January 2013 Investment News
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The Investment News is the Newsletter of Mid-America Association of Real Estate Investors based in Kansas City Metro. Devoted to Real Estate Professionals

The Investment News is the Newsletter of Mid-America Association of Real Estate Investors based in Kansas City Metro. Devoted to Real Estate Professionals

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  • 1. Page 10 M I D - A M E R I C A A S S O C I A T I O N O F R E A L E S T A T E I N V E S T O R S January 2013 MAREI launches their 2nd monthly meeting. Starting January 2013, look for 2 monthly meetings. NETWORKING : EDUCATION : COMMUNITY : GOVERNMENT Investment News
  • 2. Page 2 MAREInet.com CONTENTS Effective Mailing Lists 8 How to locate and Create Effec- tive Mailing Lists Embracing Mistakes 12 Tom Zeeb, Traction REIA tells us to Learn From Our Mistakes. Marketing Trends 14 Important Trends in 2013 and how to Capitalize on Them. Note Sales 16 What you should know about Note Sales. Anti –Redlining 18 Did the Community Reinvestment 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 Emerging Trends in Real Estate 2013 MAREInet.com/ Trends2013 @ Check out our Website MAREInet.com Contact us by Phone 913-815-0111 Email US info@MAREInet.com Join The Conversation MAREInet.com/Blog Join Association MAREInet.com/Membership
  • 3. Investment News Page 3 SERVICES THAT PUT PROS AND INVESTORS FIRST With our FIRST for Pro initiative, The Home Depot is taking Even 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 more information.
  • 4. Page 4 MAREInet.com 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 Awards of Excellence 2011 & 2012 Read Newsletter Online Anytime MAREInet.com/Newsletter Connect with us Online LinkedIn Group: Kansas City Real Estate Investors Facebook Page: Kansas City Real Estate Investing Facebook.com/Groups Kansas City Real Estate: /kcrei/ Mid-Missouri Real Estate: /MidMo/ Omaha Real Estate: /OmahaRE/ Topeka Real Estate: /TopekaRE/ Wichita Real Estate: /WichitaRE/ Special Groups Facebook KCMO Water Dept Issues: /badbilling/ MO Creative Finance Legislation Find us on Twitter @MAREInet Tweet #KCREI Contact Information PO Box 8685, Prairie Village KS, 66208 Phone: 913-815-0111 Email: info@MAREInet.com 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 and networking opportunities as well as community, legislative and public relations. 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 his/her own counsel, accountant and other advisors as to legal, tax, economic, investment and related matters concerning real estate and other investments. Content Disclaimer 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. Advertise in the Investment News Rate Schedule Size Non-Member Member Business Associate Full Page $175 $140 $115 1/2 Page $145 $105 $85 1/4 Page $75 $65 $50 1/8 Page $55 $35 $25 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 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 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.
  • 5. Investment News Page 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*
  • 6. did have was a huge buyer list and the ability to move the properties. So we made a rough intent to purchase at about 65% of the asking price on their spreadsheet if we could buy them over 5 months and one at a time. With the properties under contract to buy I would then be able to start marketing them for sale. We toured the properties and ended up adjusting prices down a bit more. The attorney drafted a contract be- tween us as buyers and the estate that we would buy the properties one at a time and that in 5 months time we would have purchased all of the properties. We were then able to start marketing the properties to wholesale them. When we had a buyer, we would then purchase the property and immediately wholesale it to our buyer. No money needed. We also had in our agreement that we could change the buyers name on the final individual purchase contracts. So some of these properties were wholesaled by our company and some of them were actually purchased and wholesaled by our self directed IRAs. Some other things we learned about—the joy of selling a home where the previous owner was murdered. Selling rental houses that had been rented to drug dealers. That two one bedroom houses side by side are not as easy to sell as a duplex. We learned about seller financing as we ended up seller financing 1 individual houses and the 2 side by side one bedroom homes. We learned that seller financing is a great way to increase the number of potential buyers on home to sell it faster. By the way, I am teaching two wholesaling workshops on January 26. If you decide to join me, we can talk about this deal over lunch. See details about the workshop online at www.MAREInet.com/WorkShop or see page 22. How I did the deal is back, submit your deals to info@MAREInet.com. Deals selected for publi- cation will receive a $25 credit on account to apply to trainign workshops. This deal was a package of 23 houses that were marketed in the area to a lot of investors for over a year. This deal has a ton of learning opportunities. First this package of homes were rental homes owned by a local real estate investor who was murdered. He managed everything himself and did not have a plan to deal with the rentals should anything happen to him. His left these 23 plus several others to his 16 year old daughter. As there was no plan for his estate they went into probate and his attorney, who really did not have any expertise in managing properties took over. At the time of his death, I believe that most were in good livable condition and were rented and cash flowing. The attorney ordered appraisals and proceeded to market them at full appraisal price. The attorney did not hire a property manager but attempted to maintain and collect rent themselves. Due to poor man- agement, tenants moved out, houses went vacant and were vandalized, and the homes that stayed occupied did not have tenants that were very faithful about paying rent. Needless to say in less than 6 months the homes were worth way less than the appraised values. They attorney also did not hire a Realtor to market the properties. Granted he was a member of MAREI and new investors, but his expertise was not in marketing of proper- ties. His marketing was to send out an excel list of proper- ties and basic details and the appraised value. Any moti- vation as to sale price was never really mentioned. This list hit our email quite often. We inquired as to what the asking price was several times and were told that the appraised values were listed and to make an offer. I am sure this is what everyone else was being told and no one was making an offer. Finally after about a year of seeing this come across our email I emailed back and said we were interested in the package if they could tell me a rough price, that we would 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 would need to be about 65% less. This was about 2007, so prices were quite a bit higher, but prices are not really relevant. What was important was that I really had no way to actually purchase these properties with cash. What we Page 6 MAREInet.com How I did the DEAL!Don & Kim Tucker www.GBIFunding.com
  • 7. Investment News Page 7 Property Management Rental Services Kansas City Metro www.JamiesonHomeTeam.com Kevin Jamieson 816-503-4671 Cornerstone Foundation Repair Kansas Cities Real Estate Investor’s #1 Foundation Repair Contractor Joe Williams ConerstoneFoundationRepair@yahoo.com 913-220-5253 Ask about our Investor Pricing  Steel Push to Bedrock Piers @ $850 ea  Steel Wall Restraints Starting @ $180 ea  Crack Injection @ $25 per foot  Sump Pumps @ $800 each We are proud to say that we have become real estate investors 1st call for major foundation repair issues. We offer 25 year and lifetime transferable warranties for piering only. The best place on the entire planet to buy kitchen cabinets. We Have The Best Prices Everything Is In Stock We Ship Fast Free Design Help www.CabinetGiant.com Josh Burns 1-877-484-4268 Selling on Terms? Need Cash Now? GBIFunding.com We specialize in the purchase of owner financed notes and contracts from real estate investors across the nation. By selling on terms you create a note or contract which can be sold for cash. We can purchase all or part of your payments right at the closing table to provide you with your profits in cash now so you can move on to your next deal. Request a Quote Today! Email us at info@GBIFunding.com
  • 8. Page 8 MAREInet.com Where can I find a good mailing list to find moti- vated sellers? How can I create my own list to find highly motivated sellers? These are the big questions that I get a lot from Real Estate Inves- tors! The true secret to success for a Real Estate Investor is finding sellers who really need to sell. I use different direct mail campaigns to locate different types of motivated sellers: out of state owners, properties quit-claimed from one person to another, expired listings, burned out land- lords, vacant properties, military transfers, and pre-foreclosures, just to name a few. The best part is that you can customize your di- rect mail piece and your list to reach exactly the kinds of motivated sellers you want to deal with in order to create the kinds of deals you want for your real estate investing business. This is best done by locating mailing lists and refining them to meet your individual criteria, then mailing to these potential sellers again and again, thus cre- ating a multitude of profitable deals. Investors often neglect to market to sellers using direct mail because they think the list is too difficult to get, or they only send the mailings once and quit. They don’t take the time to cre- ate the machine that will bring them deal after deal. These are some of the easiest lists for you to get and it will be very profitable for you to do so. You can contact a list broker or your local property assessor’s office and ask them for these lists, or you can create the lists yourself. It’s fairly easy to do. You can go to the court- house and research divorce cases, death notic- es, liens and judgments, tax liens, marriage licenses, bankruptcies or Lis Pendens, which is the first step toward foreclosure. Let me share a few pointers here.  Do your homework when picking a list bro- ker. How current is the list? Does it have all the information you need to create your di- rect mail campaign? Does it reach the audi- ence you are targeting?  Do a test mailing of 100 pieces to test any Effective Mailing Lists How to Locate & Create Kathy Kennebrook The Marketing Magic Lady
  • 9. Investment News Page 9 new list. How many re- sponses did you get? How many letters came back with a bad address?  Don’t waste your marketing dollars marketing to a bad list that won’t get you the result you want.  Create continuity with your direct mail campaigns. You can mail a lot of letters or a few letters but you need to have a flow of mail going out at all times in order to create a funnel of incoming leads.  Never mail more pieces than you are comfortable getting responses to. If you do a huge mailing and you get tons of responses you can’t get to, you are wasting mar- keting dollars. Put systems in place to help you respond to the mailings and grow your business gradually. Another way to find motivated sellers is to cultivate relation- ships with individuals who can help you find deals. One of the ways I do this is to create a di- rect mail campaign targeting attorneys who handle family law, estate planning and pro- bate law, divorce and marital law, and corporation and busi- ness law and I let them know we are in the business of buy- ing houses. Once you develop relationships with some of these attorneys, they will call you when they have a client who needs to sell a property quickly no matter what condition it’s in. This is just another way to build ongo- ing lead sources using direct mail. You only have to create this direct mail campaign once to create an ongoing source of leads for your Real Estate In- vesting business. If you own any kind of business and you need certain types of leads, think about unique re- sources that can provide you with the leads you need and create a direct mail campaign targeting these resources. This can be really profitable. For ex- ample; if you own an alarm company or a lawn mainte- nance service it would behoove you to create a direct mail cam- paign targeting owners of prop- erties in your area who live out of state. These are potential customers who need your ser- vices. The main reason that direct mail works so well is that you are reaching highly targeted leads. You become the potential seller’s first option when they need to sell. Even if you are on a limited budget, direct mail is an excellent source of leads for you since you can buy more houses from fewer leads, thus maximizing your marketing dol- lars. As your business grows, you can increase the number of mailings you do. You can also target specific neighborhoods or dominate certain parts of town. In doing so, you become a “property value expert” in those areas, which makes the offer- making process that much easi- er for you. You end up creating an ongoing relationship with your target market, which makes it easy for you to follow up with formerly inflexible or unmotivated sellers. Since these mailings are so targeted and so residual, there is virtually no competition for these properties. It puts your lead generating system on “auto-pilot,” leaving you more time to make offers, do more deals, and make more money. Most importantly, be consistent in all your efforts. The success- ful Real Estate Investor has a network of people and strate- gies at their fingertips at all times. If you don’t develop con- tinuity to your marketing cam- paigns, you’ll see your results begin to drop off immediately. This is true no matter what business you are using direct mail to target to. When you implement multiple techniques and several different direct mail campaigns, you will have more opportunities than you’ll be able to handle and the possibilities become almost endless. Using direct mail to develop a “cookie cutter” sys- tem to accomplish this is one of the most affordable, reliable, and effective ways I know to build your lead base quickly and have all the business you will ever need. Be sure and visit my website at www.marketingmagiclady.com for all the information you need on developing highly effective direct mail campaigns and finding all the list brokers you need to increase the number of leads coming into your real estate business. I have done all the work for you and can provide you with all the tools you need to be successful using di- rect mail in your business.
  • 10. Page 10 MAREInet.com Learn how to save money at Home De- pot and register for a 2% Rebate for all purchases & rentals across the US. Plus 20% Discount on Paint in Kansas City. And coming in 2013 the New Home Depot App for iPad exclusively for Chapter Members to use in project esti- mation on home repair and remodel. All members receive a discount card to access our exclusive discounts up to 40% off all paint, supplies, and flooring—nationwide. Websites for investors, landlords, and other services. FREE trial. Email and Social Media Marketing, Free Trial and Discounts for paying in ad- vance. Screening for tenants & workers with 20% discount for members. FORMS & DOCS Member Library is packed with forms and docs, plus 15 % discount at EZ Landlord Forms for premium forms. Market your rentals on the nations top ranked rental site. Member discount is 20% off Regular Prices. Save on select FedEx Office copy and print services up to 20% and on Fed- Ex Shipping up to 22%. Receive discounts up to 65% on over 12,000 products you use the most online and in store. MAREI’S MEMBER BENEFITS PROGRAM YOUR MEMBER BENEFITS AT-A-GLANCEUSE THIS PAGE AS A GUIDE TO VALUE ADDED DISCOUNTS TOOLS AND SAVINGS CREATED JUST FOR YOU ON GOODS AND SERVICES YOU USE EVERY DAY. E-Update MAREI’s award winning weekly email update with what’s happening in real estate including properties for sale, gov- ernment affairs and local market data. Investment News The award winning newsletter for Mid- America Association of Real Estate In- vestors: published monthly and distrib- uted both in print at our meetings and 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. Magazine for the real estate investor. With discount subscriptions for MAREI members and FREE copies available at our monthly meetings. Free issues of both magazines available at the monthly meetings of MAREI. Landlord Services Office Solutions Suppliers Marketing News & Information
  • 11. Investment News Page 11 We have several services as part of our website to help you grow your business. Calendar of Events to stay up to date with all of our activities. Browse the member properties to find your next deal. Take the time to post your investment op- portunities for other members and site visitors to browse. The Member Library is packed and ever growing with pdf ver- sions of entire books, EBooks, Articles, Forms, and Documents. Nearly 70% of QuickBooks users say that it makes their business more prof- itable. Get your Accounting on track. Buy at a 20% discount our special links from the MAREI Web Site. REAL ESTATE BOOKS The nation’s largest provider of real estate training materi- als, DEARBORN is America’s Premier Real Estate Publish- er. Members receive up to 40% off. Special member discounts for members at Avis, Budget, and Enterprise Rentals. The Local Market Monitor tracks real estate sales and economic trends nation wide. Offering 25% Discount for Members. MAREI’s Political Advocacy Group actively monitors national legisla- tion and rule-making that im- pacts the real estate industry and harnessing the strength of MAREI members at the grassroots level. MAREI mem- bers also re- ceive timely Calls to Action when there is a time for our members to take action on an important vote. Members also have access to the latest in Market Da- ta. Other Discounts VISIT ww.MAREInet.com Look under Resources & Members Only Member Service
  • 12. Page 12 MAREInet.com Are you the kind of person who hates making a mistake? Would you rather not take any action than risk making a mistake? Does the thought of messing up and making a mistake make you want to crawl into a hole and hide? DROP THIS HABIT RIGHT NOW! It is often said that success lies just past fail- ure. Therefore, you will never succeed if you do not fail first. Get this fact into your head and recognize that it is through your mistakes that you will learn discipline, toughness, persistence and what it takes to succeed. You simply cannot be successful if you do not make mistakes. Errors, mistakes and adver- sity are far better teachers than success. Success is going from failure to failure with- out losing enthusiasm. Stay in the game and constantly learn more and improve yourself and you will achieve the success you are striving for. Try letting your advance worrying become advance thinking and planning. Action is by far the greatest fear killer. Get in over your head and swim to the top. Nothing worth having in life comes easy. Cli- ché? Yes. But it is true. Think about how very little you appreciate the things in life that came easily to you, but how much pride and respect you have for things that you fought for or struggled to at- tain. This isn’t true just for material things, it is also true for the more important things in life, like health and relationships. Successful athletes, mountain climbers, busi- ness owners, husbands, wives and parents Embracing Mistakes and Learning from Failure Tom Zeeb Traction REIA.com
  • 13. Investment News Page 13 all know that they wouldn’t be where they are today if they hadn’t gone through some rough times. Winston Churchill once said, “This is no time for ease and comfort. It is time to dare and endure”. So dive in. Accept that you will make some mistakes, but acknowledge that you will learn from them and get better and stronger in business or whatever endeavor you are pur- suing. Tom Zeeb has been featured by CNBC, The Washington Post, Kiplinger's Magazine, The Washington Examiner, Financial Lifeline Radio and National Real Estate Investors Associa- tion's Magazine among others. He is the Presi- dent of the former Capital Area REIA, the Re- cipient of the National REIA "2010 & 2011 Honors of Merit" and the "2009 Award of Ex- cellence" for Best Real Estate Investor Associa- tion! Capital Area REIA now known as Traction REIA serves the Greater Washington DC Metro Area. Www.CoffeltLandTitle.com For title, escrow, 1031 & foreclosure. Bud Whisler 816-380-3441 www.APIAProtects.com 1(877) 752-2742 Lisa Goodner Because APIA sells only Real Estate Owned (REO) and Forced Lender insurance coverage, we've 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.
  • 14. Page 14 MAREInet.com On Tuesday last week, London hosted tһе Local Social Summit 2012, tһе fourth year tһіѕ ɡrеаt (а ‫ח‬ԁ growing) summit һаѕ bее ‫ח‬рυt ο.‫ח‬ I want tο υѕе tһіѕ post tο highlight ѕοmе signifi- cant trends discussed аt tһе Summit. I аƖѕο want tο warn tһаt tһе rapid pace οf innovation mау in- deed leave real estate investors, agents, business- es struggling tο keep up. Key Trends 1. Mobile іѕ king 2. Rise οf ‘Local Discovery’ Data Purity & Ubiquity Mobile Iѕ King Tһіѕ topic һаѕ bее ‫ח‬done tο death, ѕο I’m ‫ח‬οt going tο dwell ο ‫ח‬іt tοο much. Wе ѕһουƖԁ һаνе аƖƖ read tһе key facts bу now, bυt аѕ a qυісk refresher:  Mobile Internet usage tο surpass desktop Inter- net usage і‫ח‬ 2014  50% οf smartphone users һаνе used a local app  Mobile advertising spend tο hit US$15 billion і ‫ח‬ 2015 wаѕ US $1 billion in 2014* Anecdotally, a representative frοm Yelp tοƖԁ every- one tһаt approx 45% οf searches ο ‫ח‬Yelp аrе done via tһеіr mobile apps. Given tһаt Yelp һаԁ 84 mil- lion unique visitors і‫ח‬in Q3, 2012, wһіƖе tһеіr app wаѕ used on just 8.2 million mobile devices in this period, іt shows a һυɡе level οf activi- ty bу tһеіr mobile audience. WһіƖе tһе headline figures аrе hugely exciting, іt’s і‫ח‬tеrеѕtі‫ח‬ɡ tο note tһаt ο‫ח‬Ɩу 10% οf Internet usage іѕ done on mobile,** ѕο a lot fewer pages/visits аrе being consumed bу mobile users. AƖѕο, tһе mοѕt рοрυƖаr рƖасе fοr using a smartphone іѕ in the home. Sο, wһіƖе mobile іѕ undeniably a game changer , tһе behavior οf mobile users isn’t neces- sarily wһаt wе mіɡһt presume іt tο bе. *Based ο‫ח‬number οf users accessing Internet ο‫ח‬a mobile device **Based ο‫ח‬number οf pages consumed ο‫ח‬a mobile device Tһе Rise οf ‘Local Discovery’ ‘Local Discovery’ іѕ а ‫ח‬evolution οf ‘Local Search.’ Tһе ԁіffеrе‫ח‬се being tһаt ‘Search’ іѕ broad and requires tһе user tο invest time and effort і ‫ח‬ narrowing down and identifying tһе content tһеу want. ‘Discovery’ іѕ аbουt presenting users wіtһ pre- filtered results based on tһеіr preferences, location and οtһеr elements οf personalization. It means less effort on tһе part οf user, more curation аnd editorial involvement bу site/application owners. It’s hard tο ԁο tһіѕ well ο ‫ח‬large sites wһісһ cover a broad set οf verticals а ‫ח‬ԁ locations (e.g., Superpages, YP.com) bесаυѕе οf tһе need fοr de- tailed understanding οf each industry οr market. Fοr a consumer tο рυt tһеіr trust і ‫ח‬a service wһісһ pre-filters results, tһе consumer needs tο know tһаt site/app іѕ a specialist і ‫ח‬tһеіr field. Market ing Trends Important 2013 Marketing Trends and How to Capitalize on them Duncan Wierman
  • 15. Investment News Page 15  Christoph Becker: Overland, KS (since 2010)  Christina Kanas: Grandview, MO (since 2006)  Brenda Linstra: Kansas City, MO (since 2009)  Curt Linstra: Kansas City, MO (since 2009) Renewing  Jim Brashears: Shawnee, KS  Rebecca Flaig: Overland, KS  Thomas & Sylvia Gill: Kansas City, MO  Bill Kennedy: Greenwood, MO  Kyle Luetjen: Overland, KS  Tim McCleary: Shawnee, KS  Brett & Brenda Richman: Kansas City, MO  Matthew Ritvo: Oak Park, CA  Austin Siemens: Olathe, KS  Jeanann Spore: Overland, KS New Members New & Renewing MEMBERS Marketing Tips fοr real es- tate investors : Keep a look out fοr ‫ח‬еw sites and mobile apps wһісһ аrе dedicated tο уουr industry and city. Mаkе sure уουr business іѕ correctly listed ontһеm (see ‘Data Purity & Ubiquity’ below) and engage wіtһ tһеѕе sites tο supply deals and content wһісһ wіƖƖ convert tһеіr users і‫ח‬tο уουr customers. Data Purity & Ubiquity WһіƖе tһе mobile Web and tһе desktop Web mау compete wіtһ each οtһеr fοr a user’s time, tһе data wһісһ drives tһеm іѕ es- sentially tһе same. Yelp’s apps υѕе tһе same data- base аѕ yelp.com. Google maps app uses tһе same database аѕ Google maps on уουr PC (all differences aside). And many οf tһе data aggregators wһісһ sup- ply business info tο websites аƖѕο feed mobile sites а ‫ח‬ԁ applications — wіtһ a few others wһісһ уου mау ‫ח‬οt һаνе considered (e.g., TomTom feeds і‫ח‬tο Apple Maps, Nokia һаѕ іtѕ οw ‫ח‬solution) Wе аƖƖ appreciate tһе need tο build ‘citations’ and ensure tһаt tһе data shared аbουt ουr busi- ness іѕ ассυrаtе and consistent асrοѕѕ аѕ many directories and ‫ח‬ԁ data aggregators аѕ possible. Well… tһіѕ task јυѕt ɡοt more іmрοrtа‫ח‬t. Mobile Internet users consume less pages and take action qυісkеr than PC Web users. Sο, іf уουr information іѕ inaccurate οr (worse) absent frοm a site, tһе ‫ח‬уου wіƖƖ bе missing out ο ‫ח‬more а ‫ח‬ԁ more potential customers. Marketing Tips fοr real es- tate investors: Double уουr citation efforts ѕο tһаt уου сƖеа‫ח‬ incorrect listings and build out ‫ח‬еw listings on data aggregators and directories. Bе sure tο add уου listings tο services like TomTom & Nokia ѕο уου ɡеt і‫ח‬tο tһеіr ecosystem а ‫ח‬ԁ data supply chain. —- Reprinted from Duncan Wierman’s website DuncanWier- man.com—published originally on November 25th.
  • 16. Page 16 MAREInet.com Due to the current lack of inventory, many in- vestors have been thinking outside the box to obtain investment property in the valley. One thing I have started to see more and more of are note sale transactions. To most, note sales seem like easy money but there are a lot of twists and turns that you need to be careful of. I would highly recommend if you are new to working with these types of transactions that you have an agent or attorney assist you. As the purchaser of a non performing note, you will need to collect a lot of information from the seller of the note. These items would be things like the promissory note, the deed of trust, the assignment of beneficial interest, etc. One of the things I have seen that will kill the deal is when the buyer fails to obtain the finan- cial status of the account. Usually the lender will supply a payoff statement for you to pre- sent to the trustee but the best thing is to have an account statement that discloses the payment history of the account. When you are buying a non performing note, typically you are buying the ability to exer- cise the rights granted to the beneficiary to foreclose on the loan. Keep in mind though that in order to foreclose, the substituted trustee must be able to define the default, and the trustee must be able to sub- stantiate the terms of the note and define the default. If you miss one item you have just bought a piece of paper not worth much more to you than the ink it is written on. You have to remember as the purchaser of a non perform- ing note you are stepping into the shoes of the lender. Arizona revised statute 813-D reads that the trustor (borrower) or any person with a recorded interest in the property shall have the right to expect from the trustee the exact amount necessary to reinstate the trust deed, separately specifying costs, fees and any other amounts that are required to be paid as a con- Note Sales: What You Should know DiAnna Jackman Chicago TitleReprinted from Azreia.org
  • 17. Investment News Page 17 HOUSES WANTED Built After 1950 Minimum 3 Bed, 1.5 Bath Eastern Jackson County MO or Johnson County KS Retail Value $100k-$200k No RentalLocal Cash Buyer Looking for 2 to 4 Houses a month to purchase, rehab and sell. Money Partners want their money placed quickly so they can turn their money fast and make a profit. Can’t do that with out houses! Bring us a deal! Email: kcmoHomeBuyer@gmail.com Submit Online: kcmoHomeBuyer.com www.AccurateTitleCo.com 913-338-0100 phone Title Services Provided for:  FSBO, Wholesale, & REO Transactions  New Construction Closings  Commercial Purchases and Refinance  All Types of Loan Closings  1031 Exchanges  FHA, VA, USDA, Conventional Loans, and Hard Money Loan Closings  Refinance & Reverse Mortgages  Doc Prep, Prelim HUDS, Curing Issues  Short Sale Closing & Assistance  100 Years of Combined Service! accurate Accurate Closings: Smooth, Timely, Professional. dition to the reinstatement of the trust deed. You do not want to give any opportunity to the trustor to object to the completion of the trustee sale. You really do not want to fight it out in court. If you get all the information prior to close and use a trustee that knows what they are doing (you can always ask your favorite title company for a referral), note sales can be very lucrative. Remember as you approach new investment opportunities keep your same business sense and use your experts to help do it right. As with any transaction, I do not recom- mend you close a note sale without title insurance. You would be buying a loan policy instead of an owner’s policy because you are considered a lender not an owner. Title in- surance will ensure you have no liens that would cause you a headache in the foreclosure process and that you are not inheriting anything that would survive the trustee sale like city liens, etc. Chicago Title has many experienced Escrow Officers for these types of transactions and it is IM- PERITAVE that you work with someone that knows how to close this type of transac- tion. Title insurance will add an additional (and in my eyes), an invaluable layer of protection from the unknown. Remember, Chicago Title is here to help with anything you need and just a phone call away!
  • 18. Page 18 MAREInet.com Redlining is the practice of denying, or charging more for services such as banking, insurance, ac- cess to healthcare, stores, jobs to residents of a particular, often racially determined areas. The term “redlining refers to the practice of marking a map in red to show the areas where banks would not invest or lend. In 1977, the Community Reinvestment Act, an anti- redlining law that went into effect. It was updated in 1995 and again in 2005. Since subprime mort- gage crisis and the resulting recession, the question has been, did the Community Reinvestment Act (CRA) cause the whole mess. Democrats and many media say no, but a recent study by the National Bureau of Economic Research finds that by follow- ing the CRA banks got into riskier lending. In short banks were required to serve all their cus- tomers from all neighborhoods in the areas where they were in business, including the areas where low and moderate income. Banks were required to make affordable housing loans. Congress forced Fannie Mae and Freddie Mac to back more and more CRA grade loans and had HUD enforce quotas with fines if they were not met. They ran into a problem. With quality underwriting standards, they could not qualify the borrowers in the low and moderate income areas at a rate that would allow them to meet the quotas. So Fannie and Freddie went to work and came up with new loan products with much looser lending standards. In 2000, Fannie went to the lenders and told them to use the new mortgages with less than 3% down and flexible underwriting so Fannie could buy up the loans, meet their quotas and then package them and sell them as Securities. Lenders that were not under the quotes to meet the CRA lender requirements, like Countrywide also jumped into the party too. Countrywide and other lenders that were regulated by HUD signed con- tracts with the government supporting lending prac- tices similar to the CRA rules. The report shows that Banks that did not meet the lending quotas were denied plans for merger and other penalties until they pledged to make more loans to help credit challenged and poor minorities. Some banks, such as Washington Mutual say that they wanted to tighten lending standards, but were afraid they would not be able to meet their CRA rat- ing. They were out there making loans after loans with ever increasing easy standards. The more loans they made available to credit challenged people, the more buyers in the market buying houses and the higher the prices of homes kept going . . . . . and the bubble was growing, and the growing selling of these loans on wall street as very complicated secu- rities. The securities in turn were pledged to bor- row short term money by the big Wall Street Banks. Then when these poorly underwritten loans started going bad in droves, the big banks could not renew the short term loans, could not get credit and that’s when first banks Bear Stearns and Lehman failed. Here in Kansas City our urban cores were devastat- ed by the very loans that were being offered to help the area. Banks using fancy loan products that had almost no lending standards made loans to borrow- ers with very marginal credit. For example they Anti Redlining Did it cause this mess?
  • 19. Investment News Page 19 would offer a loan with a low in- troductory rate that would be set to adjust up in 2 to 3 years, the quote to the borrow being that in 2 to 3 years you will be earning more money and have better credit you will be able to re- finance out. Never mind that the people getting these loans had poor work history and a very lengthy history of bad credit and no one was helping them im- prove their income or credit so they would be able to refinance in 2 to 3 years. When the 2 to 3 year time frame came, the loans started adjusting their rates up and the defaults started and grew. All these newly made borrowers that really could not afford to buy a home and did not have the credit to handle a home loan, in- creased demand for our urban core. More demand made the prices go up and up. Enter our fellow real estate investors. The real estate investor was pro- vided just as out of whack loans. Only here, the investor did have “good” credit, but no reportable income. So in came the liar loan where the investor who had good credit could basically make up a income number with nothing to substantiate it and get a loan. So as the urban core was one of the lowest priced homes availa- ble, they were buying up houses and putting tenants in them for cheap and pulling cash out of the house with a liar loan cash out refinance. The demand by the investor further raised the value of the homes. When the home owners started defaulting in the urban core, the banks choose to foreclose and start tightening lending stand- ards. Tightened standards meant no more loans for the home owners with no money down and questionable credit and the stat- ed income loan. These two loans were how the majority of the buyers in our urban core bought houses. Cutting out the majority of the buyers in our urban core meant that there were a lot fewer buyers for those foreclosures. Priced dropped . . . what would have sold for $80,000 to $100,000 at the high dropped down to $15,000 to $20,000 at the low as the only one buying was the investor buyer who had cash. While having a law against not offering loans period in a specific area is good, having one with quotas that require banks to make loans and lowering stand- ards to be able to do so is really stupid. What would have helped would have been those banks and lenders saying, “Hey wait a minute, let’s modify those loans in an effort to keep from a glut of bad loans all at once” But no way no how were they going to do that back in 2008 and 2009. Today, they would love to modify the loan and keep in performing as long as they can . . . but hind sight is 20/20. Learn more . . . Google “Community Reinvestment Act” and “Risky Lending.” Property Management Section 8 Housing KC Metro Wide Jeff Woods Broker www.MyPremierLeasing.com 816-849500 Webinar! Communications Expert & Real Estate Investor Bill Twyford What to Say! How to Say It! With everyone offering you the next, best, “make a million dollars while you sleep” program – people have forgotten that this is a people business and without the proper COMMUNICATION SKILLS you are dead in the water! Register: MAREInet.com/Webinar Thursday January 10th 8pm CST No Charge
  • 20. Page 20 MAREInet.com 2803 S Norwood Independence, MO $59,900 3 Bed 1 Bath Crawl Renovated & Ready for your Tenant Scott Tucker Realty Resource RealtyResourceKC.com 816-523-4400 2120 SE 3rd St Lee’s Summit, MO $135,000 3 Bed 2 Bath Updated, 3 bedroom 2 bath raised ranch in Lee's Summit. MLS# 1807386 John Welchert Platinum Realty 816-522-0002 6149 Harvard Raytown, MO $89,900 4 Bed 3 Bath Ranch Two Living Spaces, Pre-Negotiated Short Sale Scott Tucker Realty Resource RealtyResourceKC.com 816-523-4400 438S.KentuckyAve. Independence, MO $22,000 3 Bed 2 bath Partial Bsmt Great Cash Flow Potential, raised ranch, 20% ROI Chad HomeRemedyKC HomeRemedyKC.com 913-735-5598 803 S Brookside Av Independence, MO $20,000 2 bed 1 Bath Full Bsmt Cash Cow Inde- pendence Whole- sale Deal 50% un- der market value! Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 419-1165 3301 Bales Kansas City, MO $10,000 3 Bed 1.5 Bath 2 Sty Rehabbed about a year ago. Va- cant.eeds TLC to bring back to life. Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 419-1165 3343BellefontaineAve Kansas City, MO $34,500 3 bed 1 bath Full Bsmt Newly Rehabbed Kansas City IN- VESTMENT PROP- ERTY 20% NET ROI Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 419-1165 3829 Benton Blvd, Kansas City, MO $39,500 3 Bed 1.5 Bath FRESH REHAB Prestigious BEN- TON BLVD. 20% NET ROI Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 419-1165 7708 E 110th St Kansas City, MO $19,500 3 Bed 2Bath Ranch Structurally Sound Ruskin Fixer Upper in need of Remod- eling/Rehab TLC Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 419-1165
  • 21. MAREI Member Properties MAREInet.com/Properties Investment News Page 21 836 E 82nd St, Kansas City, MO $53,000 3 Bed 2.5 Bath Full Bsmt South KC Super Hot Deal! 50% under market value E. 82nd St. 3bd 2.5ba Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 419-1165 3810 College Ave, Kansas City, MO $20,000 3 Bed 2 Bath 90% Rehabbed – 3brm, 2bath Whole- sale Midtown Proper- ty Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 419-1165 5527 Euclid Ave, Kansas City, MO $29,500 3 Bed 1 Bath 55th & Euclid Com- pletely Rehabbed of- fering a proposed NET ROI of 23% Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 419-1165 11325SycamoreTr, Kansas City, MO $39,000 3 Bed 1 Bath Ruskin Gem Turn- Key 19%NET ROI – INVESTMENT PROP- ERTY Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 419-1165 703 S Cherry St, Olathe, KS $24,000 3 Bed 1 Bath+ 1 partial OLATHE Fixer Upper Only $24K! -Priced To Sell – Huge Profit Potential Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 419-1165 5839 Euclid Ave, Kansas City, MO $29,500 3 Bed 1 Bath 3bdrm KC Invest- ment Property Turn- Key 19% NET ROI Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 419-1165 806 S Scott Belton, MO $75,000 4 Bed 2 Bath Finished bsmt Great for first time home buyer, Rehab- ber or landlord to hold, built in equity Mike or Terea Moeller, Laura & Donna Bullock memoeller@att.net 816–509–3771 4021 Crossgate Ct Lawrence, KS $125,000 2 Bed 2 Bath Loft Great Rental or home for your KU STudent Michelle Frye Reece & Nichols 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.
  • 22. January Workshops Wholesaling 101 & 102 Wholesaling Real Estate is the real estate niche whereby investors market to find motivated sellers and negotiate a purchase price and at the same time match that house up with an end buyer. In most cases, no money is needed to complete the transaction on the wholesale investors part or transactional funding can be used. For new investors just getting started wholesaling is a technique that will serve you well in all the other niche as it involves mastering the art of finding really good deals that you can wholesale to other investors (or cherry pick the best and wholesale the rest) . This Saturday features 2 workshops: Each qualifies for 2 Hours of PHP Credit (Purchasing for 101 and Marketing for 102) Each Cost $30 for MAREI members / $45 for Non-Members Wholesaling 101: Getting Started 1. What is a Wholesale Deal? 2. What are the best houses? 3. How much to pay? 4. How do you get paid? 5. What happens at closing 6. Who Should be on your Buyers List 7. How to Build a Buyers List - Fast 8. 8:30 to Noon Wholesaling 102: Marketing for Motivated Sellers 1. What is a Motivated Seller 2. Where do you Find Motivated Sellers 3. Marketing For Motivated Sellers 4. Websites 5. Direct Mail Marketing 6. Craigslist Advertising 7. Screening Sellers 8. 1pm to 4:30 Registration 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 Date Credit Card Number ___________________________________ Signature Scan & Email to info@MAREInet.com Fax: 1-201-574-2969 (email first) Call 913-815-0111 Online www.MAREInet.com/WorkShop
  • 23. KC North: North Kansas City Community Center 1999 Iron Street Kansas City, MO Times: Thursday January 3rd: 6pm to 9pm 6:00 Registration & Networking 7:00 Deal a Minute 7:15 Presentation 8:45 Final 15 Networking Monthly Meetings January! The Top 10 Ways to find Real Estate Deals As we learned at the MAREI KC South meeting in December, the Real Estate Industry has changed immensely in the past year. Home Buyers and Investors are paying cash more causing more de- mand for REO properties. Banks are not foreclosing and selling the notes, lowering the number of REO proper- ties. So with more demand and less supply, the price is going up. So finding non MLS deals is going to be even more important going for- ward than it has in the past. Join us tonight to find out what’s working and what’s not working when it comes to finding deals. MAREInet.com/KCNorth The Top 3 Mistakes that New Investors Make The December meeting was packed with so much information that we could not fit it all into one meeting. So we asked Debra Felderhoff to come back in January and share her top 3 (or more) mistakes new investors make. We wanted to make sure she had time to share her knowledge and answer your questions. You may know Deb from past appear- ances on guest panels at MAREI as well as from her networking groups on Sat- urday and Sunday. She is in the medi- cal field by day and later afternoons and weekends she devotes to her full time real estate business and 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 and keeping 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 does her deals, please join us to learn from Debra. If you have some specific questions, please come early or stay late to ask. MAREI.com/KCSouth KC South: Career Education Systems Ward Parkway Shopping Center 8600 Ward Parkway Kansas City, MO Times: Tuesday Jan 8th: 6pm to 9pm 6:00 Registration & Networking 7:00 Haves & Wants 7:15 Presentation 8:45 Final 15 Networking
  • 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 2013 Sun Mon Tue Wed Thu Fri Sat 1 2 SG: Weekly Wed. Networking 3 KC Northland on the 1st Thursday of the Month 4 SG: Connected Inves- tors 5 SG: Blue Springs / Independence Inv. 6 SG: Lees Summit Investors Network 7 Deadline: Vendor Tables for KC South Meeting 8 KC Metro South on the 2nd Tuesday of the Month 9 SG: Weekly Wed. Networking 10 NLP Webinar with Bill Twyford 11 12 SG: Blue Springs / Independence Inv. 13 SG: Lees Summit Investors Network 14 15 16 SG: Weekly Wed. Networking 17 18 Deadline: Newsletter ads & articles for Feb 19 SG: Blue Springs / Independence Inv. 20 SG: Lees Summit Investors Network 21 Omaha REIA 22 23 SG: Weekly Wed. Networking 24 25 26 SG: Blue Springs / Independence Inv. Wholesaling 101 Wholesaling 102 27 SG: Lees Summit Investors Network 28 29 30 SG: Weekly Wed. Networking 31 1 SG: Connected Inves- tors 2 SG: Blue Springs / Independence Inv. 3 SG: Lees Summit Investors Network 4 5 6 Deadline: Vendor Tables for KC North Meeting 7 KC Northland on the 1st Thursday of the Month 8 9 SG: Blue Springs / Independence Inv.