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The Investment News: March 2011


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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: March 2011

  2. 2. March 8th Monthly Meeting "Fair Housing Compliance" Its Not an Option. Its the Law! Bob Wise & Julie Anderson Attorneys at Law Do you know the severe penalties for Non-Compliance? What you dont know can hurt you!! Renting Houses? Selling Houses? Selling Lease to Own? Are you a Realtor? Making Loans? Doing Appraisals? Our focus with be on the Landlord Tenant Aspect, but . . . These rules apply to everyone! Whether we are renting, selling, or selling with lease-options or owner financing, one thing remains constant: we are all subject to compliance with Federal Fair Housing Law, and severe penalties for non-compliance. Wouldnt it be a horrible thing to make a mistake, omission, or misunderstood statement in an ad or to a prospect on the telephone, and face the possibility of being fined thousands to tens of thousands of dollars? Find out the Law! Get Informed! And Stay in Compliance in 2011! See page 23—1 hour PHP credit on Fair HousingPage 2
  3. 3. Contents MAREI News In This Issue March Meeting 2 MAREI Staff 5 Notes from Director 6 Member Pics 7 Do I have to lease to this Jerk? 8 Lead Paint Laws: Do they Apply to me? 10 Why are KCRAR Contracts so Long? 12 Professional Housing Provider 14 Economic Update 16 Squeeze Your Membership 18 Live Workshops 20 Calendar 22 Investment Opportunities 24 Lead Paint Laws 26 Features ‫ ׀‬March 2011 Did you know New Lead Advertiser’s Directory Fair Housing Paint Laws Sherwin Williams 13 Realty Resource 19 Applies to went into ef- fect April 22, Home Depot 13 AAA Screening 19 everyone. But 2010. Find 8 don’t let it limit you in 26 out if they ap- ply to YOU. Constant Contact Accurate Title 13 15 MAREI University 19 19 sound busi- RockStar Investor 15 25 ness deci- sions. Argentine Federal 17 Eric Deeter 25 Te-Tee Light Electric 17 Home Depot 25Investment News Page 3
  4. 4. MAREI Notes Contact Information PO Box 8685, Prairie Village KS, 66208 Phone: 913-815-0111 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 913-815-0111 for more information. Email ad copy to Mail payment to MAREI, PO Box 8685, Prairie Vil- lage, KS 66208 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.comJohn Welchert Larry Prato Spencer CullorMeeting Ambassador Commercial Subgroup Commercial Subgroup816-268-3849 913-227-4693 913-324-5900Dan Goodwin 913-642-5218 Shelda GoodwinMeeting Ambassador Meeting Investment News Page 5
  6. 6. Director’s Notes “Ok Kim, tell me how you are going to tie Basketball Second, I watched the coaches. The coaches have into real estate investing!” a game plan with the players they have on their team. The players have been coached on what to do At my house there are two things that we talk about and how to reach their goal of victory. They have non-stop, real estate and any sport that involved a practiced working together as a team and every ball. In March that sport is Basketball. player knows where they fit in and what they are sup- posed to do to accomplish the team’s goal. A few weeks ago I was watching KU thoroughly de- stroy some other team and I was struck how much Real Estate is no different. You need to sit down and basketball was like real estate investing. figure out your game plan and strategy. Then you need to recruit the best players to your team. As a First the KU team is made up of a bunch of excep- coach you oversee what your team players are doing tional players and each and every one of them re- and make sure they are doing what you need to have members that it is a team sport. No one player alone done. You must practice as a team, and have meet- on the team is going to make the team successful, ings to re-evaluate the results. Have a few backup but when they all work together in unison, toward the players warming the bench so when you have an same goal, they win as a team. injury, or you need to make a change or add a team player, you don’t have to look far from your bench. Real Estate is much the same way, it is a team business. I am struck So be sure to network at all the live events: MAREI every day when we are trying to get meetings, sub-group meetings, educational events, everything completed, that we can’t and outside MAREI events to find those key players do it alone or with 2 or 3 star play- for your team: Realtors, Lenders, Contractors, Ac- ers. You need a well rounded team countants, Attorneys, Home Stagers, Clean Out of players in your investing busi- Guys, Insurance People . . . ness: some that are great at re- So have a great March and enjoy the Madness. Oh bounds, some that are good with free yes and go Cat’s (I graduated from K-State) throws, some that can drive it down the lane, someone who can sink those 3 pointers, and someone who is really tall! Kim Tucker Director of MAREI You need a deep bench so when you need that guy or gal who can make that “buzzer beater shot”, you have them on your team. A few weeks ago I was watching KU thoroughly de- stroy some other team and I was struck much it was like real estate investing.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. Charles Brown has quite a few articles on fairhousing on the internet. You can search for hisname or “Do I Have to Lease to this Jerk” tofind more of his articles. No website for him. Do I have to lease to This As an attorney, I represent property manage- ment companies and provide legal advice to Me: No. apartment managers. Periodically, I have a Manager: I dont? Isnt that discrimination? conversation with a client that goes something Dont I have to treat everyone the same? like this: Me: Not necessarily. As long as your reason Manager: This guy came in this week and ap- for not leasing to this person has nothing to do plied for an apartment. He is really obnoxious with this persons race, color, religion, national and I get "bad vibes" from him. Do I have to origin, sex, familial status or handicap, (the lease to him? "protected classes" under the Fair Housing Me: Why does he give you "bad vibes"? Acts), you dont have to lease to them. Manager: He has called every two hours to Manager: If he is in the "protected class" dont see if his application has been approved. I have to lease to him anyway? Then, he puts me on hold every time he gets Me: No. You do not have to rent to him just another call on his call waiting. He yelled at because he is in the "protected class". Your me when I told him that we would not be able decision to deny the application is not based to process his application without a copy of his on this applicants race, color, religion, na- drivers license. He has asked to see the tional origin, sex, familial status or handicap. same two apartments every day for the last You may deny the application for another rea- week. He told my assistant manager that our son. For example, the applicant could be in staff was incompetent because we could not the "protected class", but if he refuses to fill tell him how many cubic inches the refrigerator out the application completely, you could re- freezers have. He wants to see the resumes fuse to lease to him based on that reason. Its of the maintenance staff. He made one of my all right as long as you would have rejected leasing agents cry. This guy is obnoxious and someone in the non-protected class for the rude. same reason. However, you might want to Me: Did he complete his application? document in your file the reason you rejected someone because you may have to defend Manager: Yes. Good credit, no criminal his- the decision in the future. tory, sufficient income. I verified the informa- tion on the application. He is qualified to be a Manager: You mean we can have a "No Jerks" tenant here. policy? Me: Do you have a written policy that outlines Me: Yes. Just as you may have a policy that your admission criteria? rejects applicants who have a criminal record, who do not have sufficient income, who have Manager: Yes, and he meets all of the criteria, bad hygiene or who have bad credit history. but I cant imagine dealing with this guy for the The legal test is whether your decision is be- next year. Do I have to lease to him? cause of the applicants race, color, religion,Page 8
  9. 9. national origin, sex, familial the "protected class" illegally. lease. As long as decision tostatus or handicap. If your deci- The problem with a "No Jerks" deny the lease renewal is not be-sion is for some other reason, policy is that it may be viewed by cause of this tenants race, color,you are not violating the law. a jury as a pretext for discrimina- religion, national origin, sex, fa-Manager: What do I tell him tion. In other words, a jury might milial status or handicap, you doabout why Im denying his appli- think that your rejection of some- not have to re-new their lease.cation? Dont I have to give him a one based on their offensive be- Like lease applications, you doreason why we will not lease to havior is just an excuse that you not have to tell the tenant whyhim? are using to discriminate against you did not renew their lease. them for some unlawful reason Another factor comes into play inMe: No. As long as the reason is such as their race, color, religion,not based on his credit report lease renewals. You may not re- national origin, sex, familial fuse to renew a lease in retalia-you do not have to give a reason. status or handicap.I do recommend that you confirm tion for a tenant exercising hisall disapproved applications with You should have a written policy rights. Here, you must make thea polite letter confirming their dis- that outlines your admission cri- distinction between a tenant whoapproval but it is not required. In teria for tenants. You may want is rude and obnoxious in makingthis situation, you do not have to to modify the written policy to in- legitimate demands and assert-state the reason for the disap- clude a category for ing their legal rights and the ten-proval in the letter if you send "Management Discretion". Your ant that is just rude and obnox-one. file should have some documen- ious without merit. If a tenant has tation that the basis for your de- been obnoxious and pushy but inManagers are often surprised to nial was in accordance with your the context of asserting their le-hear that they do not have to policy. If someone otherwise gal rights such as requesting re-lease to people who otherwise meets your admission criteria but pairs, you should probably renewqualify to be tenants. The mis- you are not comfortable leasing their lease. Otherwise, a juryconception is that they have to to them, you may use the Man- could easily infer a motive of re-treat everyone the same. While agement Discretion category as taliation. You would have a diffi-is it a good idea to be consistent the basis for rejecting the appli- cult time proving that the reasonin your treatment of all tenants cation. In addition, include notes for not renewing the lease wasand prospective tenants, you do of the specific conduct that you based solely on the tenants con-not have to treat everyone the found to be offensive as well as duct and was unrelated to theirsame. the basis for your decision. exercising their legal rights.However, if you deny an appli- If you reject an applicant based Life is too short to have to put upcant just because you dont like on the applicants obnoxious be- with certain people as tenants.them, you run a greater risk of a havior, be sure that their behav- As long as your reason for notdiscrimination claim if they are in ior is not due to a mental disabil- leasing to a person has nothingthe protected class. For example, ity. The applicant may be in the to do with their race, color, relig-say you deny the application of a "protected class" and you may be ion, national origin, sex, familialHispanic female who is in a inadvertently denying their appli- status or handicap, you dontwheelchair and has three minor cation based on a mental disabil- have to.children because she is obnox- ity, which is reason for their unac-ious and rude to you and your Charles Brown is an attorney ceptable behavior.staff. A jury could more easily in- who invests in real estate in thefer that your denial was based on The same question arises in Austin, Texas area. He is Boardsome other reason (i.e. her dis- lease renewals. Sometimes you Certified in Residential and Com-ability, her race, her familial lease to people who make life difficult for themselves and eve- mercial Real Estate Law by thestatus) than the fact that you did ryone around them and you wish Texas Board of Legal Specializa-not like her behavior. you had never leased to them. tion. He can be reached at 512-Be consistent in enforcing the While their behavior may not 476-8942.policies, otherwise, it may be warrant an eviction, you may de-hard to prove that you did not cide to refuse to renew theirdiscriminate against someone in Investment News Page 9
  10. 10. Article from Shawn Mccadden New Lead Paint Law Does it apply to me? Being a landlord brings with it many le- fication requirements. These require- gal responsibilities related to lead paint ments must be met when working in a that, if not followed, can certainly eat tenant’s unit and or if work is to be done away at any potential profits. There are in common areas on or in the rental prop- many rules to consider and be aware of, erty. The rule requires that tenants be the most common being the lead disclo- made aware of the work to be done and sure rules. Federal rules are one thing, where it will be done in advance of start- but different rules in different states and ing the work. different cities can make it quite difficult for landlords to be confident they are When work is done inside their units, ten- complying. Ignorance of the rules is not ants must be given an EPA published an excuse. pamphlet titled “Renovate Right”. The pamphlet explains the dangers of lead Lead disclosure related rules effecting and what is required to protect their and landlords have been around for some their family’s health and safety when time now. Still, many landlords are not work is being done at the property where aware of them and even many who are they live. If work is to be done in com- aware have been getting away with ig- mon areas, the pamphlet can either be noring them. The EPA typically only pro- given to tenants, or, notices can be actively audits “bigger fish”, like large posted telling tenants how they can re- apartment complex owners, rather than ceive the pamphlet at no cost to landlords with fewer properties. How- them. Tenants must also be given or ever, when tenants complain about or made aware how they can request a sue a landlord, their lawyers will often document titled the “Renovation Check- also use lead disclosure compliance as an list”. The checklist documents the work additional weapon in their arsenal. Now done and the lead safe work practices there is a new weapon tenants and their used to do the work. Under the rule the lawyers can use as well. landlord must maintain documentation proving these and other requirements Many landlords are not aware of the new were met. RRP Lead rule which must be followed when repairs, renovations, painting and If the landlord does his own work on the or maintenance is done on their rental rental property and or uses his/her own properties. In addition to certain re- employees to do so, the landlord must quired lead-safe work practices, the RRP also become an EPA Certified RRP firm rule also includes building occupant noti- (Continued on page 11)Page 10
  11. 11. and only use trained and certified workers to do the work. If you are a landlord doing yourown work, see the list of documentation required to be kept listed on page 11. If the landlordhires a contractor to do the work, the landlord does not need to be certified, but the contractordoing the work does. If a contractor does the work, the landlord is responsible to obtain fromthe contractor and store all documentation required under the rule. For violations of the RRPrules landlords can be fined up to $37,500 per day, per violation.***Keep in mind that the RRP fines will be in addition to any fines related to disclo-sure rules.Depending on the work performed, who sold it and who did the work, some or all ofthe following may be required: Copy of the Certified Firm and Certified Renovator(s) certifications Non certified worker training documentation Proof of notification and or pre-education of owners, tenants, and or the parents of children attending child occupied facilities. Designation of Certified Renovator to the job Information on and results of the use of EPA-recognized test kits provided by a Certified Renovator who acted as a representative on the Certified Firm at the job site and who con- ducted testing for the presence of lead-based paint on surfaces to be affected by the renovation Lead based paint inspection reports provided by a Certified Lead Inspector or Certified Lead Risk Asses- sor, if applicable Any other signed and dated documents form the owner(s) and/or residents regarding conduct of the renovation and requirements in the EPA RRP RuleAll reports required from the Certified Firm and CertifiedRenovator by the EPA RRP Rule Are You CERTIFIED? Your FIRM? Get CERTIFIED APRIL 9th - See pg 21 Investment News Page 11
  12. 12. Why are KCRAR Contracts so Long? One would hope that through a bit of Let’s take a quick look at items that negotiations a buyer and seller could should be in every contract: come to an agreement on a sales price The Subject Property: this must be and terms of the agreement and then identified at a minimum by property take it to a successful closing. But un- address, the one the post office uses. fortunately, this does not always hap- We should further identify it by the le- pen. gal description and possibly the tax This is one of the main reasons the identification number. Double check KCRAR (Kansas City Regional Associa- that you have it right and that what tion of Realtors) contracts seem to add the title or attorney writes up on the 2 to 3 pages every year. Because closing documents match, if not, you someone somewhere had an issue that might be buying the wrong property. just was not covered in the contract. Price: Just how much is being paid So in an effort to make sure that every for the property. By writing it down issue and contingency that could arise we have an exact figure that can’t be to derail the transaction are written disputed. down up front and to make sure the Earnest Money: How much is the Realtors involved, the lenders in- buyer putting down, who is going to volved, and the title company also un- hold this money till closing, and what derstand what they are supposed to happens to it if the buyer does not be doing, the contracts keep growing. close. The disposition of the earnest As a part of the MAREI’s training pro- money is such a big deal that there gram and the National Professional are rules, regulations, and laws about Housing Provider (NaPHP) certification it. we have been creating a few new Dates: When is it closing, when will classes on contracts. The first work- earnest money be paid and then de- shop: Contracts Part 1: takes a look posited, when will inspections be com- at the basic contracts we see most of- pleted and when does the buyer have ten when we buy and sell residential to have loan approval are just some of real estate in the Kansas City Metro. the more common dates. This workshop is planned for Friday Contingencies: Most often used as a March 11th from 3pm to 4:30. way out of the contract, these are (Continued on page 13)Page 12
  13. 13. written agreements that if x before 1978. as well as the forms thathappens, then y will follow. come into play when we are Seller’s Disclosure: AsksThey are usually written in writing contracts on homes the seller a bunch of ques-order to allow a buyer time that are potential short tions about their propertyto perform the proper due sales. Offered 03/23/2011 to make sure they disclosediligence: that the property all material facts about the Part 3 will take a look atis in the condition we think property to the potential additional forms and con-it is, that it adheres to the buyer. tracts we will utilize in theuse we want to put it to, course of our investmentand that the buyer can in- There are several other career: Options, Owner Fi-deed get the proposed fi- forms that we may find that nancing, Subject to,nancing and that the prop- deal with contingencies we Leases, Lease Options, anderty will qualify for the fi- are seeing more often these Developing your own Con-nancing. Most often we see days such as testing of air tracts.the contingency that the conditioning in coldhome will pass several in- weather, testing for Radon While we will start in Part 1spections before the buyer and the negotiation of a with forms and contractsfinally agrees to buy, if they short sale. from KCRAR, by Part 3 wedon’t, the buyer can back will be reviewing contracts. We are going to look at theout or renegotiate. main contracts in depth in This class will be taught byFinancing: Another form this workshop and then the 10 year Realtor Kim Tuckerthat takes up 3 or 4 pages odd forms that we see on with Realty Resource whothat has a bunch of contin- occasion. has also been investing ingencies that outlines in Kansas City for the same This workshop is part of a 3specific the terms of financ- time period. part that need to be and Realtors note that Kim re-when the due diligence Part 2 takes a look at the cently completed a state ofmust be completed on the forms and contracts used in Missouri Real Estate Audit,part of the financing. addition to or instead of so we will be covering the KCRAR contracts when weLead Based Paint Disclo- proper way to fill out these are buying Bank Ownedsure: An EPA mandated forms. Homes and HUD Propertiesform on all properties builtBe sure to use your discountcard for savings of up to 40% 2% Rebate, Get regular pricing in all stores Instructions in the membernationwide. This is all part of area of Loga NATIONAL Contractor Ac- in, click on Member Librarycount for awesome price sav- and look for Home Depot inings! Card is in your mem- the Benefits Section.bership package! Investment News Page 13
  14. 14. Professional Housing Provider Mission: Enable…members to expand their ignation, and should recognize that having a education and knowledge via courses as basic education in the topics outlined will valuable tools to attain successful goals and increase his or her ability to reach their present a professional image to the public goals in real estate investing. Further, as and government. MAREI and National REIA works to make What is the PHP? the National PHP designation more recog- PHP stands for the Professional Housing nizable, it is hoped that the PHP holders will Provider program. have an advantage in dealing with legal and What is the PHP designation? governmental bodies when a “my word against his” situation occurs. It will also aid The PHP designation is a metrowide, educa- in encouraging legislators to think of edu- tion-based certification program designed to cated investors as a larger group for political recognize the high level of knowledge and action. Other tangible benefits, including professionalism among the designation discounts on courses and educational mate- holder. It is sponsored and overseen by the rials, may be added as the program devel- Mid-America Association of Real Estate In- ops. vestors (MAREI). Benefits Why obtain the PHP designation?  Professionalism – This level of high es- Only persons completing the educational re- teem for Graduates is perceived by quirements on the Course of Studywill be peers, the local media and local govern- permitted to hold themselves out to the public ment officials. as a Professional Housing Provider. The des-  Accreditation – Graduates qualify to use ignee will be recognized in the form of an the PHP title and/or initials on their busi- award certificate and the right to use the des- ness cards, for rent signs, name badges, etc.  Awards – Personal certificate awarded to each graduate.  National PHP – Graduates from states with identical programs automatically qualify for the National Professional Housing Provider Award. Keeping Track of Hours/Credits – Paper- PHP work It is the responsibility of the individual candi- date to keep track of his/her own attendance certificates.Page 14
  15. 15.  MAREI to certify that youhave completed the required accuratecourses.How Will I Obtain Credits?The hours may be obtained Accurate Closings:through local association meet- Smooth, Timely, Professional.ings and seminars, or through Title Services Provided for:accredited courses taught out-  FSBO, Wholesale, & REO Transactionsside of the local association. All  New Construction Closingsoutside courses and seminars  Commercial Purchases and Refinancemust meet the following re-  All Types of Loan Closingsquirements: they must betaught live; they must be pre- MAREI  1031 Exchanges  FHA, VA, USDA, Conventional Loans, Internshipsapproved by the PHP commit-tee, and they must provide a and Hard Money Loan Closings  Refinance & Reverse Mortgagescertificate of attendance accept- Managing  Doc Prep, Prelim HUDS, Curing Issuesable to the PHP Committee.Attendance Websites  Short Sale Closing & Assistance  100 Years of Combined Service!In order to receive credit for any Bookingmeeting, the candidate must be Events www.AccurateTitleCo.comin attendance for at least 90% 913-338-0100 phoneof the meeting. NO credit will be Sellinggiven for partial attendance. All Advertisingcandidates must have their at- PRIVATE LENDERtendance form stamped or ini- Graphictialed at the beginning of the Design Locally Owned & Operatedevent and at the end of the Private Money Lenderevent. Email We are a Direct Lender,Sometimes there are a number not a Brokerof investors who typically standoutside chatting for the majority  Rehab Loans up to 100% of Costsof the lecture. This does not  Up to 65% of the ARVcount as attendance at the  Terms from 30 Days to 1 Yearmeeting. Remember this certifi-  Rates from 12 to 16% Interestcation reflects a high level of  Points from 6 to 10education among the gradu-  Appraisals Requiredates.  Draw Requests on Wed.Find out more anddownload the Course of RockStarInvestor.comStudy and Master Record Jeff BaslerSheet on the MAREI web-site. Look under Education. 913-221-9080 Investment News Page 15
  16. 16. December 2010 Economic Update January 2011 Housing Statistics time when there were 1,841new homes on the mar- Average Sales Price: The average new home price ket. Existing inventory this month of 13,558 is also this month ($328,459) is 3% higher than the same 1% lower compared to 13,713 one month ago. The month last year ($318,686). There were price in- existing inventory this month is 7% higher than it creases in three counties. The average existing home was a year ago when the existing inventory was price this month ($129,560) is 6% lower than one 12,620. New & existing inventory combined of year ago ($137,738).Three counties (Jackson, 15,065 this month compared to 15,238 last month Leavenworth and Miami) experienced increases in represents a 1% decrease in the past month. One average sales price for existing homes from the same year ago the inventory was 14,461 which represents month last year. The average price for combined new a 4% increase in total inventory over the past year. and existing homes in the region this month was Kansas City Region Supply of Homes on the $143,626, which was 9% lower than the average Market The Supply calculation is determined by tak- sales price of $157,833 for combined sales prices in ing the “Inventory” and dividing it by the “12 month January 2010. Jackson, Miami and Platte counties average of the number of Sales.” Generally speak- each experienced increases in the average sales ing, a 5-6 month supply of homes on the market price for new & existing combined from the same equates to a “balanced” market. When the supply month last year. exceeds 6 months, the market begins to favor buy- Home Sales: New home sales this month of 91 ers, and when the supply is less than 5 months the represents a 13 % decrease from one year ago when market tends to favor sellers. Supply for combined there were 104 new home sales in January. New new and existing homes was 7.9 months of supply in home sales decreased this month by 28% from the January which is slightly lower than December’s 8 past month when there were 126 new home sales. months of supply. The existing home supply was 7.7 However, the good news is that existing home sales months for January which reflects little change from in January increased 6% from one year ago when 7.8 months for December; the fourth month in a row there were 1,075 sales, but were down 28% from last for decreases in supply of existing homes. The new month’s sales of 1,588 compared to this month’s homes supply in January 2011 was 9.5 months, sales of 1,140. Combined home sales of existing and hardly moving from December’s total of 9.6 months. new homes were 1,231 for January, which is also New home supply has continued to remain relatively down 28% from the total of 1,714 sales from a month constant since January 2010; hovering around the 8 ago. This month’s combined total sales were 4% from ½ - 9 ½ month supply for the past year. There is a one year ago when there were 1,180 sales. slight buyer’s edge present in the new home market, the existing home and combined markets. Inventory: New home inventory this month of 1,508 is down 1% compared to 1,525 new homes on the See charts online at, look under resources. market last month. The new home inventory for the region is 18% lower than it was a year ago at thisPage 16
  17. 17. $8,000 Discount Month of March “Flexible rehab options and purchase financing for WHAT IS NSP? qualified investors! Ann Wilkinson Vice PresidentIn response to the recent foreclosure crisis, the Mortgage Loan Productionfederal government is providing Kansas City with 12501 Antioch Rd$7.3 million through the Neighborhood Stabi- Overland Park, KS 66213 Ph: (913) 402-1500lization Program (NSP) to purchase and rehab Fax: (913) 402-0673vacant, foreclosed homes in the urban core and TE-TEE LIGHT ELECTRICAL SERVICES Keeping you “In-Powered” withThe governments in the Kansas City region are cur- Superior Electrical Service!rently conducting a study to identify barriers to hous-ing choice, including discriminatory activities, in the  FREE Estimatesmetropolitan area. The study will investigate many  FREE Consultations on Non-Emergencydifferent types of impediments to housing choice,  24-hour Same Day Emergency Servicesuch as lack of affordable housing, zoning impedi-ments, etc., and develop a plan for the region to ad- Licensed, Insured, Bondeddress the identified barriers. Serving Kansas & MissouriIn order for this study to be successful, they need in-put from those involved in any aspect of the housing George Z. Bai, Sr. - Ownerindustry. BBC Research and Consulting, the firm con- Office (816) 356-1870tracted with to conduct the study, will hold four com-munity meetings on Thursday, March 10 at four sites Cell (816) 210-4710in the area (see calendar for details). You are invited TeTeeLight@gmail.comto attend any one of these meetings. If youre unableto attend a meeting, you can still fill out the survey.See Calendar of Events. Investment News Page 17
  18. 18. Squeeze Your Membership! Besides all the awesome networking and exceptional speakers at the monthly meetings, are you taking advantage of everything MAREI has to offer you? As a member of MAREI you have a ton of benefits avail- able, all as a part of your annual membership dues:  Message Board: Did you know that when you post a message on the message board it goes out to all members who have valid email addresses?  Classifieds: We post every property that is in our classifieds at least once in the monthly newsletter and blast it out to the email database at least once.  Home Depot: A biannual rebate of 2% on your net purchases at the Home Depot and the Home Depot Tool Rental. We have seen several $300 checks here in Kansas City and one in Florida for $3,000 with this program for 6 months of purchases.  Sherwin-Williams: One of the most popular and easiest used. Take your discount card for up to 40% off on paint, paint supplies, & equipment, and where available floor coverings, and window treatments. Card included in your membership package.  FedEx Office: Up to 22% off shipping and up to 20% off on copy- ing and printing services at any Fed Ex Office.  Office Max: From printing & binding, to finishing & customization. Plus all your office supply needs. Offering discounts of up to 60%.  Market your rental property online, for fewer vacan- cies on a top ranked website. Offering 20% discounts off regular price.  AAA Screening: Get exceptional screening service for all your tenants, contractors, and employees. Discounts on registration and all searches. To access discounts, obtain codes, or to register as needed, see instructions on the Member Dis- counts Page in the Member Area!Page 18
  19. 19. For Investors By Investors More Information . . .In this market, you want an agent on your More Confidence side that has the knowledge, the ability, the EXPERIENCE, and the resources to help you! More Profits Tenant Screening Pre Employment Screening Contractor Screening Collection Services Realty Resource 115 E Gregory, KCMO Discounts for MAREI Members 816-523-4400 816-436-0085 On Demand Training 30 Minute Segments Top Investor Trainers Do the math. Your vacancy is costing you every day. From the Comfort of Fill your vacancy faster and save money with! Your own Internet Connection Get Started Today Discounts for MAREI Members: Receive 20% off all Regular Priced Advertising. Log into Member’s Area, click on Member Take a FREE Trial Discounts and look for MAREI’s With Andy Heller Discount code! REO’s & Lease OptionsInvestment News Page 18
  20. 20. TRAINING Check the Calendar 5 Webinars in March Date & Time: Saturday March 11,2011 3:00 pm to 4:30 pm Location: Tucker One Prop. Bldg PHP Workshop: Contracts Part 1 115 E Gregory Kansas City, MO Buying or selling, this is for you: Cost:  Standard Contracts & Assign ability Members: $25.00  Buying in an Entity or Your Own Name Non Member: $35.  Closing Costs & Contingencies Register On Calen-  Appraisals & Inspections dar of Events Online  Disclosures Part 2: March 23 at  Much More Part 3: March 31 www.MAREInet.comPage 20
  21. 21. EVENTS Avoid Fines! Avoid Date & Time: Saturday Prison! Get Certified! April 9th, 2011 Now is the time to become an EPA-certified reno- Location: vator and follow the specific work practices that Sylvester Powell Jr prevent lead contamination. MAREI is proud to offer this full day seminar where you will receive Community Center your personal RRP Training Certificate. 6200 Martway, Mission The new federal Lead-Based Paint Renovation, Cost: Repair and Painting (RRP) Requirement applies to anyone who performs work that disturbs paint on a Public: $250 house built prior to 1978. This includes Contrac- Members: $225 tors, Landlords, Property Managers, Apartment Managers, Painters, Electricians, Plumbers, Win- Members: $199 dow Installers, Pressure Washers, Realtors, Home Early Price Renovators and many more! Register On Calendar Presented by MAREI & Kachina of Events Online at Date & Time: Self Storage Investing Webinar Wed: 3/9 12:00 pmDid you miss the 1 day workshop? Here’s your last chance to Sat: 3/12 10:00 amget your introduction to Self Storage Investing. Join us at one Cost:of two webinars to get the low down on self storage and how FREE to all, But limitedyou can get in on this Residual Income Producing Business. Phone Lines Register On Calendar Visit the MAREI Calendar of Events of Events Online at For more info & to Register News Page 21
  22. 22. March 5 PHP Credit Scores from Career Education Sys- Workshop tems 1.5 PHP and 3 Hours Continuing Ed March 7 Deadline Reserve a Vendor Table for Monthly Meeting, special price $25 for MAREI Members March 8 Outside Crime Free Housing from the IndependenceCALENDAR Details, Times, Locations, Cost & Registration at March 8 Workshop Monthly Meeting Police Department Fair Housing with Bob Wise and Julie Ander- son - offering 1.5 PHP March 9 Webinar Self Storage Investing: Follow up webinar 2 days to choose from March 11 PHP Contracts Part 1: Basic Contracts covering Workshop KCRAR forms generally utilized 1.5 PHP March 12 Networking Lee’s Summit Investors Networking Breakfast March 12 Webinar Self Storage Investing: Follow up webinar March 14 Networking Advanced Investors Focus Group: By Invita- tion or Application Only March 15 Webinar New Investor Member Orientation, Find out what the benefits are at MAREI March 16 Networking MAREI Commercial Investors Networking Group: March 22 PHP Credit Scores from Career Education Sys- Workshop tems 1.5 PHP and 3 Hours Continuing Ed March 23 PHP Contracts Part 2: Covering forms used in Workshop REO, HUD and Short Sales 1.5 PHP March 29 Committee Government Affairs Committee Meeting March 30 Webinar How to Win in the Generosity Generation March 30 Webinar Click 2 Mail & Mailing List Interface on Pur- chasing Mailing Lists March 30 Networking MAREI Commercial Investors Networking Group: March 31 Webinar Click 2 Mail and Using Mail Merge in Direct Mail Marketing March 31 PHP Contracts Part 3: Advanced Forms and Cre- ating Your Own.Page 22
  23. 23. Monthly MeetingSylvester Powell JrCommunity Center6200 Martway, Mission KS913-722-8200Tuesday March 8 5:30 Set UpDoors open at 5:30 5:40 Q & A Session till 6:00Members: FREEGuest Fees: $25 at door . . 6:00 Industry Partner Expo Pre-register online for $15 Guest Speaker 6:00 Member NetworkingIf guests join with in two days of 7:00 Haves & Wants (Bringthe meeting, their guest fee will be your Deals) Bob Wiseapplied to the membership fee with 7:30 Presentation – Eviction Attorneyproof of payment. Fair Housing 9:00 New Member MO Registration Location PHP Certification Julie Anderson 6200 Martway Mission, KS 66210 Eviction Attorney Park in North Lot KS, MO & NE North of Shawnee Mission Pkwy South of Johnson Dr 2nd from the Building East of Lamar Less Kids & Door Dings Investment News Page 23
  24. 24. Classifieds Complete listings online: www.MAREInet.comOffered As Address City Price Bed/ Contact Phone BathWholesale 7724 Washington Kansas City, MO $39,900 obo 3/1 Rick Zeitun 913-461-8560Wholesale 3806 Wayne Ave Kansas City, MO $8,500 3/1 Christoph Becker 816-419-1165Listing 9220 Oakland Kansas City, MO $45,000 3/1 Kim Tucker 816-523-4400Wholesale 405 W Dartmouth Kansas City, MO $180,000 obo 5 / 3 Joe Reece 816-507-4203Turn Key 4030 Vineyard Rd Kansas City, MO $55,000 4/2 Laura Johnson 732-670-4940Wholesale 4123 Virginia Av Kansas City, MO $7,500 3/1 Christoph Becker 816-419-1165Wholesale 4322 Lister Ave Kansas City, MO $16,500 obo 3/1 Christoph Becker 816-419-1165Listing 10 Turn Key Kansas City, MO $344,000 Varies Eric Deeter 913-579-3354Wholesale 3800 Chestnut Kansas City, MO $33,000 4 / 1.5 Makeba Hart 816-665-0491Wholesale 4737 Norton Cir Kansas City, MO $24,500 3/1 Christoph Becker 816-419-1165Wholesale 4522 Forest Ave Kansas City, MO $13,750 3/1 Christoph Becker 816-419-1165Wholesale 4501 Cypress Ave Kansas City, MO $6,500 2/1 Christoph Becker 816-419-1165L /O Fairway Hills Kansas City, MO $125,000 3/2 Ryan Walls 219-864-1788Wholesale 2500 E 69th St Kansas City, MO $8,500 3/1 Christoph Becker 816-419-1165Wholesale Wanted KCMO 3+ Ben Souchek Not listedWholesale 9517 Newton Kansas City, MO $59,900 3/1 David Ono 816-399-4994Listing 5 Package Kansas City, MO Varies Varies JJ Pawlowski 816-877-8230TFSBO 19 SF Houses Kansas City, MO $695,000 Varies Sunil Jain 913-526-1904Page 24
  25. 25. Wholesalers, submit your properties at: Market your Looking for Investment Properties FSBO Looking for REO homes? Visit my site to sign up for the TURNKEY Most current list of REO properties available! WHOLESALE Real Estate Investor / Agent with experience in Bank Owned, Short Sale, and Rental Properties PAKCAGES LISTINGS Eric Deeter Realty Resource of KC Must Own, Call (913) 579-3354Have Ownership Interest, Or Listing Agreement You must be able to sell Home Depot List in the MAREI  2 % Bi-Annual Rebate for MAREI members Classifieds  Volume Discount Pricing Call me to find out how you can saveFREE Service for Members on your next home renovation! Roger Holyfield (816) 510-9199 Roger_L_Holyfield@HomeDepot.comInvestment News Page 25
  26. 26. Do You ? FREE Tools Microsoft ads tout “to the cloud” but com- petitor Google probably has the most tools that can shut down some older computers, to do your computing in the cloud. just email a link to the web site. When you have a computer and an internet Want to collect contact information on a web connection you can access all of your files page. Using Google Forms you can ask that are stored in the various online files or questions and get answers that are saved “clouds”. Rather than emailing files back on a master spreadsheet and receive an and forth between others in your office when email notification. Great tool for collecting collaborating on a project. Gone are the buyer or seller information. days of needing to carry around all your files on a flash drive or even harder, carrying Need to make an appointment, but you left your computer with you. Just store them on you day planner on the kitchen table. Pull the cloud and access from your home com- up your Google Calendar on your smart puter, your work computer, your iPad, or phone and make the appointment. your smart phone. Ever have an issue with a website not work- To start your own online cloud or company ing on internet explorer or Firefox? Maybe intranet, check out the following on Google: your Facebook page just does not want to Docs, Presentations, Spreadsheets, Gmail, work today? Try it in the Google Chrome Picasa, and You Tube. Browser. Need a cheap, even free phone business Let’s say you accidentally open some online phone number. One option with Google is file or answer yes when you should say no, running your cell phone through their service your computer now will not work correctly or you can obtain a totally new number. Al- and you don’t have the time to go buy an though to get a new number you may have antivirus software and install it, try the Anti- to check in every day for several weeks until virus Products in the Google Pack. one becomes available, but it’s worth it. Want to see when someone mentions you Imagine a totally free phone number that of- or your product online? How about when fers caller id, call screening, transcriptions, someone post the key word “motivated emailed to you or texted to you. seller” and “Kansas city” on “craigslist”? Set Need to market a package of properties? up a Google Alert. Create a Website with Google Sites and Have a seller call with an address and want load up Spreadsheets and Proformas of the to see where the house is, well look it up on property, add in a ton of photos from Picasa, Google Maps, look at the property view and add a video tour from YouTube. Then (Continued on page 27) rather than emailing a pile of attachmentsPage 26
  27. 27. ask them if it is the beige or the or smart phone, search for it on and movies and virtual tours allbrown house and blow their Google Gadgets. for free and then use them tomind. market on all the Social Media Every once in a while, take a Sites. You can also upload toOh yes, don’t forget if you want look at Google Labs and see YouTube. Likewise you canto find just about anything what they are testing out. To- create and do basic video edit-search for it on Google . Have day I see they have ing for video email, virtual tours,a property owner you need to App Investor for Android to al- and quick PR bits. All free, allfind? How about some strange low you to create your own mo- online, and accessible fromphone number that keeps com- bile applications. This sounds anywhere you can get the inter-ing up on your caller id? Need really cool. check out a Guru Speaker?Use the original Google Search And rather than wasting com-Tool Bar and 9 times out of 10 puter file space consider creat-you will find the answer. ing online photo albums and sharing them through GoogleNeed a tool for your computer Picasa. You can create albums Your Complete Website (including hosting) is just Email $39.90 per month Calendar plus a one-time initial setup fee of $39.90 Voice Documents Spreadsheets Photos on Picasa Video on YouTube Forms & Sties Alerts Google Apps Risk Free - No Obligation - No Credit Card Required! Investment News Page 27
  28. 28. informed MAREI targeted group Professionals Of Clients From Motivation to How To Optimization of Your Our Members Excel Marketing DollarsMAREI members are above the MAREI sets the standard for realcrowd. They enjoy a informative estate investor networking andnewsletter, blog, and social me- education, drawing the type ofdia experience. They connect, client you want to do businessask questions, and share oppor- with. Our meetings and onlinetunities through the Member’s presence gathers targets theMessage Board. And they save qualified leads your business$100 using the many member needs. But there is only one waydiscounts. to get in front of them . . become a Business Member today! $99.00 / year $499.00 / year Additional Member $50 Includes Advertising INVESTOR BUSINESS MEMBERSHIP MEMBERSHIP See the Membership Benefits tab under Membership See the Business Benefits tab under Membership on on our web site at for more our website at for more info or info and look for our orientation webinar on the call the office at 913-815-0111 . calendar of events.