Transcript of "The Real Estate Investment News: Oct / Nov 2013"
2013 RE investment News
NEWSNEWSNEWSNovember 2013 Volume 1November 2013 Volume 1November 2013 Volume 1
Private LendingPrivate LendingPrivate Lending
K i m T u c k e r ’ sK i m T u c k e r ’ sK i m T u c k e r ’ s
I n s i d e S c o o pI n s i d e S c o o pI n s i d e S c o o p
ABrand New YearABrand New YearABrand New Year
C h e c k O u t W h a t i sC h e c k O u t W h a t i sC h e c k O u t W h a t i s
N e w f o r M A R E I i nN e w f o r M A R E I i nN e w f o r M A R E I i n
2 0 1 42 0 1 42 0 1 4
Gift MembershipGift MembershipGift Membership
A v a i l a b l e f o r M A R E IA v a i l a b l e f o r M A R E IA v a i l a b l e f o r M A R E I
M e m b e r sM e m b e r sM e m b e r s
2 RE investment News 2013
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2013 RE investment News 3
Real Estate Investors
RE INVESTMENT NEWS IS PUBLISHED
IN ASSOCIATION WITH
OF REAL ESTATE INVESTORS
8014 State Line Rd
Leawood, KS 66208
Mid-America Association of
Real Estate of Investors and
the RE Investment News does
not exist to render and does
not give legal, tax, economic
or investment advice and dis-
claims all liability for the
action or inaction taken or
not as a result of communica-
tions from or to its members,
officers, directors, employ-
ees and contractors. Each
individual should consult
his/her own counsel, account-
ant and other advisors as to
legal, tax, economic, invest-
ment and related matters con-
cerning real estate and other
The views and opinions ex-
pressed by authors of arti-
cles contributed to this
newsletter do not necessarily
reflect those of the associa-
tion, the board of directors
or the staff.
Are you an expert in a specific area of real estate?
MAREI is looking for quality articles relating to real estate
both instructional articles as well as success stories to
share in the newsletter and or the blog.
Also looking for Real Estate Photos as well.
Please email Kim@MAREInet.com
Or call 913-815-0111.
4 RE investment News 20134 RE investment News 2013
Banks Are Not Our Friends
Author: Kim Tucker
2013 RE investment News 52013 RE investment News 5
Scenario #1: Well Seasoned Investor who has been investing in real estate for many years has a $100,000 line of
credit at their bank. They have never been late or missed a payment. They get a new property under contract, contact
the bank for the wire to close to find the line of credit has been canceled. Deal is lost.
Scenario #2: The same investor has 10 rental properties on a note with the local bank. Has never been late, has never
missed a payment and has rolled the note 3 times. His original note amortized over 20 years and has a 2 year balloon,
but with good stead payments, the note can be renewed every 2 years. He is all set to renew and he gets told he has to
pay off the note or be foreclosed on. No other bank is lending and he does not have the full amount in cash, so he
looses all 10 properties to foreclosure. Investors Credit is Shot.
So these two scenarios played out over and over and over again since 2007 as the banks stopped lending to investors,
started calling notes due and pretty much put a halt to all lending for a while.
Then banks, well they are slowly coming back to life and offering some loans to the real estate investor again if you
can find the bank, have the down payment and can meet their requirements and many can’t because of Scenario #2,
because they could not refinance a note, the bank foreclosed and now they have a foreclosure on their record, so no
more loans for a while.
Well back in 2007 and 2008 there was a very little known secret called Private Lenders. The Real Estate Investor who
had the private lender could gain access to money faster than working with the banks and mortgage companies, could
get loans for less closing costs if any, and for a lot less in interest.
Because the private lender is lending partly because of the investors credibility and experience and based on the equity
in the house, typically there is no credit check involved. And because you are borrowing or partnering with a private
individual, there is no reporting to the credit bureau. This is a good thing, not because you are going to default on the
loan but because it keeps your credit clean of multiple house loans so when you need to use your credit to get a mort-
gage, it is available to do so. Remember, often times lenders say you can only have so many loans in your own name
on your credit report. So if the private lender does not report it, the loan does not count against this arbitrary number
of traditional loans you can obtain.
Fast forward to 2013 and Private Lender and Private Partner and Joint Venture are the catch phase.
So with a traditional bank, you and I, the general public put our money in the bank for safe keeping and hopefully a
Continued on the Next Page
“With the Private Money Lender, we take
out the middle man spread. The Real Es-
tate Investor pays less for the money and
the Private Money Lender makes more for
their investment. “
6 RE investment News 2013
1% rate of return on our money. In
turn the bank lends it back to us for
say 6% interest. They make the
With the Hard Money Lender, the
guys that charge more . . . they take
contributions to their fund from
people wanting a better rate of re-
turn and offer them a much better
rate of return than the bank will
pay . The Hard Money Lender then
administers the fund to lend money
back out to the real estate investor
with Points up front and a much
larger interest rate.
With the Private Money Lender, we
take out the middle man spread.
The Real Estate Investor pays less
for the money and the Private Mon-
ey Lender makes more for their in-
vestment. But because the middle
man is not there to deal with the fall
out should things go south, there is
more risk, but remember the private
lender is getting paid more to take
on that risk.
So where are you going to find a
private lender . . . well, typically
they are going to be people that
know you who know and trust you
both on a personal level as well as
your business sense in investing in
real estate who are going to be will-
ing to take the risk to lend you
u might remember back in
There are steps you can take to
attract the people you know so
they want to do a deal with you.
The best being letting them
know about your latest great
deal you have just completed.
The more good deals you do, the
more likely they are to want to
partner with you. My first two
private lenders, well , they came
to me. “If I could do one or two
more deals a year with their
money and pay them $5,000 a
6 RE investment News 2013
deal, would it be worth it too me?”
Sure, we did several, I made more
money and they made more money
and my intro to the world of Private
Money was started.
Want to learn more? Well I have and
a ½ day workshop here in Kansas
City on October 19th
America Association of Private Lend-
ers that I hope you can attend .
If you are a member of MAREI, be
sure to check out the resources in
their member library, and please be
sure to do some research on Google
as there are a ton of resources there.
ugh 2006 when Neighborhood
Make Sure To Continue with Kim and
Private Lending on October 19th at
Career Education Systems
More Information on this:
Private Lending Workshop
On Pg 15
2013 RE investment News 7
A Brand New Year
A Brand New Year
Here in the MAREI Office the topic of conversation over the last month has shifted from idea to
idea, with the goal of making MAREI even better in the 2014 year. We’ve listened to the opinions
of members and guests alike, taking each suggestion into careful consideration. With the help of
our members, hard work, and dedication we’re proud to present a final product.
This month long brainstorming session spawned what can only be described as ‘massive potential’
for the future of MAREI. We have always set our goals to educate and connect real estate inves-
tors, and in 2014, were taking it to the next level.
Take a look at a couple of the BIG changes for 2014:
Each month we love the feed-
back from our members, and
each month we have heard two
things quite often. The first of
which is, “Why isn’t the meet-
ing closer?” Our members
come from all around the Kan-
sas City area and it is not al-
ways convenient for them to
make it to each of our meetings.
The second thing we hear is,
“We love networking, Why not
more of it?” With both of those
thoughts in mind we are happy
to announce the Roving Meet-
MAREI is going to take a small
road trip around Kansas City
every month. There is nothing
better than having the meeting
just minutes away! MAREI will
be ending our Northland Meet-
ing, and bringing the meeting to
you. North, South, East, West,
Here we come!
“What about more network-
ing?” You ask and you shall re-
ceive. The format of the new
meeting will be focused around
the networking aspect. A short
presentation at the beginning,
ranging from thirty minutes to an
hour, followed by all the network-
ing you can get your hands on!
We are very excited about this
here at the Office and we hope
now you are too!
Webinars and Online Training
If there is one thing that is certain,
MAREI members CANT get
enough education. With more
members each week, and attend-
ance constantly going up, we
have to make sure to keep you
with more options. We have taken
this responsibility to heart and
begun pioneering with the help of
some very talented individuals to
bring you Webinars and Online
Training courses which will
premiere through out 2014.
Make sure to check out the first
Webinar series of the year in January,
with Accurate Title Company. After
their event the past summer we kept
hearing that the members want more.
ATC has graciously agreed to do this
amazing 3 part webinar series and a
Saturday event to get MAREI Mem-
bers more of what they want. Make
sure to keep an eye out this December
for more information.
8 RE investment News 2013
MAREI Gift Membership
With the Holiday season approaching we here at MAREI decided to offer a whole new form of Gift for you to give this holiday
season. We have all experienced receiving the toaster we don't need on Christmas morning or the ugly sweater we just can t
bring ourselves to through away. We took this thought of those awful gifts and created MAREI’s ‘Red Rider BB Rifle’ This
year we announce the MAREI Gift Membership.
What better Gift to give this year than one that promote com-
munity and ethics within our wonderful real estate community
here in Kansas City. We all know someone we would like to
get involved in MAREI.
Help us welcome new people into this amazing family. We
have special priced this Six month Gift Membership in an ef-
fort to open up new possibility to Non-Members.
Included with the Membership:
-2 Free Guest Passes for Friends or Family
-1 50% Off Coupon for any Paid MAREI Event
Take this Opportunity to get a fellow co-worker, a fellow in-
vestors, or even a Member of your family involved in MAREI.
With an exciting year just around the corner there isn't a bet-
ter time to be involved with Kansas City LARGEST Real Es-
For More Information or to Pur-
chase a Gift Member Ship Visit
us Online at
2013 RE investment News 9
Professional Housing Provider or PHP Certification is a National Designation and
Certification from the National Association of Real Estate Investors.
Earn Your PHP Certification with MAREI
Earn instant credibility and show those you are working with
that you are a professional investor committed to the highest
standard of excellence.
All MAREI educational seminars have been approved for stu-
dents to earn credits towards obtaining the nationally ac-
claimed Professional Housing Provider Certification offered
by the National Real Estate Investors Association (National
To earn the PHP Certification, you must complete a minimum
of 60 credit hours of education: 42 hours in required core
subject areas, and 18 additional hours in the subject areas of
your choice. MAREIoffers all the seminars needed to com-
plete this certification program on a two year cycle.
What is the PHP Designation?
The PHP designation is a national education-based certifica-
tion program designed to recognize the high level of
knowledge and professionalism among the designation hold-
ers. It is sponsored and overseen by the National Real Estate
Investors Association, a non-profit trade association serving
the real estate industry.
Why Obtain the PHP Designation?
Only individuals completing the educational requirements will
be permitted to hold themselves out to the public as a
“Professional Housing Provider”. The designee will be recog-
nized in the form of an award certificate, pin, and the right to
use the designation. By having a standardized education in
the topics outlined increase your ability to achieve your goals
in real estate investing.
Further, as National REIA works to increase the visibility of
the PHP designation, individuals who have earned the certifi-
cation are held to a higher standard of credibility when deal-
ing with legal and governmental bodies. It aids legislators in
perceiving educated investors as a larger group for political
action, and in turn, provides our industry with greater legisla-
How Will I Obtain These Hours?
Mid-America Association of Real Estate Investors offers
course in all the areas needed to complete this certification.
When attending a MAREI PHP certified training event, at-
tendees must arrive within 5 minutes of the start time to be
issued a PHP Certificate and sign up on the final registration
sheet at the end of the monthly meeting when they turn in
their name tag. Attendance will also be tracked on other
qualifying training events.
Attendees are responsible for keeping track of PHP certifi-
cates and will not be replaced. Attendees are also responsi-
ble for tracking progress towards completion of their PHP
designation. A tracking folder is available for download and at
meetings. Once all courses have been completed, submit
your PHP certificates to the PHP committee for verification of
Please visit the MAREI website or review your Membership
Package for more information about PHP.
In addition, courses completed at MAREI can be combined
with PHP certified courses offered by other National REIA-
associated organizations and conferences. It is possible that
seminars and training events offered by other groups may
qualify for PHP credit; however, all outside training events
must meet the following requirements:
1. They must be taught live
2. The must be pre-approved by the MAREI PHP Commit-
3. They must provide a Certificate of Attendance acceptable
to the MAREI PHP committee.
We are also working on a few online resources through Na-
10 RE investment News 2013
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
Websites for investors, landlords, and
other services. FREE trial.
Email and Social Media Marketing, Free
Trial and Discounts for paying in ad-
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
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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.
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.
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.
Free issues of both magazines
available at the monthly
meetings of MAREI.
News & Information
2013 RE investment News 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 opportunities for other mem-
bers and site visitors to browse.
The Member Library is packed and ever
growing with pdf versions 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 materials, DEARBORN is
America’s Premier Real Estate Publish-
er. Members receive up to 40% off.
Special member discounts for members at
Avis, Budget, and
The Local Market Monitor tracks real
estate sales and economic trends nation
wide. Offering 25% Discount for Mem-
MAREI’s Political Advocacy Group ac-
tively monitors national legislation and
rule-making that impacts the real estate
industry and harnessing the strength of
MAREI members at the grassroots level.
MAREI members also receive timely
Calls to Action
when there is a
time for our mem-
bers to take action
on an important
Members also have
access to the latest in Market Data.
Look under Resources
& Members Only
12 RE investment News 201312 RE investment News 2013
2013 RE investment News 13
Don’t Toss another Seller Lead
for Lack of Buyers!
Let Us Review Your Lead . . .
Assign to us or partner with us.
Rehab & Retail
Turn Key Rental
Call Don or Scott
Houses & Notes
14 RE investment News 2013
Renter Insurance for Your Tenants
2013 RE investment News 17
Check out our Website
Contact us by Phone
Join The Conversation
By far the best bang for your buck when targeting the Real Estate Professional for
your product or service in the Kansas City Metro would be a Business Membership
with Mid-America Association of Real Estate Investors.
The business membership includes all the access to our website and all the dis-
counts that our Standard Investor Membership. However, unlike the Investor
Membership that is for the person, the Business Membership follows the Business.
So as a Business you receive two guest passes to every monthly meeting (20+
meetings a year) that can be used by the same two people or interchanged among
several people each month.
Advertise in our Newsletter
Also included in a Business Membership is an advertisement in our monthly news-
letter, the Investment News. This is published once a month and posted on our
website, our social media pages, several online file sharing sites and emailed out
to our 5000+ database. We highly recommend submitting educational articles for
the newsletter for maximum exposure.
Advertise on our Website
Our website has a Service Provider Section that provides you with a home on our
website where you can create a full page advertisement of your choosing and link
it to your website. Some examples of ad pages might include: a photograph, two
or three short paragraphs, an embedded video, contact information and a sign up
page for your product or service. We can make it as elaborate or as simple as you
would like. Also submit educational articles and videos for our blog.
Host a Vendor Table
While you can do all the advertising in the world in our Newsletter and on our
Website, meeting members face to face at our monthly meetings allows you to get
face to face with the members, build rapport and explain your product or service in
person. To help you facilitate the face to face interaction, we have Vendor Tables
available for a fee from 6:00 to 7:00 before each meeting. These can be reserved
for $25 for one night or $50 for 3 different nights. A Business Membership in-
cludes 3 free annually. Available on a first-come first-served basis.
350 Current Paid Members
North Meeting Attendance:
South Meeting Attendance:
180 Website Page Views a
Most Views from US, Canada
and Philippines - total 105
Email Database 5000+
Facebook Page: 2446 Likes
Facebook Group: 1131
LinkedIn Group: 721 Mem-
Ph oto Caption
18 RE investment News 2013
There’s not a better investment in
yourself that you could make!
At our monthly meetings we host guest speakers, panels and
roundtable discussions with industry experts providing insightful and
current information for attendees. MAREI meetings are an essential
tool for building a comprehensive team for real estate professionals.
MAREI works to keep its members up-to-date with the latest infor-
mation on the real estate industry. MAREI has built relationships with
members and the community at large who provide our members with
information they need to be successful in today’s world.
We are the place to go for the information you need from the novice to
the experienced Real Estate Investor. Monthly meetings are the best
place to connect and build relationships with like-minded people and
learn a thing or two along the way.
MEETINGS HELD AT:
(1st Thursday of the Month)
North Kansas City Community Center
1999 Iron Street
North Kansas City, MO
(2nd Tuesday of the Month)
Career Education Systems/ In Mall
8600 Ward Parkway, Ste 2080
Kansas City, MO
Upcoming D ates
November 7th Meeting: Northland Meeting - Round Table Networking– Use this opportunity to get
your name out among fellow MAREI members and get any questions answered you have before 2014!
November 12th Meeting: Southland Meeting - Three Speakers, Three Topics, One Amazing Evening.
With this fast paced meeting style members and guests will get more information that ever in these short
12 minutes presentations followed by Q&A. Topics covered will be: Subject 2 Housing, Multi-Family In-
vesting, and Rehabbing.
For first time guest to visit meeting.
More Education & Networking Opportunities
2013 RE investment News 19
Investment News Page 5
LET US HELP
KEEP PROPERTIES MARKETABLE
Keep Costs Under Control & Meet Tight Deadlines
Dedicated to your Success, With Solutions for Every Surface & All the Essentials
EXCLUSIVE MEMBER DISCOUNT
MAREI as a member of National REIA is able to bring our
members the exclusive Sherwin William Discount Card that
offers unbeatable savings on paint, applicators, floorcovering,
paint sundries, wall covering, spray equipment, and even window
Members look for your discount card in your members Benefit
Package or download from the Member’s Discount Section of the
MAREI Member Library.
National Account Services
Our strategic account teams can simplify
processes and maximize efficiencies with
centralized account management.
LEED® & VOC Coatings
Download the latest guide on our prod-
ucts that meet LEED® and low VOC
Find out about our color design services
for properties and read about the latest
Flooring Products & Installa-
Wide variety of name brands, 24-hour
turnaround and reliable installation.
Sherwin-Williams is your one-stop
source for commercial wall covering.
Over 5,000 residential and commercial
wallpaper collections available.
Commercial Floor Coverings
From carpeting to sheet vinyl, select the
right floorcovering specific to your
needs. Fully stocked national network,
fast turnaround and reliable service.
Enhance curb appeal and make selection
easier with pre-selected exterior color
Finishing Touch™ Builder Support
Comprehensive Program for your Home
Buyers: Welcome Kits, Discount Cards,
and Model Home Programs.
ASK SHERWIN WILLIAMS
Find out more about all these products and ser-
vices offered by Sherwin Williams plus their
Chip It Online Color Matcher, ColorSnap Studio
for iPad and their Paint Pro Alerts by Text at
20 RE investment News 2013
Increase Your Profitability
Join Mid-America Association of Real Estate Investors
Members receive a complimentary e-subscription to RE Investment News.
Become a Part of a Local, State and National
Network that Supports YOUR Industry!
MAREI MEMBERSHIP AUTOMATICALLY GIVES
YOU NATIONAL REIA MEMBERSHIP
MAREI is the local Chapter of National Real Estate Inves-
tors Association (National REIA), a federation of local asso-
ciations through out the United States representing 40,000
members across the U.S.
LEGISLATIVE MONITORING & ADVOCACY
MAREI monitors and promotes the enactment and enforce-
ment of local, state and federal laws and regulations benefi-
cial to the real estate industry. Support and create local and
national advocacy initiatives and grass roots mobilization.
EDUCATIONAL SEMINAR AND COURSES
MAREI offers all National REIA Programs locally.
Professional Housing Provider Designation
National REIA University
MAREI also offers local training events
2 Monthly Meetings a Month
Weekend Workshops and Full Day Seminars
Partnering with National Education Events locally and
across the country.
MAREI maintains a website that includes our event calendar,
service provider list, government affairs updates, articles of
interest and member properties for sale. All members are
able to interact through our website with member forums.
MAREI SOCIAL MEDIA
MAREI maintains active social media spaces on Facebook,
LinkedIn and Google+ for the benefit of members to interact
with each other and the public at large. Build your circle of
influence by interacting on our social media pages.
NETWORKING & BUSINESS BUILDING
MAREI holds a variety of events that enable members to
interact with other industry professionals, develop contact
and gain knowledge that helps them grow their business.
MAREI’s calendar also includes a variety of events held by
members and outside groups that are open to the general
NATIONAL REIA BENEFITS INCLUDE
National Cruise: Network and learn about new tech-
niques on the National REIA annual cruise.
Industry Resources: Brining member benefits to the na-
tional buying power of our local associations.
“I went to the MAREI meeting and was very im-
pressed with the quality of people I met, as well
as the content that was presented. Thank you
for putting that on, and I look forward to next
Joe McDonald, Real Estate Investor
“The main reason for joining was to meet with
other Real Estate Investors in the Kansas City
area. Not only have we done that but we have
also received access to services from other MA-
REI members, among them rehab insurance
and a general contractor.”
Tami and Kerry Hardinger, RE Investors
“I can’t afford to let my membership expire! It
pays for itself. I think you have really done a
good thing creating MAREI. It is a
very important tool.”
Scott Shore, Real Estate Investor / Contractor