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  • 1. MAREI wins Awards of Excellence at National REIA Mid Year for 2nd Year in a Row! MID-AMERICA ASSOCIATION OF REAL ESTATE INVESTORS Investment News NETWORKING : EDUCATION : COMMUNITY : GOVERNMENT September 2012 10 e Pag This Month at MAREI: FORECLOSURE How it Works & When you Need It. Tuesday September 11th, 2012
  • 2. ten ts c on Page 3 Page 10 Page 18 Business Members Benefits at a Glance Calendar of Events Page 26 Build your team with our Schedule Now Help Wanted Service Providers & In- Page 12 Volunteer at MARE dustry Partners Bill Twyford Page 20 Building Instant Rapport Local Market Condi- Page 27 Page 6 tions from Local Market Investing Using NLP How I Did the Deal Page 14 Monitor with Bill and Dwan Welcome Twyford Page 8 New & Returning Members Page 22 September Speaker For Sale Page 28 Bud Whisler: Foreclo- Page 16 Member Properties September Meeting sures Title Exceptions From Accurate Title Page 24 Page10 Show me the LIST! Foreclosures Building Your Buyer’s ist Judicial vs Nonjudicial 2011 2012Page 2 MAREInet.com
  • 3. BUSINESS MEMBERS MAREI Business Members are here to serve you in your Real Estate Business. They specialize in Real Estate Professionals and have joined our association as a Business. You can find out more about each of our Business Members at www.MAREInet.com/Services . Don’t see a service you need? Ask on the Forum! Foundations Insurance Cornerstone Foundation Your Company Here Joe Williams www.APIAprotects.com $499 annual Lisa Goodner 913-220-5253 CornerstoneFoundationRe- Or $135 a Quarter 1-877-752-2742 lgoodner@apiaprotects.com pair@yahoo.com Insurance Investors www.NREInsurance.com www.kcmoHomeBuyer.com Jim Jrolf The Tuckers 913-915-3232 816-200-2198 1-888-741-8454 kcmoHomeBuyer.com jj@nreinsurance.com Property Management Property Management Real Estate Brokerage www.JamiesonHomeTeam.com Kevin Jamieson www.MyPremierleasing.com www.RealtyResourceKC.com 816-503-4671 Jeff Wood 816-523-4400 kevin- 816-841-9500 RealtyResourceKC@gmail.com jwoods@mypremierleasing.comjamieson@reeceandnichols.com Staging Suppliers: Building Suppliers: Building www.ShowHomesKC.com www.CabinetGiant.com www.HomeDepot.com Michelle Davis Josh Burns Roger_L_Holyfield@HomeDepot.com 913-449-3593 1-877-484-4268 mdavis@showhomes.com info@CabinetGiant.com George_R_Neal@HomeDepot.com Title Company Title Company Suppliers: Building www.AccurateTitleCo.com www.Coffeltlandtitle.com www.Sherwin-Williams.com Jackie White / Mary Peterson Bud Whisler Mike Steiner 913-338-0100 816-581-2299 swrep4735@Sherwin.com jwhite@accuratetitleco.com bwhisler@coffeltlandtitle.comInvestment News Page 3
  • 4. read anytime Contact Information PO Box 8685, Prairie Village KS, 66208 Phone: 913-815-0111 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 Read the Investment News MAREI does not exist to render and does not give legal, tax, economic or investment advice and anywhere, anytime, on your 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 iPad, Mac and PC: his/her own counsel, accountant and other advisors as to legal, tax, economic, investment and related matters concerning real estate and other investments. MAREInet.com/Newsletter Content Disclaimer www.calameo.com 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. Search for “MAREI” Advertise in the Investment News To subscribe Rate Schedule Size Non-Member Member Business Associate Look for us Online Full Page $175 $140 $115 Search for 1/2 Page $145 $105 $85“Kansas City Real Estate Investors” 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.Page 4 MAREInet.com
  • 5. MAREI STAFF & Volunteers Executive Director Advisory Board / Membership Desk Kim Tucker Scott Tucker kim@MAREInet.com sTucker319@gmail.com Investor : Realtor Realtor Advisory Board Advisory Board / Membership Desk Donald Tucker Dan Goodwin DonTuckerRE@gmail.com DanGoodwin@kw.com Investor Realtor : Short Sales Focus Group Leader: Blue Springs / Lees Suumit Advisory Board / Membership Desk Debra Felderhoff Shelda Goodwin superiorrental@gmail.com SheldaGoodwin@kw.com Landlord : Investor Realtor : Short Sales Focus Group Leader: Weekly Wednesdays Focus Group: Eddie Speed Mentoring Students Michelle Winberry L. Scott Ficinus mlwinberry@gmail.com Scott@Ficinus.com Investor : Realtor Realtor Focus Group Leader: Weekly Wednesdays Advisory Board / Membership Desk Brian Winberry John Welchert JWelchert@platinumrealtykc.com Investor : Realtor : Investor : Landlord Focus Group Leader: IRA Investing Focus Group Leader: KC Note Buyers Coming Soon . . . Leader Located Coming Soon Focus Group Leaders: Transaction Engineers Focus Group Leader: Commercial Leader Wanted Leader Wanted Focus Group Leader: Women in Real Estate Focus Group Leader: Advanced Investors Leader Wanted Leader WantedInvestment News Page 5
  • 6. Netw orking f or ow I di d the H Real Estate Dea ls D EA L! More often that not with every deal I am looking MeetUp.com. This is an online networking web- for four different things: (1) Something to purchase, site that is a social networking website designed (2) a funding partner to pay for the deal (3) a buyer to facilitate live meetings. Meetup is designed to for the deal or (4) some sort of service provider. help you make live connections with people with We have been in business for over 12 years now similar interests and there are meetups for just and one of the key activities we still participate in is about every interest imaginable. networking to meet new people so we can do more Anyway, Dave, the writer of the newsletter said deals. “we were deciding on new means of networking At the recent Realty411 event here in Kansas City we turned back to Meetup . . . I noticed that join- that I attended as vendor promoting MAREI, Don ing a Meetup, . . ., expanded your network by my husband attended as the Real Estate Investor usually at least 50 people that share a similar in- in the family. I can’t tell you how many times we terest.” have heard presentations about Self Directed IRA Then today I received a voice mail from a new investing or Insurance for real estate investors so investor who was wanting to find out where he attending for us to listen to the speakers was not a could get “the list” of wholesale buyers. My re- high priority, even though I got a few new ideas sponse was to find a place where real estate in- from each and everyone of the speakers. There vestors meet on a regular basis: like a MAREI or were few people who came for a few minutes and KCIG meeting or a special event like the Realty left. When I asked them why later, they said that 411 event last week and to network his way into a they had already seen speakers on all these topics quality list of not only wholesale buyers, but other and didn’t see any point in staying. I noted that the wholesale sellers, service providers that would be people who did stay for the entire day were the needed in all of his deals and potential funding highly experienced investors who could have taken partners just in case he would rather buy the deal the place of most of the presenters for the day. So instead of wholesale it. why would the investors who have been in this business for a year or less find the event a total So this month, how did I do the deal? I did it by waste of time and the experienced people who knowing someone. So I will see you at the MA- have done countless deals tell me the event was REI meeting, doing a deal or being a part of excellent. The difference is the people who do someone else’s deal. deals realize that they can always learn something Deal provided by Kim Tucker, local real estate new in this industry because it is always changing investor and MAREI Director. Kim and her hus- and that at large events there are a lot of new peo- band Don have been investing in Kansas City ple to meet. Adding people to your database is key since 2000. Find them online at kcmoHomeBuy- as they could be the next person to bring you a er.com or GBIFunding.com. deal, fund a deal or buy a deal or be the service provider. Just last week I was reading a weekly email news- Do you have a deal, we would love to hear about letter , “The Notebuyers Notebook” that was talk- it. Email it to us at info@MAREInet.com ing about how their company is utilizingPage 6 MAREInet.com
  • 7. Www.CoffeltLandTitle.com Member For title, escrow, 1031 & foreclosure. Benefit Publish investment property opportuni- ties on our marketing page.  Turn Key Rentals  Wholesale Properties  REO & Short Sale Listings  Multi Family & Offices Review the Membership Package on the Resource tab for instructions on how to log in and post your properties MAREInet.com/Properties Bud Whisler 816-380-3441For Investors By InvestorsIn this market, you want an agent on your side that has the knowledge, the ability, www.APIAProtects.com 1(877) 752-2742 the EXPERIENCE, Lisa Goodner and the resources to help you! Because APIA sells only Real Estate Owned (REO) and Forced Lender insurance coverage, weve become the industry leader in providing comprehensive, affordable coverage to inves- tors, financial institutions and mortgage compa- nies. Our company specializes in Real Estate Owned (REO) and Forced Lender insurance coverage for property investors, servicers, financial insti- tutions and mortgage companies. Standard in- surance companies also turn to us for our ser- Realty Resource vices. 8014 State Line Rd, #210 816-523-4400 www.RealtyResourceKC.comInvestment News Page 7
  • 8. Judicial vs Nonjudicial Foreclosure happens when a borrower falls be- states. hind on house payments and the lender uses The lender sends a notice of intent to begin state procedures to the house that is the underly- foreclosure. In many states, the lender sends ing collateral for the debt. Foreclosure works dif- a ten-day notice of intent to begin foreclosure ferently in different states. In some states, like proceedings. The notice informs that the pro- Kansas, the lender has to file a lawsuit to fore- ceedings can be avoided if the missed payments close (judicial foreclosure), while in others, like are made up, plus costs and interest. Missouri, it can foreclose without going to court (nonjudicial foreclosure). The lender files a lawsuit. If back payments are not caught up, the lender will then go to Judicial Foreclosure court and file a lawsuit. In a judicial foreclosure, the lender must go to The lender gives notice of the lawsuit. The court to get the foreclosure started. A judicial lender does this by delivering foreclosure typically takes several months or a summons and complaint to the borrower more, giving the borrower time to look for anoth- (called "serving " a summons and complaint in er place to live, and to save some money for the legalese). future. Another advantage for the borrower is that they can raise in court any legal defenses Chance to respond. The summons and com- they may have to the foreclosure (without having plaint gives the borrower a period of time within to file a lawsuit). which they must respond if they are going to contest the lawsuit (usually between 15 and 30 Heres how a typical judicial foreclosure might days). Whether or not a response is filed is up proceed. to the borrower. Either way, the lender will have Borrower gets behind in your mortgage pay- the burden of proving to the judge that the fore- ments. A mortgage holder can begin foreclosure closure is justified under the terms of the mort- procedures if just one payment is missed, but gage. usually will wait longer -- much longer in many  If no response, the chances are excellent Don’t miss this event! Monthly Meeting Details: Agenda Tuesday September 11 5:30 pm Pre Meeting / Setup 6:00 pm to 9:00 pm 6:00 pm Registration Career Education Systems 6:00 pm Vendor HallGuest Speaker: Ward Parkway Shopping 7:00 pm Speed Networking Business Member Center—8600 Ward Pkwy 7:15 pm Presentation Bud Whisler with Kansas City Missouri 8:30 pm Q & A / Networking Coffelt Land Title Top Floor 9:00 pm AdjournPage 8 MAREInet.com
  • 9. that the foreclosure will go mortgage is not reinstated, thethrough. The court will issue a Nonjudicial Foreclosure Pro- home will be sold at auction. Asdefault judgment that authorizes cess with judicial foreclosures, if nothe lender to sell the home. one meets the minimum bid, the State law sets out the specifics of property goes to the lender.If there is a response, the bor- the foreclosure procedure, in-rower has the opportunity to tell cluding how much notice is given, Right to redeem. A few statesa judge just why they think they how the property will be sold give you some time after thehave a legal right to keep the (typically at a public auction), foreclosure auction to redeem thehouse and that foreclosure is not and what rights (if any) the bor- property (to recover ownership ofwarranted. The better the de- rower has to reinstate the loan the property by paying off thefenses, the longer the process before the foreclosure date or successful bidder).will drag out in court. Even if the recover title to the property after Challenging a Nonjudicialborrower wins, however, it may its sold. Foreclosure in Courtbe a temporary victory if the Time may be short. Borrower’slender can fix whatever problem Because the borrower does not must pay attention when a fore-caused it to lose this time. have the opportunity to raise de- closure looms in a nonjudicialThe lender sends a notice of fenses to the foreclosure in a state because very little notice ofintent to sell. Once the judge nonjudicial foreclosure, the bor- the foreclosure sale will be given,issues a judgment, the lender rower will have to file a lawsuit. and once it happens, the borrow-typically will send a ten-day no- When this happens, the borrower er may be permanently out oftice of intent to sell the property. is asking the court to temporarily luck.At this point, in many states the stop the foreclosure so that theborrower can avoid the foreclo- Notice of sale. In most states, legal issues can be resolved insure sale if somehow they can the first notice of the proceeding court. In these lawsuits, the bor-"redeem" the mortgage (pay it will be the notice of sale. De- rower typically asks the court foroff in full, as well as the foreclo- pending on the state, this notice three things, in the following or-sure costs and attorneys fees). will be either served on to the der: borroewer, published in the localThe auction is held. If no one newspaper, posted in the court-  a temporary restraining orderbuys the home at the auction, (which lasts about ten days) house and on the property itself,ownership goes to the lender. Up or by some combination of the  a preliminary injunctionto this point, the entire process, above.from the first notice to the auc- (which, in foreclosure actions,tion, typically takes three and a Notice of default and notice of will last until the court decideshalf months -- more, if a re- sale. Some states provides the the case), andsponse to the summons and borrower with two notices -- acomplaint is filed.. formal written notice of default  a permanent injunction (usually about 30 days, but (which will be issued if theEviction If the borrower loses judge decides in your favor). sometimes more and sometimesownership of the home, most Next Steps less) and another formal noticestate laws dont require them to that thehouse will be sold at auc- To learn more about the ins andmove out right away. The lender tion (again, usually about amay just let the house sit, wait- outs of foreclosure, both judicial month, but it can be as little asing for the market to improve and nonjudicial, be sure to attend 15 days).and the borrower can remain in the September MAREI meetingthe home payment-free until Right to reinstate. Between the when Business Member Budthey get evicted. notice of default and notice of Whisler with Coffelt Land Title is sale, typically the borrower is al-Statutory Foreclosure going to explain further how the lowed to reinstate the mortgageIf a non-judicial foreclosure by paying off what is owed, plus foreclosure process works in Kan-state, the lender does not have fees and costs (which can be sas and Missouri and more im-to go to court in order to fore- very high). With a couple of ex- portantly discusses when we asclose on a home. This means ceptions, however, once the sale investors need to conduct fore-that the foreclosure can proceed occurs, your house is gone. closures.more quickly. The auction is held. If the Investment News Page 9
  • 10. MAREI’S MEMBER BENEFITS PROGRAM YOUR MEMBER BENEFITS AT-A-GLANCE USE THIS PAGE AS A GUIDE TO VALUE ADDED DISCOUNTS TOOLS AND SAVINGS CREATED JUST FOR YOU ON GOODS AND SERVICES YOU USE EVERY DAY.Landlord Services Suppliers Service ProviderScreening for tenants & workers with 20% discount for members. Discount card for all members providing Learn how to save money at Home De- a 10% discount on all services.. pot and register for a 2% Rebate for all purchases & rentals across the US. Electronic collection for bounced Plus 20% Discount on Paint in Kansas rent checks. No charge to you. City. News & Information FORMS & DOCSMember Library is packed with formsand docs, plus 15 % discount at EZLandlord Forms for premium forms. E-Update All members receive a discount card Our weekly email update with what’s to access our exclusive discounts up happening in real estate including to 40% off all paint, supplies, and flooring—nationwide. properties for sale, government af-Market your rentals on the nations top fairs and local market data.ranked rental site. Member discount is 20% off Regular Prices. Marketing Investment News The newsletter for Mid-America Associ-Office Solutions ation of Real Estate Investors: pub- lished monthly and distributed both in print at our meetings and digitally to our database of over 5000 people.Save on select FedEx Office copy and Websites for investors, landlords, andprint services up to 20% and on Fed- other services. FREE trial. Ex Shipping up to 22%. Magazine for the real estate investor.Receive discounts up to 65% on over With discount subscriptions for MAREI Email and Social Media Marketing, Free members. 12,000 products you use the most online and in store. Trial and Discounts for paying in ad- vance. Continued . . . .Page 10 MAREInet.com
  • 11. Other Discounts Member Service We have several services as part of our website to help you grow MAREI’s Government Affairs ac- your business. tively monitors national legisla- tion and rule-making that im- pacts the real estate industry and harnessing the strength of MAREI Nearly 70% of QuickBooks users say members at the grassroots level.that it makes their business more prof- itable. Get your Accounting on track. Buy at a 20% discount through Na- MAREI mem- tional REIA. bers also re- ceive timely Calls to Action REAL ESTATE BOOKS Calendar of Events to stay up to when there is a date with all of our activities. The nation’s largest provider of time for our real estate training materi- members to als, DEARBORN is America’s take action on Premier Real Estate Publish- an important vote. er. Members receive up to 40% off. Members also have access to the latest Browse the member properties to in Market Da- find your next deal. Take the ta. time to post your investment op- portunities for other members Special member discounts for and site visitors to browse. members at Avis, Budget, and Enterprise Rentals. VISIT ww.MAREInet.com The Member Library is packed Look under Resources - The Local Market Monitor tracks and ever growing with pdf ver- Discounts real estate sales and economic sions of entire books, EBooks, trends nation wide. Offering Articles, Forms, and Documents. 25% Discount for Members. Investment News Page 11
  • 12. Building Instant Rapport . . . Bill Twyford  Do not wear sunglasses. Homeowners Every investor has heard how important it can’t see your eyes and subconsciously is to build rapport with distressed home- you seem suspicious. owners. What we never hear about is how  Never wear a hat, like a baseball to do it. What is it about someone that cap. Again, homeowners can’t see your makes us instantly like or dislike eyes and are suspicious. them? We don’t really know what it is  Always have a clipboard in your hands about that person, we just know it’s some- so that both of your hands are visible. If thing. you tend to stand with your hands in Rapport is developed in the subcon- your pocket or behind you, the home- scious. We can’t quite pinpoint it, but owners will think you have a gun and are there is something about that person that going to rob or kill them and will not seems familiar and makes us feel comfort- hear what you are saying. able around them.  Never wear cologne or perfume. I know So … how do you establish rapport? Let’s this one seems strange, but let’s look at start with a few basic tips. When I am it from the homeowners point of looking for distressed homeowners, I like view. You’re a guy and you wear Eterni- to knock on doors. It is the fastest way to ty. You show up at the door and a wom- get deals. If I knock on twenty doors over an answers. Her husband used to wear a weekend, I will have several contracts Eternity. He ran off with another woman by Sunday afternoon. I’d rather spend a and she still hates him for it. You are day or two getting multiple deals instead wearing what the ex-husband used to of waiting for my phone to ring hoping for wear and subconsciously, you remind just one deal. her of him. She now dislikes you with- Here are some dos and don’ts when you out knowing why. The same goes for knock on doors or meet a homeowner in the girls, too. You don’t want to remind person: the homeowners of someone they now dislike.  Be aware of what color your clothing is. Green promotes trust, while red pro- motes dominance. I like warm colors like green, blue, pink, or brown. Stay away from reds and blacks.  Dress casual, but professional … no suits. Also, lose the jewelry. Homeown-Page 12 MAREInet.com
  • 13. Bill & Dwan Twyford will be teaching a 2 day work- shop November 3rd & 4th on Communicating for Better Profits based on their own Real Estate and Short Sale Business. See Ad on Page 26 or go online at www.MAREInet.com/NLP ers losing their home do not need to see think that fast talkers are slick and un- that you own a Rolex. trustworthy. Is it true? No, it is a sub- Be aware of what you are driving. If you conscious thought that most people are drive a Rolls Royce, you may want to not aware of. When you follow the consider getting a middle-of-the-road car homeowners’ rate of speech, you seem for meeting homeowners. Yes, home- familiar to them and, again, they like owners need to see that you are success- you without knowing why. ful to feel confident that you can help  Ask them to share a little about their them. No, they do not need to see that current situation and listen with respect you have become a millionaire from dis- and empathy. Once you feel that they tressed properties. You never want them have properly vented, begin to ask de- to wonder if you have taken advantage of tails about their situation. Homeowners others and that is why you have so much want to tell you what happened because stuff. People are leery to begin with, they don’t want you to think that they don’t feed in to it. are losers. No one grows up with the Be certain you are speaking to the right goal of being in foreclosure. Something person. Instead of blurting out why you in their lives changed and they want to are there, ask if this is Mrs. Or Mr. so and be certain you know what it is. so first. Once you are sure, continue  Make an appointment to view the prop- with your conversation. erty then call back to confirm the ap- Never use the “f” word … foreclo- pointment. During the second phone sure. State that you were doing some call, ask more questions. Be certain research and see that they have a that everyone on the deed is home and “pending problem with their proper- willing to put a deal together. ty” and that you would like to help  When on the phone, listen for the objec- them. This puts the blame on the prop- tions you are going to get when you erty, not the person. meet in person. For example, “we don’tLet’s look at establishing rapport over the have to sign a deed, do we?” If they phone. ask questions on the phone, be ready to handle them in person. Speak at the same rate of speech as the homeowners. For example, if the person So, you see folks, it’s not that difficult to who answers the phone speaks slowly, do establish rapport. Take the time to be ap- the same. If they speak fast, do the proachable, honest, and trustworthy and same. People who speak fast think that business will follow. Better yet … just be people who speak slowly are stu- that way naturally and you will reap what pid. Likewise, people who speak slowly you sow. Investment News Page 13
  • 14. W WELCOME NEW MEMBERS To the premier trade association representing Kansas City Area Real Estate professionals MAREI continues its growth with a total of 390 members to-date. JOIN NOW (MAREInet.com/join) New Members Renewing ◎ Nick & Lorena Collier: Oak Grove, MO ◎ Greg Billeisen: Kansas City, MO (Since 2011) ◎ Marilyn Dugan: Overland Park, KS ◎ Carol Cutler: Kansas City, MO (Since 2011) ◎ Pat Edins: Liberty, MO ◎ Karl Dunivent: Liberty, MO (Since 2011) ◎ Stacey Holscher: Shawnee, KS ◎ Kerry Eikenbary: Independence, MO (Since 2010) ◎ Debbie Olivarez: Independence, MO ◎ Jeannie Estavez: Lees Summit, MO (Since 2011) ◎ Bruce Roberts: Prairie Village, KS ◎ Jeffrey Forster: Independence, MO (Since 2011) ◎ Tom Scanlon: Overland Park, KS ◎ Beatrice Gicharu: Kansas City, KS (Since 2010) ◎ Kelley Vince: Kansas City, MO ◎ Kenneth Mabrie: Raytown, MO (Since 2006) ◎ Joseph Schoonover: Liberty, MO (Since 2011) ◎ Ray Strickland: Overland Park, KS (Since 2006) ◎ Jamieson Home Team—Business Member ◎ Premier Leasing—Business MemberPage 16 MAREInet.com
  • 15. Invest In Kansas City with MAREI! Kansas City’s Resource for Successful Real Estate Businesses!  Network Online & Offline  Property Marketing  Vendor Discounts  Education & Support  Active in Government Affairs JOIN NOW! Whether you are local or from out of state, just getting started or experienced professional . . . . . MA- REI will assist you in reaching your goals. Call or go Online! Mid-America Association of Real Estate Investors www.MAREInet.com : 913-815-0111Investment News Page 15
  • 16. sale that day and had moved out and needed his pro- ceeds to purchase another property. The adjacent The owner of a property called to inquire about his cov- owners could relinquish their rights, however one said erage for a "right of first refusal" built into the Homes they would not sign as they had never had to do that Association Declarations. before. So now the current owner had to wait 15 days One of the items almost all title insurance policies EX- to sell. He was in jeopardy of losing the property he CEPT are the terms and conditions of the Restrictions had contracted to purchase and he and his family and Protective Covenants and/or Homes Association were living in a motel.All of this could have been Declarations. If you dont know what they are, ask for a avoided had he read and understood either commit- copy and read it. ment: the one when he bought it or the one he just In a few of the Home Association Restrictions or Cove- received a few weeks ago. nants, most of which were created in the 60s and 70s, He was pretty angry that he didnt have coverage for there is a right of first refusal for the adjoining land own- the Homes Association restriction and that we did- ers to purchase the property if you sell. These re- nt advise him about this clause out of 60 in the decla- strictions require that before you sell, you have to offer rations of the subdivision. We explained that he the property at the same price and terms to your neigh- should have read them or hired an attorney to advise bors. Depending upon the subdivision, it could be the him. We cant practice law as a title insurance agent neighbors whose lots adjoin yours or any one of many or escrow company and cant advise anyone. We are configurations. Some of these restrictions were an at- a neutral third-party who follows instructions given us tempt to circumvent discrimination laws. Other typical and federal and state laws. restrictions are prohibition of additional buildings, fenc- When looking at a Title Insurance Commitment be es and even sometimes basketball goals to just name a sure to read and understand SCHEDULE B, SEC- few. TION TWO, EXCEPTIONS. These are the things that Of course, the owner hadnt read it. Didnt do his due are NOT covered. This is true for a Lenders Policy, diligence when he bought it nor did he read them any- also. Typically, among other items, easements, time since he owned it. Nor did he read the current title homes associations covenants and/or restrictions, commitment that was given to him upon the signing of right of ways and sometimes items on recorded plats his existing contract to sell the property, which required and surveys are excepted, although there can be oth- him to notify the property owners to the left and right of er items as well. You need to do your due diligence on his property that they had 15 days to meet the offer or all these items to make sure you can live with them. If their right expired. He was supposed to close on the you dont understand them, hire an attorney to advise you so that you can make an informed decision and are aware of how these items might affect your own- ership or loan. Then it will not be a surprise that the EXCEPTIONS are items that are not covered. Article provided by Accurate Title Company, LLC is a full-service title insurance agency that is a new breed of title company with the expertise and ability to han- dle the most complex transactions along with the skill and responsiveness of a boutique firm. Find online at www.AccurateTitleCo.com or call 913-338-0100.Page 18 MAREInet.com
  • 17. HOUSES WANTED  Built After 1950 Minimum 3 Bed, 1.5 Bath On Demand Training Eastern Jackson County 30 Minute Segments MO or Johnson County KS Top Investor Trainers Retail Value $100k-$200k From the Comfort of Your own Internet Connection No Rental $39.00 Training CoursesLocal Cash Buyer Looking for 2 to 4 Houses a REO & Lease Optionmonth to purchase, rehab and sell. Money Part- Creative Financingners want their money placed quickly so they can Automated Investmentsturn their money fast and make a profit. Can’t do Auctions & Foreclosuresthat with out houses! Bring us a deal! Short Sales Wholesaling 101Email: kcmoHomeBuyer@gmail.comSubmit Online: kcmoHomeBuyer.com www.MAREIU.com accurate Accurate Closings: Smooth, Timely, Professional. Property Insurance for Title Services Provided for: Rental, Vacant & Construction  FSBO, Wholesale, & REO Transactions  New Construction Closings Residential & Commercial  Commercial Purchases and Refinance Pay-As-You-Go  All Types of Loan Closings  1031 Exchanges  FHA, VA, USDA, Conventional Loans, and Hard Money Loan Closings Jim Jrolf  Refinance & Reverse Mortgages Toll Free: 888-741-8454  Doc Prep, Prelim HUDS, Curing Issues  Short Sale Closing & Assistance Direct: 913-951-3232  100 Years of Combined Service! NREInsurnace.com www.AccurateTitleCo.com MAREInet.com/NREIG 913-338-0100 phoneInvestment News Page 19
  • 18. 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. Find it online at http://www.MAREInet.com/Calendar Sat Sept 1 , 2012: 4 pm SubGroup: Sat Sept 15, 2012: 4 pm SubGroup: Blue Springs / Independence Investors Blue Springs / Independence Investors Sun Sept 2, 2012: 9 am Sub-Group: Where: 18800 E Us Highway 40, Indep. Lees Summit Real Estate Investors Sun Sept 16, 2012: 9 am Sub-Group: Wed Sept 5, 2012: 9 am Weekly Lees Summit Real Estate Investors Wednesdays - Sub Group Meeting Mon Sept 17, 2012: 7 pm Omaha Sat Sept 8, 2012: 4 pm SubGroup: REIA Group—Omaha NE Blue Springs / Independence Investors Wed Sept 19, 2012: 9 am Weekly Sun Sept 9, 2012: 9 am Sub-Group: Wednesdays - Sub Group Meeting Lees Summit Real Estate Investors Thurs Sept 20, 2012: 7 pm am KCIG Mon Sept 10, 2012: 5 pm Deadline to Meeting—Roeland Park, KS reserve Vendor Table for MAREI meeting Thurs Sept 20, 2012: 7 pm Shawnee Tues Sept 11, 2012: 6 pm Sub-Group: County Landlords—Topeka, KS Lees Summit Real Estate Investors Sat Sept 22, 2012: 4 pm SubGroup: Wed Sept 12, 2012: 9 am Weekly Blue Springs / Independence Investors Wednesdays - Sub Group Meeting Sun Sept 23, 2012: 9 am Sub-Group: Mon Sept 10, 2012: 5 pm Deadline to Lees Summit Real Estate Investors reserve Vendor Table for MAREI meeting Wed Sept 26, 2012: 9 am Weekly Tues Sept 11, 2012: 6 pm Sub-Group: Wednesdays - Sub Group Meeting Lees Summit Real Estate Investors See more online at Wed Sept 12, 2012: 9 am Weekly www.MAREInet.com/Calendar Wednesdays - Sub Group MeetingPage 18 MAREInet.com
  • 19. Property Management Do the math. Your vacancy is costing you every day. Section 8 Housing Fill your vacancy faster and save money with Rentals.com! KC Metro Wide Discounts for MAREI Members: Jeff Woods Receive 20% off all Regular Broker Priced Advertising. Log into Member’s Area, click on Member www.MyPremierLeasing.com Discounts and look for MAREI’s 816-849500 Discount code! Cornerstone Foundation Repair Kansas Cities Real Estate Investor’s #1 Foundation Repair Contractor Steel Push to Bedrock Piers @ $850 ea Steel Wall Restraints Starting @ $180 ea Crack Injection @ $25 per foot Sump Pumps @ $800 each Property ManagementWe are proud to say that we have become realestate investors 1st call for major foundation Rental Servicesrepair issues. We offer 25 year and lifetime Kansas City Metrotransferable warranties for piering only. Joe Williams www.JamiesonHomeTeam.com ConerstoneFoundationRepair@yahoo.com 913-220-5253 Kevin Jamieson Ask about our Investor Pricing 816-503-4671Investment News Page 23
  • 20. Local Market Monitor on Kansas City This market has typical risks and returns for investors. The local economy is well diversified. Population growth has Job Growth been slightly above average. Income is average. The housing boom was mild, with a 14 percent rise in prices followed by a 9 percent drop. The recession was moderate, with jobs down 5 percent. Home Price Change Home Price Home prices in this market peaked in Q2 2007 at $176,495. Since their peak, prices have fallen by 12%. In the last 12 months, prices have gone down by 2 percent. The average home price in this market is currently $154,765. Equilibrium Home Price The Equilibrium Home Price in this market is currently $196,496. Home Price Forecast The Equilibrium Home Price shows where home prices would be Home values for Kansas City are forecast to decrease by 1 per- in the absence of market distortions. If actual home prices rise cent over the next 12 months. Nationally, prices are forecast to well above the Equilibrium Prices, they ALWAYS eventually come remain constant. back down. This risk is part of the Local Market Risk Premium. In the second and third year, prices are forecast to increase 1% The Equilibrium Price is often - but not always - the floor when and 5%, respectively. home prices fall. Local Market Risk Premium Local Capitalization Rate The Risk Premium for investing in this market is currently 1.6 per- The Local Capitalization Rate is used to price a rental cent. property, based on the annual rent stream minus the an- nual operating expenses. The Cap Rate incorporates both The Local Market Risk Premium measures the risk of lower future national and local economic risk. The local Investment income from a property - due either to lower rents or higher va- Cap Rate is used to estimate the value of an apartment cancies - and the risk of lower future property value due to a fall in home prices. building or single-family rental. Proposed property prices that produce a sharply lower cap rate should be scruti- Job Growth nized very carefully. In the past 12 months, jobs in this market have grown by 0.8 per- Population cent. This compares to a national increase of 1.4 percent. The population in this market grew less than 1% in 2011, Job growth is our most immediate guide to the demand for hous- while the US population grew less than 1%. ing. New jobs spur population in-migration while jobs regained in a recovery create new households. Investments are riskier when job Population growth - or the lack of it - has the strongest growth is falling, less risky when job growth is strong. effect on local demand for housing. Average populationPage 20 MAREInet.com
  • 21. growth in the US is 1 percent per year. Investments are investment risks. An above-average concentration of jobs inusually less risky in markets with above-average growth, construction, manufacturing, finance or tourism indicates athough more risky in small markets with very high popula- greater vulnerability to economic cycles. But strong growth intion growth. Population data are always several years old, these sectors means the current situation is favorable. Largebut current job growth is a fair substitute. health-care or government sectors often mean more stability and lower risk - but not always. The Unemployment RateMigration in July 2012 was 7.5% versus 8.2% last year.In 2011, net population migration was 0.0%. While migra- Employment by Industrytion tends to be small, it can have a large effect on demandfor real estateHome Prices and RentsHome prices and rents often move in cycles but not at thesame rate. Rents are more closely tied to local income,while home prices more easily respond to relatively smallchanges in supply and demand. Investments often are lessrisky in markets where home prices and rents increaseslowly and steadily. Home Price and Rent Change Financial Capitalization Rate The Financial Capitalization Rate shows the average return on investments with similar perceived risk as residential investment properties - such as BBB corpo- rate bonds - but without taking into consideration the special local risks measured by the Local Market Risk Premium. Financial Capitalization RateRentsWe forecast rents to increase 18 percent over the next three yearsin this market, to an average of $889 per month, partly due to higherinflation.Rents rarely decrease, but sharp job losses and falling home pricescan push them down. Rents are closely related to local income.Monthly rent on average is 2 percent of local per capita income, butthere is a lot of variation.Housing PermitsTotal housing permits in July 2012 were up 13 percent fromlast year. Single family permits were up 40 percent. Forecast AccuracyVacancy Rates The Local Market Monitor forecast relies to aThe Rental Vacancy Rate rose to 12.1 percent in Q2 2012. TheOwner Vacancy Rate rose to 2.4 percent. large extent on recent price changes and the mo- mentum of price changes and expected changesThe survey technique used by the Census to get local vacancy rates in local income and job growth.for rentals relies heavily on large apartment landlords. It cant easilycapture homes that are available for rent. Large changes from quar- Learn more about YOUR market online atter to quarter in some markets can be due to survey problems ratherthan actual vacancies.  http://localmarketmonitor.comEmployment  http://investors.localmarketmonitor.comJobs were up 0.3 percent in the past year, compared to the nationalgain of 1.4 percent..  MAREI members receive a 25% discounts on all report purchases.The concentration of jobs in various industries can reveal special Investment News Page 21
  • 22. 3343 Bellefontaine $34,500 3 Bed Newly Rehabbed Christoph Becker 1 Bath Kansas City Invest- Blue Print Properties Kansas City, MO Rental Basement info@BluePrintProp.com ment Property 20% 816-419-1165 Net ROI 1459 N Martway Dr $80,000 4 Bed This JOCO Flip would Makeba Hart 2 Bath be an easy sell. Make Virtue Investments, LLC Olathe, KS Rehab—to 1246 sq t Me an Offer. Makebashart2gmail.com Flip 816-665-0491 8409 E 103rd $24,500 3 Bed Raised Ranch, needs Beatirce Gicharu 2 Bath rehab finished. Esti- kcpropeties- Kansas City, MO Rehab 1354 Sq mated ARV $98,678 site@gmail.com Ft 816-974-8404 1518 Poplar Ave $13,500 3 Bed Wholesale Price only Christoph Becker 1.5 Ba $13,500. Most has Blue Print Properties Kansas City, MO Rehab 2 Story info@BluePrintProp.com already been done to 816-419-1165 Rental this Solid 2 Story. 6149 Harvard $109,900 4 Bed Live upstairs & rent Scott Tucker 3 Bath out the basement. Realty Resource Raytown, MO Potential 2 2 Living Scott@GBIFunding.com Excellent first home/ Family Qtrs 913-620-7934 rental opportunity. 2019 W 47th Tr $159,000 3 Bed One of a kind home Paul Panos 2 Bath blocks from the Building Freedom Westwood, KS Custom Full Bsmt 816-786-3854 Country Club Plaza, Home Facebook.com/ Westport & KU Med BuildingFreedomLLC 26 Off Market Bulk Package 26 Most tenant occu- Christoph Becker Properties pied, free and clear Blue Print Properties Kansas City Pkg info@BluePrintProp.com title, can break up. 816-419-1165 Sold as is.Page 22 MAREInet.com
  • 23. MAREI Member PropertiesMAREInet.com/Properties 237 N 15th St, $35,000 3 Bed Good rental or rehab Steve Gardner Kansas City, KS 1 Bath opportunity. ARV of Destination Properties Rental Basement 913–461–0402 $48-50k. Needs a Carport Rehab few repairs. 7315 Nieman Rd $95,000 3 Bed JOCO house in Shaw- Steve Gardner 1.5 Bath nee, new roof, founda- Destination Properties Shawnee, KS Rehab Basement tion and exterior paint. Ste- 2 Car Gar Must move it. Bring any ve.Gardner@homevestor offer. s.com 5809 W 70th St $89,000 3 Bed $30—$35k Rehab. Steve Gardner 1 Bath Great Overland Park Destination Properties Overland Park, KS Rehab Crawl 913–461–0402 ranch, good schools, Rental strong resale value, needs help 4407 Genessee St $99,000 3 Bed Double Lot. West- Steve Gardner 1 Bath port / Plaza. New Destination Properties Kansas City, MO Rehab 2 Car Ste- Roof, Repaired Foun- ve.Gardner@homevestor dation. s.com 2 Houses Under $10K 3 Bed Huge Discounts 2 Makeba Hart 2 Bath house for under 10k Virtue Investments, LLC Kansas City, MO Each—Need Makebashart2gmail.com Make me an offer!!! Rehab 816-665-0491 3829 Benton Blvd $27,500 3 Bed Excellent curb appeal Christoph Becker 1.5 Bath – This 3/1.5 home is Blue Print Properties Kansas City, MO Rehab Basement info@BluePrintProp.com situated on the dis- 816-419-1165 Rental tinctive “Benton Blvd” in KCMO Your Property Here MAREI members can post investment properties online which are pushed out through our Social Media Pages, Email, and Printed at least once here in our Monthly Newsletter for our entire database of buyers to see.Investment News Page 21
  • 24. Show me We had a call this past week at the MAREI office from someone looking to find a copy of “the LIST”. They were new real Craigslist is probably the next best place to work on. estate investors focusing on wholesale investing and Here you need to do a little bit of reverse ad marketing. had learned enough to contact the local real estate in- There are programs out there that will allow you to scan vestment association, but unfortunately their education Classified sites for key words and kick out an email to source failed to explain that there is not a list available, them with a generic email reply. The entire purpose to that they have to do a bit of work to create their own list. get them to respond. These software programs work to a point, but if you do this to an investor who advertises a So where do you start? Well starting at the local REIA is lot, who is really doing the business, they get these a good start, but you need to do a few things to find the types of responses, know they are computer generated movers and shakers that will actually buy your houses. and just delete them. 1. See if they do have a ready made list, doubtful, but So take this reverse ad marketing a step further. Using they might. Check their member forums, we have a any software, or the search engine for the classified site buyers list section on our forum that could potential- and search for key terms like for sale by owner, for rent ly grow into a magic list. by owner, we buy houses, we sell houses, seller financ- 2. Network at meetings, that means talking to people, ing and other key phrases. As you search through these collecting cards and following up via phone to drag ads, build a list of names, emails if available, websites if contact information and buying criteria out of people. available and most importantly - PHONE NUMBERS. 3. Going to all the live events that are available and Sift your report to remove duplicates and now, I want networking is a must. See deal article on page 6. you to take a deep breath and CALL these people. Ask them if they can take two minutes to answer a few ques- Next I would take a look at places online where Investor tions about what they buy and how you can bring them Buyers might be. There are a few places on all the ma- deals to them. jor sites like Facebook, LinkedIn, and Yahoo that have groups that other investors have created to market their Note, that as an investor who advertises on craigslist a properties. They have grown a HUGE buyer’s list by lot, I get tons of emails wanting me to tell them what I allowing everyone to post their investment properties. buy. These get put on the back burner for when I have They will let you post your properties on their groups, more time, which is NEVER. But if they call, I will usual- but they are not going to give you their list. Do not cre- ly talk to them and tell them what they want to know. ate your own page and invite their list to come like your Another option takes a bit of money to buy a list or to list, this will get you kicked out take some time and sift through county records to find The best way I can describe my next step is to stalk buy- cash buyers of properties in the area where you want to ers on social media. That means going through post work. You want all the contact info you can find and after post after post till you find one that sparked a lot of then you can send a postcard to all the cash buyers of- interest and buyers posting their contact information to fering them some reason to go to your website for more find out more about deals. Build a list from these con- information. The gurus will tell you to give away a free tacts and contact them to see if you could add them to report, I would suggest having information about a your buyers list. house for sale. You will have to test different postcards to see which ones work better. Take it a step further and note the postings that create a lot of response. Take the time to recreate similar posts These are just a few ideas to get you started. There is of your own in an attempt to generate your own flurry of no magic list, it just takes time and a bit of work and you replies. will soon have your own buyers list.Page 24 MAREInet.com
  • 25. More Information . . . More Confidence The best place on the entire planet to buy kitchen cabinets. We Have The Best Prices Everything Is In Stock More Profits Tenant Screening We Ship Fast Pre Employment Screening Free Design Help Contractor Screening Collection Services www.CabinetGiant.com Discounts for MAREI Members Josh Burns www.AAAScreening.com 1-877-484-4268 816-436-0085 Selling on Terms? How? We transform vacant houses - often Need Cash Now? seen by buyers as stale, lifeless, unappealing - into fully-furnished, inviting, valued Showhomes. Now in our third decade of ser- We specialize in the purchase of owner financed vice to Homeowners and their Realtors, weve become Americas premier home staging ser- notes and contracts from real estate investors vice coast-to-coast. across the nation. By selling on terms you create a Our professional home staging services can add note or contract which can be sold for cash. We thousands of dollars to your sale price -- and at the same time reduce the stress and expense of mar- can purchase all or part of your payments right at keting your property. the closing table to provide you with your profits in Sell Vacant Houses Faster cash now so you can move on to your next deal. and for more money! Request a Quote Today! ShowHomesKC.com Email us at info@GBIFunding.com Michelle Davis 913-449-3593Investment News Page 27
  • 26. MAREI is looking for a few volunteers to YouTube. If you like playing with to help in several areas. Volunteers YouTube and have a digital camera, receive recognition online and in the please apply. newsletter. Get your name in front of Moderators: Our Social Media pages all our members and guests: need moderators to not only contribute Blog Contributors: Are you an ex- relevant conversation, but to also keep pert on title, real estate law, property our social media pages clean, relevant management, home inspection, short and free of spam. If you are an expert sales, wholesale, technology, market- on one of the many social media and ing or any one of the many other real stay current on real estate topics, estate industries and would be able to please apply. contribute four articles or more a year, Trainers & Speakers: MAREI would please apply. All blog posts will in- like to revamp our Personal Housing clude your bio and links back to your Provider Courses this fall and winter designated website. and needs assistance assembling 1 to Official Photographer: MAREI needs 3 hour workshops to train members real estate photos for the website and and to potentially take to other REIA newsletter of real estate out in the groups. If you have ever thought you general public as well as shots taken at could do what the GURU’s do, please official events. If you have an eye for apply. a good shot and a digital camera, To apply, please send us your contact please apply. information, position you are interest- Official Videographer: MAREI needs ed in and why you think you would be someone to make one or two short 2-3 a good fit to info@MAREInet.com. videos at monthly meetings and postPage 26 MAREInet.com
  • 27. Learn How NLP is applied in all Areas ofYour Investing! MARK YOUR CALENDARBill Twyford aka The King of Communication and author of “How to SATURDAY & SUNDAYSell a House When It’s Worth Less Than the Mortgage,” will be hereLIVE and IN PERSON, Nov.3rd & 4th, 2012. He will teach us how to NOVEMBER 3RD & 4THget OUR DEALS ACCEPTED! Bill says that it all boils down to NLP! KANSAS CITYBill is an NLP specialist. He can teach you how to speak the languageof the banks, the homeowners, and the buyers…In other words:He can make you wealthy!You will learn:  What to say to the banks to get your short sale package to the top of the heap  What to say when the bank says no  How to get the bank to work with you even when your home- owners are in bankruptcy  How to get your homeowners to sign contracts on the first meeting  What paperwork to use to make every deal “air tight”  Learn the “little known” Bankruptcy Short Sale  How to negotiate when buying notes  How to automate your communication system  And much, much more!With everyone offering you the next, best, “make a million dollars whileyou sleep” program – people have forgotten that this is a people busi-ness and without the proper COMMUNICATION SKILLS you aredead in the water!Unless you are closing 75% or MORE of your short sales, you mustattend this TWO-DAY WORKSHOP. This is not a sell-a-thon, it is Bill Twyford teaching you for TWO SOLIDDAYS! Please bring a calculator, a good attitude, and come with an open mind. We guarantee that you willlearn more in these TWO DAYS than any other workshop you have ever attended! Register Today MAREInet.com/NLP
  • 28.  Tons of Networking  Speed Networking MAREI’s September Meeting  Industry Partner Expo  Best Speaker Lineup  Experienced Investors  And Much More! How Foreclosure Works in KS & MO Special Guest And When You Need to Foreclose Bud Whisler Coffelt Land Title, Inc. What Exactly is the Process of Completing a Foreclosure What is the Difference Between Judicial and Statutory ForeclosureLocation: What is a Redemption Period and How to AvoidCareer Education Systems Besides Foreclosing on a Mortgage,Ward Parkway Shopping Center when would Foreclosure be Needed.8600 Ward Parkway In today’s market, more and more investors are purchasing non-Kansas City, MO performing mortgages and doing work outs, offering homes for sale on lease to own and contract for deed. When we get moreTimes: creative in our investing, the need to understand the foreclosure process from the seller / lender side of the equation becomesTuesday September 11 much more important.6pm to 9pm Bud Whisler with Coffelt Land Title, Inc. is an expert on Title and Foreclosure process in and he will be telling us what we need to know at the September Meeting.Agenda for Tuesday September 11th Cost5:30 pm – Pre-Meeting & Set Up Investor Member—No Charge6:00pm - Focused Networking: Meet the Right People at the Right Business Member—No ChargeTime & bring business cards & flyers!6:00pm — Industry Partner Tradeshow (reserve vendor table) Internet Member—Guest Fee6:30pm — New Member Orientation Guest Fee7:00pm – Main Meeting Deal Makers “Haves & Wants” Exchange: Quick Pitch Session for $25 Per Person at the DoorYour Real Estate Deals! $15 Per Person on Web Industry Partner Introductions: Build Your Dream Team Go to7:15pm — Special Guest: Local Title Expert: BudWhisler presents: Foreclosures MAREInet.com/September8:30pm — Adjourn: Speaker ends and offers one on one Q & A, plus All Guest Fees Paid willunstructured networking Be credited toward membership– 9:00pm — Meeting Ends when you join at the Meeting.

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