The Investment News: January 2011 for Real Estate Investors


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

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The Investment News: January 2011 for Real Estate Investors

  1. 1. SOCIAL MEDIADIRECT MAIL TARGET MARKET BANDIT SIGNSMID-AMERICA ASSOCIATION OF REAL ESTATE INVESTORS Investment News NETWORKING : EDUCATION : COMMUNITY January 2011 Run with Right Crowd: Are you surrounding yourself with the right people? Page 8 Key to Success: One of the first keys to success is to learn your market! Page 10 Are you Paying Too Much: Why you should have a Word Press Website! Page 14 First Investments: Find Wholesale Deals Page 16 Live Workshops: Beginner Fast Start Pgs 19-21 Buying REO Properties Marketing for Motivated Sellers My First Website Using Social Media
  2. 2. Marketing Mastermind Interviewing Our Panel Monthly Meeting - Tuesday January 11th JD Asbell We are interviewing our Guest Real Estate Investor with Hom- Speakers to find out: eVestors and CityScape Proper-  Best Ways to Market for Mo- ties. Buying, Renovating, tivated Sellers Wholesaling, Renting, and Fi-  Best Ways to Market to find nancing Investment Property. Homes Find him online at:  What works, what doesn’t  Estimated Costs Rick Zeitun Buying and Renovating to Retail If you want to ramp up your business Exceptional Homes in the Kan- in 2011, you need to ramp up the mar- sas City Metro Area. keting. Bring something to write on Find him online at: because you are going to have a lot of notes! Frank Malvagna Buying to Hold and to Whole- See details page: 23 sale since 2004. Find him online at: Interested in learning more about creative fi- nancing? Be sure to at- November2Meeting tend the day Bootcamp February Meeting with Don DeRosa & Pete Speed Networking Youngs, they will talk Partnering On Deals about creative financing! Back by Popular Demand And be sure to watch for upcoming meetings of Spencor Cullor MAREI’s new subgroup.Page 2
  3. 3. Contents MAREI News In This Issue January Meeting 2 MAREI Staff 5 Notes from Director 6 Member Pics 7 Run with the Right Crowd 8 Know Your Market 10 FHA Seasoning 12 Why You Need a Wordpress Website 14 Beginner’s Guide to Finding Wholesale RE 16 Economic Update 18 Live Workshops (3 pages) 19 MAREI Member Tool Boxes 21 Calendar 22 Investment Opportunities 24 Real Estate Marketing 26 Features ‫ ׀‬January 2011 Are you sur- Start your Advertiser’s Directory rounding 2011 Educa- Commercial Sub Group 9 REO / Motivated Seller 20 yourself with tion with our 5 live training Te-Tee Light 11 Website / Social Media 21 the right peo- events this 8 ple. The peo- ple you asso- 19 month. Fast Start to Suc- Constant Contact Rockstar Investor 13 15 Investment Property kcmoHomeBuyer 24 25 ciate with can cess is our foundation Accurate Title 15 Eric Deeter 25 affect your workshop on Free Trial Web Site 17 Home Depot 25 success! page 19. Fast Start to Success 19 Realty Resource 27Investment News Page 3
  4. 4. MAREI Notes Contact Information PO Box 8685, Prairie Village KS, 66208 Phone: 816-523-4400 x 222 Fax: 816-523-4440 Our Mission Statement Mid-America Association of Real Estate Investors is dedicated to promoting ethical real estate in- vesting and to protect and promote the best interest of our membership through educational and networking opportunities as well as community, legislative and public relations. Legal Disclaimer MAREI does not exist to render and does not give legal, tax, economic or investment advice and disclaims all liability for the action or inaction taken or not as a result of communications from or to its members, officers, directors, employees and contractors. Each individual should consult his/her own counsel, accountant and other advisors as to legal, tax, economic, investment and related matters concerning real estate and other investments. Content Disclaimer The views and opinions expressed by authors of articles contributed to this newsletter do not neces- sarily reflect those of the association, the board of directors or the staff. Advertise in the Investment News Rate Schedule Size Non-Member Member Business Associate Full Page $175 $140 $115 1/2 Page $145 $105 $85 1/4 Page $75 $65 $50 1/8 Page $55 $35 $25 A 10% discount is given on ads pre-paid for 6-12 months. Any changes to a pre-paid ad will incur a minimum charge of $20. The deadline to submit ad copy is the 1st of each month. All ads must be prepaid. Contact to verify ad format can be accepted. PDF preferred. There is an additional charge of $25 to typeset a business card ad or 1/4 page ad layout, $60 for a 1/2 page or full page lay-out. Opportunities also exist for advertising on Call 913-208-3544 for more information. Email ad copy to Mail payment to MAREI, PO Box 8685, Prairie Vil- lage, KS 66205 or request an online payment for to use credit or debit card.Page 4
  5. 5. MAREI StaffKim Tucker 816-523-4400 Don Tucker 816-523-4400 Steve BurnsDirector President Audio cashflowtreasures@gmail.comBertie Janssen John Welchert Larry PratoMeeting Ambassador Meeting Ambassador Commercial 816-268-3849 913-227-4693Dan Goodwin 913-642-5218 Shelda Goodwin Frank JanssenMeeting Ambassador Meeting Ambassador Creative Financing 816-865-6514 Investment News Page 5
  6. 6. Director’s Notes Here I sit working very hard to recreate this newsletter. you are a wealth of knowledge on all sorts of subjects You see I have been a bit under the weather and de- related to real estate and the management of small cided to put off completing this publication until Satur- business. If you have articles you have already writ- day. On Friday Night I played with some photos and a ten that you would be willing to share with us for publi- new program and low and behold I wiped out every- cation in the newsletter or on the blog, please let me thing having to do with all newsletters ever created on know. Or if you would like to try your hand at writing a my computer as well as all the stuff I had saved to go few articles, well send them over. into this publication. I may not publish right away, but rather save them in So I quickly googled up a way to recover lost files. my file for when they fit into the theme of the newslet- Yes, I even cleaned out trash this morning before get- ter and I can save a ton of time. ting started. So I have been able to recover some Heck, I would love to find someone who could do the files, but so far, the file that said January Newsletter entire newsletter for me, articles, advertisements, and 2011 has not came up. publication online. But sorry the pay is not all that So at this point I think it might be a good. good idea here to ask you all for your The right person might be able to partner with MAREI help. You see, assembling the news- to turn the newsletter into a money making publication letter and the blogs is really not all and as I heard at the December Networking. . . We let that hard if I have material to work you eat what you kill. So if you can kill enough, then it with. If I have a file of ready written might become a paying gig. We are open to ideas. articles that I can go to and select articles to place in the newsletter its more of a fill in the blanks. Sort of Kim Tucker like a children’s color book. Just fill in the lines and presto . . . Instant Director of MAREI newsletter. But when I have to search online for articles or worse And boy do we need to go to the cloud. Maybe we yet, type up my own articles. Well then it can get a bit would not loose everything with two or three key time consuming. strokes. So here is my plea to the membership . . . Many of The right person might be able to partner with MAREI to turn the news- letter into a money making publication and as I heard at the December Networking . . . “We let you eat what you kill.” . . . So if you can kill enough, then it might become a paying gig! We are open to ideas!Page 6
  7. 7. Get Involved We are looking for a volunteer to help us with taking photographs at the monthly meetings. If you have a digital camera and can attend the monthly meetings regularly, this would be a great way to get to know the members. Volunteers receive discounts on Membership and or Outside Training Events. For more information on becoming a volunteer, Contact Kim Tucker, Director, At or call 913-208-3544Investment News Page 7
  8. 8. Investor Mindset Run with the Right Crowd In order to stay focused on your business Don’t underestimate the power of this. It is and your success, you need to filter out the hard to ignore what the people closest to noise. you are saying. Hanging out with the right people is a key Counteract it by finding groups of like- component to this. minded individuals and reading books that reinforce what you are trying to accomplish. If you run with the wrong crowd, they will bring you down. Negative people radiate Associations related to your industry are and spread their negativity. Misery loves great places to meet like-minded people and company. You need to avoid being sucked reinforce your mission. Seek out and read into the negativity trap. books that reinforce the goals you are trying to accomplish. Everyone knows someone who always has a storm cloud over their head. Someone Be Careful Who You Listen To whose parade it is always raining on. Dis- As a general rule, never take advice from tance yourself from these people. It is just someone who hasn’t done or isn’t doing healthier for you physically, mentally, and what you want to do. business-wise. Think about that. Think about how many Not everyone around you will understand people’s advice that eliminates. the struggles you go through as an entrepre- neur. Especially if they are not an entrepre- Why should you let someone who hasn’t neur themselves, they are unlikely to under- done what you want to do discourage or talk stand the mindset and commitment neces- you out of doing it? What qualifies them to sary to succeed. advise you? When you are first starting out, it is often dif- Adopt this policy and watch what happens. ficult to find people of like-mind. You just At the very least, it will clear the negative may not know many people who share your dream-stealers out of your decision making passion for building a business and chang- process. It will then motivate you to seek out ing their lives. the types of people you should be hanging out with and getting advice from. Family, friends and co-workers will let their (Continued on page 9) fears and jealousy attempt to hold you back.Page 8
  9. 9. (Continued from page 8)Tom Zeeb has been featured byCNBC, The Washington Post, Kiplin-gers Magazine, The Washington Ex-aminer, Financial Lifeline Radio andNational Real Estate Investors Asso-ciations Magazine among others. Heis the President of Capital Area REIA,the Recipient of the National REIA"2010 Honors of Merit" and the "2009Award of Excellence" for Best Real The Right CrowdEstate Investor Association! Capital Successful Active Real Estate Investors & LandlordsArea REIA serves the Greater Wash- Real Estate Investment Associations (REIAs)ington DC Metro Area. Check and Business Trade Associations & Networking Successful Positive Motivated Peoplefor more information. The Movers and Shakers of your Industry Mid-America Association of Real Estate Investors Date & Time: Wednesday January 5th & 19th 5:30—7:00 pm Location: Panera Bread 103rd & State Line Cost: No Charge to Attend Please support Panera Investment News Page 9
  10. 10. Investor Success Know Your Market If you want to invest in your local area here property. Talk to the owner, pick their brain a are some very effective steps to learning and little about what their main strategy is for prop- becoming an expert in that market. When I erty in that area, and if there is any way you started investing in real estate I knew nothing may be able to do business with them in the and I was flat broke. I had to learn my market future. For example, they might prefer turn- by getting out in it. These are the steps that I key rental properties. If your main strategy is took and within 3 months of getting started I to buy, fix, and sell the property as a turn-key was closing deals. These steps have helped rental to other investors, youve just added a me learn my market where I have since done buyer to your list. Also you may even meet a many, many deals. Here they are: contractor or working crew that is looking for more work after they are finished with that Drive the Neighborhood particular house. Keep their name and num- First, drive the neighborhood. I dont mean ber for future reference and after a while this once either. Dont be afraid to put a few miles type of networking will give you lots of con- on your car and get to know what is going on tacts that can be very valuable to you. in that neighborhood. Find out which houses are for sale and for rent. Talk to the real es- Call the "I Buy Houses" signs that you see tate agents that have a lot of listings in the in the area. area and call the FSBOs. Ask them ques- Find out what these investors like about the tions, such as what is the market like in this area and get to know who is active there. Ask neighborhood? For example, is it mostly them how the market is in that area also. Most owner occupant, rental properties, or a 50/50 of them will be wholesalers. Get on their mix of both? How long has their house been buyers list and network with them. Add their for sale? How much are you renting that names and numbers to your contact list as house or unit for? Is it newly remodeled or in well. You may be able to buy a property from need of repairs? them or sell them a property after you are up and going in that area. Talk to other investors and rehabbers in the area. Join your local REIA. As you are driving by, if you spot a rehab There are Real Estate Investor Associations crew working on a house get out of your car in just about every city across the country. (Continued on page 11) and talk to them. Ask them who owns thePage 10
  11. 11. This is a great way to get more learn your market. Then you willeducation on real estate and be giving yourself every effort tonetwork with other investors. succeed in investing.You will be amazed how much This article is written by Frank Mal-other investors are willing to vagna. Frank began wholesalingshare their experience and ex- houses in the summer of 2004 afterpertise with you at these returning from active duty in the Ma-groups. Network and get to rine Corps. Frank wholesaled his firstknow these investors well. Find 5 deals while renting an apartment and never owning his own house.out who is investing in your de- Wholesaling houses is still one of hissired area and what is working main strategies in real estate. You canfor them. These contacts are get access to view his available prop-particularly valuable since they erties at operate in your desired Frank also teaches new and experi-neighborhood of business. enced wholesalers how to wholesale in todays market. You can downloadDo not be afraid to network with Sample Squeeze Page his free ebook titled the "The 12 Big-other investors. They can often gest Mistakes Wholesalers Make" and Contact Collectionbe a great asset to you and you read his blog with several wholesaling From Frank’s Websiteto them. I have met and done tips by going to http://lots of deals with many other wholesalementor.comreal estate investors. Some ofthe best deals I have done have TE-TEE LIGHT ELECTRICAL SERVICESbeen by partnering with other Keeping you ―In-Powered‖ withinvestors. Superior Electrical Service!If you follow the above steps  FREE Estimatesyou should learn your market  FREE Consultations on Non-Emergencyvery well and get to know other  24-hour Same Day Emergency Serviceinvestors that are active in thatarea. You will no doubt find that Licensed, Insured, Bondedsome exit strategies are better Serving Kansas & Missourithan others in that area andwhich ones are working well. George Z. Bai, Sr. - OwnerYou will also learn property val- Office (816) 356-1870ues and rental rates. Then Cell (816) 210-4710eventually you wont need a TeTeeLight@gmail.comrealtor to run the comps for youon every deal. Take action and Investment News Page 11
  12. 12. Bill Ladewig Seasoning The Flip Rule . . . FHA 90 Day Flip Rule Suspension is set transaction. Some ways that the lender can to expire February 1, 2011 ensure that there is no inappropriate collusion or agreements between parties is to assess The FHA 90 day flip rule was temporarily sus- and determine the following: pended for one year for all sellers effective February 1, 2010. · The seller holds title to the property; We all hope the waiver will be extended how- · LLCs, corporations, or trusts that are ever, investors should prepare for the worst serving as sellers were established and and assume the waiver will expire in February are operated in accordance with appli- 1, 2011. If you are presently a party to a flip cable state and Federal law; sale transaction check with the buyers lender · No pattern of previous flipping activity for their flip rule policy. exists for the subject property, as evi- In anticipation of the waiver expiring, most denced by multiple title transfers within lenders ceased accepting applications on a 12-month time frame (chain of title homes subject to the FHA Flip rule. information for the subject property can be found in the appraisal report); The FHA 90 day flip rule was suspended on February 1, 2010 and the suspension expires · The property was marketed openly and February 1, 2011 fairly, via MLS, auction, For Sale by Owner offering, or developer marketing The text of HUDs press release is repro- (any sales contracts that refer to an duced below: "assignment of contract of sale," which Pursuant to §7(q) of the Department of Hous- represents a special arrangement be- ing and Urban Development Act (42 USC tween seller and buyer may be a red 3535 (q)) and 24 CFR 5.110, I hereby waive flag). §203.37a(b)(2) of the regulations. The regula- In cases in which the sales price of the tions at 24 CFR §203.37a(b)(2) provide that a property is 20 percent or more over and mortgage for a property will not be eligible for above the sellers acquisition cost, the waiver FHA insurance if the contract of sale for the will only apply if the lender: purchase of the property is executed within 90 days of the prior acquisition by the seller, and Justifies the increase in value by retaining in the seller does not come under any of the spe- the loan file supporting documentation and/or cific exemptions that apply to the 90-day rule. a second appraisal which verities that the seller has completed sufficient legitimate reno- This waiver is limited to home sales meet- vation, repair, and rehabilitation work on the ing the following conditions: subject property to substantiate the increase All transactions must be arms-length, with no in value or, in cases where no such work is identity of interest between the buyer and (Continued on page 13) seller or other parties participating in the salesPage 12
  13. 13. performed, the appraiser pro- Mortgage (HELM) for Purchase This revised notice on the FHAvides appropriate explanation of program. property flipping waiver exten-the increase in property value sion corrects the date in the last Flip Rule History before Febru-since the prior title transfer: and line of the notice that was pub- ary 2 Waiver lished on 5/15/09:Orders a property inspection and Several years ago FHA institutedprovides the inspection report to "Federal Housing Commissioner an 90 day flip rule to halt whatthe purchaser before closing. Brian D. Montgomery has ex- they felt were investor foreclo-The lender may charge borrower tended the temporary property sure abuses. Initially the 90 dayfor this inspection. The use of flipping waiver to May 10, flip rule required anyone sellingFHA-approved inspectors or 203 2010. Under the waiver, homes a home with FHA financing to(k) consultants is not required. that were foreclosed on and are wait 90 days before they couldThe inspector must have no in- being sold by the mortgagee or accept a purchase contract. Theterest in the property or relation- on its behalf may be purchased 90 day Flip Rule only applies toship or with the seller, and must by FHA borrowers without regard FHA loans.not receive compensation for the to the 90-day seasoning period.inspection from any other party In 2008 FHA made a temporary The waiver does not apply to en-than the lender. Also, the inspec- exception for Bank owned fore- tities that purchase foreclosurestor may not compensate anyone closures allowing banks to sell either singly or in bulk for resale.for the referral of the inspection. their REOs with FHA financing Subsequent sales of such prop-Additionally, the inspector may before the 90 day limit. The ex- erties will continue to be subjectnot receive any compensation for ception was to help sell the large to the standard regulatory re-referring or recommending con- number of recent foreclo- quirements.tractors to perform any repairs sures. The initial 90 day flip rule The waiver expires for all loansrecommended by the inspection, expired in 2009and may not be involved with for which the sales agreements This rule only applies to Banksperforming any repairs recom- were signed by the seller and selling Foreclosed property, allmended by the inspection. other home sellers must continue buyer on or before May 10,At a minimum, the inspection to wait 90 days before they can 2010. "must include: accept a contract on a home they Current lending updates can be found plan to flip when their buyers at: · The property structure, wish to use FHA financing. including the foundation, This article is reprinted from Bills Ac- floor, ceiling, walls and In May of 2009 the Flip Rule tive Rain Blog. You can reach bill in roof; was extended only for his office at 866-204-9733 · The exterior, including banks. Below is a copy of the siding, doors, windows, notice extending the 90 Day flip appurtenant structures rule to May 10, 2010 such as decks and balco- nies, walkways and drive- ways; MAREI has part- · The roofing, plumbing nered with Constant systems, electrical sys- tems, heating and air con- Contact this month ditioning systems; to bring you a Cal- · All interiors; and All insu- endar Packed full of lation and ventilation sys- tems, as well as fireplaces Training Webinars and solid-fuel-burning ap- on Email Marketing. pliances.The waiver is limited to forwardmortgages, and does not applyto the Home Equity Conversion Investment News Page 13
  14. 14. Josh Schoenly You Need A Wordpress Site 7 Reasons Why Investors Need a Wordpress The same investor who was paying $300 for Website hosting was paying $100 an hour every time WordPress and Real Estate are a match he needed something on his site edited. made in tech marketing heaven if you ask With wordpress, learning to create or edit me. WordPress’s flexibility, seo elements, content is generally fairly simple. Sure, there and relative ease of use, coupled with an un- are things that can be complicated for most believable community of users (and corre- real estate investors, but usually finding free sponding online documentation), have al- or inexpensive wordpress help is no big lowed it to become the world’s most popular deal. (Try typing ―need wordpress help‖ over content management system. And real estate at to see what I investors in droves are using wordpress mean). every day as the backbone for their entire 3. WordPress Plugins online web marketing efforts. Bottom line. WordPress plays with every- But there seems to be a relative low number thing! Want to embed a youtube gallery with of investors using wordpress to build web en- your latest posts? No problem. How about tities. Instead of going into why this is so, I image links to all your social profiles. No think it might be better to illustrate the rea- problem. IDX integration. Yeah, usually not sons why most real estate investors should a problem. Lead capture forms? Free. Just consider scrapping their current site in favor Sold Stats? Free. (With Zillow or similar inte- of something wordpress based. gration.) Google Maps, Analytics, Chat, etc. ere Are 7 Reasons Why Every Serious You bet. Lots of free toys play nicely with Real Estate Investor Needs a Wordpress open source, free wordpress. Website: 4. Inexpensive Design 1. Save Money on Hosting There are thousands of wordpress tem- I recently had a conversation with a real es- plates out there any of which would work tate investor who was paying one of the fine with real estate. Now of course some reputable real estate web vendors $300/ are better than others, and I have my favor- month to have his site hosted. Ouch! With ites but the bottom line is this: You don’t wordpress, hosting can be relatively cheap. need to pay a designer 2, 3, 5k just to get ($7/month with bluehost or hostgator would your website skinned with wordpress. And if probably suffice for most investors.) you don’t like your first attempt, changing themes is an unbelievably painless process. 2. Save Money on Website Maintenance 5. Search Engine Optimization FeesPage 14
  15. 15. WordPress is search engine Meaning this, if you need some- ―short sale‖ website to drive lo-friendly right out of the box. thing special for your real estate cal distressed property ownersThere are some awesome investor based website it will be to, we could build you the ―site‖plugins and tweaks that can se- easy to find someone who can in about 1 hour. Why? Weriously enhance the search en- do it, if you can’t or don’t want wouldn’t really be building you agine friendliness of your word- to. new site. With wordpress, ag-press site, but stuff that a lot of 7. WordPress is Extremely gregating content onto a singleprofessional SEO’s would page, with a customizable Conducive to the Creation ofcharge thousands for can be header, nav, and sidebar – all Neighborhood, Area, & “Onehad with wordpress pretty much under the same install and do- Type Offer” Style Niche Sec-off the shelf. (That said, you still main — is no big trick! tions.should pursue the tweaks I’ve Want your own site – we havealluded to here.) hat do I mean here? Well, let’s can help you: click here put it this way, if you came toWordPress Has Become Sort- me and said you needed a newof a Universal Language PRIVATE LENDER Accurate Title Company Locally Owned & Operated ―When You Need Timely, Private Money Lender Top-Quality Service . . . ―  Owners and Loan Policies We are a Direct Lender, not a Broker  Endorsements  Ownership & Encumbrance Reports  Rehab Loans up to 100% of Costs  Foreclosure Reports  Up to 65% of the After Repaired  Ownership Information Value  Tax Information  Terms from 30 Days to 1 Year  Buyer’s Closing Services  Rates from 12 to 16% Interest Only  Seller’s Closing Services  Lender’s Closing Services  Points from 6 to 10 in Lieu of Equity  Recording Services  Appraisals Required  Funds Disbursement Services Draw Requests on Wed. Paid on Friday  1031 Exchange Services  Special Requests Jeff Basler 913-338-0100 phone 913-221-9080 913-338-0107 fax Investment News Page 15
  16. 16. Lex Levinrad Beginners Guide To Finding Wholesale Real Estate An often overlooked approach by beginners is to utilize the classified ads both online and Many beginning real estate investors make the offline. mistake of starting out with foreclosures. Just about every new bird dog that I have trained Search for words like ―owner financing‖, ―owner asks me about or some other will carry‖, ―must sell‖, ―make offer‖, ―any offer foreclosure service. considered‖, ―handyman special‖, ―needs work‖, ―investor special‖ and so forth. You need to be Typically you pay a monthly fee to use these looking for distressed sellers. When I first started services and then you get a list of foreclosures looking at the classifieds it took less than one in your area. The idea is that you will find a month of trying out this approach for me to find a ―foreclosure deal‖ and be able to make some wholesale deal. It was not one house but three money with it. houses which were located in Port St Lucie, This approach is how I and many other people Florida. All of these houses were for sale by a started out in this business. When I first started wholesaler that had signed a contract to pur- out, I had subscribed to ―Real Quest‖ which cost chase all three houses and wanted to ―flip‖ the over $300 a month for Palm Beach County, Flor- contract. The houses were worth around ida. I used to visit homeowners at their houses $140,000 but had sustained some roof damage and talk to them about their foreclosure and how from one of the hurricanes. I agreed to buy the I could offer to help them. The most common houses for $95,000 a piece and after paying for scenario was a homeowner that wanted to avoid the roof repair and some basic cleanup I figured foreclosure and was willing to ―walk away‖ from there would be around $90,000 in equity. We the property. still own those houses and they have been great The problem with this approach can be sum- rentals. marized by the following: You can also advertise your services to potential  Too much competition – I was not the only sellers by placing a classified ad in the newspa- one knocking on their door. per. Simply place an ad that says ―I BUY  Too slow – someone got to them before I HOUSES FOR CASH‖ with your phone number. did. The phone will start ringing immediately and you  Uncooperative and hostile homeowners – might get as many as 3-5 calls per day. wouldn’t you be if every one was banging on You might find that this soft sell approach will your door? work better for you. The home owners will be  Hard sell – approaching homeowners in calling you so psychologically you are in the foreclosure is a very aggressive tactic. drivers’ seat. They are calling you because they  Home owners are often not home during the want your help. They want you to buy their day since they work. house. It is up to you to decide if you want to or if it is even feasible. You can write down the ad- Guide to Finding Wholesale Deals dress and pull up the ―comps‖ (comparable (Continued on page 17)Page 16
  17. 17. sales). Then you can give them a  Capture pages where you the difference between finding aballpark idea of what you could have sellers come to you by deal and not finding a deal. If youprobably offer for the house finding your capture page on made $5,000 on an assignment(usually around 65% of after repair the internet...(This is the best fee that would pay for a few yearsvalue). At that point the home- and most cost effective way to worth of all of the above advertis-owner would usually either tell you find sellers). ing. If you are serious about be-that they were not interested (no When you have sellers coming to ing a real estate investor thendeal) or they would ask you to you, you have all the control. You you should be prepared tocome and take a look at their decide which deals are worth pur- spend some money advertisinghouse (deal). suing and which are not. You won’t yourself and your services to be dealing with hostile homeown- sellers.At that point, once you have the ers, rather with people looking for Lex Levinrad has been a full time dis-house under contract you can de- your help. Be honest and sympa- tressed real estate investor sincecide whether or not you want to thetic to their needs and let them 2003. He has been involved in buying,keep the house yourself or assign know if you cannot help them. rehabbing, wholesaling, renting, andthe contract to another buyer for a Don’t let them think that you will selling hundreds of houses in Southfee. buy their home if you will not. Florida.In addition to classified ads, I Lex is the founder and CEO of thehave found the following to be You also need to make sure that Distressed Real Estate Institute, whichvery useful: you are aware of local new laws trains beginning distressed real estate Car Magnets – "We Buy such as CS/HB 643 and CS/SB investors about how to find wholesale Houses For Cash" and your 992 which are now part of Florida real estate deals. He specializes in law. If you buy a house from a buying foreclosures and bank owned phone number. REO homes and offers private men- Bandit Signs – "We Buy homeowner in foreclosure and they claim after the fact that they toring, bus tours, boot camps and Houses For Cash" and your home study courses for real estate phone number. didn’t know that they would lose investors. Postcards – Mailed to your tar- their home then you will have a big problem. Make sure that you have Lex Levinrad is an accomplished na- get area or zip code. tional public speaker and has shared Letters – Mailed to your target an attorney prepare or review any documents that you intent to use. the stage with some of the countries area or zip code. best real estate speakers. Lex Levin- Attorneys – Contact local pro- rad has authored numerous books bate, foreclosure, bankruptcy Taking some of the steps that I about real estate and is also the the and real estate attorneys. have mentioned above will mean founder of the Distressed Real Estate Network – Title companies, spending some money on adver- Investors Association (DREIA) and the mortgage brokers, wholesal- tising and marketing. Distressed co-founder of the Port St Lucie Real ers, anyone related to real es- sellers will not find you if you don’t Estate Investors Association tate. advertise. Most beginners don’t (PSLREIA). Click here to learn more! REIA – Go to meetings held by want to take this first step. That is your local Real Estate Invest- ment Club and network with buyers and wholesalers. Bird dogs – Hire other people to do all of the above and pay them a percentage on the deal or pay them by the hour. Online marketing utilizing so- cial networking sites like Face- book, Twitter, Linked-In etc. Investment News Page 17
  18. 18. Economic Update Average Sales Price The average new home homes on the market last month. The new home price this month ($324,271) is 15% higher than inventory for the region is also 28% lower than it the same month last year ($280,350). There was a year ago at this time when there were were price increases in all but two counties. The 2,091 new homes on the market. Existing inven- average YTD price for new homes increased by tory this month of 14,614 is 6% lower compared 3%, from $291,594 in 2009 to $300518 this to 15,508 one month ago. The existing inventory year; however, the YTD average price for an this month is 16% higher than it was a year ago existing home increased 2% over the past year. when the existing inventory was 12,568. New & The average existing home price this month existing inventory combined was 16,122 this ($142,071) is 4% lower than one year ago month compared to 17,076 last month repre- ($148,018).All but three counties (Johnson, senting a 6% decrease in the past month. One Platte and Leavenworth) experienced a de- year ago the inventory was 14,658 which repre- crease in average sales price for existing homes sents a 10% increase in total inventory over the from the same month last year. The average past year. price for combined new and existing homes in Kansas City Region Supply of Homes on the the region this month was $155,891, which was Market The Supply calculation is determined by 3% lower than the average sales price of taking the ―Inventory‖ and dividing it by the ―12 $160,621 for combined sales prices in Novem- month average of the number of Sales.‖ Gener- ber 2009. Johnson, Leavenworth and Platte ally speaking, a 5-6 month supply of homes on counties each experienced increases in the av- the market equates to a ―balanced‖ market. erage sales price for new & existing combined When the supply exceeds 6 months, the market from the same month last year. begins to favor buyers, and when the supply is Home Sales New home sales this month of 135 less than 5 months the market tends to favor represents a 45 % decrease from one year ago sellers. Supply for combined new and existing when there were 246 new home sales in No- homes was 8.4 months of supply in November vember. New home sales decreased this month which is almost the same as October’s 8.6 3% from the past month when there were 139 months of supply. The existing home supply was new home sales. Existing home sales in Novem- 8.4 months for November which reflected little ber decreased 32% from one year ago when change from the 8.6 months for October. The there were 2,208 sales, but wereup 1% from last new homes supply in November 2010 was 9.1 month’s sales of 1,474 compared to this month’s months, barely moving from October total of 9 sales of 1,495. Combined home sales of existing months. New home supply has continued to de- and new homes were 1,630 for November, cline or remain constant since November 2009. which is up 1% from the total of 1,613 sales from There is a slight buyer’s edge present in the new a month ago. This month’s combined total sales home market, the existing home and combined were down 34% from one year ago when there markets. were 2,454 sales. See charts online at, look un- Inventory New home inventory this month was der resources. 1,508 is down 4% compared to 1,568 newPage 18
  19. 19. BEGINNER’S Fast Start To Success The Beginner’s Fast Track to Success is a full day class ! designed to give the beginning investor a foundation to begin their real estate investing career. This class covers:  Types of Real Estate Investments  Types of Investment Properties  Goal Setting & Managing Your Time  Networking & Team Builcing Date & Time:  Asset Protection – LLCs Saturday  Intro to Finding & Researching Investment Property January 22th  Financing Investment Property 8:30 am to 4:30  Exit Strategies: Finding Buyers, Lease Options, Whole- Location: saling, Retail, Rental, More! Tucker One Properties MAREI Training Room 115 E Gregory, KCMO Cost: Members: $149 each $99 before 1/19/2011 Or Two for $149 Non Members: $199 Register On Calendar of Events Online at this month by Real Estate Investor Kim Tucker with over 10 years of experience Investing in Kan-sas City. Licensed Real Estate Broker. Director of MAREI Investment News Page 18
  20. 20. TRAINING Date & Time: Buying REO Properties Saturday There are 100’s of bank owned properties for sale with more coming January 15th 9:00 am till Noon on the market every day. Right now is an excellent time to get a great deal from buying your first home at a discount to building your rental Location: portfolio. Join us at this 3 hour workshop to find out: Tucker One Properties MAREI Training Room 1. Were to find information about homes for sale! 115 E Gregory, KCMO 2. How the searching, offer, and buying process work. Cost: 3. Review a typical REO Contract, there a bit different. Members: $59 each 4. Find out why you CAN’T ASSIGN an REO $39 before 1/14/2011 5. The difference between HUD, VA and REO Temp Members: $99 6. Offer Tips and Negotiation Strategies. Register On Calendar of Events Online at Date & Time: Marketing For Motivated Sellers SaturdayYou can spend countless hours hunting down deals. There is a better January 15thway. Put out marketing so the motivated sellers call you so you can 12:30 till 4:30 pmcherry pick the best deals and refer the rest! Location:1. How to Identify a Motivated Seller! Tucker One Properties MAREI Training Room2. Targeting Your Marketing to Your Motivated Audience! 115 E Gregory, KCMO3. 25 Ways to Market for Motivated Sellers. Cost:4. Direct Mail Marketing Our Favorite. Members: $59 each5. And Online Marketing - Where the Majority of Our Leads Say $39 before 1/14/2011 they are Coming From. Temp Members: $99If you want more deals coming into your pipeline in 2011, Marketing Register On Calendarfor Motivated Sellers will get them calling you! of Events Online at 20
  21. 21. EVENTS Date & Time: Building Your First Web Site SaturdayYou have been told you need to have a web site. Or worse yet you January 29th 9:00 am till Noonhave one and have shelled out $100s if not $1000s to set it up. Thereis a simpler solution. We will take you through the set up of your first Location:web site for little to no cost. If you have a product or service to pro- Tucker One Propertiesmote and do not yet have a website, then you need to be here: MAREI Training Room 115 E Gregory, KCMO1. What are template websites, and should you use them. Cost:2. Key Words, SEO, Blogs and Search Engines? Members: $59 each3. Step by Step walk through of the creation of 3 sites, from scratch: $39 before 1/14/2011  One from Scratch on Google Sites Temp Members: $99  One from Scratch on Wordpress - the free sites Register On Calendar  One from Scratch on Inet of Events Online at Social Media and Me Date & Time: Saturday January 29th 12:30 till 4:30 pm Location: Tucker One Properties MAREI Training Room 115 E Gregory, KCMO Cost: Members: $59 each So what are all these things? Why do I do them? How do I do them? $39 before 1/14/2011 What do they do for me? Is it all worth it? Can I do it faster? Temp Members: $99 Register On Calendar of Events Online at News Page 21
  22. 22. Jan Reserve a Vendor Table: If you have a product or service to present to a targeted group of real estate entrepreneurs Reserve a then reserving a vendor table at our monthly meeting is an Vendor Table 10 excellent way to meet that target group. Set up at our fromCALENDAR Jan 11 Monthly Meeting 6 to 7 and receive 2 minutes to pitch in our Haves & Wants MAREI’s Monthly Meeting: We meet the 2nd Tuesday of each month for networking and education. See next page. This month we have a panel of guests to discuss Marketing in the Real Estate Investing Business. Attend, take notes, and implement to boost your business in 2011! Jan Webinars on Email Marketing: There are several Email Email Marketing Webinars this month. 12: Creating a Marketing Marketing Email. 18th: Email Deliverability. 20: Growing your busi- 12 ness with polls. 25th: Planning Email Marketing. 27: Sub- Webinar ject Line Design. 31: Live Tour of Constant Conact Jan Workshop: Two workshops planned for today. Buying Live REO Properties and Marketing for Motivated Sellers. If you are not sure how to find deals in 2011, then this workshop Workshop 15 will get you started in the right direction. Be sure to register early for money saving discounts. Jan Sub Group: Commercial Investors - Led by Larry Prato, the Commercial Investors meet every other Wednesday SubGroup afternoon to discuss commercial investing deals. Bring a Commercial 19 deal to evaluate, pitch a deal, partner up, and make money. We are here to put deals together, so please join us. Jan Workshop Fast Start to Success Just getting started in real estate investing? Then this workshop is for you: types Workshop of investments, goal setting, team building, asset protec- Fast Start 22 tion, finding & researching property, financing property, and exit strategies. Providing a solid foundation to build from. Jan Direct Mail Webinars: On the 26th find out how to buy Webinar mailing lists for your direct mail marketing through Click2mail. Then on the 27th join us to find out how to mail Direct Mail 26 merge your list with your direct mail piece. Jan Online Marketing: Start your morning off by learning how Workshops to build your first web site. Then in the afternoon find out Online Marketing how to use social media. Both workshops are open to all 29 members, not focused just on the real estate investor. Coming in February—Financing Topics and don’t forget the Lee’s Summit Investors Sub Group meets on the 2nd Saturday of the month!Page 22
  23. 23. Monthly MeetingSylvester Powell JrCommunity Center6200 Martway, Mission KS913-722-8200Tuesday January 11 5:30 Set UpDoors open at 5:30 5:40 Members OnlyMembers: FREE Market UpdateGuest Fees: $25 at door . . 6:00 Industry Partner Expo Pre-register online for $15 Guest Panel 6:00 Member NetworkingIf guests join with in two days of 7:00 Haves & Wants (Bringthe meeting, their guest fee will be your Deals) JD Asbellapplied to the membership fee with 7:30 Presentation – DestinationForProperties.comproof of payment. Marketing Mastery 9:00 New Member Rick Zeitun Registration Location 6200 Martway Mission, KS 66210 Frank Malvagna North of Shawnee Mission Pkwy Park in North Lot South of Johnson Dr 2nd from the Building East of Lamar Less Kids & Door Dings Investment News Page 23
  24. 24. Investment Opportunity Address City Offered as Price Info Contact Phone 4115 Agnes Kansas City, Needs TLC $9,500 Wholesale Christoph 816-419-1165 MO Becker Overland Park Minor Repair $110,000 Wholesale Makeba Hart 816-665-0491 19 Houses KC Metro Rentals $695K Package Sunil Jain 913-526-1904 10 House Kansas City, Owner Fi- No Money Bank Kim Tucker 816-523-4400 Pckg MO nance Down Owned 7555 Brook- Kansas City, Rented $24,500 Wholesale Christoph 816-419-1165 lyn MO Becker 8023 Garfield Kansas City, Needs Work $24,500 Wholesale Christoph 816-419-1165 MO Becker 1318 Brook- Kansas City, Turn Key Highest Bid Auction Robert Mayo 816-361-2600 lyn MO 2313 Denver Kansas City, Needs Work Absolute Auction Robert Mayo 816-316-2600 MO 5 House Pckg Kansas City Rentals No Money Bank JJ Palowski 816-877-8230 Down OwnedPage 24
  25. 25. Wholesalers, submit your properties at: Looking for Investment Properties Investment Opportunity There are 100’s of great deals right now. Let me help you through the process.There are over 33 properties Real Estate Investor / Agent with experience in listed for sale today on the Bank Owned, Short Sale, and Rental Properties MAREI web site. All MAREI members may log Eric Deeter in and list their property for Realty Resource of KCsale, include details, photos, www.EricDeeter.comsimple html, and contact info. Call (913) 579-3354Must be your property or list- ing, no fishing for buyers with out proper contracts.All new listings emailed outon Fridays in our E-Updates Home Depot go to  2 % Bi-Annual Rebate for MAREI members  Volume Discount Pricing Click no Tool Box Click on Property for Sale Call me to find out how you can save on your next home renovation! Roger Holyfield (816) 510-9199 Investment News Page 25
  26. 26. Marte Cliff Copywriter Real Estate Marketing Real Estate Marketing - Use Autoresponders To  How-to tips for home staging Build Your Prospect List  Advice for FSBO sellers Your real estate website probably has an auto-  Neighborhood information if yours is a geo- mated function to let buyers sign up for MLS list- graphical niche ing updates. And it may have an automated function to let sellers get a ballpark idea of what  A report on the latest and greatest amenities their home is worth. for high-end homeowners  A report on home improvements that give But what do you do with the names you get from the greatest return on investment those functions? And why arent you offering something to visitors who arent ready to use  An area map showing the various subdivi- them? sions where homes are for sale. If all youre offering to those buyers is notifica- This list could go on and on. The only thing that tion of new listings, youre missing an opportu- matters is that you offer something that will be of nity to show them the kind of service you offer. interest to the buyers and sellers you want to And if all you offer to sellers is an idea of what attract. their home is worth, youve done nothing to set If your niche is waterfront mansions, skip the yourself apart from the crowd. first time buyer tips and focus on something that You and your site can offer much more. In fact, will be of interest to the more affluent buyer or you can even use autoresponders to set your- seller. self apart from other agents by appealing to buy- Then, once youve delivered the report, begin ers and sellers in your niche market. writing every few days with more good informa- Start with a special report. This can be geared tion. to any niche you choose, but just to get you Each one of your letters should have value - started with some ideas, you can offer: it should not merely be an advertisement for  House hunting tips for first time buyers your services. So before you choose the report, think about what other advice you can give. You  A "Why didnt it sell?" report for expired list- should come up with at least 4 different letter ings topics - but of course more is better. Try to keep  A checklist for buyers to help them clarify connecting with those leads every week for a their wants month or two, then every couple of weeks until  A checklist of minor repairs sellers should theyre ready to take action. make before listing Your goal is to create a trusting relationship -  Information about home warranties and how to show them that you know what youre doing, they work and youll be there and ready when they need your help. Your regular messages will assure  Information explaining Title Insurance and that you are the agent they think of first when why both buyers and sellers need it that time comes.Page 26
  27. 27. FOR INVESTORS BY INVESTORS LISTING AGENTS WANTED! Help Investors Locate, Negotiate, and Buy Join Our Team . . Awesome REO Deals. Build Rental Investment Portfolios for Profit.  Work our Motivated Seller Leads for Retail Buy, Renovate, and and Short Sale Listings! Sell Pretty Houses.  Hold our Rehabbed Homes Open to List and Negotiate Short Parley into New Buyer & Seller Leads! Sales for Distressed Sellers.  Market Your Investment Properties to Our Extensive Investor Buyer List!  Grow your Business With Us! 816-523-4400 For Investors, by Investors!Investment News Page 27
  28. 28. membershipWhat makes MAREI Different?You have a lot of choices in Kansas City for Real Estate and Landlord Groups. There are many rea-sons why MAREI is different, unique and better for you than other groups in the area. MAREI OthersMonthly MeetingsSaturday Training SeminarsMonthly Webinars and Recorded EventsMeet Local VendorsNational SpeakersDeal Makers Quick Pitch (Haves and Wants)Local Market Updates (at Meetings and Oline)Heavy Emphasis on NetworkingVery Active in Social MediaRobust Monthly NewsletterBlacklist of Undesirable SpeakersRigorous Vetting ProcessMember Focused MindsetREIA Leaders Who Invest Full TimeRobust Member Benefits ManualState of the Art Member & Guest WebsiteActive in National REIAActive in Legislative Efforts to Protect Our IndustryPacked Member Resource Pages & Online LibraryNon-Stop Sales PitchGroup Leader FocusedPoorly Run, Poorly Organized Meeting