The Investment News: September 2011


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

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The Investment News: September 2011

  2. 2. MAREI Notes Contact Information PO Box 8685, Prairie Village KS, 66208 Phone: 913-815-0111 Fax: 816-523-4448 Our Mission Statement Mid-America Association of Real Estate Investors is dedicated to promoting ethical real estate in- vesting and to protect and promote the best interest of our membership through educational and networking opportunities as well as community, legislative and public relations. Legal Disclaimer MAREI does not exist to render and does not give legal, tax, economic or investment advice and disclaims all liability for the action or inaction taken or not as a result of communications from or to its members, officers, directors, employees and contractors. Each individual should consult his/her own counsel, accountant and other advisors as to legal, tax, economic, investment and related matters concerning real estate and other investments. Honors Content Disclaimer Of Merit The views and opinions expressed by authors of articles contributed to this newsletter do not neces- sarily reflect those of the association, the board of directors or the staff. Advertise in the Investment News 2011 Rate Schedule Size Non-Member Member Business Associate Electronic Full Page $175 $140 $115 1/2 Page $145 $105 $85Communication 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 Membership 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 Development advertising on Call 913-815-0111 for more information. Email ad copy to Mail payment to MAREI, PO Box 8685, Prairie Vil- lage, KS 66208 or request an online payment for to use credit or debit card.Page 2
  3. 3. MAREI StaffKim Tucker 816-523-4400 Don Tucker 816-523-4400 Steve BurnsDirector President Audio cashflowtreasures@gmail.comJohn Welchert Dan Goodwin 913-642-5218 Shelda GoodwinMeeting Ambassador Meeting Ambassador Meeting Ambassador816-268-3849 SheldaGoodwin@kw.comvolunteers: Be sure to thank our volunteers whohelp out at each and every meeting making sure the entiremeeting is a success. If you would like to volunteer fromtime to time to help set up, take down, or check in, or as-sist for a few hours in the business office, please or call 913-815-0111. Scott TuckerSpecial Thanks to Marty Seiss and Melissa Wurtz for their Meeting Ambassador STucker319@gmail.comassistance this past month. Investment News Page 5
  4. 4. m ar ei BUSINESS MEMBERS ADDRESSING THE NEEDS OFType Company THE REAL ESTATE INVESTOR Web Phone ContactAttorney Wise / Anderson 816-942-5925 Bob WiseContractor Te-Tee Light MAREI Vendor 816-356-1870 George BaiInsurance APIA 877-752-2742 Lisa GoodnerLender Argentine Federal Savings 913-402-1500 Ann WilkinsonProp Mgr Abraxas Prop Mgmt 816-474-8800 Meka CayceProp Mgr Jamieson Home Team 816-503-4671 Kevin JamiesonRealtor Realty Resource 816-523-4400 Kim TuckerSecurity Devcon Security 913-907-4942 Marian CollinsSupplier Canyon Stone 913-254-9301 Matt PuckettTitle Accurate Title Company 913-338-0100 Jackie WhiteWholesale kcmoHomeBuyer 816-200-2198 Don Tucker Real Estate Investors and Landlords depend on a well rounded team of professionals. If you are building your team or looking to make a trade, start your recruiting with our Vendor Members and Business Associates. See a complete list of suppliers and any discounts they may of- fer to MAREI members by visiting, Look in under the Benefits tab under “Service Directory”. 4
  5. 5. Contents MAREI News Next Month In This Issue Mortgage Fraud with MAREI Business Members 2 MAREI Meeting Staff 5 Julia Jensen, FBI Notes from Director 6 The New Land Rush—Farmland 8 Being Rich more than Money 10 Investors Wanted: Ideas for Govt REOS 12 Marketing Plan: 10 Steps 14 MAREI Market Data Report 16 Home Depot Checks 18 Calendar 22 Updating your Specialty in your Profile 24 Classifieds 25 Welcome New Members 26 More Stories on the Blog ‫׀‬ Facebook / LinkedIn  Is Real Estate in a Slump  Home Prices Rise for 4th Straight Month  Be Prepared for Appraisal Delays  Unemployment Drops in 7 of 10  $5000 Grants for First Time Military US Metros Buyers.  Several Deal Posts on Linked In  From Appraisal News : too many inter-  New Facebook Group: post your esting economic facts to list—click to deals here read all of them!Investment News Page 3
  6. 6. Director’s Notes Wow, what a year of ups and downs. The econ- ship. We are also seeing a huge increase in the omy is up one day and down the next. Housing number of houses our members are offering for sales are up and then they are down. Employ- sale on the Classifieds. And the really telling ment is rising, but it’s not. I think rather than in a factor to the Economy, at least in Kansas City, is up and down cycle that everything seems to be that the Kansas City Star seems to be getting going around in circles. bigger. Every week the sections seem to have a few more ads and maybe another page extra But I have noted that when the media was hinting here and there. Now I know the paper will never at the housing bubble and the recession was start- be the size it was because the internet has ing we noted that membership started decreasing changed the way newspapers work, but it is at MAREI. We also noted that we had fewer ad- growing and I think it is a sure sign that things vertisers and business members. I also noted that are getting better, bit by bit. the Kansas City Star Newspaper seemed to be getting thinner and thinner, the Real Estate Sec- We have added a new feature to help you make tion shrinking with fewer ads. your own decisions on how things are doing lo- cally and across the country: the MAREI Market Now over the past 6 months we Report. You can see some out takes of the full have had a large influx of both report on page 16 and members can log into brand new members and mem- the website and access the full report for July bers renewing their memberships 2011. I hope you will find this a helpful tool in that we have not seen for a few your business. It is a evolving tool as we are years. I would love to welcome looking for data providers for some information, all of you into the new and im- if you track real estate and or economic num- proved MAREI, we have figured bers and would be willing to provide a chart or out how to provide you more with two, please let me know! the same low membership fees. . In the past month or so we have started adding brand new Business Members. These are grow- ing small businesses that are starting to expand Kim Tucker and want to earn your business here in Kansas City, so be sure to welcome them to our member- Director of MAREIPage 6
  7. 7. Our Home Depot Guys! August Speaker: Michael CharestWorking on our Big Rocks &Weekly Planner Investment News Page 7
  8. 8. the New Land Rush FARMLAND You may have seen the article about us that appeared in “Boomers” - those who had waited for the cannon’s this mornings KC Star. It got me to thinking that a lot of boom before rushing into the land claim - found that a buyers may not recognize that rural property, particularly number of the choice plots had already been claimed by land has actually turned out to be a good investment as “Sooners” who had snuck into the land claim area before we work our way through what has now become a multi the race began. The impact of the land rush was imme- year slump. I found this article from INVEST magazine diate, transforming the land almost overnight. that I thought I share with our readers. Over 100 years later, we are in the midst of a second rush for land. When it is over it will go down as the At precisely twelve noon on September 16, 1893 a can- greatest land rush in United States history far eclipsing non’s boom unleashed the largest land rush America ever the Oklahoma land rush of the 1890’s. saw. Carried by all sorts of transportation - horses, wag- How will it be different? Baby Boomers, investors and ons, trains, bicycles or on foot - an estimated 100,000 institutional investment firms are preparing to buy over raced to claim plots of land in an area of land in northern one-half of the useable land in the U.S. in the next ten Oklahoma Territory. There had been a number of previous years. Are you aware there is approximately 1.6 billion land rushes in the Territory - but this was the big one. acres (Yes, billions – with a big B!) that can be bought Many would be disappointed. There were only 42,000 par- and sold? The potential is for millions and millions of cels of land available - far too few to satisfy the hopes of land deals in the next few years. all those who raced for land that day. Additionally, many of the Monthly MeetingAugust Monthly Meeting: Don’t miss this event! Tuesday September 13th, 2011, 6pm to 9pm Career Education Systems, Ward Parkway Shopping Center FREE for members, Guests $25 at the door, $15 if you pre-registerAgenda 5:30 Premeeting—Marketing Tools 7:00 Announcements / Haves & Wants 6:00 Check in / Vendors / Networking 7:30 PresentationPage 8
  9. 9. Just like the previous “land rush”, thedemand for land it is going to trans- Coral, FL. She found lots for sale on or near the water at about a third to half speakerform who owns land in our country and below their peak prices of two yearswhat they are going to use it for. ago. On a larger scale, H. Ray Alcorn AgendaIn last month’s article, I wrote how Jr., an investor in VA, is picking upBaby Boomers are buying land in all commercial and residential parcels af- Cropland Investing 101shapes, sizes and types. Let’s read ter two years on the sidelines. Mostly  How do I know I am buying goodwhat the media is saying who else is using cash, he has bought more than land?participating in this modern day rush 100 acres throughout Virginia this year,  How do I find and negotiate with rent-for land: much of it at reduced prices, and he ers? has options to buy more.”Wall Street Journal  How do I know I’m not paying too much or not getting enough return on“Is it still possible to make money in rental income?real estate? With home prices continu- “…farmland is having its biggesting to plummet, many people have revival in almost 30 years as de-  Can I be sure my land will not be damaged?finally stopped seeing their family mand for corn and soybeans from Asiamanse as a big bottomless bag of cash. and the ethanol industry drive com-  What are the risks in cropland invest-But look beyond your front door, modity prices to record highs. From ing?and you’ll find some alternative Iowa to South Dakota to Wyoming,  Should I be afraid of a cropland bub-real-estate related opportunities gains in rural land prices have ranged ble?that are holding up despite the from 78 percent to more than 200 per- Brad Gaughan, sales agent for Rural KC,current economic downturn in- cent, according to farmers and data refers to it as ―Cropland Investing 101.‖cluding rural land. Rising food from Farm Credit Services of America.” Tuesday September 13prices, demand for corn-based ethanol “TIAA-CREF, the largest U.S. managerand a growing desire by many urban- of retirement funds, bought $340 mil- 7:30 pm to 9:00ites for a place in the country are mak- lion of farmland in seven states in De- At Monthly MAREI meetinging rural land more valuable.” cember. George Washington University plans to earmark $100 million for agri-The New York Times cultural investments during this year. “, the premier“The real estate market may have “Farm values probably will rise at an land website, recently conducted a pollcooled, but investor demand may annual rate of 6 percent to 10 percent asking “When are you likely to pur-soon be heating up for at least one in the next five years,” said Murray chase land?” 73% responded said theytype of property: LAND. Some of Wise, the CEO of Westchester Group plan to purchase land in the next 12the most attractive deals lately have Inc., manager of $550 million of global months!come from land developers and home farm tracts. In comparison, the medianbuilders, who are divesting parcels in U.S. home is forecast to gain 1.2 per- What is creating such an interestmany parts of the country as they cent through 2010 and stay below the in land?whittle down excess housing inventory. 2006 peak of $221,900, the Mortgage Retiring Baby Boomers – In my pre-Even smaller landowners, facing their Bankers Association in Washington vious article, I documented that manyown financial strains, are selling off lots said. Boomers are nearing retirement. Hereonce meant for building.” “It’s just crazy out there right is a snapshot of this group:“The time is ripe to start looking; I now,” said Mac Boyd, 65, a real estate 10,000 Boomers will retire every 24haven’t seen this market in 20 years,” broker in Arcola, IL, who has sold hours!said Jaime Raskulinecz, a real estate farms for more than three dec-  17 trillion dollars are going to flowinvestor from NJ, who wants to buy ades. “The land market has never out of retirement accounts overland in the hard-hit market of Cape been stronger.” (Continued on page 20) Investment News Page 9
  10. 10. Being Rich More than Money! “Being Rich is about more than Money” eating up much of Jack’s time with his family. Espe- cially upsetting to Jack was the weekend and evening Many people think that being rich is about having time these properties ate up. This was time he would enough money to do whatever you want. However, rather have spent coaching his son’s sports team and these same people miss an IMPORTANT POINT. watching his daughter’s theatrical productions. Having millions of dollars may make you ―financially rich‖. However you will have lived a ―poor life‖, if you The sandwich shop also made money. However, were a ―slave to money‖ and did not have adequate Jack was surprised at how hard it was to find de- time for family, friends, and the many other enjoyable pendable employees. Whenever an employee did not things life has to offer. The following stories illustrate show up, Jack or his wife often had to fill in. Several this point. times Jack had to cancel or postpone the family vaca- tions due to employee issues. Jack’s Story Yes, in the end, Jack’s investments made ―good Shortly after Jack turned thirty, he married his college money‖. However, his investments had made a sig- sweetheart. Jack was a sharp and thoughtful guy, as nificant negative impact on his family life, as well as well as a meticulous planner. Jack saw all the layoffs his ability to spend time with friends and on other happening in the corporate world, and wanted to es- things he loved to do. There was many a time when tablish a safety net for his upcoming family beyond he wondered whether all the extra money was worth the fragile sanctuary of his day job. He was deter- the sacrifices he made. mined to give his two kids a better quality of life than he had growing up. Jill’s Story Jack invested in rental homes. He also bought a Jill was an average student and never finished col- sandwich shop franchise. lege. However, Jill had a lot of ―common sense‖. When Jill settled down, she decided that her family Over the years, Jack did make money on his real es- would not be dependent on corporate America for tate investments. However, he also found some very their long-term well being. unpleasant surprises. Tenant turnover was a big problem. Repairs and re-renting the properties were Jill worked for a few years in advertising, then got married and had three children. Even before marry- ing, Jill began investing in real estate. Jill marketed all of her homes as ―lease/purchase‖. She gave the tenant a locked in sales price, and three years to pur- chase. In exchange, the tenant assumed the repairs and maintenance responsibilities of the home. This trade-off worked for both the tenant and Jill. The ten- ant got a fair deal on the home, and Jill found that she was able to build up a nice portfolio of homes without the typical problems (a lot of time, energy, and head- aches) inherent in most rentals. Because of her real estate success and ease of investing, she saw no need to consider other businesses (like a sandwich shop). Jill made ―great money‖ from her real estate invest- ments. However, most importantly, Jill’s investments (Continued on page 11)Page 10
  11. 11. never took up a significant portion of Five Questions for Choosing Regular Richesher ―invaluable and irreplaceabletime‖ with family, friends, and her Buy Low : Rent Smart : Sell Highother interests. Best of all, she feltlike she was living a ―full and wonder- Put your investment to the following test, asking these five questions. Yesful life‖. to 4 or 5 indicates an investment opportunity that has the potential to pro- vide ―Regular Riches‖, and worthy of further research and consideration:Regular RichesSadly, we all know plenty of Jacks. 1. Does the potential investment have the ability to get more lucrativePeople who seem to be a slave to and easier over time (greater profits, less time)?the very investments that were in- 2. If examined on an hourly basis, will the potential investment pro-tended to provide ―freedom‖ for themand their families. The investors do duce returns of at least 3-4 times higher than the investor’s hourlytheir best job to rationalize with de- pay on his/her day job?fenses, such as ―I am doing this for 3. Does the investment have the ability to scale back (e.g. ease ofmy kids‖ or ―one day this is going topay off‖. However, they often miss exit strategy such as slowly sell off properties or a partner that isout on many of life’s most precious willing to buy out your share in a successful business)?gifts….quality time with family,friends, and other interests. 4. Does the investment opportunity produce passive income, where you could simply do almost nothing for many months and still col-We can speak from experience. We lect big profits (regular rent checks, royalties, cash from an ongo-are ―regular people‖ like you. Wehave always tried to live good lives, ing business)?make an honest living, invest on the 5. Does the investment opportunity have a good chance to be profit-side, spend quality time with family able during bad economic cycles?and friends, take nice vacations, en-joy hobbies, and more.When Scott met Andy in the late 5 – 6 hours per week. More impor- definition of a ―full and wonderful‖ life1980’s, he was managing a portfolio tantly, during this time we have en- may vary. However, what will alwaysof headaches (pure rental properties) joyed a higher quality of life with our be the same is having enough TIMEthat were eating up a lot of his time families due to the financial freedom and MONEY (not simply one or theand energy. The money was pretty that comes with ―smart investing‖. other) for what one truly loves.good, but it wasn’t making up for the Don’t be a JACK! Life is so short, How can one tell if the investment hehassles. Because of this negative and it is not enough to end up with a or she is considering will produceexperience, Scott almost decided to huge pot of gold. Rather, be a JILL! REGULAR RICHES and truly en-give up on real estate investing. It is more important to enjoy the jour- hance their lives like Jill’s invest-However, both considered that the ney of life along the way. This is ments did? Here are five questionsflaw may be with the system what we refer to as ―REGULAR we suggest you ask yourself before(landlording), not the investment RICHES‖. diving into an investment. Thesecategory (real estate). questions will help you assess REGULAR RICHES is about living a whether the investment you are con-Over time we developed a model ―full and wonderful life‖. Becausesimilar to Jill’s (lease/purchasing). sidering has the potential of produc- everyone is different, an individual’sAfter a combined more than forty ing REGULAR RICHES.years and approximately 100 proper-ties, we can say that we have devel- Andy Heller is co-author of the Fortune Magazine recommended bookoped an investment strategy that “Buy Low, Rent Smart, Sell High” and together with his partner, Scottminimizes our time, energy, and Frank, have approximately 40 years of combined real estate investingheadaches, while it maximizes ourprofits. We’ve also developed an experience and have purchased, rented and sold approximately 100easy to use strategy for efficiently residential properties. For more on the Fair Lease/buying discount properties (more Purchase and other real estate investing tips go don’tspecifically, post foreclosures, aka miss out on his workshop in Kansas City on the 22nd.―REOs‖).Some years, our side real estate in- Go to to sign up for thevestments have made more money event, and to register for some FREE Bonuses. Everythan our individual successful ca- person that Pre-registers for the event will receive a freereers, and this on an average of just copy of Andy’s Book—Buy Even Lower. Investment News Page 11
  12. 12. Investors Wanted Ideas for Government REOS On Wednesday, the Federal Housing Finance both current inventories and the expected inflow of Agency (FHFA),HUD, and the Treasury Depart- new properties. ment issued the call for private investors, industry Together, the three entities hold nearly 250,000 stakeholders, and community organizations to REO homes. About 70,000 of those are currently share their recommendations on how best to listed for sale, and another 22,000 have been manage the disposition of government-owned listed and a buyer has made an offer but the deal properties. hasn’t closed yet, according to an FHFA spokes- The agencies have issued an official Request for person. Information (RIF) to explore alternatives for fore- Federal officials believe the most effective tactic to closed homes held by Fannie Mae, Freddie Mac, take to reduce taxpayer losses and help alleviate and the Federal Housing Administration (FHA) – the market’s oversupply of homes is to sell off pools of properties to responsible investors I want YOUR Ideas on who will employ an REO-to-rental strategy. what to do with all But they say they’re open to any range of these Government creative ideas that will reduce the REO in- ventories of the GSEs and FHA, and mini- Owned Homes! mize loss severities at the same time. Per the RFI, strategies might include: joint venture proposals that specifically address local economic and real estate conditions; analytic ap- proaches to determine the appropriate disposition strategy for properties, whether sale, rental, or demolition; programs for previous homeowners to rent properties or for current renters to become owners through a lease-to-own option; or plans that include asset contributions from other REO holders, including banks and private securitization trusts. Officials noted that any recommendations involv- ing a rental strategy should also include details on the steps the investor will take to ensure the prop- erties are well maintained and managed. The ultimate goal, according to the administration, is to improve loss recoveries compared to individ-Page 12
  13. 13. ual retail REO sales, help stabilize held on government portfolios, but gested, according to administrationneighborhoods and local home the stream of new REOs coming officials.values, and where feasible and down the pipeline. ―Taking steps to encourage privateappropriate, improve the supply of Federal officials say they are look- investment in REO properties andrental housing. ing for input not only on how to transition them into productive useThe initial scope of the project pro- enhance market outcomes in the will help stabilize neighborhoodsposal is to get around 90,000 process of disposing of REO prop- and home values at a critical timehomes off Fannie’s, Freddie’s, and erties, but responses from industry for our economy,‖ said HUD Sec-FHA’s books, a HUD spokesper- participants that have the technical retary Shaun Donovan.son explained. She noted, though, and financial capability to engage The full RFI, detailing the admini-that this is just a preliminary ball- in large-scale transactions with the stration’s objectives and how topark figure, not the full reach of GSEs or FHA. submit recommendations, can bewhat they hope to accomplish. Based on responses to the RFI, viewed online. Responses are re-The primary objective, she Fannie, Freddie, or FHA may issue quested by September 15th.stressed, is to develop innovative requests for proposals to third par- Article Provided by Carrie Bayand effective strategies for manag- ties to implement the transactions with DSNews.coming not only the current inventory or disposition structures sug- Do you have a house you need to sell? A wholesale Management Solutions or Assignment you need an end buyer for? to help your properties We are looking for homes to Rehab and Sell to First Time Home Buyers. Please add us to your Buyer List. Operate Smoothly Parameters: Increase Desirability  After Repair Value $120,000 to $180,000 Enhance Investment Value  3-4 Bedroom, 1.5+ Bath Attract & Retain Tenants  Basement & Garage Preferred Find us Online  Like Post 1978, but will consider older  Cash Buyers, no Appraisals or Loan Qualification 816-474-8800 Investment News Page 13
  14. 14. Marketing Plan Ten Steps to Get Started 1. Become a student of your business. about the marketing of that product or service. Ideally if you ask any small business coach you should be spending Study your customer, your competitors, and trends in the about 30% of your time marketing your business. industry. You need to have a goal in this stage of top ten tips to become an expert in your business so you know how your 6. Start with one Marketing Method customers think. You will find that when you are the expert it Select one way to market your business that you are com- will be easier to know what your customer wants, how to fortable with, implement it, systematize it. Then add an- give it to them and how to share your product with them. other one, get it working well and on a system. Then add 2. Get some outside advice another till you have at several marketing methods that are continually generating new business. Find a friend or associate who is outside of your business and have them place themselves in their customer’s shoes. 7. Follow Up Work with them to find at least 10 new ways to promote your Most small business owners are great at following up on a business. You want the input from someone outside of your business lead that is going to give them business right now. business because, sometimes you are just too close and For example a client calls a contractor to ask them to do a need to get some fresh new outside ideas. bid for a rehab job. But not many follow up for no apparent 3. Remember not everything you do is not just to get reason. customers So as an example, all members at our group MAREI have You will be doing some things to bring in new clients and access to all the member profiles. Most profiles include some things to keep current clients. You will also be taking either a phone number or an email. As a new business at steps to build a good reputation and credibility with your MAREI, would you actually take the time to follow up with potential clients, so that when they are in the market for your every member to chat, introduce yourself, and find out what product or service they will remember that YOU are the ex- each member on the profile list does. Take notes as you pert in that area. talk and work on building a relationship. 4. You don’t have to do it yourself Then take it a step further and add them to your own data- base with a reminder to follow up with them in a few days. There are numerous different marketing tactics. Work the In a few days friend them on Facebook and then on Linked ones you enjoy, but if there is one you just hate, skip it and In. If they have an immediate problem help them solve it work on the others. either with your product or service or refer them someone Or hire someone to to help them solve their problems. do it. 8. Get a Marketing Buddy 5. You do have to do it Remember marketing is like meeting that New Years Reso- lution—you work really hard the first week and then let it Most small busi- slack off more and more till you have to get in to summer nesses are awe- clothes and you have another heavy week of activity, then some at offering the it slacks off again. Instead get a buddy to hold you ac- product or service. countable so you get off your butt and into that exercise or They may not be so in this case picking up the phone, sending a postcard, or good at or excited going to a networking meeting.Page 14
  15. 15. The Federal Housing Finance Agency Program, created as part of the housing market.announced Sept. 2 that it filed suit Frank-Dodd Act, was designed to help ————————————against 17 of the nation’s largest fi- up to 30,000 unemployed homeown-nancial institutions to recoup billions in ers in 27 states to continue making Mortgage loans in foreclosure had been delinquent an average 599 days, Lenderlosses from the sale of soured mort- their mortgage payments, the Journal Processing Services reported Aug. 30.gage-backed securities to Fannie Mae reported. The firm said the tally is the highest it hadand Freddie Mac. ———————————— recorded. ———————————— Mortgage applications were down for ————————————Freddie Mac accelerated its efforts to the third consecutive week despite Before the housing bubble burst, manybuy loans backed by apartment build- fixed rates hitting historically low lev- believed the nation’s five biggest banksings, which will boost the multifamily els, the Mortgage Bankers Associa- would control 90 percent of U.S. mort-real estate market by giving landlords tion reported in its weekly Mortgage gages, but some experts now believe mid-greater access to financing. Applications Survey released Sept. 7. size lenders will have greater opportunity to enter the market, National Mortgage ———————————— ———————————— News reported Aug. 31.Bank of America and JPMorgan Where do my MAREI dues go? For ————————————Chase will not receive second-quarter the support and maintenance of this President Obama has signed theHome Affordable Modification Pro- newsletter, the website, negotiations Budget Control Act of 2011 (more com-gram funds from the U.S. Treasury of discounts with vendors, tracking on monly known as the Debt Ceiling Bill)Department due to ongoing poor per- market data, community events, and into law. After careful analysis of theformance in assisting homeowners in harmful government action and mak- bill NAR has concluded that it containsmodifying their mortgages. ing sure you are updated on all of no direct impact on real estate tax rules ———————————— these on a regular basis. or spending provisions. No tax laws ofThe Obama administration will give ———————————— any kind were changed, nor were anyunemployed homeowners until Sept. More than 28,000 underwater borrow- housing programs cut. But what will happen now that congress is now back15 to apply for a new $1 billion fore- ers refinanced through the Home Af- in sessionclosure-prevention program, The Wall fordable Refinancing Program inStreet Journal reported Aug. 29. All June. That’s up 12 percent from May ————————————borrowers must be approved by Sept. and was the first increase since Feb- Missouri Legislators went back to30, which is when the government’s ruary. Federal Reserve Chairman Ben work in a special session to createauthority to make new loans runs out. Bernanke has urged Congress to be new jobs in Missouri.The Emergency Homeowner Loan more active in helping the struggling FREE Gift! Get instant access to 3 greatBe sure to use your discount FREE Bonuses. Valued atcard for savings of up to 40% $200: Must Know RE Terms 2% Rebate, Get regular pricing in all stores Glossary, Think & Grow Rich Instructions in the membernationwide. This is all part of Book , and Training eCourse. area of Loga NATIONAL Contractor Ac- in, click on Member Librarycount for awesome price sav- and look for Home Depot inings! Card is in your mem- the Benefits Section.bership package! Investment News Page 15
  16. 16. Market Data MAREI’s New Market Report On the National Level from The average sale price of a New Home is 8% lower that a New Home a year ago and the prices of existing or resale homes is “Pending home sales declined in July but remain well above year- down 2% from the same time as last year. When you look at ago levels, according to the National Association of Realtors®. All number of home sold this year compared to the same month of regions show monthly declines except for the West, which contin- July last year, we have a 54% Increase, compared to one month ues to show the highest level of sales contract activity.” ago we have a 18% decrease which reflects the normal slow Lawrence Yun, NAR chief economist, said sales activity is under- down we see in summer months PLUS the tighter lending stan- performing. “The market can easily move into a healthy expansion dards and the consumers reluctance to buy given the current if mortgage underwriting standards return to normalcy,” he said. issues in the economy and a wait and see attitude in regards to “We also need to be mindful that not all sales contracts are lead- our government – this is a time period over which our legislators ing to closed existing-home sales. Other market frictions need to in Washington were arguing over the debt ceiling limit increase. be addressed, such as assuring that proper comparables are used When we look at new home inventory, it is down 16 % from last in appraisal valuations, and streamlining the short sales process.” year, but up about 1% over last month. And we currently have “Looking at pending home sales over a longer span, contract ac- 9.4 months supply of homes listed for sale – a flat market is rep- tivity over the past three months is fairly comparable to the first resented by a 5 month supply. three months of the year, and well above the low seen in April,” Yun said. “The underlying factors for improving sales are devel- Click here to Read full our full Market Report oping, such as rising rents, record high affordability conditions  US New Homes Sold and For Sale and investors buying real estate as a future inflation hedge. It is  US New Home Inventory now a question of lending standards and consumers having the  US Homebuilder’s Confidence necessary confidence to enter the market.”  US Building Permits & Housing Starts Commercial Areas from  KS & MO Building Permits (& KC Metro) “The commercial real estate market is bouncing back with a  KS & MO Housing Starts (& KC Metro) vengeance and exceeding forecasts from analysts. The signs are  KC Metro Home Sales & Average Sales Price clear: The number of troubled loans are dropping, occupancy is  US Existing Home Sales & Pending soaring, and office building sales are rising in some of the coun-  US Months Supply of Homes try’s largest commercial real estate markets.”  Bankruptcy Numbers Nationally & KS & MO  Unemployment Numbers US & Local Locally from  Interesting Debt & Budget Numbers  Commercial Update  Pay Scale Index  Median and Average KC Prices  KC Sales by Price Range & Days Inventory   KS & MO Stat Chart – just numbers  KC Average Sale Price by County  National Foreclosure Rate Heat Map  KS & MO Foreclosure ActivityPage 16
  17. 17. Mobile Media Easy to Use / Customizable  Multiple Templates to Choose  PreFilled Text or Write Your Own  Unlimited Pages as Needed  Properties Descriptions & Photos MAREI  Tools to Build your Buyer’s List Internships  Data Collection Tools  Your Own Domain Managing  Keyword Rich for SEO Websites FREE Site / Hosting $19.95 Month Booking Events Selling Find Out What Advertising YOU Can Do Graphic accurate Design with Mobile Media Accurate Closings: Marketing Smooth, Timely, Professional. Email Title Services Provided for:  FSBO, Wholesale, & REO Transactions  New Construction Closings  Commercial Purchases and Refinance go to  All Types of Loan  1031 Exchanges  FHA, VA, USDA, Conventional Loans, For Examples and Hard Money Loan Closings  Refinance & Reverse Mortgages  Doc Prep, Prelim HUDS, Curing Issues  Short Sale Closing & Assistance  100 Years of Combined Service! 913-338-0100 phoneInvestment News Page 17
  18. 18. A quick glance at the spread- sheet for the June 2011 Payouts shows some interesting facts: HOME DEPOT  Smallest Payout was $0.31 REBATE CHECKS ARE OUT  Largest Payout was $17,180*  Average Payout $565.92  Members of the Kansas City How much did you get? REIA Chapters saved $63,948.49  Members of the Kansas City REIA Chapters spent DID YOU GET YOURS? $3,197,424.35 in the time covered for the June payouts  Combined Membership of all the REIA and Landlord groups Did you sign up? that are a part of this payout is estimated at about 500 members.  Only 113 out of the estimated More info at: 500 members participated.  Our goal for the next 6 months is to double all of those numbers above. So if you are not yet participating go to the link at the left and find out how to get started! Reports of: $777.44 (above), $103.45 (left), $25, $103.06, and $338.93.Page 18
  19. 19. Asset Protection TE-TEE LIGHT Insurance Agency ELECTRICAL SERVICES Keeping you ―In-Powered‖ with Superior Electrical Service! 877-752-2742  FREE Estimates  FREE Consultations on Non-Emergency  24-hour Same Day Emergency Service Licensed, Insured, Bonded Serving Kansas & Missouri George Z. Bai, Sr. - Owner Office (816) 356-1870 Cell (816) 210-4710 Real Estate Owned / Forced Placement For Investors & Finance InstitutionsFor Investors By InvestorsIn this market, you want an agent on your side that has the knowledge, the ability, the EXPERIENCE, “Flexible rehab options and the resources to help you! and purchase financing for qualified investors! Ann Wilkinson Vice President Mortgage Loan Production 12501 Antioch Rd Overland Park, KS 66213 Ph: (913) 402-1500 Fax: (913) 402-0673 Realty Resource 115 E Gregory, KCMO 816-523-4400 www.RealtyResourceKC.comInvestment News Page 19
  20. 20. the next two decades into the Stock market and the drive toward tionwide! Also, there are brokers re- hands of Boomers. buying land porting around the country that they 1 in 4 Boomers own more than one As in most economic cycles, there are have more buyers than sellers. That is times when the stock market has not a great dilemma to have! If the stock piece of real estate. performed to investor’s expectations. market continues to be volatile, more 1/2 of Boomers own their home When the stock market is doing well and more investors are going to look to free and clear. there is no reason for investors to look land to fulfill a part of their investment 60% of Boomers plan to move to a elsewhere to secure a modest return needs. Some are buying land like it is a rural setting. on investment. But, as we know, the stock and betting that it will increase inSince 1 in 4 Baby Boomers own more stock market is mired in uncertainty. value over the next 5 to 10 years andthan one property, the logical conclu- Because of this, some investors look beat stock market returns.sion is they will allocate a portion of for other investment options such astheir investment portfolio and buy land hard assets. Both individual and institu- Don’t be left behind! Be a part ofin the near future. tional investors are looking to land as the next great land rush! one safe haven to relocate part of their When the dust settled, many walkedBaby Boomers are buying land, investment portfolio. This translates away from the Oklahoma land rushbut most unlikely to ever move on that billions of dollars will be moved disappointed and empty handed. Don’tthe property into land over the next few years. sit on the sidelines any further waitingWhere are Boomers going to relocate As an example, the demand for hard for the next opportunity. You can saywhen they retire? In a poll commis- assets appeared in FL in 2004 and to your children that you were part ofsioned by the National Association of 2005. In 2003 and 2004 the overall THE greatest land rush in US history!Realtors, 60% plan to move to a rural stock market results were flat. Inves- There simply isn’t a better time toarea upon retirement. The operative tors were unsatisfied with the returns profit from land!word is PLAN. Many are in the process and began to look for investments out-of purchasing small and large tracts of side the stock market. Some turned to In the next few years there will be mil-land all around the country to fulfill real estate, (i.e. condos, preconstruc- lions and millions of land transactions.their future dream. Chances are that tion projects, rehabs etc.) particularly a I specialize in finding sellers – and youthey will never move on to the prop- drive to buy land. At the time, I was can too. The marketplace needs inves-erty. Nonetheless, everyday there are associated with a real estate office in tors like me to find affordable land formore and more Boomers entering into rural Florida that only brokered land. this new generation of buyer.the land arena to buy their dream By early 2005, the office received con-property – and they are ready to buy tact from a new buyer every 15 min- Some of you are saying, “Can I reallysoon! utes! They learned investors wanted to buy and sell land?” Land is by far the buy for two reasons: (1) for investment simplest, easiest form of real es- and; (2) to build on the property at tate on the planet. Don’t be intimi- retirement. 80% of the buyers bought dated because you have never site unseen and lived far away from done something like this before. the property. The marketplace desperately needs The brokerage (as well as many other more investors to step into this once-in brokers in Florida) could not keep pace -a-lifetime opportunity. Won’t you join with the demand as there were more me? buyers than sellers. So, I and a few other investors went out to coax land- Buy land. They’ve stopped making owners to sell their property. In the it. - Mark Twain end, this one office brokered 1000’s of land deals ranging from a .25 acre to 500 acres. The demand for land is reoccurring again but this time it is happening na-Page 20
  21. 21. More Information . . . More Confidence Do the math. Your vacancy is costing you every day. Fill your vacancy faster and save money with! More Profits Tenant ScreeningDiscounts for MAREI Members: Pre Employment Screening Receive 20% off all Regular Contractor Screening Priced Advertising. Log into Collection Services Member’s Area, click on Member Discounts and look for MAREI’s Discounts for MAREI Members Discount code! 816-436-0085“Presentation is Everything!” Property Management Rental Services Kansas City Metro 550 E. 56 Highway, Suite B Olathe, KS, 66061 Phone: (913) 254-9300 Kevin Jamieson Fax: (913) 254-9301 816-503-4671 info@canyon-stone.comInvestment News Page 21
  22. 22. Sept 3rd Networking Independence / Blue Springs: Panera Bread 40 Hwy & 291 4pm to 6pm: Debra Felderhoff Sept 4th Networking Lee’s Summit: Panera Bread on Chipman Road in Lees Summit: Debra FelderhoffCALENDAR Details, Times, Locations, Cost & Registration at Sept 7th Sept 7th Networking Training Weekly Wednesdays: 103rd & State Line 9 am to 11 am : Michelle Winberry Mortgage Fraud - 6pm-9pm,1 Credit PHP, 3 Hrs Realtor Contin. Ed Sept 10th Networking Independence / Blue Springs: Panera Bread 40 Hwy & 291 4pm to 6pm: Debra Felderhoff Sept 11th Networking Lee’s Summit: Panera Bread on Chipman Road in Lees Summit: Debra Felderhoff Sept 12th Deadline Deadline to Reserve a Vendor Table for Tuesday Meeting by Noon Sept 13th Meeting Monthly Meeting: Career Education Systems South East side of Ward Parkway 6pm-9pm Sept 13th Training Advanced Property Management—Mid America Crime Free—All Day Sept 14th Training Mortgage Fraud - 9am-12pm,1 Credit PHP, 3 Hrs Realtor Contin. Ed Sept 14th Training Appraisal Essentials - 1pm- 4pm,1 Credit PHP, 3 Hrs Realtor Contin. Ed Sept 14th Networking Weekly Wednesdays: 103rd & State Line 9 am to 11 am : Michelle Winberry Sept 14th Networking Commercial Sub Group: 103rd 7 State Line 5:30 to 7:30 : Larry Prato / Spencer Cullor Sept 15th Training Lawsuits - 1pm-4pm,1 Credit PHP, 3 Hrs Realtor Contin. Ed Sept 17th Training Credit Scores - 1pm-4pm,1 Credit PHP, 3 Hrs Realtor Contin. Ed Sept 17th Networking Independence / Blue Springs: Panera Bread 40 Hwy & 291 4pm to 6pm: Debra Felderhoff Sept 18th Networking Lee’s Summit: Panera Bread on Chipman Road in Lees Summit: Debra FelderhoffPage 22
  23. 23. Sept 19th Training Lawsuits - 1pm-4pm,1 Credit Networking & Education Scores PHP, 3 Hrs Realtor Contin. Ed Sept 21 Training Short Sales / Foreclosures - 9am-1pm 1 PHP, 3 Hours Realtor C E Sept 21 Training Creating Wealth - 1pm-4pm,1 Credit PHP, 3 Hrs Realtor Contin. Ed Sept 21 Networking Weekly Wednesdays: 103rd & State Line 9 Details, Times, Locations, Cost & Registration at am to 11 am : Michelle Winberry Sept 24 Networking Independence / Blue Springs: Panera Bread 40 Hwy & 291 4pm to 6pm: Debra Felderhoff Sept 24 Training Negotiating - 1pm-4pm,1 Credit PHP, 3 Hrs Realtor Contin. Ed Sept 25 Networking Lee’s Summit: Panera Bread on Chipman Road in Lees Summit: Debra Felderhoff Sept 26 Training Short Sales / Foreclosures - 6pm-9pm 1 PHP, 3 Hours Realtor C E Sept 28 Networking Weekly Wednesdays: 103rd & State Line 9 am to 11 am : Michelle Winberry Sept 28 Networking Commercial Sub Group: 103rd 7 State Line 5:30 to 7:30 : Larry Prato / Spencer Cullor Oct 22nd Workshop Special Saturday workshop, Buy Low, Rent Smart with Andy Heller OU! THANK Y Many thanks to our Volunteers who sponsor a Networking. If you need more networking and interaction, please check outLarry Prato Spencer Cullor the Networking Group on theCommercial Subgroup Commercial Subgroup Calendar. First Networking event is free and does not re- quire membership. After that if you want to continue as a part of the subgroup, we request that you become a member of MAREI to gain more knowledge and access all the tools and benefits of membershipDebra Felderhoff Michelle WinberryBS, LS, Indep Subgroup Weekly Wednesdays Investment News Page 23
  24. 24. Your Info Other Buttons Members can find each other through the Search Member’s by Specialty section. So that they can find you, be sure to edit this information in your ―My Info‖ section.  View / Edit Profile will let you see what your profile will look like to other people  Edit Photo will allow you to load a photo or other item in a photo format so that when people look at your profile they can see what you look like and know who you are when they see you at meetings.  Search Member’s by Specialty in this area, we have already talked about, as the place where you can tell people a bit about what you do.  My Newsletter Subscriptions we dont utilize much as we don’t send newsletters through this system, but rather through an outside source.  My Affiliate Members lets you see the other people who have been added onto your membershipPage 24
  25. 25. See more details on each property in the Classifieds at As Address City Price Bed/Bath Contact PhoneWholesale 2510 Myrtle KCMO $13,500 3/2 Christoph Becker 816-419-1165Wholesale 310 E 81st ST KCMO $48,000 2/1 JD Asbell 913-583-1199Wholesale 8701 N Troost KCMO $115,000 4/3 JD Asbell 913-583-1199Wholesale 8413 E 85th Tr Raytown $48,000 4/2 JD Asbell 913-583-1199Rehabbed 9436 Hakins Lenexa $85,000 2/1 JD Asbell 913-583-1199Wholesale 5500 College KCMo $17,500 3/1 Christoph Becker 816-419-1165Wholesale 5241 Olive KCMO $17,500 3/1 Christoph Becker 816-419-1165Wholesale 5161 Hardesty KCMO $14,500 3/1 Christoph Becker 816-419-1165Owner Fin Townhome Smithville Not priced 2 / 1.5 Rajeev Verma 913-735-5234Wholesale 2904 E 35th St KCMO 14,999 5/ 1.5 Joey Kramer 816-510-4259Short sales 3 houses KCMO $9k each Eric Deeter, Realty Resource 913-579-3354Renal 7411 Forest KCMO 39900 2/2 Scott Tucker, Realty Resource 913-620-7934Turn Key 8516 W 69th Tr Overland Park 119,900 3/1.5 Don Tucker owner/ broker 913-208-3017Fixer No address No city No price 3/2 Kevin Jamieson Reece & Nichols 816-686-2955Rental 1811 S Cedar Independence No price NA Kevin Jamieson Reece & Nichols 816-686-2955Fixer 9900 Countryside Lenexa No price 3 / 1.5 Rick Zeitun 913-461-8560Owner Fin No address Raytwon No Price 3/2 Michael Bryant 816-226-7299Listing 3125 Spruce KCMO $19,750 2/2 Chris Pinkepank, Keller Williams 816-892-3533Listing 3813 E 53rd Tr KCMO $22,750 3/1 Chris Pinkepank, Keller Williams 816-892-3533Listing 6124 S Benton KCMO $22.750 3/1 Chris Pinkepank, Keller Williams 816-892-3533Listing 6931 Jackson KCMO $22,750 2/2 Chris Pinkepank, Keller Williams 816-892-3533Listing 4931 Chestnut KCMO $17,750 2/1 Chris Pinkepank, Keller Williams 816-892-3533Listing 2402 NE 59th St NA $47,000 NA Chris Pinkepank, Keller Williams 816-892-3533Listing 8321 Wabash KCMO $38,400 2/1 Chris Pinkepank, Keller Williams 816-892-3533Turn Key 2204 SW Keystone Pl Blue springs $109,900 4/2 Don Tucker owner / broker 913-208-3017Seller Finance 2547 Denver KCMO $27,000 3/2 Steve Summers 816-350-7200 Investment News Page 25
  26. 26. Welcome We would like to welcome the New Members and Guests from the past month and to thank our New and Returning Members for being a vital part of this association! New Members Guests  Greg Billeisen, Kansas City, MO  Caral Burton  Alex Duckworth, Lee’s Summit, MO  Jim Easton  Karl Dunivent, Liberty, MO  Brett Gossen  Jeannie Esteves, Lee’s Summit, MO  Phil Jensen  Kamal Fuleihan, Olathe, KS  Antonio Jones  Kerry & Tami Hardinger, Overland Park, KS  Miles Krivena  Scott Kilpatrick, DeSoto, KS  Keith Mace  Michael Lanning, Kansas City, MO  Doug Neu  Ervin Middleton, Las Vegas, NV  Don Watson  Valerie Minnear, Lees Summit, MO Returning Members New Business  Scott Doherty, Leawood, KS  Jeffrey Forster, Independence, MO  Abraxas Property Management  Norm Kinnaugh, Lawrence, KS  Meka Cayce, Kansas City, MO  Steve Kolb, Kansas City, MO  Lacha Palomino, Kansas City, Mo  Joey Kramer, North Kansas City, MO  Jamieson Home Team - Reece & Nich-  Curt & Brenda Linstra, Kansas City, MO ols  James Maffuccio, Kansas City, MO  Kevin Jamieson, Independence,  Candace Vanice, Kansas City, MO MO  Kelley Weston, Lee’s Summit, MO  Joe Clark, Independence, MOPage 26
  27. 27. Wireless Security Systems Keypad, 3 doors, 1 motion, 1 primary & 1 door siren On Demand Training One time Charge of $99 plus tax 30 Minute Segments Includes installation Requires 36 month contract. Top Investor Trainers Monthly Monitoring Fee $39.99 From the Comfort of Sell house transfer to new owner Your own Internet Connection or move to new house $39.00 Training Courses REO & Lease Option Marian Collins: 913-907-4942 Creative Financing Gary Hartman: 913-991-1612 Automated Investments Auctions & Foreclosures Short Sales Government Grant Money―Recommended by Fortune Magazine!‖On Saturday October 22nd, real estate expert Andy Heller will show you whyTODAY’S real estate market is the best time EVER for investors, and this win- Free Copy for alldow of opportunity will be open only so long. Learn how to use Andy’s Fortune who register Early—see calen-Magazine recommended strategy. Andy will show you how to buy bank-owned dar onproperties directly from banks and REO Agents for pennies on the dollar BE- MAREInet.comFORE the properties hit MLS, and how to cash in on today’s strengtheningrental market with his ―Rent Smart‖ lease/option program. The workshop willinclude: Why today’s COOLING market is a  How the ―typical‖ lease options mini- RED HOT opportunity for investor mize, not maximize, an investor’s profit Buying Low: Learn about the un-  How to make a fortune in real estate tapped fortunes with bank-owned real AND help your tenants at the same time estate  How to sell for top dollar WITHOUT What types of properties can you buy paying real estate commission from banks  Achieve your REGULAR RICHES: Real How to buy REOs BEFORE they are estate fortunes for regular people . . . . listed on MLS without the hassles.Investment News Page 27
  28. 28. membershipWhat makes MAREI Different?You have a lot of choices in Kansas City for Real Estate and Landlord Groups. There are many rea-sons why MAREI is different, unique and better for you than other groups in the area. MAREI OthersMonthly MeetingsSaturday Training SeminarsMonthly Webinars and Recorded EventsMeet Local VendorsNational SpeakersDeal Makers Quick Pitch (Haves and Wants)Local Market Updates (at Meetings and Oline)Heavy Emphasis on NetworkingVery Active in Social MediaRobust Monthly NewsletterBlacklist of Undesirable SpeakersRigorous Vetting ProcessMember Focused MindsetREIA Leaders Who Invest Full TimeRobust Member Benefits ManualState of the Art Member & Guest WebsiteActive in National REIAActive in Legislative Efforts to Protect Our IndustryPacked Member Resource Pages & Online LibraryNon-Stop Sales PitchGroup Leader FocusedPoorly Run, Poorly Organized Meeting
  29. 29. Mid-America Crime Free Inc. Date: 10/19/2011Proudly Presents! Time: 7AM to 5PM FAIR HOUSING & PREMISE LIABILITY SEMINAR Seminar Schedule 08:00-09:30 Registration / Buffet Breakfast (Fresh Fruit, Pastries, Eggs, Biscuits & Gravy) 09:30-11:45 Fair Housing w/ Robert J Wise 11:55-12:30 Foreclosure Issues w/ Wise & Anderson 12:30-1:30 Buffet Lunch (Beef Brisket & Blackened Chicken) 01:30-02:30 Premise Liability w/ Julie Anderson 02:30-02:45 Afternoon Break (refreshments) 02:45-03:15 Bed Bugs w/ Det. Todd Butler 03:15-03:25 Break (refreshments) 03:25-05:00 Physical Security / Lighting Issues w/ P.O. Mike Betton 05:00 Seminar Concludes This is YOUR chance to learn and discuss all the aspects of FAIR HOUSING in an OPEN FORUM with landlord/eviction ATTORNEYS Robert J. Wise and Juli Anderson. Also DISUCSS the ever changing ideas that surround PREMISE LIABILITY with AT- TORNEY Julie Anderson. We also will have a presentation on the BED BUG infesta- tion with Detective Todd Butler and then wrap it all up with updated information on PHYSICAL SECURITY with P.O. Mike Betten. All of this great information, breakfast and lunch for one GREAT PRICE of $99.00. Don’t miss out on this great SINGLE DAY SEMINAR. Location: Mid-America Crime Free Inc. Holiday Inn Kansas City Metro Patrol Division CoCo Key Water Resort 7601 Prospect Ave 9103 East 39th Street Kansas City, Mo 64130 To Register Go Online to If you have any questions please contact P.O. Aaron McKie at 816-581-0723 or