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The Investment News: April 2011

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The monthly newsletter for Mid-America Association of Real Estate Investors. A Real Estate Investing Trade Association based in the Kansas City Metro Area. Find us online at www.MAREInet.com.

The monthly newsletter for Mid-America Association of Real Estate Investors. A Real Estate Investing Trade Association based in the Kansas City Metro Area. Find us online at www.MAREInet.com.

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  • 1. MID-AMERICA ASSOCIATION OF REAL ESTATE INVESTORS Investment News NETWORKING : EDUCATION : COMMUNITY April 2011 It’s all a Number s Game» Lead Generation» Social Media» Wholesaling Plus:» Courthouse Auctions A Packed Networking &» Lease Purchase Educational Calendar» Real Estate Investing for April
  • 2. m ar ei BUSINESS MEMBERS ADDRESSING THE NEEDS OF THE REAL ESTATE INVESTORType Company Web Phone ContactAttorney Wise / Anderson BobWiseLaw.com 816-942-5925 Bob WiseContractor Te-Tee Light MAREI Vendor 816-356-1870 George BaiLender Argentine Federal Savings ArgentineFed.com 913-402-1500 Ann WilkinsonRealtor Realty Resource KCInvest.com 816-523-4400 Kim TuckerSupplier Home Depot Home Depot 816-510-9199 Roger HolyfieldTitle Accurate Title Company AccurateTitleco.com 913-338-0100 Jackie WhiteWholesale kcmoHomeBuyer kcmoHomebuyer.com 816-200-2198 Don Tucker Real Estate Investors and Landlords depend on a well rounded team of professionals. If you are building your team or looking to make a trade, start your recruiting with our Vendor Members and Business Associates. See a complete list of suppliers and any discounts they may of- fer to MAREI members by visiting, www.MAREInet.com. Look in under the Toolbox tab under “Service Directory”. http://mareinet.com/marei-tool-box/business-associatesPage 2 MAREInet.com
  • 3. Contents MAREI News In This Issue MAREI Business Members 2 MAREI Staff 5 Notes from Director 6 Social Media, It’s a Waste of Time 8 The Fair Lease Purchase 10 Square Peg, Round Hole? 12 Professional Housing Provider 14 Your Business is Your Database 16 Government Affairs 18 Training Events 20 Wholesaling Step by Step 22 Calendar 23 FREE Membership with MAREI Money 24 Buying at the Courthouse 28Photos from the March 2011 Meeting featuring Bob Wise. Features ‫ ׀‬April 2011 Social Media, It’s a Waste of The Fair Lease Purchase, Time and it Does Not Work. An Investors Perfect Hy- These are two of the biggest brid. When properly exe- cuted it includes the best things people say about So- 8 cial Media Today. Is it true 10 of both the buy and hold world as well as the buy or just an excuse? and flip form of investing. Investment News Page 3
  • 4. MAREI Notes Contact Information PO Box 8685, Prairie Village KS, 66208 Phone: 913-815-0111 Fax: 816-523-4448 Our Mission Statement Mid-America Association of Real Estate Investors is dedicated to promoting ethical real estate in- vesting 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 neces- sarily 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 Vil- lage, KS 66208 or request an online payment for to use credit or debit card.Page 4 MAREInet.com
  • 5. MAREI StaffKim Tucker 816-523-4400 Don Tucker 816-523-4400 Steve BurnsDirector President Audio VisualKim@MAREInet.com Don@MAREInet.com cashflowtreasures@gmail.comJohn Welchert Larry Prato Spencer CullorMeeting Ambassador Commercial Subgroup Commercial Subgroup816-268-3849 913-227-4693 913-324-5900Dan Goodwin 913-642-5218 Shelda GoodwinMeeting Ambassador Meeting AmbassadorDanGoodwin@kw.com SheldaGoodwin@kw.com Investment News Page 5
  • 6. Director’s NotesA little over a year ago I noted there was a new law the rules are not being enforced, that the things theycoming out that was going to be a game changer for a need to do are stupid, and that the rules are only tolot of people in the construction industry as well as in protect their own children anyway. Boy, do they needreal estate. That law is the EPA’s Repair Renovation, to change their thinking fast.and Painting Rule listed out on the next page that The EPA and states had held off enforcement till thewent into effect April 22, 2010. end of December 2010 as the had done such a poor joWe had a guest speaker come in to share all the ins getting the information about the law out and the lackand outs of the new law and we were able to get the of certification training courses to cover all the peopleinformation out with a 20 second spot on 2 different who needed to attend. But that is all changing andTV stations and a brief paragraph or two in the local they are now going after the people who are violatingpaper. WOW! the law.One would think that a law that is going into effect to Now we as Real Estate Investors and Landlords maysave the health and lives of thousands of people, that not be doing the actual work our houses and apart- would require the licensing of thou- ments. We may be hiring contractors. But if your con- sands more would have at least got a tractor has the same outlook as the 3 or 4 I spoke full 2 minute segment on TV and with, well, YOU are going to be in trouble. You as the maybe, just maybe a feature story in owner of the property who earns a profit through the the Star. But as there is no blood and resale or rental of that property are who they are going guts, we probably will not see much. to go after. Yes, you had a contractor, but if the con- tractor did not do follow lead safe work practices, edu- That is until there are some sensa- cate the tenant, and document everything, will the tional items, like for example the Win- EPA be able to find the contractor or just ask who sold dow World Company in St Louis that the house or who collects the rent. So I am going to is settling with about $19,000 in fines ask all Landlords, Rehabbers, and Property Managers and another $20,000 in window re- to make sure your renovations are lead safe. placements as a community service.Or the contractor in Connecticut who settled for$30,000 and change. Kim TuckerI have talked to a few contractors who have already Director of MAREIattended a certification training and their take is that “I will be at the April 9th Certification Training Workshop. I hope you can join me and my husband as we learn what we need to know and what our contractors are supposed to be doing. $199 to $250 now is much better than $20,000 or more later!
  • 7. Avoid Fines! Avoid Prison! Protect health! Get Certified!ENVIRONMENTAL PROTECTION AGENCY (EPA)RENOVATION, REPAIR, & PAINTINGLEAD SAFE WORK PRACTICES COURSEOn April 22, 2010, the Environmental Protection Agency (EPA) started requiring firms performing workfor compensation that disturbs lead-based paint in residential homes, child care facilities, child occu-pied facilities, and schools built before 1978 be EPA certified, ensure necessary EPA certified renova-tors are on each job, ensure all workers affected are trained in specific work practices to prevent leadcontamination, all work is performed according to EPA work practices, pre-renovation education re-quired for residents, and ensure record keeping requirements are met.Additionally, all persons are required to be licensed/certified by the appropriate state agency where thework is occurring or by EPA. There is also a requirement for refresher training for any person who be-comes licensed/certified every 5 years. Penalties for performing work without being EPA certified canlead to penalties of up to $37,500 per violation, per day. MAREI ispartnering with Kachina Lead Paint Solutions , an EPA accred-ited training provider to offer this training in Kansas City.REQUIREMENTS OF FIRMS PERFORMING WORK EPA certified Ensure necessary EPA certified renovators are on each job Ensure all workers trained in specific work practices to prevent lead contamination All work is performed according to EPA work practices Pre-renovation education required for residents Record Keeping requirements are metTHE EPA REQUIRES CERTIFIED RENOVATORS MUST Use a lead test kit to determine if lead is present Provide on-the-job training in specific work practices for other workers onsite Be physically present on the jobsite at times required by the EPA Regularly direct the work of other employees to insure proper work practices Be available onsite or by telephone at all times renovation is being conducted Have at the site a copy of certification certificate Prepare required records Saturday April 9th Sylvester Powell Jr Community Center (Mission KS) 8:00 to 5:00 (Lunch Provided) Cost $250 per person / MAREI Members $199 Register www.MAREInet.com
  • 8. social media It’s a Waste of Time and it doesn’t work These are two of the biggest things I hear when I speak all over in reference to Social Media in FaceBook: It is simply your Sphere of Influence, business today. Is it the truth, or is it just the ex- and with over 600 million people on it, how can cuse the individual uses because they are not you deny this, or put it into the category of a comfortable "selling" themselves to people? "fad"? Never before have you been able to cost effectively market yourself or product to this seg- Are they actually selling themselves or simply ment which is statistically speaking the best area educating their friends and others as to what it is to get a return on your investment. It is cost ef- they do? Imagine if you had a business want or fective, and you can market to them daily now, need, and didnt know who to turn to, and then no more time consuming and costly mailings later on found out that a good friend of yours or and ads. With FaceBook, the key is to be both a neighbor actually does what your need is for a real person, and learn to market yourself without living. Is there anyone you would rather have coming across as marketing yourself. working with you or representing you than some- one you already know? Twitter: If you are not a Sports Athlete, Rock Star, or Celebrity it is not one of the best areas Monthly Meeting 1 PHP CREDITS Don’t miss this event! Attend the April MAREI Monthly Meeting and join John God- dard, a nationally recognized expert on using Social Media Real Estate. Location: Sylvester Powell Jr Community Center: 6200 Martway in Mission Kansas Date: Tuesday April 9th: Doors open at 6:00 Cost: Members FREE, Guests $25 at the Door or Pre- Register for $15. See more & Register online. PHP: 1 Credit Marketing PHP, members only, must be pre- registered.Page 8 MAREInet.com
  • 9. to get a return on your time investment. I ruffle a lot of feathers with thisstatement, but so many educators teach people to join this Media be- speakercause of the "aura" that surrounds it. In my opinion Twitter is 150 millionpeople all trying to sell things to each other. I ask you have you ever gone biographyto Twitter to do research on an expert or product? With this said, Twittercan be a great way to increase your Sphere of Influence if used properly,certain free applications like TwitterLocal.net or NearbyTweets.com can The April 12th Monthly Meeting will host James Goddard, a Toplet you know of the local "active" people tweeting in your area. Use Twitter Producer who knows how toto sell yourself directly and become the expert to a whole new segment, monetize Social Media and willand build your Sphere. show you how to give yourLinkedIn: The business people, the decision makers, it is the party of the business an edge."in" people, the crowd you want to be associated with. With the average At 25 James purchased his firstage of 41, it is not a kids site. Many will say it is a Media that is for getting business and sold it less than ajobs, so true, but the reason it is, is because the decision makers of the year later for twice what hecompanies you want to work at are there. So many ways to maximise with paid. As an agent he was a topthis site, but most importantly, create a great profile (an online resume) agent Prudential and then Cold-and get recommendations. The beauty is that you can be selling yourself well Banker. As a Manager ofto people you want to everyday by simply having it "out" there. the Coldwell Banker he pur- chased in 1996, he QuadrupledThese are the three Medias you need to be using if you want to be able to company sales and sold theget your message to the widest audience cost effectively. You can either brokerage for 12 times what hedo it now while not everyone is using it, and carve your niche, or you can paid. And in 2008 as the aver-wait until you are forced to in the changing business world. That younger age agent‟s income went downgeneration that is coming up not only knows how to use these Medias way 30%, James went up 15% whilebeyond what over 35 people do, but have numbers of followers that they he worked less.cannot comprehend. The question I ask is how do you beat these new James is going to share with usentrepreneurs coming up?  What Social Media to useExperience, that is what the younger generation lacks. Imagine if YOU areone of the people who can step out of your comfort zone and start market-  How to use Properlying yourself using the Medias properly, how much you can benefit during  Best Ways to get Clientsthis window time period. I say window meaning that soon the way busi-ness is being done is going to change.  A Weekly Business PlanReal Estate is one of the greatest examples, the average age of a Real  How to use Social Media toEstate agent is much higher than most industries, and when computers Increase your Salescame in they lagged behind, when email became the way to communi- Most importantly he will sharecate, they hopped on the band wagon way after everyone else. Do you how Social Media is changingthink they will shift and change quickly this time? I think not, which means the way we do business andthat those that do, are going to benefit like you would not believe. how YOU want to become aThe Medias now make it so you can contact and get your message to the part of it!masses, and get them to contact you! The key, is what to use. Understandthe human behavior that stops most, and how simple systems put in place All attendees will findproperly, will move you toward the life you dream of. out how to get a FREEI show people what to use, and how monetize. I could have made this a Time Budgeting Guide-50 page document, but I give you a taste, and when I speak you will know line for your Real Estatehow to capture leads with ease. Business. Page 9 Investment News
  • 10. The Fair Lease Purchase An Investors Perfect Hybrid We see them all over the roads to- The “buy and hold” model by definition is for day. Growing in popularity, Hybrid vehicles the investor who seeks to hold property for are beginning to offer an enticing option to the long term. Many “buy and hold” investors d e p en d en ce on fo rei g n oi l su p - envision funding their retirement years by plies. Similarly, the Buy Low, Rent Smart, selling the properties once the notes have Sell High lease/purchase model offers inves- been paid off, sometimes thirty years after tors a Hybrid of the “buy and flip” and “buy purchase. A key benefit for these investors is and hold” investment models. that the need to acquire these properties at a significant investor discount is minimized, as Most residential investment models resemble the investors are seeking their primary return and can be grouped into one of two general many years into the future. Thus, the supply categories. Each has a major flaw that con- of homes that meet their long term invest- cerns many investors who consider or invest ment model is often plentiful. in each model. There are two main issues with the “buy and The “buy and flip” model by definition is for hold” model. First, there are no opportunities the investor who seeks to purchase property for “cash windfalls” from the real estate dur- at a discount, oftentimes improve the prop- ing the “hold period”. Without the cash wind- erty, then sell the property quickly for imme- falls, funds to expand the portfolio generally diate gain. This model is ideal for investors must come from the investor’s day job, other who have no interest in landlording, as the investments, and sometimes partly from posi- “buy and flip” investor does not intend to tive cash flow. Because of such “slow seek a tenant for the property in advance of growth” characteristics, it is rare to find a sale. pure “buy and hold” landlord with much more The main problem with the “buy and flip” than five or six properties. model is that if a buyer does not come by Second, many “buy and hold” landlords burn quickly, then the investor is faced with dis- so much time, effort, money, and energy tak- counting the property and/or involving a real ing care of repairs, maintenance, and high va- estate agent in the marketing of the prop- cancies common with pure rental property erty. Due to this possibility, most “buy and (some investors delegate this to a manage- flip” investors need a discount of 25% or ment company, and while this may save the more even after adjusting for the necessary investor time, it cuts into the profits as the repairs and improvement. With such high management company must be paid for their investor discounts, the pool of properties work). The time, effort, money, and energy available with such significant discounts is spent dealing with landlording issues often often small. Simply put, the higher the dis- serves to minimize the investor’s ability to count the investor needs to make his or her grow his or her portfolio to any reasonable model work, generally the fewer properties available at such a steep discount. (Continued on page 11)Page 10 MAREInet.com
  • 11. size. Worse, troublesome land- does not exercise the purchase less money and time spentlording experiences often sour and vacates either voluntarily or landlording. That time andnew investors on real estate. involuntarily, the properties money can then be better spent generally are in much better expanding the investor’s portfo-A properly implemented “buy condition than had the tenant lio to truly significant levels.and lease/purchase” model been a typical renter.takes the best of the “buy and Does this “buy and flip” andflip” and “buy and hold” mod- What do we mean by “fair” “buy and hold” hybrid modelels. It also minimizes each lease/purchase as noted in the work in practice?model’s most glaring flaws. title? Indeed one must allow forFirst, most investors who use Sadly, many investors have variation as no model is imple-the lease/purchase model are given lease/purchase a bad mented exactly the same byable to “flip” some of their reputation by offering restrictive any two investors, and marketsproperties and sell others to terms designed to minimize the across North America can betheir lease/purchase ten- lease/purchasers probability of incredibly different. However,ants. This allows the investor exercising the purchase option, implemented correctly and into generate the “cash windfalls” while “supposedly” maximizing the right market, we can attestnecessary for portfolio expan- the investor’s return. We have that an investor can manage asion, without the pressure of- found a correlation between of- large portfolio of properties withhaving to sell that is specific to fering attractive and reasonable minimal management time withthe “buy and flip” option terms, and the profits the Fair Lease/Purchase Hy-model. Additionally, the inves- available to the investor, our brid. We have, and we’ve beentor should be able to make pur- “win/win” philosophy. People able to do this while maintain-chases work with as little as are not stupid, and if the terms ing full-time day jobs.10% investor discount (much are not attractive demand for If Hybrids are the automotiveless than the typical “buy and the investor’s lease/purchasesflip” model), because the pres- will be minimized. By making future of our country, perhapssure and risk associated the terms especially attractive, the Fair Lease/Purchase Hybridwith having to sell fast is no there should be higher demand will be the perfect model for in-longer present. for the lease/purchase, and the vestors concerned with the investor can be more selective flaws of either the “buy and flip”Second, on the landlording side, among the available candi- or “buy and hold” investmentmost lease/purchase agree- dates. Carrying this suppositionments transfer the repairs and models. further, higher quality tenants mamaintenance responsibility to placed in the property meanthe tenant, as the tenant is not reiUa typical renter but rather a“future homeowner”. The typi- .comcal lease/purchase agreementcan also be signed for signifi- Andy Hellercantly longer terms. Both is one of the featuredthese factors save the landlordmuch of the time, headache, national trainers on our newand cost associated with up- online training university. Visit to previewkeep and turnover common his course REOs and Lease Options, madewith most rentals. A final bo- up of 13 thirty minute modules.nus is even when the tenant Total cost if you purchase is $39.00 US Investment News Page 11
  • 12. Square Peg Round Hole? If you do any type of marketing for motivated out 90 leads that could be of some value to sellers you are probably sitting with a pile of someone. square pegs that just will not fit. One option I have found that works well are You probably have a variety of leads that: listing them my self. We sometimes get leads that are total rehabs or in my book a  Need to be listed by a Realtor for a nice total tear down. I don‟t want to buy it and retail sale. rehab it yet I am sure there is someone out  Need to have a short sale negotiated. there who might want it. So rather that  Have tenants that you don‟t want. working really hard to get the seller to sign a purchase contract for 90 days with a ton of  Need more work that you are willing or weasel clauses, I list it for a flat fee commis- able to do. sion and in most cases I have found a buyer  Are the wrong type of property or in the who is braver than myself. For this option wrong area. alone, I hold a real estate license. For what ever reason they just dont fit your Second are the houses that need listed. If niche or mine. So what can you do with you go back through the dead leads in your them besides toss them aside, who has the stack at about 90 days later, you will find time or energy to chase a deal that just does that probably 5 of them were listed a few not work. days after you talked to the seller, and sold for a decent price in a fairly short period of If you are like me, on average out of 100 time. If you hold a real estate license, you leads that come in, only about 30 are going can offer to list or refer it to a realtor for a to fit enough referral fee. If you are not an agent, sorry for me to go you can‟t legally ask for a referral fee, but look at. Out you could send these leads to a realtor of that 30, friend in exchange for some other thing of only about value: say comps, discounts when they list 10 are going your house, be creative. to get an of- fer. We Houses that are just out of your area, you might only might find an investor to trade those leads buy 2. with. For example, I get a bunch of Missouri leads that are in St Louis, while a friend in St So if you Louis gets about the same number of Mis- look at it, we souri leads in Kansas City. We just trade. are pretty much tossing (Continued on page 13)Page 12 MAREInet.com
  • 13. Then we have leads that arenot the right kind of property. Advanced InvestorsWe buy single family houses, Focus Groupso we get a call for a car washor a mixed use commercial Happy Hour in Waldobuilding or a hotel. These Isend on to a commercial real- Wednesdaytor. March 20thI have the luxury of having aReal Estate License so I am 5:00 to 6:30able to obtain a Referral Fee. If TopicI did not have a license I would FREETrialWebsite.infolook for a non-monetary way to Monetizing Dead Leadsget compensated for yourleads. FREE Gift!So what do you do, I would love Who are “They” &to get some new ideas! Please Why did they “DO IT?”look for this article post on the Get instant access to 3 greatMAREI Blog and post your MAREI monitors Localcomments. FREE Bonuses. Valued at $200: Must Know RE Terms City & State GovernmentsAbout the Author: Kim Tuckerand her husband Don buy and Glossary, Think & Grow Rich As well as Nationally.rehab homes in the Kansas City Book , and Training eCourse.Metro area. See their add forkcmoHomeBuyer.com or give Be sure to register for ourthem a call at 816-523-4400. newsletter for important updates& calls to action.Be sure to use your discountcard for savings of up to 40% 2% Rebate, Get Registered.off regular pricing in all stores Instructions in the membernationwide. This is all part of area of MAREInet.com. Loga NATIONAL Contractor Ac- in, click on Member Librarycount for awesome price sav- and look for Home Depot inings! Card is in your mem- MAREIandCC.info the Benefits Section.bership package! Investment News Page 13
  • 14. Professional Housing Provider Mission: Enable…members to expand their ignation, and should recognize that having a education and knowledge via courses as basic education in the topics outlined will valuable tools to attain successful goals and increase his or her ability to reach their present a professional image to the public goals in real estate investing. Further, as and government. MAREI and National REIA works to make What is the PHP? the National PHP designation more recog- PHP stands for the Professional Housing nizable, it is hoped that the PHP holders will Provider program. have an advantage in dealing with legal and What is the PHP designation? governmental bodies when a “my word against his” situation occurs. It will also aid The PHP designation is a metrowide, educa- in encouraging legislators to think of edu- tion-based certification program designed to cated investors as a larger group for political recognize the high level of knowledge and action. Other tangible benefits, including professionalism among the designation discounts on courses and educational mate- holder. It is sponsored and overseen by the rials, may be added as the program devel- Mid-America Association of Real Estate In- ops. vestors (MAREI). Benefits Why obtain the PHP designation?  Professionalism – This level of high es- Only persons completing the educational re- teem for Graduates is perceived by quirements on the Course of Studywill be peers, the local media and local govern- permitted to hold themselves out to the public ment officials. as a Professional Housing Provider. The des-  Accreditation – Graduates qualify to use ignee will be recognized in the form of an the PHP title and/or initials on their busi- award certificate and the right to use the des- ness cards, for rent signs, name badges, etc.  Awards – Personal certificate awarded to each graduate.  National PHP – Graduates from states with identical programs automatically qualify for the National Professional Housing Provider Award. Keeping Track of Hours/Credits – Paper- PHP work It is the responsibility of the individual candi- date to keep track of his/her own attendance certificates.Page 14 MAREInet.com
  • 15.  MAREI to certify that youhave completed the required accuratecourses.How Will I Obtain Credits?The hours may be obtained Accurate Closings:through local association meet- Smooth, Timely, Professional.ings and seminars, or through Title Services Provided for:accredited courses taught out-  FSBO, Wholesale, & REO Transactionsside of the local association. All  New Construction Closingsoutside courses and seminars  Commercial Purchases and Refinancemust meet the following re-  All Types of Loan Closingsquirements: they must betaught live; they must be pre- MAREI  1031 Exchanges  FHA, VA, USDA, Conventional Loans, Internshipsapproved by the PHP commit-tee, and they must provide a and Hard Money Loan Closings  Refinance & Reverse Mortgagescertificate of attendance accept- Managing  Doc Prep, Prelim HUDS, Curing Issuesable to the PHP Committee.Attendance Websites  Short Sale Closing & Assistance  100 Years of Combined Service!In order to receive credit for any Bookingmeeting, the candidate must be Events www.AccurateTitleCo.comin attendance for at least 90% 913-338-0100 phoneof the meeting. NO credit will be Sellinggiven for partial attendance. All Advertisingcandidates must have their at- PRIVATE LENDERtendance form stamped or ini- Graphictialed at the beginning of the Design Locally Owned & Operatedevent and at the end of the Private Money Lenderevent. Email We are a Direct Lender,Sometimes there are a number info@MAREInet.com not a Brokerof investors who typically standoutside chatting for the majority  Rehab Loans up to 100% of Costsof the lecture. This does not  Up to 65% of the ARVcount as attendance at the  Terms from 30 Days to 1 Yearmeeting. Remember this certifi-  Rates from 12 to 16% Interestcation reflects a high level of  Points from 6 to 10education among the gradu-  Appraisals Requiredates.  Draw Requests on Wed.Find out more anddownload the Course of RockStarInvestor.comStudy and Master Record Jeff BaslerSheet on the MAREI web-site. Look under Education. 913-221-9080 Investment News Page 15
  • 16. Your Business IS In your Database In any direct sales business including real estate, industry and that you would appreciate follow ups. the size of your business will be in direct propor- Then on a systematic basis follow up with them via tion to the size and quality of your database. email, text, or social media with something that the better equipped you are to generate leads the shows your expertise in the “x” industry. better your ability to amass a large database of So for example you are a realtor and farming a contacts and then systematically market to them. specific neighborhood or neighborhoods. You So to succeed in your sales business, you need to might want to send out quarterly a market update First build a database, add new contacts to it every for your specific neighborhood or city data and day, find a way to communicate with your contacts then fill in the other months with helpful articles or systematically (meaning you need a system in information related to real estate. place), and then service the leads so they gener- ate more leads. Next you want to do activities that allow you to meet new people every day to add people to your So we start at the first step, building a database. database. And as you add the people, again fol- You have a lot of choices in devices to store your low up with them systematically to make sure database. You can go with an old fashioned con- these new people know who you are. tact book or rolodex. Upgrade to an excel spread- sheet our Microsoft Outlook. But to truly systema- Now as you go through following group with all tize your database, take a look at a contact man- these contacts you want to find a system to direct agement program. Most industries have contact you when and how to follow up with each category of contacts. Most of these contact management management system geared for the industry. programs that you can buy or subscribe to will let Look for a system that will allow you to group dif- you create a system and then send out some of ferent types of contacts together. Have a built in the contacts automatically, making you look really autoresponder system that will allow you to auto- organized and efficient. And some of them come matically follow up via email. One that will allow preloaded with systems that you just need to per- you to set up systems of follow up: emails, letters, sonalize and others may provide you with front end phone calls, for each type or group of contacts. websites to capture those new leads. And in real estate you may want to also look for one with the ability to attach forms and documents So now you have a database, you are adding and manage real estate transactions. leads to it every day, you are following up with them on a regular basis. Then your next step is to Next you want to add every single person you offer good customer service and take care of all know into your database to start off. These are the customers that come your way from your data- your initial circle of influence. Getting started you base and from referrals from your database. your sales business will require you to start follow- ing up systematically and on a regular basis with If you would like to learn more about lead genera- everyone in your database. These are people that tion, databases, follow up systems and generating you already know and respect you. The systematic new business, attend our Lead Generation work- follow up is to let them know that you are in “x” in- shop on Thursday April 14th. dustry and to build your credibility as an expert in your “X” industry. You may want to call initially to let your contacts know that you are now in the “X”Page 16 MAREInet.com
  • 17. TE-TEE LIGHT ELECTRICAL SERVICES Keeping you “In-Powered” with “Flexible rehab options Superior Electrical Service! and purchase financing for  FREE Estimates qualified investors!  FREE Consultations on Non-Emergency Ann Wilkinson Vice President  24-hour Same Day Emergency Service Mortgage Loan Production 12501 Antioch Rd Licensed, Insured, Bonded Overland Park, KS 66213 Serving Kansas & Missouri Ph: (913) 402-1500 Fax: (913) 402-0673 AnnW@ArgentineFed.com George Z. Bai, Sr. - Owner www.ArgentineFed.com Office (816) 356-1870 Cell (816) 210-4710 TeTeeLight@gmail.com Do you have a house you need to sell? A wholesale or Assignment you need an end buyer for? “Presentation is Everything!” We are looking for homes to Rehab and Sell to First Time Home Buyers. Please add us to your Buyer List. Parameters: Canyon-Stone.com  After Repair Value $120,000 to $180,000  3-4 Bedroom, 1.5+ Bath  Basement & Garage Preferred 550 E. 56 Highway, Suite B  Like Post 1978, but will consider older Olathe, KS, 66061  Cash Buyers, no Appraisals or Loan Qualification Phone: (913) 254-9300 Fax: (913) 254-9301 kcmoHomeBuyer.com info@canyon-stone.comInvestment News Page 17
  • 18. Government Affairs See more info under our Government Affairs Tab at MAREInet.com Local The Kansas City Missouri Water Department seems to be the biggest local issue for our Government Affairs Committee. We have met three times since January with Water Department and City officials in conjunction with Landlords Inc. These three meetings have led a few key changes regarding billing in Water Department Ordinances in Kan- sas City Missouri. These changes still need to be implemented by the Water Depart- ment but it is a Step. Our next big issue is the Billing of Landlords for Tenants Bills. We need your help here. We need actual instances of this to provide evidence that this is really happening on a much larger scale than the Water Department believes. Please take time right now to email (info @ MAREInet.com) your actual issues of being billed for tenants usage. See more on our Water Department Page Copper Theft Please join us in finding a solution. If you have constructive information to contribute of ways other cities and states have combated Copper Theft, please join us on Facebook Stop Copper Theft Now. And note that all Government Officials seem to be very inter- ested in a solution. Kansas Legislation We browsed proposed and passed legislation in Kansas and have compiled the infor- mation on our Legislative Tracking page. Nothing of note. Missouri Legislation Our Legislators in Missouri have been busy proposing a lot of bills and you can read through all of them or just the condensed version of those we thought our members would have interest in. We have laws proposed regarding tenants security deposits, tenants not paying rent, contract for deed laws, foreclosure laws and more. Note one law was proposed by one of our members Gary Cross. Look for HB 748. Federal We recently sent out a call for action on the discussion at the Federal Level on Mort- gage Interest Tax Deduction. Read more and take action on the Realtor Action Center Page. And you sill have time to attend National REIAs Day on the Hill in Washington DC on April 13th & 14th.Page 18 MAREInet.com
  • 19. For Investors By Investors More Information . . .In this market, you want an agent on your More Confidence side that has the knowledge, the ability, the EXPERIENCE, and the resources to help you! More Profits Tenant Screening Pre Employment Screening Contractor Screening Collection Services Realty Resource 115 E Gregory, KCMO Discounts for MAREI Members 816-523-4400 www.AAAScreening.com www.RealtyResourceKC.com 816-436-0085 On Demand Training 30 Minute Segments Top Investor Trainers Do the math. Your vacancy is costing you every day. From the Comfort of Fill your vacancy faster and save money with Rentals.com! Your own Internet Connection Get Started Today Discounts for MAREI Members: Receive 20% off all Regular www.MAREIU.com Priced Advertising. Log into Member’s Area, click on Member Take a FREE Trial Discounts and look for MAREI’s With Andy Heller Discount code! REO’s & Lease OptionsInvestment News Page 18
  • 20. TRAINING Wholesaling 101 Fast Start to Cash Date & Time April 23th Make small chunks of cash by wholesaling properties! 9-12 pm Join us and learn: Location  What is a wholesale deal 115 E Gregory  What are the best houses Kansas City, MO  How do you get paid? PHP  Which is Better Double Closing or Assignment  What happens at closing? 1 Credit Marketing 3  Who should be on your buyer‟s list? 2 Credits Mgmt PHP  How to build a buyers list, FAST! Cost CREDITS Members $39 Wholesaling is one if the best places to start in real Non-Members $49 estate investing because it feeds all other forms of Register Online investing, teaches marketing, and lower costs. Buying at Auction Maximum Profits while Minimizing Risk Date & Time Heard about buying houses on the courthouse steps, April 23th 1-4 pm but not sure where to start? Location Join us to Learn: 115 E Gregory  How to Examine Title Kansas City, MO  What to look for in Public Records PHP  Tips for Staying Safe while Viewing Properties  Estimating Repairs when you Can‟t Get In 1 Credit Inspections 2 Credits Purchasing  How to Bid at the Auction and Stay Cool  What to do when you are Successful Bidder. Cost 3 Workshop taught by Kim Tucker with kcmoHome- Members $39 Non-Members $49 PHP CREDITS buyer.com. Kim and her partners bought and sold Register Online over 20 houses at the courthouse in the past 2 years.Page 20 MAREInet.com
  • 21. EVENTS April Webinars Learning at Home April 7th: Self Directed IRAs with Edwin Kelly April 12th: Effective Business Page Marketing with Facebook April 12th: Rock Your World with a Roth IRA April 19th: Learn 7 Key Elements to a Successful Web Strategy April 26th: The Perfect 60 Minute Listing Presentation May 3rd: How to Effectively Market to Sellers In Foreclosure LEAD GENERATION Your Business = Your Database Date & Time April 14th Sales training out there shows that they key to any ser- 1-4 pm vice or sales business is having a database of people Location you know, adding to it on a regular basis, communicat- 115 E Gregory ing with it systematically, and Servicing all the leads Kansas City, MO your database brings to you. In this two part workshop PHP we are going to discuss your circle of influence, how to 1 Credit Marketing influence it and build credibility, how to grow it, and how 2 Credits Mgmt to covert it into sales dollars. Cost 3 Members $39 PHP Workshop taught by Kim Tucker Broker at Realty Re- Non-Members $49CREDITS Register Online source using methods she has used to grow both her Real Estate Business and MAREI. Investment News Page 21
  • 22. Wholesaling Step by Step There are a lot of “gurus” out there teaching put it all together to determine how much wholesale real estate investing that did 100 the house is worth now and when fixed up. deals their first year, wrote a book and are 4. Negotiation is the next step to master. now out there teaching. You will be negotiating with sellers to get Why do they focus on wholesaling? Well who the lowest possible price at the best terms knows why gurus do anything. We are focus- for you as a buyer, then turning round and ing on Wholesaling as it is one form of invest- negotiating with the buyers for the exact ing that does not take a lot of money, is not same things for you as a seller. overly difficult, and your success can be in Along the way you have a lot of other factors direct proportion to your marketing efforts. consider. Wholesaling is also a good point to start your What price ranges should you be buying in. investing business because if you perfect the Well that will be determined by your buyer list technique, it will be well versed in almost all and areas you want to work. Here in Kansas the aspects of other investing. City you can find a lot more cheap low end So what are the key steps you need to mas- houses and make a very small chunk on a lot ter? of houses. Or you could look in a nicer price 1. Marketing is the most important task you ranges, do fewer deals, but earn more per will need to learn in marketing. You will deal. need to market to build your buyer „s list. Wrapped up in the price range is the You will need to market to find motivated neighborhood. A great deal in an owner occu- sellers. Last you will need to market to put pied neighborhood is going to be much easier your deals together with you getting paid to sell while a cheap house in a low end high in the middle. rental neighborhood might take a lot longer. 2. Evaluating deals will be your next task. If Another consideration is going to be how are you market right you will have a lot of you going to get paid. You have a lot of op- deals to potentially look at and make an tions from assigning the contract, double clos- offer. So first you will need to be able to ing, buying and then selling at a later date or evaluate on the phone and prioritize which just getting a real estate commission. These houses are a waste of you time, which options will depend on your access to cash to ones to refer out because they don‟t fit do a deal. your model, which ones to follow up with If you are just starting out in real estate invest- later, and which ones to go look at right ing or if you want to learn the basic concepts now. in real estate investing that work for real right 3. Evaluating properties is the next step. here in the Kansas City market, then join us at You will need to be able to estimate re- our Wholesale 101 Training Workshop on Sat- pairs and holding costs and then evaluate urday April 23rd. the house for an after repair value. ThenPage 22 MAREInet.com
  • 23. April 5 NAR Webinar Realtor Safety at Open Houses April7 Webinar Ask Edwin: Self Direct IRAs April 8 Networking Johnson County Networking CALENDAR April 9 Workshop EPA Lead Safe Certification Details, Times, Locations, Cost & Registration at www.MAREInet.comApril 10th Networking Lee‟s Summit Investor BreakfastApril 11 Deadline Date to Reserve Vendor Tables for TuesdayApril 12 Meeting Monthly Meeting: 101 Ways to Use Social MediaApril 12 NAR Webinar Effective Business Page Marketing in Face- bookApril 12 Webinar Rock your works with a ROTH IRAApril 13 Webinar Commercial Investors GroupApril 14th Workshop Lead GenerationApril 15 Networking Johnson County InvestorsApril 19 NAR Webinar Learn the 7 Key Elements to a Successful Web StrategyApril 20 Focus Advanced Investors: Monetizing Deal leadsApril 22 Networking Johnson County InvestorsApril 23 Workshop Wholesaling 101 for Fast CashApril 23 Workshop Buying at the CourthouseApril 27 Networking Commercial Investors Sub GroupApril 29 Networking Johnson County InvestorsInvestment News Page 23
  • 24. FREE Membership With MAREI Money How to Get (almost) FREE MAREI Money Invite a First Time Guest to Attend: Click left to for our Potential Member Package. Download and Wouldn‟t it be nice if someone paid you to become a email to a Friend. They can print the guest pass better Real Estate Investor or Business Entrepre- part of the package and insert YOUR name as refer- neur? ing them. When we process their guest pass we will Well, here at Mid-America Association of Real Es- credit your account with $5. tate Investors, we do just that! Refer a New Investor Member: After your friend MAREI has a FREE money program that will put checks out their first meeting, be sure to follow up credits (or MAREI dollars) in your MAREI member- with them to see if they have any questions. Please ship account that can be used to pay for member- don‟t hesitate to call or email MAREI to get the an- ship, OUR workshops, vendor tables, and other ad- swer. Remind them that when they join, to put in vertising. your name as a referral. When they join, we credit And every time you attend an event, you‟re guaran- you with $10. teed to learn something that will save or make you Refer a New Business Member: Do you have money. Here‟s how it works. . . businesses that you work with on a regular basis Do one or more of the following and you‟ll automati- that would benefit from being a member of cally get credited: MAREI. Please Invite them to Attend First Time as your Guest, tell them about Business Membership ,  Invite a Guest to a Meeting………………….$5 and email us with their contact info so we can follow  Refer a New Investor Member……………. $10 up. When they join we credit your account with $50.  Refer a New Business Member……………$50 Volunteer: We need help with set up, check in, and clean up. Sometimes with handouts and  Volunteer (per event)……………………… $10 more. Please email us to get on the volunteer  Work in MAREI Office (per hour)………… $10 list. When you volunteer at an event, we credit you $10. And last, but not least. . . Special Projects………………………………Varies Work in MAREI Office: This is basic clerical stuff. Copies, Assembly Filing, Stuffing, Addressing, As an investor, you need to see a good deal and take action, so start adding to your MAREI account and maybe more depending on your skills. Pay for today! clerical help is $10 in MAREI Money per hour. For In order to use your credits, you must be a specific skilled jobs with newsletter creation, ad MAREI member. creation, creation of educational materials, teaching classes, training videos, webinars, more . . . we can If you haven‟t joined yet, what‟s stopping you? work with you for a bonus bucks payment structure. Join NowPage 24 MAREInet.com
  • 25. See all properties on the classified page on MAREInet.comOffered As Address City Price Bed/ Contact Phone BathRehab Stratford Estates Kansas City $40,500 3/2 F Jannsen 816-359-3337Owner Fin Near Blacktop Lake Ozarks land S Summers 816-350-7200Owner Fin Kansas City, MO $25,000 2/1 S Summers 816-250-7200Rental Kansas City, MO $32,500 3/1 S Summers 816-507-4203TLC 309 Hill St Belton, MO $29,500 3/2 C Becker 816-419-1165Rehab 850 Shawnee Rd Kansas City, KS $19,500 3/1 B Bomboma 913-735-9997Turn Key 6032 Everett Kansas City, KS $45,000 2/1 K Tucker 816-523-4400Turn Key 3209 E 69th Tr Kansas City, Mo $30,000 2 / 1.5 K Tucker 816-523-440Rental 2631 Montgall Kansas City, MO $15,500 2/1 C Becker 816-419-1165Rental 3928 Highland Kansas City, MO $24,500 3/1 C Becker 816-419-1165Rental 9909 Wheeling Kansas City, MO 33,500 3/1 C Becker 816-419-1165Turn Key 5254 Skiles Kansas City, MO $35,000 2/1 K Tucker 816-523-4400Turn Key 7424 Bellefon- Kansas City, MO $35,000 3/2 K Tucker 816-523-4400 taintTurn Key 5956 E 129th St Grandview, Mo $45,000 2 / 1.5 K Tucker 816-523-4400Rental 509/ 513 Maple Liberty, MO $150,000 2/2 John Parr 913-634-8230Rental 501/505 Maple St Liberty, MO $150,000 2/2 John Parr 913-634-8230Fixer 3815 Flora Kansas City, MO $12,500 3/1 C Becker 816-419-1165Rehab $75,000 B Bomboma 913-735-9997Rehab 937 Haskell Kansas City, KS $11,950 3/1 C Becker 816-419-1165Rehab Kingsidge West Blue Springs, $49,900 4/2 R Walls 219-864-1788Rehab Jackson County $15,000 4/2 B Bomboma 913-735-9997Rehab 4737 Norton Ci Kansas city, MO $22,500 3 / 1.5 C Becker 816-419-1165 Investment News Page 25
  • 26. Buying at the Courthouse My partners and I have been buying the majority sale price in certified funds right there. Oth- of our houses on the courthouse steps in Jack- ers will settle for 10% now and the rest wired son County for the past 2 years. by noon the next day. So having a ready It has some really great upsides, like the fact source of cash funds is a must. that once the bidding is over, YOU OWN the 4. There is no inspection or due diligence pe- house, for the most part. There still is the matter riod. So for example, if you are buying a of you paying for it right now and the final filing bank owned house, you get it under contract of the deed. If you have ever went through the and per the contract you have so many days hassles of trying to close a bank owned property to do inspections and possibly renegotiate lately, you might like a 5 minute process to buy- the sale price or back out. At the court- ing a house. house, once you win the bid, there is no When buying at the courthouse you can also backing out. make some great profits, but remember when 5. You may or may not be able to get into the there is potential for great profits, there are also house before you go to the auction. For the a lot of RISK. So you need educate yourself on majority of deals you will be able to drive by the risks. and see the outside of the house. But Some of the risks and drawbacks you need to unless the home is listed for sale and or the know about are as follows: owner will let you in, you are bidding com- pletely based on the outside of the house. 1. Does the state in question have a redemp- tion period. This is a time period set after a 6. You are buying who ever is living in the home is sold at the courthouses steps where house at the time. You may be buying a ten- the original borrower can make the loan ant you will need to work with to keep or good and get their house back. In the mean move out. You may be buying a house with time your money is tied up in a house that the previous owner in the home and they you may not get to keep for 30, 60, 90 days may not want to move. Or they may move or longer. but be upset and do damage to the house on the way out. 2. You are not guaranteed clear title when buy- ing at the foreclosure auction. For the most 7. The hardest drawback for me to deal with part a foreclosure on a lien will wipe out any was the time frame involved. Here in Mis- junior liens. So you need to be able to do souri the attorney will file foreclosure and your home work and research which lien is have 21 days from the date of filing to the foreclosing, what position is it in and are sale. In theory if we can find out about that their any other liens like a State Tax Lien sale through a list service we should have 21 that would not be wiped out. days to do our homework. Here‟s the prob- lem. If 100 loans had foreclosure filed on 3. We hinted at this before, but you need to them today, maybe 20 would actually go to have all your cash ready to go at the time of sale in 21 days. So there is no point in doing the auction. Many will want 100% of the (Continued on page 27)Page 26 MAREInet.com
  • 27. any homework until the day We had another nice newer home we just walked away from because before. And many times a we purchased that we had to work we were uncomfortable dealing house that is on the list for sale with the homeowners until they with the occupant. Kicking tomorrow, may not get priced moved out. They left the house in grandma out of her house is not until the time of the sale. So brand new condition. Other than fun. you spend hours of your time shampooing the carpets and in- As a form of investing, I have to researching a property only to stalling appliances we did nothing say it is a really great option if you have the house not go to sale to it and sold it fast for a tidy sum. have access to the necessary because it either gets canceled We reduced our risks by doing our cash and have the ability to do or never priced. Or you skip homework. That means we did your own homework. You need to one because it is not priced our own title research with a few also have a bit of gambling blood, and then you hear that some- key phone calls to our title attorney because if you are looking for a cut one bought it for cheap. to verify the weird ones. We and dried, sure thing, by the num-I remember the first house we walked away from a few because bers kind of deal, well you don‟tbought. From the outside it looked we were not sure. find those every day at the court-really nice, well painted, clean house. We drove by to see the outsideyard. We bought it. When we got and did our best guess at estimat- If you would like to learn moreinside later that day it was vacant ing all repairs from the outside and about this process, join me on Sat-with wall to wall pink carpet, 2 pink on a few were lucky enough to get urday, April 23rd for a 1/2 daybathrooms, a kitchen from 1952 inside. workshop where we will review thewith a nice haze of nicotine all over steps necessary to minimize theeverything and a really bad foun- We also did our best to deal with risks of buying on the courthousedation. We sold it and made the tenants and previous owners steps.money. that came with the houses. Some Track Foreclosures Lead Lists Complete Details Pre-Notice of Default Pre-Foreclosure Including Addresses Affluent Consumer Jackson, Clay, Platte Free & Clear Homeowner EZ Data Group Foreclosure Absentee Owners See housing stats online Newly Listed Homes www.KCRAR.com New Business leads Resources Tab Custom Consumer Leads EZ Data Group Leads Heartland MLS Statistics Investment News Page 27
  • 28. MAREI REFERRAL TELL A THEY FRIEND ATTENDSend them to MAREInet.com/FREE for a They use the guest pass to attend and putFirst Time is FREE Guest Pass. your name down as referring source. THEY YOU GET JOIN MAREI MONEYThey like the meeting, they like MAREI, We credit your account with MAREI Moneythey join and THANK YOU. for your Membership, Events, or Advertising.

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