The RE Investment News is the monthly newsletter publication from Mid-America Association of Real Estate Investors. MAREI has been serving real estate investors in the Kanas City Metro and across the country with networking, education and benefits since 2004. Learn more on www.MAREI.org.

1. Virtual Workshop
Fast Start
Real Estate Investing
SUCCESS
N E W S L E T T E R O F M I D - A M E R I C A A S S O C I A T I O N
O F R E A L E S T A T E I N V E S T O R S
RE
SEPTEMBER 2018
N E W S
INVESTMENT
M A R E I . O R G
99 Ways to
Make Money
in Real Estate!
Dr Tameka Bryant
Finding the Niche
that pays with
September Meeting:

3. THE CALENDAR
M A R E I . O R G / C A L E N D A R
See full day
workshop
page 5
99 WAYS TO MAKE MONEY
IN REAL ESTATE
We are excited to have Tameka. Bryant join us at the September Meeting because
she is an inspiration, living many of her 99 Ways to Make Money In Real Estate over
the years. She is joining us to share how to Find the Niche that the best for you and
the tools you need to get the job done, even if you are on the beach.
Join us at the September MAREI meeting on the 11th. Doors open at 6 pm for
Networking, to Buld Your Team with our Vendor Hall, Share a Deal or Business Card
on our Deal Table and th Ask a Question at our New Genius Bar featuring
Wholesaler Marcus Bray and ___.
Monthly meetings held at the Holiday Inn at 8787 Reeder Road, Overland Park, KS.
MAREI Members & First Time Guests who Pre-Register at MAREI.org attend free -
all others pay $25 at the door or $15 online. As always there will be the Business
Hall, the Deal Table, and Networking from 6 to 7 pm. Presentation starts at 7 pm.
03RE INVESTMENT NEWS
Mailing Address:
6709 W 119th #332
Overland Park, KS 66209
Phone: 913-815-0111
Web: MAREI.org
Web: MAREIMember.com
Email: Kim@MAREI.org
Views and advertising expressed in the
RE Investment News are not necessarily
endorsed by Mid-America Association of
Real Estate Investors. The information
contained within should not be
construed as a recommendation for any
course of action regarding financial,
legal, or accounting maters by Mid-
America Association of REal Estate
Investors.
Email to inquire about advertising
oportunties or membership.
SEPTEMBER MEETING
SEPTEMBER WORKSHOP
MAREI founders Kim & Don Tucker started investing in Real Estate in 2000 and
started MAREI in 2004. Over the years they have been asked time and time again
“Where do I start?”
There is no easy answer . . . no one size fits all answer that works work for everyone.
But because every person is different with different resources and different goals,
there are many different approaches to investing.
Successful investors have a plan and sometimes change that plan to expand their
business or redirect their business as situations change or as markets shift. In this
Virtual Workshop: Fast Start to Real Estate Investing Success on Saturday,
September 29th, MAREI founder, Kim Tucker will be giving brand new investors a
broad overview of what they need to know to get started with real estate investing.
The workshop will be from 9 am to 4 pm on Saturday, September 29th on a computer
or other digital device near you.. MAREI Members pre-register for $49 nd Non-
Members for $79 at www.MAREI.org
Virtual
"Genius Bar"
This month bring your
questions for
Wholesaler Marcus
Bray with Pride
Properties and
Apartment Investor &
Funding Expert Taryn
Kendrick with
Worcester Financial.
FAST START TO
REAL ESTATE SUCCESS

4. 04 RE INVESTMENT NEWS WWW.MAREI.ORG
Cities across the country are implementing rental
licensing and inspection regulations at an
unprecedented rate. Here in the Kansas City Meto in
the past few years, several cities including Overland
Park and Independence passed new ordinances.
This past August Kansas City Missouri passed new
regulation and it is rumored that St Joe, Grandview,
Blue Springs and Lee's Summit are all working on
regulation.
A quick Google Search for any particular city and the
words rental licensing or rental registration does not
always get the information you seek. Sometimes
that city has regulation, but even Google is at a loss
to find it on the public city website.
Here at MAREI we started a research project and
need your help. We searched for the various cities,
their rental registration and inspection regulations
and we compiled what we were able to find online at
www.MAREI.org/Ordinance/.
While you can start your research on your own metro
city with this resource, we do recommend you do
your own due diligence. And if you know of any
real
estate
news
CITY ORDINANCE FOR RENTALS regulation that is missing, to please notify us so we
can update the page.
The foreclosure crisis transformed large slices of
American home-ownership into a home-rental
industry dominated by a group of Wall Street
corporations, the largest of which is Invitation
Homes.
“Single-family home rental used to be a small-scale
and local business, built around direct ties between
landlords and tenants,” the report says. “In the new
Wall Street rental empires, the relationships are
impersonal, property managers come and go, and the
executives who call the shots often have trouble
hearing the voices of their tenants over the clamor of
their investors.
During the housing crisis, large hedge funds bought
up thousands of single-family homes for cents on the
dollar. Some have sold them off to public real estate
investment trusts and others kept the homes and still
manage them today.
WALL STREET, THE NEW
LANDLORD

5. 004RE INVESTMENT NEWS
Those first trailblazers have created a whole new
industry for wall street by "financializing " rents.
Now the second wave is starting of large private
equity firms out there forming public offerings to
raise capital to buy single-family rental homes and
then rent them out.
Much of this big business of wall street landlords
was started in late 2011 and was initiated and
supported by the Federal Reserve as a way to fix the
housing crisis.
Learn more and access the articles used as a
reference at www.MAREI.org/WallStreet
05
05
“In spite of all the new domestic production
capacity, the demand has outstripped the country’s
ability to supply,” Floor Covering Institute president
Jim Gould told FCW in regard to luxury vinyl tile
(LVT). “Most manufacturers are sold out and are
supplementing their supply from Asia.”
In response to the proposed tariff, Metroflor, Shaw
Industries, Novalis and Creative Flooring Solutions
(CFL) have joined the recently-established American
Consumers and Workers Justice Coalition (ACWJC)
headed by Harlan Stone, president of the Multilayer
Flooring Association and CEO of Halstead. They are
inviting others in the industry: manufacturers,
distributors, retailers, and installers to participate.
There are others however who fell that the tariffs
may work to generate more domestic production,
imports fro mother countries, and investment in
manufacturing plants at home.
In the short term, suppliers are being advised to
hurry up and order a stockpile before tariffs get
implemented.
A federal judge concluded that the phrase "We Buy
Houses" and the website name "WeBuyHouses.com"
are generic and should not be protected under
trademark law. The court found these terms have
been used in the real estate industry since at least
1898 in all kinds of print.
Many an investor has received a letter telling them
these terms in their marketing campaigns are
trademarked and that they can't use them. Back in
June of 2017, Express Homebuyers USA, a Virginia-
based company filed suit against WBH Markeitng,
Inc. and its founder and CEO Jeremy Brandt, the
owner of the trademark, to get the trademark
canceled.
WBH was working hard to get Express to stop using
the phrase online and filed trademark complaints
with YouTube alleging that approximately 91 of
TRUMPS TARIFFS COMING TO
THE REAL ESTATE BUSINESS
For the past few years, the hottest product in
flooring for the average real estate investor has
been Luxury Vinyl Tile. It is durable, affordable, and
inexpensive to get installed. But that is set to
change if newly proposed tariffs are implemented.
President Donald Trump’s proposed tariffs on $200
billion worth of Chinese goods includes Luxury Vinyl
Tile (LVT) and multilayer flooring products such as
Wood Plastic Composite (WPC) has prompted a
group of vinyl flooring suppliers—namely Shaw,
Novalis, CFL and Metroflor—as well as the American
Chemistry Council and the Vinyl Institute, to form a
coalition against its implementation.
TRADEMARKS SHOULD BE
CANCELLED

6. 06 RE INVESTMENT NEWS WWW.MAREI.ORG
Housing price bubble chatter has increased this
summer, as market observers attempt to predict the
next residential real estate shift. It is too early to
predict a change from higher prices and lower
inventory, but the common markers that caused the
last housing cooldown are present. Wages are up
but not at the same pace as home prices, leading to
the kind of affordability concerns that can cause
fewer sales at lower prices. At the same time,
demand is still outpacing what is available for sale
in many markets.
Closed Sales increased 5.1 percent for existing
homes and 6.7 percent for new homes. Pending
Sales increased 13.7 percent for existing homes but
decreased 6.7 percent for new homes. Inventory
decreased 7.1 percent for existing homes but
increased 2.8 percent for new homes.
The Median Sales Price was up 6.5 percent to
$197,000 for existing homes but decreased 0.4
percent to $356,144 for new homes. Days on Market
decreased 12.8 percent for existing homes and 6.6
percent for new homes. Supply decreased 8.7
percent for existing homes and 3.7 percent for new
homes.
Consumer spending on home goods and
renovations are up, and more people are entering
the workforce. Employed people spending money is
good for the housing market. Meanwhile, GDP
growth was 4.1% in the second quarter, the
strongest showing since 2014. Housing starts are
down, but that is more reflective of low supply than
anything else. With a growing economy, solid
lending practices and the potential for improved
inventory from new listing and building activity,
market balance is more likely than a bubble.
From Kansas City Regional Association of Realtors.
Get the full report at kcrar.com/Statistics
Express Homebuyers advertising videos violated
WBH's right in its trademarks. And this is just one
company being targeted among many.
Express Homebuyers started a petition on
Change.org to cancel the trademark and 1873
investors across the country signed. And their
GoFundMe Account to pay for the case received 183
donations of $137,909 to pay for the legal battle.
Judge TS Ellis III not only ruled that the trademarks
for We Buy Houses and WeBuyHouses.com were
generic but that the damage claims for trademark
infringements were dismissed.
A Win for Real Estate Investors Everywhere.
PROPERTY OWNERS BEING
ATTACKED ON THE COAST
Kansas City, middle America is probably the last
place to implement trends. What starts out on the
east and west coasts, eventually makes its way to
the Mid-West and what is happening, especially on
the west coast could make lasting changes in
housing if it is not stopped.
Portland landlords are gearing up for a fight over
legislation that would limit their use of an applicants
criminal history as well as a proposal to reduce
income and security deposit requirements. Seattle
already has these rules. Many cities also want to
limit the ability of the owner to select tenants and
require applicants be accepted on a first come first
served basis, without any subjective look at the
background and screening that is very important in
the selection of tenants. One report shows 40% of
Seattle landlords are selling out due to their new
rules.
California landlords are in a battle to make rent
controls legal in that state.
These are all issues that local area cities are
discussing. Pay attention, Stay Engaged.
KCRAR'S JULY 2018
HOUSING REPORT

7. 08 07RE INVESTMENT NEWS • PAGE
PROFESSIONAL SERVICES
MEMBER BENEFIT
By their very nature, most real estate
investors are very independent, hard
working people. They are also the
same type of people who have a hard
time asking for or accepting help.
But every successful real estate
investor learns how to hire help.
You will need a team of people
working in and outside your business
that can support you. There are
going to be tough days and these are
the people who will get you through
sticky situations. The better the
team you have around you, the
greater your chances of estate
investing success.
Every team needs to have the right
combination of players for success.
It’s critically important to find the
right team of professionals who
know what they are doing, can
recognize the needs of investors like
you, and have mastered the logistics
2. Vendor Expo
At every monthly meeting there will
be 10 to 15 Business Associates
assembled and ready to assist you.
Find out what services they have to
offer and how they can help you in
your business.
3. Deal Table
At every monthly meeting you will
also find a deal table where
members can share business cards
and deal flyers.
4. Facebook Group
MAREI also moderates a Facebook
Grou for their members to ask
questions and for referrals
at https://www.facebook.com/grou
ps/kcrei
Iof the real estate acquisition &
disposition process. The right team
will not only have your best interests
at heart but may actually save you
hundreds, if not thousands of dollars
along the way.
Team Building Resources
1. Business Directory
MAREI maintains a database of local
and national vendors who not only
want to earn your business, but are
also very experienced in your
business.
These vendors can not only help you
with your transaction as it relates to
their product or service, they can
often answer other questions and
refer you to other service providers.]
Ask them questions, their answers can
save you time and money.

8. REAL ESTATE SUCCESS
You have probably heard about the 80 /
20 rule. After being a leader of a real
estate investor association (REIA) since
2000 I have seen the 80 / 20 Rule in
action. Out of any given group of
people who come to a REIA with the
goal of being a success in real estate,
20% Succeed and 80% do not
Look at a random group of 10 who start
at about roughly the same time you will
find that:
Ever wonder what makes those last 2
successful while the other 8 just never
get there?
Do a little research on successful
people and you will learn that
successful people do certain things to
gain success and it is the same in real
estate. Those that succeed:
Let’s look at this list a bit more in depth
Have a Reason: The successful have
an overall reason that drives them. It’s
not because they don’t like their job or
they hate their boss. It's usually more
along the lines that they want the
financial freedom to do what they
want when they want and how they
want.
That “WANT” is will be what is
different for each person, the financial
and time freedom is going to be similar
from investor to investor. The
successful are able to write out what
that “WANT” is and picture it in their
mind. So when the things go wrong as
they often do in real estate, they can
go back to, but I Want this, therefore I
will not quit or give up.
Can Define Their Success: The
successful can tell you exactly what it
is that will mean success in their eyes.
They can tell others what it is they see
when they picture their successful
future.
For Example:
In Ten Years I will have the freedom to
work 5 hours a day, 4 days a week.
Have the freedom to take my kids to
school and pick them up after. Time to
take part in their school and sports
activities. The ability to take two
vacations a year. I have free time to
practice my music and play in a band.
And at least one weekend a month my
family will be able to participate in an
event or take a short trip.
In Ten Years I will have all debt paid off
why some find it and others don't!
08 RE INVESTMENT NEWS WWW.MAREI.ORG
2 decide it’s not for them after a
couple of meetings
2 work hard learning everything, but
never take action
2 work hard, take some action, but
lack focus.
2 complete a few deals here and
there and end up getting a new job,
possibly in the industry
2 will succeed, they will reach their
goals and plans in real estate
investing.
Have a Reason
Can Define Their Success
They Educated Themselves
Have an Overall Plan
They Develop Action Steps
They Eliminate Distractions
Surround Themselves with
Greatness.
Find Reward in Achieving Their
Goals

9. 09RE INVESTMENT NEWS • PAGE
except for debt that is working for me. I
will have $20,000 in reserve for cash
emergencies. I will earn $20,000 every
two months from flipping a house that
will fund my trips and vacations in part
and fund new business opportunities
for me. I will earn $10,000 a month in
monthly cash flow after expenses from
my rental properties and I will manage
the property manager.
In Five Years, I will be working 5 to 6
hours a day, 5 days a week and have
the freedom to spend time with my
spouse to create those kids. We will
have the ability to take one nice
vacation a year and every few months
have a short 3- day weekend adventure.
In Five Years, I will have paid off all our
families student loan debt of $90,000
and paid off the $10,000 in credit card
debt. I will have retired from my job as
my cash flow rental properties are
earning $5,000 a month in cash flow
and I will be earning $10,000 a month
from flipping properties that I will be
investing back in my business to get as
many of my rental properties paid off so
at 5 of them will be free and clear year
10..
Most people will have a few common
ingredients in their definition of success:
Debt Paid Off, Cash in the Bank, Cash
Profits Coming in and Monthly Cash
Flow that eventually replaces their
current job. What is often missing in
many plans, however, is the Time
Component and the developing of
systems and a team so that the work
gets done without the investor doing
everything.
They Educate Themselves: Successful
people allocate some time to doing their
homework and figuring out what
strategy best fits their goals. For
example, those that need to retire debt
and build up cash will look for cash
profit strategies like wholesaling
houses, rehabbing and flipping houses,
or wholesaling notes. Those who want
to build cash flow might turn to
acquiring
rental property or buying and then
selling houses in lease option,
contract for deed or even seller
financing.
Successful people pick one strategy
to start with, and master that one
while learning about the secondary
strategy. Those with debt and not a
lot of money in the bank tend to focus
on the flipping strategies for large
cash profits. Those that have some
cash and credit will often start by
purchasing a single- family rental or
possibly a duplex to live in one side
and rent out the other.
Once the strategy is selected, the
successful person goes out and finds
a mentor or a trainer who does exactly
what they want to do and the buy
their system to implement it.
Have an Overall Plan: Once the
successful person has acquired the
education and the basic system to
implement, they sit down and write
out an action plan that details how to
Video Conferencing That Always
Works - No Matter What...
MAREI recently switched to Zoom from a competitor.
We have found it to be very similar in function, easier
to use and way more affordable.
We invite you to check out Zoom - visit
MAREI.org/Zoom

10. 10 RE INVESTMENT NEWS WWW.MAREI.ORG
go from a just built system to their one-
year success, their five-year success,
their ten-year success.
The plan clearly identifies the niche to
focus, tasks to complete to find deals,
strategies to utilize for the acquisition of
property, projected profits from each
transaction or cash flow acquired. How
many deals by specific dates, how
much debt paid off monthly.
Develop Action Plan: Having an
overall plan is not going to get you to
success. The next step is to break that
plan down into actionable steps: Do
one deal a month. Make three offers.
Talk to 20 sellers. Send out 1000
letters, spend $500 a month in Google
Pay Per Click, and make 10 blog posts a
month. Quite often the successful
person does not figure out how to send
out the letters, or manage the pay per
click or make the blog posts, they figure
out how to get those tasks done for
them, so they can focus on talking to
sellers and doing deals
They also review the action plan
regularly. If the goal is to do one deal a
month and the current system is not
generating enough seller calls the
successful investor either increases
their marketing or improves their
negotiation skills or both.
Eliminate Distraction: We often find
that a few that fail, know exactly what it
is they want to do. They have the
education and even the plan and action
steps. But they get stuck without taking
action.
Some are distracted by the gurus who
are always coming up with the latest
and greatest thing they need to know to
be successful in real estate. Some get
distracted at paying someone else for
their knowledge. Some get distracted
by life itself.
In order to succeed, remember you
don’t need to know every strategy, just
one or two. It’s ok to send a few $1000
on a training system, and then
implement it and get it working. And by
creating a good working environment
without the distractions of TV, Social
Media and other people, the successful
are able to focus during their limited free
time to build their successful business.
Surround Themselves With
Greatness: Successful people figure
out ways to hang out with others who
are already successful. These people
can become mentors, private lenders,
sounding boards and even friends. Join
and attend your local REIA group and a
few other smaller groups. These groups
are a great place to ask questions, ask
for referrals, test out ideas and to help
you celebrate success and to pick you
up when you fail. Many times, the really,
successful failed miserably when they
were getting started, but with the help
of their great successful friend, they
were able to salvage the deal, learn from
the mistake, and become a better, more
successful investor as a result.
Find Reward in Acheiving Their
Goals:: /Sure when they start on
their path to successful real estate
investor, they might want a nice
dinner out or a trip. But most
successful investors get reward in a
job well done, Getting things
done. And for me, depsiting that
profit check in the bank or making a
tally of our monthly cash flow
coming in is very rewarding. I can
visually see my success by looking
at reports in my Quickbooks.
Are you stuck, spinning your
wheels, not sure what to do first?
Join me on Saturday September
29th for a Virtual Workshop Online.
Details, Pricing & Registration
online at www.MAREI.org.
Topics of discussion include
Your Investing Education
Your Niche and Sstrategies
Your Business Plan
The Best Investments
Funding Your Properties
Real Estate Marketing
Exit Strategies
Building Your Team
Asset Protection & Tax
Savings
Moving Forward
Saturday
Sept 29th
9 am - 4pm
Virtual
MAREI,org

11. 08 11RE INVESTMENT NEWS • PAGE
REHABBING
HOUSES
DEVELOPING YOUR
RENOVATION PLAN
Adapted from an article by Nathan
Brooks on BiggerPockets.com
Renovating properties is an all-
consuming process and can become a
nightmare both financially and
personally if you aren’t totally dialed in
with every part of your business.
Nathan Brooks and his team over at
Bridge Turn Key Investments have
been developing their system to grow
from a few dozen rehabs a year to well
over 150+ for 2018. That much volume
comes with practice, dedication,
failure, clarity, focus, learning, and
time. By learning the lessons on from
both the successes and failures and
implementing those things into their
business, they have continued to refine
what the processes look like. They are
working to change the way they tackle
their renovations, the team’s
happiness, and the bottom line.
Big Picture Questions
It does not matter if your flipping just a
few houses a year or scaling your
business, you need to know the rules of
lthe game and how to keep score. Here
are some big questions you need to
answer in your own business plan:
What is Your Buying Criteria?
- What area of the city or town?
- What price point of property?
- Other house details: square feet, beds,
baths, neighborhood?.
What is Your Expected Profit Margin?
- What areas to avoid?
- What does your money cost?
- What is an acceptable profit?
What is your goal for the month /
quarter / year?
- Clear goals set for the number of deals,
dollars or both?
- Funding resources for that many deals
and how best to allocate those funds?
- What needs done to hit your goals?
What is your exit strategy?
- Hold the property as a rental?
- Sell it retail on MLS?
- Sell it off market to private buyer?
Remember, it doesn’t matter how
awesome your contractor team is if
you don’t know what the goal or the
score is. If you don’t know your goal or
how to score, you have no idea if you
are winning or losing. When you sit
down to build systems, if you have a
concrete set of ideas and goals is way
easier than trying to hit a moving
target.
Define Everything
By defining the answers to the
questions in the previous section, you
will have a clear idea of what kinds of
properties and what you need to do to
acquire them and what you need to
look for as you are buying them.
As you are looking, you’ll start to
develop an idea of the type of rehabs
you are doing. The team at Bridge is in
the lower/middle of the average home
prices in the KC market. Within their
rehabs, they typically have two
different types of renovations. They
sell turnkey homes, and they sell fully

12. 12 RE INVESTMENT NEWS WWW.MAREI.ORG
renovated properties on the MLS.
Although similar, there is a distinct
difference with the level of finishes and
potential complications with colors, tile
selections, etc. within the MLS
properties versus the turnkey
properties.
No matter where you are in your rehab
project right now, take a step back and
ask the next question:
- Do I know what the rehab is
supposed to look like when I am
finished?
- Do you know colors, type of flooring,
bathroom finishes, kitchen finishes,
types of lighting and fixtures,
landscaping materials and the over
all vibe and feel of the home.
If you don’t know these things from the
start of the project, you need to step
back and figure them out.
Nathan shares that “I’ve gotten into
renovation projects with no idea what
the end result will look like, resulting in
pain, sleepless nights, and lost money.
Looking back, these were a very scary
miscalculation.” So, if you don’t have
the answers from the start, then you
have two ways to figure them out.
1. You Define Your Project
- Know in detail want you want the
house to look like when finished.
- Know or learn what needs to be done
to reach the desired end result.
- Write down everything and create a
detailed scope of work.
- Review the scope of work with the
contractor and sign an agreement
defining timeline, cost, and end
result.
2. Get help defining the project
Use a Designer: find out what design
makes sense for the house at hand, what
do other houses look like, do the colors
and selections match the cost and type
of property you are selling based on
your end strategy for the property. Ie, if
you are selling retail or as a rental, do
you have the right overall look and feel?
Use a Contractor: does he understand
the designer’s instructions on the type of
selections and what the end result
should look like. Does the budget and
scope of work match, is there a clear
timeline for results?
Use an Architect or Engineer: is there
anything additional needed to complete
the desired design and is all the work
completed to code, safe and functional?
And if there are structural issues,
always consult with an expert.
Use a Real Estate Agent: does the
pricing for your resale make sense
relative to your renovation plans, will
the scope of work result in a property
value you seek. Do you have the right
exit strategy for the property?
Bridge has almost all of these team
players on their team, but they didn’t
start out that way. They have a long list
of mistakes they made when buying
properties that they thought were “good
deals” without examining the exit
strategy or compared to other
opportunities they had in the market.
The process for renovating a home
might seem daunting and at first it is.
But by utilizing experts in their field, the
designers, the contractors, the
engineers, the Realtors and even
learning from other investors to create a
clear, detailed plan for each house, the
task becomes just a little bit less scary.

13. 13RE INVESTMENT NEWS • PAGE
Incredible Tools to Help
You Make The Best Real
Estate Decisions
AS A REIA MEMBER AND
A PART OF UNITING INVESTORS,
YOU’RE GRANTED 10 FREE
VALUE REPORTS WHEN YOU
SIGN IN - JUST GO TO
http://housecanary.unitinginvestors.org/

14. 08
SELF DIRECTED
INVESTING
TOP 10TIPS
TO REMEMBER
By Jeff Watson, Esq.
During a speaking engagement in front
of a large REIA in a Midwestern state, I
asked the audience how many of them
had set up a self-directed retirement
account. Approximately 85% of the
room raised their hands. After the
presentation, I discussed that fact with
a friend of mine has been doing self-
directed investing since the late
1970s. He made the comment that
when that question was asked a little
over ten years ago, only five to ten
hands would be raised in a room of
over a hundred people. Clearly, the
awareness of self-directed investing is
growing.
With that in mind, I would like to share
with you what I consider to be the top
ten recommendations for self-directed
retirement account investors.
One: If you do not understand the deal,
do not do it! This is one of the
fundamental rules in all types of
investing, whether inside or outside a
retirement account. Understanding the
deal means more than just being able to
say you understand it. It means being
able to explain it in a way that makes the
complex sounds simple. You should be
able to explain the deal in three
sentences to an 8-year-old child. When
a person is able to explain something
complex in a way that even an 8-year-
old child can understand, then you
know they truly understand what they
are doing. I have seen too many
investors who made investments with
a self-directed retirement account and
later regretted it because the person
with whom they invested or to whom
they lent money was far more
sophisticated than they were, and
they felt like they had been taken
advantage of. Ask me how I know!
Allow me to give you an example of a
simple explanation. I am going to loan
$50,000 from my retirement account
to Fred. Fred is going to use that
money and other money to buy a
house, fix it up, and resell it. My loan
14 RE INVESTMENT NEWS WWW.MAREI.ORG

15. to Fred will be secured by a mortgage
against the house he is buying and
fixing. There, in three simple
sentences, you can explain a deal that
many people could take paragraphs to
cover.
Two: Always fund your accounts
every year. Many real estate investors
are struggling with ongoing monthly
cash-flow needs, and they forget to
discipline themselves to set up an
automatic or systematic program for
funding their retirement accounts,
whether they are Roth IRAs, 401(k)s,
HSAs or CESAs. Pick the two or three
accounts that really matter to you and
determine what your monthly budget
needs have to be in order to be able to
put approximately $6,000 per year into
those accounts. At a minimum, you
should be funding approximately
$6,000 into your IRA, your spouse’s
IRA, and your HSA. If you do not fund
your accounts, you will have very little
to work with for investing purposes.
The discipline of consistently funding
your accounts creates the “seed” you
will plant and subsequently reap in
future, profitable harvests. If you
never create the seed, you’ll never be
able to plant it.
Three: Know the things in which you
cannot invest. The list of things in
which you cannot invest with a self-
directed retirement account is very
simple: collectibles, shares of sub-S
corporations, and life insurance
contracts. Once you understand what
you cannot invest in, it means
everything else is possible. The same
theory also applies to the next rule.
Four: Know the prohibited
transaction rules, or hire someone
who does. We all think we understand
the rules; but when we are in a hurry
and get into a deal with a lot of moving
parts, we often don’t take the time to
analyze the transaction in light of all
the prohibited transaction rules,
particularly rules regarding not
providing a service to
your account, as well as direct and
indirect benefit rules. Many retirement
account investors are unable to
distinguish between what they believe
is a service and/or managing their
investment, let alone explain whether
they are using their retirement account
in a way that either directly or
indirectly benefits them now or in the
near future.
It is prudent to do at least an annual
review of the rules regarding
prohibited transactions and
disqualified persons so you can keep
current as to what you can do with
your self-directed retirement account
investments. There are many good
resources from custodians,
administrators and trustees, lawyers,
and even some reasonably-priced
books on the internet. These will give
you a basic understanding of most of
the rules for prohibited transactions
and investments, and disqualified
persons. If you are a fact junkie like I
am, or if you suffer from chronic
insomnia, you may want to take the
time to carefully read 26 U.S.C. 4975,
as well as the Plan Asset Rules
promulgated by the Department of
Labor.
Five: Remember that it is a retirement
account, and you need to treat it as
such by doing longer-term, cash-flow-
producing deals. Many times, an
investor gets trapped in what I call
“yield disease.” They are looking for a
high rate of return and are willing to do
short-term deals (such as hard money
lending) in order to achieve those rates
of return. While 3 points and 15%
might sound impressive for a 6-month
period of time, that deal pales in
comparison to an investment that may
last for four years consistently earning
a 12% rate of return. Since the goal is
to amass a good-sized retirement
account, you need to work toward that
goal. My suggestion is that you do it by
focusing on longer-term deals.
Consistency is important because slow
and steady wins the race.
Another benefit of doing longer-term
deals is that it is much easier to do the
necessary due diligence and
underwriting for one longer-term deal
than for a series of shorter-term deals.
There are fewer demands on your time
and fewer opportunities to make
mistakes.
Six: Do small-dollar deals until you get
really comfortable with doing all the
due diligence, underwriting and
documentation that goes along with
self-directed investing. If you do a
small-dollar deal (remember, all
accounts started out small) and
something goes wrong, you only lose
small dollars. If you do a large-dollar
deal, particularly at the beginning of
your investing career, and something
goes wrong, it could be fatal. As your
confidence and experience grow, you
can do larger-dollar deals.
Seven: Dealing and acting like a
business owner inside a self-directed
retirement account is not a good idea.
Many people will tell you that UBIT can
be your friend, and I would agree that in
certain circumstances, UBIT or UDFI are
potential allies to your retirement
account; but acting like a dealer or
owning a business inside your self-
directed retirement account is not wise.
Not only does it create a higher risk of
liability and lawsuits, but there is a
greater likelihood that it will attract the
attention of the IRS. You will also have
to file a more complex tax return
because the debt or business activity
income inside your self-directed
retirement account is not tax-free.
I’ve had people say to me, “But, Jeff, I’ve
been told that in order to have a truly
self-directed retirement account, I must
have checkbook control.” Checkbook
controls come when the IRA owns an
entity, such as an LLC or trust that is
funded with IRA dollars, and the
checkbook is in the control of the
account holder. My response to that is
that IRA-owned entities can either be
awesome or awful. You had better know
15RE INVESTMENT NEWS • PAGE

16. 16 RE INVESTMENT NEWS WWW.MAREI.ORG
contracts. Once you understand what
you cannotwhen which and why.
It’s a rule of practice in my office that I
will not assist a self-directed retirement
account holder in setting up a single-
member LLC to be owned by an IRA
wherein the account holder insists on
being the manager (person in charge of
the funds). I insist that they have an
independent, non-disqualified third party
as the manager of that LLC or the trustee
of that trust.
Eight: Open a Roth account. Many
investors who are getting up in years
have lamented that they only have
traditional accounts, and they don’t think
there is any way they can get a Roth
account. My response to that is that
anyone with a pulse and a way to earn
and report active earned income can
have a Roth account, and they need to
get one NOW! There are simply no
excuses. Once you have learned the
definition of what constitutes
active, ordinary, earned income (income
that is subject to income tax or self-
employment tax such as W-2, paycheck,
1099 or Schedule C income), you will
understand the importance of getting
some of that money into a Roth IRA or Solo
401(k) with Roth component. The magic of
the Roth is absolutely crucial. Not only
does the money get to grow tax free, but
under the right circumstances, it can be
withdrawn from the account in the form of
a qualified distribution tax-free.
Nine: Make sure you double check the
beneficiary designations for the accounts
you have established. This rule actually
applies to every type of retirement
account, investment account, or bank
account you have. You need to double
check your beneficiaries. Is that money
going to go to the person you want it to go
to in the event of your death? Is the
beneficiary designation consistent with
your overall estate plan?
Ten: Become creative and learn how
to play nicely with financial friends. Self-
directed retirement account investing is a
team sport. It is not a solo activity.
Anyone who understands the prohibited
transaction and disqualified investment
rules understands that you cannot take
money from your self-directed retirement
account and use it for your own
investments or put some of your current
assets into those accounts, so you must
learn how to work with other individuals in
a cooperative manner. You need to find
those individuals by networking with them
at your local REIAs to determine if their
business standards are the same as yours if
their objectives are similar to yours, and if
they seem like the right kind of person to
put on your investing team.
When you play nicely with financial
friends, all of you prosper and benefit.
Avoid doing a deal with someone who
believes they alone need to be the one who
profits and benefits from the transaction.
If the investment is not mutually
beneficial, it shouldn’t be done by a group
of financial friends. One of the benefits of
developing a group of financial friends is
that
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17. Build Your Team
With MAREI Business Members
Save time and money by starting with service providers who
already know your business. Who can solve problems as they arise
to help you get the deal completed on time and for maximum profit.
VISIT
MAREI.org
click on
Business
Associates
Accountant
Coleman Accounting Service
Bob Coleman
www.ColemanAcctg.com
913-787-0308
Mid America Tax Planners
Ahmad Malik
www.Accounting-USA.com
913-210-4765
Appraiser
Ladys Appraisal Service
Kathy Allen-Gray
www.LadysAppraisal.com
816-678-2794
Attorney
Anderson & Associates
Evictions / Collections
Julie Anderson
www.MOKSLaw.com
816-931-2207
Contractor
Hearth Masters
Fireplace / Masonry
Gene Padgitt
www.ChimKC.com
816-461-3665
Genesis Home Restorations
Mold Remediation
Terry Amerine
GenesisHomeRestorations.com
913-270-0812
HCS Restoration KC, LLC
Mike Peace
HCSRestorationLLCKansas.com
913-731-6537
NuLook Custom Finishes
Cabinet Refinishing
Carol Baldwin
www.NuLookFinishes.net
913-385-2574
Under Pressure Property Services
Rehab, Maintenance, & Staging
Dallas Kidd
www.MyUnderPressure.com
913-274-9555
Rick Davis Legal
Real Estate Law
Rick Davis
www.RickDavisLegal.com
913-283-8300
Auction Company
Auction.com
Rachel Bailey
www.Auction.com
816-797-6875
Building Supplier
DeMayo Enterprises
Wholesale Cabinets
Mark Yanda
www.DeMayoEnterprises.net
913-980-4260
Joe’s Carpet / Weber Flooring
Jerry Ratway
www.WeberFlooring.com
913-236-3680
The Home Depot
George Neal
816-461-9583
2% Rebate / 20% Off Paint
Details in Member Benefits
P A G E 2 9S P E C I A L E D I T I O N O F T H E R E I N V E S T M E N T N E W S

18. Insurance
Agema Insurance
Fred Dickinson
www.AgemaIns.com
913-543-8116
Arcana Insurance
Rental, Vacant, Landlord & More
NREIA.ArcanaInsurance HUB.com
877.744.3660
IRA - Self Directed
Equity Trust Company
TrustETC.com/NationalREIA
FREE Training
844-732-9404
Lending
Flat Branch Home Loans
Morgtgage Banker
Beth Langston
FlatBranchHomeLoans.com
816-479-5841 x 1148
Crossroads Investment Lending
Hard Money
Britton Asbell / Doug Harris
www.KCLend.com
913-800-8226
House Traders Monthly Meeting
Investors Choice Funding
Hard Money
Scott Ficinus
InvestorsChoiceFunding.com
816-668-7223
Longhorn Investments
Hard Money
Mike Minor
www.LongHornInvestments.com
913-209-8630
Merchants Mortgage
Mushy Money
Susan Aubin
www.MerchantsMtg.com
303-514-0815
North Oak Investments
Hard Money
Tommy Nigro
www.NorthOakInvestment.com
816-249-1001
REI Investor Funds
Hard Money
Charlie Fitzgerald
www.REIInvestorFunds.com
913-904-8090
Revolver Finance
Hard Money
Jeremy Hanna
www.RevolverFinance.com
316-880-1611
Worcester Financial'
Hard Money
Taryn Kendrick
www.WorcesterFinancial.com
816-291-4146
Marketing
Constant Contact
Email & Social Media Marketing
FREE Trial
MAREI.org/ConstantContact
Investor Carrot
Investor Websites
Free Training & Discounts
www.MAREI.org/IC
Pat Live
Answering Service
Discounts
www.MAREI.org/PatLive
Zoom
Video Conferencing
www.MAREI.org/Zoom
Office Supply
Office Depot / Office Max
www.OfficeDepot.com
Discount Link & Card in
Member Benefits Package
Pest Control
BedBugTraps.com
Stop BedBugs
Discounts for Members
Properties
Bridge Turn Key Investments
Nathan Brooks
www.BridgeTurnkey.com
913-276-4114
McKinnis Real Estate
Turn Key Provider
Nick McKinnis
McKinnisRealEstateInvestments.com
816-914-2614
KCInvest
Investment Properties
Scott Tucker & Kim & Don Tucker
www.KCInvest
913-735-0018
Pride Properties
Wholesale
Marcus Bray & Matt Bray
www.PridePropertiesHomes.com
913-213-5370
Deal Makers Monthly Meeting
We Buy Cash KC
Buyer & Seller
Justin Montoya
www.WeBuyCashKC.com
(816) 885-6441
Property Manager
Home Rental Services
Paul Branton
www.Home4Rent.com
913-627-9543
Lotus Key Homes
Loni Louis Bernard
www.LotusKeyHomes.com
816-838-7368
M & M Property Pros
Michael & Michele Bellman
www.MMPropertyPros.com
816-490-6745
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19. Realtor
Crown Realty
Rich Melton
RichMelton.CrownRealty.com
913-215-9004
Realty Resource
Scott Tucker
www.RealtyResourceKC.com
816-284-7844
Show-Me Real Estate
Dan Hartman
www.Show-MeRealEstate.com
816-532-6101
Screening
Rent Perfect
Tenant Screening Plus
Heather Johnson
www.RentPerfect.com
877-922-2547
Discounts at www.MAREI.org/RP
Title Company
Accurate Title Company
Dave Green
www.AccurateTitleCo.com
913-338-0100
Alpha Title
Mary Kellogg
www.AlphaTitleInc.com
913-498-8999
Trash Out
1-800-JunkPro
Trash Pick Up & Dumpsters
Clint Pringle
www.Junk.pro
816-935-7078
JunkLuggers
Eco Friendly Junk Removal
Olivia Jones
www.JunkLuggers.com
816-905-2204
National Vendors:
MAREI is a member of National REIA and you can find many more national
vendors by going to NationalREIA.org/Benefits
Want to be listed in our directory? For as little as $135 a Quarter or $499 annually,
join MAREI as a business member. Details at MAREI.org.
MEMBER
SPOTLIGHT
Home Rental Services opened for business in 1985 as a division of
Coldwell Banker. Originally, the company was called Coldwell Banker
Home Rental Services. Kandy managed all aspects of the original
opening of the business and then handled all daily operations. She then
purchased the company in 1989 and rebranded as Home Rental
Services.
Starting in 1985 with just a desk and a telephone, the company has
grown to 10 employees managing several hundred properties... Today
Home Rental Services has a hard-working staff that really cares about
their owners and renters. They manage hundreds of properties all over
Kansas City, both the Kansas side and the Missouri side. Their specialty is
rental homes in Johnson County.
Kandy and her team are also very active in both
the Kansas City Regional Association of Realtors
(KCRAR) and the National Association of
Residential Property Managers (NARPM)
and have committed to some very high
Standards of Practice and a very strict
Code of Ethics.
KANDY MEEHAN
HOME RENTAL SERVICES
www.Home4Rent.com
iinfo@Home4Rent.com
(913) 627-9530 Direct
(913) 469-6633 Office

20. At Mid-America Association of Real Estate Investors,
we have been helping real estate professionals
connect, learn and do deals since 2004. Now in our
15th year, we must be doing something right!
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