The Investment News: August 2012


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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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The Investment News: August 2012

  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 August 2012 10 e Pag
  2. 2. ten ts c on Page 3 Page 12 Page 18 Page 26 Business Members Bill Twyford Calendar of Events Altos Research Build your team with our Language Patterns Schedule Now Area Market Data Service Providers & In- dustry Partners Page 14 Page 20 Page 27 Membership Duncan Weirman Mid-West Real Estate Page 6 Options SAFE Act Revisited Investor Expo How I Did the Deal Page 15 Page 22 Page 28 Page 8 Welcome For Sale August Meeting August Speaker New & Returning Members Member Properties Marck de Lautour Page 16 Page 24 Page10 Build Your Team MAREI Website Benefits at a Glance At MAREI Posting Properties Save with Discounts 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 Property Management Investors Jim Jrolf The Tuckers Meka Cayce 913-915-3232 816-200-2198 816-474-8800 1-888-741-8454 Property Management Property Management Real Estate Brokerage Kevin Jamieson 816-503-4671 Jeff Wood Kim Tucker & Staff kevin- 816-841-9500 816-523-4400 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 : Landlord Focus Group Leader: IRA Investing Focus Group Leader: Young Professional Investor Coming Soon . . . Leader Located Leader Wanted Focus Group Leaders: Transaction Engineers Focus Group Leader: Commercial Leader Wanted Leader Wanted Focus Group Leader: Women in Real Estate Focus Group Leader: Advanced Investors Leader Wanted Leader WantedInvestment News Page 5
  6. 6. d the d eal! How I di New feature : Share your deal with our read- ers so they can learn how a deal gets done. Submit to The Property: We have recently purchased a patio taxes and go to sale this month if they don’t get paid. home/ town house/ half a duplex in Kansas City Mis- They owe about $8,000 in HOA. They wanted to net souri on the Golf Course. This is a home built in 1989, $70,000 after all of the above had been paid. that needs a lot of cleaning and deferred maintenance They received an $80,000 offer that was going to pay on the roof, windows, and HVAC and some updating. off all the back taxes and HOA up front and then pay Based on comparables a similar sized 3 bedroom, 2 1/2 them the remaining $50,000 over 5 or 6 years time. bath patio home on the golf course should sell between They also received a similar offer to ours that was a $140,000 and $160,000 bit higher, but they wanted to close on the 14th of Au- Comparables give us a similar renovated home with a gust, which based on the tax sale, they need to have walk out basement that sold for $163,500 , a home the closing on or before Friday Aug 17th. pending at $169,900 in 27 days and a 2 bedroom that Why they took our lower price offer: We had the low- sold for $148,500. We estimate our after repair value at est offer, but we agreed to pay them $2000 upon proof about $145,000 without a finished walk out basement of clean title and their signing of closing documents, and about $155,000 with a finished basement. so they had funds to rent a new place to live. We also Repairs Needed: Exterior just painted by HOA, needs agreed to closing on the 16th, to stop the tax sale, but roof, windows, deck repairs, minor updates to kitchens gave them the week end to move out. We gave them and baths—mainly fixtures and granite tops, a good something the other offers did not: full cash sale now, cleaning and painting: About $35,000 moving money before the official closing, and posses- sion after closing so they have time to move out. Maximum Allowable Offer: Exit Strategy: We could wholesale this for quick cash. $145,000 x 70% = $101,500 I estimate we could get a wholesale investor buyer at Less Repairs of $35,000 about $70,000. We could fix the roof, windows, and Maximum Allowable Offer: $66,500 mechanicals for about $12,000 and sell to an owner occupant as a fixer upper for about $100k to $110k as How we found the deal: We have a website on Word- that’s what fixer uppers bring. Or we can fully reno- press that we pay $12 a year for and maintain our- vate and sell at $145,000 and potentially finish the selves: and we post about basement and sell for $155,000 (or more). 5 to 10 we buy houses about 5 days a week on and The sellers say they Funding: Funding for this deal is coming from a pri- found our website on the Internet. So either they saw vate partner who funds purchase and rehab for a split one of our ads or they did a search and received our of the eventual profit. Deal submitted by the Tuckers, website. who are long time area investors who purchase homes for cash to renovate and resell. Find us online Sellers Story: Sellers purchased the inherited the home at, via email at kcmoHome- free and clear several years and have not paid HOA or by phone at 816-200-2198. dues or taxes since. They owe about $22,000 in backPage 6
  7. 7. Be sure to Join Now (Or Renew) Sell Vacant Houses Faster Go online at How? We transform vacant houses - often seen by buyers as stale, lifeless, unappealing - into fully-furnished, inviting, valued Show- homes. Now in our third decade of service to Homeowners and their Realtors, weve become Americas premier home staging service coast- For everyone that joins now or at the meeting to-coast. on Tuesday we have several free giveaway Our professional home staging services can add items for you to choose from: thousands of dollars to your sale price -- and at the same time reduce the stress and expense of mar- Buying Real Estate without Cash or Credit keting your property. (Peter Conti & David Finkel) and for more money! How to Create Multiple Streams of Income Buying Homes In Nice Areas with Nothing Down (Peter Conti & David Finkel) Michelle Davis 913-449-3593 For title, escrow, 1031 & foreclosure. Management Solutions to help your properties Operate Smoothly Increase Desirability Enhance Investment Value Attract & Retain Tenants Find us Online 816-474-8800 Bud Whisler 816-380-3441Investment News Page 7
  8. 8. We recently a piece of paper or an idea of a piece of pa- sat down per. and had a These investors are looking for sound in- quick lunch vestments with a dollars and sense return with Marck on their money. They want to know going in de Lautour what their risk is, what their return on invest- to discuss ment is and how quickly they can turn a his real estate profit. investing model in the Kansas City Many of these investors live in US states or Market. He had taken a truly other countries where real estate investing unique approach to the turn-key investing is cost prohibitive and they are turning now model. to mid-west real estate markets for afford- able options. This investor wants boots on He has applied a stock market investor men- the ground in our markets who can locate tality to the real estate market here in Kansas profitable deals, work the deal - be it rehab City. There is millions in anxious money from and rental or rehab and flip, and to turn a investors who are tired of the ups and downs profit for them. and downs and downs of the stock market who are looking for better returns with less We are seeing 100’s of companies popping risk. With the stock market, value can go to up across the US to be the turn-key invest- zero, but in real estate, even if the market ment provider for these hands off investors. takes a nose dive, you still own an asset, not These providers are buying houses really Don’t miss this event! Monthly MeetingGuest Speaker: Details: Agenda Local Kansas City Real Tuesday August 14th 5:30 pm Pre Meeting / Setup Estate Investor Marck de 6:00 pm to 9:00 pm 6:00 pm Registration Lautour with SBD Hous- Career Education Systems 6:00 pm Vendor Hall ing Solutions will be Ward Parkway Shopping 7:00 pm Speed Networking sharing his Real Estate Center—8600 Ward Pkwy 7:15 pm Presentation Investing Model. Kansas City Missouri 8:30 pm Q & A / Networking Top Floor 9:00 pm AdjornPage 8
  9. 9. cheap, getting them renovated targets the pricing bracket that tise he is able to get the low-and rented up, then selling includes first time home buy- est possible price, and as youthem to the investors for cash ers, retirees, families upgrad- know your profit is make whenflow. The housing providers ing as well as investors look- you buy, not when you sell.are making money every step ing for a reasonably priced in- He has teamed up with theof the way in many cases from vestment. The first criteria he best industry providers to ser-commissions to buy, manage- uses when finding his inves- vice the homes purchased.ment fees to renovate, and tors a property is no low end, Their professional team in-property management fees for high crime neighborhoods. sures a swift and effective re-keeping them rented. He offers his investors differ- model as well as efficientThe major problem with this ent options based on their in- rental screening with a longmodel in many cases is that come needs. If they want time professional manage-the target neighborhoods are quick cash, he works with ment company to ensure thatthe lowest end housing in the them to find a fix and flip the properties are rented outmetro area. Areas with high house. If they want a longer quickly to quality tenants.crime, that are primarily all term investment he will work We have found that Marck’srental housing and with nu- to find them a fix and lease to approach to real estate invest-merous vacant properties. own property or a rental. ing is with a financial businessMany of the anxious investors He works to find the best pos- model in mind from start to fin-are getting burned with this sible purchase price on homes ish. We have invited him totype of property as the pro- through area wholesalers, present his model to area in-vider just wants to make their distressed sellers, foreclosure vestors at our August buck in selling them the sales, and bank owned REO Be sure to see complete de-house and as soon as the property. Through his exper- tails on the back page.deed is signed, often timesthat fabulous tenant is on tothe next house.Marck has taken a different Marck de Lautour Wealth Builderapproach. He is targeting DE- …………………………………………SIRABLE areas of town that Ph: (816) 994-9401appeal to the largest core of Fax: (816) 994-9449 marck@SBDHousing.combuyers in the area and that …………………………………………guarantees the greatest ap- www.SBDHousing.compreciation as well as a safe P.O. Box 3338and secure exit strategy. He Independence, Missouri 64055 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 Asso-Office Solutions ciation 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, and print services up to 20% and on other services. FREE trial. FedEx 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 your business. MAREI’s Government Affairs ac- 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. Calendar of Events to stay up to Buy at a 40% discount through Na- date with all of our activities. MAREI mem- tional REIA. bers also re- ceive timely Calls to Action REAL ESTATE BOOKS when there is a The nation’s largest provider of time for our real estate training materi- members to als, DEARBORN is America’s take action on an important vote. Premier Real Estate Pub- lisher. Members receive up to Browse the member properties to Members also 40% off. find your next deal. Take the have access time to post your investment op- to the latest portunities for other members in Market and site visitors to browse. Data. Special member discounts for members at Avis, Budget, and Enterprise Rentals. VISIT The Member Library is packed and ever growing with pdf ver- sions of entire books, EBooks, Look under Resources - Articles, Forms, and Documents. Discounts Investment News Page 11
  12. 12. Using Assumptive Language Patterns . . . Bill Twyford foreclosure looming over your head. Let’s do the right thing and sign these papers so we can get started, Having a firm grasp on language patterns will help you okay? close more deals. In addition to using embedded com- mands, which are word groups that order you to do some- The underlined words are embedded commands. Embed- thing, you must incorporate assumptive language patterns ded commands are word groups that subconsciously order into your vocabulary. Assumptive language patterns as- people to do something. Feel motivated, is a command. sume the outcome of what you are asking. Work with me, is a command. Do the right thing, is a com- mand. Sign these papers, is a command. When used in a When doing short sales you can ask the bank the same sentence, these commands motivate others to do as you question, two different ways. Read both sentences and say. See if you can think of several commands on your see which one you believe to be more assumptive: own. Write them down, repeat them everyday, and begin  Hi, my name is Bob and I was wondering, do you do using them. You’ll begin to notice that people will become short sales? easier to work with.  Hi, my name is Bob. I am working on a short sale for In order for you sound strong when using assumptive lan- the property located at 123 Elm St. The loan number is guage and embedded commands you must do four things: #34777. Where do I need to fax my short sale package  Pause before the embedded command so that you can go ahead and get this deal approved?”  Speak louder on the embedded command We are assuming the bank is going to say yes to our short sale, instead of wondering if they short sale at all.  Down-swing on the embedded command Let’s look at another example of assumptive language pat-  Pause after the embedded command terns you can use when speaking to homeowners: Practice the above example by pausing, speaking louder,  Are you ready to sign the contract so we can get going, down swinging, and pausing again on the commands. See or do you want to think about it for a few days? how much stronger you sound?  After speaking with me this evening, obviously you are Great sales people assume everything. Every time you ready to get started. Sign the contract, so I can get you have the opportunity to speak with a bank or distressed what you want in the time you need it, won’t that be homeowner, use strong language patterns. As you be- great? come more comfortable with these new language patterns, your sales will increase. Homeowners in distress want to told what to do. They want and need someone else to take over and make decisions The banks like to work with experienced investors. Dis- for them. If you come across as weak or insincere, they will tressed homeowners also like to work with someone they have no confidence in you. The more assertive you are, feel can truly help them. Many homeowners are skeptical the better they feel about working with you. to begin with. If you can give them a sense of comfort, you’ll win them over every time. Perception is reality. If Let’s look at another example assumptive language pat- they think you have power, you do. If they think you’re an terns: imposter, they’re right.  Unless you feel motivated, you’ll never decide to work Many investors worry that if they begin using stronger lan- with me, which means you’ll never get out of your guage patterns that homeowners will know or feel that they situation and that’s not what you want, is it? Imagine are being pushed. Folks, I’d venture to guess that before how great it will feel to sleep again without the stress ofPage 12
  13. 13. Learn How NLP is applied in all Areas ofYour Investing! MARK YOUR CALENDARBill Twyford aka The King of Communication and author of “How to SATURDAY & SUNDAYSell a House When It’s Worth Less Than the Mortgage,” will be hereLIVE and IN PERSON, Nov.3rd & 4th, 2012. He will teach us how to NOVEMBER 3RD & 4THget OUR DEALS ACCEPTED! Bill says that it all boils down to NLP! KANSAS CITYBill is an NLP specialist. He can teach you how to speak the languageof the banks, the homeowners, and the buyers…In other words:He can make you wealthy!You will learn:  What to say to the banks to get your short sale package to the top of the heap  What to say when the bank says no  How to get the bank to work with you even when your home- owners are in bankruptcy  How to get your homeowners to sign contracts on the first meeting  What paperwork to use to make every deal “air tight”  Learn the “little known” Bankruptcy Short Sale  How to negotiate when buying notes  How to automate your communication system  And much, much more!With everyone offering you the next, best, “make a million dollars whileyou sleep” program – people have forgotten that this is a people busi-ness and without the proper COMMUNICATION SKILLS you aredead in the water!Unless you are closing 75% or MORE of your short sales, you mustattend this TWO-DAY WORKSHOP. This is not a sell-a-thon, it isBill Twyford teaching you for TWO SOLID DAYS! Please bring a cal-culator, a good attitude, and come with an open mind. We guaran-tee that you will learn more in these TWO DAYS than any otherworkshop you have ever attended!you read this article, you were not aware that these lan- tion in a way that will produce a positive outcome.guage patterns existed. The average person has no con- Old way: Are you ready to sign the deed?cept of language patterns and will never feel “sold.” New way: Obviously, you are ready to sign the deed,As you drive in your car the next few days, listen to the radio aren’t you?ads. Because radio does not have the luxury of being vis-ual, it must use language patterns to attract customers. Trust me, it won’t sound corny and people will feel confi-Now that you are aware of it, you’ll notice that every ad has dent working with you.embedded commands as well as assumptive language pat-terns.To improve your language skills, start by asking every ques- Investment News Page 13
  14. 14. MAREI Membership Mid-America Association of Real Estate Investors is for real estate investors: new or experienced, beginner level or advanced who live or invest in the Kansas City Metro area. We have a place for in- vestors at all levels of knowledge and experience. Become a member today. If you invest in Kansas City area real estate - or just want to - Mid-America Association of Real Estate Investors has some- thing for you. Please review our membership benefits on page 10 & 11 and our plans below, then Visit our website at to get started now. INTERNET MEMBER INVESTOR MEMBER BUSINESS MEMBER MAREI Member Forum    Online Member Library    Post Properties    Submit Blog Posts    Reduced Entrance Fees    Complimentary Monthly Mtg   Discounts (See list pg 10 & 11)    Member’ s Included 1 1 2 Add Additional Members $50 $50 Pricing $50 Annual $99 Annual $499 Annual Auto Renewal* $45 $90 $450 Quarterly Pricing NA   Monthly Pricing  Service Provider Listing  Ad in Monthly Newsletter  3 Vendor Tables **  * Credit or Debit Card Required for Auto Renewal Discounts, ** 3 Vendor Tables with Annual PaymentPage 16
  15. 15. W WELCOME NEW MEMBERS To the premier trade association representing Kansas City Area Real Estate professionals MAREI continues its growth with a total of 390 members to-date. JOIN NOW ( Members Renewing ◎ DD Ashley: Lawrence, KS ◎ Mark Barrett: Overland Park, KS ◎ Jon B: Kansas City, MO (Since 2009) ◎ Richard Brewer: Belton, MO ◎ Chad Bartlett: Anchorage, AK (Since 2006) ◎ Paul Bedtke: Tonganoxie, KS ◎ Alex Duckworth: Lee ’s Summit, MO ◎ Angela Coleman: Kansas City, KS (Since Since 2011) ◎ Brett Gossen: Carol Stream, IL ◎ Rick Romines: Independence, MO ◎ Mike Halverson: Kansas City, MO (Since 2011) ◎ Dee Hilsinger: Lenexa, KS ◎ Alex Hulett: Kansas City, KS ◎ Brandon Kerk: Kansas City, MO ◎ Franklin Lloyd: Kansas City, MO ◎ Kevin Massey: Prairie Village, KS ◎ Clarence, McLaughlin: Kansas City, MO ◎ Billie Robinson: Independence, MO ◎ Madeline Todd: Overland Park, KSInvestment News Page 15
  16. 16. DRAFT Your Team “The only reason I can conceive of someone want- for referrals. If there is not a REIA group in your ing to invest in real estate is for financial gain, area, find a business trade association and seek which is not an impure motive. Money is what buys out fellow business people. If you are investing in us the freedom to do, well, whatever the heck it is areas that are not in your own back yard, seek out we want to do. But what do we end up doing? We REIA groups in the cities where you are investing. end up working like crazy and not doing the things To find a REIA group in your area, go to for which we’re investing in real estate to begin with.” Alan Brymer Take note that you want to find the successful peo- Let’s face it, in most businesses you can’t do it all ple in the group to ask for referrals. It does not do by yourself and real estate investing is no different. you any good to get a good contact for a contractor You will need property managers, realtors, ac- when the person who referred them has ran them countants, remodelers, appraisers, inspectors, around and around making bids but has never lenders, attorneys, accountants, sign companies, given them an actual rehab job. Likewise it is im- fellow investors, assistants and even coaches. Be portant to only refer professionals who you know a sure you take the times to screen all of your team little bit about and can comfortably say they will do players. Think about it, w work hard to make sure a good job. our buyers are prequalified and we screen our ten- Once you have assembled your team, be sure to ants, but how hard did you scrutinize the last ser- stick with them. Call the Realtor on your team who vice provider you hired. is sending you potential deals rather than calling When you consider that real estate is a business the random listing agent when you are out driving a that can generate substantial profits, you will want neighborhood. Think about it. When you call the to make sure your team members have the same listing agent who represents the seller and buy the work ethic, business philosophy, and morals as house, you do one transaction. Yet you have a you. More importantly you want team members buyer’s agent who has been sending you the best that have a compatible personality. You don’t want deals for the past 6 months and has negotiated people on your team that you just don’t like work- hard for you and closed several transactions. ing with, life is too short. So to start make a list of Which one of these agents is going to remember to the qualities that you need in each of the team call you the next time a hot deal comes up? members so you have something to use in search- ing for the right person for each position on your Also remember that from time to time you will need team. to pull in a pinch hitter when a key team player gets benched and from time to time you will have to re- When starting your search for team members, the cruit new players when an old one can no longer first place to go is the local real estate investor get the job done correctly. By being an active trade association. This is a place where you will member at the local REIA group, you can continue find people who are already successfully investing to connect be scouting for new players to add to in real estate and these are the best people to ask your team.Page 18
  17. 17. For Investors By InvestorsIn this market, you want an agent on your side that has the knowledge, the ability, 1(877) 752-2742 the EXPERIENCE, Lisa Goodner and the resources to help you! Because APIA sells only Real Estate Owned (REO) and Forced Lender insurance coverage, weve become the industry leader in providing comprehensive, affordable coverage to inves- tors, financial institutions and mortgage compa- nies. Our company specializes in Real Estate Owned (REO) and Forced Lender insurance coverage for property investors, servicers, financial insti- tutions and mortgage companies. Standard in- surance companies also turn to us for our ser- Realty Resource vices. 8014 State Line Rd, #210 816-523-4400 HOUSES WANTED  Built After 1950 Minimum 3 Bed, 1.5 Bath On Demand Training Eastern Jackson County 30 Minute Segments MO or Johnson County KS Top Investor Trainers Retail Value $100k-$200k From the Comfort of Your own Internet Connection No Rental $39.00 Training CoursesLocal Cash Buyer Looking for 2 to 4 Houses amonth to purchase, rehab and sell. Money Part- REO & Lease Option Creative Financingners want their money placed quickly so they can Automated Investmentsturn their money fast and make a profit. Can’t do Auctions & Foreclosuresthat with out houses! Bring us a deal! Short Sales Wholesaling 101 Email: kcmoHomeBuyer@gmail.comSubmit Online: www.MAREIU.comInvestment News Page 19
  18. 18. 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. Find it online at Sat Aug 4, 2012: 1 1 a m Where: 1130 W 103rd St, Kansas City, MO Outside Group: Wichita REI: Thu Aug 16, 2012: 7 p m Where: 1635 N Waterfront Pkwy, Wichita Outside Group: KCIG Meeting Tue Aug 7, 2012: 3 p m Sat Aug 18, 2012: 4 p m Webinar - Trust Deeds in Your IRA Blue Springs / Independence Real Estate Wed Aug 8, 2012: 9 a m Investors Weekly Wednesdays - Sub Group Meeting Sun Aug 19, 2012: 9 a m Sub-Group: Where: 1130 W 103rd St, Kansas City, MO Lees Summit Real Estate Investors Sat Aug 11, 2012: 4 p m SubGroup: Mon Aug 20, 2012: 7 p m Blue Springs / Independence Investors Outside Group - Omaha REIA: Where: 18800 E Us Highway 40, Indep. Where: 3534 South 108th Street Omaha, Sun Aug 12, 2012: 9 a m Sub-Group: Wed Aug 22, 2012: 9 a m Weekly Lees Summit Real Estate Investors Wednesdays - Sub Group Meeting Where: 1686 NW Chipman Rd, Summit Sat Aug 25, 2012: 4 p m SubGroup: Woods, MO 64081 Blue Springs / Independence Investors Tue Aug 14, 2012: 6 p m Sun Aug 26, 2012: 9 a m Sub-Group: MAREIs Monthly Meeting: Lees Summit Real Estate Investors Where: 8600 Ward Pkwy, Kansas City, MO Wed Aug 29, 2012: 9 a m Weekly Wed Aug 15, 2012: 9 a m Wednesdays - Sub Group Meeting Weekly Wednesdays - Sub Group MeetingPage 18
  19. 19. 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 phone 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!Investment News Page 23
  20. 20. S.A.F.E. Act Revisited S.A.F.E. Act Overview And Its Effects On Real Estate In- tations so as to be almost useless. vesting The S.A.F.E. Act is intended to curtail the lending abuses The S.A.F.E. (Secure and Fair Enforcement for Mortgage in subprime loans that greatly contributed to the present Licensing) Act is very broad and its rules are almost con- mortgage mess and difficulties in the residential credit stantly being changed by our politicians to hopefully im- markets by more strictly regulating the financial deriva- prove it to become more reasonable to real estate profes- tives that originated from subprime loans such as CDOs sionals than what is allowed in its present form. (collateralized debt obligations) and CDSs (credit default swaps, i.e., insurance for defaults on these loans). But it Key features of the S.A.F.E. Act include: also restricts and governs activities of those who have This Act requires nationwide registration/licensing of any nothing to do with subprime lending and hinders the sale residential mortgage lender who offers or negotiates of residential properties that would normally be facilitated terms of a residential mortgage loan for compensation or by seller financing. In the federal governments attempts gain. As investors, that would be us when we sell using to prevent another recession in the residential markets by seller financing and it would be sellers who sell to us via more strictly regulating lending guidelines, it will most seller financing. likely fail by making residential properties more difficult This Act prohibits the seller financing of a residential to sell by restricting seller financing. By restricting seller property without being licensed as a mortgage loan origi- financing to the people who need it the most, the irony is nator. This includes selling with wraparounds, land con- that the S.A.F.E. Act hurts the very people that it was tracts, seller 2nds, etc. This applies to people who assist intended to help. in this process (investors) and hard money lenders who Ways For Real Estate Investors Use Seller Financing take back real estate as collateral. Without Breaking S.A.F.E. Act Laws Implications Of The S.A.F.E. Act To Real Estate Investors 1. Get licensed as a mortgage loan originator. 2. Qual- And Lenders ify for applicable exemptions from S.A.F.E. Act laws. 3. Most lending that was previously unregulated or loosely Have a licensed mortgage loan originator do all your pa- regulated is now regulated by the S.A.F.E. Act. This in- perwork for seller financing. cludes hard money lending, seller "carrybacks" (seller Possible Exemptions from S.A.F.E. Act Laws Exemptions 2nds), and independent mortgage loan originations. The can be at the federal or state levels. It may be possible S.A.F.E. Act is a federal law. While it imposes a general to also say that something is exempt just because it is umbrella of regulation and requires meeting certain mini- not prohibited by the Act. Recent Dodd-Frank Amend- mum requirements, it is up to each state to impose its ments (federal amendments) seem to say that sellers can own interpretation of the rules set forth in this Act. Most make a maximum of three (3) residential mortgage loans states have already implemented their own interpreta- per year on properties owned by the sellers, i.e., sellers tions of the S.A.F.E. Act. Ironically, the federal govern- are allowed to sell up to three (3) residential properties ments attempt to uniformly regulate mortgage lending with seller financing per year. A restriction is that this has resulted in non-uniform regulations from state to exemption is not allowed is the seller is a contractor who state. Some states, such as Texas, have enacted laws builds the house and then provides seller financing to sell that are even more restrictive than what is in the S.A.F.E. it. Also, seller financed loans in this exemption must be Act itself. Other states have enacted legislation that fully amortizing, i.e., no interest-only loans. Other re- meets just the minimum requirements of the S.A.F.E. Act quirements include that the seller qualify the buyer with a or have legislation that is very open to different interpre- minimum of credit report and income verification on re-Page 20
  21. 21. cord, and the loan must be have a teaching that forming your own non- sider these to still be sales so thisfixed interest rate or a "reasonable" profit organization could help in ob- exemption should be considered onlyadjustable rate that does not in- taining grants. Exemption from the on a state-by-state basis. Somecrease for at least the first five (5) S.A.F.E. Act is another benefit to states will allow assignment of bene-years of the loan term. forming one. ficial interest in a land trust without calling it a completed sale therebyAt the federal level, the S.A.F.E.Act 2. Another exemption is if you are qualifying as an exemption from thedoes not appear to prohibit a balloon selling to a business for non- S.A.F.E. Act. The same is true withpayment or an escalating payment residential purposes. For example, lease-options in that these dontschedule as long as the principal is as long as the rehabbers dont move qualify as being completed sales and,paid down completely by the end of into and live in the properties you as such, are exempt from S.A.F.E.the loan term. flip, these are non-residential proper- Act laws. ties that you can sell to them withAt the state level, registered financial seller financing. This also applies to 6. Equity sharing can also be a "non-institutions and their wholly-owned hard money loans that would use loan" way to have a residential prop-subsidiaries or holding companies these properties as collateral as long erty seller financed to you, or you toappear to be exempt from S.A.F.E. as the rehabbers dont move into and an end buyer, with the effect beingAct laws. Another exemption is if live in them. that of a "carryback" by the are originating non-residential,i.e., commercial or business, loans. 3. Employ a multiple-entity strategy. 7. Sell to a LLC, use seller financingIn contrast to the federal Dodd-Frank Each entity can sell up to three (3) to "carryback" a note from the LLC,Amendments that allow up to three properties with seller financing per and then sell the membership inter-(3) residential properties per year to year so you could use multiple enti- ests in the LLC to an end seller financed without a license, ties to sell residential properties. When done properly, the collateral isstate exemptions appear to allow up Multiple entities for possible use in- not the real estate but rather theto five (5) residential properties in a clude you, a relative of yours, LLCs shares of the LLC become the collat-consecutive 12-month period to be (limited liability companies), corpora- eral for the seller financing.seller financed without a license, but tions, partnerships, IRAs (individual In conclusion, before entering intothis should be checked on a state-by retirement accounts), land trusts, any creative real estate investing-state basis since each state has its living trusts, etc. The use of a land transaction, always have it reviewedown rules and interpretations of the trust or LLC for this strategy should by a real estate attorney to ensureS.A.F.E. Act. be done only after consulting with an you stay compliant. attorney since some states may notOther exemptions from S.A.F.E. Act recognize revocable trusts or single- ------------------------laws at the state level include seller member/family-owned LLCs asfinancing by federal/state/municipal Duncan Wierman is a Real Estate separate statutory entities (e.g.,government agencies, any employee Investor and Educator. Discover how South Carolina, does not recognizeor employer pension plan making to use creative financing to get your single-member LLCs or LLCs thatmortgage loans only to participants, deals closed and make money faster are entirely family-owned as assetanyone acting in a fiduciary capacity without using any of your own protection vehicles).as conferred by the courts, and any- money! Free Proof of Funds, No Payone negotiating residential loan 4. Other exemptions to S.A.F.E. Act to Play!! Details:terms for immediate family mem- rules include selling your personal www.QuickTurnCashFunding.combers. Creative Exemptions From residence, selling to a family memberS.A.F.E. Act Laws (Exempt For Now - (but it is not recommended to marryBut Could Change Soon) someone just to sell a property to him or her), and selling through an 1. Forming a 501(c) non-profit or- attorney since, as of this writing,ganization to provide seller financing attorneys are exempt from S.A.F.E.could qualify for exemption exempt Act rules.since non-profit organizations thatprovide loans to promote education 5. Use of land contracts and ex-or home ownership dont fall under tended escrows but while someS.A.F.E. Act rules. Government states dont consider these to bemoney gurus have been recently completed sales, other states con- Investment News Page 21
  22. 22. 237 N 15th St, $35,000 3 Bed Good rental or rehab Steve Gardner Kansas City, KS 1 Bath opportunity. ARV of Destination Properties Rental Basement Steve.Gardner@homeve $48-50k. Needs a Carport Rehab few repairs, but nothing major 913–461–0402 7315 Nieman Rd $95,000 3 Bed JOCO house in Steve Gardner 1.5 Bath Shawnee, new roof, Destination Properties Shawnee, KS Rehab Basement foundation and exterior Steve.Gardner@homeve 2 Car Gar paint. Must move it. Bring any offer. 913–461–0402 5809 W 70th St $89,000 3 Bed $30—$35k Rehab. Steve Gardner 1 Bath Great Overland Park Destination Properties Overland Park, KS Rehab Crawl Steve.Gardner@homeve ranch, good schools, strong resale value, Rental needs help 913–461–0402 4407 Genessee St $99,000 3 Bed Double Lot. West- Steve Gardner 1 Bath port / Plaza. New Destination Properties Kansas City, MO Rehab 2 Car Steve.Gardner@homeve Roof, Repaired Foun- dation. 913–461–0402 2 Houses Under $10K 3 Bed Huge Discounts 2 Makeba Hart 2 Bath house for under 10k Virtue Investments, LLC Kansas City, MO Each—Need Make me an offer!!! Rehab 816-665-0491 3829 Benton Blvd $27,500 3 Bed Excellent curb appeal Christoph Becker 1.5 Bath – This 3/1.5 home is Blue Print Properties Kansas City, MO Rehab Basement situated on the dis- 816-419-1165 Rental tinctive “Benton Blvd” in KCMO 8 Property Package $22,500 Assorted Offers avg Net Yield Christoph Becker of 23.82%. Re- Blue Print Properties Kansas City, MO Each Property habbed & Rented. 816-419-1165 Long-Term Tenants. 3524 Askew Ave $14,000 3 Bed 75% Completed, lots of Christoph Becker 1 Bath potential. New plumb- Blue Print Properties Kansas City, MO Rental Fixer Full bsmt ing updated electrical, new roof. 816-419-1165Page 22
  23. 23. MAREI Member 1812 E 70th St $39,500 3 Bed Renovated Section 8 Christoph Becker 1 Bath Turn Key Kansas City Blue Print Properties Kansas City, MO Rental Full Bsmt Investment Property 1 Car Gar 816-419-1165 offering a proposed NET ROI of 21% 1810 E 70th St $39,500 3 Bed Renovated Rental—Net Christoph Becker 1 Bath ROI 20%. Turn Key. Blue Print Properties Kansas City, Rental Full Bsmt 1 Car Gar 816-419-1165 $825 Rent 3711 E 68th ST $42,500 4 Bed Section 8 Turn Key Christoph Becker 2 Bath Rental, Net ROI 22% Blue Print Properties Kansas City, MO Rental Full Bsmt $950 Rent 816-419-1165 3707 E 68th St $35,000 3 Bed Rent Ready, Fully Re- Christoph Becker 1 Bath habbed, Proposed Rent Blue Print Properties Kansas City, MO Rental Full Bsmt $800, Proposed ROI 21% 816-419-1165 No Address $94,500 3 Bed Full ranch home avail- Phillip Rich 2 Bath able for Lease Option Go Mav Realty Lease Option Garage 402-598-6696 No Address $49,000 3 Bed 2 Story Home—lease Phillip Rich 2 Bath option contract avail- Go Mav Realty 1 Car able 402-598-6696 1340 S Emery St $33,000 3 Bed Rental Potential Chad 1 Bath Home Remedy KC Independence, MO Rental HomeReme- Rehab 913-735-5598 5733 Bales Ave $15,000 4 Bed Swope View area. 4bd 1 Makeba Hart 1 Bath ba Estimated NOI Virtue Investments, LLC Kansas City, MO Fixer $486.29 816-665-0491 RentalInvestment News Page 23
  24. 24. Using the Member Website Post a Property for Sale We do have a few rules here that we ask that you abide by. We ask that you only post properties that you (1) own outright (2) control by a contract (3) have a listing agreement to market or (4) otherwise have an ownership interest in. If you have a property you might be able to buy that you are fishing for offers before you put under contact, we would advise against marketing it until you have a valid contract. Our property market tool on the site is a work in progress. It is a free Wordpress Plug in called WP Property and it does have a few kinks we are trying to work out. When you post to the site, the property appears on the MAREI site and currently it is manually reposted to our social media sites, but this does not always happen because sometimes it just does not work. If you happen to be an expert in Wordpress and WP Property and could offer us any pointers in improving how this tool works on our site, we would welcome the assistance. To post a property: Step ONE: Log in and go to the Dashboard: Step TWO: click on Properties Step THREE: You can click on All Properties to see everything that is currently in the system or Add Property to add a new property Step FOUR: Click Add Property Step FIVE: Enter a Title Step SIX: Enter information in the big box—you can format this information, embed video, embed photo albums and use HTML. If you have no idea what that means, just type a paragraph about your property in this box. Typing something is important even if it is one or two sentences because when the property is further posted to Facebook for example, if you type nothing then Facebook will pull into the linked post info about MAREI rather than info about your property. Step SEVEN: Fill in all the boxes under the “General Information” Section that you have the answers for. Keep in mind if you are a Realtor listing for someone else, you must in- clude your Broker Company. In this area in the address box, enter the full address including city, state and zip, so the Google mapping will work. You will find a couple of greyed out boxes that relate to ad- dress that you cannot type in. Don’t worry about it. Also be sure to put a summary of the property in the tag line box. When the property ap- pears on a page with other properties on a summary page the tag line is what appears to tell people about the house, it should have the basics of the house to make the viewer want to click to see more. Also in this area, if you have the property posted on your own website, put a link to your website or a direct link to the property in the Website Box.Page 24
  25. 25. 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 816-503-4671 More Information . . . More Confidence The best place on the entire planet to buy kitchen cabinets. We Have The Best Prices Everything Is In Stock More Profits Tenant Screening We Ship Fast Pre Employment Screening Free Design Help Contractor Screening Collection Services Discounts for MAREI Members Josh Burns 1-877-484-4268 816-436-0085Investment News Page 27
  26. 26. MONDAY AUGUST 6TH, 2012 KANSAS CITY, MO Single Family HomesPage 26
  27. 27. The Mid-West Real Estate Investors Expo Mingle With Vendors, Receive FREE Gifts, Learn from the Best! Sponsored by Realty411/reWEALTH magazine Mingle with Vendors/Brokers/Wholesalers Learn About TOP NATIONAL Markets: Success in Real Estate Can be Yours this Year, Let Us Show You How. Network with Local and Out-of-Town Investors, Area Business Owners & Real Estate Industry Leaders. GUEST SPEAKERS Marck Delatour Tim Norris, SBD Housing Solutions, formed in President of National Real Estate In- 2003 to capitalize on the growing surance Group and Affinity Group number of financially distressed Management is an industry- homes in the Kansas City area. recognized investor, speaker and Since that time, SBD has grown educator. He is Treasurer of the Na- to become the premier supplier of tional REIA and is a member of theirforeclosure and pre-foreclosure homes in the Industry Partner Council. Tim is an active real es-Jackson County Area, attracting investors from tate investor and resides in the Kansas City areaall over the world. with his wife and 2 daughters. Lloyd Segal, Quincy Long America’s leading foreclosure expert CEO of Quest IRA, Inc., a self-directed and author of “Get Started as a IRA third party administrator and li- Foreclosure Investors”. If you’ve censed Texas attorney since 1991 who always wanted to be a foreclosure specializes in real estate and is the co investor but didn’t know how to get author of “Real Estate Investment Us- started, this is the workshop for you. ing Self-Directed IRAs and Other Re- Lloyd will share how to get started tirement Plans” Dyches Boddiford andmaking money buying foreclosures. George Yeiter. Quincy is also an active real estate investor. Hilton Garden Inn Independence RSVP: FREE VIP Passes 19677 East Jackson Drive Hotel Phone: 816-350-3000 Or call 310-994-1962 Independence, MO 64057 Email: Saturday, August 25, 2012 Find out about the Bus Tour on Sunday the from 9:00 AM to 4:00 PM (CT) 26th (Prices: $95 for 1 / $145 for 2)
  28. 28. Invest Some Time in your Business Real Estate Investor Meeting Mingle With Vendors, Receive FREE Gifts, Learn from the Best! Sponsored by Mid-America Association of Real Estate Investors Mingle with Vendors/Brokers/Wholesalers/Industry Leaders Learn a LOCAL INVESTOR’s Business Model More and More Investors are leaving the stock market and turning to Real Estate With record low prices and interest rates The Returns can be Phenomenal Learn How to Grab Your Piece of the Action GUEST SPEAKER Marck de Lautour formed SBD Housing Solutions in 2003 to capi- talize on the growing number of fi- nancially distressed homes in the Kansas City area. Since that time, SBD has grown to become the pre- FREE Issue mier supplier of foreclosure and pre first-foreclosure homes in the Jackson County Area, 50 peopleattracting investors from all over the world. Findout Marck’s model, where he finds deals, privatemoney, and partners. Marck’s approach allowshim to tap into the “Anxious Money” that is leavingthe stock market and turning to Real Estate. Career Education Systems This is the Monthly Meeting for Mid-America Ward Parkway Shopping Center Association of Real Estate Investors. 8600 Ward Pkwy : Kansas City, Mo Door Fee $25 at Door / $15 Online for Non-Members & Internet Members. Those Tuesday, August 14, 2012 who have joined at Investor or Business levels from 6:00 PM to 9:00 PM receive complimentary entrance.