and many role players.

As a real-estate agent working with country properties, I would always include a discussion of the utility and value of outbuildings with both sellers and buyers.

Barns are the upper crust of outbuilding society. State-of-the-art barns are high-tech, factory-type environments built for a specific production function like dairying or poultry. They may or may not be readily adaptable to other purposes.New barns on working farms tend to be functional—long on quick-construction techniques and short on Old-MacDonald charm. They use dollars efficiently in getting a lot of square feet under roof.

If you want to use existing barn space for something else, there’s usually a market for second-hand equipment. The advantage of reconfiguring existing structures is that you generally start with a lot of dry floor space, big doors, electricity and water. A concrete floor is a bonus. Older production systems, milking for instance, need to be evaluated carefully for age, capacity, energy efficiency, productivity and condition. Part-time farmers don’t need cutting-edge systems and equipment, though IRS regs encourage such business expenditures.

Old barns are the lollipops of nostalgia. Timber-framed and wood-sided, they creak, they’re warm and they smell good. An old-timer in good condition is an aesthetic blessing, though it may be impractical for modern needs. In the worst case, a wreck of an old barn may have significant salvage-and-recycle value. A barn was the central, life-sustaining structure of the old-fashioned farm. It was more important to a farm family than their residence. Most were built with care and craft. The ones that weren’t are today’s falling-in wrecks.

Approach old barns whose condition is between good and bad with great caution. Don’t let their charm pick your pocket. Some old-barn repairs are cheap and easy, and others are hard, dangerous and hideously expensive. Foundations and roofs can be wallet gobblers. Old barns may be eligible for state and federal preservation tax credits. Old barns provide a lot of vertical volume, which old-barn farmers needed for storing and feeding hay by hand. These structures provide limited, inefficient storage for machine-stacked round bales and seasonal equipment. On the other hand, they’re great for swings and sneezing.

When enthusiastic city visitors came for a visit during haying season years ago, sly hosts acknowledged their superior executive talents by starting them right at the top of the organization…up in the mow stacking bales under a metal roof on a 95-degree afternoon. Farm life today offers fewer opportunities for cross-cultural education.

Horse barns are fish in a different kettle. I’ve seen horses stabled in structures ranging from lean-tos, which leaned too much, to palaces where someone like me should have removed his shoes before entering.

Older farms have many outbuildings that were built for a single function, such as smoking meat, cooping chickens, storing grain, cooling food and providing workspaces. Whenever these structures are described as “dependencies,” the asking price is set at least 10 percent higher. Old sheds are distant cousins to old barns, though some argue against direct kinship.
A shed might be well-constructed, but many were tossed up hurriedly with second-rate or second-hand materials.

Three-sided sheds often become mental institutions for vehicles that no long run, boats that no longer float and basketballs that have lost their bounce. They may also house workout equipment that is no longer working out.

Supplies also go into outbuildings. Supplies come in two kinds: consumables and possibles. Consumables are used right away. Possibles are items that you are no longer using and may never use again. Nonetheless, you know you will need them if you don’t have them.

I maintain our outbuildings on an “as needed” basis, which means that I’m not as needed fixing them up as I am reading, writing or sleeping.

My “as-needed” approach is a green alternative to constant scraping and painting. I favor carbon-neutral strategies for outbuilding upkeep, which, in my case, only generate windbag gasses.

Shops are a type of outbuilding in which we repair what we have broken as well as things that are not broken. Every country place needs at least one shop, preferably with a concrete floor, overhead hoist, woodstove and fire extinguisher. Many men, as they age, retreat into their shops.

Some, like Jimmy Carter, emerge better for their repairs. Outbuildings are an asset when they’re useable, and a liability when they’re not. The best have learned to take care of themselves.

Dear John, PLEASE COME HOME

2009-06-25T15:20:00.000-07:00

John Homebuyer! Where ya been?

I am writing this to all of the home buyers out there. I’m calling you John so if your name is Amy, Elijah, Toni, or Bob, don’t be offended. Your last name may be different but for today your last name is Homebuyer. So, this letter is for you, John Homebuyer.

Anyway, how have you been ? We’ve missed you a lot this year in the housing market, John. I know that we’ve had a heckuva party the first five years of the decade and frankly, it might have gotten a little too crazy for you. Sorry about that. You know how it is when that cheap money keeps flowing like a keg at a frat party; nobody ever knows when to say when. Some of us didn’t see you slip out the back door when that groovy band, The Speculators, came in and started selling homes to each other last year. I’m sorry I didn’t get a chance to tell you good bye and get your phone number. I really wanted to get together .

John, let me tell you the gossip. The Speculators really weren’t that good; they only knew one or two songs. A new guy named Ben Bernanke came and made all the mortgage brokers straighten up and fly right. He raised the price of money. Fortunately, it looks like he stopped. The sellers are all in a fog now. They don’t know how the price of their homes isn’t logical to someone like you BUT…they’re starting to get the message. The builders? Fuhgedaboutit.

I think we’re all in bit in a fog but we’ll be partying again soon. I know that you’re hearing all kinds of bad things from those dudes at the newspapers, and the TV, and on blogs on the internet but you have to remember that they are spectators not players. In the meantime, you have a pretty good chance to be first in line when the new band gets cranked up. They’ve got kind of gloomy sound but you might like them. They’re called “The Foreclosures”. I heard them back in the 90s and man they are even better than “The Speculators“. I hear they’re back for their “Together Again Tour”. I promise you that you won’t want to miss their show!

We’ve toned things down a lot since the last party. Mortgate brokers aren't letting the underage kids get into the party with those exotic loans anymore. Dude, that was nuts! Now they actually care if you can make the payments. We’ll get you pre-approved with some sane terms and find you a payment you can afford. We’ll introduce you to some really cool mortgage brokers who learned a few things from the last party too.

The Rural KC Team totally rocks! When “The Foreclosures” start playing, they’ll get you front row seats below face value. All they have to do is low-ball the sellers. Those sellers are in such a fog and are so scared of “ The Foreclosures: Together Again Tour” that they’ll bail and you’ll get a SWEET deal!

John, we really miss you. We’ll make sure to listen to you. You’ve been so good to us in the past and without you, there just isn’t any party! Call the Rural KC Team or just leave your number here. I’m looking forward to seeing you again!

Until next week.........Happy Trails

Contingencies on Country Property

2009-06-23T03:56:00.000-07:00

Contingencies on buying real estate are pretty well understood when it comes to buying residential property. Common contingencies include a getting approval for a loan, selling your currrent home to buy a new one, having various inspections completed etc. But contingencies when buying country property can be entirely different, but just as important.

Contingencies are generally set up to either allow a buyer to investigate one or more features of a property or have the seller do something. The buyer usually pays for the costs of research contingencies.Here are some common issues in country real estate that I’ve seen as the subject of contingencies. This list is illustrative, not exhaustive:
Improvements
Residence. House inspection by certified inspector.
Inspection of condition and operation of barns and other out-buildings
Suitability of soil for new construction
Obtain estimates to build or remodel.
Infrastructure
Inspection of existing septic system. (Design and capacity will be on file with local agency that issued the construction permit.)
Percolation test. Contingency allows buyer to test soil for conventional septic-system site. Testing methods differ, but usually require a backhoe and a soil specialist. A conventional system is about 1/4th the cost of a “constructed” septic system.
Quality and quantity of household water. Quality is determined by taking a water sample and having it thoroughly tested for both organic and inorganic substances, not just bacteria.
Cost of installing new utilities to house or house site.
Boundary survey or having a surveyor perform some specific task that’s of concern. One common contingency is to have a surveyor confirm acreage and boundaries using a deed-mapper program. I recommend against buyers splitting the cost of a survey with sellers.
Clearing up a physical or legal access road issue.
Having the seller resolve a boundary encroachment with neighbor.
Condition of road or bridge
Environmental and natural resources
Test agricultural soils for productivity and qualities.
Examine fields and forests for condition, pests, blights, infestations, etc.
Have a consulting forester perform a walk-through or cruise to inventory the seller’s timber and determine its quality and condition.
Perform tests to determine extent of wind resources or subsurface minerals, such as oil, gas, coal or non-energy minerals
Test water for quality, quantity and reliability for agricultural applications
Look into risks from natural hazards, such as earthquake, flood, coastal flooding, tornados, hurricanes, landslides, lightning, fire, drought, etc.
Regulatory issues that would limit buyer’s use of the property, such as the presence of wetlands, endangered species or archeological resources
Tests for air, water or land pollutants
Wildlife/game inventory
Zoning and other administrative/legal actions.
Sale contingent on property being rezoned to allow division, different use or new agricultural activity. Seller gets rezoning; buyer pays costs.
Sale contingent on state highway department issuing new-entrance permit
Contingent on seller warranting that the property is free of unrecorded encumbrances and claims of adversity, along with a promise to defend the buyer against such claims and make the buyer whole if necessary
Contingent on getting Homeowner Association approval for something
Contingent on getting preliminary approval for a conservation easement, organic certification or land-use designation (which reduces property tax)
Contingent on getting acceptable answers from owners of minerals regarding their development plans
Contingent on obtaining an easement to cross a neighbor’s property, often used for access roads and utilities

Financial
Examination of farm tax returns, annual production records, timber records or mineral royalties
Preliminary approval or green light for participation in some federal program such as conservation cost-share or crop subsidy
Financing for purchase of property and operating capital
Purchase of some other property/asset the buyer needs to go with seller’s Property

While these arent' all of the potential contingencies it's a good place to start. To best protect yourself make sure your real estate agent is familiar with and has sold lots of country property. They can guilde you through the process and help you find the resources to make this a productive effort. For more information give us a call at the Rural KC Team, 913-837-4665, or email us at info@RuralKC.com

Why A Buyer's Agent?

2009-06-20T10:17:00.000-07:00

Why Use A Buyer's Agent

For a Real Estate purchase to occur there must be a buyer and a seller. A real estate agent or agents are involved in most purchases. Frequently, the agent(s) “representing” the Buyer is with the company “representing” the Seller. intObviously, the agent cannot represent the Buyer’s interests fully, while also representing the seller. Even when the agents are from different companies the agent working with the buyer may have listings which cause him/her to focus on selling property.

As a potential Buyer, if you really want your interests represented, an agent who will negotiate hard on your behalf, focuses on services that benefit you, and is knowledgeable about the things that are important to a Buyer, you need a Buyer’s Agent to work with and for you!
......................................................
What a Buyer’s Agent does for You:

A Buyer’s Agent pledges to work for the Buyer:
To seek property that best fits the Buyer’s needs
To review pricing policies and trends
To help the Buyer analyze and select neighborhoods, schools, driving distances, a closing attorney and so on
To negotiate on behalf of the Buyer
To provide assistance and guidance with mortgages, insurance, warranties, inspection,and repairs
All with the objective of making the purchase process beneficial to the Buyer.

In closing, if you are currently shopping for a new home or acreage, please obtain a buyer's agent.

Until next week.........happy trails.

How to buy your retirement country home

2009-06-15T19:32:00.000-07:00

Most Americans stay where they are in retirement. Of the 420,000 relocators who cross state lines each year, most look to small towns, small cities, milder climates and a lower cost of living.
The younger you are when you start planning retirement, the better. But those of the 77 million Baby Boomers who have not saved enough may not be out of luck.

If relocating to a small town or rural area might be in your plans, here are ways to approach it:
Buy your retirement place as soon as you can. This is often hard to do, because it requires that you start a long-term investment when you’re young and many considerations are unknowable or subject to change.Some make decision easier by starting it as a second home that can become their retirement place.About nine percent of America’s 111 million householders (owners plus renters) — roughly 10 million — own a second home, the rate being highest among those in their 50s, according to Professor Rachel Drew, coauthor of a November, 2007 study by Harvard’s Joint Center for Housing Studies, “Projecting the Underlying Demand for New Housing Units: Inferences from the Past, Assumptions about the Future.”

The advantages of extending your second home into your retirement residence are many.
The second home can be used mostly as a rental unit with income helping to retire its mortgage and the owner getting many tax benefits along with some personal use. As equity builds and appreciation occurs, you have another asset to borrow against. You also can have local friends in place before retirement.

Buying a second home sooner allows you to buy a retirement place cheaper. The second home you bought for $100,000 30 years ago might easily cost $750,000 or more today as a retirement place. The tax-free profit you will get on the sale of your principal residence can now be used for retirement living rather than for the purchase of your next house.
Buy your retirement place with your IRA. A Roth Individual Retirement Account (IRA) is the best retirement savings vehicle available. It allows an individual to contribute $4,000 annually (on which tax is paid), but all principal and all appreciation can be withdrawn tax-free in retirement. Most of us keep our IRAs in stocks, CDs and bonds.

You can also use IRA money to buy a retirement place in advance of your retirement. You cannot live there or use it until you retire. And you can’t use the retirement property to collateralize a loan, even its own.

You can use its rental income before your retirement to pay for maintenance and build your IRA account. Using IRA money to buy rural land is simpler than buying a rural residence, since land generally requires little maintenance or insurance, and taxes are usually low.
If you sell timber or lease the IRA land for crops, minerals or hunting, your net income after taxes and expenses is added to your IRA. Taxes on income earned from the IRA property has to be paid from IRA funds. The biggest benefit of IRA real estate is its appreciated value, which you can sell before retirement and put the net into your account.

The IRS has established rules for buying and managing real estate with IRA money: you must know what they are and follow them. See Title 26—Internal Revenue Code, Section 408A, Roth IRAs. As always you should consult your investment advisor and a good accountant, but don't let that stop you from making your retirement dreams come true.

Want more information about where and how to find retirement properties just call us at 913-837-4665 or email us at info@RuralKC.com

To Have a Horse In Your Life

2009-06-09T18:24:00.000-07:00

“To Have a Horse In Your Life”

To have a horse in your life is a gift. In the matter of a few short years, a horse can teach a young girl courage, if she chooses to grab mane and hang on for dear life. Even the smallest of ponies is mightier than the tallest of girls. To conquer the fear of falling off , having one’s toes crushed, or being publicly humiliated at a horse show is an admirable feat for any child. For that, we can be grateful.
Horses teach us responsibility. Unlike a bicycle or a computer, a horse needs regular care and most of it requires that you get dirty and smelly and up off the couch. Choosing to leave your cozy kitchen to break the crust of ice off the water buckets is to choose responsibility. When our horses dip their noses and drink heartily; we know we’ve made the right choice.
Learning to care for a horse is both an art and a science. Some are easy keepers, requiring litt le more than regular turn-out, a flake of hay, and a trough of clean water. Others will test you - you’ll struggle to keep them from being too fat or too thin. You’ll have their feet shod regularly only to find shoes gone missing. Some are so accident-prone you’ll swear they’re intentionally
finding new ways to injure themselves.
If you weren’t raised with horses, you can’t know that they have unique personaliti es. You’d expect this from dogs, but horses? Indeed, there are clever horses, grumpy horses, and even horses with a sense of humor. Those prone to humor will test you by finding new ways to escape from the barn when you least expect it.
Horses can be timid or brave, lazy or athletic, obstinate or willing. You will hit it off with some horses and others will elude you altogether. There are as many “types” of horses as there are people - which makes the whole partnership thing all the more interesting.
If you’ve never ridden a horse, you probably assume it’s a simple thing you can learn in a weekend. You can, in fact, learn the basics on a Sunday, but to truly ride well takes a lifetime. Working with a living being is far more complex than turning a key in the ignition and putting the car or tractor in “drive.”
In addition to listening to your instructor, your horse will have a few things to say to you as well. On a good day, he’ll be happy to go along with the program and tolerate your mistakes; on a bad day, you’ll swear he’s trying to kill you. Perhaps he’s naughty or perhaps he’ fed up with how slowly you’re learning his language.
Regardless, the horse will have an opinion. He may choose to challenge you (which can ultimately make you a better rider) or he may carefully carry you over fences - if it suits him. It all depends on the partnership - and partnership is what it’s all about.
If you face your fears, swallow your pride, and are willing to work at it, you’ll learn lessons in courage, commitment, and compassion in addition to basic survival skills. You’ll discover just how hard you’re willing to work toward a goal, how little you know, and how much you have to learn. And, while some people think the horse “does all the work”, you’ll be challenged physically as well as mentally. Your horse may humble you completely. Or, you may find that sitting on his back is the closest you’ll get to heaven. You can choose to intimidate your horse, but do you really want to? The results may come more quickly, but will your work ever be as graceful as that gained through trust? The best partners choose to listen, as well as to tell. When
it works, we experience a sweet sense of accomplishment brought about by smarts, hard work, and mutual understanding between horse and rider. These are the days when you know with absolute certainty that your horse is enjoying his work.
If we make it to adulthood with horses sti ll in our lives, most of us have to squeeze riding into our oversaturated schedules; balancing our need for things equine with those of our households and employers. There is never enough time to ride, or to ride as well as we’d like. Hours in the barn are stolen pleasures. If it is in your blood to love horses, you share your life with them. Our horses know our secrets; we braid our tears into their manes and whisper our hopes into their ears. A barn is a sanctuary in an unsettled world, a sheltered place where life’s true priorities are clear: a warm place to sleep, someone who loves us, and the luxury of regular meals. Some of us need these reminders.
When you step back, it’s not just about horses - it’s about love, life, and learning. On any given day, a friend is celebrati ng the birth of a foal, a blue ribbon, or recovery from an illness. That same day, there is also loss: a broken limb, a case of colic, a decision to sustain a life or end it gently. As horse people, we share the accelerated life cycle of horses: the hurried rush of life, love, loss, and death that caring for these animals brings us.
When our partners pass, it is more than a moment of sorrow.
We mark our loss with words of grati tude for the ways our lives have been blessed.. Our memories are of joy, awe, and wonder. Absolute union. We honor our horses for their brave hearts, courage, and willingness to give. To those outside our circle, it must seem strange. To see us in our muddy boots, who would guess such poetry lives in our hearts? We celebrate our companions with praise worthy of heroes. Indeed, horses have the hearts of warriors and often carry us into and out of fields of battle.
Listen to stories of that once-in-a-lifetime horse; of journeys made and challenges met. The best of horses rise to the challenges we set before them, asking litt le in return. Those who know them understand how fully a horse can hold a human heart. Together, we share the pain of sudden loss and the lingering taste of long-term illness. We shoulder the burden of deciding when or whether to end the life of a true companion.
In the end, we’re not certain if God entrusts us to our horses--or our horses to us. Does it matter? We’re grateful God loaned us the horse in the fi rst place.

--Author Unknown

I got DUPED by a spam email

2009-06-08T06:16:00.000-07:00

This is a little off topic topic but if you've never been foolish enough to fall prey to a spam email let me tell you it ain't no fun. It all started with something that seemed innocent enough to me but that rapidly began a descent into email hell.

I got an innocent looking email that said an acquaintance of mine wanted me to see some pictures she had posted on something called TAGGED. Well it look sort of like one of those things you get when someone sends you an album of pictures and you have to click on a link to open the albums. It was late on Sunday night I was taking one last look at my email before I went to bed after a great but exhausting weekend of playing host to my two granddaughters ages 5 and 3. I was beat and not thinking clearly. Plus the thumbnail pictures being shown were of horses and this acquaintance of mine is a horse owner. So I bit on it.

Now the obvious signs of this being a scam were there, why I didn't see any of them I don't know, but I took the next stupid step. First there was a comment that said my acquaintance would be upset with me if I didn't sign up to see the pictures. Then, and this is the one I really cant forgive myself for, it asked for my email password and I entered it. I know, I know, I know, I am a dumbkoff, but enter it I did. I knew right away that I had screwed up because there were no pictures.

So now I went into panic mode. I updated my virus scan and did a full system scan. This took about 30 minutes, long after I had wanted to be in bed. The good news was that this thing does not install a virus on your system, in fact it doesn't hurt your system at all. So I did think to change the password on my email system and thought that would be that. So I fell asleep waiting for me virus scan to be completed. About 12:30 I woke up again and went to check my computer to see how the scan turned out and to turn my computer off. I was glad to see the scan showed no virus', but there was the first email, "Bill did you send me this email about pictures on TAGGED." RATS the dang thing was spamming my email contacts list. What do I do now?

Now I went into panic mode number 2 which consisted of tossing and turning while trying to sleep and not think about what I had done. Finally at 5 AM I couldn't stand it anymore and got up and blearily went to my computer to figure how I could solve this problem.

It took me about an hour to figure out how to get to my email accounts list of "contacts" and how to send a large number of those people a notice that. "I DID NOT SEND YOU THE EMAIL ABOUT THE PICTURES, SO DON'T OPEN IT." I sent that to the some of the 738 contacts I had in my email system.

Then I got the email from an East Coast friend that said they looked this thing up on snopes and that it was just an annoying way to get people to sign up to this social networking system, but that it did no harm to anyone beyond that, here is the link to snopes http://www.snopes.com/computer/internet/tagged.asp.

Well I was somewhat relieved to know I wasn't part of a plot to install virus' on peoples computers, and now made the mistake of overcompensating. I wanted people to know I was not a bad guy, and I wanted to make sure they didn't put me on their spam list. So I decided to send out a second email. This one would go EVERYONE on my contacts list, (I had learned a lot about my contacts list, and was feeling confident at this point). So I composed a new message.

I wanted to assure people that there was nothing dangerous about the original spam message they might have gotten from me. So I entitled this one, "If you got an email message from Bill Gaughan about pictures, it is not harmful". Well it never occurred to me that if I were going to send out a harmful message THIS IS EXACTLY HOW I WOULD TITLE IT. Plus as I was sending these out in batches of 99 I got a message from my email provider, that I had exceeded the maximum number of messages I could send in a day, and MY ABILITY TO SEND EMAIL WOULD BE CUT OFF FOR 24 HOURS.

So now I started getting more emails, "Bill did you send this?", but of course I can't respond for 24 hours. I imagine I will be reported as a spammer and all the people I need to correspond with will no longer get any email at all from me.

So far this is eaten up about 6 total hours of my time. I'm operating on little to no sleep, but I suppose the good news is my total email traffic will now drop off to almost nothing because everyone THINKS I'M A SPAMMER!!!!.

I love technology.

Is Your Real Estate Agent An Equestrian Specialist?

2009-06-03T14:48:00.001-07:00

Is your Real Estate Agent an equestrian specialist?

Your real estate agent may know houses - but what do they know about horses and farms?
A real estate agent that does primarily residential homes will most likely NOT know all the ins-and-outs when it comes to dealing with horse farms.
There are literally HUNDREDS of questions that an equestrian specialist should know to provide guidance for their clients. [And it goes well beyond knowing which end of the horse you give the hay to.]
Here are just a few questions to ask your prospective real estate agent:
How many acres do you need per horse?
Answer: Do you intend to provide full care with stalls, feed, & supplements? Or are you going to provide solely field care, with only a run-in shed for shelter?
For Kansas and Missouri, its fairly accepted that to sustain a horse, its 2.4 acres per horse with constant turn out and no grain supplementation. If you provide feed and rotate pastures, it can go as low as 1 acre in some areas - but this minimum is becoming restricted out by many government zoning regulations.
Ask your real estate agent for guidance.
Have the fields been seeded/planted with any type of pasture mix grasses suitable for horses?
Answer: Hay/grass suitable for cows is usually NOT high enough quality for horses. And if you have pregnant mares - you better check if the property has any Tall Fescue. Mares can abort their foals if they feed on this grass. Fescue is a common grass for grazing because its easily established, tolerates close grazing, survives drought conditions that can wither other grasses, and it stands up to heavy traffic. It is also resistant to disease, insects, and weed competition. But, this “wonder grass”, can also carry a toxin that is associated with an endophyte fungus. The fungus lives within the plant and cannot be detected visually; however, you can test the fescue for the level of endophyte infection. So you need to know, particularly if you have mares: is there any Tall Fescue on the property? Please note that there are some endophyte free varieties of fescue available - most of these are called short fescue.
What type of fencing is appropriate for horses?
Answer: Fencing for other livestock is probably not what you should use for horses. Remember the old term “horse play”. Theres a reason why that term exists. Horses are active, large animals that when they get going, they can get themselves into trouble in a hurry if you don’t provide them a safe environment within which to roam.
There are LOTS of choices available: diamond mesh, no climb, PVC, HTP, etc, etc.
However, one important thing to note: installing fence for maximum safety is different than installation for aesthetics.
Installation for aesthetics has the boards placed on the outside of where the horses will be. It is visually more appealing - but if a horse builds up a good head of steam and runs into the fence, instead of having to break the boards, all they have to do is push the nails out - and the boards with the nails still in them, will be laying on the ground while your horse is roaming free.
Installation for safety has the boards placed on the inside where the horses will be. That way, if a horse runs into the fence, they actually have to break the boards to get through. Common way of finding out if the fence is installed this way, is asking a non-horse person: “does the fence look like it was put in backwards?” If they say yes, then you know its probably installed with safety taking a priority over aesthetics.
And there are 2 main types of wood used for this type of fence: Oak and Poplar. Oak is harder and as a result, horses don’t chew on it as much - but it can be prone to splitting, cracking, and warping. Poplar is a softer wood that generally stays straighter, and is less prone to split, crack, or warp - BUT horses like to chew on it. A lot of persons go with an oak board for the top rail, and poplar for the others. This allows the horses to chew on the hard oak (which they don’t like usually), while having the benefit of straighter boards on the bottom rails - where horses are less likely to chew regularly.
The 2nd type of fence is a new product that is gaining acceptance within the horse community called Electrobraid. It looks essentially like a yachting rope, that has wire woven into it. Since its rope, its flexible - with no hard edges or sharp points. And unlike board fence that you may end up replacing every 5-7 years - it comes with a 25 year warranty.
Again, ask your real estate agent for guidance on what may be best suited for your needs.
These are just a few of the MANY, MANY questions (and answers) that your real estate agent should be able to provide if they are a proficient horse farm real estate professional.
Other questions include:
Riding Arena construction: Most arenas are constructed incorrectly. Did they remove the top soil and get down to clay to begin construction? If they had to place fill, what compaction % should the sub-base be rated at? what grade should the arena be? what base should you use: gravel? dense grade? stone dust? what about top coat choices - did they use regular sand, or angulated sand? or did they go with one of the composite materials? or perhaps a blend? did they use a french drain?
Barn design: how large of an aisle do you need? what about ceiling height? how large do the stalls need to be? how much hay storage do you need per horse?
ETC.
ETC.
The list goes on and on and on.
Hundreds of items that your real estate agent should know. Do they?
Make sure your real estate agent is knowledgeable - and that they are able to provide for you in your search for your horse farm. A real estate agent that is an equestrian real estate specialist can provide very valuable tips, advice, and guidance to ensure your needs are addressed in your horse farms purchase.

Until next week, Happy Trails!

True Horse Definitions

2009-05-27T11:02:00.000-07:00

Just for fun this week, I'm giving you the true definitions of the different disciplines of riding. Please don't be offended......I'm a trail rider:)

Natural Horsemanship devotee looks like a throwback from a Texas ranch, despite the fact that he grew up in the suburbs of NJ. Rope coiled loosely in hand (don't want to send any messages of tension, after all) in case he needs to herd any of those kids on rollerblades away from his/her F-350 dually in the WalMart parking lot. Cowboy hat is strategically placed, and just soiled enough to be cool. Wranglers are well worn, with that little wrinkle above the instep of the ropers, and lots of dust (well, you know, from the round pen) on the lower legs.

Dressage Queen is freshly coifed. Not even she remembers her own hair color, but she has taken great pains to ensure that Rolf, the hairdresser, makes the perm and highlights look "natural." Diamond studs are elegant and stately, and not so large that they blind the judge during the entire passage-piaffe tour. $30 dollar denim jumper worn over $300 full seat white breeches and custom Koenigs.

Hunter/Jumper competitor is in an aqua polo and those breeches whose color could be compared to, um, well, okay, let's say they're khaki. The polo is so that folks will think they're a jumper rider until they put on their shirt and stock tie. Baseball cap is mandatory after a ride, in order to provide free advertising to that trainer's stable for whom they shell over a mere grand or so per month, and to hide "helmet head."

Eventer is slightly hunched over. This could be from carrying three saddles, three bridles, three bits, and all related color coordinated gear to every event, or it could possibly be a defensive posture where he/she is unconsciously protecting his/her wallet, which is, of course, nearly empty from buying three saddles, three bridles, three bits and all related color coordinated gear. Looked down on by the H/J's as "people who just run their horses at fences" and by the DQ's as "not real dressage riders" Eventers are smugly convinced that they are in fact the only people in the horse world who CAN ride, since the H/J's don't jump real fences and the DQ's don't ride real horses.

Trail Rider is usually found wearing a "wife beater" (wife beaters know no gender) and jeans with several rips, tears and holes in them from being rammed into trees, wild rose bushes and rocks. Their 15 year old Justin boots are cut, stratched and marred so badly from being drug acrossed trees and dunked in rivers that you can't even remember what color they are. They usually have very, very nice saddle bags neatly tied on their saddle; nothing but the best for their beverage of choice.

Endurance addict is wearing lycra tights in some neon color. Has not read the rule that lycra is a privilege, not a right. The shinier, the better, so that they can find her body when her mount dumps her down (another) ravine. Wearing hiking sneakers of some sort and a smear of trail dirt on the cheek. Sporting one of the zillions of T-shirts she got for paying $75 to complete some other torturous ride. Socks may or may not match (each other).

Backyard rider can be found wearing (in summer) shorts and bra, (in winter) flannel nightgown, muck boots, down jacket. Drives a ford tempo filled with dirty blankets and dog hair. Usually has deformed toes on the right foot from being stepped on in the Walmart sneakers that are worn for riding. Roots need touching up to hide the grey. 2-horse bumperpull behind barn filled with sawdust/hay. Can be found trying to teach her horse to come in the kitchen to eat so she doesn't have to walk all the way to the barn.

Until next week......Happy Trails.

Financing Homes on large acreages

2009-05-25T18:55:00.000-07:00

Well it doesn't seem like much of a problem. You have good credit, your home in the city is now under contract, you are pre-approved for far more than the country home on 40 acres you want to buy, so what could go wrong? You stop by your mortgage company, you've been with them for you years, you have a great relationship, and you went to high school with the manager. So imagine your shock when you find that they tell you they can't finance your mortgage.

Why not you ask? They then tell you that they are very comfortable financing homes in the city but they do not finance homes on large acreages, generally they draw the line at homes on 10 or fewer acres. All of a sudden what seemed to be your seamless easy move to the country is now at risk.

You are shocked and offended, how dare they turn you down after all those years, you'll just take your business elsewhere. So you just march down the street and find that the competition turns you down as well. What now?

You have just learned that sometimes it's difficult to find lenders willing to finance purchases of larger tracts of vacant land, even those with a home on them. So what are your options?

There are lenders that specialize in financing vacant land, and homes on vacant land. One of the largest of these is Farm Credit. They can take care of the entire mortgage. The downside is that they generally ask for more of a down payment and their rates are usually higher than the mortgage you are used to getting for your suburban home.

Another option is to contact banks with mortgage departments in the small towns and rural area where you new home is located. Another avenue is to use a mortgage broker whose job it is is to know where these types of loans can be found. These lenders are used to this situation and often can make the loan on the land in house and send the loan on the house and part of the acreage to the secondary market, just like you are normally used to doing.

There is a catch though. You usually have to have the land surveyed and broken into two parcels. One parcel will contain the home and 10 or fewer acres. The other parcel will be the balance of the land left when the house and 10 acres is subtracted. This will entail some expenses. There will be a survey fee, and usually some fees from the county where the lot split is done. It will also often take 60+ days to get approval for the county for this to occur.

So if you are planning on buying a home on a larger parcel of ground it is well worth your time to know in advance what lender will work with you and what the county regulations are to make this happen. Seem complicated? No need to worry just contact an experienced realtor who handles rural property and they can make this an easy process for you, make sure you are properly financed, meet all county regulations and write a contract that eases through this whole process.

Don't know of any such realtors? Well let me suggest you call 913-837-4665, or email infor@RuralKC.com and I'll bet we can find one for you.

FSBO or Realtor

2009-05-20T10:17:00.000-07:00

For Sale By Owner or Realtor?????

There was a For Sale By Owner sign seen in a yard recently and it read: "We shoot every third Real Estate Agent that stops here, and the second one just left".

"Why do we need a real estate agent? After all, an agent will charge thousands of dollars to sell even an average home, and that commission comes right off the top! Heck, with the Internet and all, we can do practically everything that an agent would do, so why should we pay out all that money?" Many home sellers have similar thoughts, and because so much money is at stake, these questions deserve some serious thought.In today's world, the sale of real property is not just a marketing exercise; there are many legal issues involved which can create liability in the sellers. Of all the things you want and expect from selling your home, a lawsuit is probably not one of them.Unfortunately, residential transactions have seen an alarming increase in the number of claims and lawsuits. Of these claims, the majority are filed against sellers, by their buyers. Home sellers who think they can "go it alone" might want to seriously ponder the observations of a lawyer who has defended many sellers and real estate agents against claims made by "the Buyers from Hell." In most states, the process by which title to real property is transferred is rather complicated, and the typical home seller is not familiar with the many legal issues that can and do arise, even in a fairly simple transaction. Important decisions must be made concerning contract terms, escrow matters, transfer of title, apportionment of costs and any number of other matters. Also, bear in mind that a simple missing word, or a mistake in grammar can create a dispute which, in turn, can give rise to a lawsuit. Aside from the problem of drafting the contract language itself, sellers can face other dangers as well. For example, did you know:

That buyers who look for "FSBOs" usually offer 6-10% below the price of comparable properties because they know you are not paying a commission?

That there are substantial risks involved when a seller agrees to "carry back" a note from the buyer; risks that can cost you thousands of dollars?

That your good credit rating can be ruined by your buyer's default, many months, or even years, after that buyer "assumes" your loan?

That a clever buyer can stay in possession of your property for many months after he defaults on the contract, and in effect "live for free" at your expense?

So, please take the time and think about what the safest and most cost effective way to sell your home might be.

Until next time.......Happy Trails. Danicia

Did you know you can put land in your IRA?

2009-05-18T14:04:00.000-07:00

Most people are completely unaware that you can buy land as part of your portfolio in an IRA. After the recent collapse of the stock market people are becoming a little less sure of the advice that they get from their financial advisors and are wondering if there are better, safer, cheaper altertnatives. Land may be among them. Below is an article published in a recent edition of Landthink blog, that provides more details. If you'd like us to help you with a land purchase just let us know and we'll be glad to assist.

You can invest in Land, improved or unimproved with a “Self Directed Retirement Plans” since the IRS has allowed them. No one wants to talk about it. “They”, the investment firms do not make money on a Land transaction because “they” are not licensed real estate agents. Only licensed real estate companies can take commissions and are not allowed to pay referrals except to other active real estate firms.

The traditional investment community has had control of over 97% percent of the retirement accounts and they have been making a great living off your hard earned money.
Your stock broker or financial advisor will not advise you how to take money away from their pockets and invest in real estate through your IRA, or 401K plan either. The financial magazines run large ads for brokerage firms and mutual funds T.V. and radio investment shows are supported by the same Wall Street advertising dollars…your money.

Stated on the IRS website “…..because of “administrative burdens”, many IRA trustees do not allow IRA owners to invest IRA funds in Real Estate. IRA law does not prohibit investing in Real Estate but trustees are not required to offer Real Estate as an option.” No commission for real estate sales may have a say here described as “administrative burdens”.

Be careful who you choose as your custodian. Most of these “professionals” are part of the same old 97% controlling crowd previously mentioned. Our recommendation is that you find one that charges an administration fee and believes in Land Investments.

HORSE VS. HUSBAND (OR WIFE)

2009-05-14T16:28:00.000-07:00

As you may know, the Rural KC Team specializes in selling country homes to people that are looking for the "good, clean country living". More likely than not, when folks buy their first property with acreage, they soon long for their own horse. Here are a few comparisons you might want to keep in mind.

GOOD THINGS ABOUT HUSBANDS
Husbands are less expensive to shoe.
Feeding a husband doesn't require anything that even mildly compares with the hassle of putting up hay.
A lame husband can still work.
A husband with a belly-ache doesn't have to be walked. Note .. this item prompted a response from someone else:
But if you've ever endured a husband who is rolling on the floor, screaming, and writhing in pain with a kidney stone at three in the morning, you know you can't put him down (and get away with it).
Husbands don't try to scratch their heads on your back.
They're better able to understand puns.
If they're playing hard to catch you *may* be able to run them down on foot.
They know their name.
They pay their own bills.
They apologize when they step on your toes.
No saddle fitting problems.
They seldom refuse to get in the vehicle.
They don't panic, yelling and running all through the house when you leave them alone. (unless you left the kids too)
For a nominal fee you can hire someone else to clip them.
They don't like the lady next door just as well as you just because she fed him 3 days straight.

THE HORSE'S ADVANTAGE
If they don't work out you can sell them.
They don't come with in-laws.
You don't have to worry about your children looking like them.
You never have to iron their saddle pads.
If you get too fat for one you can shop for a bigger one.
They smell good when they sweat.
You can repair their "clothes" with duct tape.
It's possible to keep them from "jumping the fence".
You can force them to stay in good physical condition...with a whip if necessary.
They don't want their turn at the computer.
They turn white with age, but not bald.
They've never *heard* of PMS.
They learn to accept restraint.
They love to go trail riding.
They don't care what you look like, as long as you have a carrot.

GOOD THINGS ABOUT A WIFE.
Your wife can feed herself if you have to leave town.
You can (usually) kiss your wife's neck without worrying about getting your feet stepped on.
You can shop for a new car without worrying about whether it's powerful enough to haul your wife.
If you call in sick at work to stay home and play with your wife, there's very little risk of serious injury that will be tough to explain to the boss the next day.
Your wife won't go roll in the mud right before an occasion when she needs to look her best.
Your wife can groom herself much better than you can.
Bathing your wife can be much more entertaining than bathing your horse, and doesn't require tying her up (unless you're into that).
If your wife loses a shoe, you can be pretty sure she has plenty of replacements in the closet.
Your wife's mane doesn't need to be pulled.
If your wife runs away from you, you don't care whether she gets hurt.

THE HORSE'S ADVANTAGE
Horses are less expensive to shoe. They'll happily wear the same set for weeks.
Horses are less expensive to clip, and one clip job may last all winter.
Your horse won't constantly ask you if his blanket makes his butt look big.
Your horse won't worry about whether his shoes match his saddle.
Your horse won't complain if you occasionally ride a different one.
You have more options for working out your horse's behavioral problems.
Your horse won't sulk if you forget his birthday.
Your horse's farts make yours seem like no big deal.
Your horse won't tell all his friends about every little mistake you make.
Your horse won't constantly nag you to redecorate the barn.
If your horse runs away from you, you can usually get him back.

Until next time.....Happy Trails. Danicia

Who owns the fence?

2009-05-10T05:53:00.000-07:00

So you’ve just bought your new property in the country and you notice you have long fence line with your neighbor. The fence line is on the property line so who owns it? And more importantly who maintains it? For a long time, centuries perhaps there has been a rural tradition about maintaining fences. Since each landowner had a vested interest in the integrity of the fence they tradition was that they would meet at the middle of the fence with each of them standing on their property and each would be responsible for the maintenance of the fence to their right.

Some people even today think that is what the law says. But it is really just tradition, not law. Now suppose you are building your country home site but your neighbor has a large cattle operation. Clearly then it’s up to him to maintain the fence to keep the cattle off of your property right? Well not so fast. In Kansas and Missouri as well as many other rural states there are left over laws from the free range days that state it’s up to you to keep cattle off of your property not the responsibility of a landowner to keep cattle in his property. So if you want people and livestock off of your property, it’s up to you to keep them out.

Now while that may be true in law it’s rarely if ever followed in day to day life. As a practical matter the rancher wants to keep the fence up and will no doubt maintain it. So practical reality almost always trumps 19th century laws.

Well it's been a while since we've posted

2009-03-05T04:31:00.000-08:00

Frankly the market was so weak in 2008 that it was hard to come up with anything either new or optimistic to post about. But ever since the first of the year we have been busier than at anytime in 2008, and as busy as we ever were in previous years. At first when we got busy we were scared that it was just a temporary bubble that would soon go away. But thank heaven we were wrong. So far this year our sales are up 300% over the same time period in 2008.

The fact is that this is a great market. Especially if you are a buyer. Did you ever notice how people always say they want to buy low and sell high? Well this is now a buy low market. But the "buy low" part of the scenario is a lot more difficult for people to actually execute. Everyone is anxious to sell high, but it takes a particular type of courage to actually make the buying decision to purchase in a down market.

I'd suggest that you talk to some old timers. Ask them what they paid for real estate, especially land that typically can't deteriorate on you and you will be amazed at how much they made over relatively short time spans even as short as 5 years. So if you ever wanted to "buy low" now is the time really consider making the plunge.

Oil and Gas leases, Good thing or Bad Thing?

2008-05-30T08:24:00.000-07:00

It often happens when purchasing country property that you may find that there is an oil or gas lease on the property. Now you have to decide if that is a good or bad thing. As with many things there are several issues to consider.

The biggest drawback is that the oil or gas company usually has the right to come onto your property when they want, drill wells, dig pipelines etc. If you are using your ground just for pasture or even crops maybe that’s acceptable to you. Most people who want to build a home on their land would not like an drilling company being able to do that. So what are the options?

1) The most common thing we find is that the lease is a very old one probably purchased by Grandma and Grandpa and the oil or gas company has been out of business for many many years. This is pretty easily handled by doing an affidavit of non production, and for about $25 or so the lease goes away and there is no further issue.

2) What if it is an existing lease that is recent? Well if the company has never drilled a well most (I said “most”) of these leases expire if they don’t produce anything within a certain time often one to three years. If that is the case then you take the steps mentioned in item 1 above.

3) What if they are currently producing oil or gas? Well now is the time you want to find out who gets the mineral rights if you buy the property. If the buyer gets the mineral rights well then you also get the royalties, which normally amount to 1/8 of the production of either gas or oil and that can be lucrative. But often when selling producing land the seller will want to retain the mineral rights. So if that’s the case then you have to decide if you want the land badly enough that you are willing to forego the royalties and accept the fact that the oil or gas company can drive on your property, drill new wells, place pipelines etc.

4) The most frustrating scenario is to find that there is an existing oil or gas lease, but you don’t see any signs of activity on your ground so you think you vacate the lease by doing an affidavit of non production. But then you find that while the 40 acres you want to buy is free of any activity the drilling company has a lease that covers several sections of ground and all they have to do is have some production on any of that ground and they still have rights to all of it. Including the ground you want to buy.

If you are in the midst of purchasing ground like this and have any issues there are several attorneys who are specialists in oil and gas leases and I’d suggest you contact them. If you are in the process of wanting to buy ground and just have some simple questions please feel free to contact us at 913-837-4665 or email us at info@RuralKC.com

Time to Vaccinate your Horse

2008-05-09T09:46:00.000-07:00

Hello fellow horse people. This week I am going to blog about Spring Health Tune Up for Horses. Vaccinations, parasite control, conditioning and hoof and tooth work should all be on the spring health checklist of horse owners. The best disease protection is a good vaccination program by a veterinarian. Most vaccines require an initial injection followed by a booster within 4 to 6 weeks for maximum protection. Horses should be excercised only lightly for 3 to 5 days after vaccinations as they may be stiff and sore.

Because vaccinations require some time to take effect, the horse will not have immunity immediately after a vaccination. Allow two weeks after vaccination before exposing the horse to othe rhorses that may be carrying a disease.

Combined vaccines that include coverage for up to five of the most common equine diseases reduce the number of "shots" a horse needs. The most popular being-Eastern and Western Encephalomyeltis, Influenza and Rhinopneumonitis and Tetnus.

Don't forget West Niles as well.

Horses should be checked for internal parasites and dewormed as needed. A deworming program may be continual or periodic. If drugs are rotated, families of drugs-not just brand names-should be changed.

Please remember as the weather gets nicer and you want to ride, your horse has been cooped up all winter and is not conditioned to ride yet. Horses should be started slowly and build up to maximum performance. This most generally take 4 to 6 weeks. Excercise under saddle at least four time a week. Having a horse in the best physical shape possible at the start of the season goes a long way toward preventing lameness or health problems later.

Horses should receive a dental exam once or twice a year.

Trimming of feet and shoeing may be needed. Most horses need reset about every 6 weeks to avoice excessive changes in hoof length or shape. Let me know if you need that name of a good farrier. I have several.

Well spring has arrived and so have the ticks

2008-04-22T05:47:00.000-07:00

One of the unfortunate things we have to contend with in rural real estate is the unfortunate reappearance each year of ticks. When I was a kid ticks hadn't actually evolved yet. Well ok that's not true but they weren't as dangerous. I can remember reading about Rocky Mountain Spotted tick fever but I never knew anyone who had it. But nowadays particularly with Lyme disease ticks are no laughing matter.

This is particularly hard on turkey hunters as they must sit still in the now warm woods for long stretches. We all know how ticks can cling to you when you are on a hike, so imagine what it's like when you are not a moving target. So does all this mean that you can't enjoy the woods in warm weather? The answer is no.

If you are only a casual and infrequent visitor to timbered areas you can use the same insect repellents that work on mosquitoes. Such brands as OFF, CUTTERS, and others who use Deet as their active ingredient are all pretty effective. I say pretty effective because when I've used them in the past they were much better than using nothing but I almost always found at least one or two ticks when I came in from the timber.

Last year I read about something new, or at least new to me called Permethrin. It's sold under several brand names and can be found at many places including Cabela's, Bass Pro and others. It's a unique product and it's first usage as an insect repellent was to protect troops from insects in tropical areas.

Here is what makes it so unique. You do not, in fact DO NOT EVER spray it on your skin. Instead is meant to be applied to the outer layer of clothing and it lasts up to 6 weeks even through washing. And here's the best part, it is amazing how well it works. I have a set of jeans and socks that I set aside and spray with one of the permethrin based products. My wife marked the bottoms of the socks with a marker so I can tell them from the other socks in my drawer. When I wear those socks and those jeans there are no ticks on me when I come home from the woods. I also wear a white shirt in the woods to more easily see any ticks, but with those jeans and socks none ever make it as high as my shirts.

What I do is to take the socks and jeans out in an open area, spray them on all the outer surfaces so that you can see they have been moistened, let them stay overnight to dry and then make sure those are the ones I wear in the woods. The result, NO TICKS. On thing I do when I know I'll be in the woods a while is to pull my socks up over my jeans. Hey I'm never going to be a high fashion model anyway, so why not? I just find it more effective at keeping ticks on the outside as long as possible so the permethrin can do it's job.

If you Google permethrin you will find as you usually do warnings about what high dosages etc. will do to you. Now the thing is permethrin is also used as a commercial insecticide particularly in the cotton industry. So how they use permethrin there is a lot different than in this application. I like it because well, it works, and you don't have that oily smell you get from using normal insect repellents. As always you are grown ups, so study up carefully before you use anything like this, but as someone who has to go into the woods on a regular basis I'm a big fan and think you should consider it. It sure beats Lyme disease.

So what is the state of the Real Estate Market?

2008-04-04T07:45:00.000-07:00

Well first of all I don't want anyone to confuse me with some Wall Street guru. I'm just a simple Mid-west kid noticing some trends. That's also another way of saying that if you take my advice and it doesn't work out well don't think about suing me. If I were a real genius I'd be writing this from my Caribbean home, and well when I look out the window, it doesn't look like the Caribbean to me.

But here's what I've been seeing just by keeping my ear to the ground. Now OK I mixed my metaphors and the odds are that if my ear were to the ground I wouldn't be seeing much now would I?

But I am not seeing rural land prices affected much if at all like we are seeing residential property. I believe that is for 3 reasons first of all grain prices are at an almost historic high so all rural land is holding it's value. Secondly the desire to move from the city to the country hasn't diminished at all. Maybe there are fewer folks who can do it, because their city homes are harder to sell, but the desire is there. The third reason is that we have not just been busy, we've been swamped. We are working 7 days a week and are having trouble keeping up. Admittedly the recent better weather has helped a lot.

So what does all of this mean? Well first let me reiterate, don't sue me if I'm wrong, but I think the effect of the recent real estate problems has had minimal if any affect on rural property. But at the same time the actions by the FED to bolster residential sales means lower interest rates for all of us. In other words I think this is the time to buy. I don't see prices or interest rates going lower, but I can see both going higher.

Give us a call and we can talk further about what this might mean specifically to you. I am still available, I am not in the Caribbean, however I am accepting donations. Give us a call 913-837-4665, (and yes most of you will have to dial the 913.)

Enjoyed Meeting everyone

2008-04-01T13:57:00.000-07:00

Well the day was a little gloomy and the allure of staying by the TV and watching KU basketball was pretty attractive, so we didn't get to meet as many of you as we would have liked. But we did enjoy talking with the folks that stopped by. As many of you are first time country property buyers we understand that it can be a little intimidating. The property where we had the open house has a great spot for a pond, so it was nice to talk about what it takes to get a pond built, how you want to treat your downstream neighbors etc.

We hope to have more similar events and look forward to meeting more of you in the future.

Come meet us and let's talk country living

2008-03-29T16:10:00.000-07:00

Danicia and I are holding an open house on Sunday March 30. Stop by and visit we'd love to get to know you and talk about rural life. The open house will be from 1 to 4 and we are holding it at a beautiful brand new ranch (www.countrycustom.info) home located at 18974 K-68 hiway Paola KS. To get there from Hwy 169 go south to K-68 then go East a couple of miles and the house is on the north (left) side of the road.

Or you can come from Hwy 69. Go south to K-68 then West about 4 miles and the house will still be on the north, but now it will be on your right. We hope to see you Sunday.

Is now a good time to sell rural property?

2008-02-19T20:05:00.000-08:00

If you are willing to put in just a little more effort it’s a great time to sell. If you plan on doing no more than you normally do when selling property well then maybe it will be a little tougher. But if you are willing to invest a little effort you can probably get what you’d get in normal circumstances.

The first thing is that rural land does not normally dip in price like residential homes. You typically can’t get the type of mortgage that skyrockets in price due to rate changes on rural land, so you don’t have a lot of folks panic selling because they can’t afford their new higher mortgagee payments.

Also a lot of sellers of rural land are selling to cash out, perhaps they are ready to retire, or maybe they have a pet project and they’ll pursue that project if they sale of their land will finance it. But they can wait so they aren’t likely to constantly dropping the price of their land.

There are still fewer buyers now than normal so what can you do to get the highest possible price for your land. Well the best advice I ever got for selling rural property was to “park it up”. What that means is to spend a little time improving your land so that the new buyer gets the idea he is moving to a rural park.

Here are some things you can do. Get rid of the trash that grows up in untended fields. Everybody wants old growth timber but a field full of hedge trees, cedar, and sumac isn’t what people have in mind. If you do have some timber spend a day with a brush hog and put in some trails there is nothing that quite fires up a buyers imagination than having nice walking or riding trails through timber. Oh and if you have some secluded spots like a pond in the timber, or a nice view of rocky stream bed, be sure your trail leads buyers to them.

Perhaps nothing is quite as appealing to buyers as seeing wildlife. So do what you can to bring them in. Put out feeders, plant food plots, and spread some corn around from time to time. As a realtor we love seeing buyers eyes light up when we scare up some deer or turkey when viewing the property.

Of course we highly recommend having an experienced realtor who is a specialist in selling rural property represent you. Who do you think we are most apt to recommend? If after looking over our web site you still aren’t sure, give us a call at 913-837-4665, or email us at info@ruralkc.com and will give you the correct answer.

2008-02-19T20:04:00.001-08:00

Financing Rural Land

2008-02-04T10:46:00.000-08:00

Bill here,
One of the things that surprise folks is that financing vacant rural land is a lot different than financing a home in the city. You will often find that the normal folks who finance homes are not comfortable financing vacant ground. They often want to finance it using a balloon payment in 3 to 5 years. That's because they view vacant land as property that will soon have a home on it. So they finance it short term and assume that you will eventually build a home, because that's what they are really comfortable doing.

Another problem with lenders who primarily finanace homes is that they really struggle to properly appraise vacant land. They will often send out their appraiser who is an expert in appraising homes, but is out of their element when financing rural property. Some day I'll do a blog on some horror stories I've had with some wild appraisals.

But what if you don't intend to build a home on the land, but would like to have a mortgage for 20 or more years? Well don't despair there are some lenders out there that do know exactly what they are doing, and are very good at appraising the land. But be forewarned you will not find the exotic financing schemes that you see in home mortgages. You should be prepared to put at least 20% down when purchasing vacant land.

Another common scenario is when the seller finances the sale. This is often advantageous to the seller from a capital gains tax perspective and allows you to buy property with a lot more flexibility than is often found in using a mortgage company. We have several properties where the owner is open to doing the financing, so give us a call and we can talk about it.

If you are thinking about buying some rural land and will need to finance it give us a call or send us an email and we'll be glad to point you toward some lenders that work in the area where you want to buy and who are comfortable financing this type of property. We can be reached at 913-440-4125 or email us at info@ruralkc.com

Why I love my job

2008-01-29T09:07:00.000-08:00

Bill here, just wanted to let you know why I love what I do.

This weekend I went out to view a property that I hope will soon show up as a listing. It was a nice warm day and my wife and I were talking about going hiking at the Arboretum, but instead I asked her if she'd like to go with me and hike this property while I looked at it, and took pictures. I was stunned to hear her say yes. She is not nearly as enthusiastic about the outdoors as I am.

So off we started. I parked the truck inside the gate of this 120 parcel and we took off. I got the normal comments about "how can I enjoy the property when I she spent all her time looking down to watch out for cow flop. But as we walked through a grove of trees we spotted two bucks in the next pasture. We were both excited and I tried to maneuver to get a shot of those bucks before they took off. They saw me and started to run so I shot off some wild shots and hoped for the best. (I did wind up with one with the two bucks at the top of the frame). But now that got her enthusiastic.

Next we had to ford a pretty muddy creek and I wondered if she'd want to turn back. But no she was a trooper and we got across with a little trepidation but no incident. By this time she was getting into it. She had a an aerial photo and was tracking our progress as we walked. I was snapping pictures of this gorgeous property. It always amazes me how much beauty there can be just a few hundred yards away from a road, and this was no exception.

We found that 3 small creeks wound through some gorgeous old growth timber to form a larger creek. We found hidden fields and pastures that were framed by these creeks. We found a hidden pond that was not even visible either from the road or from the aerial photo. The land owner had done a great job of landscaping around this pond that made for a hidden retreat. All in all it was one delightful surprise after another.

But the best part was when we got towards the end of the downstream flow of the creek and through the timber something caught my eye. We had pushed a herd of deer ahead of us and they were running across an open field. I don't know how many had run before we noticed them but my wife and I counted 14. So with those two bucks we had seen earlier we were now up to 16 deer we had seen, and my wife finally got a little understanding about how much I love what I do.

Yeah I sure miss sitting in a cubicle all day.

What would Grandpa tell you to do.

2008-01-25T10:30:00.000-08:00

Well I'm no financial expert. If I was I'd be writing this blog about traveling the caribbean from my beach from home in Cancun. And well, instead I'm writing it from the frozen plains. So if you are looking for great advice maybe I can link you to someone who can help.

But I know some folks who are smarter than me, and my grandfather was one of them. I'll bet this will sound like a lof of advice you've gotten from grandfathers. The first is "buy low, sell high" Well whether we are talking about real estate or stocks, now is the time to buy low. If you can buy now and don't in 18 months you'll probably wish you did.

The other thing Grandpa said was, "I had a chance to buy that ground 20 years ago for next to nothing, now look at what it's worth." Well unless you are over 75, today is the 20 years from now when you'll wish you'd bought some of these properties that will seem like they were just being given away. I can guarantee you in the rural real estate business I hear that one everyday.

Every now and then one of the folks whose land we've sold will tell us with a grin what they paid for some ground when they bought it, and how they almost didn't buy it because they were sure it was over priced.

Now my grandpa didn't say any of the following but they are still worth remembering. Mark Twain said, "buy land, they quit making it", and many people have said, "too soon old, too late smart. "

Top Ten Reasons People Should Be Buying

2008-01-23T07:26:00.000-08:00

1. SELECTION, SELECTION, SELECTION.
Regardless of price range, there are plenty of houses from which to choose. There's a great selection of attached homes, condos and townhouses. You can find large lots, small lots, and a lot that will accommodate your boat or RV. You have many options. When resale inventories are low, buyers are forced to make compromises. Not today.

2. NO BIDDING WARS.
In 2005, we knew one family who made offers on 10 homes. They lost the first nine to the feeding frenzy that existed in the market-other buyers bid the properties up substantially from the original listing prices. There were even escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There's no competitive bidding in the buyer's market of today.

3. YOU CAN MAKE AN OFFER.
A few years ago when you made an offer, the only question was how high above the list price you should reach in hopes of being the best offer on the table. Today the sell price vs. list price ratio is about 96 percent. Sellers won't be insulted if you "make them an offer they can't refuse."

4. PATIENCE IS TOLERATED.
In the hot seller's market, everything was rushed. You had to find a house before other buyers did, then hurry up and make the offer. Today, buyers can take their time. They can look at several homes and think about their decision for a while.

5. DUE DILIGENCE IS WELCOMED.
In this market, a buyer is encouraged to obtain a home inspection, termite inspection and appraisal. In 2005, many buyers waived these contingencies in order to gain an advantage.

6. PLENTY OF SPECS.
Buyers sometimes had to play games if they wanted a newly built home. There were lotteries and waiting lists. Some buyers even slept in their cars in order to get to the head of the line.

7. REPAIR REQUESTS ARE ACCEPTED.
After buyers complete a home inspection, they're allowed to submit a repair request to the sellers. But in the past, seller often insisted the home be sold as-is. Many times, there were back-up buyers waiting for the primary buyers to upset the sellers, whose home was increasing in value almost daily.

8. FEW, IF ANY INVESTORS.
It's estimated that one third of all sales in 2005 were to investors. These buyers caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.

9. LOCATION, LOCATION, LOCATION.
Today's buyers can find homes closer to work. In this market, reasonably priced homes are within biking or walking distance to schools, rapid transit lines and relatives.

10. REAL FINANCING IS AVAILABLE.
The "wink, wink" zero-down, no-doc, adjustable, sub-prime loans are gone. Fixed rates are back. FHA financing, first-time homeowner bond programs, and special loans for teachers or police officers are back in business. The bottom line: IT'S A GREAT TIME TO BUY REAL ESTATE!

copyright 2008 re/max International Inc., 1/22/08

Blogging

2008-01-18T07:03:00.000-08:00

Hey ya'll. Danicia here. I have only one correction to Bill's introduction. Which, by the way, it really makes my day when I can correct Bill as it doesn't happen very often. My truck is not a 1/2 ton is is a 1 ton dually. Just a quick reminder to all you horse people out there, with the weather soooooo cold, please make sure you heat your water tanks. Colic is 3 times more likely to happen in the winter months due to horses not wanting to drink ice cold water. It is very important for them to have clean warm water. Have a great weekend.

So this is how you do a blog?

2008-01-17T16:39:00.000-08:00

Welcome to the first blog of http://www.ruralkc.com/ If you haven't figured out what we are all about we are a real estate team that specializes in selling rural property near the greater Kansas City area. We are going to try and keep the sales stuff out of this blog as much as possible. But if we occasionally slip, well be patient with us, after all we are trying to make a living here.

We are luckier than most people because we love the rural life. So we don't just get to sell a piece of real estate we almost always sell someone their dream come true. It's the American dream to find a peaceful place in the country sort of like Thoreau's pond where you can really find yourself away from the noise and interruption of the city.

So let me introduce ourselves. If we've managed to get the picture posted properly you'll see a couple of folks sitting down. Of the folks sitting down I'm Bill Gaughan the old fat balding guy. Sitting beside me is my partner Danicia Duncan. I can already tell I'm going to get some emails saying that we should have named this "Beauty and the Beast" real estate, but Danicia is too kind to let that happen.

We formed this real estate team because we believe that you should do what you love and the money will follow. We both love the country, country living, and the value of country property as an investment. So the opportunity to combine what we love with our profession was just too great to pass up.

Danicia is our equine expert. She is an accomplished barrel racer, rider, horse owner, and all around equestrian. So when you have questions about horses or horse property she'd be the one I'd go to. She also drives a 1/2 ton, dual wheel, six speed, diesel, ram pick up, that intimidates my little Chevy Colorado. But that doesn't intimidate me near as much as her going full speed around a barrel on top of 1300 lb horse.

I like the outdoor recreational life. I grew up at a time when fishing and hunting were the past times of boys rather than video games. Frankly I consider my self a lot luckier than kids today who spend their time indoors rather than outside chasing frogs, and picking up turtles like I was able to do. Nothing much gives me more satisfaction than seeing a family purchasing a piece of property that their kids are going to able to run around on with no worries other than the occasional scraped knee or bee sting.

OK back to the picture. Standing is Jim Rogers. He's a pretty good old boy from Arkansas and you won't likely find a more honest diligent guy to help you find what you want than Jim. Standing next to Jim is Katie Morris. Frankly Katie keeps all of this together. She helps with the marketing, and advises us on the technology. Believe me it takes a lot of patience for her to work with us, We approach technology like someone hearing rattles in a pile of leaves. But bless her heart she smiles kindly and waits until I've left the room before she rolls her eyes at one of my lame questions.

Now we want to make this blog of interest to you. So you should know that I won't be the only only one blogging here. You'll hear a lot from Danicia as well. We want to answer your questions about country living, moving to the country, building in the country, where to find resources, or anything else that crosses your mind. We'll try to answer those questions in this blog. So email us at info@RuralKC.com or give us a call at 913-440-4139 and let us see if we can be of help.