November 2012 newsletter


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The Investment News is the newsletter for Mid-America Association of Real Estate Investors a Trade Association for Real Estate Professionals.

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November 2012 newsletter

  1. 1. MAREI wins Awards of Excellence at National REIA Mid Year for 2nd Year in a Row! MID-AMERICA ASSOCIATION OF REAL ESTATE INVESTORS Investment News NETWORKING : EDUCATION : COMMUNITY : GOVERNMENT November 2012 10 e Pag This Month at MAREI: Tax Tune Up & Quick Books Workshop
  2. 2. ten ts c on Page 3 Page 16 Business Members Page 8 So What’s Your Script Page 27 Build your team with our Making Quick Books Training Service Providers & In- Money Page 18 dustry Partners Get Down to Business Page 4 Page 20 MAREI Real Estate, It’s Time Info Page 22 Page 10 For Sale Benefits at a Glance Investment Opportunities Page 12 Page 25 Page 28 Disclosure Statement Tax Tune Up Calendar of Events Page 5 Monthly Meeting Staff Page 14 Welcome Page 26 Page 6 New & Returning Members Use your LLC Properly How I Did the Deal 2011 2012Page 2
  3. 3. BUSINESS MEMBERS MAREI Business Members are here to serve you in your Real Estate Business. They specialize in Real Estate Professionals and have joined our association as a Business. You can find out more about each of our Business Members at . Don’t see a service you need? Ask on the Forum! Foundations Insurance Cornerstone Foundation Your Company Here Joe Williams $499 annual Lisa Goodner 913-220-5253 CornerstoneFoundationRe- Or $135 a Quarter 1-877-752-2742 Insurance Investors Jim Jrolf The Tuckers 913-915-3232 816-200-2198 1-888-741-8454 Property Management Property Management Real Estate Brokerage Kevin Jamieson 816-503-4671 Jeff Wood 816-523-4400 kevin- 816-841-9500 Staging Suppliers: Building Suppliers: Building Michelle Davis Josh Burns 913-449-3593 1-877-484-4268 Title Company Title Company Suppliers: Building Jackie White / Mary Peterson Bud Whisler Mike Steiner 913-338-0100 816-581-2299 bwhisler@coffeltlandtitle.comInvestment News Page 3
  4. 4. read anytime Contact Information PO Box 8685, Prairie Village KS, 66208 Phone: 913-815-0111 Our Mission Statement Mid-America Association of Real Estate Investors is dedicated to promoting ethical real estate investing and to protect and promote the best interest of our membership through educational and networking opportunities as well as community, legislative and public relations. Legal Disclaimer Read the Investment News MAREI does not exist to render and does not give legal, tax, economic or investment advice and anywhere, anytime, on your disclaims all liability for the action or inaction taken or not as a result of communications from or to its members, officers, directors, employees and contractors. Each individual should consult iPad, Mac and PC: his/her own counsel, accountant and other advisors as to legal, tax, economic, investment and related matters concerning real estate and other investments. Content Disclaimer The views and opinions expressed by authors of articles contributed to this newsletter do not necessarily reflect those of the association, the board of directors or the staff. Search for “MAREI” Advertise in the Investment News To subscribe Rate Schedule Size Non-Member Member Business Associate Look for us Online Full Page $175 $140 $115 Search for 1/2 Page $145 $105 $85“Kansas City Real Estate Investors” 1/4 Page $75 $65 $50 1/8 Page $55 $35 $25 A 10% discount is given on ads pre-paid for 6-12 months. Any changes to a pre-paid ad will incur a minimum charge of $20. The deadline to submit ad copy is the 1st of each month. All ads must be prepaid. Contact to verify ad format can be accepted. PDF preferred. There is an additional charge of $25 to typeset a business card ad or 1/4 page ad layout, $60 for a 1/2 page or full page lay-out. Opportunities also exist for advertising on Call 913-815-0111 for more information. Email ad copy to Mail payment to MAREI, PO Box 8685, Prairie Village, KS 66208 or request an online payment for to use credit or debit card.Page 4
  5. 5. MAREI STAFF & Volunteers Executive Director Advisory Board / Membership Desk Kim Tucker Scott Tucker Investor : Realtor Realtor Advisory Board Advisory Board / Membership Desk Donald Tucker Dan Goodwin Investor Realtor : Short Sales Focus Group Leader: Blue Springs / Lees Suumit Advisory Board / Membership Desk Debra Felderhoff Shelda Goodwin Landlord : Investor Realtor : Short Sales Focus Group Leader: Weekly Wednesdays Focus Group: Eddie Speed Mentoring Students Michelle Winberry L. Scott Ficinus Investor : Realtor Realtor Focus Group Leader: Weekly Wednesdays Advisory Board / Membership Desk Brian Winberry John Welchert Investor : Realtor : Investor : LandlordInvestment News Page 5
  6. 6. ow I di d the H Kim Tucker D EA L! Calling all MAREI members: you can write out a short success story article and walk us through how you did the deal. You submit Let’s face it, there are three key tasks that all inves- it to us here at the Investment News and we publish tors need to work on daily: it here in this publication. Note that this publication  Prospecting or Marketing for Buyer Leads is syndicated out to 4 different online publication sites as well as social media and emailed out to the  Prospecting or Marketing for Seller Leads MAREI list. So you get a lot of action through the  Prospecting or Marketing for Private Money. newsletter. We often talk about the standard ways of prospecting We know that you are probably like most investors as calling a list, emailing a list and posting ads on who want to attract as many people as you can, so signs, in print media, or online. we need to take the next step and go online and Now, you could spend more time and money on all seek out a few other real estate investor websites those time consuming tasks or you could take a dif- that will allow you to submit your success story and ferent approach. Become famous! include your contact information. So for example, go out there to a site like REI Club or CREOnline and find their success story page. There should be a link for you to be able to submit your story. So after you send us the success story, submit it online to these sites and gain even more exposure across the country, for free! You can get into the big time real estate investor magazines, but note that most of the time, they will want you to either buy so much advertising from them or flat out pay to have your story included. This can get very expensive. We know that you still need to do the normal net- working and marketing activities, but taking the time to share your success with others can direct a If you pick up any magazine targeted to an industry, whole new group of people to you. Take some time you will note that the movers and shakers in that in- to think about your past deals, pick out a few that dustry work to have a magazine article. A movie star really stand out, and write them down. Share your has a new movie coming out, they get it in several knowledge and your experience with others through magazines and make appearances on Talk Shows. this feature here and similar features online. Be- come famous, if only in the Real Estate Industry. Our business is no different. You want to attract buy- ers, sellers, and lenders so you need to do your own stint on the Daily Show and talk about what you do! Do you have a deal, we would love to hear Obviously, you probably can’t get on TV (yet) but we about it. Email it to us at do have a very valid alternative. To attract local in- vestor buyers and at least potential private lenders,Page 6
  7. 7. HOUSES WANTED Member  Built After 1950 Benefit Minimum 3 Bed, 1.5 Bath Packed Library of Forms Eastern Jackson County  Purchase and Sale Agreements MO or Johnson County KS  Assignments & Authorizations Retail Value $100k-$200k  Credit & Rental Applications  Leases & Lease Addendums No Rental Local Cash Buyer Looking for 2 to 4 Houses a month to purchase, rehab and sell. Money Partners want their money placed quickly so they can turn their money fast and make a profit. Can’t do that  Contractor Forms with out houses! Bring us a deal! Email: Log into the member library today! Submit Online: accurate Accurate Closings: Smooth, Timely, Professional. Property Insurance for Title Services Provided for: Rental, Vacant & Construction  FSBO, Wholesale, & REO Transactions  New Construction Closings Residential & Commercial  Commercial Purchases and Refinance Pay-As-You-Go  All Types of Loan Closings  1031 Exchanges  FHA, VA, USDA, Conventional Loans, and Hard Money Loan Closings Jim Jrolf  Refinance & Reverse Mortgages Toll Free: 888-741-8454  Doc Prep, Prelim HUDS, Curing Issues  Short Sale Closing & Assistance Direct: 913-951-3232  100 Years of Combined Service! 913-338-0100 phoneInvestment News Page 7
  8. 8. Making Money MAKING MONEY WITH THE LAW you can keep what you have worked your whole life for. In today’s society, if you WRITTEN ON SEPTEMBER 20, 2012 don’t take the opportunity to protect your- BY AZREIA.ORG self and your assets, somebody is going to take your assets away from you. It might Your ability to make money on business and be the government, the IRS, the lawyers, real estate deals is directly related to your your tenants, your partners, your patients, knowledge of the law. Whether it is structur- your clients, or any one of a dozen other ing the deal or trimming the tax burdens, the people or problems you face, but somebody law can turn a bad deal into a good deal and is going to take your hard-earned money a good deal into a great deal. In fact, if you away from you, unless you protect it. use the law to leverage what you do, you can You undoubtedly hope and pray that you make money faster than you ever thought won’t have a lead paint problem, get sued possible. In your business, your professional by a tenant, or have the lawyers come after practice, or real estate investing you don’t you for some insignificant reason. You do need to work harder, use the law to leverage more than just hope and pray that you what you do to make more money. No more won’t lose your household property to a work – no more time – no more risk, just common thief. You lock your doors, put se- more money to spend! curity lights around your house, and set up Not only can you get ahead financially a lot alarm systems. Your financial investments faster, using the law, when problems strike, and real estate investments are a lot more Don’t miss this event! Monthly Meeting Details: Agenda Tuesday November 13 5:30 pm Pre Meeting / Setup 6:00 pm to 9:00 pm 5:50 pm Orientation Career Education Systems 6:00 pm Networking / Vendor HallGuest Speaker: Ward Parkway Shopping 7:00 pm Speed Networking MAREI Member Center—8600 Ward Pkwy 7:15 pm Presentation Joe Martin CPA with Kansas City Missouri 8:30 pm Q & A / Networking Citizen Tax Service Top Floor 9:00 pm AdjournPage 8
  9. 9. valuable than your household payments, your medical ex- have the foundation first. Ifproperty. Have you done any- penses, the retirement money you study the wealthy, youthing to protect those assets you stoke away, and the cost will find that every one offrom the thieves that could of sending your kids to college them has a legal foundationtake them away from you –all combined. Taxes are by that they have builtthrough a legal or financial at- far the biggest constant drain The reason you don’t have atack? on your financial resources. If legal foundation and shields you know the tax laws, canThe legal system is the most around your property is be- you make money? Certainly!powerful system we have in cause of the cost, time and You can cut 10 – 15 – or evenour nation today. When you frustration. If you have a law- 25% off your tax bill everyget sued, you are going to yer set up such a shield, it will year. Think about it. Howspend every dime you’ve got cost many thousands of dol- much would a 25% reductionjust defending the lawsuit. Ei- lars, and you probably won’t in your taxes be worth to youther that or you lose. That is really get the protection you just this year?the way the system is set up. want. The process isn’t hard,The biggest mistake you’re You attend seminars, practice but the lawyers make it verygoing to make in your finan- improvement fairs, scour the complicated to “protect theircial careers is to say that you real estate market, and do turf.” Most successful peopledon’t have enough to worry everything else you can think learn that they have to under-about yet. It doesn’t matter of to find a way so that you stand what the opportunitieshow much or how little you can make more money. The in the law are, and many ofhave, in today’s lawsuit happy irony of it all is, if you learn them actually end up doing asociety, you had better worry the rules of law and to use lot of the “legal work” forabout how to protect your as- various legal structures, you themselves. Every wealthysets, or they will be taken can make more money in eve- person makes use of certainaway from you. rything you do. You don’t legal tools and principles. If have to change what you are you want to be rich, you haveIf you are going to protect doing now. All you have to do to learn to use the legal toolsyour assets, you need to be is change your position in the that the rich to identify the financial law. Think about the rich peo-threats you face. The sad part Whatever you are doing to- ple you know. It doesn’t mat-is, the general public doesn’t day, if you understand the ter what they are doing, theyeven know what the threats laws, you can make more use the tax laws and all thelook like, and they certainly money. Think about it. The other laws to their advantagedon’t have a clue how to pro- rich make money at whatever and they make money. Youtect themselves from those they do. And, the rich just get can do that, just like they do.threats. The first thing you richer. One of the major rea- But, you have to have a legalhave to do is identify the sons they can do this is their foundation to build on.threats, and then you have to use of legal techniques andsystematically eliminate them. You can’t build a house from structures. Their use of the the roof down. What do you laws puts them on the fastThe IRS is one of the major have to build first? The foun- track to riches and lets themthreats you face. Your tax dation! You can’t build a fi- protect what they alreadypayments over your lifetime nancial fortune from the roof have. Your use of the laws willcould dwarf your mortgage down either. You’ve got to do the same things for you. Investment News Page 9
  10. 10. MAREI’S MEMBER BENEFITS PROGRAM YOUR MEMBER BENEFITS AT-A-GLANCE USE THIS PAGE AS A GUIDE TO VALUE ADDED DISCOUNTS TOOLS AND SAVINGS CREATED JUST FOR YOU ON GOODS AND SERVICES YOU USE EVERY DAY.Landlord Services Suppliers Service ProviderScreening for tenants & workers with 20% discount for members. Discount card for all members providing Learn how to save money at Home De- a 10% discount on all services.. pot and register for a 2% Rebate for all purchases & rentals across the US. Electronic collection for bounced Plus 20% Discount on Paint in Kansas rent checks. No charge to you. City. News & Information FORMS & DOCSMember Library is packed with formsand docs, plus 15 % discount at EZLandlord Forms for premium forms. E-Update All members receive a discount card Our weekly email update with what’s to access our exclusive discounts up happening in real estate including to 40% off all paint, supplies, and flooring—nationwide. properties for sale, government af-Market your rentals on the nations top fairs and local market data.ranked rental site. Member discount is 20% off Regular Prices. Marketing Investment News The newsletter for Mid-America Associ-Office Solutions ation of Real Estate Investors: pub- lished monthly and distributed both in print at our meetings and digitally to our database of over 5000 people.Save on select FedEx Office copy and Websites for investors, landlords, andprint services up to 20% and on Fed- other services. FREE trial. Ex Shipping up to 22%. Magazine for the real estate investor.Receive discounts up to 65% on over With discount subscriptions for MAREI Email and Social Media Marketing, Free members. 12,000 products you use the most online and in store. Trial and Discounts for paying in ad- vance. Continued . . . .Page 10
  11. 11. Other Discounts Member Service We have several services as part of our website to help you grow MAREI’s Government Affairs ac- your business. tively monitors national legisla- tion and rule-making that im- pacts the real estate industry and harnessing the strength of MAREI Nearly 70% of QuickBooks users say members at the grassroots level.that it makes their business more prof- itable. Get your Accounting on track. Buy at a 20% discount through Na- MAREI mem- tional REIA. bers also re- ceive timely Calls to Action REAL ESTATE BOOKS Calendar of Events to stay up to when there is a date with all of our activities. The nation’s largest provider of time for our real estate training materi- members to als, DEARBORN is America’s take action on Premier Real Estate Publish- an important vote. er. Members receive up to 40% off. Members also have access to the latest Browse the member properties to in Market Da- find your next deal. Take the ta. time to post your investment op- portunities for other members Special member discounts for and site visitors to browse. members at Avis, Budget, and Enterprise Rentals. VISIT The Member Library is packed Look under Resources - The Local Market Monitor tracks and ever growing with pdf ver- Discounts real estate sales and economic sions of entire books, EBooks, trends nation wide. Offering Articles, Forms, and Documents. 25% Discount for Members. Investment News Page 11
  12. 12. Disclosure Statement Private Lending: The Disclosure Statement them yours, you had better be able to produce it and prove that every lender got a copy of it. If you dont Written by Alan Cowgill, Colby Properties have one, then you need to start immediately on cre- Reprinted from REIClub ating one. Then Id run it by a SEC attorney to see if it When I was getting my real estate education and is good enough. They are roughly 10 pages long for a started to learn about using private lenders, ALL of my basic one. instructors left out a HUGE piece of the equation. It When you are offering private lenders the opportunity was the part about being in compliance with the SEC to work with you, you must be sure to disclose to them and their regulations. the risks and rewards of the business. You should I realized recently that there is a basic item that you prepare a disclosure document. A disclosure docu- need when borrowing money from Private Lenders ment has legal consequences. If a private lender is that some of you might overlook. It is a DISCLOSURE not given sufficient, material information and suffers a DOCUMENT and every one of your lenders should loss, he may have a claim against you and your busi- get it. This is such an important item I thought I would ness. The information you give private lenders must dedicate this investing article to covering as much as be accurate and not misleading. The key test is if you can - so here we go... have given private lenders all "material" (significant) Private Borrowing & Lending Rules: information about your business at the time the invest- ment was made. It is therefore important to follow the 1. A promissory note is a security. SECs disclosure regulations in your document. 2. If you want to advertise, or pool money you had What Are The Guidelines For Creating a Disclo- better have registered with your states SEC. sure Statement? 3. Dont pay commissions to find private lenders un- In general a disclosure statement should have at least less it is to a licensed broker. the following included information: 4. Dont use the word guarantee in your advertising.  The Business of the Company - This information Or anytime. generally includes a description of your private 5. Every lender should get your disclosure docu- lending business, location of the companys facili- ment. ties, trends in the industry, and the companys marketing strategies. What Is A Disclosure Document? Whether you have no private lenders yet or a bunch An example would be... of them, you must have a disclosure document. This "Integrity Home Buyers, Inc. is a real estate is a "no option item". When you are looking to get a investment company. We work with private new private lender, the first thing you hand them is a lenders and put their funds to use in residential disclosure document. property investments that are secured by mort- You see all investments are risky. Therefore you have gages. These transactions are done in compli- to tell your private lenders that in your disclosure doc- ance with relevant laws and regulations and in ument. If you are ever asked by the SEC to show compliance with appropriate securities regis-Page 12
  13. 13. trations or exemptions in every state in which Public Accountant. we do business..."  Other key points - Risk Factors - These factors vary depending upon This is where you the company and the nature of its business. They should give people may include cash flow difficulties, market competi- access to information about your business. If tion, inexperience of management, and depend- youre new to this business, give people some ence upon an unproven product, absence of oper- projections of what you hope to do with the busi- ating history or profitable operations. The real es- ness that is reasonable and conservative. Its tate industry is particularly sensitive to economic good business to under-promise and over-deliver. downturns. The value of securities of issuers in the You should distinguish between facts and beliefs in real estate industry can be affected by changes in your disclosure. Restrained language should be used real estate values and rental income, property tax- throughout the text. At the practical level, many inves- es, interest rates, and tax and regulatory require- tors are accustomed to reading carefully worded dis- ments. closures and they are suspicious of broad, unqualified Use of Proceeds - The use of the funds to be re- claims. An understated, factual disclosure can deliver ceived from the offering should be set forth with a a powerful message to private lenders. high degree of specificity. Categories of expendi- Avoid arcane jargon and technical terms. Provide def- tures may include such items as leases, rent, utili- initions for terms that might not be easily understood. ties, payroll, and purchase of equipment, payment Dont make private lenders learn a new language if of notes, advertising costs, insurance, supplies, they want to understand your disclosure document. and payments to be made immediately to officers. Private Lending Lesson Conclusion - The All Im- Key Personnel and Shareholders - Individuals portant Disclosure Statement who direct the companys operations or who make significant contributions to the business of the com- The bottom line... by giving your lender a disclosure pany as employees, independent contractors, con- document, it shows the lender exactly what is going sultants, or otherwise are identified and important on with their loan. You will have a meeting of the background information such as education, age, minds and everything is on the table. You will be a and business experience of these persons is dis- huge step forward by being professional and in avoid- closed. Principal shareholders of the company are ing potential problems in the future. Besides, its re- identified with a description of the number and per- quired in every state. centage of shares beneficially owned. I now see it as my goal to make sure real estate in- Financial Statements - Financial information, such vestors are aware that when they borrow money from as balance sheets and statements of income and private individuals, it is not the Wild West. There are cash flows that accurately describes the financial rules that come into play. The rules are there to pro- condition of the company, is typically provided. In tect the lender and the rules are good rules. The some circumstances, these financial statements above guidelines were compiled through my SEC at- must either be audited or reviewed by a Certified torney. Investment News Page 13
  14. 14. WELCOME NEW MEMBERS To the premier trade association representing Kansas City Area Real Estate professionals MAREI continues its growth with a total of 308 members to-date. JOIN NOW ( Renewing New Members  Jon & Stacy Bichelmeyer: Lenexa, KS (since 2010)  Hank Arendt: Lee’s Summit, MO  Barbara Danuser: Pleasant Hill, MO (since 2010)  Terence Benson: Lee’s Summit, MO  Caroline Boyd: Kansas City, MO  Glenn Davis: Lexington, SC (since 2010)  Mike Cantrell: Kansas City, MO  Alan Goke: Kansas City, MO (since 2011)  Ryan Day: Raymore, MO  James Jemmerson: Kansas City, MO (since 2011)  Bill Fowler: Leawood, KS  Jacquie Lombard: Shawnee, KS (since 2011)  Matt Graham: Kansas City, MO  Larry Myer: Kansas City, MO (since 2007)  Dan Gregg: Tonganoxie, KS  Mark Pantak: Houston, TX (since 2012)  Gerry Hamment: Kingsville, MO  Michael & Lisa Rabbe: Kansas City, MO (since 2012)  Gregory Harris: Olathe, KS  Bill Textor: Leawood, KS (since 2007)  David Morgan: Lee’s Summit, MO  Freud Musanu: Kansas City, MO  Ralph Robles: Norwalk, CA  Randy Rott: Overland Park, KS  Carolyn Shaw: Shawnee, KS  Dustin Shay: Perry, KS  Joshua Smithson: Kansas City, MO  Jose Suarez: Staten Island, NY  Sherri Tabron: Kansas City, MO  Kevin Tan: Kansas City, MO  Randy Whitehead: Lenexa, KSPage 14
  15. 15. Join In!Real Estate Community Mid-America Association of Real Estate Investors  Network & Learn  Stay Informed  Build Teams  Do Business  Save Money Join Today! $99 AnnualInvestment News Page 15
  16. 16. So Whats Your Script This past week-end, members and attendees of MA- behind on payments, the bank will foreclose. REI were put through their paces in learning that its  Binds are used often in implied cause and ef- “not what you say, but how you say it” and the im- fect. So if you do more of “x” then more of “y” portance of having a script that you practice and prac- will happen. So the more deals you bring me, tice and practice. the more money we will make. Or the more you Our instructor for the Communication / Negotiation procrastinate, the less time we will have. training event was Bill Twyford and he spent two days  Double Bind is an implied cause and effect of hands on instruction with the group going over his where both x and y are bad, forcing them to pick NLP Cheat Sheet. one over the other. You can sell your house to me today for $20,000 or you can wait a month NLP, which stands for Neuro Linquistic Programing or so and my offer may be less. speaks to the subconscious brain and wakes the  Assumptive Tag Phrases are used to show brain up to make people want to hear what you have that you assume the other person agrees with to say, was the topic for the entire week end with mul- you. It makes sense to be a private lender ra- tiple examples of sentences for Real Estate Investors. ther than putting your money in the stock mar- We started each segment by learning a specific type ket, don’t you agree. of phrase, reviewing it in sample sentences and then We wrote out scripts and practiced, practiced, and writing out our own scripts and reading them aloud for practiced. We also discussed body language, up the group and working in suggested improvements. swing and down swing and more. So what were just a few of types of phrases: So figure out what it is you say in business every  Embedded Commands that tell us to do some- day. Take 5 typi- thing for example: Decide Tonight, to take my cal scenarios in offer. your daily busi-  Adverb Presuppositions that you put in front of ness and write the sentence to show that you assume it to be them out. Then true. For example: Obviously, you need to take write out some care of your situation. scripts one sen- tence to a whole  Temporal Presuppositions that allows you to paragraph. Use presume or assume beforehand that something is several or even all true. An example: During the time we work on of these phrases. And practice. this transaction you will begin to understand.  Direct Cause and Effect show that two things For more information you can Google NLP and are related. For example: Making a study up. MAREI members will find Bill’s NLP decision creates a feeling of relief. Cheat Sheet in the member library. And if you want  Implied Cause and Effect that your scripts for real estate investing already written shows that if “x” happens, then “y” will out, give us a call here at the office, we have a spe- follow. For example: Because you are cial price on Bill’s Sales Talk Training Program.Page 16
  17. 17. Property Management Do the math. Your vacancy is costing you every day. Section 8 Housing Fill your vacancy faster and save money with! KC Metro Wide Discounts for MAREI Members: Jeff Woods Receive 20% off all Regular Broker Priced Advertising. Log into Member’s Area, click on Member Discounts and look for MAREI’s 816-849500 Discount code! Cornerstone Foundation Repair Kansas Cities Real Estate Investor’s #1 Foundation Repair Contractor Steel Push to Bedrock Piers @ $850 ea Steel Wall Restraints Starting @ $180 ea Crack Injection @ $25 per foot Sump Pumps @ $800 each Property ManagementWe are proud to say that we have become realestate investors 1st call for major foundation Rental Servicesrepair issues. We offer 25 year and lifetime Kansas City Metrotransferable warranties for piering only. Joe Williams 913-220-5253 Kevin Jamieson Ask about our Investor Pricing 816-503-4671Investment News Page 17
  18. 18. Get Down to Business Entrepreneurs everywhere are working from home or offline as well as in email to accumulate all the a very small office. Others are working during breaks stuff in so that when we need a document on and lunch hour from their current job. So here are a this transaction we can find it in print and online few tips to keep you focused and on task. and have a back up just in case. Consistent Work Place: Be it your spare bedroom,  Prioritize. Look at your to do list and focus on the table at the coffee shop, or your desk at work, the ones that must be done first. Also look at make sure you work in the same place. This repeat- simple repeatable tasks that you might be able ed action will help you learn to associate working and to outsource to a third party. getting things done with that spot.  Clear the decks: Only have out items that you Specific Hours: Set specific hours to work in and are working on. Having a bunch of other pa- on your business. Block them off on your calendar pers on your desk or a bunch of other websites that these times are specifically for this type of task. open online will distract and slow you down. If they are not on your calendar they may tend to get As entrepreneurs we may also find ourselves doing filled up with other obligations. all the tasks in the business and as a one or two Routine: Set up your routine of tasks that you com- person business, this sometimes is impossible. So plete daily or weekly and do them the same time as you are clearing and organizing, look at the each day or each week. With this structure you will tasks you have and start writing out a process for know when things are supposed to be completed. the task. You may find that the tasks that you do Next you need to have an organized office. If you each and every day are taking up way too much of work from a home office it needs to be organized and your time and slowing you down. Yes, those tasks likewise if you operate from an smart phone and a must be done, but should they be done by the CEO back pack at Starbucks, those need to be organized of your company - YOU. Or should someone be as well. So how can we get organized; hired to complete them.  Throw out the trash. If you have no use Hiring someone does take some thought as to hir- for it be it empty take out or junk mail sit- ing a person who works for you in your small or non ting on your desk, to spam emails or doc- -existent office or who might work for themselves uments you no longer need on your on your behalf. Virtual Staffing can be an excellent computer. Get rid of them, they just alternative to an employee as they work for them- clutter up your activities. selves, maintain their own office space and equip- ment and deal with taxes, insurance, and payroll,  Put things where they be- thus saving you money. It may be that the virtual long. Have a filing system for staff is in town, in another state, or even in another everything in the desk, the country. back pack and online. In our real estate office we With a little work, you can be organized and get have a file per transac- more done and make more money! So let’s get tion both online and down to business.Page 18
  19. 19. Selling on Terms? The best place on the entire Need Cash Now?planet to buy kitchen cabinets. We Have The Best Prices We specialize in the purchase of owner financed notes and contracts from real estate investors Everything Is In Stock across the nation. By selling on terms you create a note or contract which can be sold for cash. We We Ship Fast can purchase all or part of your payments right at Free Design Help the closing table to provide you with your profits in cash now so you can move on to your next deal. Request a Quote Today! Josh Burns Email us at For title, escrow, 1(877) 752-2742 1031 & foreclosure. Lisa Goodner Because APIA sells only Real Estate Owned (REO) and Forced Lender insurance coverage, weve become the industry leader in providing comprehensive, affordable coverage to inves- tors, financial institutions and mortgage compa- nies. Our company specializes in Real Estate Owned (REO) and Forced Lender insurance coverage for property investors, servicers, financial insti- tutions and mortgage companies. Standard in- surance companies also turn to us for our ser- vices. Bud Whisler 816-380-3441Investment News Page 19
  20. 20. Real Estate It’s Time Let’s face it, the economy is improving, but not very repairs, maintenance, and Realtor Costs as well as quickly. Investors are not happy with the low interest insurance and taxes. So rather than foreclosing, the rates in insured investments or with the return they banks are packaging up all this bad debt and selling it are receiving in the stock market. According to the at a loss to the highly funded financial companies who Federal Reserve there are over $9.9 Trillion in sav- are then breaking these packages open and selling ings in cash accounts. the notes in smaller bundles and rehabbing the note. So what does that mean . . . It means that investors Next we look at the mortgage lending industry and we are taking their cash out of the stock market and look- find that the easy money of yesterday is gone. Rule ing for other investments for their money and right and regulations have tightened up so it is harder to now it’s sitting there in very low risk, low return ac- qualify for a loan for both the owner occupant buyers counts. These investors are looking for new places to and the real estate investor. This opens avenues for invest their funds and these investors may be YOU, the anxious money to become the bank from buying your family, and friends and other people that you can assets to sell owner finance to purchasing already approach to be cash investors. They may be located performing debt. locally or they may be from out of state or even out of So because it is harder to get a loan, more people are the country. We are going to refer to this cash as renting a home or purchasing through a seller fi- anxious money. nanced scenario such as a lease to own, contract for So what is this anxious money doing? They are a deed or an outright seller financed transaction. The paying CASH. According to the National Association anxious money in the real estate industry is filling the of Realtors, 30% of home buyers paid cash for their void that banks have left behind. homes, real estate investors paid cash 49% of the So where do you fit in all of this? Well if you can find time and investors getting financing put an average of a way to find to work your way into a niche, you are 27% down. ready to make money in this industry. Investors are also buying distress houses at todays Wholesalers: Those people that specialize in track- record low prices for cash with the plan to hold them ing down good deals from home owners in distress for five years of appreciation. can buy fixer uppers, free and clear and short sale On the flip side, the housing inventory is dropping properties to sell to cash investors. You don’t need down from the record highs of the burst bubble. In- cash to do the wholesale deal, you just need to be vestors are working harder and harder to find that able to do the leg work to find and negotiate the deals. good deal, and prices are going up, not a lot, but it is Note Buyers: Can purchase non-performing 1st and going up. 2nd lien mortgages and take a low cash buy out from We also see that banks are finding that it costs them the owner, sell through a short sale or negotiate a at a minimum of $25,000 to do a foreclosure, from the deed in lieu or foreclose and then sell to landlords and lost payments and interests for several years, to the wholesalers or end users. Here again, you don’t havePage 20
  21. 21. to have the cash yourself, but you need a ready source regular basis.of private funding from those that do. Step 2: Get educated. You can learn more aboutTurn-Key Operators: Can purchase the low end any of these types of investing at your local real($20,000 to $80,000) stock from the wholesalers and estate investors association through live and onlinethe note buyers as well as bank owned REO to get rent- classes, blogs and libraries.ed out and cash flowing and then sell to the anxious There are many fly by night companies that see amoney investors. Turn key operators need to have a whole new industry to sell you education. Theysystem to fund the initial transaction, source the hous- come into town for a week, sell, sell, sell and thening stock, and to manage the rentals. This can even be they are gone with your money. By going to thedone with no money, if you are getting paid to act on local real estate investor association, you can bebehalf of the anxious money investor. assured that you are working with a known educa-Rehabbers: Can purchase the higher mid range stock tor and because you are working through an asso-($80,000 to $150,000) to renovate and sell to the end ciation who talks to other associations, you are in abuyer. Because the house inventory has shrunk, there better position if the education turns out to not liveare less good properties for those who can buy to up to be all that is promised.choose from. So there is still a need for quality renovat- Step 3: Take Action. Get out of your comfort zone,ed homes. look at deals, analyze them, get advice and put aHands Off: Those who want to invest, who have anx- deal together.ious money, but lack time and knowledge, well they can So what arepartner with any of the folks above for a decent, more you waitingreliable return than the stock market. So if you have the for? It’s timecash, you can fund any one of the investors above or to take ac-partner with them. tion. YouAnd right around the corner, according to industry ex- can’t makeperts, we see the commercial real estate market looking any mon-to fall into line right behind the residential market. ey settingAll these factors work to create the perfect storm for real on theestate investing. The question becomes are you going side-to find your way into the industry or let it pass you by? lines. ———————-Ready to get started? Then it’s time to take action!Step 1: Get involved in the industry. Make it a priorityto meet with people in your area in the industry on a Investment News Page 21
  22. 22. $148,500 Seller $140,000 8% Int. Property Value Don Tucker Financed Note—on 20 yr $170,000, good home in Blue Am equity position, Springs, MO over 8% Return 816-523-4400 6040 E 14th ST $15,000 3 Bd Good 2/1/1 in Bemate Kansas City, MO 1 Bat North East Sakal Investing 913-735-9997 3509 Kimball Ave $18,000 3 Bd Fixer Upper in KCK Bemate Kansas City, KS 1 Ba 3509 Kimball, KCK Sakal Investing 913-735-9997 6016 E 12th St $18,500 3 Bd Looking for a great Bemate Kansas City, MO 1 Ba home in Kansas Sakal Investing City Mo.? 913-735-9997 2557 Cissna St $15,500 2 Bd Looking for a Great Bemate Kansas City, KS 1 Ba Home in KCK Sakal Investing 913-735-9997 1348 Georgia Ave $15,000 3 Bd Awesome # Beds, Bemate Kansas City, KS 1 Ba 1 Bath in KCK - Sakal Investing Only $15,000 913-735-9997 3301 Bales Ave $10,000 3 Bd $10K Wholesale 3 Christoph Becker Kansas City, MO 1.5 Ba bdrm, 1.5 bath, Blue Print Properties 1 Car Wholesale Proper- Walk ty, Needs TLC 816-419-1165 OutPage 22
  23. 23. MAREI Member Raytown $167,000 7 Unit Raytown Cash Flow Terrance Benson Property— Assignment 816-804-5287 Rogersville, MO Negotiable 4 Units 4 property package Kathleen Stegman for sale 913-208-0979 836 E 82nd St $69,000 3 Bed For Sale 2010 BWG Kansas City, MO 1 Bat Kansas City Properties Site 5109 E 41st ST $18,000 3 Bed 3 Beds 2 Bath Bemate Kansas City, MO 2 Bath House for sale— Sakal Investing Only $18,000 913-735-9997 1910 S Lees $35,000 3 Bed Looking for a fixer Bemate Summit Rd, 2 Bath upper in Independ- Sakal Investing Independence, ence 913-735-9997 MO 2316 Blue Ridge $55,000 2 Bed Seller Financed In- Nancy Hoover Tr, Independ- 1 Bath vestment Property Hoover Property ence, MO in Independence Management 816-853-2110 5501 W 98th Pl $119,000 3 Bed Great JOCO Rental Chad Bartlett Overland Park, 2 Bath KS 2 Car 913-735-5598Investment News Page 23
  24. 24. 5107 E 26th St $34,500 3 Bed Cash Flow! Section Christoph Becker Kansas City, MO 2 Bath 8 Turn-Key Rental, Blue Print Properties 2 Car $900 a month. Rehabbed 816-419-1165 Raytown House $69,400 3 Bed Great house in Legacy Investment 1 Bath Raytown with ex- Properties. 1 Car cellent Tenant nick@KCLegacyGro 4333 Bellefon- $12,500 3 Bed Great 3 Beds at Bemate taine Ave, Kan- 1 Bath 4333 Bellefontaine Sakal Investing sas City, MO KCMO—$12,500 913-735-9997 3006 E 37th St $9,500 3 Bed Need to Sell Bemate Kansas City, MO 1 Bath ASAP—Great 3 Sakal Investing Beds, 1 Bath, 913-735-9997 $9500 3612 E 59th St $10,000 3 Bed Awesome 3 Beds 2 Bemate Kansas City, MO 2 Bath Baths in KCMO— Sakal Investing Only $10,000 913-735-9997 3010 E 60th St $28,000 3 Bed 2 Bed 1 Bath Rent- Bemate Kansas City, MO 1 Bath to-Own—5K Down! Sakal Investing 913-735-9997 Olathe $84,000 3 Bed Great Potential in Chad Bartlett 3.5 Ba Olathe!!! 2 Car 913-735-5598 Slab Currently 23 Investment Opportunities 24
  25. 25. MAREI’s November Meeting It’s time for a… TAX TUNE UP! Special Guest Joe Martin CPA Citizen Tax Service If you’re looking to put more money in your pocket, knowing how to maximize deductions is essential. If you’d like to make sure you are not leaving money on the table, you need to be atLocation: this meeting. We will be discussing:Career Education Systems  In-effective BookkeepingWard Parkway Shopping Center  Maximizing DeductionsTop Floor  Ever Changing Regulations8600 Ward Parkway  Having a PlanKansas City, MO Let’s face it . . . as they debate in the Presidential Race, we allTimes: need to pay our fair share of taxes . . . but only our fair share and not a penny more! That’s why we are very excited to haveTuesday November 13 MAREI’s own Joe Martin CPA come and share his knowledge6pm to 9pm with us in November, so we can wrap up our tax year and start planning for 2013...Agenda for Tuesday November 13th Cost5:30 pm — Pre-Meeting & Set Up Investor Member—No Charge5:50 pm — Orientation Business Member—No Charge6:00 pm — Networking & Vendor Hall (reserve vendor table) Internet Member—Guest Fee7:00 pm — Speed Networking7:15 pm — Presentation: Tax Tune Up Guest Fee with MAREI’s own Joe Martin CPA $25 Per Person at the Door from Citizen Tax Service8:30 pm — Wrap Up and One on One Q & A $15 Per Person on Web Go to9:00pm — Meeting Ends Register for this meeting NOW! All Guest Fees Paid will Be credited toward membership when you join at the Meeting.Investment News Page 25
  26. 26. Your LLC, Use it Properly MAKE SURE TO USE YOUR LLC PROPERLY the investor names himself personally as the landlord and fails to identify that there is a WRITTEN ON SEPTEMBER 20, 2012 different owner of the property, the investor BY MARK ZINMAN : AZREIA.COM BLOG may personally be liable in the event of a law- Many investors know about the asset protec- suit. In other words, the investor lost all of tion that they can obtain by setting up LLCs in the protections he sought by forming the LLC which to hold their investment proper- in the first place. ties. There are differing positions on whether This same theory is important when you are each property should have its own LLC or managing properties for someone else. If you whether an investor should have one LLC which are a property management company, your holds all of the person’s properties. I believe company should not be listed as the landlord that the answer lies somewhere between those on a lease – the owner is the landlord. The two positions, and is based upon the amount of property manager should be identified as the risk the investor can handle after weighing a person to handle all issues, but noting that he number of factors. The purpose of this article is only acting as an agent for an owner. If a is not to address that issue; the focus of this lease is properly completed, and the tenant article is on making sure investors get the ben- sues the property manager for a return of efits of their LLCs once they are set up. their security deposit, the property manager First, a common mistake investors make is should summarily be dismissed from the com- transferring title of a property to the LLC but plaint as he is only an agent and have no lia- then failing to name the LLC as the landlord on bility. any lease they enter into with a tenant. Second, if the investor personally does work For example, many investors put their own on the property they can personally be liable name on the top of the lease where the for to the tenant for any work done negligent- “landlord” is identified. However, that is ly. For example, even if the home is properly wrong. The landlord is the owner of the prop- transferred into the LLC, and the LLC is erty and the entity getting the benefit of having named on the lease, the investor may be per- the lease. Therefore, the LLC should be named sonally liable if he negligently repairs a water as the owner and landlord. heater on the property and the tenant gets injured. It’s important that the LLC hire inde- On the other hand, the investor is an agent for pendent contractors to undertake such repair the owner, getting tenants and managing the work, so that the LLC is not liable. property. Under Arizona law, an agent does not have any liability for acts taken on behalf of An LLC can serve as a great means of asset a disclosed principal. Ferrarell v. Robinson, 11 protection. Investors need to make sure that Ariz.App. 473, 475, 465 P.2d 610, 612 (1970). they properly use the LLC to gain that protec- tion. On a lease, the LLC should be listed as the owner. If the investor wants to include himself on the lease, he should be identified solely as acting as an agent for the owner. Otherwise, ifPage 26
  27. 27. Quick Books Training for Real Estate Professionals Make 2013 the year you tackle the pile of paper in your receipt drawer. If you are running any kind of business and do not have a way to track all of your income and expenses, you are not only loosing money, but you are loosing valuable data. Here’s why: 1. You can track your income and expenses much more quickly with a software system that is easy to use so that you or a staffLocation: member can input data. This input of data saves time and mon- ey spent at year-end paying your accounting person to compileCareer Education Systems everything, saving you money and time.Ward Parkway Shopping Center 2. By tracking in a software system, you can find the information8600 Ward Parkway you need quickly rather than hunting through piles of pa-Kansas City, MO per. Know how much you spent on an advertising campaign or a rehab, so you can see where your money is going and where you could save money. Likewise see where your income is com-When: ing from so you can focus efforts on what is doing the best.Saturday December 1st One of the easiest software programs to use is Quick Books9am to Noon Pro. Join MAREI member Joe Martin CPA for an introductoryCheck in 8:30 to 8:50 workshop on how to use QuickBooks. With a few tips on how to set up your accounts, how to input credit card charges, checks, and deposits, and you will be ready to have a much more orga-Limited SEating nized 2012.Registration Information for Quick Books Workshop1 MAREI Member $45 1 Non-Member $45________________________________________ ____________________________________Attendee 1 Attendee 2________________________________________ ______________________________________Email Email________________________________________ ______________________________________Address City State Zip________________________________________ ______________________________________Phone Fax________________________________________Credit Card Number _____________________________________________ SignatureExpire DateScan & Email to Register Online 1-201-574-2969 (email first)Call 913-815-0111
  28. 28. Subscribe & Sync The MAREI calendar is hosted on Google Calendars. This allows you to subscribe to our calendar and sync it with your own Google Calendar, Mobile Calendar, or Outlook Calendars. Check calendar for times and locations.Other local and online train- November 2012ing events added as we findout about them to the onlinecalendar, check it weekly for Sun Mon Tue Wed Thu Fri Satnew events. 1 2 3 SG: Weekly Wed. Newsletter Published SG: Connected Inves- SG: Blue Springs / Networking tors—NEW Independence Inv. Wichita REIA4 5 6 7 8 9 10SG: Lees Summit SG: Weekly Wed. SG: Blue Springs /Investors Network Networking Independence Inv.11 12 13 14 15 KCIG Meets 16 17SG: Lees Summit Deadline: Vendor Monthly Meeting SG: Weekly Wed. Shawnee County LL SG: Blue Springs /Investors Network Tables Networking Independence Inv.18 19 20 21 22 23 24SG: Lees Summit Omaha REIA SG: Weekly Wed. SG: Blue Springs /Investors Network Networking Independence Inv.25 26 27 28 Halloween 29 30 1 Quick Books Train- ingSG: Lees Summit SG: Weekly Wed.Investors Network Networking