The Investment News is the monthly newsletter for Real Estate Professionals from Mid-America Association of Real Estate Investors based in the Kansas City Metro and serving the Real Estate Industry since 2003.

1. INVESTMENT NEWS
MEETING
LOCATION
Holiday Inn & Suites
Overland Park West
8787 Reeder Road
Overland Park, KS
Top Floor
Sunset Ballroom
5:35 pm to 9pm
Details at MAREI.org
FREE BONUS!
All in attendance to receive
a free copy of Mike’s
Repair Estimate
Worksheet.
Real Estate Investor Meeting
On June 9th, 2015, at MAREI’s Monthly Meeting, Real Estate Inves-
tor and Leader of the Minnesota REIA Mike Jacka will be teaching us
how to get our repair costs right!
Find Out How to
Estimate Repairs in 15 Minutes!
Unless you know how to accurately estimate repair costs, you can’t
make smart offers. And when you know how to do it FAST, you’ll
save valuable time, make more offers, and make more deals.
Mike Jacka is a long-time retailer and experienced wholesaler who’s
developed a system for repair estimation for his own business that’s
so easy that even his non-rehabber assistant can use it, and he’ll
share it with us at this meeting.
Mike will walk you step by step through his process of looking at an
making an initial repair estimate on a potential deal, and show you
how he does this in 15-20 minutes. He’ll even share actual costs of
common repairs and upgrades.
June 2015 issue

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 MAREI.org
“And or Assigns”
~ Mike Jacka
Recently I have had a lot of new investors ask me about using
"And or Assigns" after their name on the purchase agree-
ment. While that does give you the ability to assign a contract, I
don't recommend using it. In fact, what I have been telling them
is:
"Get that term out of your vocabulary!"
All contracts by their nature are assignable, unless they state oth-
erwise. If you are making an offer to a bank on a foreclosure
property, the banks contracts are NOT ASSIGNABLE. And if you
put in "And or Assigns" after your name, it would supersede the
written version of the non-assignment of contract. However, the
banks will more than likely reject your offer simply because you
included "And or Assigns" after your name on the Purchase
Agreement.
You see, the banks and financial institutions have been run
through the ringer by new investors who have no intentions of
closing on the deal. They know the investor is planning on sell-
ing the contract. And if the investor can not find a buyer, they will
simple walk away from the deal and lose their Earnest Deposit.
That causes the banks a lot of problems. First, they lose the time
that the property was in escrow. What's even worse is how the
other investors or prospective purchasers view the property.
Let's say that you put the property under contract and the MLS
shows the property as "Pending", meaning it is under contract
and waiting to close. Then you try and find a wholesale buyer
with cash, but are unsuccessful. At the last minute, you back
out. The bank has lost time and incurred additional holding costs
and liability. They then put the property back on the market.
What do you usually think when you see someone was going to
buy the property and then the house is back on the market about
a month later? Most peoples reaction is usually: I wonder what is
wrong with that property? Did the other person have an inspec-
tion and found something wrong with it? I wonder how the foun-
dation is?
Do you see how this can devalue the property in your mind, as
well as in other peoples minds? When in reality, the whole prob-
lem was the person that put the property under contract was an
unseasoned investor and did not have the means to come up
with the cash because his/her attempts to find a wholesale buyer
"in time" failed.

3. Most peoples reaction to this situation, if they are even interested in the property after it is
back on the market is to make an even lower offer than they might have if the first investor had
not even been involved with the property in the first place.
This has happened all to often to the banks and they have stated in the Purchase Agreements
that the contract is not assignable. And if you submit a contract with "And or Assigns" after
your name on the purchase agreement, the banks will probably reject your offer, even if it is
full price, and you provide them with proof of funds.
Realtors hate "And or Assigns" as well. They know what that means, as well as the banks
do. And if they are representing an individual seller, they might have a tendency to suggest to
their seller to reject the offer for the same reasons as the banks would.
And what about FSBO's (For Sale Buy Owners)... How do you explain to the sellers that the
name of the purchaser is (John Doe, and or assigns)? How does a confused mind naturally
react? If you can not give the seller a convincible answer, they will probably back away from
the deal.
Ok Mike, you have convinced me not to use "And or Assigns" in my contract, but what if my
intentions are to wholesale the property? Then what do I do?
I am glad you asked:
First of all, if you are working with realtors and banks, there is not much you can do about
that. However, if you are working with FSBO's, you can have this statement printed or written
somewhere in your Purchase Agreement:
ASSIGNMENT: This Purchase Agreement is assignable.
When I wholesale a property, whether it is bank owned or individually owned, I use a simulta-
neous closing. I am not going to get into the details of a simultaneous closing right now, but I
will give you a quick overview.
A simultaneous closing is when you have a property under contract and you find a wholesale
buyer to quick-turn it and you close both transactions at the same time. The buyer brings the
cash to closing. You close in one room with the seller and 5 minutes later you close in anoth-
er room with your buyer. The seller walks out of there with a check, the buyer with the deed,
and you with the difference between what you bought it for and what you sold it for.
The best thing about a simultaneous closing is that no one but you and the closing agent
needs to know how much you made on the deal. Where as, if you assigned the contract, the
buyer would know how much you made because they would be paying you your profit to buy
the contract.
After your first deal, you should start building a list of wholesale CASH buyers. That way,
when you have your next wholesale deal available, you will already have the buyers lined up
with cash to close.

4. Visit the
MAREI Blog
I saved $2500 because of
MAREI . . . On Insurance.
Q & A: How can I build
my buyers list? Question:
I am looking for advice or
direction on growing my
buyers list. . . .
Five Ways to Become
Famous! At least in Real
Estate Circles . . . .
Dear Stupid Wholesaler .
. Are you making rookie
mistakes?
Legislative Survey from
National REIA. When it
comes to Washington DC
and our industry we need
to be . . . . .
MAREI.org/Articles
________________
Visit Member
Properties
Currently there are over 50
Available Investment and
Cash Flow Rental Properties
Available from MAREI Mem-
bers, please visit
MAREI.org/Property
Due on Sale
~ Mike Jacka
The "due-on-sale" clause is probably the most, feared and
misunderstood topic in real estate. This article will break
down the due-on-sale clause and discuss why it is not the
feared animal most people make it out to be.
What is the Due-on-Sale Clause?
This is the exact clause taken from Form 3024 1/01 - MINNE-
SOTA - Single Family - Fannie Mae/Freddie Mac Uniform In-
strument:
***18. Transfer of the Property or a Beneficial interest in Borrow-
er. As used in this Section 18, "Interest in the Property" means any legal
or beneficial interest in the property, including, but not limited to, those
beneficial interests transferred in a bond for deed, contract for deed, in-
stallment sales contract or escrow agreement, the intent of which is the
transfer of title by Borrower at a future date to purchaser. If all or any part
of the Property or any Interest in the Property is sold or transferred (or if
Borrower is not a natural person and a beneficial interest in Borrower is
sold or transferred) without Lender's prior written consent, Lend-
er may require immediate payment in full of all sums secured by this Se-
curity Instrument. However, this option shall not be exercised by Lender if
such exercise is prohibited by Applicable Law. If Lender exercises this
option, Lender shall give Borrower notice of acceleration. This notice shall
provide a period of not less than 30 days from the date the notice is given
in accordance with Section 15 within which Borrower must pay all sums
secured by this Security Instrument. If Borrower fails to pay these sums
prior to the expiration of this period, Lender may invoke any remedies per-
mitted by its Security Instrument without further notice or demand on Bor-
rower.***
The due-on-sale (a.k.a "acceleration clause") gives the lender
the right to call the loan due. It does not say that the loan
must be called due, only that the lender has the option, if they
so choose.
Where Did the Due-on-Sale Clause Come From?
Banks began inserting due-on-sale clauses in their mortgag-
es in the 1970s when interest rates rose dramatically. Home-
buyers were assuming existing loans rather than borrowing
new money from banks because the interest rates on existing
loans were lower. The banks realized that their old, lower in-
terest loans were their own, toughest competitor. The banking
industry came up with the "Due-on-Sale" Clause. It is a con-
tractual agreement only. It is not law.
This plan worked. The banks were able to force new home
purchasers to get a new loan (at the higher interest rates) and
pay off the lower interest rates when a property was sold or
transferred.
But... Today, interest rates keep dropping and the new loans
are at lower interest rates than the old ones. Could you see
the banks wanting to call these higher interest rate loans due,
just to make new ones at lower interest rate. I don't think so.
As long as the rates stay where they are, it doesn't make fi-
nancial sense for the banks to call these loans due. Even if

5. the rates are the same or just a little higher. You see, the process to foreclose on a loan that is still in
good standing, just because the ownership transferred would be expensive. And, if you live in a
state with long redemption periods like Minnesota, which has a 6-month redemption period after the
sheriff's sale, the process to foreclose would be long and expensive for the banks. As long as the
loan is current, and in good standing with the bank, they would much rather keep taking your pay-
ments.
Is it Illegal to transfer ownership of property with the due-on-sale clause?
Many people are under the mistaken impression that transferring title to a property secured by a
"due-on-sale" mortgage is illegal. This is because most people have never read the Due-on-sale
clause. They just listen to what the Realtors® tell them. I would venture to guess that most Real-
tors® have never read the due-on-sale clause, or the Garn St. Germain Act. If the lender discovers
the transfer, it may at its option, call the loan due and payable. If it cannot be paid, the lender has
the option of foreclosing.
Garn St. Germain Act: (US Code / Title 12 - Banks and Banking / Chapter 13 - National Housing / 1701j-3 Preemption of
due-on-sale prohibitions. There are several exceptions in which the lender may not enforce the due-on-sale: The one
they are referring to is in section: Exemption of specified transfers or dispositions.. a transfer into an inter vivos trust in
which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the
property;
What is a Land Trust?
A land trust is a form of a revocable, living trust, which is exempted under the Garn St. Germain Act.
A land trust is a legal entity for taking title to real property.
The trustee holds title for the benefit of the grantor (in this case, the grantor is also the "beneficiary").
The act of placing your property into a land trust does not trigger the due-on-sale clause. However,
transfer of the beneficial interest does.
How do I buy a house “Subject-To” with the due-on-sale clause?
Let's say that you find a house in pre-foreclosure. The seller is willing to give you title to his property
if you stop the foreclosure and save his credit. The only "glitch" is that the loan is not assumable be-
cause the mortgage has a due-on-sale clause. So you pass, right? Wrong...
The first thing you need to find out is all the facts the seller has represented to you. Do your due dili-
gence. Get a title company or Attorney to do a Title search. This will tell you the amount of the mort-
gage, if there is a second or a third mortgage, and if there are any liens or judgments against the
property.
If you are satisfied with the title search, then you may proceed with the transaction. Get the property
under contract. Along with the Purchase agreement, you will need to get an “Authorization to release
information” signed by the Sellers. This is the only document that will allow the Lender to release
any information about this loan to you. If the loan has already been turned over to the attorneys for
foreclosure, then you will also need this document for them.
You will need to request the loan balance, monthly payment, amount of arrearage (if any) and
amount to bring the loan current. If the lender is willing to work with you at this point, you have half
the battle won. Most Lenders (and attorneys) will work with you at this point. The most important
thing to them is bringing this loan current.
The banks get punished for having “non-performing assets” on their books. For every $1.00 in bad
dedt on their books, they are not allowed to lend back out $8.00. (Example: the bank has to fore-
(Continued from page 4)
(Continued on page 8)

6. CONSTRUCT & NEGOTIATE
profitable of fers
If you know anything at all about making offers, you already know that the right offer is
a made from a combination of the right evaluation and the right negotiation. In this all-
day workshop, you’ll learn both from a hyper-experienced real-life investor: Mike
Jacka. You’ll be much better at making offer that will actually get accepted an that will
make money, too, when you find out:
How to set the right value, with free online resources for finding ARV
How to use a to use a “seller net sheet” to negotiate more effectively—most in-
vestors have no idea how to use or present this powerful tool, but you will
How to use the “multiple offer strategy” to get more deals by giving your sellers
several options that will ALL work for you, and let him choose which best works
for him!
This workshop is designed to help you build the tools needed to get your offers
made quickly and easily and increase the likelihood of them getting accepted.
Regular Pricing: $49 for member, plus $20 for guest. Early Bird $29 plus $20**
$69 for non-member, plus $20 for guest. Early $49 plus $20**
Add $99 for Annual Membership for 1 or $149 for Annual Membership for two.
Total: _______________
Name: _____________________ Second Person Name: ________________________
Email: _____________________ Second Person Email: _________________________
Phone: ____________________ Secondary Phone: ___________________________
Address: __________________________________________________________________
Paid by Check: #__________ Expire Date: __________ Security Code: ____________
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Or register Online at MAREI.org or Phone at 913-815-0111. ** Early Bird till June 10th
Saturday June 13 8:15 to 4:30, Lunch Included, Career Education Systems, Ward Parkway
Shopping Center, 8600 Ward Parkway, Kansas City, Missouri

7. BUSINESS directory
Service Company Contact Phone Web
Contractor Building Trades Robert Massey 816-868-1817
Contractor Discover Heating & Air Curt Whitlock 816-500-2970 Discover HVAC.net
Contractor Supply Home Depot Sharon Beck 913-313-8912 HomeDepot.com
Contractor Supply Sherwin Williams Mike Steiner 816-589-8506 SherwinWilliams.com
Hard Money Crossroads Investment Lending Staff 913-766-2900 CrossroadsInvestmentLending.com
Hard Money Great Plains Funding George Hersch 913-735-6605 GreatPlainsFunding.com
Hard Money Investor Choice Funding Dave Williams 303-500-7088 InvestorsChoiceFunding.com
Hard Money Kansas City Investor Funding JJ Pawlowski 816-916-4593 KCInvestorFunding.com
Hard Money Longhorn Investments Chris Friedl 877-420-7346 LonghornInvestments.com
Home Buyer kcmoHomeBuyer Scott Tucker 816-200-2198 kcmoHomeBuyer.com
Insurance Asset Protection Insurance Lisa Goodner 877-752-2742 APIAProtects.com
Investor Pride Properties Marcus Bray 913-213-5370 PridePropertiesHomes.com
Lender Merchants Mortgage LLC Susan Aubin 720-554-9480 MerchantsMtg.com
Mortgage Pulaski Bank Beth Langston 816-234-8660 PulaskiBank.com
Realty Realty Resource Staff 816-406-0701 RealtyResourceKC.com
Realty & Management Arrow Realty Candace Davis 913-956-5003 ArrowRealtyKC.com
Realty & Management Home Rental Services Kandy Meehan 913-469-6633 Home4Rent.com
Realty & Management Jamieson Home Team Kevin Jamieson 913-384-8331 JaimesonHomeTeam.com
Security COPR Security Geoff Miles 816-398-4045 COPRSecurity.com
Title & Escrow Accurate Title David Green 913-338-0100 AccurateTitleCo.com
Title & Escrow Alpha Title Patsy Archer 913-498-8999 AlphaTitleLLC.net
Title & Escrow Continental Title Sharon Bower 913-744-7011 CTitle.com
Turn Key Rentals KCInvest Don Tucker 913-735-0118 KCInvest.com
See full details on all Business Associates at MAREI.org/Business-Directory/
Mid-America Association of Real Estate Investors does not render legal, tax, economic or investment advice. All pro-
grams, properties and services are provided with the understanding that Association is not engaged in rendering legal, tax,
or other professional services. If legal, tax or other expert assistance is required, the services of a competent professional
should be sought. Everyone should complete their own due diligence!

8. close and take back a property with a $100,000 mortgage, that means they are not allowed
to lend out $800,000, until that house is sold, and off their books.) That is why the banks are
usually willing to deal with us, even though they know the loan will be taken subject-to the
existing loan, which has a due-on-sale clause in the mortgage.
Next, GET THE DEED!!! Once you have the deed, then you have control of the property. Go
ahead and make the back payments and arrearages. You now own the property, and the
loan is current. If the bank is not going to take the payments from you, then you also know at
this point that they are calling the loan due (which is rare, but does happen). At least you
know, you have not spent any money on this property, except for a few dollars on a title
search, and some of your time. But most of the time, the lender will take your money. They
will re-instate the loan for you, and you own a property that
you bought subject-to, with an existing loan that you did not
originate, did not sign for, and has a “Due-On-Sale” clause in
it.
As long as the interest rates stay low, the “Due-on-sale”
clause should not be feared, only understood.
(Continued from page 5)
Contact Us
Learn more about
Mid-America Association
of Real Estate Investors
Chapter of National REIA
Kansas City Office
8014 State Line Rd,
Suite 210
Leawood, KS 66208
(913) 815-0111
info@MAREI.org
Visit us on the web at
www.MAREI.org
www.MAREImember.com
Member
Discounts
Home Depot 2% Rebate
Sherwin Williams Discount Card
Office Depot Max Discount Card
Rentals.com 20% Off Reg Price
ISC Tenant Screening
More . . . .
Meeting Location
MAREI Meets every 2nd Tuesday at the Holiday Inn & Suites at 8787 Reeder
Road in Overland Park, KS. Conveniently located just off 69 & I35 Highways
at 87th Street.
Meeting Agenda
5:30 pm: Set Up & Early Birds
6:00 pm: Networking & Vendor Hall
6:30 pm: Member Benefits—Little Board Room off Vendor Hall
7:00 pm: Announcements
7:15 pm: Estimating Repairs with Mike Jacka
9:30 pm: Late Night Networking in the Lounge 1st Floor
June Meeting on 8th Floor in Sunset Ballroom
FREE BONUS!
All Members of
MAREI receive a
FREE Investor
Website.
A Trade Association for
Real Estate Professionals
For landlords, wholesalers, rehabbers, note sellers, multifamily investors,
exchangers or anyone else who use real estate as a way to build
wealth. We welcome full time investors as well as those just getting start-
ed or people who provide a product or service to the industry.
With something for everyone from beginner to pro!
The experienced real estate professional will find the support they need stay in-
formed of the issues and tools to take action. The new investor will find the edu-
cation they need to get started and the products, services and connections to build
profitable businesses. The product or service provider that caters to the real es-
tate industry will find active professionals who need their services. And everyone
benefits from our community, from live meetings and events to our very vibrant
social media destinations. Please join us . . . .