2013 1 investment news

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2013 1 investment news

  1. 1. MAREI launches their 2nd monthly meeting. Starting January 2013, look for 2 monthly meetings. MID-AMERICA ASSOCIATION OF REAL ESTATE INVESTORS Investment News NETWORKING : EDUCATION : COMMUNITY : GOVERNMENT January 2013 Pa ge 10
  2. 2. CONTENTS Effective Mailing Lists How to locate and Create Effec- 8 tive Mailing Lists Embracing Mistakes Tom Zeeb, Traction REIA tells us 12 to Learn From Our Mistakes. Marketing Trends Important Trends in 2013 and 14 how to Capitalize on Them. Note Sales What you should know about 16 Note Sales. Anti –Redlining Did the Community Reinvestment 18 Act Cause the Housing Crisis. Every Issue 06 How I Did the Deal 10 Benefits at a Glance 14 Membership 20 Investment Opportunities 22 January Member Training 23 January Monthly Meetings 24 Monthly Calendar Web Exclusive @ Check out our Website MAREInet.com Contact us by Phone Emerging 913-815-0111 Trends in Email US info@MAREInet.com Real Estate 2013 Join The Conversation MAREInet.com/Blog MAREInet.com/ Trends2013 Join Association MAREInet.com/MembershipPage 2 MAREInet.com
  3. 3. SERVICES THAT PUT PROSAND INVESTORS FIRSTWith our FIRST for Pro initiative, The Home Depot is takingEven better care of our best customers. FAST IN AND OUT Time is money — we’ll get you back to work quickly.  Dedicated Pro Desk Associates.  Two hour advance order pulling. In Store Hands On—How To Workshops Want to learn How a project is completed. Check out our workshops.  In store workshops each month, check out our website and your local store.  Access step by step video 24-7 on our website—look for our Project Guide Library 10% Price Guarantee If you find a lower price on identical in-stock item  We will match the price & beat it by 10%.  Excludes special orders & bid pricing and others—see website for complete details. GREAT PRICES JUST FOR PROS We Offer everyday low prices, plus more ways to save on larger orders.  You can count on competitive pricing on everything in every department  Volume pricing discounts available on purchases as low as $2,500.  Instant bulk price savings available 1000s of items. SPECIAL DISCOUNTS FOR MAREI MAREI members receive special discounts at The Home Depot nationwide.  Two percent rebate paid twice a year on all purchases made through all registered accounts.  Twenty percent discount on selected paint brands.  Exclusive to members of National REIA. EXCLUSIVE PROJECT ESTIMATOR APP Coming in 2013, the Home Depot Project Estimator App for iPad, a business changing tool for National REIA Chapter members nationwide. Watch your local REIA Chapter for Investment News Page 3 more information.
  4. 4. Mid-America Association of Real Estate Investors The only National REIA Chapter in the Tri State Region Serving KS, MO & NE Honor’s of Merritt Winner National REIA Contact Information Awards of Excellence 2011 & 2012 PO Box 8685, Prairie Village KS, 66208 Phone: 913-815-0111 Email: info@MAREInet.com Read Newsletter Online Anytime MAREInet.com/Newsletter Our Mission Statement Mid-America Association of Real Estate Investors is dedicated to promoting ethical real estate investing and to protect and promote the best interest of our membership through educational Connect with us Online and networking opportunities as well as community, legislative and public relations. LinkedIn Group: Kansas City Real Estate Investors Legal Disclaimer MAREI does not exist to render and does not give legal, tax, economic or investment advice and disclaims all liability for the action or inaction taken or not as a result of communications from or to its members, officers, directors, employees and contractors. Each individual should consult Facebook Page: his/her own counsel, accountant and other advisors as to legal, tax, economic, investment and related matters concerning real estate and other investments. Kansas City Real Estate Investing Content Disclaimer Facebook.com/Groups The views and opinions expressed by authors of articles contributed to this newsletter do not necessarily reflect those of the association, the board of directors or the staff. Kansas City Real Estate: /kcrei/ Mid-Missouri Real Estate: /MidMo/ Advertise in the Investment News Omaha Real Estate: /OmahaRE/ Rate Schedule Topeka Real Estate: /TopekaRE/ Size Non-Member Member Business Associate Wichita Real Estate: /WichitaRE/ Full Page $175 $140 $115 Special Groups Facebook 1/2 Page $145 $105 $85 KCMO Water Dept Issues: /badbilling/ 1/4 Page $75 $65 $50 1/8 Page $55 $35 $25 MO Creative Finance Legislation Find us on Twitter A 10% discount is given on ads pre-paid for 6-12 months. Any changes to a pre-paid ad will incur a minimum charge of $20. The deadline to submit ad copy is the 1st of each month. All @MAREInet ads must be prepaid. Contact to verify ad format can be accepted. PDF preferred. There is an additional charge of $25 to typeset a business card ad or 1/4 page ad layout, $60 for a 1/2 Tweet #KCREI page or full page lay-out. Opportunities also exist for advertising on www.MAREInet.com. Call 913-815-0111 for more information. Email ad copy to info@MAREInet.com. Mail payment to MAREI, PO Box 8685, Prairie Village, KS 66208 or request an online payment for to use credit or debit card.Page 4 MAREInet.com
  5. 5. From carpeting to sheet vinyl, our representatives are trained to help you select the right floorcovering specific to your needs. For floorcovering for units, hallways, party rooms and even pool and exercise areas, Sherwin-Williams offers:  Wide selection of complete lines and leading brands, such as Armstrong® and Congoleum®.  Largest wholesale floorcovering network in the U.S.  Dedicated, fully stocked national network  Fast turnaround and reliable service Installation by professional, insured installers. Find a Sherwin-Williams Store Near You: SherwinWilliams.com Member Tip: Use your exclusive discount card from Mid-America Association of Real Estate Investors to get the absolute best pricing Sherwin Williams has to offer on all their products including floor cover- ings. If you have trouble keeping track of your Member Discount Card . . . Snap a photo with your smart phone of both sides and you will always have your discount card with you . . . If your Card Expires in 2012, you can request a new one from the MAREI office, we mail out new ones with your membership renewal and we post copies of the new card in the MAREI member Guide. Sherwin Williams Floor Covering Center 14531 W 101 Terrace : Lenexa, KS 66215 Phone: (913) 888-4909 : Fax: (913) 888-5003 Recycling: Carpet & Pad*Investment News Page 5
  6. 6. ow I di d the H Don & Kim Tucker www.GBIFunding.com D EA L! This deal was a package of 23 houses that were marketed did have was a huge buyer list and the ability to move in the area to a lot of investors for over a year. This deal the properties. So we made a rough intent to purchase has a ton of learning opportunities. at about 65% of the asking price on their spreadsheet if we could buy them over 5 months and one at a time. First this package of homes were rental homes owned by a With the properties under contract to buy I would then be local real estate investor who was murdered. He managed able to start marketing them for sale. everything himself and did not have a plan to deal with the rentals should anything happen to him. His left these 23 We toured the properties and ended up adjusting prices plus several others to his 16 year old daughter. down a bit more. The attorney drafted a contract be- tween us as buyers and the estate that we would buy the As there was no plan for his estate they went into probate properties one at a time and that in 5 months time we and his attorney, who really did not have any expertise in would have purchased all of the properties. We were managing properties took over. At the time of his death, I then able to start marketing the properties to wholesale believe that most were in good livable condition and were them. When we had a buyer, we would then purchase rented and cash flowing. The attorney ordered appraisals the property and immediately wholesale it to our buyer. and proceeded to market them at full appraisal price. The No money needed. attorney did not hire a property manager but attempted to maintain and collect rent themselves. Due to poor man- We also had in our agreement that we could change the agement, tenants moved out, houses went vacant and buyers name on the final individual purchase contracts. were vandalized, and the homes that stayed occupied did So some of these properties were wholesaled by our not have tenants that were very faithful about paying rent. company and some of them were actually purchased and Needless to say in less than 6 months the homes were wholesaled by our self directed IRAs. worth way less than the appraised values. Some other things we learned about—the joy of selling a They attorney also did not hire a Realtor to market the home where the previous owner was murdered. Selling properties. Granted he was a member of MAREI and new rental houses that had been rented to drug dealers. That investors, but his expertise was not in marketing of proper- two one bedroom houses side by side are not as easy to ties. His marketing was to send out an excel list of proper- sell as a duplex. ties and basic details and the appraised value. Any moti- We learned about seller financing as we ended up seller vation as to sale price was never really mentioned. financing 1 individual houses and the 2 side by side one This list hit our email quite often. We inquired as to what bedroom homes. We learned that seller financing is a the asking price was several times and were told that the great way to increase the number of potential buyers on appraised values were listed and to make an offer. I am home to sell it faster. sure this is what everyone else was being told and no one By the way, I am teaching two wholesaling workshops on was making an offer. January 26. If you decide to join me, we can talk about Finally after about a year of seeing this come across our this deal over lunch. See details about the workshop email I emailed back and said we were interested in the online at www.MAREInet.com/WorkShop or see page package if they could tell me a rough price, that we would 22. think about it. They came back with a price that was re- duced from the appraised values, but based on rough com- parables without seeing the properties, were just too high. My response was thanks for lowering the prices, but I How I did the deal is back, submit your deals to would need to be about 65% less. This was about 2007, info@MAREInet.com. Deals selected for publi- so prices were quite a bit higher, but prices are not really cation will receive a $25 credit on account to relevant. What was important was that I really had no way to actually purchase these properties with cash. What we apply to trainign workshops.Page 6 MAREInet.com
  7. 7. Cornerstone Foundation Repair Kansas Cities Real Estate Investor’s #1 Foundation Repair Contractor Steel Push to Bedrock Piers @ $850 ea Steel Wall Restraints Starting @ $180 ea Crack Injection @ $25 per foot Sump Pumps @ $800 each Property ManagementWe are proud to say that we have become real Rental Servicesestate investors 1st call for major foundationrepair issues. We offer 25 year and lifetime Kansas City Metrotransferable warranties for piering only. Joe Williams www.JamiesonHomeTeam.com ConerstoneFoundationRepair@yahoo.com Kevin Jamieson 913-220-5253 816-503-4671 Ask about our Investor Pricing Selling on Terms? Need Cash Now? The best place on the entire We specialize in the purchase of owner financedplanet to buy kitchen cabinets. notes and contracts from real estate investors We Have The Best Prices across the nation. By selling on terms you create a note or contract which can be sold for cash. We Everything Is In Stock can purchase all or part of your payments right at the closing table to provide you with your profits in We Ship Fast cash now so you can move on to your next deal. Free Design Help Request a Quote Today! www.CabinetGiant.com Email us at info@GBIFunding.com Josh Burns 1-877-484-4268 GBIFunding.comInvestment News Page 7
  8. 8. Effective Mailing Lists How to Locate & Create Kathy Kennebrook The Marketing Magic LadyWhere can I find a good mailing list to find moti- direct mail because they think the list is toovated sellers? How can I create my own list to difficult to get, or they only send the mailingsfind highly motivated sellers? These are the big once and quit. They don’t take the time to cre-questions that I get a lot from Real Estate Inves- ate the machine that will bring them deal aftertors! The true secret to success for a Real Estate deal.Investor is finding sellers who really need to sell. These are some of the easiest lists for you toI use different direct mail campaigns to locate get and it will be very profitable for you to dodifferent types of motivated sellers: out of state so. You can contact a list broker or your localowners, properties quit-claimed from one person property assessor’s office and ask them forto another, expired listings, burned out land- these lists, or you can create the lists yourself.lords, vacant properties, military transfers, and It’s fairly easy to do. You can go to the court-pre-foreclosures, just to name a few. house and research divorce cases, death notic-The best part is that you can customize your di- es, liens and judgments, tax liens, marriagerect mail piece and your list to reach exactly the licenses, bankruptcies or Lis Pendens, which iskinds of motivated sellers you want to deal with the first step toward foreclosure. Let me sharein order to create the kinds of deals you want for a few pointers here.your real estate investing business. This is best  Do your homework when picking a list bro-done by locating mailing lists and refining them ker. How current is the list? Does it have allto meet your individual criteria, then mailing to the information you need to create your di-these potential sellers again and again, thus cre- rect mail campaign? Does it reach the audi-ating a multitude of profitable deals. ence you are targeting?Investors often neglect to market to sellers using  Do a test mailing of 100 pieces to test anyPage 8 MAREInet.com
  9. 9. new list. How many re- just another way to build ongo- relationship with your target sponses did you get? How ing lead sources using direct market, which makes it easy for many letters came back mail. You only have to create you to follow up with formerly with a bad address? this direct mail campaign once inflexible or unmotivated to create an ongoing source of sellers. Since these mailings are Don’t waste your marketing leads for your Real Estate In- so targeted and so residual, dollars marketing to a bad vesting business. there is virtually no competition list that won’t get you the for these properties. It puts result you want. If you own any kind of business your lead generating system on and you need certain types of Create continuity with your “auto-pilot,” leaving you more leads, think about unique re- direct mail campaigns. You time to make offers, do more sources that can provide you can mail a lot of letters or a deals, and make more money. with the leads you need and few letters but you need to create a direct mail campaign Most importantly, be consistent have a flow of mail going targeting these resources. This in all your efforts. The success- out at all times in order to can be really profitable. For ex- ful Real Estate Investor has a create a funnel of incoming ample; if you own an alarm network of people and strate- leads. company or a lawn mainte- gies at their fingertips at all Never mail more pieces than nance service it would behoove times. If you don’t develop con- you are comfortable getting you to create a direct mail cam- tinuity to your marketing cam- responses to. If you do a paign targeting owners of prop- paigns, you’ll see your results huge mailing and you get erties in your area who live out begin to drop off immediately. tons of responses you can’t of state. These are potential This is true no matter what get to, you are wasting mar- customers who need your ser- business you are using direct keting dollars. Put systems vices. mail to target to. in place to help you respond The main reason that direct When you implement multiple to the mailings and grow mail works so well is that you techniques and several different your business gradually. are reaching highly targeted direct mail campaigns, you willAnother way to find motivated leads. You become the potential have more opportunities thansellers is to cultivate relation- seller’s first option when they you’ll be able to handle and theships with individuals who can need to sell. Even if you are on possibilities become almosthelp you find deals. One of the a limited budget, direct mail is endless. Using direct mail toways I do this is to create a di- an excellent source of leads for develop a “cookie cutter” sys-rect mail campaign targeting you since you can buy more tem to accomplish this is one ofattorneys who handle family houses from fewer leads, thus the most affordable, reliable,law, estate planning and pro- maximizing your marketing dol- and effective ways I know tobate law, divorce and marital lars. As your business grows, build your lead base quickly andlaw, and corporation and busi- you can increase the number of have all the business you willness law and I let them know mailings you do. You can also ever need.we are in the business of buy- target specific neighborhoods or Be sure and visit my website ating houses. dominate certain parts of town. www.marketingmagiclady.com for all the In doing so, you become a information you need on developing highly Once you develop relationships “property value expert” in those effective direct mail campaigns and findingwith some of these attorneys, all the list brokers you need to increase areas, which makes the offer- the number of leads coming into your realthey will call you when they making process that much easi- estate business. I have done all the workhave a client who needs to sell er for you. for you and can provide you with all thea property quickly no matter tools you need to be successful using di-what condition it’s in. This is You end up creating an ongoing rect mail in your business. Investment News Page 9
  10. 10. MAREI’S MEMBER BENEFITS PROGRAM YOUR MEMBER BENEFITS AT-A-GLANCE USE THIS PAGE AS A GUIDE TO VALUE ADDED DISCOUNTS TOOLS AND SAVINGS CREATED JUST FOR YOU ON GOODS AND SERVICES YOU USE EVERY DAY.Landlord Services Suppliers News & Information E-Update MAREI’s award winning weekly email update with what’s happening in real estate including properties for sale, gov-Screening for tenants & workers with ernment affairs and local market data. 20% discount for members. Learn how to save money at Home De- pot and register for a 2% Rebate for all Investment News purchases & rentals across the US. FORMS & DOCS Plus 20% Discount on Paint in Kansas The award winning newsletter for Mid-Member Library is packed with forms City. And coming in 2013 the New America Association of Real Estate In-and docs, plus 15 % discount at EZ Home Depot App for iPad exclusively for vestors: published monthly and distrib-Landlord Forms for premium forms. Chapter Members to use in project esti- uted both in print at our meetings and mation on home repair and remodel. digitally to our database of over 5000 people. One of the best ways to get your message in front of a targeted group of real estate professionals.Market your rentals on the nations topranked rental site. Member discount All members receive a discount card is 20% off Regular Prices. to access our exclusive discounts up to 40% off all paint, supplies, and flooring—nationwide.Office Solutions Marketing Magazine for the real estate investor. With discount subscriptions for MAREI members and FREE copies available at our monthly meetings.Save on select FedEx Office copy andprint services up to 20% and on Fed- Ex Shipping up to 22%. Websites for investors, landlords, and other services. FREE trial.Receive discounts up to 65% on over Free issues of both magazines 12,000 products you use the most available at the monthly online and in store. Email and Social Media Marketing, Free meetings of MAREI. Trial and Discounts for paying in ad- vance.Page 10 MAREInet.com
  11. 11. Other Discounts Member Service We have several services as part of our website to help you grow MAREI’s Political Advocacy Group your business. actively monitors national legisla- tion and rule-making that im- pacts the real estate industry and harnessing the strength of MAREI Nearly 70% of QuickBooks users say members at the grassroots level.that it makes their business more prof- itable. Get your Accounting on track. Buy at a 20% discount our special MAREI mem- links from the MAREI Web Site. bers also re- ceive timely Calls to Action REAL ESTATE BOOKS Calendar of Events to stay up to when there is a date with all of our activities. The nation’s largest provider of time for our real estate training materi- members to als, DEARBORN is America’s take action on Premier Real Estate Publish- an important vote. er. Members receive up to 40% off. Members also have access to the latest Browse the member properties to in Market Da- find your next deal. Take the ta. time to post your investment op- portunities for other members Special member discounts for and site visitors to browse. members at Avis, Budget, and Enterprise Rentals. VISIT ww.MAREInet.com The Member Library is packed Look under Resources & and ever growing with pdf ver- Members Only The Local Market Monitor tracks real estate sales and economic sions of entire books, EBooks, trends nation wide. Offering Articles, Forms, and Documents. 25% Discount for Members. Investment News Page 11
  12. 12. Embracing Mistakes and Learning from Failure Tom Zeeb Traction REIA.com Are you the kind of person who hates making constantly learn more and improve yourself a mistake? Would you rather not take any and you will achieve the success you are action than risk making a mistake? Does the striving for. thought of messing up and making a mistake Try letting your advance worrying become make you want to crawl into a hole and advance thinking and planning. Action is by hide? far the greatest fear killer. DROP THIS HABIT RIGHT NOW! Get in over your head and swim to the top. It is often said that success lies just past fail- Nothing worth having in life comes easy. Cli- ure. Therefore, you will never succeed if you ché? Yes. But it is true. do not fail first. Think about how very little you appreciate Get this fact into your head and recognize the things in life that came easily to you, but that it is through your mistakes that you will how much pride and respect you have for learn discipline, toughness, persistence and things that you fought for or struggled to at- what it takes to succeed. tain. You simply cannot be successful if you do not This isn’t true just for material things, it is make mistakes. Errors, mistakes and adver- also true for the more important things in sity are far better teachers than success. life, like health and relationships. Success is going from failure to failure with- Successful athletes, mountain climbers, busi- out losing enthusiasm. Stay in the game and ness owners, husbands, wives and parentsPage 12 MAREInet.com
  13. 13. all know that they wouldn’t be where they are Tom Zeeb has been featured by CNBC, Thetoday if they hadn’t gone through some rough Washington Post, Kiplingers Magazine, Thetimes. Washington Examiner, Financial Lifeline Radio and National Real Estate Investors Associa-Winston Churchill once said, “This is no time tions Magazine among others. He is the Presi-for ease and comfort. It is time to dare and dent of the former Capital Area REIA, the Re-endure”. cipient of the National REIA "2010 & 2011So dive in. Accept that you will make some Honors of Merit" and the "2009 Award of Ex-mistakes, but acknowledge that you will learn cellence" for Best Real Estate Investor Associa-from them and get better and stronger in tion! Capital Area REIA now known as Tractionbusiness or whatever endeavor you are pur- REIA serves the Greater Washington DC Metro Area.suing. Www.CoffeltLandTitle.com www.APIAProtects.com For title, escrow, 1(877) 752-2742 1031 & foreclosure. Lisa Goodner Because APIA sells only Real Estate Owned (REO) and Forced Lender insurance coverage, weve become the industry leader in providing comprehensive, affordable coverage to inves- tors, financial institutions and mortgage compa- nies. Our company specializes in Real Estate Owned (REO) and Forced Lender insurance coverage for property investors, servicers, financial insti- tutions and mortgage companies. Standard in- surance companies also turn to us for our ser- vices. Bud Whisler 816-380-3441 Investment News Page 13
  14. 14. Marketing Trends Important 2013 Marketing Trends wаѕ used on just 8.2 million and How to Capitalize on them mobile devices in this period, іt shows a һυɡе level οf activi- Duncan Wierman ty bу tһеіr mobile audience. WһіƖе tһе headline figures аrе hugely exciting, іt’s On Tuesday last week, London hosted tһе Local і‫ח‬tеrеѕtі‫ח‬ɡ tο note tһаt ο‫ח‬Ɩу 10% οf Internet usage Social Summit 2012, tһе fourth year tһіѕ ɡrеаt іѕ done on mobile,** ѕο a lot fewer pages/visits (а ԁ‫ח‬growing) summit һаѕ bее ‫ח‬рυt ο.‫ח‬ аrе being consumed bу mobile users. AƖѕο, tһе I want tο υѕе tһіѕ post tο highlight ѕοmе signifi- mοѕt рοрυƖаr рƖасе fοr using a smartphone іѕ in cant trends discussed аt tһе Summit. I аƖѕο want the home. Sο, wһіƖе mobile іѕ undeniably a game tο warn tһаt tһе rapid pace οf innovation mау in- changer , tһе behavior οf mobile users isn’t neces- deed leave real estate investors, agents, business- sarily wһаt wе mіɡһt presume іt tο bе. es struggling tο keep up. *Based ο ‫ח‬number οf users accessing Internet ο ‫ח‬a mobile Key Trends device **Based ο ‫ח‬number οf pages consumed ο ‫ח‬a mobile device 1. Mobile іѕ king Tһе Rise οf ‘Local Discovery’ 2. Rise οf ‘Local Discovery’ ‘Local Discovery’ іѕ а ‫ח‬evolution οf ‘Local Search.’ Data Purity & Ubiquity Tһе ԁіffеrе‫ח‬се being tһаt ‘Search’ іѕ broad and Mobile Iѕ King requires tһе user tο invest time and effort і ‫ח‬ narrowing down and identifying tһе content tһеу Tһіѕ topic һаѕ bее ‫ח‬done tο death, ѕο I’m ‫ח‬οt going want. tο dwell ο ‫ח‬іt tοο much. Wе ѕһουƖԁ һаνе аƖƖ read tһе key facts bу now, bυt аѕ a qυісk refresher: ‘Discovery’ іѕ аbουt presenting users wіtһ pre- filtered results based on tһеіr preferences, location  Mobile Internet usage tο surpass desktop Inter- and οtһеr elements οf personalization. It means net usage і‫4102 ח‬ less effort on tһе part οf user, more curation аnd  50% οf smartphone users һаνе used a local editorial involvement bу site/application owners. app It’s hard tο ԁο tһіѕ well ο ‫ח‬large sites wһісһ cover a broad set οf verticals а ԁ‫ח‬locations (e.g.,  Mobile advertising spend tο hit US$15 billion і ‫ח‬ Superpages, YP.com) bесаυѕе οf tһе need fοr de- 2015 wаѕ US $1 billion in 2014* tailed understanding οf each industry οr market. Anecdotally, a representative frοm Yelp tοƖԁ every- Fοr a consumer tο рυt tһеіr trust і ‫ח‬a service wһісһ one tһаt approx 45% οf searches ο ‫ח‬Yelp аrе done pre-filters results, tһе consumer needs tο know via tһеіr mobile apps. Given tһаt Yelp һаԁ 84 mil- tһаt site/app іѕ a specialist і ‫ח‬tһеіr field. lion unique visitors і‫ח‬in Q3, 2012, wһіƖе tһеіr appPage 14 MAREInet.com
  15. 15. Marketing Tips fοr real es- Google maps on уουr PC (all users. Sο, іf уουr information іѕtate investors : Keep a look differences aside). And many οf inaccurate οr (worse) absentout fοr ‫ח‬еw sites and mobile tһе data aggregators wһісһ sup- frοm a site, tһе ‫ח‬уου wіƖƖ bеapps wһісһ аrе dedicated tο ply business info tο websites missing out ο ‫ח‬more а ԁ‫ח‬moreуουr industry and city. Mаkе аƖѕο feed mobile sites а ԁ‫ח‬ potential customers.sure уουr business іѕ correctly applications — wіtһ a few others Marketing Tips fοr real es-listed ontһеm (see ‘Data Purity wһісһ уου mау ‫ח‬οt һаνе tate investors: Double уουr& Ubiquity’ below) and engage considered (e.g., TomTom feeds citation efforts ѕο tһаt уου сƖеа‫ח‬wіtһ tһеѕе sites tο supply deals і‫ח‬tο Apple Maps, Nokia һаѕ іtѕ incorrect listings and build outand content wһісһ wіƖƖ convert οw ‫ח‬solution) ‫ח‬еw listings on data aggregatorstһеіr users і‫ח‬tο уουr customers. Wе аƖƖ appreciate tһе need tο and directories. Bе sure tο addData Purity & Ubiquity build ‘citations’ and ensure tһаt уου listings tο services tһе data shared аbουt ουr busi- like TomTom & Nokia ѕο уουWһіƖе tһе mobile Web and tһе ness іѕ ассυrаtе and consistent ɡеt і‫ח‬tο tһеіr ecosystem а ԁ‫ח‬desktop Web mау compete wіtһ асrοѕѕ аѕ many directories data supply chain.each οtһеr fοr a user’s time, tһе and ԁ‫ח‬data aggregators аѕdata wһісһ drives tһеm іѕ es- —- possible.sentially tһе same. Reprinted from Duncan Well… tһіѕ task јυѕt ɡοt moreYelp’s apps υѕе tһе same data- Wierman’s website DuncanWier- іmрοrtа‫ח‬t. Mobile Internet users man.com—published originallybase аѕ yelp.com. Google maps consume less pages and takeapp uses tһе same database аѕ on November 25th. action qυісkеr than PC Web New & Renewing MEMBERSRenewing New Members  Christoph Becker: Overland, KS (since 2010)  Jim Brashears: Shawnee, KS  Rebecca Flaig: Overland, KS  Christina Kanas: Grandview, MO (since 2006)  Thomas & Sylvia Gill: Kansas City, MO  Brenda Linstra: Kansas City, MO (since 2009)  Bill Kennedy: Greenwood, MO  Kyle Luetjen: Overland, KS  Curt Linstra: Kansas City, MO (since 2009)  Tim McCleary: Shawnee, KS  Brett & Brenda Richman: Kansas City, MO  Matthew Ritvo: Oak Park, CA  Austin Siemens: Olathe, KS  Jeanann Spore: Overland, KS Investment News Page 15
  16. 16. Note Sales: What You Should know DiAnna Jackman Reprinted from Azreia.org Chicago Title Due to the current lack of inventory, many in- are buying the vestors have been thinking outside the box to ability to exer- obtain investment property in the valley. One cise the rights thing I have started to see more and more of granted to the are note sale transactions. To most, note sales beneficiary to seem like easy money but there are a lot of foreclose on the twists and turns that you need to be careful of. loan. Keep in I would highly recommend if you are new to mind though that in order to foreclose, the working with these types of transactions that substituted trustee must be able to define the you have an agent or attorney assist you. default, and the trustee must be able to sub- stantiate the terms of the note and define the As the purchaser of a non performing note, you default. If you miss one item you have just will need to collect a lot of information from bought a piece of paper not worth much more the seller of the note. These items would be to you than the ink it is written on. You have to things like the promissory note, the deed of remember as the purchaser of a non perform- trust, the assignment of beneficial interest, etc. ing note you are stepping into the shoes of the One of the things I have seen that will kill the lender. Arizona revised statute 813-D reads deal is when the buyer fails to obtain the finan- that the trustor (borrower) or any person with cial status of the account. Usually the lender a recorded interest in the property shall have will supply a payoff statement for you to pre- the right to expect from the trustee the exact sent to the trustee but the best thing is to amount necessary to reinstate the trust deed, have an account statement that discloses the separately specifying costs, fees and any other payment history of the account. When you are amounts that are required to be paid as a con- buying a non performing note, typically youPage 16 MAREInet.com
  17. 17. dition to the reinstatement of sense and use your experts to has many experienced Escrowthe trust deed. You do not help do it right. As with any Officers for these types ofwant to give any opportunity transaction, I do not recom- transactions and it is IM-to the trustor to object to the mend you close a note sale PERITAVE that you work withcompletion of the trustee sale. without title insurance. You someone that knows how toYou really do not want to fight would be buying a loan policy close this type of transac-it out in court. If you get all instead of an owner’s policy tion. Title insurance will addthe information prior to close because you are considered a an additional (and in myand use a trustee that knows lender not an owner. Title in- eyes), an invaluable layer ofwhat they are doing (you can surance will ensure you have protection from the unknown.always ask your favorite title no liens that would cause you Remember, Chicago Title iscompany for a referral), note a headache in the foreclosure here to help with anythingsales can be very lucrative. process and that you are not you need and just a phone inheriting anything that wouldRemember as you approach call away! survive the trustee sale likenew investment opportunities city liens, etc. Chicago Titlekeep your same business HOUSES WANTED accurate  Built After 1950 Minimum 3 Bed, 1.5 Bath Accurate Closings: Smooth, Timely, Professional. Eastern Jackson County Title Services Provided for: MO or Johnson County KS  FSBO, Wholesale, & REO Transactions  New Construction Closings Retail Value $100k-$200k  Commercial Purchases and Refinance  All Types of Loan Closings  1031 Exchanges No Rental Local Cash Buyer Looking for 2 to 4 Houses a month to purchase, rehab and sell. Money Partners want their money placed quickly so  FHA, VA, USDA, Conventional Loans, and they can turn their money fast and make a profit. Can’t do that Hard Money Loan Closings with out houses! Bring us a deal!  Refinance & Reverse Mortgages  Doc Prep, Prelim HUDS, Curing Issues Email: kcmoHomeBuyer@gmail.com  Short Sale Closing & Assistance Submit Online: kcmoHomeBuyer.com  100 Years of Combined Service! www.AccurateTitleCo.com 913-338-0100 phone Investment News Page 17
  18. 18. Anti Redlining Redlining is the practice of denying, or charging Did it cause this mess? more for services such as banking, insurance, ac- cess to healthcare, stores, jobs to residents of a particular, often racially determined areas. The Lenders that were not under the quotes to meet the term “redlining refers to the practice of marking a CRA lender requirements, like Countrywide also map in red to show the areas where banks would jumped into the party too. Countrywide and other not invest or lend. lenders that were regulated by HUD signed con- tracts with the government supporting lending prac- In 1977, the Community Reinvestment Act, an anti- tices similar to the CRA rules. redlining law that went into effect. It was updated in 1995 and again in 2005. Since subprime mort- The report shows that Banks that did not meet the gage crisis and the resulting recession, the question lending quotas were denied plans for merger and has been, did the Community Reinvestment Act other penalties until they pledged to make more (CRA) cause the whole mess. Democrats and many loans to help credit challenged and poor minorities. media say no, but a recent study by the National Some banks, such as Washington Mutual say that Bureau of Economic Research finds that by follow- they wanted to tighten lending standards, but were ing the CRA banks got into riskier lending. afraid they would not be able to meet their CRA rat- ing. In short banks were required to serve all their cus- tomers from all neighborhoods in the areas where They were out there making loans after loans with they were in business, including the areas where ever increasing easy standards. The more loans low and moderate income. Banks were required to they made available to credit challenged people, the make affordable housing loans. Congress forced more buyers in the market buying houses and the Fannie Mae and Freddie Mac to back more and higher the prices of homes kept going . . . . . and more CRA grade loans and had HUD enforce quotas the bubble was growing, and the growing selling of with fines if they were not met. these loans on wall street as very complicated secu- rities. The securities in turn were pledged to bor- They ran into a problem. With quality underwriting row short term money by the big Wall Street Banks. standards, they could not qualify the borrowers in the low and moderate income areas at a rate that Then when these poorly underwritten loans started would allow them to meet the quotas. So Fannie going bad in droves, the big banks could not renew and Freddie went to work and came up with new the short term loans, could not get credit and that’s loan products with much looser lending standards. when first banks Bear Stearns and Lehman failed. In 2000, Fannie went to the lenders and told them Here in Kansas City our urban cores were devastat- to use the new mortgages with less than 3% down ed by the very loans that were being offered to help and flexible underwriting so Fannie could buy up the area. Banks using fancy loan products that had the loans, meet their quotas and then package almost no lending standards made loans to borrow- them and sell them as Securities. ers with very marginal credit. For example theyPage 18 MAREInet.com
  19. 19. would offer a loan with a low in- The real estate investor was pro- houses. Cutting out the majoritytroductory rate that would be set vided just as out of whack loans. of the buyers in our urban core meant that there were a lot fewerto adjust up in 2 to 3 years, the Only here, the investor did have buyers for those foreclosures.quote to the borrow being that in “good” credit, but no reportable Priced dropped . . . what would2 to 3 years you will be earning income. So in came the liar loan have sold for $80,000 tomore money and have better where the investor who had good $100,000 at the high droppedcredit you will be able to re- credit could basically make up a down to $15,000 to $20,000 at the low as the only one buyingfinance out. Never mind that the income number with nothing to was the investor buyer who hadpeople getting these loans had substantiate it and get a loan. cash.poor work history and a very So as the urban core was one of While having a law against notlengthy history of bad credit and the lowest priced homes availa- offering loans period in a specificno one was helping them im- ble, they were buying up houses area is good, having one withprove their income or credit so and putting tenants in them for quotas that require banks tothey would be able to refinance cheap and pulling cash out of the make loans and lowering stand- ards to be able to do so is reallyin 2 to 3 years. When the 2 to 3 house with a liar loan cash out stupid. What would have helpedyear time frame came, the loans refinance. The demand by the would have been those banksstarted adjusting their rates up investor further raised the value and lenders saying, “Hey wait aand the defaults started and of the homes. minute, let’s modify those loansgrew. in an effort to keep from a glut of When the home owners started bad loans all at once” But noAll these newly made borrowers defaulting in the urban core, the way no how were they going to banks choose to foreclose and do that back in 2008 and 2009.that really could not afford to buy start tightening lending stand- Today, they would love to modifya home and did not have the ards. Tightened standards meant the loan and keep in performingcredit to handle a home loan, in- no more loans for the home as long as they can . . . but hindcreased demand for our urban owners with no money down and sight is 20/20.core. More demand made the questionable credit and the stat- ed income loan. These two loans Learn more . . . Googleprices go up and up. Enter our were how the majority of the “Community Reinvestment Act”fellow real estate investors. buyers in our urban core bought and “Risky Lending.” Webinar! Communications Expert & Real Estate Investor Bill Twyford What to Say! Property Management How to Say It! With everyone offering you the next, best, Section 8 Housing “make a million dollars while you sleep” KC Metro Wide program – people have forgotten that this is a people business and without the proper COMMUNICATION SKILLS you are dead in the water! Jeff Woods Register: MAREInet.com/Webinar Broker Thursday January 10th www.MyPremierLeasing.com 8pm CST No Charge 816-849500 Investment News Page 19
  20. 20. 2803 S Norwood $59,900 3 Bed Renovated & Ready Scott Tucker Independence, MO 1 Bath for your Tenant Realty Resource Crawl RealtyResourceKC.com 816-523-4400 2120 SE 3rd St $135,000 3 Bed Updated, 3 bedroom John Welchert Lee’s Summit, MO 2 Bath 2 bath raised ranch in Platinum Realty Lees Summit. MLS# 816-522-0002 1807386 6149 Harvard $89,900 4 Bed Two Living Spaces, Scott Tucker Raytown, MO 3 Bath Pre-Negotiated Short Realty Resource Ranch Sale RealtyResourceKC.com 816-523-4400 438 S. Kentucky Ave. $22,000 3 Bed Great Cash Flow Chad Independence, MO 2 bath Potential, raised HomeRemedyKC Partial ranch, 20% ROI HomeRemedyKC.com Bsmt 913-735-5598 803 S Brookside Av $20,000 2 bed Cash Cow Inde- Christoph Becker Independence, MO 1 Bath pendence Whole- Blueprint Properties, Inc Full sale Deal 50% un- BlueprintPropertySoltions.com Bsmt der market value! (816) 419-1165 3301 Bales $10,000 3 Bed Rehabbed about a Christoph Becker Kansas City, MO 1.5 Bath year ago. Va- Blueprint Properties, Inc 2 Sty cant.eeds TLC to BlueprintPropertySoltions.com bring back to life. (816) 419-1165 3343 Bellefontaine Ave $34,500 3 bed Newly Rehabbed Christoph Becker Kansas City, MO 1 bath Kansas City IN- Blueprint Properties, Inc Full VESTMENT PROP- BlueprintPropertySoltions.com Bsmt ERTY 20% NET ROI (816) 419-1165 3829 Benton Blvd, $39,500 3 Bed FRESH REHAB Christoph Becker Kansas City, MO 1.5 Bath Prestigious BEN- Blueprint Properties, Inc TON BLVD. 20% BlueprintPropertySoltions.com NET ROI (816) 419-1165 7708 E 110th St $19,500 3 Bed Structurally Sound Christoph Becker Kansas City, MO 2Bath Ruskin Fixer Upper Blueprint Properties, Inc Ranch in need of Remod- BlueprintPropertySoltions.com eling/Rehab TLC (816) 419-1165Page 20 MAREInet.com
  21. 21. MAREI Member PropertiesMAREInet.com/Properties 836 E 82nd St, $53,000 3 Bed South KC Super Hot Christoph Becker Kansas City, MO 2.5 Bath Deal! 50% under Blueprint Properties, Inc Full Bsmt market value E. 82nd BlueprintPropertySoltions.com St. 3bd 2.5ba (816) 419-1165 3810 College Ave, $20,000 3 Bed 90% Rehabbed – Christoph Becker Kansas City, MO 2 Bath 3brm, 2bath Whole- Blueprint Properties, Inc sale Midtown Proper- BlueprintPropertySoltions.com ty (816) 419-1165 5527 Euclid Ave, $29,500 3 Bed 55th & Euclid Com- Christoph Becker Kansas City, MO 1 Bath pletely Rehabbed of- Blueprint Properties, Inc fering a proposed BlueprintPropertySoltions.com NET ROI of 23% (816) 419-1165 11325 Sycamore Tr, $39,000 3 Bed Ruskin Gem Turn- Christoph Becker Kansas City, MO 1 Bath Key 19%NET ROI – Blueprint Properties, Inc INVESTMENT PROP- BlueprintPropertySoltions.com ERTY (816) 419-1165 703 S Cherry St, $24,000 3 Bed OLATHE Fixer Upper Christoph Becker Olathe, KS 1 Bath+ Only $24K! -Priced Blueprint Properties, Inc 1 partial To Sell – Huge Profit BlueprintPropertySoltions.com Potential (816) 419-1165 5839 Euclid Ave, $29,500 3 Bed 3bdrm KC Invest- Christoph Becker Kansas City, MO 1 Bath ment Property Turn- Blueprint Properties, Inc Key 19% NET ROI BlueprintPropertySoltions.com (816) 419-1165 806 S Scott $75,000 4 Bed Great for first time Mike or Terea Moeller, Belton, MO 2 Bath home buyer, Rehab- Laura & Donna Bullock Finished ber or landlord to memoeller@att.net bsmt hold, built in equity 816–509–3771 4021 Crossgate Ct $125,000 2 Bed Great Rental or Michelle Frye Lawrence, KS 2 Bath home for your KU Reece & Nichols Loft STudent 785-608-9106 Your Property Here, MAREI members post your properties online. Must include an address, price and contact information and it will appear at least once in the newsletter.Investment News Page 21
  22. 22. January Workshops Wholesaling 101 & 102 Wholesaling Real Estate is the real estate niche whereby investors market to find motivated sellersand negotiate a purchase price and at the same time match that house up with an end buyer. Inmost cases, no money is needed to complete the transaction on the wholesale investors part ortransactional funding can be used.For new investors just getting started wholesaling is a technique that will serve you well in all theother niche as it involves mastering the art of finding really good deals that you can wholesale toother investors (or cherry pick the best and wholesale the rest) .This Saturday features 2 workshops: Wholesaling 101: Wholesaling 102: Getting Started Marketing for Motivated Sellers 1. What is a Wholesale Deal? 1. What is a Motivated Seller 2. What are the best houses? 2. Where do you Find Motivated Sellers 3. How much to pay? 3. Marketing For Motivated Sellers 4. How do you get paid? 4. Websites 5. What happens at closing 5. Direct Mail Marketing 6. Who Should be on your Buyers List 6. Craigslist Advertising 7. How to Build a Buyers List - Fast 7. Screening Sellers 8. 8:30 to Noon 8. 1pm to 4:30 Each qualifies for 2 Hours of PHP Credit (Purchasing for 101 and Marketing for 102) Each Cost $30 for MAREI members / $45 for Non-MembersRegistration Information for Saturday Workshop1 Workshop Member $30  Both Member $55 1 Workshop Non-Member $55 Both Non-Members $85________________________________________ ____________________________________Attendee 1 Email________________________________________ ______________________________________Address City State Zip________________________________________ ______________________________________Phone Fax________________________________________ _________________ Expire DateCredit Card Number Scan & Email to info@MAREInet.com ___________________________________ Fax: 1-201-574-2969 (email first) Signature Call 913-815-0111 Online www.MAREInet.com/WorkShop
  23. 23. January! Monthly Meetings KC North: The Top 10 Ways to find Real Estate Deals As we learned at the MAREI KC South North Kansas City meeting in December, the Real Estate Community Center Industry has changed immensely in the 1999 Iron Street past year. Home Buyers and Investors are paying cash more causing more de- Kansas City, MO mand for REO properties. Banks are not foreclosing and selling the notes, Times: lowering the number of REO proper- ties. So with more demand and less Thursday January 3rd: 6pm to 9pm supply, the price is going up. So finding 6:00 Registration & Networking non MLS deals is going to be even more important going for- 7:00 Deal a Minute ward than it has in the past. 7:15 Presentation Join us tonight to find out what’s working and what’s not 8:45 Final 15 Networking working when it comes to finding deals. MAREInet.com/KCNorthThe Top 3 Mistakes that New Investors Make KC South: The December meeting was packed Career Education Systems with so much information that we could not fit it all into one meeting. So we Ward Parkway Shopping Center asked Debra Felderhoff to come back in 8600 Ward Parkway January and share her top 3 (or more) Kansas City, MO mistakes new investors make. We wanted to make sure she had time to share her knowledge and answer your Times: questions. Tuesday Jan 8th: 6pm to 9pm You may know Deb from past appear- 6:00 Registration & Networking ances on guest panels at MAREI as well as from her networking groups on Sat- 7:00 Haves & Wants urday and Sunday. She is in the medi- 7:15 Presentation cal field by day and later afternoons 8:45 Final 15 Networkingand weekends she devotes to her full time real estate businessand helping other investors. Deb’s expertise lies in creative pur-chase with very little if any money in the deal and then renting or selling them lease to own andkeeping all of her very many units occupied.If you are just getting started in real estate and want to see how a real live local investor doesher deals, please join us to learn from Debra. If you have some specific questions, please comeearly or stay late to ask. MAREI.com/KCSouth
  24. 24. Subscribe & Sync MAREInet.com/Calendar The MAREI calendar is hosted on Google Calendars. This allows you to subscribe to our calendar and sync it with your own Google Calendar, Mobile Calendar, or Outlook Calendars. Check calendar for times and locations. January 2013Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 SG: Weekly Wed. KC Northland on the SG: Connected Inves- SG: Blue Springs / Networking 1st Thursday of the tors Independence Inv. Month6 7 8 9 10 11 12SG: Lees Summit Deadline: Vendor KC Metro South on SG: Weekly Wed. NLP Webinar with Bill SG: Blue Springs /Investors Network Tables for KC South the 2nd Tuesday of Networking Twyford Independence Inv. Meeting the Month13 14 15 16 17 18 19SG: Lees Summit SG: Weekly Wed. Deadline: Newsletter SG: Blue Springs /Investors Network Networking ads & articles for Feb Independence Inv.20 21 22 23 24 25 26SG: Lees Summit Omaha REIA SG: Weekly Wed. SG: Blue Springs /Investors Network Networking Independence Inv. Wholesaling 101 Wholesaling 10227 28 29 30 31 1 2SG: Lees Summit SG: Weekly Wed. SG: Connected Inves- SG: Blue Springs /Investors Network Networking tors Independence Inv.3 4 5 6 7 8 9SG: Lees Summit Deadline: Vendor KC Northland on the SG: Blue Springs /Investors Network 1st Thursday of the Independence Inv. Tables for KC North Month Meeting

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