The Investment News: November 2010


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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: November 2010

  1. 1. U November 2010 MEMBER D ISCOUNTS PAGE ............. 14 u E FFECTIVE PITCH PAGE .......... 8 u MONTHLY N OVEMBER 9 MEETING PAGE ............. Investment 2NEWSLETTER OFMID-AMERICA ASSOCIATION OFREAL ESTATE INVESTORS newsFor Real Estate Investors & Property OwnersPRESCREENING CONTRACTORSMany real estate investors shy away from the uglyhouse business because they fear hiring contractors.We have all heard the horror stories of rehabberswho loose their shirt because a contractor took themto the cleaners.With our article on Page 10 from the Queen of Rehab,Robyn Thompson we find out 8 simple things weneed to keep in mind when we are out hiring a con-tractor. Member Tool Box You paid your dues, but are you getting all you can out of your membership with MAREI. Check out just a few of our member discounts available to all members on pages 14 and 15. Save money on insurance, buy leads, stay up to date on real estate investing, market your rentals, collect checks electronically, screen your tenants, collect on bad checks, send a few emails, save on ship- ping, save on office supplies, and save on your building supplies. And that’s just a small portion of member benefits. Then watch the Tool Box Page on the web site for many new tools and discounts.
  2. 2. SPEED NETWORKING - Nov. 9th Come prepared . . . This is a Working Meeting! Preparation: Agenda:  Have 50-60 Business Cards 5:30 Member‟s Only: Water Dept  Prepare 30 Second Pitch 6:00 Registration & Expo  Practice Your Pitch 6:00 Informal Networking  Optional: Bring Flyers 7:00 Announcements 7:15 Speed Networking Mechanics: Room will be set up with 2 rows Location: of chairs facing each other. Sylvester Powell Jr Community We will pair off in the chairs and Center at 6200 Martway in Mis- exchange pitches, cards, flyers. sion KS, park on North Side, Time keeper will start us, we 2nd lot from the building. change speakers after first 50 seconds, we will change part- Cost: ners after 2nd 50 seconds. Free for Members Then we repeat over and over $25 at door again through out rest of meet- ing. Interested in learning more about creative fi- nancing? Be sure to at- November2Meeting tend the day Bootcamp Holiday Networking Party with Don DeRosa & Pete Speed Networking Youngs, they will talk for December about creative financing! Back by Popular Demand And be sure to watch for Location to be Determined upcoming meetings of MAREI’s new subgroup.Page 2
  3. 3. Contents MAREI News In This Issue November Meeting 2 Visit Our Web Site Contents 3 MAREI Staff 5 In the News This Month Member Pics 7 Blog 4 Simple Steps to an Effective Pitch 8 How to Prescreen Contractors 10 Properties Is it Safe to Buy Foreclosure 12 Message Board Title Policy “Indemnification” 13Business Associates Membership Has it’s Privileges 14 8 Measures of Success for website 16 Vendors Market Update 18 A Home Rehab: Live in Prairie Village 20 Calendar 22 Investment Opportunities 24 Features ‫ ׀‬November 2010 Do you need Where should Advertiser’s Directory to boost your you invest in 2011. Review T.O.T.L. Renovations 11 21 business in current market Accurate Title 13 Realty Resource 25 2011? Check data and26 out Vendor and Business 18 trends and start planning MAREI Vendors MAREI Vendors 14 15 Home Depot MAREI Memberships 25 26 Associate Op- for the future 17 CybrCollect 28 portunities Rockstar Investor 17Investment News Page 3
  4. 4. Organization MAREI Notes Contact Information Mailing Address 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 investing and to protect and promote the best interest of our membership through educational and networking opportunities as well as community, legislative and public relations. Legal Disclaimer MAREI does not exist to render and does not give legal, tax, economic or investment advice and dis- claims 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 con- cerning real estate and other investments. Content Disclaimer The views and opinions expressed by authors of articles contributed to this newsletter do not necessar- ily reflect those of the association, the board of directors or the staff. Advertise in the Investment News Reach more than 1000 active real Rate Schedule estate investors monthly! 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 407-328-7773 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.comRobin Sage 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 Notes In the News This Month Here in the Midwest on election day, we had Kansas City’s quarter-cent public safety tax some issues on the ballot that could have passed. So sales tax will not be going down some affect on real estate business in the fu- anytime soon. ture. ——————————— Missouri Amendment 1: Passed We also have some pending legislation that This will change the Missouri Constitution to you need to pay close attention. require counties to elect their county asses- H.R. 6133 the “Prompt Decision for Quali- sors, Jackson County currently appoints. Pro- fication of Short Sale Act of 2010” if en- ponents say that electing assessors would acted would require lenders and mortgage make them more accountable to make fairer servicers to respond to short sale offers within assessments of property values. May make forty-five days of receipt of the offer. If the Jackson County property tax assessments Lender or mortgage servicer failed to respond more in line with values. to the short sale offer with in the time limit, Missouri Amendment 2: Passed the offer would be consider to have been ap- proved by the lender or mortgage servicer. Will exempt former prisoners of war from pay- ing property taxes on the property where they ——————————— live. As Real Estate Investors we are currently suf- Missouri Amendment 3: Passed fering from legislation without representation here in Kansas and Missouri. We do not cur- This amendment prohibits the legislature from rently have a lobbyist or entity truly watching enacting a transfer tax on the sale or transfer out for our interest at the state and local level. of properties. MAREI and our volunteers are working hard to Missouri Proposition A: Passed fill that void, but we need your help. This amendment will require that Kansas City Your membership and involvement and mem- and St Louis hold a vote in 2011 and every bership dollars help support our growth. With five years after that to determine if the city the growth of MAREI, local and state leaders earnings taxes will continue. If the taxes were take notice as we represent 100’s of people, rejected, they would be phased out at one- 1000’s of rental units, and $1000s in tax dol- tenth of a percent per year. Will also require lars. But joining MAREI, keeping your dues a vote in any other Missouri City that proposed current, and getting involved, your voice will an earnings tax in that city. Could have an be heard. We are adding in 2011 an optional, affect in 2011 if voters determine it should be extra fee on our membership forms to help repealed, phase out would start and new taxes support legislative action. elsewhere could result.Page 6
  7. 7. Please help, we need an official photographer or videographer for the meetings! And Better Pics! Get Involved Admission to Monthly Meeting . . . Free (For Members) Volunteering Monthly at the General meeting October Meeting Pics Acquiring enough MAREI Bucks to pay for Membership Volunteer in MAREI Office Real Live Working Real Estate Investor Office Sponsor a Sub Group Your own Private Coaching Group Teach a Class Be the Expert in Your Field Join a Committee Give Back For more information on becoming a volunteer, Contact Kim Tucker, Director, At or call 816-523-4400 x 222Investment News Page 7
  8. 8. Jason Wheeler 4 Simple Steps To an Effective Pitch . . . 4 Simple Steps to an Effective Business Ele- It is not a “sales pitch." on your product or vator Pitch or Personal Brand service. A great formula that I have found effective that can work for just about any When you are an entrepreneur or a Real Es- business can be found in these simple tate Investor it can be very difficult to ask steps. that age old question "What do you do?" One of my favorite blogs and a good mentor What an "Elevator Pitch" Is to anyone that builds their business by refer- To me it is a quick way of finding out if you ral has some pretty good advice on how to can strike curiosity into the person you are address this simple but not always easy talking to in order to created a referral, con- question. nection or an appointment. Networking Now Says 1. Identify who you can help by starting When someone asks you what you do, with… I show people who (need to save what are the first words out of your money, want to buy real estate, want to own mouth? If the words aren’t ready to roll their home, can‟t get a mortgage,) off your tongue, then read on . . . 2. Identify what you can help them When someone asks you what you do, with…. how they can (increase their reve- make sure you’re ready with a response that nue, income, own a home, pay less on their is succinct but memorable. The attention mortgage) span of the average adult is only 20 sec- 3. Identify why they can benefit... so they onds; a long, drawn-out answer to the ques- can (have more time freedom, enjoy home tion isn’t’t going to work. ownership, reap tax benefits, spend more Focus on creating a unique selling time with family) proposition (USP)–a mini commercial 4. Ask if they know anyone like that… that you can readily use while network- end with a question or ask for a refer- ing. I think of this as a personal answer to ral. the age-old “Whattaya do?” question, which we’ve all been asked about a million and a Here is a finished example of an effective half times. elevator speech: Many in business call this the Personal Info- I use this all the time in the current real es- mercial or Elevator Pitch. (You should get tate market. Let‟s say I‟m having a casual your point across in the time you take an glass of wine and unwinding at the local res- elevator with someone) taurant and I strike up a conversation. Very often the conversation leads to the age old What an “Elevator Pitch” is not: (Continued on page 9)Page 8
  9. 9. (Continued from page 8) learn more about you. I promise if you usequestion "What do you do?" this formula in your I could say… "I show eve- business you will have ryday people how they can more success. Try it buy real estate without the out for a while and let hassle of a bank, so they me know what you can enjoy home ownership think. and all of it’s benefits. Do you know anyone that is If you find this informa- having trouble with their real tion helpful please share it with you social estate right now?" networks, tweet it andYou would be surprised on this feel free to ask meone liner will open a conversa- questions or add your own Ele-tion, create a referral or maybe vator speech style in the com- Article Contributed by Jasonthe person you are talking to ments section below! Wheeler fromwould love to learn more. The Con-point is it is not hard selling and nect with Jason on Facebook &it opens a door for somebody to Twitter or give him a call at 925 Your Pitch1. Identify who you can help by starting with . . . I show people who (want to buy real estate, need to sell their home, want hands off real estate investing options.)2. Identify what you can help them with . . . How they can (increase their revenue, income, sell fast, earn 10% interest on real estate)3. Identify why they can benefit . . . (have more time, freedom, enjoy home ownership, reap tax benefits, spend more time with family)4. Ask if they know anyone that . . . End with a question or ask for a referral. Start a conversation in regular net- working. Exchange business card when speed networking. Investment News Page 9
  10. 10. Rehab How to Prescreen Contractors How to Prescreen Contractors to Build a Dream Team to Get the Job Done! By Robyn Thompson Many real estate investors shy away from the ugly house business because they fear hiring contractors. We have all heard the horror stories of rehabbers who loose their shirt because a contractor took them to the cleaners. I am here to tell you that contractors can be your worst enemy or your best friend, depending if you hire a good one or a bad one. So how can the beginning novice real estate investor make the correct choice- owner and should have been completed in a timely the hard working team player that gets the job done manner. on time, on budget and at a high standard of quality? The answer is by following all eight of the critical pre- If any of the references don‟t checkout, do not screening steps below. hire this contractor. If they gave you false in- formation upfront, you know they can not be 1. Ask the contractor you are interviewing, how long trusted. Move on to the NEXT quote. they have been in the business? I prefer at least five years of experience in the trades. I want a 3. Ask for a copy of the contractor‟s license (if re- contractor who has seen and repaired every quired in your state) and for a copy of their work- strange, odd, and crazy thing that could be wrong man‟s comp insurance. Once you receive a copy of with a house. Experienced contractors know how their license, make sure to check that they are not to estimate all tough projects and experienced suspended. Also check to see if any complaints professionals can give an accurate price to fix any have been filed against the contractor with the Bet- problem. ter Business Bureau. Inexperienced contractors, on the other hand, It is absolutely mandatory that a contractor under estimate repairs to get the business, prove that he or she has workman‟s comp for and then they try to push their mistake on the all the employees that will be working on the home owner by upping the price half way job site, before they start renovations. Why is through construction. The investor needs to this so important? Well, if one of the workers say NO. NO is the most powerful word in the has an accident, you do not want to be sued as dictionary, and a rehabber needs to use this a potential employer. tool. If they did not have the knowledge to 4. Make the contractor pull all necessary permits re- make a good estimate, it is there problem not quired by your local building department. The yours. homeowner should NEVER pull the permits. The 2. Ask for three references from the last three major contractor should also be responsible to pass all projects that the contractor has recently com- necessary inspections required throughout the con- pleted. Once you receive the reference letters, struction process so a certificate of occupancy make sure you call to verify the references and (CO) can be obtained when construction is com- the quality of the workmanship performed. The plete. quality of work should be satisfactory to the home- (Continued on page 11)Page 10
  11. 11. 5. The real estate investor should make it mandatory for all contrac- tors to buy all necessary materials to do the renovations. The inves- tor should never waste their valu- able time buying materials. If the investor buys the materials, the workers could be viewed as the NEED TO FLIP A home owner‟s employees per the IRS guidelines. You do not want PROPERTY FAST? this.6. The real estate investor should T.O.T.L. RENOVATIONS always demand a six month to one year warranty of all parts, la- Top of the Line Renovations for all your bor, workmanship, and materials rehab needs quickly, at a reasonable price. provided by the contractor. This warranty should be in writing. WARNING: If a contractor will not We specialize in: Licensed and Insured provide a warranty and stand be- Make-ready hind the quality of his or her work- Siding & Windows Call Anthony @ 816-606-0266 manship- DO NOT hire them! Carpentry & Roofing or Emily @ 816-252-0095 Plumbing and Electrical Totlrenovations@comcast.net7. Real estate investors should Painting & Flooring never agree to pay any contractor Drywall & Doors by the hour. You pay a fixed price Fences & Decks for the complete job. Never pay Kitchens & Baths the final payment in your inde- pendent contractor agreement until the project is 100% complete.8. Ask for financial references (ex: where the contractor purchases TE-TEE LIGHT ELECTRICAL SERVICES materials). I will contact the supply houses to make sure the contrac- Keeping you “In-Powered” with tor is not behind on paying for ma- Superior Electrical Service! terials because I do not want to give the contractor a check to  FREE Estimates payoff an old bill and they have no  FREE Consultations on Non-Emergency money for the materials they need to buy for my job.  24-hour Same Day Emergency ServiceThe last words of advice that I cangive to anyone beginning a renovation Licensed, Insured, Bondedproject is to make sure every agree- Serving Kansas & Missouriment with a contractor is detailed inwriting with an independent contractoragreement. A detailed list of materials George Z. Bai, Sr. - Ownerrequired should be listed in compre-hensive scope of work. The docu- Office (816) 356-1870ments should have work completion Cell (816) 210-4710time frames, penalty clauses for finish-ing late, require all permits be pulled TeTeeLight@gmail.comand inspections completed before fi-nal payments are released. Investment News Page 11
  12. 12. Is it Safe to buy foreclosures In light of the recent questions sur- a three way negotiation between the rounding the processing of foreclo- buyer, the seller and the lender, it sures, Rick Sharga from Realty Trac should be safe. The seller, the person commented on whether it’s still safe to who may potentially may be in foreclo- buy properties in various stages of sure, is agreeing to the sale and sign- foreclosure — from pre-foreclosure ing off on the sale, so you should be (short sale) to courthouse auction to safe in buying in this situation. bank-owned REO. When looking at bank owned or real He took a look at buying 3 different estate owned (REO), he assures us types of foreclosures including short that we again should be comfortable in sales, bank owned properties and then the purchase. The bank owner is not homes at the sheriff’s sale or court- going to put the home on the market house sale. until they have all their paperwork in order and will be providing you with a Starting with short sales, because it is clear and marketable title. Be sure that you do have YOUR title com- pany review and make sure you have the proper coverage. He did urge caution in buying homes at the typical courthouse foreclosure auction. The risk being that you are paying all cash, right now, and there is no recourse. If you buy a deal and cannot easily get clear and marketable title, your cash is tied up until it can be cleared.Page 12
  13. 13. Title Policy “Indemnification”Old Republic International, First on a case by case basis. Ex- overturn a foreclosure, the in-American Financial, and Stew- amine everything before writing demnification would have alsoart Information Services – the a title insurance policy for the covered the title company‟s le-three major title insurance com- lender or the owner. gal fees. So expect longer thanpanies said in conference calls usual time frames for obtaining Note that while lenders willwith Wall Street on Thursday a title policy in the case of a most likely have to compensatethat they will not demand writ- bank foreclosure. both the title company and theten indemnifications from lend- new owner if a court were toers reselling foreclosed homes.They had drafted such indemni-fications earlier this month as away to keep the foreclosedhome marketed working despitethe uncertainty of legal title. Accurate Title CompanyIndemnifications are offered as “When You Need Timely,a way to cover the title insurer‟s Top-Quality Service . . . “legal fees and other expenses  Owners and Loan Policiesshould a court overturn the  Endorsementsforeclosed due to mishandled  Ownership & Encumbrance Reportspaperwork or other legalities.  Foreclosure Reports  Ownership InformationSome of the banks and other  Tax Informationlenders were resisting taking on  Buyer‟s Closing Servicesthis additional liability and  Seller‟s Closing Services  Lender‟s Closing Servicesthreatened to take their busi-  Recording Servicesness to a different title company  Funds Disbursement Services www.AccurateTitleCo.comrather than offer indemnifica-  1031 Exchange Services 913-338-0100 phone  Special Requests 913-338-0107 faxtion.For now the title insurers aregoing to take each home sale Investment News Page 13
  14. 14. Benefits Membership Has Privileges! Insurance Provider Benefits National Real Estate Insurance Group was built specifically to address the unique needs of the real estate investor. They provide a wide array of exclusive programs and policies, including coverage for properties in the process of being rehabbed, vacant and multi-family dwellings, hotels and retail or office spaces. Literally, all insurance for the real estate investor to help you fund the best insur- ance solution for all of your real estate needs! MAREI members get FREE QUOTES and access to the EXCLU- SIVE program, developed by NREIG with American Modern Insurance Group. As active members of MAREI since 2004, Accurate Title Com- pany has provided smooth real estate transactions. From Title Searches, Policies, Foreclosure Reports, Closing Services to Funds Disbursement and 1031 Exchange, Accurate Title Customers have access to the services they need. Util- ize their 24/7 Paperless Closer System to order title, access your documents and get an updated status on your transaction. Find out more about Accurate Title and their services online at or call 913- 338-0100. Investor Resources EZData Group is a provider of current foreclosure and short sale leads. Offer- ing data in Jackson County Missouri and St Louis, they provide foreclosure notice data in an online database. In other ar- eas consider their other services for lists of probate leads, Pre-Notice of default, Free and Clear and other owner- ship data. Please visit our web site at Personal Real Estate Investor Magazine is Americas leading real estate investment magazine available at newsstands everywhere. Personal Real Estate Investor Magazine is dedicated to helping individuals find, make, and save money on their real estate investments. Discount available in MAREI member area. Landlord Resources Receive 20% off standard listings at - an online busi- ness tool designed to rent your property faster and maximize your investment. List easily, edit anytime, reach millions of qualified rent- ers and save yourself from future hassles with archive capabilities - when your property is rented, your property details and photos are archived so you can reactivate it anytime. Discount Code in the MAREI member libraryPage 14
  15. 15. Accept check payments easily, electronically and on a recurring basis with Solveras Payment Solutions! Take advantage of their ACH/eCheck processing, simple web payment tools, remote check deposit and credit card processing. Take Control of your customer payments instead of waiting to collect. Let Solveras check payment services liberate your front office.Preferred access to First Advantage SafeRents Residential Property Professional (RPP) SM. RRPis a comprehensive suite of resident screening services designed to fit the unique needs of the realestate investor and rental property owners who are infrequent users of these specific services. Na-tional REIA members can choose from three powerful, user selectable packages that provide land-lords with a comprehensive picture of their prospective residents and indicates their likelihood of ful-filling their lease obligation. Electronic Collection of Bounced Rent Checks! CybrCollect offers this service free to landlords and believes that your times is too important to spend trying to collect bad rent checks. BY using a special endorsement to deposit checks, bounced checks are no longer returned to your bank where you would be charged a bank bounce fee (typically $30 to$30). Instead bounced checks are routed from the Federal Reserve directly to CybrCollect for a $2 capped fee, wherechecks under $2,500 are converted to an electronic transaction. Everyday CybrCollect contacts every bank for every check.When funds are available your check is electronically collected and deposited in your bank account the same day - AT NOCHARGE TO YOU!Business ResourcesConstant Contact and MAREI have teamed up to give you some of the biggest discounts on Con-stant Contacts Email Marketing to help you stay in touch with your customers. Get 15% off for sixmonths when you pre-pay. Get 20% off for a year when you pre-pay. More info, including a free 60 day trial The National REIA Discount Shipping Program! Through our agreement with PartnerShip, which developed and manages the program, enrolled local and national members receive significant inbound and outbound discounts on small package shipments through FedEx, as well as copying and printing services through FedEx Office. Discounts of up to 22%. More info in MAREI member area.Office Max has created a National Total Solution Purchasing Program for you.OfficeMax is the National REIA preferred vendor for office supplies, furniture, tech-nology, paper and print services. Their mission is to meet your supply needs for thelong term while offering savings up to 65%. Find our special web site and in storediscount card in the MAREI member area.Property Resources Home Depot has teamed up with National REIA for an exclusive benefit to our members. Register to receive a 2% bi-annual rebate on all purchases made at Home Depot. Plus visit save even more with their volume pricing discounts through the prodesk. Rebate registration instructions are in the MAREI member area. One of our most popular and frequently used benefits, Sherwin-Williams offers unbeatable pricing to National REIA members. Enjoy deep discounts on paint, applicators, floor covering,paint sundries, wall covering, spray equipment, and even window treatments! Your discount card will bemailed to you in your membership packagePlus other discounts: Free Bandit Signs, 75% off on printing at Vista Print, travel discounts, rental car dis-counts, and more. Log into the MAREI member area and click on Member Discounts. Investment News Page 15
  16. 16. Marketing 8 Measures of Success for website . . As a Real Estate Professional you are very busy run- niche that they can request. Write though provok- ning your day to day business be it finding more moti- ing articles that will solicit a comment. vated sellers, getting homes rented up, marketing prop- 5. Navigation: How hard is it to use your site. Is it erties, writing loans, or performing appraisals. But to easy to find out who you are, what you offer, how to grow your business, you need to be on the web and contact you, as well as access all your resources. your web site needs to be doing it‟s job: attracting traf- As your site grows, you need to go back and review fic, engaging your visitors, and converting visitors into the navigation to make sure it still makes sense. customers. 6. Privacy: Visitors don‟t want to reveal who they are There are many reasons why many of our web sites are just to navigate around your site. Yes you would not reaching their full potential . . . They may not be of- really like their info, but make it optional, most will fering the right content or have a confusing design. still give you some. Be sure to reassure them that Here are a few tips to drive traffic, engage your visitors, any information the do share is for you alone, it is and convert them into clients. not sold or distributed to marketers. 1. Branding and Targeting: Many web sites try to be 7. Promotion: Keep in mind that some of your custom- all things for all people, so they talk in broad gener- ers may never find you through search engines, so alities. Your site needs to differentiate itself and all the optimization in the world may not help you show your specific target market. As we talk about reach these people. Think about ways you can pro- our 30 second pitch this month, keep this in mind mote your site, so your target market can find you. when targeting your web site. What can you personally do to lure clients to your site, rather than hoping that a search engine will 2. Design: Just because it looks pretty, does not help them “accidentally” land on your page. mean it actually works. Your design needs to keep your target market in mind, be consistent in it‟s 8. Tracking: As with any and all marketing, be sure to branding and be functional. You know where every- track your results. Many sites offer tracking of how thing is but can your customers find it quickly, re- many clicks on what page per day and you can also member their average attention span is about 20 use outside sources like Google Analytics. So if seconds, so if they can‟t find it they will go to the you send out a marketing to drive traffic to your site, next site. check your traffic for that day, week, or month to see how the marketing is working. 3. Content: Remember the primary purpose of your content should be to catch their interest and answer Now take these 8 things and go take a look at your web their question “What‟s in it for me?”. You need to site. Is it doing what you think it should or do you need provide articles and resources that will interest your to make some changes. Before you go off half cocked client and have eye catching headlines so they will and start making your own changes or paying a web click to read more. designer to get busy, spend some time planning. 4. Interactivity: You want your visitors to interact, to Your plan needs to take all of these 8 items into consid- raise their hand so to speak and let you know they eration, be written out, and include your vision of who were there. Offer a unique report that targets your (Continued on page 17)Page 16
  17. 17. Your Complete Website (including hosting) is just $39.90 per month plus a one-time initial setup fee of $39.90your niche market is, what it should looklike, your branding, and how you canengage your visitors. As Michael Go to www.FREETrialWebsite.infoRusser, Risk Free - No Obligation - No Credit Card Required!Mr. Internet from writes, agood web site is “90 percent planningand 10 percent building and execution.”He also provides several sample web PRIVATE LENDERsites that do well in all of the 8 points wehave discussed here today. They are Locally Owned & Operated Private Money LenderRealtor centered, but can give you an We are a Direct Lender, not a Brokeridea of things to do in your own field:  Rehab Loans up to 100% of Costs  Up to 65% of the After Repaired Value  Terms from 30 Days to 1 Year  Rates from 12 to 16% Interest Only  Points from 6 to 10 in Lieu of Equity  Appraisals Required Draw Requests on Wed. Paid on Friday RockStarInvestor.comSo start analyzing your web site and Jeff Baslermaking plans and in a few months, youcan start making changes. If you don‟t 913-221-9080yet have a web site, get busy and startresearching and assembling your re-sources you want to offer your clients.You might start with frequent questionsyour clients have for you and provideresources to answer those questions.For more resources from Mr. Internet,go to Investment News Page 17
  18. 18. Trends Market Update National Review housing boom in 2005.” “In addition, home prices are running about 22 percent less than five years ago when they were bid up by the biggest housing The National Association of Realtors report that exist- rush on record,” she added. ing-home sales rose again in September, thus affirm- ing that a sales recovery has begun across the coun- She illustrated the huge jump in housing affordability try. by pointing out that the median monthly mortgage payment for a recently financed property is several Existing home sales which is made up single family, hundred dollars lower than it was five years ago and townhomes, condos and co-ops rose 10 percent to a in many cases it is less than what people are paying seasonally adjusted annual rate of 4.53 million in for rent. September from a downwardly revised 4.12 million in August, but remain 19.1 percent below the 5.60 mil- But while lending is strong for the first time home lion-unit pace in September 2009 when first-time buy- buyer, move up buyers are being very cautions and ers were ramping up in advance of the initial deadline often refinancing the homes they have rather than for the tax credit last November. moving up. And lending for investors is still hard to find. But for investors who can tap into conventional To see their data go to: financing, use other assets as collateral, or find pri- vate lenders, you can tap into these current low prices to offset losses from past years. NAR‟s chief economist, Lawrence Yun tells us that the housing market is still in the early stages of re- Total housing inventory at the end of September fell covering, but it will be “choppy at times depending on 1.9 percent to 4.04 million existing homes available the duration and impact of a foreclosure moratorium.” for sale, which represents a 10.7-month supply at the But he predicts that we should see a gradual rising current sales pace, down from a 12-month supply in trend in home sales with buyers using the historically August. Raw unsold inventory is 11.7 percent below low interest rates and very favorable pricing. the record of 4.58 million in July 2008. Those historic lows according to Freddie Mac for a We still have vacant homes, Bank Owned Homes, 30 year, conventional fixed rate mortgage fell to a and Short Sales on the market that we need to work record low of 4.35 percent in September, down from through as quickly as possible with new home own- 4.43 in August of this year and a 5.06 rate in Septem- ers. Yun said “Inventory remains elevated and con- ber of 2009. tinues to favor buyers over sellers. A normal sea- With distressed homes accounting for 35 percent of sonal decline in inventory is expected through the all sales in September up from 34 percent in August upcoming months.” of this year and 29% in September of last year, we If you are buying to rehab and sell, take note that saw the national median price for existing-homes at a parallel NAR practitioner survey shows first-time buy- 2.4percent lower price than 2009. Currently at ers purchased 32 percent of homes in September, $171,700. almost unchanged from 31 percent in August. So We need to keep in mind as Home Buyers and as focus your effort on first time buyer homes. Investors Real Estate investors that current mortgage rates are were at an 18 percent market share in September, almost more than 1/2 of what we had a decade ago. down from 21 percent in August; the balance of pur- NAR President Vicki Cox Golder pointed out this fact chases were by repeat buyers. All-cash sales were in addition we have interest rates at “about one-and-a at 29 percent in September compared with 28 per- -half percentage points lower than the peak of the cent in August, so if you are wholesaling distressedPage 18
  19. 19. (Continued from page 18)properties, you will still be sellinghouses. Market Experts WantedSingle-family home sales increased10 percent to a seasonally adjusted Are you an expert on the market in your area orannual rate of 3.97 million in Septem-ber from a pace of 3.61 million in Au- field of expertise? We are looking for experts ongust, but are 19.5 percent below the4.93 million level in September 2009. Residential, Apartments, and Commercial toThe median existing single-familyhome price was $172,600 in Septem- contribute to the newsletter, the blog, and theber, down 1.9 percent from a year meeting. Be seen an expert in your Niche.ago.Existing condominium and co-op Contact info@MAREInet.comsales rose 9.8 percent to a seasonallyadjusted annual rate of 560,000 inSeptember from 510,000 in August,but are 16.2 percent lower than the668,000-unit level one year ago. Themedian existing condo price was$165,400 in September, down 6.2percent from September 2009.Existing-home sales by region: Locally home prices are up slightly over last month. Home sales are Market Stats ResourcesNortheast – increased 10.1 percent to down slightly. New Home Inventory isan annual pace of 760,000 in Septem- down. Existing Home Inventory is RealTrends.comber but are 20.8 percent below Septem- down from last month, but still up overber 2009. The median price in the last year. And over all we still have MAREI members have ac-Northeast was $239,200, which is 1.4 about an 8.7 Month Supply of homes cess to the current Realpercent below a year ago. on the market, keeping us in a buyer‟s market. Trends Newsletter in theMidwest – jumped 14.5 percent inSeptember to a level of 950,000 but We have seen home traffic slow down Member Libraryare 26.4 percent below a year ago. across the metro since after the endThe median price in the Midwest was of the tax credit in April with a sever$139,700, down 5.2 percent from drop in May and a very slow riseSeptember 2009. across the summer in sales numbers. KCRAR Data And we are heading into the tradition-South – sales rose 10.6 percent to an ally slow market time in Kansas City of pace of 1.77 million in Septem- November and December when home market-statisticsber but are 14.9 percent lower than Sep- buyers and sellers are busy with Holi-tember 2009. The median price in the days.South was $149,500, down 2.6 percentfrom a year ago. As you plan your real estate investing in 2011, be sure to look at trends. National Association ofWest – increased 5.0 percent to an The successful real estate investor Realtorsannual level of 1.05 million in Septem- changes and adapts as the marketber but are 16.7 percent below a yearago. The median price in the West was changes. This last housing downturn saw a huge number of investors leav-$213,600, which is 4.9 percent lower ing the business because of their in- research/research/ehspagethan September 2009. ability to adapt.Source: NAR Investment News Page 18
  20. 20. Renovations A Home Rehab Live:Prairie Village MAREI member Don Tucker is renovating a home in because the BPO value was much higher, but be- Prairie Village. He and his team will be blogging the cause the Banker friend came to the house and got rehab that officially started this week with the trash to see, feel and taste, she was much more inclined to out of the home and the cutting down of trees. consider our low offer. Visit to watch the Don‟s wife Kim, a Realtor with extensive experience progress. in BPO‟s offered up a BPO to the banker friend along with photos and a repair list. Kim‟s assessment was  Before and after photos and video that it would probably sell for about $115,000 with all  Analysis of why repairs are made the trash removed, all the carpet and pad removed, and the door needed to be secured.  Analysis of fixtures and finishes So what was Don‟s offer on the home? So a little back story on this home. One of Don‟s good friends works at a local bank and her job is to $80,000, closing in a week, no further inspections. foreclose and sell homes. She had a home she had been working over 5 years on keeping current, and Remember the Realtor‟s BPO said $125,000, Kim‟s finally foreclosed on it at the beginning of 2010 and BPO said $115,000. If you factor in about $1,000 for took almost the entire year to get the former owners trash out and clean up, $6,900 in Realtor fees, hold- evicted. She had planned on having the home ing costs for a minimum of another 2 months, and the spruced up and listed by a local Realtor. But as the what ifs that could come up in inspection, the bank home came up often in conversation, Don convinced countered Don at $82,000. Not bad. her to let him give her a bid on the house if it turned out it needed more than a little polishing. So what was the rough estimate of rehab needed on this home? The eviction became final and the day came that the former owners moved out and Don‟s friend took pos- Between $80,000 and $90,000 including: session. The potential Realtor took possession and was to give Don a call to let him know he could get in  Reinstallation of Foundation repairs to look at it, but the Realtor failed to do that, big mis-  Grading and Drainage around outside of home take on his part.  Removal of a lot of Trees  Replacement of the Roof and Gutters The Realtor provided a BPO price „as is” of $120,000  Replacement of all Windows to $125,000 and an as repaired price of around  Replacement of all Heating & Air $229,000, but he was not real comfortable with the  Replacement and Upgrade of Kitchen value as the home needed extensive rehab, he  Replacement and Upgrade of both Baths wanted to get a 2nd opinion.  All new Exterior Doors & Garage Door  New Exterior Siding In the mean time, Don‟s banker friend met Don at  Rebuilding of One Exterior Wall the house to let him in. She got to see and SMELL  New Subfloors the house first hand. Had the Realtor showed Don  Replacement of Plumbing Lines with Pex the property, his low offer may have been tossed outPage 20
  21. 21.  Removal of Wallpaper & SMELL (did we mention it stinks) New Tile in Kitchen & Bath New Carpet in Family Room & 2nd Floor The list goes on and onThe time frame for this home renovation should be about5 to 6 weeks with good weather, although the schedulewill be impacted by two National Holidays with Thanks-giving and Christmas.By the numbersAfter Repair Value $129,000 (+/- $10,000)Repairs $ 90,000Taxes $ 1,0004 Months Insurance $ 4004 Months Utilities $ 800Marketing Fees $ 500Real Estate Commission $ 7,740Seller Concessions $ 3,500Potential Profit $ 25,000So are you ready to come along for the ride?Here‟s what you need to do Go to Look for the email subscription box Enter the email where you want posts sentRehab information should start posting this week end onNovember 6th, please watch for it. Wholesalers, submit your properties at: Investment News Page 21
  22. 22. Calendar Upcoming Events MAREI Monthly Meeting MAREI meets for networking & Nov education on the 2nd Tuesday of the month from 6pm to 9 Monthly pm. At the Sylvester Powell Jr Community Center. No Charge for Members, Guests $25 at the door, $15 if pre- 9 Meeting registered. Nov Must have your Vendor Table Reserved by Noon. Re- serve a table at tonight‟s meeting to connect and network Vendor Tables with a targeted market of Real Estate Professionals. See 9 calendar on at to reserve.Children & College Students Lee’s Summit Investor Breakfast Lee‟s Summit Investors Nov Networking Group meets the 2nd Saturday of the month forIs your child interested in real coffee, breakfast, and conversation at the Panera Bread on 13 estate? Is ready to learn? Chipman in Lee‟s Summit. Open to MAREI Members & Add your child aged 12 to 18 Guests. to your membership. NovCollege Students with student Sub Group: MAREI‟s Commercial Investors meet every ID, we have internships other week. This month on October 6th & 20th. This group available. Work in the is for MAREI members and their guest. See online calen- 17 dar of events for more information. MAREI office for $10 in MAREI bucks to use for Membership & Workshops December Monthly Meeting - is replaced with an informal Contact Dec Holiday networking holiday party. Location to be determinedMAREI Office for more info. Networking 14 PartyPage 22
  23. 23. Monthly MeetingSylvester Powell JrCommunity Center6200 Martway, Mission KS913-722-8200Tuesday, Nov 9 5:30 Member‟s Only -Doors open at 5:30 let‟s talk KCMO WaterMembers: FREE 5:45 Set Up / RegistrationGuest Fees: $25 at door . . 6:00 Industry Partner Expo Pre-register online for $15 Invite your friends 6:00 Member Networking colleagues to visit theIf guests join with in two days of 7:00 Haves & Wants (Bringthe meeting, their guest fee will be your Deals) Monthly Meeting forapplied to the membership fee with 7:30 Round Table - with a Guest Passproof of payment. How I Did the Deal (available online atPlease call 816-523-4400 x 222. 9:00 New Member Registration Location For each new member you 6200 Martway refer, earn MAREI Bucks Mission, KS 66210 which can be used towards seminars, advertising, North of Shawnee Mission Pkwy Park in North Lot or membership fees. South of Johnson Dr 2nd from the Building East of Lamar Less Kids & Door Dings Investment News Page 23
  24. 24. Properties Investment Opportunity Address City Offered as Price Info Contact Phone 1030 Park Kansas City, Mo Renovated $69,900 Bank Owned JJ Pawlowski 816-916-4593 4311 Flora Kansas City, MO Renovated $7,000 Bank Owned JJ Pawlowski 816-916-4593 7208 E 100th Tr Kansas City, MO Renovated/ Rented $108,900 Bank Owned JJ Pawlowski 816-916-4593 13415 Spring St Grandview, MO Bank Owned $89,900 100% Financing JJ Pawlowski 816-916-4593 1301 E 59th St Kansas City, MO Updated $95,000 Bank Owned JJ Pawlowski 816-916-4593 3933 Wyandotte Kansas City, Mo Updated / Rented $142,000 100% Financing JJ Pawlowski 816-916-4593 5044 Walrond Kansas City, Mo Rehab / Rental $14,500 $5k Repairs Christoph Becker 816-419-1165 6101 Agnes Kansas City, MO Rehab / Rental $23,500 $5k Repairs Christoph Becker 816-419-1165 5712 Wabash Kansas City, MO Rehab / Rental $14,500 $5k Repairs Christoph Becker 816-419-1165 Duplexes Gardner, KS Rented $100k Each $600 rent / unit Jon Bichelmeyer 913-579-3354 Duplex Merriam, KS Rented/ Vacant No priced listed $850-$900 Eric Deeter w/ Realty 913-579-3354 Resource of KC 2005 E 58th Kansas City, MO Rental $17,500 Needs Minor Christoph Becker 816-419-1165 Repair 125 N Chelsea Ave Kansas City, MO Rental $25,000 Repairs $3-5k Christoph Becker 816-419-1165 5617 Lydia Kansas City, MO Rental $20,000 ARV: $45,000 Christoph Becker 816-419-1165 5919 N Howard Gladstone MO Rehab $50,000 obo Needs updates JD Asbell 913-980-1866 Highland Crest Kansas City, KS Rehab $28,000 obo Needs updated JD Asbell 913-980-1866 5416 E 25th ST Kansas City, MO Rehab / Rental No Price Needs updates Stephen Summers 816-250-7200 21813 Lombardo LN Peculiar, MO Fixer Upper $134,900 4 bed, 1 bat Donna Wilson 816-213-8151 55th & Swope Pkwy Kansas City, Mo Rehab $7,000 3/1 Al Fraser 913-735-5549Page 24
  25. 25. Looking for Investment Properties There are 100‟s of great deals right now. Let me help you through the process. Investment Opportunity Real Estate Investor / Agent with experience in Bank Owned, Short Sale, and Rental PropertiesThere are over 32 properties listed for sale today on the Eric Deeter MAREI web site. Realty Resource of KC All MAREI members may log in and list their property for Call (913) 579-3354sale, include details, photos,simple html, and contact info.Must be your property or list- ing, no fishing for buyers with out proper contracts. Home DepotAll new listings emailed outon Fridays in our E-Updates  2 % Bi-Annual Rebate for MAREI members go to  Volume Discount Pricing Call me to find out how you can save Click no Tool Box on your next home renovation! Click on Property for Sale Roger Holyfield (816) 510-9199 Investment News Page 25
  26. 26. Membership Business Associate Vendor Member Business Associates and Vendors have access to our fast growing membership of individuals focused on investing in real estate. This is a built-in audience of people that have a need of your services. Be- sides the obvious benefit of reducing your cost to reach this pre-qualified group, you may participate in defined marketing and networking opportunities. In addition, with Kansas City being a very popular place for out of state investors to spend their money on rentals, flips, and other investing, MAREI‟s web site provides a great first access to local area service providers to these out of state investors. Being listed as a Business Associate or Vendor will get you in front of many of these out of state investors as well as local investors browsing our site for “FREE” infor- mation. Our Vendor list is always public information. MAREI Business Membership is offered in two categories: · Business Associate: An MAREI Business Associate is committed to a high level of support for the association and agrees to help MAREI reach its vision and deliver on its mission. While not required, it is expected that MAREIA Business Associates will participate in MAREI sponsored events, community programs and, where practical, support our lobbying efforts. Educational, speaking, marketing and other opportunities are available to Business Associates. The number of Business Associates is limited in each category. In addition to our normal qualification requirements a Business Associate will usually need to be referred to us by a MAREI member & invited to join. Completion of our Business Associate contract is required. · Vendor: An MAREI Vendor is an organization that offers services or products to the real estate investor, but doesn‟t have the time or desire to actively participate in the association or meetings. Ven- dors want to be part of MAREI to support our mission and offer their services or products to members without active participation in the association. Vendor membership is by invitation after completion of our qualification process. Completion of our Vendor contract is required. Vendors are given priority to be- come Business Associates should an opening become available in the category. Business Associate Vendor Category For One Person For One Person Lenders, Title Companies, 1031 Exchange, Realty Ser- $499 $399 vices, and other Professional Services Trade Suppliers $399 $299 Handyman & Contractors $299 $199 Additional Person Additional $50 No 2nd Person NO Meeting AttendancePage 26
  27. 27. BENEFITS OF MEMBERSHIP Business Associate Vendor Special Logo Recognizing Business Associate Status NA Ability to have a Table at the Monthly MAREI Meeting. Atten- Ability to have a Table at the Monthly MAREI Meet- dance at our Monthly Meetings Averages 80+ per Month. Dedi- ing. Attendance at our Monthly Meetings Averages cated Time is Reserved for Networking. Extra Fee for table. 80+ per Month. Dedicated Time is Reserved for Net- working. Extra Fee for table plus extra fee to attend meeting. Priority Listing on MAREI Business Member‟s Section Online Listing on MAREI Business Member‟s Section that includes a customized detail section as well as contact info Online that includes a customized detail section as and link to your web site. well as contact info and link to your web site. Priority Listing in Member Information & Benefits Guide Listing in Member Information & Benefits Guide (Provided to new members as they join.) (Provided to new members as they join.) Business Card ad in the MAREI Investment News and dis- Discounted Priority Advertising in the MAREI Invest- counted pricing for other advertising.. The Newsletter is ment News. The Newsletter is EMailed to Approxi- EMailed to Approximately 5000 Addresses, Including Members mately 5000 Addresses, Including Members and and Non-Members and promoted on all our social networks Non-Members and promoted on all our social net- works Approved marketing material on Community Table None Priority Advertising in Member Information & Benefits Guide * Advertise in Member Information & Benefits Guide * Expert Article in the MAREI Investment News * NA Expert Article in the MAREI Blog* NA Priority in Sponsorship of large full day and week end events, Priority (after Business Associates) in Sponsorship and our Vendor Nights. * of large full day and week end events, and our Ven- dor Nights. * Priority Opportunity to Conduct an Educational Workshops at Opportunity to Conduct an Educational Workshop at Monthly Meeting (as available and requested) Monthly Meeting (as available and requested) Priority Opportunity to Conduct Workshop at Special Events Opportunity to Conduct Workshop at Special Events (as available and requested) (as available and requested)For more information or to request an application, please or call 913-208-3544. Investment News Page 27
  28. 28. Attention MAREI Members To access This valuable Check out the benefits Member BenefitVisit the member’s of using CyberCollect. Only section on NO cost to landlords. • Eliminates bank returned check fees, and caps Federal Reserve forwarding cost at Click on only $2. Eliminates second and third bounce charges. Small value checks can be col-Member Benefits lected cost-effectively. Landlords are notified daily of checks in the recovery process. • Collected funds are electronically deposited into landlord’s account on a daily basis, with no waiting for a month-end settlement. • Average time to collect NSF checks is only 6.2 days, with more than 80% collected and paid within 30 days. • At banks, electronic items have priority over paper checks and are paid first, so land- lords go to the head of the payment line. • Improved collection results by as much as 50% over traditional collection methods, and as much as 25% over competitors who randomly re-present electronically. • Reduces collection costs by eliminating internal manual process. • Faster and more efficient than paper process. • State-of-the-art web-based reporting is downloadable to Landlord’s accounting soft- ware without rekeying data — easily reconcile bank accounts and recovery status. • Executive Analysis Reporting tool allows the landlord to monitor the exact cost of check acceptance. • Through a banking arrangement with the Federal Reserve, electronic collection begins 5 to 7 days faster, and your bank can no longer charge you for returned check fees. Competitors must wait for a check to be returned to your bank where you pay a returned check fee, and only then is the check forwarded for collection. • Some competitors contract with an outside clearinghouse to electronically convert and re- present. This adds an additional 7 to 14 days to the collection process. Statistics prove that the faster the collection process begins, the higher the success rate. • Our proprietary, web-based reporting is unequalled, leaving industry competitors scrambling to attempt duplication. Collection status and information is provided in real time, report- able by date range, and is downloadable directly to your accounting software. You don‟t even have to re-key data. • CybrCollect® leads the industry in customer service. Our customers speak with real peo- ple, who answer questions and immediately address problems with a sense of urgency. Cli- ents are never referred to multiple departments or multiple phone numbers.