The RE Investment News is the monthly newsletter for Mid-America Association of Real Estate Investors. MAREI has been serving the real estate investment community in Kansas City since 20014.

1. N E W S L E T T E R O F M I D - A M E R I C A A S S O C I A T I O N
O F R E A L E S T A T E I N V E S T O R S
RE
AUGUST 2018
N E W S
INVESTMENT
M A R E I . O R G
This Month
Private Lending in the
Real Estate Business with
Attorney Rick Davis & Friends
PASSED

3. THE CALENDAR
M A R E I . O R G / C A L E N D A R
See full day
workshop
page 5
PRIVATE MONEY IN
REAL ESTATE
Being a private lender in a real estate transaction is a great way to keep your money
working for you in real estate, whether you invest in real estate yourself or not.
Using a private lender in your business is a great way to access money faster and do
more deals. Private Money is a Win-Win, but if you don't know what you are doing, it
could become a nightmare. With a few simple steps, both parties in the transaction
can be protected and everyone can make money!
Join us at the August MAREI meeting on the 14th where we will hear from a few
members Eric Grannemann, Dale Griffin and Kim Tucker some of their experiences
from both the borrowing side, the lending side and the deal went to heck side. Then
we will learn from Attorney Rick Davis, how to put it all together and keep it legal.
Have a potential private lender bring them with you.
Monthly meetings held at the Holiday Inn at 8787 Reeder Road, Overland Park, KS.
MAREI Members & First Time Guests who Pre-Register at MAREI.org attend free -
all others pay $25 at the door or $15 online. As always there will be the Business
Hall, the Deal Table, and Networking from 6 to 7 pm. Presentation starts at 7 pm.
03RE INVESTMENT NEWS
Mailing Address:
6709 W 119th #332
Overland Park, KS 66209
Phone: 913-815-0111
Web: MAREI.org
Web: MAREIMember.com
Email: Kim@MAREI.org
Views and advertising expressed in the
RE Investment News are not necessarily
endorsed by Mid-America Association of
Real Estate Investors. The information
contained within should not be
construed as a recommendation for any
course of action regarding financial,
legal, or accounting maters by Mid-
America Association of REal Estate
Investors.
Email to inquire about advertising
oportunties or membership.
AUGUST MEETING
GET INVOLVED AT THE
MEETING Deal Table: Bring your business cards and deal flyers for our
deal table. Located in the middle of the vendor hall members can
place a stack of business cards or a stack of flyers. Please make sure
to remember we have limited space. Make sure your name and contact
information are on your marketing piece or the deal table police may remove your
materials. Please place, browse and move on so that traffic can flow.
Genius Bar: MAREI has a wealth of knowledgeable members and we are asking a
few of them to volunteer from 6 pm to 7 pm at our new MAREI Genius Bar. Ok, so it
will be more like an Expert Table. Look for two tall tables just past the check-in table
to the left. There should be a couple of tall cocktail tables with a couple of experts
who are there to answer your basic investor questions from their own experiences.
They are not offering legal advice. If you would like to take part by being an expert at
our monthly meetings, please let us know by emailing kim@MAREI.org.
New Member Orientation: Wonder just what you get for $99 as a new member? Join
us from 6:30 till 6:45 at our new member orientation. This month we are testing out a
new location for this in the Green Mill. Please join us at 6:30 in the lobby, through the
doors to the Green Mill and just inside to the left. We will share what the major
benefits of becoming a member might be.
New Features
"Genius Bar"
We have some great
experts here at MAREI.
Be sure to check out
the round tables at the
next meeting to ask
questions.

4. 04 RE INVESTMENT NEWS WWW.MAREI.ORG
Healthy Homes was a rental registration and Health
Department Inspection program proposed in 2017
but the city council declined to put it on the ballot
due to a few serious concerns. Several Tenant
Advocacy Groups gathered enough signatures to put
the ordinance on the ballot August 7th.
Healthy Homes Proposed
FEES to the Property Owner
Inspections to the Property
real
estate
news
Initial $20 Fee Per Rental Unit Paid Annually
A late fee of 10% per month if not paid.
Suspended permit fee of $300 to reinstate
Health Department will be able to raise fees
annually equal to increase in CPI
The permit is non-transferrable, so if you
sell, the new owner must get a new permit.
Health Department Director shall determine a
percentage of random annual routine inspections.
Health Department Director can require additional
inspections based on past performance.
Health Dept Director shall formulate rules and
regulations for the inspection process, method,
and guidelines.
Health Dept Director shall determine regulations
for health, sanitation, and adequate rental housing
standards.
Health Dept Director can modify regulations on a
case by case basis.
inspections of an occupied unit can be made with
five-day notice to the tenant.
There is no fee for initial inspection, reinspection
fee is $150 for first unit/$100 for all other units
The owner must turn in a health and safety
inspection with the permit application.
The landlord must allow inspectors access to an
unoccupied property.
Most inspections will be on a complaint basis, but
complaints by who? It is not defined.
Consequences of Not Participating
Permit suspension ($300 reinstatement fee)
Permit revocation (owner can’t operate the
property as a rental, legally)
Require property to be vacated
Fine to the Property Owner of up to $1,000
Imprisonment of the property owner for up to 180
days.
Question 1 Passes

5. Housing markets across the nation are most
assuredly active this summer, and buyer
competition is manifesting itself into several quick
sales above asking price. While the strength of the
U.S. economy has helped purchase offers to pile up,
the Fed recently increased the federal funds rate by
0.25 percent, marking the second rate hike this year
and seventh since late 2015. Although the 30-year
mortgage rate did not increase, buyers often react
by locking in at the current rate ahead of assumed
higher rates later. When this happens, accelerated
price increases are possible, causing further strain
on affordability.
Closed Sales decreased 5.9 percent for existing
homes and 6.1 percent for new homes. Pending
Sales increased 8.0 percent for existing homes but
decreased 5.8 percent for new homes. Inventory
decreased 9.4 percent for existing homes but
increased 4.7 percent for new homes.
The Median Sales Price was up 5.7 percent to
$200,895 for existing homes and 2.4 percent to
$364,975 for new homes. Days on Market
decreased 15.0 percent for existing homes and 11.4
percent for new homes. Supply decreased 8.7
percent for existing homes but remained flat for new
homes. Inventory may be persistently lower in year-
over-year comparisons, and home prices are still
more likely to rise than not, but sales and new
listings may finish the summer on the upswing.
The housing supply outlook in several markets is
beginning to show an increase in new construction
and a move by builders away from overstocked
rental units to new developments for sale.
These are encouraging signs in an already healthy
marketplace.
From Kansas City Regional Association of Realtors.
Get the full report at kcrar.com/Statistics
SENATE PASSESS EXTENSION
OF FLOOD INSURANCE
July 31st the U.S. Senate voted to extend legislation
on flood insurance funding. The bill, which the U.S.
House had passed the week and was signed by
President Trump. This will extend the federal flood
insurance program through November 30th and
ensure that the government will be able to pay out
claims for victims of flooding.
The legislation, sponsored by Rep. Tom MacArthur,
R-3rd Dist., passed the House last week, 366-52,
with all 12 New Jersey representatives voting yes.
"Congress' work is not done," MacArthur said. "Both
chambers and members of both parties must come
together to craft a long-term reauthorization that
provides stability, holds FEMA accountable, invests
in mitigation, and offers affordable coverage."
KCRAR'S JUNE 2018
HOUSING REPORT
HELP FOR 1ST TIME HOME
BUYERS IN MISSOURI
This spring, buying a first home just got a little
easier in Missouri. The Missouri First-Time
Homebuyers Savings Account Act passed through
the legislature in Jefferson City thanks to efforts by
Missouri REALTORS®. This will allow potential
homeowners to set aside savings dedicated toward
the purchase of their first homes, similar to a 529
college savings plan. Up to $20,000 could be put
into the account by a married couple filing jointly to
assist first-time homeowners with their down
payments. Learn more at MissouriFirstHome.com
004RE INVESTMENT NEWS 05

7. 08 07RE INVESTMENT NEWS • PAGE
A D V O C A C Y
MEMBER BENEFIT
Membership in Mid-America
Association of Real Estate Investors
and by extension National Real Estate
Investor's Association provides direct
benefits such as discounts, education
and opportunties to network.
Members also also benefit from the
organization’s advocacy efforts with
regulators at the city level, the state
level with MAREI Plus the added
benefit of representation in
Washington through National REIA.
Local Issues
Currently MAREI has partnered with
Housing for all KC along with all the
other major housing industry
organizations in Kansas City in an
effort to defeat Question 1 on the
August 7th Ballot - see page5. We shall
see this week how well these combined
efforts at keeping our memers
informed and swaying the public to
vote no on this issue turns out.
State Issues
the impact of seller financing
regulations.
Last year landlord were given new
rules from Housing and Urban
Development on disparate impact and
what we could and could not ask
potential renters. National REIA is
providing input to the new leaders at
HUD in regards to these regulations
and have been keeping members
informed.
While advocacy does not seem to be
the "SEXY" benefit that you can point
to and say I learned this or saved that,
it is one of the most important
benefits in keeping you informed of
what your government is doing and
keeping you engaged in protecting
your own business and your own
industry.
We urge you to follow the MAREI
news updates via email at on the blog
at MAREI.org as well as following
RealEstateInvestingToday.com
In 2017 & 2018., MAREI partnered this
time with Missouri Property Owners
Association to introcude legislation that
would allow tenants in the cases of
Rental Inspection Ordinances to decline
the inspection and we expect to try
again in 2019.
The past year we also testified on behalf
of several different laws to regulate
Assistance and Comfort Animals in
Missouri, to make it illegal for a city own
utility to bill the owner for a tenants
unpaid bills and the sponsor of the bill to
eliminate the trust account
requirements for landlords when they
hold tenants security deposits was
successfully passed.
Federal Issues
We have supported National
Association of Realtors in their efforts to
extend flood insurance.
National REIA has partnered with the
Seller Finance Coalition to lessen

8. F U N D I N G
O P T I O N SBY KIM TUCKER
One of the biggest questions I receive from new real
estate investors after they get an idea of how they want
to invest is what is the best way for me to fund my deal?
When starting out most new real estate investors who
have the funds might use their own funds to buy that
rental or flip property or whatever, but then all their
funds are tied up and when another great deal comes
along, they have to pass it up because all their current
funds are tied up.
For example, I have a friend right now that found a great
rental property and used his own funds to purchase this
property and renovate. Then along comes another killer
deal. Because his model is to pay cash, he has to
scramble to find other funding to do this killer deal or
pass it up.
The next method new investors use depends on their
investing model. Those who are going to acquire buy
and hold rentals, usually go to a local small-town bank
and make a down payment and purchase the rental
property with a mortgage. This is actually a great model
and you will find many different versions of it discussed
at length on BiggerPockets. However, depending on the
investors cash funds and banking rules, eventually they
can’t buy any more property. This could be because they
run out of cash for the down payment or because they hit
the limit on the number of loans a bank will make to one
person for investment purposes.
There are quite a few other options that will depend on
the reason for investing and the individual investor’s
resources. These options range from your own liquid
funds, your own retirement funds, your own credit, other
people’s money, other people’s credit and even the deal
itself.
This article is to take a VERY BRIEF LOOK at investor
options for funding real estate investment property
purchases.
08 RE INVESTMENT NEWS WWW.MAREI.ORG
A VERY BRIEF LOOK AT
INVESTORS OPTIONS FOR
FUNDING REAL ESTATE
INVESTMENT PROPERTY

9. 08 09RE INVESTMENT NEWS • PAGE
liquid Funding: This is money that the new real estate
investor has available that is not tied up in a retirement
account such as a 401k or an IRA or Pension. Cash that
can be accessed and spent however the investor would
like. If the investor has a large sum available, say over
$250,000 this could be a great resource for doing a few
wholesale flips or rehab flips in a year. However, if the
model is to buy and hold for rental, then this would only
go so far, maybe 2 or 3 houses and then they can’t buy
any more.
Purchase Money Loan: This one is used to buy and hold
a real estate investment. It assumes the property is in
good living condition and does not need any repairs.
This loan will usually require at least 30% down and
usually a certain amount of money in held reserves in
case the rental goes vacant or needs a major repair. The
amount of reserves will depend on the experience of the
investor, the condition of the home and on the lender’s
rules.
There are a bunch of options here. Such as a
Conventional, an FHA, an FHA 203, a VA, Adjustable or
Fixed Rate or even a USDA Loan. Be sure to explore
these options with your local small town bank lender to
see how they might be able to assist you. These will all
require access to good credit scores, yours or a co-
signing partner.
Rehab Loan: This type of loan is sometimes offered by
the smaller local banks as well as by hard money lenders.
This loan is for the purchase and renovation of a home
that needs fixed up. The lender lends money for both the
purchase price and for the renovation costs. These could
be loans used to purchase, rehab and flip a house. Or it
could be used in combination with a purchase money
loan to buy, rehab, rent up and then refinance to a
purchase money loan.
The Rehab loan usually involves the deal itself meeting
certain criteria for the lender, as well as good (not
stellar) credit on behalf of the borrower, quite often it
must be made in the name of a corporation, not an
individual. Typically, it cost the investor a minimum of 2
to 5 percentage points of the overall loan amount and
10% to 15% interest. The loan is generally only for 6
months, possibly 9 months and may or may not require a
down payment.
There are a bunch of Hard Money or Rehab Money
lenders at MAREI and a new investor should spend time
talking to each to see what their terms are and what
transactions might be a good fit for their loan as well as
to ask for recommendations on other lenders that might
be needed to refinance out or that might be a better fit
for the transaction.
Combo: Some smaller banks have been known to offer a
Rehab to Permanent Loan that has all the characteristics
of a Rehab Loan and that once the property is finished
converts to a permanent loan with a lower interest rate
and then is amortized over a longer period of time such
as 20 or 30 years.
Home Equity Line of Credit: This is just what it sounds
like. If the real estate investor owns a home and there is
sufficient equity in the home, that equity can be used as
collateral for a revolving line of credit. For an initial set
of first time closing costs, the line of credit can be set up
and then the money borrowed and paid back over and
over again.
This is a great tool to use to buy, renovate and then sell
or refinance for a long-term hold. Be sure to only use in
situations where the plan is to get the line of credit
money back on 6 to 9 months, not for a permanent loan
on a long-term hold.
Retirement Funds: Many new investors, as well as some
of the more experienced ones, do not know that
retirement funds can be used to invest in real estate.
This is a huge area where investors sometimes never
utilize. Because of many of the tax advantages, using
this type of funding can save $1000s, even $100,000s in
taxes making it that much easier to build up a retirement
nest egg.
All of the retirement vehicles like IRAs, Roth IRAs,
401(k)s, Coverdale Education Savings Accounts, Health
Learn more about private
lending with this book in
the MAREI Member
Library!

10. Savings Accounts and maybe a few others can be set up
with specially qualified custodians and then be used to
invest directly in whatever type of real estate investment
the investor might want to do.
This is a whole month- long course in itself, so be sure to
get educated about Retirement Funds and many of the
custodians have numerous articles, videos and webinars
on the subject to get you educated.
Insurance Plans: There are life insurance plans that
combine a term life insurance policy with a savings plan.
That savings plan can earn interest, and with the right
company it can be invested in real estate, or it could be
used to borrow against for investing. Some Real Estate
Investors like to use this as an investment vehicle for
retirement because the profits made by investing in this
plan has tax benefits.
Investment Funds: Other investors may also find that
they have funds invested in mutual funds or stocks and
bonds at a brokerage account that they could cash out
for money for their investment. But rather than cash out,
they opt to get a line of credit using these investment
funds for collateral and basically borrow their own
money for a few percentage points in interest over
whatever the fund is paying.
Private Partners: Most new investors do not start here,
they aspire to get to this point where they invest with
other people’s money or credit. This can be as simple as
one person or company lending money to the investor for
a flat interest rate, interest, and points (like the hard
money scenario), equity share or as complicated as a
combination points, interest and equity share.
Using private partners is also an entire training class all
by itself, but at the bare minimum, we want you to make
sure if you are using a private partner that you both
agree in writing before the transaction to all terms and a
definition of profit if you will be splitting profit. And you
make sure to secure the partner's funds invested with the
correct documentation, close through a third party and
record the proper documents immediately.
The Deal Itself: There are also ways that the deal itself
could provide the funding. For example, when you get
into larger apartments or commercial buildings often
loans are made based on the merits of the property,
some on the borrower’s experience or team, and very
little on the borrower’s own credit. the lender can do if
the borrower stops paying is foreclose on the house, and
the loan is based on the merits of the investment and the
cash flow from the investment and not based at all on
the borrower or the borrower’s credit.
However, where we mostly see a deal funding itself is
when the investor is being creative with a highly
motivated and desperate seller OR with a seller who just
no longer wants the property and does not need the cash
up front.
For example, if a buy and hold investor finds a rental property
from another investor, the other investor might finance the
deal. Or a retiring landlord might owner finance rental
properties to a new investor. Or a homeowner who has a free
and clear house, has already moved to Florida to retire, wants
to sell a house here but does not need the cash, understands
interest and has a rapport with the investor buyer, this owner
might owner finance. Or a homeowner who can no longer
afford their home and the upkeep might let an investor take
over their mortgage payments on the home, just to get out
from under them.
No matter how you go about getting your transaction funded
you are going to want to take the time to present yourself and
your transaction to make sure the numbers work. For each
deal take time to note why you would be investing, your
strategy, the money needed for purchase, the money and time
needed for renovations if any, the money and time needed to
get it rented and potential profits. If there are renovations
also work out a scope of work and a budget. Then present
your deal to yourself to make sure it works. Then make sure
you have the needed funds or reserves. Then if you are going
to use OPM, you have a funding plan to present in your efforts
to find funding.
10 RE INVESTMENT NEWS WWW.MAREI.ORG
FREE Training
Resources
Real Estate Closings
Rental Applications
Residential Assisted Living
Tenant Screening
Wholesaling
MAREI.org/Free-Training

11. TO FIND PRIVATE LENDERS
Top 10 Methods
At the MAREI meeting (that’s our
local real estate investment
association here in the Kansas City
area) a while back we were talking
about using Private Partners or
Private Lenders during the
networking portions of the meeting.
Both the planned networking before
the meeting and at the meeting after
the meeting. If you are not going to
your local REIA group and taking part
in both the planned events and the
meetings after the meetings, YOU
ARE MISSING OUT.
Anyway, back to the Private Lending . . .
We were talking about how a deal
that our team here at KCInvest had
put together last year and the fact
that we utilized private money to do
the deal. The person I was talking
with emailed me this morning to ask
for more info. He is doing great using
hard money lenders, however, he
wanted to spend some time
cultivating a few private lenders. As I
am sure others have similar goals, I
thought I would share my thoughts
here.
Ways to Partner on a Real Estate
Transaction
Before we go into cultivating private
lenders part, let’s first consider the
ways we might partner on a
transaction.
by KC Invest Staff
11RE INVESTMENT NEWS • PAGE
Sometimes my private lenders or
borrowers want to go the flat fee
route of $5,000 on the entire
transaction. Not bad until you
work that into an interest rate of
an 87% on one of our first private
lender deals where we borrowed,
On one where we lent, I compared
it too hard money and by borrower
basically paid me 2 points and 12%
Interest.
Other times a private partner
might want 40 to 50% of the
profits, again a great deal,
although in some cases the hard
money lender would still have cost
less.
Other lenders want a straight
interest rate for the time we hold
their money, that has been for us
anywhere from 8% to 10%
depending on how much access to
private funds we had at the time.
And this would on the surface
seem the best way to go. But there
was the one time we had a house
where the only road too and from
the subdivision was promptly
ripped out right after we
purchased the house. It took us
over 6 months to sell. The private
lender made all the money, our
profits were eaten up by 9 months
of interest.
pThere are as many ways for the
lender to get paid as there are
people. Every lender and
borrower is different and
your transaction will be whatever
you negotiate, that’s the beauty of
private money.

12. 12 RE INVESTMENT NEWS WWW.MAREI.ORG
the private lender. Then we had page
after page, or blog post after blog
posts showing all of our deals – the
good and the not so good. In each, we
shared the story of the deal, the
photos and the numbers from what
we paid for it,.
2. Teach . . .
This is where our next private lenders
came from. We attended a workshop
with Alan Cowgill who talked about
putting together a presentation that
explained who he was, shared some
example deals, provided a credibility
kit (my brag book and website) and
then he would have a luncheon where
you invite people of high net worth.
That just felt really really weird to me.
So instead, I approached the local
REIA group and offered to have
workshops explaining how private
lending works and how self-directed
IRA’s work. My first class, I charged
people a small fee and had about 5
people who came to 2 different 2-
hour workshops.
The first was how to protect yourself
as a private lender. This one
explained what a private lender was,
told them how to screen and select
potential borrowers and how to
protect themselves with the
paperwork. It ended with a couple of
example deals that I had done with
my first private lenders from #1. The
second workshop went into Self
Directed IRAs and included an
informational packet on self directed
IRAs that I received from own IRA
custodian. Out of that, I found two
potential private lenders and one of
which had enough money to actually
fund a few of our wholesale deals out
of his Self Directed IRAs.
3. Teach Some More . . .
Take on a few newbies. As leaders at
at MAREI we were in the front of
people a lot and newbies naturally
flocked to us. We really didn’t want
to partner on deals that way because
many of them wanted to learn how to
do a deal but had no money. They
didn’t bring much to the table in the
way of a trade – they had no
knowledge and no money. But when
a newbie came to us and said teach
me to do what you do and by the way,
I have access to cash to fund the deals
. . . well, then we partnered on a few
deals and taught him the ropes over
about a 2-year span. We sat down
and decided who was to do what and
how everything was to be divided up
before hand. And along the way, we
learned from him.
So you are sitting there and saying no
way am I going to go out and start a
group, that takes a lot of time and
effort, but you don’t have too. In
most areas, there is already a group
there and if you join, take part and
volunteer your time to teach, write
articles, help at the check-in table,
take over social media duty . . . what
ever it is that you are good at, you can
instantly over a few month period
become on of the movers and
shakers.
Here at MAREI, we have had several
people that have built their credibility
because they are willing to share. The
volunteer to teach a class, they write
an article, they stick around after the
meeting to help clean up, they come
early to help set up . . . and that’s
when you start becoming the go to
person. Then the newbies who don’t
want to spend 3 years learning the
ropes will come to you. Some of them
will have the funding to be your
private lender, you just have to be
willing to teach them something in
exchange . . . not a bad deal, you
teach, they do all the work and bring
the money.
But don’t discount your hard money
lenders, they really are a great deal
and a great place to start. But as
you build your portfolio of
completed deals, you will be able to
cultivate more people who are
willing to partner with you or lend
you money on the deal.
Let’s dig in . . . .
Find and Cultivate Private Lenders
1. Brag a Lot . . .
Ok, don’t be obnoxious about it but
tell people what you do. Our first
private lenders were our insurance
agent and family members. We
were borrowing money from a local
bank for our rehab loans, they made
those back in the day and still do if
you go to the right one. Our
insurance agent noted we kept
buying and selling houses and based
on how often he was insuring us and
then canceling insurance he
decided he wanted in on the deals.
We also shared every deal with a
family member and one day they
asked us how much we were paying
the bank for money. He wondered
that if he could lend to us for less
han the bank, would we partner
with him. All of this is because we
told them what we were doing.
Now along the lines of bragging a
lot, it is helpful to have something
you could actually show people.
We created two items we use to
show people what we were doing.
One is a website we where we
could share more information and
the other was a brag book of sorts.
Both had a section that explained
what private lending or partnering
actually is and a section explaining
how we protect

13. 13RE INVESTMENT NEWS • PAGE
published on their social media pages.
There are numerous real estate sites
out there where you can contribute
your knowledge . . . so pick one or two
and start participating.
5. Networking . . .
Network local business associations.
This can be at your local REIA group
or other business associations, like
the chamber of commerce or maybe a
trade association around what you do
in life outside of real estate. Now, I do
this monthly at MAREI. I go every
month and network before the
meeting and after the meeting. You
will notice if you attend that there are
people who come every month and
who are willing to share. These are
the people with a circle of people
around them. The movers and
shakers of the group and people will
bring them deals, ask for help and
sometimes these are people with
funding.
Let’s talk a bit about networking outside
of the REIA for a moment.
One person I know is a dentist by
trade and he has done all of the
above. He sat back and thought
about the dentists he knows. They
make good money as a dentist and
want to invest for retirement. He
took the teaching thing to heart and
started explaining the concept of Self
Directed IRA’s, Tax-Free Investing
and Real Estate Investing. Only he
focused his training on his fellow
dentists. People he already knew and
had a rapport with as a dentist. These
were busy people who were not quite
as willing to take the time to learn
how to invest in real estate but
wanted to get the better returns, tax-
free on their money. He basically
went out and created his own private
lenders, people who had never even
thought about real estate before.
6. Speed Networking Events . . .
Just a fun time where I have come up
with a few lenders every time.
Basically, in speed networking, you
break into pairs and each person gets
a minute or two to give their elevator
pitch. After each person in the pair
has their turn, you trade partners. So
you need to have a clear concise
message or elevator pitch . . .
“I buy, rehab and sell houses for a
profit. We have completed 30 deals.
Our average hold time is 3 months.
Our average profit is $15,000 to
$20,000 a deal. We utilize private
partners to do those deals and they
earn on average $2,000 to $4,000.
Do you know anyone who might be
interested in earning about the same
over 3 months by lending $100,000?”
Always be prepared with a flyer or a
business card so you can provide
them with all of your contact
information and send them to the
website that you created above
where you can showcase your deals.
7. Self Directed IRA Events . . .
These events have built-in lenders.
Now when a large self-directed IRA
custodian or administrator rolls into
town and holds an event, you will
want to attend. There will be 2 types
of people at these events. The first is
people like you who saw them speak
at the local REIA and are coming to
learn about Self Directed IRAs as a
beginner or Self Directed IRA’s as an
advanced user. There will also be
people there who are already clients
of the people putting on the event,
people who already have the money
saved up and growing, who
understand real estate, and would
rather lend their IRA money to you,
that go buy a deal in their IRA.
So when you go to these events, bring
4. Become Famous . . .
I am serious. There are many ways
to become famous and most ways
are low cost and just require you to
put yourself out there a bit. Share
your stories in article form,
newsletter form, video or audio. So
let’s give you some examples.
One person I know here in Kansas
City had the backing to fund his
deals, but he needed deals so he
started a radio show. . . never mind
he started investing in real estate a
few months before, he started a
real estate radio show and
interviewed people. He became
famous overnight.
Another way is to write a book and
while I have not written my book
yet, it’s on my to do list. You can
self-publish a book on Amazon.com
and do a product launch on the
internet and at your local REIA is
talking about your book. You might
even be able to give it away for free
on your website in exchange for
some contact information and
cultivate private lenders that way.
And one of the easiest right now is
to become an author for
BiggerPockets.com . So go to
BiggerPockets, create your own
account and profile and start
writing a blog for them. They like
longer well thought out articles like
this one, not short 2 paragraphs
that say nothing. After a while, they
may feature some of your blog
posts and possibly ask you to be a
featured writer . . several of our
very own members here from
MAREI have done that, so look up
Andrew Syrios and Nathan Brooks.
After you get to be a featured
writer, then your articles go out on
their weekly emails and get

14. to time if they know anyone who
might want to fit into that private
lender deal.
9. Buying Creatively . . . .
This means you find a way to take
over payments or it might mean you
get the seller to carry your note.
A good friend here at MAREI buys a
lot of deals where she either takes
over the seller’s payments with very
little money down is any then she
rents them out for cash flow, because
she needs very little down or for the
renovation she could cultivate private
lenders from the REIA who only have
$5,000 to $10,000 in their self-
directed IRA to lend out.
She also may find people who own the
house free and clear and agree to
seller finance the house to her. Let’s
say that further, she lease options the
house and they eventually buy the
house and pay her off and she pays
the seller who financed her off. You
follow so far. Original Seller financed
the Investor who lease options to End
Buyer. End Buyer goes to the bank,
gets a loan and pays off the Investor
and the underlying loan from Original
Seller. Now the Original Seller didn’t
need the money that bad to begin
with or they would not have seller
financed the property in the first
place. So when the Investor calls the
Original Owner to get the payoff, she
can ask, “so once we pay off the loan,
what are you going to do with the
money? Would you be interested in
keeping the same monthly payments
with a new loan on a house that I am
buying.”
I don’t do a lot of creative buying,
however, my friends that do have
found this to be a great way to get
private lenders, cultivate your
motivated sellers.
10. Marketing . . ..
Actively putting out marketing pieces
asking for a private lender. I don’t
directly market for private lenders
because I keep hearing or seeing that
you have to do this, that and the other
thing to legally market for lenders
and not get crosswise with the SEC.
This is an area, that if you are going to
do it, you should spend some time and
money learning a lot more about to
find out what you can and cannot do.
Our good friend Attorney Jeff
Watson has a series of videos we
recently posted on the MAREI Blog
that can help you understand a bit
about why you just don’t post about
needing a private lender on
Facebook.
There you have it folks, how our team
here at KCInvest works to cultivate
private lenders. Please take note as
you read this that here in Kansas City
we will be talking about Private
Lending at the MAREI meeting on
Tuesday August 14th. We look
forward to hearing from a few
members how they found their own
private lenders and learning from
Attorney Rick Davis how to protect
oursevles as a borrower or as a lender
and how to keep everything legal.
your business cards and your
elevator pitch. Then while you are
networking during the breaks,
lunches and before and after, you
have something to refer back on
and are prepared. And if you
happen to find a good fit at the
event, follow it up with happy hour
after the event . . . again the meeting
after the meeting is very important.
8. Direct Mail Marketing . . .
Not my favorite, but I have seen it
taught many times, so I want to
share it. All of the previous
methods deal with a warm market . .
. either people you know or people
who are a part of your a similar
group. With Direct Mail Marketing
you are going after a totally cold
market. It has been suggested to
me that you create a mastermind
group of people who want to talk
about some specific topic, real
estate investing, self-directed IRAs,
what have you. Then go out and
buy a list of high net worth people
in your area from a list broker.
Then in your direct mail piece, you
invite them out to your mastermind
group or maybe to a workshop
where you will teach a concept or
maybe a private one on one session
online.
This is a great way to connect with
new people that you don’t know
and who are not directly in your
current circle of influence. Then
once you meet them, you set
yourself up as the expert who
teaches or leads the mastermind.
You share your knowledge and
expertise, sharing the latest deal
and how it all works. And telling
them how the private lender fits
into the deal and asking from time
14 RE INVESTMENT NEWS WWW.MAREI.ORG

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16. PRIVATE LENDING
A G U I D E T O D U E D I L I G E N C E
THE BORROWER: Know,
Like and Trust Your
Borrower. Check out past
deal &, verify ownership of
past deals.
Private Lending can be very profitable. It can also be a way to lose a lot of money fast. It is important to know your lending
niche and match that to the right borrower and deal. Have the right policies and procedures in place. Have experts to
consult. And to complete your due diligence before ever making the loan.
OFTEN OVERLOOKED: Always require the borrower to show
proof of insurance on the property naming you 2nd insured
before funding and instruct title company to record the
mortgage or deed immediately upon funding and to provide
you with all originally signed documents. Always check up on
this until you receive. If funding from a Self Directed account
verify the custodian's procedures in advance.
MAJOR STEPS IN THE PROCESS
CLOSING WITH A THIRD PARTY: Always complete the closing at a
disinterested third party like a local title company. They collect all
paperwork and funds and only disburse funds once agreed upon
steps are made, like the transfer of title and recording of deeds.
Always review title insurance prior to closing to ensure position and
require the borrower to pay for a lenders title policy.
PROFESSIONAL PAPERWORK: Spend some money on
getting good professional paperwork: promissory note,
mortgage or deed of trust, assignment of rents, and possibly
a confession of judgment and deed in lieu of foreclosure.
Consult with your attorney on how foreclosures work in the
state before proceeding.
THE VALUES: Get an
appraisal or complete a CMA
so you know the value of the
property as is & repaired.
REPAIRS: Get an estimate of
repairs. Study them,
understand them. Have
contingencies for overages.
PLAN: What is the plan &
strategy for the property.
Does it make sense on
paper. Will they sell or
refinance? PreApproved?
CONTINGENCY What
happens if things go wrong
will you have to foreclose?
FINANCIAL HEALTH: Do
they pay their bills. You
could do a credit &
background check.
DRAW SCHEDULE: Disperse
rehab funds as repairs are
made to protect yourself
through 3rd party escrow
TITLE: Review title to ensure
clean title on the property
and 1st lien position of your
loan.
MONTHLY PAYMENTS: The
best way to learn of issues is
when a monthly payment is
missed.

17. Build Your Team
With MAREI Business Members
Save time and money by starting with service providers who
already know your business. Who can solve problems as they arise
to help you get the deal completed on time and for maximum profit.
VISIT
MAREI.org
click on
Business
Associates
Accountant
Coleman Accounting Service
Bob Coleman
www.ColemanAcctg.com
913-787-0308
Attorney
Anderson & Associates
Evictions / Collections
Julie Anderson
www.MOKSLaw.com
816-931-2207
Rick Davis Legal
Real Estate Law
Rick Davis
www.RickDavisLegal.com
913-283-8300
Auction Company
Auction.com
Rachel Bailey
www.Auction.com
816-797-6875
Genesis Home Restorations
Mold Remediation
Terry Amerine
GenesisHomeRestorations.com
913-270-0812
HCS Restoration KC, LLC
Mike Peace
HCSRestorationLLCKansas.com
913-731-6537
NuLook Custom Finishes
Cabinet Refinishing
Carol Baldwin
www.NuLookFinishes.net
913-385-2574
Serve Pro
East Independence/ Blue Springs
Crytsall Gregg
www.ServeProEastIndependence
BlueSprings.com
816-224-5300
Under Pressure Property Services
Rehab, Maintenance, & Staging
Dallas Kidd
www.MyUnderPressure.com
913-274-9555
Building Supplier
DeMayo Enterprises
Wholesale Cabinets
Mark Yanda
www.DeMayoEnterprises.net
913-980-4260
Joe’s Carpet / Weber Flooring
Jerry Ratway
www.WeberFlooring.com
913-236-3680
The Home Depot
George Neal
816-461-9583
2% Rebate / 20% Off Paint
Details in Member Benefits
Contractor
Hearth Masters
Fireplace / Masonry
Gene Padgitt
www.ChimKC.com
816-461-3665
P A G E 2 9S P E C I A L E D I T I O N O F T H E R E I N V E S T M E N T N E W S

18. Insurance
Agema Insurance
Fred Dickinson
www.AgemaIns.com
913-543-8116
Arcana Insurance
Rental, Vacant, Landlord & More
NREIA.ArcanaInsurance HUB.com
877.744.3660
IRA - Self Directed
Equity Trust Company
TrustETC.com/NationalREIA
FREE Training
844-732-9404
Lending
Flat Branch Home Loans
Morgtgage Banker
Beth Langston
FlatBranchHomeLoans.com
816-479-5841 x 1148
Crossroads Investment Lending
Hard Money
Britton Asbell / Doug Harris
www.KCLend.com
913-800-8226
House Traders Monthly Meeting
Investors Choice Funding
Hard Money
Scott Ficinus
InvestorsChoiceFunding.com
816-668-7223
KC Investor Funding
Longhorn Investments
Hard Money
Mike Minor
www.LongHornInvestments.com
913-209-8630
Merchants Mortgage
Mushy Money
Susan Aubin
www.MerchantsMtg.com
303-514-0815
North Oak Investments
Hard Money
Tommy Nigro
www.NorthOakInvestment.com
816-249-1001
REI Investor Funds
Hard Money
Charlie Fitzgerald
www.REIInvestorFunds.com
913-904-8090
Revolver Finance
Hard Money
Jeremy Hanna
www.RevolverFinance.com
316-880-1611
Worcester Financial'
Hard Money
Taryn Kendrick
www.WorcesterFinancial.com
816-291-4146
Marketing
Constant Contact
Email & Social Media Marketing
FREE Trial
MAREI.org/ConstantContact
Investor Carrot
Investor Websites
Free Training & Discounts
www.MAREI.org/IC
Pat Live
Answering Service
Discounts
www.MAREI.org/PatLive
Zoom
Video Conferencing
www.MAREI.org/Zoom
Office Supply
Office Depot / Office Max
www.OfficeDepot.com
Discount Link & Card in
Member Benefits Package
Pest Control
BedBugTraps.com
Stop BedBugs
Discounts for Members
Properties
Bridge Turn Key Investments
Nathan Brooks
www.BridgeTurnkey.com
913-276-4114
McKinnis Real Estate
Turn Key Provider
Nick McKinnis
McKinnisRealEstateInvestments.com
816-914-2614
KCInvest
Investment Properties
Scott Tucker & Kim & Don Tucker
www.KCInvest
913-735-0018
Pride Properties
Wholesale
Marcus Bray & Matt Bray
www.PridePropertiesHomes.com
913-213-5370
Deal Makers Monthly Meeting
We Buy Cash KC
Buyer & Seller
Justin Montoya
www.WeBuyCashKC.com
(816) 885-6441
Property Manager
Home Rental Services
Paul Branton
www.Home4Rent.com
913-627-9543
Lotus Key Homes
Loni Louis Bernard
www.LotusKeyHomes.com
816-838-7368
M & M Property Pros
Michael & Michele Bellman
www.MMPropertyPros.com
816-490-6745
P A G E 3 0 A L L S T A R N E T W O R K I N G

19. Realtor
Crown Realty
Rich Melton
RichMelton.CrownRealty.com
913-215-9004
Realty Resource
Scott Tucker
www.RealtyResourceKC.com
816-284-7844
Show-Me Real Estate
Dan Hartman
www.Show-MeRealEstate.com
816-532-6101
Rent Collection
National Credit Systems
Specializing in Collections
www.NationalCreditSystems.com
Screening
Rent Perfect
Tenant Screening Plus
Heather Johnson
www.RentPerfect.com
877-922-2547
Discounts at www.MAREI.org/RP
Servicing
Escrow Services Inc.
Loan Servicing Nationwide
www.EscrowServ.com
Title Company
Accurate Title Company
Dave Green
www.AccurateTitleCo.com
913-338-0100
Alpha Title
Mary Kellogg
www.AlphaTitleInc.com
913-498-8999
Trash Out
1-800-Got- Junk
Trash Pick Up
www.1800GotJunk.com
Discounts in Member Benefits
1-800-JunkPro
Trash Pick Up & Dumpsters
Clint Pringle
www.Junk.pro
816-935-7078
JunkLuggers
Eco Friendly Junk Removal
Olivia Jones
www.JunkLuggers.com
816-905-2204
Want to be listed in our directory? For
as little as $135 a Quarter or $499
annually, join MAREI as a business
member. Details at MAREI.org.
MEMBER
SPOTLIGHT
Britton is our local representative from Crossroads Investment Lending.
He has been coming to MAREI meetings since, well we're not sure how
young he started attending as a part of his father's home buying and
selling team. In about 2015, they opened their lending business with
Britton at the helm at the MAREI meetings.
Britton and the team at Crossroads offer a lot more than just short-term
lending. They can help you look at your deal to decide it if makes sense,
they might have a wholesale deal for you to buy, they offer a monthly
whiteboard session where they work out the numbers on deals and they
also hold their monthly
House Traders Meetings
at Nick & Jakes on the
Plaza. Be sure to visit
www.KCLend.com to
find out about all they
have to offer.
www.KCLend.com
britton@kclend.com
913-244-7833 Direct
913-766-2900 Office
BRITTON ASBELL
CROSSROADS
INVESTMENT LENDING

20. I N T R O D U C I N G O U R
Investor Membership
Find out more and become a MAREI member today at:
www.marei.org/membership/
MEMBERSHIP INCLUDES
W h e t h e r y o u ' r e a t t h e b e g i n n e r , i n t e r m e d i a t e o r a d v a n c e d l e v e l s ,
M A R E I M e m b e r s h i p w i l l g i v e y o u t h e t o o l s y o u n e e d t o g r o w a s a n I n v e s t o r .
Community Training Advocacy Savings
12 Live Neworking
Meetings a year. Plus
unlimited connections
MAREI's Social Media.
5 Live Training Events,
Online Member Library,
Webinars, and More
throughout the year.
Fighting for your industry
through National REIA,
Missouri POA and the
Associated Landlords of KS.
Keeping You Informed.
Save $1000s through our
many local and National
Discounts at places like Home
Depot, Office Max and more.
mid-america
ASSOCIATION
Real Estate Investors
of
MEMBER
ONLY
$99