Investor News - July 2010


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Newsletter for Mid-America Association of Real Estate Investors

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Investor News - July 2010

  1. 1. u MEMBER BENEFIT HOME DEPOT JUNE 2010 PAGE ............. 15 u CALL TO ACTION LEGISLATIVE ACTION COMMITTEE PAGE .......... 10 Investment u MONTHLY MEETING J UNE 13 PAGE ............. 8NEWSLETTER OFMID-AMERICA ASSOCIATION OFREAL ESTATE INVESTORS newsFor Real Estate Investors & Property OwnersGet InvolvedNew at this months meeting this is the time to our feature “Haves and First I would prepare a flyerWants” . Here’s how it or business card regardingworks. For all members the have or need and havewho have a real estate in- it on the “Deal Table”.vesting “want” like theyneed private funding, need Second prepare a 30 sec-a recommendation on a ond pitch, what you havecontractor, or help in some or need and how to contactway or a member who has a you.“Have” like a house for sale, Third at 7:00 get up inan extra screened tenant front of the room and givebuyer, or an over abun- us your of rehab supplies, MARKET WATCH What was the affect of the tax credit? Are prices going up or down? Are we on our way to recovery? Check out our Mar- ket Update on Page 18 for a brief over view of the local mar- ket and the nation as a whole as well as a few predictions. Tell us what you think, please commend on Linked In.
  2. 2. Member Profile N ACHMAN Attorney LAW David Nachman Attorney for Active Member of MAREI Entrepreneurs since 2004 Services for business & individuals.  Business organizations also  Mergers & acquisitions Don’t rely on drag  Strategic planning unreliableInvesting as a Private Lender you  Real estate investmentsfor acquisition and rehabs with information down if & financinginvestors who have a proven from others. the  Commercial  Entertainment lawtrack record, David has focused market  Employment lawmainly on residential single turns when you have too many  Restrictive covenantsfamily homes because it is the properties and too much debt.  Commercial litigationbest way to minimize risk. If a The investor needs several  Arbitration & mediationproblem should arise, these are business plans that anticipate  Not for profitthe easiest to sell or to develop changing markets, so that cash  Estate planningother exit strategies. can be raised and debt paid off  Durable powers of at- if necessary. torneyWhen asked about mistakes he  Probatesees new investors making, he The most important thing he  Creditors rights, fore-comments that some novice stressed for new investors closures, bankruptcyinvestors rely on information or starting out is that if you intend claimsstatements of others that are to hold property and rent it,  Buy-sell agreementsunreliable. It’s essential to nothing is more important that  Business divorcesknow your market and your thorough screening of your ten-  Confidential info & trade secretsproperty so that you know your ant.  Distribution agreementsproject is likely to be success- He left us with the concept that  Franchise agreementsful. Every deal has two major when contracting for the pur-  Construction lawparts: the buy and the sell. chase, the rehab, the lease,  Zoning and title issuesThe investor should have sev- and the sell, it’s essential thateral exit strategies developed in all terms be addressed in your MAREI Member Specialcase the first one does not written contracts. You want to FREE 30 Minutework. anticipate likely problems and Consultation in JulyWith experienced investors, the clearly define who is bearing the risk so there are no sur- www.NachmanLaw.comproblem seems to be over lev- T: 816.285.6029eraging. Using OPM (other prises if something changes. F: 816.756.1999people’s money) is a great wayto maximize profits, but it canPage 2
  3. 3. Contents MAREI News In This Issue Member Profile 2 New Website Staff 5 Coming MAREI 2.0 6 Inside Secrets 8We are still working out Day on the Hill 10the bugs, check it out, Get Involved 12 tell us about broken Membership Has it’s Privileges 14 links. Insurance, a Necessary Evil 16 Go to Market Update 18 Marketing Espionage 20 Calendar 22 Click on New Investment Opportunities 24 Website Vendor Night 2010 Tool Box 26 Features ‫ ׀‬June 2010 Insurance cov- Marketing Advertiser’s Directory ering why we Espionage from Jason Nachman Law 2 kcmoHome Buyer 21 need insurance Hanson ex- Market Report 9 T.O.T.L. Renovations 21 and what it plains why 16 20 does for us. we need Accurate Title 11 July meeting 23 business Rockstar Investor 11 25 Provided by cards and Tim Norris our how to de- MAREI Profiles 13 Absolute Auction 27 National Insur- sign them Home Depot 15 Get Licensed 28 ance Provider for the best results. Investment News Page 2
  4. 4. Organization MAREI Notes Contact Information Mailing Address PO Box 8685, Prairie Village KS, 66208 Phone: 816-523-4400 x 222 Fax: 816-523-4440 Our Mission Statement Mid-America Association of Real Estate Investors is dedicated to promoting ethical real estate investing and to protect and promote the best interest of our membership through educational and networking opportunities as well as community, legislative and public relations. Legal Disclaimer MAREI does not exist to renter 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 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 con- cerning real estate and other investments. Content Disclaimer The views and opinions expressed by authors of articles contributed to this newsletter do not necessar- ily reflect those of the association, the board of directors or the staff. Advertise in the Investment News Reach more than 1000 active real Rate Schedule estate investors monthly! 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 Call 407-328-7773 for more information. Email ad copy to Mail payment to MAREI, PO Box 8685, Prairie Vil- lage, KS 66205 or request an online payment for to use credit or debit card.Page 4
  5. 5. MAREI StaffKim Tucker 816-523-4400 Don Tucker 816-523-4400Director Don@MAREInet.comRobin Sage John Welchert Steve BurnsMeeting Ambassador Meeting Ambassador Audio 816-268-3849 cashflowtreasures@gmail.comDan Goodwin 913-642-5218 Shelda GoodwinMeeting Ambassador Meeting Investment News Page 4
  6. 6. Director Notes MAREI 2.0 Interactive By now we all know about the internet and have a goal of having a Legislative Action more than likely have heard the term “Web Committee and a Community Affairs Commit- 2.0”. “According to Wikipedia, the term “Web tee in place by the end of the year. 2.0” is commonly associated with web applica- Third, at the Meeting level, want to facilitate tions that facilitate interactive, information more interaction and networking. Starting sharing, interoperability, user-centered de- this month we are adding a “Haves and sign, and collaboration on the World Wide Wants” session at 7:00 and we would like to Web.” add an extra hour in the future from 5:00 to After attend the National REIA Convention in 6:00 for a 30 minute mini seminar taught by June and finding out what is going on all over members or business associates on a specific the nation in Real Estate Communities of all topic and a market review of a particular mar- kinds, it seems we need to have a MAREI 2.0. ket in the city. So what is a “MAREI 2.0”? Last, we want to see more interaction and deals being done through the web site. We Well I have to define is as a real estate inves- are currently updating the web site to make tor association that facilitates interactive our property classifieds more prominent and members, the sharing of information between to make the site easier to find online for out of members, members working together for the area buyers looking to buy in Kansas City. common good, with programs that are de- And we are adding a Blog feature to the page signed with the member in mind, and where and would like to solicit articles on real estate the members collaborate to improve the com- and the metro from the members for the web munity. site. That’s a long winded paragraph, but what is Please watch the new blog or email me for that going to mean to you the member. more info. First, at the leadership level, we want to get more of you involved with leading different types of groups. So if you have a few extra Kim Tucker hours a month to devote to the real estate in- Director vestment community, consider becoming a leader of a subgroup or a committee leader. MAREI Second, at the community level, we need to band together to combat all the bad press that real estate investors receive as the result of scammers and the economy. To that endPage 6
  7. 7. Get Involved Admission to Monthly Meeting . . . Free (For Members) Volunteering Monthly at the General meeting Acquiring enough MAREI Bucks to pay for Membership Volunteer in MAREI Office Real Live Working Real Estate Investor Office Sponsor a Sub Group Your own Private Coaching Group Teach a Class Be the Expert in Your Field Join a Committee Give Back For more information on becoming a volunteer,Investment News Page 6
  8. 8. July Guest Speaker Inside Secrets Why some succeed faster Did you . . . emails automatically from any web site out . . . ever wonder why some investors seem to there. always get the best deals, the best contractors,  Property Analyzer: Enter basic information even the best loans? Why some get deals done and have access to sales and rental compa- almost daily while others struggle to get a single rables to analyze your deal and look at what deal closed? if scenarios to make sure you get the best Leverage is a big part of every investors suc- deals. cess, but when it comes time to really taking  Property Alerts: from other investors in your investing to the next level, smart investors your area, across the country, and from REO know its as much about the tools in your tool sellers. Be the first to find out about houses belt as it is about what and who before they get listed or even prop- you know! erties that never hit the MLS Successful investors focus on Get Access to Jason’s  Network: It’s still about who their three core dollar producing Coveted ―Black Book‖ . you know and having an easy to tasks, which are finding money, .. use and understand networking finding deals, and executing the platform to talk to other investors is exit strategy. The rest needs to Inside information and a must. be outsourced or automated contacts to win in the  Feedback: Having the ability with a real estate assistant that real estate investing to vendors so others can see the NEVER calls in sick. good, the bad, and the ugly about So what are some must have all recommended contractors tools? Hey guys, I have spent two years looking at all  Property Marketing Engine: That submits the tools I leverage and my clients leverage to your properties to all the top property for sale be top real estate investors in their markets. web sites the realtors use plus investor data- These are the top tools we came up with that bases nationwide. you need to have in your tool box along with a  One-Click Craigslist Ads: Automatically good understanding of your local market and Create and Update your ads on Craigslist financing programs for you and for your buyers. with professional high end ads that includes Join me on at the MAREI meeting on Tuesday tons of photos in under 60 seconds. July 13th to find out more about my private  Buyer or Seller List Builder to collect Black Book and Financing in the Market today. I (Continued on page 9)Page 8
  9. 9. (Continued from page 8) Speaker Bio about $400,000,000. in The July 13th Monthly Meeting willam driving in from St. Louis where residential and one of the nation’s leading expertI work in a market much like the $100,000,000 in on Real Estate Investors Financ-one in Kansas City. I have invited commercial. ing.some of my top team players from On the InvestorKansas City to visit the MAREI With 15 years of lending experi- side of things, hemeeting as well so you can see ence, Jason Palliser has spoke for has had up to 34 properties at onewho I turn to when I do deals in the 4 national companies on Investing time, all cash flow positive!Kansas City Market. including Robert Kiyosaki and Donald Trump University and Busi- He is has came to us highly rec-I think Kim has changed a little bit ness Mastery (the nation’s largest ommended by his home townof the scheduling to bring you REIA Street in St Louis. He will be mortgage convention).some new an exciting ideas we joining us to talk about real estatelearned at the National REIA Con- Jason has trained over 5,000 stu- investing financing and tools tovention in Vegas in June. dents in the past 12 years on the make your business take less time loan officer side of things. HeSee you there . . . and run smoother. closes an average of 300 transac- Jason Palliser tions a year that shakes out toSneak Peak . . .Get Your FREE Copy of The Money Report NOW Do you have a hard time committing to real estate (and being able to quit your job) because you have an agonizing time raising money for your investment properties? Do you want your passive real estate income to surpass your job income — but you don’t know how to get started with your first few investments (and lack of cash is the main reason)? Would a step by step blueprint on how to raise money (and all the other nu- ances) enable you to finally buy that first investment property? Are you worried about a low credit score? Whether you have an credit score of 400 or 800, you can find cash for all your real estate deals — you just need to learn how to do it!Would you like to know how someone with a credit score of 400 and only $50 to invest could raisemore money faster than someone with an 800 credit score and $250,000 already lined up to invest?It’s outlined in the FREE investment property money report!Get your copy now click here (that’s why we do this digitally)Or type in: Investment News Page 8
  10. 10. Legislative Call to Action Day on the Hill National Real Estate Investors Association 3rd (i) is fully amortizing; Annual Day on the Hill was officially deemed a (ii) is with respect to a sale for which the seller success by President, Linda Muscarello, but our determines in good faith and documents that the fight is not over! Our efforts to communicate buyer has a reasonable ability to repay the loan; with legislative officials from across the country were targeted and we were able to conduct (iii) has a fixed rate or an adjustable rate that is nearly 30 meetings we had scheduled with con- adjustable after 5 or more years, subject to rea- fidence and veteran-like poise. sonable annual and lifetime limitations on inter- est rate increases; and During the meetings with legislators and many staffers, we discussed several pieces of legisla- (iv) meets any other criteria the Federal banking tion including the Senate Finance Reform legis- agencies may prescribe. lation S 3217—Restoring American Financial This says that if you want to sell more than one Stability Act of 2010, which is currently being property with seller financing every three years debated in the Senate Banking, Housing, and the law applies. That means you must undergo urban Affairs Committee, under the direction of the same licensing, ongoing testing, bonding, Senator Christopher Dodd (D-CT). This 1,400+ proof of net worth, and reporting required of page legislation is one that seeks to increase mortgage loan originators. regulatory oversight of many industries, includ- In order to propel the fight against this poten- ing the mortgage industry. While there is no tially harmful legislation National REIA would harmful language in the S 3217 to date, the ask that you contact your Congressman and worry is that the same language from Anti- Senators, NOW, to inform them of your opposi- Predatory lending legislation which has passed tion to the efforts to require private property the house will find its way into the text. owners to secure and maintain the same licens- HR-4173—Wall Street Reform and Consumer ing as mortgage loan originators who loan Protection Act is the current bill in which that text money every day for a profession. It is impor- can be found, in Title VII. The specific language tant to note the negative impact that these ef- that has investors across the country worried is forts, if passed, will have on the same consum- in Section 101(3)(e): ers that the Anit-Predatory Lending legislation is (e) does not include, with respect to a residential supposed to be protecting. mortgage loan, a person, estate, or trust that provides mortgage financing for the sale of 1 property in any 36-month period, provided that such loan-Page 10
  11. 11. To find your congressman:Visit put in your zip code inthe top left hand corner ofthe screen.To find your senators:Visit Watch the MAREI Blog for Updates . . . ACCURATE TITLE COMPANY ―When You Need Timely, PRIVATE LENDER Top-Quality Service . . . ― Locally Owned & Operated Private Money Lender  Owners and Loan Policies We are a Direct Lender, not a Broker  Endorsements  Ownership & Encumbrance Reports  Rehab Loans up to 100% of Costs  Foreclosure Reports  Up to 65% of the After Repaired Value  Ownership Information  Terms from 30 Days to 1 Year  Tax Information  Rates from 12 to 16% Interest Only  Buyer’s Closing Services  Seller’s Closing Services  Points from 6 to 10 in Lieu of Equity  Lender’s Closing Services  Appraisals Required  Recording Services  Funds Disbursement Services Draw Requests on Wed.  1031 Exchange Services Paid on Friday  Special Requests P: 913-338-0100 Jeff Basler F: 913-338-0107 913-221-9080 Investment News Page 10
  12. 12. Membership Give Back Get Involved One of the best ways to grow your real estate tional 30 minutes to the meeting. Then we business is to GET INVOLVED. From volun- would need experts to create the 30 minute teering at events, serving on committees, to just presentation and teach it. Again by evaluating giving back to the community your business will what you do in your chosen field and breaking it grow. When you get involved, you meet more down to teach to others give you more knowl- people, you learn new things, and you gain rec- edge and being an ―expert‖ gains you more rec- ognition in the community, all resulting in either ognition and business. more business or more profitable business or Do you know someone at MAREI who has a lot both. of knowledge to share who would be a good Here at MAREI we have a goal for the 2010 – trainer? Please email us their contact informa- 2011 year, to get more members involved and tion. more interaction at all levels. We would like to Legislative / Government Affairs Committee: share with you a few of our goals that are also We are under attack! Okay, you hear that often, opportunities for you to become involved. but it’s truer now than ever. Our governments at Quarterly Market Report: We would like to of- all levels need money and they will take the path fer a 30 minute state of the market in the Kan- of least resistance. This means that people or sas City Metro area once a quarter or divide up groups that are not represented, will be targeted the metro into 3 areas and offer one a month at for increased fees and taxes. So while we do the monthly meetings. Would need to add an not currently have funding to employee a full extra 30 minutes to the meeting. time lobbyist, we need to form a committee to at We need to locate 3 – 6 people who are experts least be a watch dog for local and state legisla- tion and report back to the membership as a or who could become the expert on the markets whole. Allowing us to be proactive rather than in Kansas City and be able to provide a detailed reactive. Get involved here as a member and report to the group. We are getting examples from other REIA’s across the country. The Vol- have a great impact on your business. unteers here would become much more knowl- Community Involvement: Will be designed to edgeable about the market as a whole and by involved the associate, it’s members and the being the ―expert‖ gain recognition and business broader real estate investing community in in the community. worthwhile community programs or project that Do you know someone who we be a good ex- delivers a valuable service to the community, pert on the Market? Please email us their con- creates a ―sense of community‖ within MAREI, tact information. provides value to our members that generate and promotes MAREI’s positive vision and mis- Educational Session: We would also like to sion. Get involved by being part of the commit- offer up a 30 minute educational session pro- tee that selects what we become involved in and vided by one of our expert investors or business give of your time or money to help support these associates on a specific topic of interest. Can worthwhile charities. We are currently support- be basic real estate concepts to advanced ex- change techniques. Will need to add an addi- (Continued on page 13)Page 12
  13. 13. Online Networkinging: Harvesters Food Bank, Habi-tat for Humanity, and Habitats Re-store.Subgroups: Group leaders do Update Your Profiles!!!not have to be experts in the topic,but have some general working Use to updateknowledge. More importantly they Your profile and ensure yourneed to be organized and able tosecure a speaker from time to Information is correct.time, locate and reserve space tomeet, communicate with our Mar-keting team to get the word out, MAREI is a networking organization and part of the MAREI 2.0 plan is thatand control the meetings. we interact. One of the best ways to ensure interaction is to make sureCould meet monthly, twice a (1) you know how to access member profiles (2) make sure that membersmonth, or quarterly. Meet at a lo- know WHO you are and HOW TO REACH YOU!cal eating establishment for FREE 1. Log into the Member Area of www. MAREInet.comspace. 2. Update your information by going to ―My Info‖Proposed Sub Groups  Be sure your contact info is correct Women in Real Estate Wholesale Investors  Be sure you include what you do Rehab Investors  Be sure your profile is turned on at the top Short Sale Investors Lease to Own / Subject To 3. After updating your info, check off the boxes on the right side to dis- Private Funding play the contact info in your ―Member Profile‖ in our online member Note Buyers directory Self Directed IRA Investing 4. Make sure to hit the update button at the bottom of the screen REO Buyers 5. Get fancy Apartment Investors 1031 Exchange Group  Add a Photo Landlords  Preview your Profile Other Topics Groups based on Location in  Edit Your Bio Metro our other cities Cash Flow Investors Advanced Investors Once your profile is updated, click on Profiles to find out more about Realtors who are Investors your fellow member! MAREI staff cannot provide any member’s contact info to another member if it is not on your profile. Investment News Page 12
  14. 14. Benefits Membership Has Privileges! Besides getting awesome deals on train-  Office Max: From printing & binding, ing programs on our webinars and at our to finishing & customizing - to reduc- seminars, are you taking advantage of ing time & money with discounts from everything MAREI has to offer you? As a 10% to 60%, Office Max ImPress of- Member of MAREI you are also a member fers solutions for the full range of your of the National Real Estate Investors As- needs. sociation (MAREI). These and many more  Save time and money benefits are available to you for FREE! while shortening the duration of va-  Home Depot: A biannual rebate of cancies between tenants with our mar- 2% of your net sales for your pur- keting and save time with our tools. chases at The Home Depot and Home Members receive 20% discount off Depot Tool Rental through an unparal- regular pricing. Number 1 in the leled Material Purchase Rebate Incen- search engines. tive Program. Many members across  Travel Discounts with avis, Budget, the country have cashed checks for and Enterprise. $1,000, $2,000 and $3,000.  Real Estate Books by the nation’s larg-  Sherwin-Williams: One of our most est provider of real estate training ma- popular and most used benefit, Sher- terials—Dearborn, Nolo, and Kaplan. win-Williams offers unbeatable pricing To find out complete details on all these to National REIA members. Enjoy member discounts log into the member deep discounts on paint, applicators, area and look at the Benefits Section in floor covering, paint sundries, wall the Library. We also mail a complete covering, spray equipment, and even booklet with all discounts and instructions window treatments! Your discount on how to access when you renew or join card is in your membership package. or upon request. To request email  FedEx: Receive significant inbound and ask for the and outbound discounts on small member benefits booklet. package shipments through FedEx, as well as copying and printing services through FedEx Office.Page 14
  15. 15. Volume Pricing How it WorksVolume Pricing at The Home Depot offers Pros the Lowest possi- Receiving Volume Pricing is a simple 3-ble price on large orders, with additional savings available on pur- step process:chases as low as $2,500*. 1. Compile and place an order at the Pro Desk for mer- chandise totaling $2,500 or moreVolume Pricing does not require bulk purchases of the same 2. Your order is entered into the Volume Priding Programitem. Items across all departments – building supplies, plumb- to determine the, electrical, hardware, landscaping and others – can be 3. Your Volume Pricing quote is returned, with the discountmixed together to reach the Volume Pricing minimum. automatically updated in each line item.The Benefits How You Qualify As a Pro, you automatically qualify for Volume Pricing fromThe Volume Pricing team is able to determine the maximum The Home Depot. There are no special requirements otherpossible discount for your specific order. There are no restric- than meeting the minimum dollar amount.tions regarding the type of merchandise that can be consid-ered for a discount. By buying in volume, Pros receive a lower How Long it Takes Most Volume Pricing Program orders are returnedprice, giving you the competitive edge when bidding on a job. immediately. Complex orders or specialty items can require additional time to process, with the averageFor additional time and cost savings, use Volume Pricing in time on orders that require extra research being onlyconjunction with our direct ship program and have large orders 1 hour and 15 minutes.delivered from our vendors direct to your job site. Roger Holyfield  (816) 510-9199  George Neal All MAREI members can register through our  special link to receive a 2% rebate on all pur- chases made at Home Depot. From a $5 item  for a week end project to a $10,000 rehab: kitchen, lights, appliances, Etc.Investment News Page 14
  16. 16. Tim Norris Insurance The Necessary Evil . . . .Or Is it? getting the lowest rate makes the most sense. Unfortunately, when you really need it, this As consumers, let alone real estate investors, planning, or lack thereof, has hurt more con- we tend to flinch whenever the insurance bill sumers than it has ever helped. arrives. Many times, for good reason: rates are higher, coverages seem to diminish, and Too many of us, when building our real estate for what? We have never even filed a claim! investing portfolios, consider our insurance However, if we stop thinking of our insurance program an afterthought. Those of us who do policies as just another drain on our cash- understand some of its value, may not fully flow, and more as a legitimate part of our comprehend its place in our business plan/ business plan, that premium notice may be a model. I consistently receive calls and emails little bit easier to open... from people who ask if I think an LLC, an S- Corporation, a Land Trust, or any other entity Most of us consider insurance as a created to buy/own real estate is the best op- “purchasing endeavor”. That is, we either buy tion over another for them. These bevy of it, or it is sold to us. Therein, in my opinion, inquiries bolster my theory that the right ad- is the foundational fault of the process. The vice is still not promulgated in our industries misconception is still prevalent: insurance is (insurance AND real estate investing) to a mysterious, difficult to understand, and, at sufficient degree. Contrary to most opinion, best we hope we can trust the person that is insurance should not be the foundation of an selling it to us. We buy it, because we “have asset protection strategy. Think of your as- to have it”:... As a licensed “agent” in over 40 sets, whether personal or business, as the states, I cringe whenever I hear the word items within your castle that you desire to “quote”. Not that getting the best rate for protect. The legal entities that you create, appropriate coverage shouldnt be our goal, with the advice and assistance of a legal pro- but “quoting” tends to lead to, in many situa- fessional, are the castle walls, the moat, and tions, an inadequate transaction between the watchtower you build to help protect seller (the agent) and end-user (the policy- them. What you choose to create is a sum- holder). Inadequate, because the agenda for mation of the needs and issues in which tax, the agent may not fit the needs of the cus- financial, and even estate planning must be tomer (or, as I prefer, client). Please do not taken into consideration. Acknowledge that misconstrue this as a generalization that all insurance is the archer in the watch tower, or insurance agents are inherently indifferent, or the knights with the boiling oil, that attempt less than legitimate. The attitude that insur- to keep nasty things like liability claims, fire, ance should be treated as a commodity can windstorms and other catastrophes at bay. be blamed on the industry itself, who, as a We all know insurance does not cover every- knee-jerk reaction and effort to grow market thing. The list of exclusions in most policies is share, seem to not really understand the more than a paragraph. Likewise, the archer needs of the public. Their Contact us to does not hit every target. That stated, the save $XXX on your Coverage advertising archer and knights (insurance) need to work campaigns reinforce the public attitude that insurance is a “one size fits all” industry and (Continued on page 17)Page 16
  17. 17. (Continued from page 16) insuring unknown risk, such as With multiple vehicles at home, liability, even with an asset- do we really need to pay for thein conjunction the walls and the protection strategy in place, is “rental car coverage”? If our ve-moats legal entities) to appropri- rarely a good idea. hicles are newer, many timesately protect your “stuff”. Pro- “Roadside Assistance” is built in Combining coverages---Thetecting your assets is more com- more opportunity you have to to our purchase or lease. If youplex than simply finding the combine coverages on either the are still paying for “Towing” cov-cheapest insurance rate. same policy, or with the same erage on your auto insurance“That is a nice explanation, and carrier, usually the better rate policy, its probably a waste of aworth consideration, but how you get. If you have 6 rental few dollars. I realize that many of these items are “nickels anddoes that help me when my next properties on 6 different policies,premium comes due”, you may not only are you potentially pay- dimes”. However, they are yours, and you should spendbe thinking... Inadequate cover- ing a higher rate due to internalage, whether relating to your policy fees, etc... on each, you them on things that you or liability, may be just may end up paying far more Consider re-allocating these pre- mium dollars into higher liabilityas damaging to your business than you think in the event of amodel as no coverage at all. catastrophe, such as a wind or limits, for instance.There are many cost-saving hailstorm. On separate policies, Find an insurance “Advisor” thatmechanisms that you can em- you have separate deducti- understands what it is you need/ploy, far short of short-changing bles...If multiple locations are desire to protect. Let them workcoverage. damaged, your deductible will with appropriate advice from allThese are but a few: apply per location. On a master, of your business team members or “blanket”-type policy, where (attorney, CPA, and financialHigher deductibles---Take a all properties are combined, the planner) to develop a fluidglance at the deductible you deductible usually applies per adaptable model that makeshave on all your insurance poli- occurrence. Knowing this, and sense for you. As part of yourcies. Chances are, if you in- choosing a deductible that is ap- business plan, insurance cancrease each of them to the next propriate for your business, goes help you when you need it, buthigher incremental level, the a long way in helping you when not drain you when you do not.premium savings generated will you really need it...In the recentmore than offset the difference. Article provided by Tim Norris windstorms as a result of Hurri- with National Real Estate Insur-A solid rule-of-thumb is to take cane Ike, I had one client thatthe minimum claim you would ance Group. NREIG was built to had over 150 properties dam-file, double it, and use that as specifically address the unique aged. She had a $5000 deducti- needs of the real estate inves-your preferred deductible on any ble. Thank goodness she only tor. Tim Norris is an investorpolicy. If you would never file a had to deal with it once, because$1000 claim, then certainly dont and NaREIA, OREIA and Cincin- her properties were combined on nati REIA member. We can becarry a $500 deductible. Be- one policy. Otherwise, her 10sides, as real estate investors, reached at 513-275-1350, 888- years of building a large portfolio 741-8454, or . Check outwe typically dont pay “retail” for of properties may have beensupplies or labor when it comes for more construction/rehab/repair...A information.deductible is, by definition, “self- Dropping coverages you doinsurance”. I am an advocate of not need---A quick review of aself-insuring that which you can policy will usually indicate howcontrol or is of a known amount much you are paying for unnec-(a deductible, or even the vacant essary coverages. As real es-property you got at a tax sale for tate investors, many of us have been financially blessed, even in$10,000). However, self- the current economic turmoil. Investment News Page 16
  18. 18. Trends Market Update May 2010 Housing Trends “inventory” and dividing it by the 1”2 The Homebuyer Tax Credit seemed to im- month average of number of sales.” As a pact the market with a rush to get con- rule of thumb a 5-6 month supply of tracts signed by the April 30th deadline homes on the market is balanced, over 6 and now Lenders are struggling to get months is a buyer’s market and less than them all closed by the June 30th deadline, 5 months is s sellers market. Combined which resulted in an extension on closing supply of homes in the metro is at about to September 30th. And according to 7.5 which is up slightly over the 7.4 in Real Trends, surveys show declines in April. Existing homes is at 7.4 the same sales in most markets in May. as last month and the new home supply was 8.3 the same as April. The good If we look at the Kansas City Market: news is that these numbers are lower Average Sales Price of a new home in than 2009 and the existing and combined May was $285,328 which is about the totals are nearing a bal- same as a year ago. There were price in- anced market. creases in all metro counties except John- Local data is from son and Jackson. Existing home prices where you averaged $157.476 which was a 5% in- can read the complete report. crease over last year. All counties except Johonson saw an increase in the average sale price for existing homes over May of 4 Myths from Stan Humphries last year.’s chief economist Home Sales saw sales of New homes of 1. The housing recession is over. Nope, he is 236 properties which is a 3% increase predicting we won’t hit bottom till 3rd qtr. from 2009 and New home sales increased 2. After markets hit bottom, prices will rebound. in May by 20% over April . Existing home He feels prices will remain flat for a long sales were up 28% over last year and up time. 8% over last month. Mays combined total 3. The worst of the foreclosure mess is behind sales were up 25% over last year. us. Again he disagrees and thinks it will be Inventory saw a 39% decrease in new later in the year and not stabilize until late homes from last year and existing is 9% 2011. higher that last year and just 3 % higher 4. Tax credits saved the housing market. He than April. Overall for May we have a 1 % thinks the people that bought would have increase in total inventory for 2010 over bought anyway with the low interest rates, 2009. low prices and all the lending from FHA. Supply of Homes in the Kansas City Re- So if we look at housing trends in the nation as gion is determined by taking the (Continued on page 19)Page 18
  19. 19. (Continued from page 18)a whole we see that Unit saleswere up 19.8% in May 2010 over Market Experts Wanted2009. The average home pricewas up 6.9% over last May and we Are you an expert on the market in your area orsaw a continued 9 month trend of field of expertise? We are looking for experts onstronger sales and raising prices Residential, Apartments, and Commercial toOn the National Level we havepulled information from Real contribute to the newsletter, the blog, and theTrends June 2010 issue. Com-plete digital issue is in the member meeting. Be seen an expert in your Niche.library. Be sure to log in and read. Contact info@MAREInet.comFrom Real Trends June 2010 Market Report Investment News Page 18
  20. 20. Marketing Espionage Business Cards Marketing Espionage . . How to Cre- House in 11 Days Or Less No Matter Your ate the Ultimate Business Card (s) Current Financial Situation". And then I would go on to say. "And if you happen to How much thought do you really put into own rental property, make sure to ask for the creation of your business cards? our FREE Special Report "The Five Little- Ill admit when I first started in this busi- Known Ways to Eliminate Tenant Hassles ness I didnt know diddly squat about Forever. Call 555-555-5555 to get both of marketing and I created boring business these reports today with no-obligation cards like everyone else. I had my com- whatsoever." pany name, phone, address, email and Right there you have a turnkey website--that was it. "professional" business card. All you have Luckily I hung around some pretty smart to do is "cut and paste" the above infor- fellows and quickly learned the correct mation and you will have a better and way to use business cards. First, I recom- more unique card than 99% of real estate mend having two different types of busi- investors. ness cards. The first one is going to be a Off the Wall Marketing Cards very professional card that you can hand Now, on to the second business card out to sellers. This card is going to be the youre going to have. This is where you closest thing you have to a "boring" busi- can get crazy and let your imagination ness card but there are still a few ways run wild. This card can be ugly and does- youre going to make it stand out. nt have to look professional at all. You Professional Cards will want to make this card bright pink, On the front of the card put some type of bright orange or bright yellow. You can catchy slogan so that sellers know that use big lettering to let the world know youre a real estate investor. Such as "we that "WE BUY HOUSES AND CHARGE NO provide real estate solutions" or "we will FEES". Of course, on this card you will buy your house in 30 days or less". And still want to offer free reports on the then on the back of the card I would give back. And dont forget, these cards are the sellers a reason to pick up the phone for leaving at the gas station, dry clean- and call you. ers and tacking up on bulletin boards. Do What reason should you give them? The anything you can to have these cards at- most reliable reason there is: The Free tract attention. Special Report. Heres what I would do: What I want you to do is pull out your On the back have it say "Call 555-555- current business card(s). How does it 5555 today to get a FREE copy of our look? Does it offer any reason to give you amazing Special Report "How To Sell Your a call? Does it suck? Or is it awesome and (Continued on page 21)Page 20
  21. 21. (Continued from page 20) ise yourself to hand out five able real estate investing busi- business cards or tack up five dont need to change a business cards---and you He is the author of The Covertthing. If your card needs a cant come home until you Guide to Real Estate Wealth:few changes go to vis- do. Getting 25 cards a week Confessions of a Former and make up into other peoples hands Officer. He is also the foundersome new cards. Business (100 per month) will put you of National Real Estate Inves-cards dont cost much, so on the fast track to deals, tor Month.dont be cheap about this. In money and less time spentfact, business cards can be Jason’s specialty is his Market- working for "THE MAN".one of the best investments ing Espionage method which is - Article reprinted from REI- the #1 way to attract a neveryou make if you get a ending stream of motivated$10,000 deal off a 5 cent sellers.card. Author Bio In addition to his investingAnd to increase your chances Jason R. Han- business, he does privacy andof getting that deal, you son is a former security consulting, where heshould play the "business CIA Officer who helps people becomecard game" with yourself. left the govern- “invisible” and also better pro-Every day, you should prom- ment to run his tect their homes and families. highly profit- NEED TO FLIP A PROPERTY FAST? T.O.T.L. RENOVATIONS PROPERTY LEADS WANTED Top of the Line Renovations for all your rehab needs quickly, at a reasonable price. NOTICE: We specialize in: WHOLESALERS, INVESTORS Make-ready Siding & Windows Carpentry & Roofing Our company money is sitting idle for Plumbing and Electrical Painting & Flooring lack of houses. Looking for rehabs Drywall & Doors Fences & Decks to retail in Lee’s Summit, Blue Springs, Kitchens & Baths and Johnson County. Licensed and Insured Call Anthony @ 816-606-0266 or Emily @ 816-252-0095 816-523-4400 x 223 Investment News Page 20
  22. 22. Calendar Upcoming Events Webinar: Open Road ( July Want a ton of real estate tools at your fingertips? Cash buyers, seller match, blast your property to over 20 web 1 sites, need squeeze pages, and more. Join us for this July 1st Webinar Register: Lee’s Summit Investor Breakfast Lee’s Summit Investors July Networking Group meets the 2nd Saturday of the month for coffee, breakfast, and conversation at the Panera Bread on 10 Douglas in Lee’s Summit. Open to MAREI Members & Guests.Children & College Students Industry Partner Expo Table Deadline MAREI members July Table may reserve table space for the Expo & Networking timeIs your child interested in real from 6 to 7pm at the Monthly MAREI Meeting. Must be 12 Deadline estate? Is ready to learn? reserved by July 12th. Reserve through the calendar at Add your child aged 12 to 18 to your membership.College Students with student MAREI Monthly Meeting MAREI meets for networking & ID, we have internships July Monthly education on the 2nd Tuesday of the month from 6pm to 9 available. Work in the pm. At the Sylvester Powell Jr Community Center. No 13 Meeting Charge for Members, Guests $25 at the door, $15 if pre- MAREI office for $10 in registered. MAREI bucks to use for Membership & Workshops Insurance Proper Protection MAREI’s own Tammy Contact July Robb with the Robb Agency and her staff have as-MAREI Office for more info. Seminar sembled some of the areas leading experts for this 30 afternoon seminar on Insurance. Also the topic ofPage 22
  23. 23. Monthly MeetingSylvester Powell JrCommunity Center6200 Martway, Mission KS913-722-8200Tuesday, July 13 5:45 Set Up / RegistrationDoors open at 5:45 6:00 Industry Partner ExpoMembers: FREE 6:00 Member NetworkingGuest Fees: $25 at door . . 7:00 Haves & Wants (new Pre-register online for $15 feature) Invite your friends 7:30 Presentation w/ Jason colleagues to visit theIf guests join with in two days of Palliser Monthly Meeting forthe meeting, their guest fee will beapplied to the membership fee with See Page 8 & 9 with a Guest Passproof of payment. 9:00 Informal Q & A (available online atPlease call 816-523-4400 x 222. 9:00 New Member Registration Location For each new member you 6200 Martway refer, earn MAREI Bucks Mission, KS 66210 which can be used towards seminars, advertising, North of Shawnee Mission Pkwy Park in North Lot or membership fees. South of Johnson Dr 2nd from the Building East of Lamar Less Kids & Door Dings Investment News Page 22
  24. 24. Properties Investment Opportunity Address City Offered as Price Bed / Bath Contact Phone Silver Lake Rd Topeka Turn Key $45,000 2 / 1 Home Ann Socolofsky 785-256-0619 Washburn Topeka Turn Key $80,000 Duplex Ann Socolofsky 785-256-0619 2912 Lockridge Kansas City, MO Rehab $29,000 6 Plex Candace Vanice 816-268-4722 6009 Cherry St Kansas City, MO Wholesale $55,000 1 + Home Maggie Sheehan propertyloca- Truman Library Independence Wholesale $105,000 3 duplexes Bill Textor 913-206-0979 Market Your Properties Do you have investment properties to market to the membership? Be sure to log into the MAREI member area and post your properties on the classified page. Be sure to include: Address: Street & City, State Type of sale: Wholesale, Listing, Turn Key Price: Your asking price Type of Property: Single, Duplex, Multi, Etc Contact: Name & Phone Number Web Link: For more info and more photos You can include 1 photo, but make sure it is not too high quality a photo or it will have too many pixels to load. New web site will have direct link on the main page to the properties on the Classified section of the web site. You may also want to list on the message board as well and post links on our social media pages.Page 24
  25. 25. Discount Code in the Member Library in the Benefits SectionInvestment News Page 24
  26. 26. Tool box Vendor Night Roger Holyfield 2010 Home Depot Phone: Ask me how to save $$ Jackie White & Tina Wagner BreAnn Stephenson JJ Pawlowski Accurate Title Company Renovators Insurance P: 816-916-4593 913-338-0100 913-599-2020 x 64 Offering 100% financing up Closing & Escrow Services Vacant & Rental Properties. to 70% of ARV. J.J. Pawlowski Tammy Robb Pete Mendenhall 816-916-4593 Robb Insurance Agency Chartwell Realty 913-268-6060 336-442-5802 UncommonRealEstate.Com Lease Option Alternative All Real Estate Investment Needs. Ask me how to protect your assets. Turn a No Into a Yes & Get PaidRobert J Wise Attorney at Law Ann Wilkinson Big Bobs 816-942-5925 Argentine Federal Savings Cleo Johnson & Greg Mussellman Ask me more about Landlord - 913-362-2627 913-402-1500 / Tenant Law & Eviction Investor & Rehab Loans Raul Rodriguez / Alpha Title Jeff Basler David Ono & Andy Ono 913-498-8999 913-221-9080 Ono Brothers Properties, LLC 816-399-4994 I speak Spanish Private Rehab Loans Mike Quinn JD Asbell / HomeVestors Mike Nield / Miracle Method Casa Bonita Roofing & Exteriors We offer Funding Surface Refinishing P: 816-399-8101 913-980-1866 816-224-4355 www.MiracleMethod.comPage 26
  27. 27. ABSOLUTE REAL ESTATE AUCTION! 19 Bank Owned Homes & Investment PropertiesEVERYTHING SELLING TO THE HIGH BIDDERREGARDLESS OF PRICE! NO MINIMUM BIDS! Held at Holiday Inn 45th & Main, Kansas City MO August 7th, 10 AM All properties open for viewing Saturday July 31st Auction registration starts 8:30 AM Saturday August 7th Free breakfast for all registered bidders!TERMS: $5,000 down day of sale, cash or cashiers check. Balance due in 30 days. Seller guar- antees clear title. All properties sell at the Holiday Inn location. Title Commitments, photos and property in- formation available at For questions call 800-887-6929 Investment News Page 26
  28. 28. For the Real Estate Investor . . . . Your Real Estate License Access to Accurate Sales Values in MLS Browse & View Listings on Your Schedule Control the Purchase or Sale of Your Property Supplemental Income Stream License to Wholesale without Purchase Commitment Take Control today Call John Welchert today (816) 268-3849